The Smiles Foundation Charit fAe SMI"les FOUNDATION A•ffi ch•rlfyW¢. 1007161 rt and Financial Statements For the ear ended 31" December 2023 Registered Charity No. 1087961
The Smiles Foundation For the ren l°De Contents Page L¢gal and Administrative Jnforn]ation Rq)ort of the Trustees Statement of Financial Activities Balance Sheet Statement of Cash Flnws 10 Notes to Financial Statements 11-13 Independent Examiner's Report 14
The Smlles Foundatlon Le *] and Administrative Inforniatlon For the 'eAr endin 31 Deeember 2023 Charity Name The Smiles Foundation Charity Number 1087961 Trustees K. D. Hoy (Chairn]an) B. McKee M. Wild5mith N. Adams G. Cowan l. Steenson Registered Ofll¢e 153 Beeston Road Leeds LSII 6AW Independent Examiner's Samantha Sutcliffe F.C.C'.A. Torevell Dent Limited Chartered Certified Accountants Centre of Excellence Hope Park Trevor Foster Way Bradford BD5 8HH Solicitor Clarion SoliLitor6 Britannia Chambers 4 Oxford Placc Lceds LSI 3AX England Bankers Lloyds Bank plc 65-68 Briggate t£eds LSI 6LH
The Smiles Foundation Re ort of the Trvstee5 For the 'car ended 31° December 2023 The Trustees present their Report and Financial Stalements for the year ended 31 December 2023. Staths th The Smiles Foundation was constituted by a Declaration of Trust dated 8 May 2001 and registered as a charity on l O, August 2001 undcr charity number 1087961. Ob'ectives The objectives of the Charity are:. a) To promote the CJospel of Jesus Christ thmugh word and deed, as taught in the New Testament of the Holy Biblc. b) To 11¢[0[ thc tmpli¢ations of war, famine and natural disaster. c) To provide food. housing and living assistance to men, women and children. d) To instigate projects that provide self-help and employment opportunities for thc unemployed. rcfugccs and those with educational deficiencies who find employment difficult. e) To support UCatiOnal and cultural developments through the provision of facilities, staff and materials To encourage the young and old to Smile and know they are not forgotten but loved and carcd for to ensure them a better life. The Trustccs scrved in a voluntary capacity rccciving no dircct rcmuncration for their efforts. nor have claimed any expenses to which they would not be entitled by way of reimburscment for 'out of pocket. expen8¢S. Trustees must have a heart for the charity and are recommended and appointed by existing trustees. Training is givcn within thc guidclincs of the Charities Commission. Trustees The trustees who served during the year were:. K. D. Hoy (Chairnian) B. McKce M. Wildsmith N. Adams G. Cowan I. Stecnson
The Smiles Foundation rt of the Trustees For the 'eYdr ended 31" December 2023 2023 - Review of Activities 2023 continued the positive direction experienced as the world emerged out of thc Pandcmic ¢ra and returned to a somewhat nornial programme with interest in the Foundation's Work from all areas of support. Considerable travel was arranged for visiling Support Bases across the UK with the CEO visiting Northern Ireland in January and America in March. UK Ambassador, Luke Wathen visited several locations in England, Scotland and Wales during January to March before he returned to Romania to begin the Mission Trip 5¢ason. Local Ambassadors continued their great work in their region. Adrian Pogue in Northern Ireland, Jean Barclay in Scotland and Annette Charles in England. Mission Trips organised in 2023 were very encouraging and beneficial, totalling 268 visiting guests throughout the year. Dawn Wilson continued to provide excellent support from the Leeds office for visiting guests. It was believed the Sunset Flouse conslruction project in Romania, attracted a high number of visitors, to both see, and in many cases work voluntarily on the building. Sunset House was proving to bc an exciting project and clearly established as the biggest and most costly project the Foundation had ever undertaken. Interest and Support was very positive indeed. Unfortunately, several significant dclays wcre experienced with the Contractor and this steadily pushed us further behind on all our plan8 for the Construction process, Finishing and Opening which had originally been scheduled for summer 2024. By the end of 2023, we considered the project lo be up to 6 months behind schedule, which put at risk the planned functioning Wlth Staff and Residents by June/July 2024. The decision was thcrcforc takcn to delay 'functioning' with Staff and Residents, focu8ing instead on getting the Building Competed, ready for Authorisation Insp¢¢tion. so that functioning arrangements ould be better considcr¢d at an carly stagc for 2025. On that basis. Construction and Furnishing was schedulcd to be finished by September 30th 2024. The Official Celebration for the Facility to be October 1211 & 13 2024 and then planned arrangements would start for Functioning. Continuing to be concerned with raising the Funds requird for such a start-of-the-art facility, anlicipated to be around £3million, the Foundation continued pursuing options for selling some of our Fixed Assets to contribute to the financial n¢¢ds. During the year, significant success was achieved in attracting interest in the sale of two facilities. Land in Boga and the Community Centre and House in Gepiu. During 2023, tern]s were agreed for both assets and a net income would be raised of E330,000 (£295,000 approximately) a helpful 10 % contribution towards Sunset 14ouse budget. We look forward to seeing completion of the Facility in 2024 and starting to operate the programme from early 2025. Whilst Sunset House was the major project of the year, w¢ still had the regular operating projects to support and maintain, so another demanding year for sure. The Outreach Team in Romania continued to be well supported by donors and was able to maintain th¢ service to many families in Bihor County experiencing extreme difficulties for a variety of reasons, including general poverty, health difficulties, housing and employment limitations.
The Smiles Foundation rt of the Trustees For the 'ear ended 31" December 2023 Rapa and Corbcsti Communities were also serviced well, but hopes to increase thc Staff Tcam would allow for better service. especially for the children in Rapa. Dezna Outreach Project had another good year. The reputstion for Dezna Outreach Centre continues to grow, providing great opportunity for Youth Camps, Conferences and Retreats. The Outreach Team, led by Adi Matis, did a fine job meeting thc necds to the best of their ability. Tileagd Nursery continued to progress well with a strong registration of 40+ children. The continued State Subsidies received for operating the Nursery continued to help significantly providing a positive contribution to the operating budget. The Mission Ccntrc in Cihei experienced a busy but very px)sitive year, with a strong numlxr of visiting guests from the United Kingdom. The Emergency Housing Unit in Mierlau ¢ontinu¢d to be used by Ukrainian Refugees which is anticipatcd to be ne¢d¢d for at least another year. Smiles Rcsidential Facilities continued to function well, and number of residents continued to stay strong in ECO (46) and TAL (42). Salonta continued to be much slower and .seemed somewhat stuck at about 25-27 residents. This adds pressure to JFL Salonta as lack of residents makes budgets difficult as most of the costs remain the same. Smiles continues to keep Phase Two in Salonta closed, so all residents accommodated in the Phase One Building- keeping the main facility fully opcrational with up to 30 rcsidcnts. Th¢ Glasshous¢ in Arpascl was functioning wcll and th¢ established team there rcmaincd consistent which helps greatly in ensuring a smooth operation. We w¢r¢ d¢light¢d to s¢¢ th¢ Glasshouse sales for 2023, r¢main strong and shows positiv¢ indi¢ation for the year ahead. The administrative and financial staff in Romania continued to do an excellent job. Maria Hava (Director of Missions), Adi Matis (Director of Outreach) and Simona Tosity (Dir¢ctor of Enterpris¢) continued under the leadcrship of Kevin Hoy (CEO). to maintain thc management and control of the organisation's projects. The 4-person team is known as the Executive Management in Romania. During the year, Simona took a greater role in Residential Care and Plans are in place for 2024 to see that transition increased, with Dani Faur taking a gater responsibility at the Glasshouse. Management staff wcrc rising to thc nccds in various projecty with Cam]en Pop at F.CO and JFL and Delia Mezea in TAL. These both proved a great support for day-to-day duties that Simona Tosity was getting more involved with. In finance and administration, Dawn Wilson continued to managc th¢ IK¢ds Officc with administrative and accounting 8UPPOrt from Nina Florea and Corina Nemtut in Romania. who all do a truly exccllcnt job. The tremendous service that each person gives to the Foundation is part of the secret to the success. Dawn 35 years, Corina 19 years and Nina 15 years. With the Pandemic impact truly behind us. we were extremely pleased to achieve such a positive position by the end of 2023.
The Smiles Foundation rt of the Trustees car ended 31. December 2 Results Full details of the financial transactions are contained in the attached accounts. Kevin Hoy Chief Executive The Smiles Foundation Se tembcr 10th 2024 Future Develo ments The Charity's intention is to work towards completion of the project, Sunset Hou8e Cihei, by September 2024- at least in main construction term.s. finisl)ing and furnishing. This will allow us to plan Full Operation with Staff and Residents by spring 2025. Tileagd A551Sted Living will need considerable upgrades for Fire Code Authorisation which will be worked on during 2024. Likewise, De7.na Outreach Centre will need similar Fire Code upgrades which will be looked at in detail aftcr the Summer Season of Camps. Once updatcd Authorisations are obtained, we will look to market and promote the facility in Dezna and we anticipate we will require additional personnel to manage th¢ increased programme, hopefully in 2025. Th¢5¢ future development plans sug8¢St exciting times ahead for the Smiles Foundation, Reseryes Pollc The Trustees, are working towards a policy to whereby the unrestricted funds, not committed or invested in tangible assets ('the free reserve8') held by the charity should be between l and 3 months of the resources expended, which equates to £50,000 to £150,000 in general funds. At the proposcd rcserves level, the Trustees recognise the need to continue to attract major funding in order to maintain activilies. Investment Polic The Trustees have considered the most appropriate policy for investing funds. Short terni reserves will be held in th¢ Trustees, interest-bearing bank account. Future long-terni reserves will be h¢ld in accounts designed for the charity sector, with the requirement to generate income andlor capital growth.
The Smiles Foundation Re rt of the Trustee For the 'ear ended 31 December 2023 st Risk Review The Trustees havc conducted their own review of the major risks to which the charity is expos¢d, and systems hav¢ been e.stablished to mitigale Ihosc risks. Significant external risks to funding have led to tlie development of a strategic plan which will allow for thc divcrsificalion of funding and activitie5. Internal risks ar¢ minimised using professional consultants, and the implementalioii of procedures for authorisation of all transactions and projects and to ensure coiisistent quality of dclivery for all operational aspects of thc chariiablc company. Tlie procedures are pcriodically reviewed to cnsure Ihey still meet the needs of the charity. Ro. Dnsihililie.s nf tlic Tru,4tce8 Law applicable to charities in England and Wal¢s rcquires the Trustees to prepare financial slatements for each financial year which give a true and fair view of the state of affairs of ihe charity a.8 at the balancc sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In prcparing ihose financial statements, the Trustees sliould follow best practice and:
Select suitable accountin8 policics and Ihen apply them con51Stently, Make judgem¢nts and estimates that are reasonabl¢ and prudent. and State whether applicablc accounling standards and statements of Rccomrnended Practice have bcen followed, subject to any departurcs disclosed and explaiiied in the financial statcinents. Prepare the financial statemcnts on ihe goTng concern basis unle8S It is inappropriate to assume that the charity will continue on that basis. The Trustees arc responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time thc financial posltion of the charity and to enablc thcm lo ensure tliat the financial statements comply with the Charitie5 Act 2011. The TrusteC5 are also responsible for safegiiarding the assets of the charity and hence for taking reasonable steps for the prevention of fraud aiid other irregularities. Approved by the Trustees on th¢.,.....September 2024 and signed on their behalf by.. K. D. Hoy Cbair of Trustees
The Smiles Foundation Statement of Financial ACtitieS For the ear ended 31" December 202 Unrestrieted Restricted Funds Funds 2023 2023 Total Funds 2023 TotV41 Fund8 2022 Notes Income and Lndowment$ from Donations and legacies Activitics for gcnerating funds Charitable activities 298,677 3,421 428,664 298,677 3,421 428,664 323,903 7,325 261.400 Total ineome 730,762 730.762 592,628 Expendlthre on Raising funds Charitable activities Other 3,830 594,998 2.040 3,830 594,998 2,040 1,508 706,373 1,896 Total expenditure 600,868 600,868 709,777 Net movement of funds 129,894 129,894 {117,149) Total funds brought forward 30,670 30,670 147,819 Total funds carried forward 160.564 160,564 30,670 The statcment of financial activities includes all gains and losses in the year. All incoming resources and rcsourccs expen(kd derive from continuing activities. The notes on page I I to 13 forni part of these fmancial statements.
The miles Foundation Balance Sheet St As at 31 December 2023 Notes 2023 2022 Fixed Assets 500,000 500,000 Current Assets Debtors Bank 16,905 29,600 14,829 35,938 46,505 50,767 Creditor8: amount falling due within one year (2,040) (1,896) Nel Current Assetsl(Liabilities) 44,465 48,871 Creditors: amounts falling due over more than one year (383,901) (518,201) Total Net Liabilities Unrestricted - Gcncral fund 160,564 30,670 Funds of the Charity Unrestricted - General fund Restricted- Income funds 160,564 30,670 Total ChArity Funds 160,564 30.670 The financial statements were approved by the Trustees oil the.......September 2024 and signed on their behalf by.. K. D. Hoy Chair of Trustees The notes on page I I to 13 fomi part of these financial statemeiits.
The Smiles Foundatiott Statement of Cash flows rth ear ended 3 •¢ Decem er2 2023 2022 Cash flows from operating activities: Nel cash provided by (led in) operaling aclivilies as below 127,962 (120,917) Cash tlows from investing activities: Purchase of property, plant & equipment Procceds from Sale of property, plant & cquipment Nel cash provided by (used in) investing activities Ca8h flows from financlng activitie8: R¢payments of bom)wing Cash inflows from new borrowing (134,300) (76,442) 200,000 Nel cash provided by (used in)financing activilies (134,300) 123,558 Change in cagh and cash equivalents in the reporlingperiod Cash and cash cquivalents at the beginning of the reporting period (6.338) 35,938 2,641 33,297 CA$h and ¢Agh equivalents at the end of the reportlng period 29,600 35,938 Reconciliation of net incomel(expendlture) to net Casb flow from operating activities: Net Income/{expeDditure) for the reporting period {as per the statement of financial activities) 129,894 (117.149) Adjustments for: Depreciation clwges Loss on salc of fixed assets {Incrcasc) in debtors Increase in creditors (2,076) 144 (3,789) 21 127,962 (120,917) 10
The Smiles Foundation Notes of the Finaneial Statements For the ear ended 31. Deeember 2023 l. Accounting policies a) Basls of preparAtlon The accounts havc bccn prcparcd in accordance with Applicabl¢ accounting standar(ls, the Statement of Recommended Practice. Accounting and Reporting by Charitics 2005. Thc accounts are prepard under the historical cost convention and are in accordance with Charities SORP (FRS 102). b) Going concern As stated on page 7. the accounts have been prepared on a going concern basis. This is dependent on the continued support of thc loan crcditors shown in Notc 7 to the accounts. c) Fund #CCOUDting Unrestricted funds are corporate funds, which as such are available for use or retention at thc discrction of the ttustees in accordance with the Trust's objccls. Rcstriclcd funds arc irnst funds subJt to specific restrictive conditions imposcd by the donor or by the declared purpose in appeals literature. d) Incoming Resources All income is accounted for on a receivablc basis. Any gencral Purpose grants who.8e use is restricied by the grant or to some futurc accounting periods are accounicd for as dcfcrrcd income until the restri¢tion has been satisfied. e) Resources expended All expenditure is arxount¢d for on an accrual's basis and, where incurred directly to further the Trust's charitsble Objec is shown a8 project direct costs un(kr the heading of charilablc expcnditure. Taxation The charity is registered with the Charities Commission and is not subject to taxation on its nornial activiti&8. 2. Resources expcnded on charltable aetfjvttle8 2023 2022 Project support costs Travelling expenses Office administration Bank charges and interest 535,394 1,359 55,769 2,476 652,135 982 51,731 1,525 594,998 706.373
The Smiles FoundatAon Notes to the FinAncial Statements For the 'eAr ended 31. December 2023 2023 2022 3. Investments Loans to SminTO SRL 500,000 500,000 Sminro SRL is a wholly owned subsidiary of (Asociatia Smiles) a Charity registered in Romania. 2023 2022 4. Net Incoming resources for the year this is stated after charglng:. Independent examiner's fees 2,040 1,896 2023 2022 5. Debtors Gift Aid 16,905 14,829 2023 2022 Creditors: xmount8 falling due wlth one yevar Accruals 2,040 1,896 2,040 1.896 12
The Smiles Foundation Notes to the Financial Statements For the st ear ended 31 Deccmbcr 2023 2023 2022 7. Creditors: amounts falling due over more than one year 383.901 518,201 383,901 518,201 8. Security 8t The bank loan is guaranteed personally by K.D. FIOY. Loans are not SCLured. As at 31 D¢c¢mber 2023 interest free loans totalling £0 were outstanding to K. D. Hoy (2022: £22,137) 13
The Smile5 Foundation Inde ndent Examiner'5 Re rt to the Trustees of the Smiles Foundation For the ear ended 31" December 2023 I report to th¢ Trustees on my examination of the accounts of The Smiles Troundation for the year ended 3 l5t December 2023 which are set out on pag¢s 8 to 13. Responsibllltles ¥4nd basls of report The Charity's Trustecs arc responsible for thc prq)aration of the accounts in accordance with the rcquircmcnts of the Charities Act 201 I ('the Act,) I report in respcct of my cxamination of the accounts carries out under section 145 of the 2011 Act and in carrying out my examination I have followcd all thc applicable directions given by the Charity Commission under section 145{5)(b) of the Act. Independent Fxamlner's Statement I confirn] that I am qualificd to undertake the examination because l am a member of The A.ssociation of Chartered Certified Accountants, which is one of the listcd bodics. T have completed my examination. I confllm that no matcrial matters have comc to my attention in connection with the examinatxon giving me cause to believe that in any material re8ect: In connection with my cxamination, no matter has come to my attention: l. Accounting records wer¢ not kept in rcspcct of the Charity as required by section 130 of the Act; or 2. The accounts do not a¢¢ord with those records. or 3. The accounts do not comply with the applicable requirements concerning the fonn and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view which 1% not a matter considered as part of an independent examination, I have no other 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 undcrstanding of the accounts to be reachal. anthA J Sutcllffe F.C.C.A. Torevell Dent Limited Chartered Certified Accountant Centre of Excellence Hope Park Trevor Foster Way Bradford BD5 8HH Date . 14