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 g￿ater 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 ACti￿tieS
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 subJ￿t 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