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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 03672399 (England and Wales) REGISTERED CHARITY NUMBER: 1092212

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022 FOR SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

Ainsworths Limited Charter House Stansfield Street Nelson Lancashire BB9 9XY

SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

Page

The following pages do not form part of the financial statements

14 Detailed statement of financial activities

SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31[ST] MARCH 2022

The trustees (who are also directors of the charity for the purposes of the Companies Act 2006) present their report together with the unaudited financial statements of the charity for the year ended 31[st] March 2022. The company was incorporated under the Companies Act on 23[rd] November 1998 (Company number 03672399). The company obtained charitable status on 27[th] May 2002 under the provisions of the Charities Act 1992 and 1993 (Charity number 1092212). The company is governed by the Memorandum and Articles of Association as amended on 15[th] May 2013.

PRINCIPAL ACTIVITIES AND OBJECTIVES

The principal activity of the company during the year under review was that of community mediation and conflict resolution services.

TRUSTEES AND DIRECTORS

Mr P Kenyon Miss C Pike Ms C Dobson Mr P Iganski (Retired 15[th] March 2022)

The charity trustees have complied with their duty in the Charities Act to have regard to the guidance on public benefit as published by the Charity Commission in exercising their powers of duties.

Review of Developments, Activities and Achievements

This year has focused on stabilising the business and exploring opportunities for growth and sustainability in the medium to longer term. Like many small social enterprise organisations with charitable status, the last two years have presented significant challenge. Smile successfully managed to continue to operate and we have applied the lessons learned from the experience of delivering services during the pandemic.

An interesting development in service delivery this year has been a significant increase in referrals for conflict coaching, accounting for approximately 35% of all referrals. This is an extension of our mediation offer and supports individuals to explore coping strategies when they are experiencing conflict and the ‘other’ person does not want to engage in mediation. This approach uses the mediation structure and coaching questions in order to draw out practical ways to minimise the impact of the conflict. In essence being listened to and working through the ‘issues’ is a powerful way for people to take back control.

There has also been a significant increase in referrals where the people involved reported multiple and complex needs; primarily mental ill-health, suicidal thoughts, chronic health issues and greater intolerance exacerbated by Covid. This has been an ongoing discussion between mediators during group supervision sessions as recognising and acknowledging safeguarding is a high priority for Smile.

During the year a return to office working after a long period of mostly homeworking enabled the staff team to start to reconnect and redefine what work means for Smile. Whilst we were able to deliver a good service working remotely, it became evident that working relationships and staff wellbeing needed more attention if we were to continue to develop our services and our people. It is fair to say that with some continuation of Covid restrictions a full-time return to the office was no longer the only option for Smile.

The team recognised that our service would benefit from more regular interactions and we agreed to trial a minimum of two days in the office; this was subject to review in terms of efficiency and effectiveness as well as improved working relationships. On the whole this approach has worked well and we will continue to work in this way going forward. Other reflections included an exploration of the purpose of the office and why we need a base; this is a work in progress and something the trustees and staff will keep under review.

1

SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

Review of Developments, Activities and Achievements (Cont.)

The trustees managed financial risks very closely and whilst the financial picture was much healthier, board members agreed to calculate the costs of a managed closure, should it ever become necessary. This enabled the board to see at a glance the critical points during the year; this was supported by a cautious approach to setting the budget which assumed minimal growth and maximum expenditure. This approach has served the board well during the year and has contributed to positive discussion and decisions regarding investment in the future. Smile has a track record of generating more income and managing expenditure during the year and this has been the case in 2021/22, resulting in a healthy surplus.

We continue to raise Smile’s profile through a number of social media platforms, promoting our mediation, training and volunteering opportunities; we know that the external operating environment is competitive and that we must maintain a positive presence across the sector. This increased the number of visits to our website, comments from posts on Twitter and LinkedIn and resulted in enquiries for skills based training and spot purchase mediation referrals from new customers.

Partnership working is an essential element of the excellent services we provide. Smile prides itself on developing and maintaining good working relationships and one particular example during this year has been the partnership with Resolve ASB; we have worked closely with them to market a new package of skills training and this resulted in the delivery of nineteen training courses to over 300 people. We will continue to strengthen our mutually beneficial partnership in the future as it is providing a great skills programme for social housing teams across the country and at the same time supporting Resolve to expand their service offer to their members.

Once again, Smile successfully applied for a National Lottery Awards for All grant. The grant was used to provide our mediation skills qualification for new volunteer mediators as well as supporting existing mediators to access refresher training. The blended virtual and in-person training course was delivered in February and March 2022; the highlight for the trainees and the staff team was a coming together on the final day of the training to put into practice the new learning and skills developed over the previous five weeks. Meeting in-person made such a positive difference for everyone involved. Thanks goes to the National Lottery for continuing to support such an essential part of Smile’s core business.

Smile is always exploring ways to support and develop young people in the workplace; this year we applied to be part of the Government Kickstart programme. Whilst programmes such as Kickstart sound positive in theory, getting the right person and the right ‘fit’ for Smile proved more difficult in practice. With limited capacity in the team to support someone with limited work experience and skills proved challenging; however the experience reinforced the need for a permanent member of the team going forward.

On the theme of young people and apprentices, Smile is proud to be part of the new two year ASB Apprenticeship programme being delivered by Resolve ASB. The success of our Conversation not Confrontation programme resulted in an approach from Resolve to develop a nine module advanced conflict awareness and communication skills programme that would underpin the apprenticeship programme. This programme will be rolled out in April 2022.

Sadly, March saw the retirement of trustee, Paul Iganski. This was a planned retirement and he resigned as Chair in January 2022 before retiring fully from the board in March. The board wishes to express their thanks to him for his excellent chairing skills, curious questioning, appropriate challenge and considered and thoughtful contributions over the last six years. Catherine Dobson was subsequently nominated and elected as the new board Chair.

There is much to be optimistic about in the forthcoming year, with investment and growth at the centre of Smile’s plans, including a new role of Head of Operations and Business Development to support the leadership of the organisation and build on the opportunities and partnerships established during 2021/22.

Finally, a huge thank you goes to everyone that contributes to the Smile family, our mediators, staff team, associates and trustees without whom none of this would be possible.

2 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

Policy for Holding Reserves

Reserves are held for the sole purpose of enabling the charity to continue to deliver the services offered. Such reserves total £79,199 (2021: £56,873) and are unrestricted.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also directors of Smile Mediation Limited for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which 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:

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.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

ON BEHALF OF THE BOARD :

............................................. Mr P Kenyon Director Date: 13[th] July 2022

3 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31[ST] MARCH 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022, which are set out on pages 5 to 13.

RESPONSIBILITIES AND BASIS OF REPORT

The charity’s trustees (who are also its directors for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 Act (the ‘2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER’S REPORT

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no 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 understanding of the accounts to be reached.

Mel Henry FCCA Ainsworths Limited Chartered Accountants Stansfield Street Nelson, Lancashire BB9 9XY

Date: 13[th] July 2022

4 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022

Restricted Unrestricted
Note
£
£
INCOMING RESOURCES
Charitable activities:
Mediation service contracts
2
-
117,539
Other funding
3
-
15,000

TOTAL INCOMING RESOURCES
-
132,539
RESOURCES EXPENDED:
Charitable activities
4
-
110,213
TOTAL RESOURCES EXPENDED 6
-
110,213
NET MOVEMENT IN FUNDS
- 22,326
Transfer between funds
-
-
RECONCILIATION OF FUNDS
TOTAL FUNDS B/FWD
-
56,873
TOTAL FUNDS C/FWD
-
79,199		 2022

Total

£

117,539

15,000

132,539

110,213

110,213

22,326
-
56,873

79,199
 2021
Total
£
49,405
53,546
102,951
80,180
80,180
22,771
-
34,102
56,873

All of the charity’s activities are classified as continuing. Movements on reserves and all recognised gains and losses are shown above.

5 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

SUMMARY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022

Income
Expenditure
OPERATING PROFIT
OTHER INCOME
Business interruption receipt received
NET SURPLUS (DEFICIT) FOR THE
FINANCIAL YEAR		 2022
2021
£
£
127,539102,951
110,213
80,180
17,32622,771
5,000
-
22,326 22,771

6

Company Number: 03672399

SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

BALANCE SHEET AS AT 31[ST] MARCH 2022

Note
FIXED ASSETS
Intangible fixed assets
8
Tangible fixed assets
9
CURRENT ASSETS
Debtors and prepayments
10
Cash at bank and in hand
CREDITORS:amounts falling
due within one year
11
NET CURRENT ASSETS
NET ASSETS
FUNDS
Restricted funds
Unrestricted funds
TOTAL FUNDS
12		 2022
£
18,607
65,008
83,615
8,025
 2021
£
£
-
3,609
3,609
722
55,200
55,922
3,861
75,590
79,199
-
79,199
79,199		 £
-
4,812
4,812
52,061
56,873
-
56,873
56,873

The trustees are satisfied that the charity is entitled to the exemptions from the provisions of the Companies Act 2006 (the Act) relating to the audit of the accounts for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for:

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the trustees on 13[th] July 2022 and signed on their behalf by:

Mr P Kenyon…………………………………….. Director

7 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022

1. ACCOUNTING POLICIES

a) Statutory information

b) Basis of preparation

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 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

c) Grants

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

d) Incoming resources

Incoming resources are included when receivable.

e) Resources expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

f) Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Equipment 25% reducing balance Freehold property 0% reducing balance

g) Intangible fixed assets

Amortisation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Website

33.33% straight line

8 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

2. CHARITABLE ACTIVTIES

CHARITABLE ACTIVTIES
Restricted Unrestricted Total Funds Total Funds
funds funds 2022 2021
Mediation Services £ £ £ £
Blackburn Diocese - - - 750
Blackburn with Darwen Borough Council - 2,250 2,250 650
Burnley Borough Council - 7,200 7,200 6,000
Calico Housing - 11,850 11,850 15,600
Centrica Plc - 26,150 26,150 -
Chorley Council - 1,950 1,950 650
Colchester Borough Homes - 3,375 3,375 -
Dallam School - 932 932 -
Dudley Council - - - 1,125
Flagship Group - - - 1,125
Self-referral - 240 240 -
Keswick Enterprises - - - 200
Lancashire County Council - 2,280 2,280 720
Manchester City Council - 30,130 30,130 17,410
NHS Foundation Trust - 3,612 3,612 -
Ongo Homes - 2,527 2,527 -
Paradigm Housing Group - 1,125 1,125 -
Pendle Borough Council - 4,000 4,000 -
Pleydell Smithyman Limited - 2,025 2,025 -
Resolve ASB - 7,645 7,645 3,475
SGL Co-Packaging - 400 400 400
Southern Housing Group - 4,500 4,500 -
Spring North - 4,438 4,438 -
St Christopher’s CE High School - 910 910 -
Trafford Housing Trust - - - 1,300
- 117,539 117,539 49,405

3. OTHER FUNDING

OTHER FUNDING
Restricted Unrestricted Total Funds Total Funds
funds funds 2022 2021
£ £ £ £
Grant Funding
Burnley Borough Council Covid Support Grants - - - 11,500
CAF – Resilience Fund - - - 10,000
CAF - - - 2,000
Community Foundation For Lancashire – Covid 19
Support Fund - - - 10,000
Burnley, Pendle & Rossendale CVS – Population
Health Management - - - 6,000
Social Prescribing Programme - - - 4,000
The National Lottery Community Funding - 10,000 10,000 -
Volunteer expenses recharged **- ** **- ** - 46
- 10,000 10,000 53,546
Other Income
Business Interruption Insurance Receipt - 5,000 5,000 -
Total Other Funding - 15,000 15,000 53,546

9 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

4. CHARITABLE ACTIVITIES

5.

Provision of charitable services:
Mediation services
Governance costs
Analysis of provision of charitable services:
Mediation services
Governance costs (note 4)
GOVERNANCE COSTS
Accountancy fees
Sundry expenses		 Restricted
£
-
-
-
Staff costs
£
57,130
-
57,130
Restricted
£
-
-
-		 Unrestricted
£
107,867
2,346
110,213
Other costs
£
50,737
2,346
53,083
Unrestricted
£
1,253
1,093
2,346		 2022
Total
£
107,867
2,346
110,213
2022
Total
£
107,867
2,346
110,213
2022
Total
£
1,253
1,093
2,346		 2021
Total
£
78,298
1,882
80,180

2021
Total
£
78,298
1,882
80,180

2021
Total
£
1,148
734
1,882

10 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

6. TOTAL RESOURCES EXPENDED

Staff costs Other costs
£
£
Direct charitable expenditure
57,130
50,737
Governance costs
-
2,346
57,130
53,083
Other costs:
Cost of delivering services
Premises
Training and conference costs
Office costs
Legal and professional
Other
The aggregate payroll costs were:
Salaries and wages
Social security costs
Pension
The average number of staff employed by the charity
(including directors) during the year was:
Management and administration
Provision of charitable services		 2022
Total
£
107,867
2,346
110,213
2,703
1,856
28,780
4,281
6,241
9,222
53,083
2022
Total
£
53,232
3,461
437
57,130
1
2
3		 2021
Total
£
78,298
1,882
80,180

2,965
1,286
11,659
2,795
5,391
2,994
27,090

2021
Total
£
49,676
3,026
388
53,090

1
2
3

There were no trustees' remuneration or other benefits for the year ended 31[st] March 2022 nor for the year ended 31[st] March 2021.

No employee during the year received emoluments in excess of £60,000.

7. NET INCOME/EXPENDITURE FOR YEAR

The operating surplus/(deficit) is stated after charging:

Depreciation 2022
£
1,203		 2021
£
539

11 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31[ST] MARCH 2022

8.
INTANGIBLE FIXED ASSETS
Cost
As at 1stApril 2021
As at 31stMarch 2022
Amortisation
As at 1stApril 2021
Charges for the year
As at 31stMarch 2022
Written Down Value
As at 31stMarch 2022
As at 31stMarch 2021
9.
TANGIBLE FIXED ASSETS
Cost
As at 1stApril 2021
As at 31stMarch 2022
Depreciation
As at 1stApril 2021
Charges for the year
As at 31stMarch 2022
Written Down Value
As at 31stMarch 2022
As at 31stMarch 2021
10.
DEBTORS
Debtors
Prepayments and accrued income
11.
CREDITORS
Creditors
Accruals		 Website
£
1,920
1,920
1,920
-
1,920
-
-
Freehold
Property Equipment
£
£
1
48,820
1
48,820
-
44,009
-
1,203
-
45,212
1
3,608
1
4,811
2022
£

15,007
3,600
18,607
2022
£

7,185
840

8,025

3,861

12

SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022

12. ANALYSIS OF CHARITABLE FUNDS

Restricted funds
Unrestricted funds		 Fixed
assets
£

-
3,609
3,609		 Other
net assets Total
£
£
-
-
75,590 79,199
75,590 79,199

13. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and does not have a share capital. The liability of each member by way of their guarantee to the company is to contribute a sum not exceeding £10 to the assets of the company if so required on the winding up of the company.

13 SMILE MEDIATION LIMITED (A COMPANY LIMITED BY GUARANTEE)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022

INCOME
Mediation Service Contracts
Grant funding
Other income
EXPENDITURE
Costs of delivering services
Rent and rates
Salaries and subcontractors
Travelling expenses
Work from home expenses

Printing, postage and stationery
Training and conference expenses
Accountancy
Legal and professional
Insurances
Telephone and fax
Subscriptions
Equipment depreciation
Sundry expenses
SURPLUS /(DEFICIT) FOR THE YEAR		 2022
£
£
117,539
10,000
5,000
132,539
2,703
669
62,742
789
525
1,467
28,780
1,253
4,988
1,187
1,693
1,121
1,203
1,093
110,213
22,326		 2021
£
49,405
53,500
46
2,965
43
53,090
281
1,440
663
11,659
1,148
4,243
1,242
1,454
678
539
735
 £
102,951
80,180
22,771