SMART
WORKS
SMART
° WORK
CHARITY
Annual Report 2021/2022
## **CONTENTS**
Introduction from our Chair of Trustees **03**
Annual Report of the Board of Trustees for the Year Ending 31 March 2022 **05**
Independent Auditor’s Report to the Members and Trustees of Smart Works Charity **22**
Consolidated statement of financial activities **26**
Consolidated charity and group balance sheets
**27**
Statement of cash flows **28**
Notes to the financial statements **29**
Reference and administrative
details of the charity **42**
## **WELCOME TO SMART WORKS**
We are a community dedicated to supporting and empowering women in their professional pursuits. We listen to our clients and use the power of high-quality clothing and one-to-one coaching to help them see their true potential, succeed at interview and transform their lives.
We are proud that 72% of women go on to get the job within one month of their appointment. We want to double the number of women we help and by 2025 reach 10,000 women across the UK.
**Career Coaching** An hour of one-to-one personalised coaching, equipping clients with the practical skills they need to secure an interview.
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Interview Dressing &
Preparation Service
Each client has a personalised
dressing and one-to-one
interview preparation.
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**Second Dressing** Once a client is successful at interview, they are welcomed back for a second dressing to build a work capsule wardrobe.
**The Smart Works Network** When our clients re-enter the workplace, they can join the Smart Works Network for further professional development opportunities.
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16-65
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age range of clients
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42%
are lone parents
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15% 1/4
have a disability have applied for
over 50 jobs
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**Every piece donated from retailers or individuals**
**Target city**
**It is our mission that any woman in need can find her way to Smart Works. We will do this by deepening our reach in existing centres and opening new centres in South London, Glasgow, Cardiff, Liverpool and Sheffield.**
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1/3 54%
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have been unemployed for over a year
are from ethnic minority groups
**Smart Works city**
**10,000** volunteer hours to dress and coach our clients
03 **ANNUAL REPORT 2021/22**
**I hope you enjoy reading the report and join us in our mission to inspire and empower all women who need help getting into work. Together, we can make this happen.**
Julietta Dexter
**SMART WORKS** 04
## **INTRODUCTION FROM THE CHAIR OF TRUSTEES**
a tangible impact on the lives of our clients. In my regular volunteer sessions, I have been constantly reminded of the incredible impact that looking and feeling great has on a woman’s confidence. Truly, fashion as a force for good.
I am proud to be able to present the Smart Works Annual Report for the year ended 31 March 2022.
It has been a great privilege to step into the role of Chair of Smart Works, taking on the baton from our Founder and now Honorary President, Juliet Hughes-Hallett in April 2021. I am so grateful for the trust and support shown to me by Jules, by our exceptional Honorary Treasurer Ewa Kerin, and by the entire trustee, staff and volunteer teams across the UK, in allowing me to look after this most wonderful charity.
We will also seek to build awareness of the work our charity does. Over the last year, Kate and I have visited each of our Smart Works centres, and the consistent message we have heard is that often the women we are seeking to help do not know that our service exists. If we can build a national brand that raises awareness of our service, we can help more women transform their lives.
I was fortunate to join at an important moment in Smart Works’ development. In spring 2021, we were just beginning to emerge from a long and difficult lockdown, with a particularly devastating impact on female unemployment. There was clearly much to do. At the same time, the charity was starting to think about the next stage of its growth for the three years from April 2022.
Thank you to all our supporters and funders for making the last year possible, and for helping us build such a robust platform for growth. We have helped more women than ever before, and our success rate of 72% is the highest it has ever been. I hope you enjoy reading the report and join us in our mission to inspire and empower all women who need help getting into work. Together, we can make this happen.
The resulting Three Year Plan has been remarkable in how quickly and easily it has fallen into place. This is because everyone at Smart Works is passionate about our service and witnesses every day the direct impact it has on the women who come to see us. This is the golden thread that goes through everything we do and fires our ambition. And we are ambitious. Over the next three years we want to double the number of women we help, so that by 2025, Smart Works will be helping over 10,000 women a year from at least ten flourishing centres across the UK.
Julietta Dexter **Chair**
We will do this carefully and thoughtfully, building on our strong foundations, and remaining focused on the volunteer-powered dressing and coaching services that have
05 **ANNUAL REPORT 2021/22**
**The Trustees, who are also the directors of the charity for the purposes of the Companies Act, present their annual report together with the accounts of Smart Works for the year ended 31 March 2022. The accounts have been prepared in accordance with the accounting practice set out on page 29 and comply with the charity’s governing document, applicable laws and the requirements of Statement of Recommended Practice on ‘Accounting and Reporting by Charities’ issued in 2019.**
**SMART WORKS** 06
## **OBJECTIVES & ACTIVITIES**
Smart Works is a female employment charity that dresses and coaches unemployed women for interview and job success. The charity’s objects are the relief of financial hardship and the relief of unemployment for the public benefit through the promotion of economic independence among women. It is our purpose to inspire and empower all women who need help getting into work.
To deliver this, Smart Works was created in September 2013 to help some of the most vulnerable women in society with the clothes, coaching and confidence they need to succeed at their job interview and start a new chapter of their life. Women are referred to our service from Job Centres, mental health charities, the prison service, youth organisations and other charities and organisations supporting women into employment. Each woman is gifted a complete outfit of high-quality clothing, chosen by her and hers to keep, followed by bespoke interview coaching. When she gets the job, she is welcomed back for our second dressing service to receive a capsule working wardrobe that will see her through to her first pay cheque and where possible, she is invited to join our Network, a professional networking group to help women advance in the workplace.
In response to the challenges of the pandemic, the main services of the charity moved virtual, and a new coaching programme was introduced. As restrictions eased, we have encouraged and welcomed our clients back into our centres, whilst at the same time retaining and integrating both of these programme innovations into our core service delivery.
Smart Works retains an efficient, volunteer-powered model. Our dressing and interview coaching service is delivered nationwide by a team of 450+ skilled and trained volunteers. Our wardrobe is stocked with highquality clothes donated by individuals and retailers.
Our strategic focus is to deliver our core dressing and interview coaching service to the best possible standard across the UK and to take it to more locations so that any woman who needs our support can come to Smart Works. Our key performance indicators are the number of women that we help, and the proportion of those women who secure employment after their visit to a Smart Works centre.
07 **ANNUAL REPORT 2021/22**
## **ACHIEVEMENTS & PERFORMANCE**
The past twelve months have been a time of recovery, innovation and growth for the charity, in response to the growing needs of the clients we serve.
Throughout the year there has been a significant uplift in the number of women we have helped, and a return to more in-person appointments following the lifting of government Covid restrictions.
Overall, the charity has:
- _**Helped 4,682 unique beneficiaries**_ on their journey to employment; and delivered 5,897 appointments across our eight UK centres.
- _**72% of the women**_ we helped before a job interview secured employment within a month of their visit, our highest ever job success rate.
- _**Embedded a new programme, Career Coaching, to sit alongside our core dressing and coaching service.**_ Career Coaching helps women to secure an interview, and is now offered in all Smart Works centres.
- Seen more of our clients return to centres for an in-person appointment, where we can deliver a richer experience in the dressing room. In Q4, _**75% of all dressing appointments were delivered in-person, compared to 51% in Q1**_ . For those who cannot travel to our centres, the virtual service continues to provide an important alternative.
- Continued to reach women who face significant barriers to securing employment. _**15% of clients considered themselves to have a disability, 54% were from an ethnic minority, 42% were lone parents, 35% had been unemployed for over a year (with 17% unemployed for over 5 years) and 43% had unsuccessfully applied for over 20 jobs.**_
Each Smart Works centre has increased the number of women helped compared to the previous year, with a particularly strong performance in London, Manchester and Birmingham. The central team has provided a backbone of operational, fundraising and communications support; with individual centres working on the ground to establish the service in their communities.
At the same time, the response to rising levels of female unemployment and the cost of living crises has inspired everyone in the Smart Works community to be ambitious for what can be done in future years. The result is the formation of a Three Year Plan to double the number of women we can help and guide the charity through its next stage of growth (see Section D).
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09 **ANNUAL REPORT 2021/22**
None of this would have been possible without the generous support of our funders. Trusts and foundations continue to provide our cornerstone funding, and we are grateful to the backing of the Garfield Weston Foundation, The Julia and Hans Rausing Trust, Oak Foundation, The National Lottery Community Fund (England and Scotland) and Bank of America, amongst others. The certainty that this funding provides gives us the confidence to grow our service and help more women.
Alongside this, new and innovative means of generating our own income have continued to be developed. Notably, we started the year in April 2021 with our first standalone store in partnership with The Bicester Village Shopping Collection, which opened just as restrictions lifted, and established a new, scalable fundraising format. We were also able to run our most successful weekend fundraiser in partnership with Stella (part of The Telegraph) and Somerset House, raising over £120,000 in two days. In March 2022, we continued to grow our annual cycling challenge, Cycle for Smart Works, bringing in £216,000 across the Group. More widely, a return to in-person events has seen a vibrant calendar of fundraising events and celebrations across the Smart Works community, and we are grateful to all our supporters for their continued engagement.
The Smart Works and Bobbi Brown partnership continued to flourish. In the eighth year of this flagship partnership, including a collaboration with Needle and Thread, the promotion raised the highest ever total for the charity. We are proud to be able to continue our long-term Pretty Powerful partnership with the team at Bobbi Brown Cosmetics. Additional important new corporate partners included: AJ Bell, Castlelake, Close Brothers, Findlay Park, McKinsey and Company, Norton Rose Fulbright and QVC.
In July 2021, we were proud to be the charity partner of the Magnolia Cup on Ladies’ Day of Glorious Goodwood. Our ambassador, Isabel Spearman, took part in the race on behalf of Smart Works, and the event raised £230,000. We are grateful to The Duke and Duchess of Richmond for supporting our charity at such a vital time in our growth.
The quality and quantity of clothing donations from supporters has been excellent. We are grateful to all our retail partners, particularly Boden, Borgo do Nor, Burberry, COS, Hobbs, Pink City Prints, Russell & Bromley and Shoeaholics, for helping us to ensure that every woman who comes to Smart Works has a choice of high-quality and welldesigned clothes and accessories.
**SMART WORKS** 10
Our communication platforms continue to inspire hope, confidence and purpose for our community, with an important moment in June 2021 when we launched our new website.
Finally, our Ambassadors and Patrons continue to help shine a light on the Smart Works service and allow us to reach more women, and we are particularly grateful for all of their support in the last 12 months.
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11 ANNUAL REPORT 2021/22
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The Smart Works Staff Conference, November 2021 - our first time back together in person since the pandemic
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SMART WORKS 12
THE SMART WORKS
SERVICE IN ACTION
Ellie came to Smart Works in 2020. After suffering from anxiety that led
to burnout, she had left her job but was struggling to find something new
that would meet her needs.
Finding herself getting interviews but not securing the roles, her support
worker at the NHS suggested that she come to Smart Works. Since
coming to Smart Works Ellie has gone on to be made permanent in her
new role and recently interviewed for a promotion.
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13
ANNUAL REPORT 2021122
SMART
WORI
£1.02M
36% Total income
for 2022:
£2.8M
£1.09M
39%
£163K
6%
Grants and individual donations
Corporate giving income
Fundraising events
Stock donations
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## **INVESTMENT POLICY**
The trustees having regard to the liquidity requirements of operating the Charity and to the reserves policy have operated a policy of keeping available funds in interest-bearing deposit accounts. These are currently held with CAF Bank, Scottish Widows, Virgin, United Trust, NatWest and HSBC.
## **RESERVES POLICY**
The trustees have considered the requirement for free reserves, i.e. those unrestricted funds not designated for specific purpose or otherwise committed. As set out in the 2020/2021 Annual Report, the trustees have reviewed the reserves policy to ensure that it supports the Charity’s strategic goals through a combination of specific investment opportunities and designated funding initiatives to ensure that we continue to help as many women as possible. This has resulted in an updated reserves policy, effective 1 April 2022, whereby the level of free reserves for Smart Works Charity should be equivalent to between six and nine months of annual expenditure. This provides sufficient flexibility to cover any temporary shortfall of incoming resources and to allow the charity to respond immediately to a reasonable range of unforeseen adverse circumstances prior to specific remedial plans being implemented.
Free reserves of £1.8m represents approximately 7 months of forecast annual expenditure and is therefore comfortably in line with this policy.
17 **ANNUAL REPORT 2021/22**
## **PLANS FOR THE FUTURE**
In January 2022, we announced a new Three Year Plan for Smart Works in response to the devastating consequences of the pandemic on female unemployment. The Three Year Plan is ambitious in scope and sets out the collective vision and strategy for the charity from April 2022 to March 2025. It is the result of many conversations and reflections across the Smart Works community in 2021. The key elements of the plan are:
## **EXPANSION**
The need for the expansion of our service is clear. We are ambitious and our goal is to double the number of women helped from 5,000 a year to 10,000 a year by 2025.
## **DATA DRIVEN**
We will open new centres in areas where there is clear need. The data indicates that the target cities should be Glasgow, South London, Liverpool and Sheffield. Existing centres in major urban hubs will aim to help 1,000 women each year by 2025.
## **NATIONAL BRAND**
To support growth, we will establish a national brand that is better known and understood, especially by potential clients. As part of this, we will have a more distinct voice that demonstrates our understanding of female unemployment.
## **CLIENT-CENTRIC**
The voices of the women Smart Works serves will inform decision-making and we will take proactive steps to ensure that Smart Works continues to be an organisation where everyone is welcome and can thrive.
## **HUB MODEL**
We will take an evolutionary approach, continuing to be volunteer-powered and building on our hub model to fuel growth. Each centre outside London will continue to be run by a regional board, with a defined area of operation. A central team will be responsible for virtual service delivery beyond that area.
## **INVEST IN GROWTH**
We will develop the Group function to support governance, growth and consolidation of centres, particularly in HR, finance and legal, to enable centres to focus on helping more women. We will also look at how to digitise aspects of our service.
## **KEY METRICS**
Our key metrics will remain to be the number of women helped, our success rate and the cost of delivering our service.
## **FUNDING**
The anticipated growth in expenditure will be met by maintaining a broadly equal split between our main income streams, building on the innovation, expertise and growth of previous years.
Above all, it remains our ultimate ambition that any women in need of our support should be able to find her way to a Smart Works centre, and this sits at the heart of our ambitions for the future.
ART WORKS
11
19 **ANNUAL REPORT 2021/22**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **GOVERNANCE**
Smart Works and its Trustees are bound by the Memorandum and Articles of Association. The names of the trustees who served on the Smart Works Charity Board during the year are set out in the reference and administrative information on page 42.
## **MANAGEMENT**
The Chief Executive, Kate Stephens, runs the charity. As of 31 March 2022, the rest of the senior management team comprised of a Director of Service Delivery and Group Operations, a Director of Partnerships and a Head of Finance.
The relationship between Smart Works Charity and each local Smart Works is one of a parent and subsidiary . In legal terms, Smart Works Charity is the sole member of each English Smart Works centre and a majority member of Smart Works Edinburgh. This structure ensures that the governance, objectives and legal structure of each local Smart Works is aligned with those of Smart Works Charity. Financial statements from each local Smart Works charity are consolidated in this report. All Smart Works charities are also companies limited by guarantee.
Smart Works Trading is a wholly owned trading subsidiary of Smart Works Charity
## **ORGANISATIONAL STRUCTURE AND DECISION MAKING**
The trustees review and approve all policies and follow a three-year strategic plan set from 1 April 2019 to 31 March 2022. The trustees meet quarterly throughout the year and have an annual session to update and revise the strategy. The new strategic plan for 1 April 2022 to 31 March 2025 was launched in January 2022.
## **ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)**
There are two central activities within our ESG strategy:
## **RECRUITMENT & APPOINTMENT OF NEW TRUSTEES**
Regular reviews are undertaken to assess the skills of the current trustees and identify any areas for strengthening. For Smart Works Charity, new trustees are appointed by the existing trustees and their appointment is approved by the members. For Smart Works centres outside of London, who are their own charity, new trustees are appointed by the existing centre trustees and their appointment is approved by Smart Works Charity.
## **INDUCTION & TRAINING OF NEW TRUSTEES**
All trustees are provided with an induction to familiarise themselves with the charity and the not-for-profit sector. They are briefed on their responsibilities by the existing trustees, and they are also given a Smart Works Trustee Welcome Pack (reviewed annually), which sets out the legal responsibilities and the specifics of the Smart Works Group structure. New trustees are also referred to the Charity Commission guide ‘The Essential Trustee’. Day to day operational responsibility for operating the charity is delegated to the CEO.
**1. Diversity and Inclusion:** The Charity is committed to nurturing an inclusive culture where everyone is accepted, listened to and able to thrive. Our approach over the past twelve months has been considered and consultative, with the women we help at the centre of our decision making. In line with our Diversity & Inclusion Action Plan, in September we launched a Client Advisory Group consisting of ten former clients, to formally give our beneficiaries a voice in the direction of the charity. The Advisory Group are consulted on a number of central projects, meeting with the Chief Executive and senior staff members on a quarterly basis ahead of Board meetings. We also commissioned external consultants to conduct a series of DE&I training events for all staff, trustees and volunteers.
**2. Environment:** The Charity delivers significant environmental benefits as part of its primary purpose activities. All items in the wardrobe are donated from individuals or from retailers, and then carefully categorised so that they can be gifted to clients or (where appropriate) sold to raise funds. This provides an important circular and positive environmental impact by directly reducing potential landfill and waste. As an example, for the period of this report, the charity gave out over 25,000 donated pieces of clothes and accessories to clients. A full environmental impact report is planned for the future.
**SMART WORKS** 20
## **FUNDRAISING**
The Charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face to face campaigns and received no fundraising complaints during the year.
income from three main sources: grant funding, corporate income and our own activities.
**2.** Unsustainable growth and relationships between Smart Works centres. This is mitigated by setting a strategy of only opening a maximum of one Smart Works centre in a new city each year, ensuring a balanced income portfolio and, crucially, having dedicated strategies, plans and resources that build a strong Smart Works community. The charity also aims to achieve a balance between utilising reserves to help more women and ensuring financial stability.
## **PAY POLICY**
All trustees give their time freely and no trustee received remuneration in the year.
As a small but fast growing and dynamic charity, Smart Works believes that its staff are key to delivering its objectives. To this end it believes that its pay policies should be fair, transparent, competitive and sustainable. Smart Works believes that it is important to reward its staff competitively and at the same time ensure that it remains prudent and can guarantee that salary costs are sustainable both at the current time and in the future. The Chief Executive is responsible for proposing the remuneration and terms and conditions of employment for all staff of the charity which is then approved by the Board. The pay and terms and conditions of the Chief Executive are approved by the full Board of Trustees.
The charity aspires to pay its staff around the median market pay level for comparable jobs in similar sized organisations and with similar operating models. Smart Works pays staff related to their particular skills, experience, qualifications, performance and contribution to the charity. Smart Works reviews salary levels annually, coming into effect on 1 April of each year.
## **RISK MANAGEMENT**
The Board of Trustees continue to review and assess risks faced by the charity every six months. The Chief Executive fully updates the Board of Trustees at these meetings and highlights current risks facing the charity. This covers governance, financial, operational, physical, external and reputational, legal and compliance risks. The main risks identified on the risk register and how they are managed are:
**1.** A shortfall of income against costs. This is mitigated by a balanced approach to fundraising, seeking to secure
**3.** Losing key staff and trustees. This is mitigated by a strong appraisal and development programme, alongside six months’ notice for senior staff and trustees.
The Chief Executive ensures that robust policies, procedures, systems and training are in place to deal with risk and these are designed to mitigate or manage any potential impact on the charity should those risks materialise.
## **POLICIES**
Policies for all relevant areas are maintained, including Safeguarding Adults at Risk, Safeguarding Children, Data Protection, Health and Safety, Bribery, Conflict of Interest, Complaints Handling and Privacy Policy for Clients, Donors and Diversity. The Staff Handbook is made available to all staff and includes a summary of all policies, and this is also shared with new Trustees of Smart Works Charity and of regional Smart Works centres.
## **VOLUNTEERS**
The trustees are grateful for the invaluable contribution of those who give their time voluntarily to deliver the dressing service and interview preparation for our clients. The number of active volunteers across the UK on 31 March 2022 was 454. Arguably, one of the greatest assets that Smart Works has is the significant role played by its dedicated volunteers.
## **PUBLIC BENEFIT**
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefits when reviewing our aims and objectives and in planning our future activities.
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies’ subject to the small company’s regime.
21 **ANNUAL REPORT 2021/22**
## **TRUSTEES’ RESPONSIBILITIES STATEMENT**
The trustees (who are also directors of Smart Works Charity for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This report was approved by the Board on Thursday 27th October 2022 and signed on its behalf by:
Julietta Dexter **Chair**
Ewa Kerin **Trustee**
**SMART WORKS** 22
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF SMART WORKS CHARITY**
## **OPINION**
We have audited the financial statements of Smart Works Charity (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise of the Consolidated statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2022, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern.**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Smart Works Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
23 **ANNUAL REPORT 2021/22**
## **OTHER INFORMATION**
The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report has [have] been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the trustees’ responsibilities statement set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
**SMART WORKS** 24
## **Auditor’s responsibilities for the audit of the financial statement**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charity through discussions with directors/trustees and other management, and from our commercial knowledge and experience;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including legislation such as the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates [set out in [Note 1]} were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
25 **ANNUAL REPORT 2021/22**
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc. org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
## **USE OF OUR REPORTS**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Katherine Wilkes FCA (Senior Statutory Auditor) 2 November 2022
For and on behalf of Critchleys Audit LLP Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP
**SMART WORKS** 26
**CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022 (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)**
|**Income from:**
Donations:
Donations and grants
Donations of dressing stock
Other trading activities
Investments
Other income
**Total Income**
2
3
4
**Notes**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
**Net Income**
**Transfers between funds**
**Net movement in funds**
**Reconciliation of funds**
Total funds bought forward
**Total funds carried forward**
6
5|1,163,755
-
1,163,755
1,016,449
2,166
-
2,182,370
**Unrestricted**
**Funds**
**£**
(285,006)
(1,025,184)
(1,310,190)
872,180
207,000
1,079,180
1,419,364
2,498,544|459,938
162,626
622,564
-
-
-
622,564
**Restricted**
**Funds**
**£**
(695)
(466,324)
(467,019)
155,545
(207,000)
(51,455)
296,261
244,806||1,623,693
162,626
1,786,319
1,016,449
2,166
-
2,804,934
**2022**
**Total**
**£**
(285,701)
(1,491,508)
(1,777,209)
1,027,725
-
1,027,725
1,715,625
2,743,350||**2021**
**Total**
**£**
1,201,411
41,562|
|---|---|---|---|---|---|---|
|||||||1,242,973
437,043
1,338
63,434|
|||||||1,744,788|
|||||||(181,446)
(1,217,533)|
|||||||(1,398,979)|
|||||||345,809
-
345,809
1,369,816|
|||||||1,715,625|
There are no recognised gains and losses other than those in the statement of financial activities. Therefore, no statement of total recognised gains and losses has been prepared. All the above amounts relate to continuing activities.
Company number: 03870671
## 27 **ANNUAL REPORT 2021/22**
Smart Works Charity | Company No: 03870671
## **CONSOLIDATED CHARITY AND GROUP BALANCE SHEETS FOR THE YEAR ENDED 31 MARCH 2022**
|**Fixed assets**
Tangible assets
Investments
**Current assets**
Stock
Debtors
Cash at bank and in hand
**Creditors**
**Net current assets**
**Total net assets**
**Funds**
Designated funds
General funds
Total unrestricted funds
Restricted funds
**Total funds**
11
12
13
14
15
17
16
**Notes**|59,493
-
59,493
154,085
242,628
2,457,012
2,853,725
(169,868)
2,683,857
2,743,350
600,656
1,897,888
2,498,544
244,806
2,743,350
**Group**
**2022**
**Charity**
20,012
2
20,014
48,871
162,969
1,762,744
1,974,584
(150,620)
1,823,964
1,843,978
417,512
1,246,646
1,664,158
179,820
1,843,978
|42,222
-
42,222
144,828
454,409
1,741,353
2,340,590
(667,187)
1,673,403
1,715,625
51,933
1,367,431
1,419,364
296,261
1,715,625
26,682
2
26,684
44,225
314,670
1,243,763
1,602,658
(637,227)
965,431
992,115
26,682
797,020
823,702
168,413
992,115
**Group**
**Charity**
**2021**|42,222
-
42,222
144,828
454,409
1,741,353
2,340,590
(667,187)
1,673,403
1,715,625
51,933
1,367,431
1,419,364
296,261
1,715,625
26,682
2
26,684
44,225
314,670
1,243,763
1,602,658
(637,227)
965,431
992,115
26,682
797,020
823,702
168,413
992,115
**Group**
**Charity**
**2021**|42,222
-
42,222
144,828
454,409
1,741,353
2,340,590
(667,187)
1,673,403
1,715,625
51,933
1,367,431
1,419,364
296,261
1,715,625
26,682
2
26,684
44,225
314,670
1,243,763
1,602,658
(637,227)
965,431
992,115
26,682
797,020
823,702
168,413
992,115
**Group**
**Charity**
**2021**|26,682
2
**Charity**|
|---|---|---|---|---|---|
|||||1,602,658
(637,227)
965,431||
|||||992,115||
|||||26,682
797,020||
|||||823,702
168,413||
|||||992,115||
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies’ regime.
The accounts were approved by the Board of Trustees on 27 October 2022 and signed on their behalf by:
Julietta Dexter Ewa Kerin **Chair Trustee**
The notes on pages 29 to 41 form part of these accounts
**SMART WORKS** 28
## **CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
|**Cash fows from operating activities:**
Surplus for the fnancial year
**Adjustments for:**
Depreciation of tangible assets
Investment income
(Increase)/decrease in debtors
Increase/(decrease) in stock
Increase/(decrease) in creditors
**Net cash generated from operating activities**
**Cash fows from investing activities**
Income from investments
Purchase of tangible assets
**Net cash from investing activities**
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
**Cash equivalents at the end of the year**
**Cash and cash equivalents at the end of the year comprise:**
**Cash at bank and in hand**
**Group**||1,027,725
13,651
(2,166)
211,782
(9,257)
(497,319)
744,416
2,166
(30,923)
(28,757)
715,659
1,741,353
2,457,012
2,457,012
**2022**
**£**|||345,809
7,465
(1,339)
(344,103)
20,685
117,737
**2021**
**£**|
|---|---|---|---|---|---|
||||||146,254|
|||||1,339
(5,625)
(4,286)
141,968
1,599,385|1,339
(5,625)|
||||||(4,286)|
|||||1,741,353||
|||||||
|||||1,741,353||
29 **ANNUAL REPORT 2021/22**
## **NOTES TO THE FINANCIAL ACCOUNTS**
## **1. ACCOUNTING POLICIES**
## a) Basis of preparation and consolidation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The Presentation currency used is British Pounds Sterling. The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. The charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.
## b) Income
Income is recognised where there is entitlement, where the receipt of income is probable and the amount can be measured with sufficient reliability. Grants and donations are recognised once entitlement and value have been confirmed in writing. Investment Income is included in the accounts when receivable. This is received in the form of interest income from standard bank accounts. Donated gifts in kind of stock for dressing clients are included at fair value and recognised as income when they are distributed to clients. Gifts donated for resale are included as income when they are sold.
on floorspace allocation. Support costs are allocated using an apportionment in proportion to staff time.
## d) Tax reclaims on donations and gifts
Income from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.
## e) Volunteers and donated services
The value of services provided by volunteers is not incorporated in these financial statements. The trustees consider it impractical to measure the value of volunteer help and consequently, as permitted by the SORP, their value is not recognised in the financial statements but is described in the trustees’ annual report. Smart Works had an average of 454 volunteers during the year.
## f) Taxation
No liability to UK corporation tax arose on ordinary activities for the year ended 31 March 2022. Smart Works Trading Limited had a nil surplus after gift aid donation to the parent company giving rise to zero corporation tax.
## g) Tangible fixed assets
Assets are capitalised if they can be used for more than one year and cost at least £1,000. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Computer equipment 3 years straight line.
Office fixtures and fittings 5 years straight line.
## h) Investments
Smart Works’ investment in its subsidiaries is stated at cost.
## c) Expenditure
Expenditure is included in the statement of financial activities on an accruals basis and includes attributable VAT which cannot be recovered. All expenditure is allocated to the particular activity where the cost relates directly to that activity. Premises costs are allocated to charitable activities, fundraising and support costs based
## i) Stocks
Stocks are valued at the lower of cost and net realisable value. Donated dressing stock for distribution to clients is valued at fair value. Stocks of donated clothing held for resale are not valued until sold.
**SMART WORKS** 30
## j) Significant accounting estimates
The trustees make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Significant estimates include depreciation, estimated on the assets estimated useful life, amounts to accrue for payments relating to the period and fair valuation of stock. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
## n) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for specific purposes. Designated funds are unrestricted funds which have been set up by the trustees to hold funds for specific purposes. The aim and use of each designated fund is set out in the notes to the accounts. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors. The aim and use of each restricted fund is set out in the notes to the accounts.
## k) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amount receivable at the balance sheet date.
## o) Cash at bank in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## p) Pension
## l) Creditors
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Smart Works operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.
## m) Financial instruments
The charity only has financial assets and financial abilities of a kind that qualify as basic financial instruments with the exception of stocks which are shown as their value to the charity. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement value before any trade discounts due. Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts.
## q) Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
## r) Going concern
The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.
The trustees believe that the forecast results and good level of cash flow of the charity together with the measures taken to date will enable the charity to continue as a going concern and, as a result, do not include any adjustments that would result if the charity was not able to continue as a going concern.
## 31 **ANNUAL REPORT 2021/22**
|**2. DONATIONS**
Grants and individual donations
Corporate donations
Donations of dressing stock
**Unrestricted**
**Funds**
**£**
632,504
531,251
1,163,755
-
1,163,755
**Restricted**
**Funds**
**£**
459,938
-
459,938
162,626
622,564
Grants and individual donations
Corporate donations
Donations of dressing stock
**Prior year**
**Unrestricted**
**Funds**
**£**
487,710
333,917
821,627
-
821,627
**Restricted**
**Funds**
**£**
379,784
-
379,784
41,562
421,346|**2022**
**Total Funds**
**£**
**1,092,442**
**531,251**|
|---|---|
||**1,623,693**
162,626|
||**1,786,319**|
||**2021**
**Total Funds**
**£**
**867,494**
**333,917**|
||**1,201,411**
41,562|
||**1,242,973**|
Total income for the group includes £162,626 (2021: £41,562) of income which is received in the form of donations of clothing and accessories. The income represents a fair value estimate of these stock donations, the clothes are given to the beneficiaries of the charity.
## **3. OTHER TRADING ACTIVITIES**
|**Current year**
Fundraising events
**Unrestricted**
**Funds**
**£**
1,016,449
1,016,449
**Restricted**
**Funds**
**£**
-
-|**2022 Total**
**Funds**
**£**
**1,016,449**|
|---|---|
||**1,016,449**|
**SMART WORKS** 32
|**Prior year**|**Unrestricted**|**Unrestricted**||**Restricted**||**2021 Total**|
|---|---|---|---|---|---|---|
|||**Funds**||**Funds**||**Funds**|
|||**£**||**£**||**£**|
|Fundraising events||437,043||-||**437,043**|
|||437,043||-||**437,043**|
|**4. OTHER INCOME**|**Unrestricted**|**Restricted**||**2022**||**2021**|
||**Funds**|**Funds**||**Total Funds**||**Total Funds**|
||**£**||**£**||**£**|**£**|
|Coronavirus Job Retention Scheme income|-||-||-|63,434|
## **5. CHARITABLE ACTIVITIES**
|**5. CHARITABLE ACTIVITIES**|||||
|---|---|---|---|---|
|**Current year**
**Unrestricted funds:**
Core service delivery
National delivery support and growth
**Total unrestricted**
**Restricted funds:**
Core service delivery
National delivery
**Total restricted**
**Staff costs**
**Costs**
**£**
373,552
176,843
**550,395**
208,904
13,123
**222,027**
**772,422**|**Non staff**
**Costs**
**£**
149,527
41,561
**191,088**
244,297
-
**244,297**
**435,385**|**Support**
**Costs**
**£**
239,832
43,869
**283,701**
-
-
-
**283,701**|**2022**
**Total Funds**
**£**
**762,911**
**262,273**||
|||||**1,025,184**
453,201
13,123|
|||||**466,324**|
|||||**1,491,508**|
## 33 **ANNUAL REPORT 2021/22**
|**Prior year**
**Unrestricted funds:**
Core service delivery
National delivery support and growth
**Total unrestricted**
**Restricted funds:**
Core service delivery
National delivery
**Total restricted**
**Staff costs**
**Costs**
**£**
215,918
171,582
**387,500**
222,416
5,619
**228,035**
**615,535**
**6. ACTIVITIES FOR RAISING FUNDS**
**Current year**
**Unrestricted funds:**
Events and other costs
**Total unrestricted:**
**Restricted funds:**
Events and other costs
**Total restricted:**
**Staff costs**
**Costs**
**£**
124,029
**124,029**
-
-
**124,029**|**Non staff**
**Costs**
**£**
207,361
47,510
**254,871**
150,566
-
**150,566**
**405,437**
**Non staff**
**Costs**
**£**
118,810
**118,810**
695
**695**
**119,505**||**Support**
**Costs**
**£**
148,238
48,323
**196,561**
-
-
**-**
**196,561**
**Support**
**Costs**
**£**
42,167
**42,167**
-
-
**42,167**|**2022**
**Total Funds**
**£**
**571,517**
**267,415**
**838,932**
**372,982**
**5,619**
**378,601**|**2022**
**Total Funds**
**£**
**571,517**
**267,415**
**838,932**
**372,982**
**5,619**
**378,601**|**2022**
**Total Funds**
**£**
**571,517**
**267,415**
**838,932**
**372,982**
**5,619**
**378,601**|
|---|---|---|---|---|---|---|
||||||**838,932**
**372,982**
**5,619**||
||||||**378,601**||
||||||**1,217,533**||
|||||**2022**
**Total Funds**
**£**
**285,006**
**285,006**
695
**695**
**285,701**|||
||||||**285,006**
695
**695**||
|||||||**695**|
||||||**285,701**||
**SMART WORKS** 34
|**Prior year**|**Staff costs**|**Staff costs**|**Non staff**|**Support**|**Support**|**2021**|
|---|---|---|---|---|---|---|
||**Costs**||**Costs**|**Costs**||**Total Funds**|
|||**£**|**£**||**£**|**£**|
|**Unrestricted funds:**|||||||
|Events and other costs|||||||
||115,150||25,058|40,861||**181,069**|
|**Total unrestricted:**|||||||
||**115,150**||**25,058**|**40,861**||**181,069**|
|**Restricted funds:**|||||||
|Events and other costs|||||||
|||-|377||-|**377**|
|**Total restricted:**|||||||
|||-|**377**||-|**377**|
||**115,150**||**25,435**|**40,861**||**181,446**|
|**7. SUPPORT COSTS**||||**2022**||**2021**|
|||||**Total Funds**||**Total Funds**|
|||||**£**||**£**|
|Support staff costs and related expenditure||||**221,390**||148,997|
|Property and related costs||||**215,283**||19,076|
|Offce expenses||||**54,605**||24,047|
|Legal, professional and accountancy||||**7,961**||8,795|
|IT costs||||**48,221**||20,744|
|Governance costs||||**16,208**||15,764|
|Exceptional credit||||**(237,800)**|||
|||||**325,868**||237,423|
|Governance costs consist of audit and independent examination fees.|||||||
|In the period there was an exceptional credit as a result of a write back|||||||
|of the rental provision amounting to £238k.|||||||
|**8. NET INCOME IS STATED AFTER CHARGING**||||**2022**||**2021**|
|||||**£**||**£**|
|Depreciation of owned fxed assets||||**13,651**||7,465|
|Operating lease payments||||**156,494**||189,441|
|Auditor’s remuneration||||**12,650**||11,500|
|Independent Examiner’s remuneration||||**3,300**||3,553|
35 **ANNUAL REPORT 2021/22**
|Wages and salaries
Employer’s National Insurance
Employer’s pension contributions
**9. STAFF COSTS**
Numbers of employees with emoluments in the following bands
£90,000-£99,999
£60,000-£69,000
The employer’s pension contributions made in relation to the employee
above was £2,201 (2021: £2,270)
Average number of employees during the year
Average number of full-time equivalent employees during the year|**2022**
**£**
**998,468**
**68,693**
**28,520**
**1,095,681**
**1**
**2**
**40**
**36**|**2021**
**£**
768,449
55,624
18,915|
|---|---|---|
|||842,98|
|||1
2
27
28|
The key management personnel comprised of: CEO, Director of Service Delivery and Group Operations, Director of Partnerships and Head of Finance.
The total amount of employee benefits (including employer pension and National Insurance contributions) received by the key management personnel for their services to the charity group was £268,660 (2021: £280,109).
## **10. TRUSTEE EXPENSES**
No trustees received any remuneration from the charity in relation to the performance of their duties as trustees. No trustee expenses (2021: nil) were paid to trustees during the year.
## **11. TANGIBLE FIXED ASSETS**
|**Furniture and fttings**
**Cost**
Brought forward
Additions
Carried forward
**Depreciation**
Brought forward
Charge for the year
Carried forward
**Net book value**
As at 31 March 2022
As at 31 March 2021|**Group**
**£**
69,029
30,923
**99,952**
26,808
13,651
**40,459**
**59,493**
42,222|**Charity**
**£**
48,123
-|
|---|---|---|
|||**48,123**|
|||21,441
6,670|
|||**28,111**|
|||**20,012**
26,682|
**SMART WORKS** 36
## **12. INVESTMENTS**
|**12. INVESTMENTS**|||||
|---|---|---|---|---|
|||**% of Voting**|**Charity**|**Company**|
||**Shares held Class**|**Rights**|**Number**|**Number**|
|Smart Works Birmingham|Company limited by guarantee|100%|1168264|10098116|
|Smart Works Leeds|Company limited by guarantee|100%|1184676|12059540|
|Smart Works (Greater Manchester)|Company limited by guarantee|100%|1163594|9425123|
|Smart Works Newcastle|Company limited by guarantee|100%|1176547|11115960|
|Smart Works Reading|Company limited by guarantee|100%|1164723|9626510|
|Smart Works Edinburgh|Scottish Charitable Incorporate|67%|SC044520|n/a|
||Organisation||||
|Smart Works Trading|Ordinary|100%|n/a|09061869|
A summary of results for the year and prior year, along with a balance sheet summary, is shown below:
|||**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Total**|
|---|---|---|---|---|---|---|---|---|---|
|||**Works**|**Works**|**Works**|**Works**|**Works**|**Works**|**Works**|**31 March**|
|**Current year**|**Birmingham**||**Edinburgh**|**Leeds**|**(Greater**|**Newcastle**|**Reading**|**Trading**|**2022**|
||||||**Manchester)**|||**Limited**||
|Gross income||79,967|159,412|128,025|196,047|132,556|165,596|210,892|1,072,495|
|Expenditure||(82,995)|(106,654)|(123,020)|(128,209)|(112,191)|(157,958)|(26,834)|(737,861)|
|**Surplus/(Defcit) for**|**year**|**(3,028)**|**52,758**|**5,005**|**67,838**|**20,365**|**7,638**|**184,058**|**334,634**|
|Fixed assets||-|-|12,858|-|-|26,624|-|39,482|
|Current assets||90,585|122,816|96,544|216,050|174,773|173,161|63,121|937,050|
|Creditors||(7,060)|-|(19,382)|(6,691)|(2,083)|(4,111)|(39,334)|(78,661)|
|**Net assets**||**83,525**|**122,816**|**90,020**|**209,359**|**172,690**|**195,674**|**23,787**|**897,871**|
|Unrestricted funds||66,834|68,332|68,636|186,929|154,854|140,533|23,787|709,905|
|Restricted funds||16,691|54,484|21,384|22,430|17,836|55,141|-|187,966|
|**Net funds**||**83,525**|**122,816**|**90,020**|**209,359**|**172,690**|**195,674**|**23,787**|**897,871**|
||**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Smart**|**Total**|
|---|---|---|---|---|---|---|---|---|
||**Works**|**Works**|**Works**|**Works**|**Works**|**Works**|**Works**|**31 March**|
|**Prior year**|**Birmingham**|**Edinburgh**|**Leeds**|**(Greater**|**Newcastle**|**Reading**|**Trading**|**2020**|
|||||**Manchester)**|||**Limited**||
|Gross income|85,400|87,908|90,291|171,735|118,824|155,842|177,413|887,413|
|Expenditure|(60,136)|(80,599)|(48,540)|(88,072)|(64,933)|(93,242)|(24,713)|(460,235)|
|**Surplus for year**|**25,264**|**7,309**|**41,751**|**83,663**|**53,891**|**62,600**|**152,700**|**427,178**|
|Fixed assets|-|-|15,541|-|-|-|-|15,541|
|Current assets|88,234|70,058|74,842|150,197|153,304|188,914|60,404|785,953|
|Creditors|(1,681)|-|(5,368)|(8,676)|(979)|(878)|(60,402)|(77,984)|
|**Net assets**|**86,553**|**70,058**|**85,015**|**141,521**|**152,325**|**188,036**|**2**|**723,510**|
|Unrestricted funds|69,813|56,296|56,836|127,562|126,256|156,226|2|592,991|
|Restricted funds|16,740|13,762|28,179|13,959|26,069|31,810|-|130,519|
|**Net funds**|**86,553**|**70,058**|**85,015**|**141,521**|**152,325**|**188,036**|**2**|**723,510**|
## 37 **ANNUAL REPORT 2021/22**
|**13. STOCK**|**Group**
**2022**|**Charity**
**2022**|**Group**
**2021**|**Charity**
**2021**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|Dressing stock|**154,085**|**48,871**|**144,828**|**44,225**|
|As detailed in note 1, the group’s donated stock for benefciaries is valued at fair value of £40 per outft and the|||||
|stock held at 31 March 2022 was counted and valued.|||||
|**14. DEBTORS**|**Group**
**2022**|**Charity**
**2022**|**Group**
**2021**|**Charity**
**2021**|
||**£**|**£**|**£**|**£**|
|Trade debtors|**107,952**|**31,487**|**196,481**|**36,820**|
|Accrued income|**80,075**|**59,324**|**207,394**|**179,723**|
|Other debtors|**54,601**|**42,071**|**50,534**|**50,106**|
|Amounts owed to group undertaking|**-**|**30,087**|**-**|**48,021**|
||**242,628**|**162,969**|**454,409**|**314,670**|
|**15. CREDITORS**|**Group**
**2022**|**Charity**
**2022**|**Group**
**2021**|**Charity**
**2021**|
||**£**|**£**|**£**|**£**|
|Trade creditors|**16,017**|**16,019**|**12,040**|**11,988**|
|Other taxation and social security|**18,030**|**3,548**|**28,048**|**16,893**|
|Other creditors|**5,293**|**19**|**8,026**|**2,509**|
|Accruals|**40,355**|**54,861**|**531,829**|**518,592**|
|Deferred income|**90,173**|**76,173**|**87,244**|**87,244**|
||**169,868**|**150,620**|**667,187**|**637,226**|
The accruals are predominantly a provision of £358k for property costs at the West London Centre for a period of several years. This has been resolved in the current period and the accrual has been reversed.
## **Deferred income compromises restricted grants received in advance:**
|Balance brought forward
Amounts utilised in the year
Current year income deferred
Balance carried forward
|**87,244**
**(87,244)**
**90,173**
**90,173**|**87,244**
**(87,244)**
**90,173**
**90,173**
**147,466**
**(147,466)**
**87,244**
**87,244**
**147,466**
**(147,466)**
**87,244**
**87,244**|**87,244**
**(87,244)**
**90,173**
**90,173**
**147,466**
**(147,466)**
**87,244**
**87,244**
**147,466**
**(147,466)**
**87,244**
**87,244**|
|---|---|---|---|
||||**87,244**|
**SMART WORKS** 38
## **16. RESTRICTED FUNDS**
|Staff related expenditure
Develop and broaden Smart Work Reach
Dressing stock
Other smaller donations
37,463
90,000
162,626
332,475
**622,564**
**Income**
**£**
**Expenditure**
**£**
(52,630)
-
(153,425)
(260,964)
**(467,019)**
17,803
117,000
144,885
16,573
**296,261**
**Balance at**
**1 April**
**2021**
**£**
**Current year**|-
(207,000)
-
-
**(207,000)**
**Transfers**
**£**
**Balance at**
**31 March**
**2022**
**£**
**2,636**
**-**
**154,086**
**88,084**
**244,806**|-
(207,000)
-
-
**(207,000)**
**Transfers**
**£**
**Balance at**
**31 March**
**2022**
**£**
**2,636**
**-**
**154,086**
**88,084**
**244,806**|
|---|---|---|
|||**244,806**|
The transfer from restricted fund to unrestricted funds relates to payments made to Smart Works subsidiary regional centres as noted in the Related Party Transactions note 22.
|Staff related expenditure
Develop and broaden Smart Work Reach
Dressing stock
Other smaller donations
16,348
125,000
165,513
8,205
**315,066**
**Balance at**
**1 April**
**2020**
**£**
**Prior year**|285,489
112,000
41,562
45,729
**484,780**
**Income**
**£**
**Expenditure**
**£**
(284,034)
-
(62,190)
(32,754)
**(378,978)**|-
(120,000)
-
(4,607)
**(124,607)**
**Transfers**
**£**
**Balance at**
**31 March**
**2021**
**£**
**17,803**
**117,000**
**144,885**
**16,573**
**296,261**|-
(120,000)
-
(4,607)
**(124,607)**
**Transfers**
**£**
**Balance at**
**31 March**
**2021**
**£**
**17,803**
**117,000**
**144,885**
**16,573**
**296,261**|
|---|---|---|---|
||||**296,261**|
39 **ANNUAL REPORT 2021/22**
## **17. DESIGNATED FUNDS - GROUP**
|Designated capital fund
51,933
**51,933**
**Balance at**
**1 April**
**2021**
**£**
**Current year**
Designated capital fund
44,062
**44,062**
**Balance at**
**1 April**
**2020**
**£**
**Prior year**|-
**-**
**Income**
**£**
**Expenditure**
**£**
-
**-**
-
**-**
**Income**
**£**
**Expenditure**
**£**
-
**-**|548,723
**548,723**
**Transfers**
**£**
**Balance at**
**31 March**
**2022**
**£**
**600,656**
**600,656**
7,871
**7,871**
**Transfers**
**£**
**Balance at**
**31 March**
**2021**
**£**
**51,933**
**51,933**|548,723
**548,723**
**Transfers**
**£**
**Balance at**
**31 March**
**2022**
**£**
**600,656**
**600,656**
7,871
**7,871**
**Transfers**
**£**
**Balance at**
**31 March**
**2021**
**£**
**51,933**
**51,933**|
|---|---|---|---|
||||**51,933**|
Designated Funds relate to leasehold improvements and other office equipment purchased as part of an office move
## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS - GROUP**
|Tangible fxed assets
Current assets
Creditors due within one year
-
244,806
-
**244,806**
**Restricted**
**Funds**
**2022**
**£**
**Unrestricted**
**Funds**
**2022**
**£**
59,493
2,608,919
(169,868)
**2,498,544**
**Current year**
**Prior year**
Tangible fxed assets
Current assets
Creditors due within one year
-
420,868
-
**420,868**
**Restricted**
**Funds**
**2021**
**£**
**Unrestricted**
**Funds**
**2021**
**£**
42,222
1,919,722
(667,187)
**1,294,757**|**59,493**
**2,853,725**
**(169,868)**
**Total**
**Funds**
**2022**
**£**|
|---|---|
||**2,743,350**|
||**42,222**
**2,340,590**
**(667, 187)**
**Total**
**Funds**
**2021**
**£**|
||**1,715,625**|
**SMART WORKS** 40
## **19. PENSION COMMITMENTS**
The company and its subsidiaries operate separate defined contribution pension schemes. The assets of the schemes are held separately from those of each company in independently administered funds. The pension costs charge represents contributions payable by the companies to the funds and amounted to £15,276 (2021: £18,915). Contributions totalling £3,256 (2021: £3,086) were payable to the fund at the balance sheet date and are included in creditors.
## **20. OTHER FINANCIAL COMMITMENTS - GROUP**
|**20. OTHER FINANCIAL COMMITMENTS - GROUP**|||
|---|---|---|
|At the year end the company had annual commitments under
non-cancellable operating leases as set out below:
Operating leases:
within one year
within two to fve years|**232,144**
**479,122**
**711,266**
**2022**
**£**
**2021**
**£**
**174,850**
**333,754**
**508,604**
**Land and buildings**||
|||**508,604**|
## **21. MEMBERS LIABILITIES**
The company is limited by guarantee. Every member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the debts and liabilities of the company contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up such amount as may be required not exceeding £1. At the balance sheet date there were 10 members (2021: 10 members).
41 **ANNUAL REPORT 2021/22**
## **22. RELATED PARTY TRANSACTIONS**
During the year the charity made the following donations to its subsidiary charities:
|Smart Works Birmingham
Smart Works Edinburgh
Smart Works Leeds
Smart Works (Greater Manchester)
Smart Works Newcastle
Smart Works Reading
Smart Works Birmingham
Smart Works Edinburgh
Smart Works Leeds
Smart Works (Greater Manchester)
Smart Works Newcastle
Smart Works Reading
Smart Works Trading Ltd
The following amounts were due to be paid to the subsidiaries at the year end.|**19,925**
**14,012**
**17,101**
**17,816**
**16,609**
**4,067**
**89,530**
**2022**
**£**
**4,746**
**-**
**3,848**
**5,785**
**1,398**
**12,710**
**-**
**28,487**|**2021**
**£**
**20,000**
**20,000**
**20,000**
**20,000**
**20,000**
**20,000**|
|---|---|---|
|||**120,000**|
|||**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|
Smart Works received a gift aid payment from Smart Works Trading subsidiary company totalling £160,023 in the year (2021: £208,459).
There were no other related party transactions in the year (2021: £nil).
**SMART WORKS** 42
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
**Registered name** Smart Works Charity **Charity registration number** 1080609 **Company registration number** 03870671 **Corporate status** The Company is limited by guarantee **Registered office** Unit 1, Canonbury Yard, 202-208 New North Road, London N1 7BJ **Telephone** 020 7288 1770 **Website** www.smartworks.org.uk **Current Trustees** Julietta Dexter (Chair, appointed 29 April 2021) Juliet Hughes-Hallett (resigned 29 April 2021) Ewa Kerin (Honorary Treasurer) Natalie Abou-Alwan Rachel Atkins (appointed 28 October 2021) Philippa Charles OBE Tiffanie Darke Fiona Holmes (resigned 27 January 2022) Amelia Mendoza (resigned 22 July 2021) Simongnette Scavazza (appointed 28 April 2022) Jane Shepherdson CBE Claire Spencer-Churchill **Company Secretary** Natalie Abou-Alwan **Patrons** The Duchess of Sussex Emma Barnett Betty Jackson CBE Jennifer Saunders Jane Shepherdson CBE **Honorary President** Lady Juliet Hughes-Hallett **Statutory Auditors** Critchleys Audit LLP **Bankers** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent, ME19 4JQ
**SMARTWORKS.ORG.UK @SMARTWORKSCHARITY CHARITY NUMBER: 1080609**