The Smiles Foundation Charit fAe Sjrti'les FOUNDATIO •ro ort and Financial Statements For the ear ended 31" December 2024 Regislcrcd Charity No. 1087961 The Smilcs Foundation For thc ear ended 31" December 2024 Contents Page Lcgal and Administrative Information Report ofthe I rustee% SiaÈement of Financial Activities Balance Sheet Statement of Cash FI0￿'S 10 Notcs to finaT]Lial Statem¢nts 11-13 Iiidepcndcnt Examiner's Report 14 The Smiles Foundation al and Administratis'e InfTrrmatiDn For thc 'ear endin 31 December 2024 Charity Name 11]c STnilL"s Troundalion Charity Number 1087961 Trustees K. D. Hoj. (Chaimian) B. McKee M. Wild.%mith N. Adams G. Cowan l. Steenson Registered Office 153 Beeston Road Lceds .SI 16AW Independent E.xaminer's Samantha Sutcliffe r.c.C.A. Torcvcll Dcnl Limited Chartered Certified Accountants Centre of F.xccllcnLc Ilopc Park Trei.'or Foster Way Flradford BD5 8HH Solicitor Clarion Solicitors Llritannia ChambeTS 4 Oxford PldLe Leeds J.SI 3AX England Banker5 Llovds Bank plc 65-68 Briggate Leeds I,SI 6LH The )miles Foundation Trrt nf the Trustees For the 'ear cnded 31 December 2024 The Tru5t¢¢s present their Report and Financial Slatcmcnls for Ihe ycar ended 31, December 2024. S12tus 'I'he Smiles F(iundatiOT] was constituted by a Dcclaralion of -frust dated 8 May 2001 (Incl regi51Lied as a cliarity on l O, August 2001 under charit) numbcr 1087961. Ob'ectivcs ThL objec11￿'es of the Charitv are:_ a) To Promote the Gospcl of Jesus Christ through w'ord and deed, as taiighl in (lie New Teslament or the Holv Bible. b) To rclief of th¢ iinplications of i*ar, famine and natural disaster. c) To provide fo(Trd, housing and I1￿.1ng assistanLe to men, women and cliildren. d) To instigate projects that provide sclf-help and employinent opportunities for the uneiTiplo)ied, refugccs and those ivith educational deficiencies ivho find cinployment diffjcult. e) To support educational and cultural dei'elopments tlirough tlic proi'ibion of facilitl¢S: Staff aiid Tllatcrials To encourage tlie ￿'Oung and old lo Smile lind know they are not forgotteii but lovcd and cared for to ensure ihem a berter life. Th¢ TrLlStees served in a voliiTltar) capacilj reL¢iwing no direct remuneratioii for ihcir ciforls, nor have claimed anj. expenses to w'hich they th'ould not bc entitled bv way of rcimburseimeiit t.or 'oiit of pocket, expeii.8es. Trustecs must have a heart for the charity and are recommeiidcd and appointed b)1 existing trustees. Training is gii'en ii'itliin the guidclincs OF Ihe Charities Commission. Tru.stees The trustees who.served during thc year V+'ere:_ K. t). Ho￿. (Chairnian) 13. McKee M. Wildsmith N. Adams G. Cowan l. SteensoTI The Smiles Foundation rt of the Trustees Fur thc 'ear ended 31, Dcccmber 2024 2024 - Revieiv of Actii'ities 2024 was a productive and successful k'ear Miitli oreat achicvcments despite soine major challeiiges. Most encouraging ￿'aS thc continijcd inleresl in Ihe Foundation s Work from all areas of support. Once again, considerablc travcl wa5 arranbTLd for vi5iling Siipport Bases acrnss thc LIK willi Ihc Cl',0 visiting Scotland and Northern Ireland in Februar), aiid An)crica froin March 13, throiigli April 8 ' UK Arnbas5ador: Luk-e Wathen annouiiced liis inlcnsion to resign from the voluntary" position witli ali aiiticipatcd final date on the field as October 31 $1 ?024. l_ocal Ambassadors conliiiued tlieir great work in their region. Adrian Poguc iii Northern Ireland, Jean Barcla) in Scotland and Annettc Charlcs ITI England. mis.qion Trips organised in 2024 w¢r¢ vcr) cncouraging and beneficial: totalling 144 I'isiting gucsts for Regular Trips and l 00 fnr the Celcbrations licld in Oc(ober for ihe Completion of Construction on ,Sunset House, Cihei. 244 guests throughout tlie )'ear M'as a rcmarkablc achic¥cincnt. Dawn Wilson continued to proiiide excellent support from Ihc" LLL"ds uffFLe for visiting guests. Tt was believed thc Suiisel House construction project in Romania: attracted a high iiiimber of visitors, to both see, and in manj cases work voluntarili, on tl)e building. Siinset House was proving to be an exciting project and clearlv cslablished as th¢ biggest and most costly project the Fouiidation had ei'er ilndcrtaken. Interest and Support ivas very pnsitive indeed. Will) tlie main constniction process coinpleted bv March •024, we allocated 6 inonllis to coiiiplete tlle internal finisliing and furnishiiig. This i¥'as possible through so maiiy N'olunteers cojniiig to hclp aiid as a result, C￿erythIng was ready for the Celebration Wcckciid of OLlokr 12 & 13, 2024. A meinorablc occasion w&s organised and cnjoycd by thL" 100 inlernational guests plus Tnaiiy from RLimilllta ￿h0 celebratcd the occasion. Fund-Raising required for such a start-of-tlic-art facilitN': Iillimalcl), aroiiiid £31iii Ilion, the F'oundatioii was ()&'envhclmcd bv tlle generosityr of supporters and the finished result of eN'ery"one's efforis. Delays in final finishing of Construction: 21%D caused us to delay opcrational opening for Staff dnd Residents. It ivas therefore decided to dela), Operational Opeiiing until April 2025. Whilst Sunset Flousc was ihe major project of thc Near: we still had Ihe regular opcratiiig projccts to support and maintain, so another deinanding j'car for surc. The Outreach -1 eam in Roimaiiia coiitinucd io bc wcll supporled bv donors iiiid was able to maintain the service to manv fam ilies in Bihor Lountl. experienciiig extreiiie difticiilties for a varicly of reasons, including general povert),. liealih difficulties, Iiousing and emplovm¢iii liinitations. Our hope lo see Rapa and Corbcsti C.ommLinilics beller served was dependdTIt on hopes to increa.se the Staff Team: especially fur the children in Rapa. Tliis proved dillicult and our main sliiff Tneinber for Rdpa Wds r()rLed io takc Medical leave froin August 2024 so Ihc aclivilics in Rapa wa5 significantly reduced. Wc ivill monitor the situation for options going forward. Dczna Outrctich I'roject had a major disappointment with a firc Dcpartmcnt inspeclion that highlighted variou% Needs to Llpgrade due lo changes in the Law. Our programme of Youth Camps, Confcrcnces aiid Retreats had to stop until tlie ivork w'as donc aiid rcinsp(￿ctCd. Wilh an cstimaled capital cost of up to £200,000 some scrious discussion was needed Dn hnii.- to apprnacli the challengc; bill nolliing WdS going to be possible until next year. The Smile$ Foundation Rc nrt nf the Truslees Fqjr the 'ear cndcd 31, December 2024 Th¢ Oiilreach Team. led by Adi Malls, did a fine job meeting the needs to the bcst ofiheir abilily. J'ileagd Nursery continued lo progress w'¢ll IN'ith a strong regislration of 40+ cliildren. The continued Statc Subsidies received for operating tlie Nurscn, conlTnued to help sigiiifiLantly providiiig a positive contribution to thc opcralinby bud¥et. 'l-here .some serious tliiiuE17t given lu nii)ving tlic Nurscry to the 'I'i ILa¥d Community Complex i¥l)ere H.'e had inorc spaLL (ijid niccr r(Iciiilics i¥ith tlie polciiliAI lo iiicrcasc capacity of registercd childreii. This was thought to be a project for 20?5. The Eiiiergency Housii)g Lnil in imierlau continued to be used bj Ukrainian Rcfugees wliich is anticipated io be needed for maximum, onc more year. Smiles Residential Facil ities coiitiiiiicd to funclion ivell, lind nutnbcr of r¢sidenLs continucd to stay strong in EC'O (46} and TAL (42). Salonta continued tn be much sloiver and seemcd Some￿,hat stuck at about 28 rcsidents. This adds pres.%ure to JFL Salonta as lack of residents makes budgets difficult a5 lllost of Ihe costs rcinain the samc. Smi les continue to keep Pliase Ti4,0 Tl) Salonta closed, so al I residents accominodated iii tlie Phase One Building - kccping the main faci litv fulli- operational i￿[th a niaximiiin of 30 resideiils. 'I'he (i la.s.shousc in Arpascl wds functioning ￿'ell and the e%tablislied teani thcrc remiiined consisteiit wliich helps greatly in ensuring a smooth opcralion. We were delighted to .see the Glasshoiise sales for 9024, remain strong and shoiN'.s positive indication for thc year ahead. 'I'he the unreslriLled funds, not coinii)illcd or invested in tangiblc assc15 ('Ihe free reserves,) hcld bl, the charity should be betwcen l and 3 nionlhs of tlie rcsoiirces expended, wliich cquatC5 tu £50:000 to £150.000 iii general funds. At tlie proposcd rcscrves level, the Tru.stccs rccognise the need to contiiiue to attract major fuiidiiig in order (() Inaintaiii actiiiitics. Jnvestmcnt folic I'he -friistees have considcrcd the tn05l appropriale policv for investing funds. short terin rcscrvcs will be held in lh¢ Truslees intercst-bearing bank account. future long-term reservcs will be held in accounts desigjned for the cliarity scctor: wilh Ihe requirement to generate income and/or capital growth. The Smiles Foundation Rc ort of the Trustees For the 'ear ended 31" December 2024 Rlsk Rcview The Trnst¢cs hav¢ fODducted their own review of Ib¢ mdjot risks io which Ihc chdrity IS ¢XPOsed. and Sy51em5 have been established to mitigate ihose risks. Significant cxlernal risks to funding hav¢ led to tlie development of a stral¢gtc plan w.hich will allow for ihc divcr.%ificalion of fiinding and activitics. I.nlcrnal risks ate minimised using profcssional con5ultanls, and thc implcincnlatioii of proccdurcs for authorisation of all transactions and projects and to en5urc consibt¢nt qudility of dclivery for all opcrational aspects of the charitable compan),. The procedur&s are period]'call)T revicived to ensure Ihev still meet the needs of th¢ charity. Res oiislbilities Df tbe Trustees Law appliLablc to charitics in England and Wales rcquirc.% the Trustees to prepaTC fIn￿lCial slatcmcnts for cach financial vear which give a true and fair view ()f (he state of affair.s nf the cliarity as at tlie balance sheet date and of its incoming rcsources and application of resources, Including income and expeiiditure, for the financial year. Tn preparing those financial %(atLun¢nts, the Trustees should folloiv best practice and: > Sclect Suilable accounting po7ycics and Ihen apply them consistent)y. > Makc judgem¢nLs and ¢51imatcs that arc reasonablc and prudenl- and > State whethcr applicabl¢ accounting standards dnd Statements of Rccuniniended Prdclice have becn followed, subjcct to any departurcs diSLlosed and explained in dic financial slalcments, Prepare the financial sialcments on the going conc¢Tn basis unless il is inappropriale lo abbuni that the chiuity will continuc on that bdSIS. The Trustees are responsible for maintaiiiing proper accounting records whicb disclose ivith reti,sonable accuracy at any time the financial position of tlic cliarity and to enable tIieni to ciisurc that tlie finallcial statements comply with the Charities Act 2011. The Trustees are also responsiblc for safeguarding the assets of the charity and hence for taking reasonablc steps for the prevcnlion of fraiid and otlier irregularitie.%. Approved by thc Tru. eesonthc.... .September 2025 and signed on their behalf by,, .D.Hoy Chair of Trustees The ,Smiles Foundatinn Statemcnt of Financial Aetivilies For the ) ear ended 31, Dcccmber 2024 Ilnreslricled Restricled Fund. Funds 2024 2024 Tolal Funds 2024 Total Funds 2023 Notcs Income and Endowments from Donalions and legacies Activilic.s t.or generating funds c.haritable aclivitie 281,368 925 442,779 281.-168 925 442.779 298,677 3,421 428.664 Total income 725.072 725.072 730,762 Expenditure on Raising funds C,hc1ril(Ible activities ()tli¢r 1.397 749.181 1,3()7 749,181 2,244 3,830 594.998 2,114(1 Total expenditure 752.822 752,82? 600,868 Net movement of funds (27,750) (27,750) 129.849 Total funds brougbl fO￿ard 160,564 160.564 30,670 Total funds carried forTrvard 13?814 132,814 160,564 The staleinent of financial activities includcs all gyaiiis and 105se5 in the vear. All incoiiiing rcsources and resources expeiidcd dcrive frvm continuine activities. -rhe notcs nii pagc I I to 13 forni part ofihe5¢ financial statcinenls. The Smiles Found*tion Balan e Sheet As at 31" Dcccmber 2024 Note5 2024 2023 Flxed Assets 500,000 500.000 Current A55ets Debtors Baiik 23,744 34,915 16,905 29,600 58,659 46.5Q5 Credltor5: amount falllng due within onc year (2,244) (2,040) Net Current A55et51lLiabllltffie5) 56,415 44,465 CredltDrs: amounts fAIUn¥ due over more thsn one year (423,601) (383,901) TotAI l%et Liabilitie Unrestricted _ General ￿nd 132,814 160,564 Funds of the Charity Unrestrictcd - Gcncr&l fund Restrictcd- Incomc funds 132,814 160.564 Total Charlty Funds 132.814 160,564 The flljancial stslem¢nts were approved by the TThstees on the. behalf by.. .Sepiernber 2025 and signed on their K.D.Ho Chalr of Trus Thc notcs on paivc I l 10 13 fonn part of tlicsc financial statciiiciits. The Smiles Foiindation Statement of CA5h flow'.5 Fur the 'ear ended 31$1 December 2024 2024 2023 ca.sh llows from Dperating 2Ctivities: Nel Ga,Yh proi'ided by lused in) operaling aclivitie.s a.s belnw (34,385) 127,962 Cash tlow% from investing Activities: Purch(25e of property, plant & cqijipmcnt Proceed% from sale of property, plant & equipmciit Net ca.sh providcd by (used in) inve.sliiig aciii'ilies Cash flows from financing actiTritics: Rcpaymenls of borroiving Cash inflow5 froin neth, borrowing (45,-300) 85,000 (134,300) Nel Ccuh provided by (u.sed in)finuiic'ing aclivilie.s 39,700 (134,3011) Change in cash and ca.yh equity'aleiil.F Ili ihe reporlingperiod Ca8h aiid cash eqLIiv'ear Accruals 2.244 2,040 2,244 2,040 12 'rhe Smiles Foundalion L Otes to the FTnancial .%tatements For the 'ear en(IEd 31 DeLember 2024 2024 2023 7. Creilitors: amiTrunts fallin2 due over more Ihan onc y¢ar Loan.$ 423,601 381,901 423.601 383,901 8. Securit). The bank loan is guaraiitccd pLrsuniillv b!, K.D. HON,. Lnan.% are not sccurcd. As at 31 Decemb¢r 2024 interesi free loans lotalling £NIL ii.'ere out5taiidiiig to K. D. Ho) (2093.. £NIL) 13 The Smiles Foundatinn Inde ndenl F,xaminer's Re rl t(J the Trustce5 of the smile.s Foundation For thL' 'ear cnded 31" December 2024 I report to the Trustees on mv cxaminalion of the aLcounts of -l-lie Siniles Fouiidatiuii for the !e¢ir elided 31 Sl Dcccmber 2024 which are set out on page% 8 to 13. Responsibililies and ba.sis of report 'I'he C"harity".s Trustecs arc rLspull5ible for tlie preparatinii (If tlie accoiInts in accordancc with tlie rE(iiiirement% of thc Charities Act 2011 ('thc Act". ) I rcport in r¥5pect of mv exam inatioii of ihc accoiinls ￿rrIeS oul uiider section 145 ot- tlie 20 I l Act and i n carrying out mv cxamination I haN'e followed all tlie applicable dircclions given by the Charity Comni ission under sectioii 145(5)(b) of Ilie Acl. IndepeDdcnt Examiner's Statement I confim) that l am qualified to undertake the examinatioii hL*ause l ain a member of Tlie Association of Chartered Certified Accountants, whiLh is one of the listd bodies. I have complctcd my exatnination. I confinn that no material matler.% havc coinc Io my ¢lttenliuii in connection with the exam ination giving tne cause to bel ieve that in an)y material resect= In connection with my examination: no matter has come to my atlenlion: l. Accounting records wcrc not kepl in rcspcct of the Charity as required by scction 130 of tkic Act- or 2. The accounts do iiot accord ivith tho)5e Tecords" or 3. The accounts do not compl) w'ith tlie applicable r¢quircnicTlts coiiceming tlic form and content of accounts set out in thc Charities (Accounts and Reports) Reoiilatioiis 2008 oilier than any rcqiiirement that the accounts give a "true and fair fviciv wljich is iiot a matter coii%idered as part of an iiidependcnt cxamination" I have no other conceriis aiid have come ilLross no oilier matters in connectioii willi tlie examination to ii,hich attention should be drawii in this rcport in ordcr lo cnablc a propLr Iiiiderstaiidi17g of the account.s to he reached. antha J Sutcliffe F.C.C.A. Tnrevell Dent I,imile(I Chartercd Ccrtified Accnuntanl Centre of F.xcellence Hope Park Trei'or Foster Way Bradford Date ..?.q.l.?.9. 1202) 14