**Charity number: 1112972**
## **THE SHOE ZONE TRUST**
**Unaudited annual report**
**Year ended 31 December 2022**
## **THE SHOE ZONE TRUST**
|**CONTENTS**||
|---|---|
||**Page**|
|Reference and administrative details of the Charity|1|
|Report of the Trustees|2|
|Independent Examiner’s Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Statement of Cash Flows|7|
|Notes to the Financial Statements|8|
The Shoe Zone Trust
## REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY
**Trustees** Mr A Smith Mr C Smith **Registered office** The Shoe Zone Trust Haramead Business Centre Humberstone Road Leicester LE1 2LH **Registered charity number** 1112972 **Bankers** HSBC 2-6 Gallowtree Gate Leicester LE1 1DA NatWest 1 Granby Street Leicester LE1 9GT **Independent Examiner** Glen Bott FCA Cooper Parry Group Limited Cubo Birmingham Office 401 4[th] Floor 2 Chamberlain Square Birmingham B3 3AX
1
**THE SHOE ZONE TRUST**
## **REPORT OF THE TRUSTEES**
The Trustees have pleasure in presenting their report and the financial statements for the Charity for the year ended 31 December 2022. The Trustees confirm that the report and financial statements of the Trust comply with the Charities Act 2011, the requirements of the Foundation’s governing documents and the provisions of the Statement of Recommended Practice (“ **SORP** ”) “Accounting and Reporting by Charities”, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
## **Constitution of the Charity**
The Shoe Zone Trust is registered with the Charity Commission for England and Wales as an Unincorporated Charity with the governing document of a declaration of trust dated 1 November 2005. The Charity is administered by the Trustees listed on Page 1. All of them served throughout the year. The Trustees meet at least quarterly.
## **Method of appointment or election of Trustees**
The management of the Trust is the responsibility of the Trustees, Charles Smith and Anthony Smith. It is intended that the Trust’s board of trustees should consist of at least two, but no greater than three, members.
## **Objectives of the Charity**
The objectives of the Charity are to make grants and donations to other charities to relieve financial hardship and poverty and/or advancement of education, mainly for children and young persons under age 18 particularly in Leicestershire and Rutland and for certain charities operating in the Philippines and other countries. This is reflected in the range of organisations that benefit from grants and donations given by the Trust, most of which have long standing relationships.
The Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.
The Charity does not carry out any fundraising activities.
## **Achievements and Performance**
In the year to 31 December 2022, the Trust made grants and donations totalling £314,208 (2021: £237,588). The largest donation of £61,080 was made to the Shepherd of the Hills in the Philippines, whose aim is to benefit underprivileged children who have been abandoned, neglected or abused. Other significant donations were made to the Ukraine war charities, Miracle Feet who aim to increase access to treatment for children born with clubfoot and Amantani who help young school leavers in Peru who don’t have access to higher education.
## **Financial Review**
Income of £671,869 (split unrestricted £648,020, restricted £23,849) was received. Grants and donations of £314,208 were paid. Funds carried forward are £810,996 (unrestricted £807,423, restricted £3,573). 2021 total funds carried forward £453,335 (unrestricted £449,762, restricted £3,573).
No salaries or expenses were paid to the Trustees.
## **Reserves Policy**
The Trust does not currently have a reserves policy. As Shoe Zone Retail Limited provides the Trust with annual funding, and the Trustees regularly review the balance available to them, including any anticipated future grants to be considered and other costs, a reserves policy is not considered necessary.
The unrestricted funds are £807,423. These were retained for commitments for grants in 2023.
2
THE SHOE ZONE TRUST
REPORT OF THE TRUSTEES
Rlsk Factorg
The Trustees regularty review the rroior risks towhich the Charity is exposed, in particular those related
to the operations and finances of the Trust. and are satisfied that systewts and procedures are in place
to mitigale exposure. Major risks thal the Trustees have considered and have taken steps lo mitigate
include having a robust assessment and mOnrtIng polry. including regular updates with the charities,
to ensure that grants made are for work whth is considered Chtable.
Plans for future perlods
The Trustees continue to mainlain the atTr)unt of fijnds rt has available annually for gr3nl distribub'on.
The Twstees will continue to review the Trusys work during the cnffing year and continue lo offer grants
based on decisions made by the Trustees.
Stalement of Trustees Responsibllitles
Trustees are responsible fof preparing a Truslees. Annual Report and financial statements in
accordance with applicable law and United Kingdom Accounbng Standards (United Kingdom Generally
A¢¢epted A¢counling Practice).
The law appluble to Charities in EngLgnd and WaS requires charity truslees lo prepare financial
statements for each year which gNe a true and fair view of the slate of affairs of the charity and of the
incoming resources and apicatiOn of resources. of the charity for that period. In preparing the financial
slalements. the trustees are required to..
se1 suitable accounting polie$ and then appty them consistently,.
observe the methods ané prinGiples in the aprb charit$ SORP.,
make judgements and esbmates that are reasonable prudent.,
slate whether applicable aCCn'n9 standar(Is have been followed, subj-ect to any material
departures that musl be disclosed and expLained in the financial statements.. and
prepare the finala1 statements on the going conrn basis unless il is inapprOpr?1e to
presume that the charity will continue in business.
Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy
al any time the financial position of the FourKlab'on and lo enable them to ensure that the financial
slalements compty with the Charib'es Act 2011. the applicable Charilies (Accounts and Reports)
Regulations and the provtsions of the Trustdeed. They are also responsible for safeguarding the assets
of the Trust and taking reasonable steps for Ihe prevents'on and detection of fraud and other
irregularities.
This pt was reviewed and aForoved by the Twstees on 25 October 2023 and svJned on their
behalf by:
Charles Smith
**THE SHOE ZONE TRUST**
## **Statement of Financial Activities For the year ended 31 December 2022**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2022 which are set out on pages 5 to 11.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales (ICAEW).
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form 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 is not a matter considered as part of an independent examination.
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.
## **GLEN BOTT FCA**
Cooper Parry Group Limited Cubo Birmingham Office 401 4[th] Floor 2 Chamberlain Square Birmingham B3 3AX Date: 27 October 2023
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## **THE SHOE ZONE TRUST**
## **Statement of Financial Activities For the year ended 31 December 2022**
|**2022**
**2022**
**2022**
**Unrestricted**
**Restricted**
**Total**
**Notes**
**£**
**£**
**£**
**INCOME FROM**
**Shoe Zone Retail Ltd**
**Donations**
**Interest**
3
2
646,880
-
1,140
-
23,849
-
646,880
23,849
1,140
**TOTAL INCOME**
648,020
23,849
671,869
**EXPENDITURE ON**
**Direct charitable giving**
4
290,359
23,849
314,208
**TOTAL EXPENDITURE**
290,359
23,849
314,208
**NET MOVEMENT IN FUNDS**
357,661
-
357,661
**FUNDS BROUGHT FORWARD**
449,762
3,573
453,335
_______
**FUNDS CARRIED FORWARD**
807,423
3,573
810,996
_______
|**Restated**
**2021**
**Total**
**£**
433,776
2,490
13
436,279
237,588
237,588
198,691
254,644
_______
453,335
_______|
|---|---|
**The notes on pages 8 to 11 form part of these financial statements.**
5
THE SHOE ZONE TRUST
Balance Shfjet
As at 31 December 2022
Restated
2021
2022
CURRENT ASSETS
Debtors
Cash al bank
116.411
336.924
810,9
NET AND CURRENT ASSETS
810,9
453.335
CHARiff FUNDS
Unrestricted funds
Reslncled funds
807.423
3,573
449.762
3.573
TOTAL FUNDS
810,996
463,335
The financial statements were approved by the Twslees on 25 October 2023 and sKJned on their
behaff by..
Charles Smith
The notes on pages 8 to 11 fom part of these financial stalemenls.
## **THE SHOE ZONE TRUST**
## **Statement of Cash Flows For the year ended 31 December 2022**
|**2022**
**Notes**
**£**
**Cash flows from operating activities:**
Net cash provided by operating activities
474,072
**Net cash provided by operating activities**
474,072
**Change in cash and cash equivalents in the year**
474,072
Cash and cash equivalents at the beginning of the
year
336,924
**Cash and cash equivalents at the end of the year**
810,996
1
**RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING**
**2022**
**£**
Net incoming resources
357,661
Decrease in debtors
116,411
**Net cash inflow from operating activities**
474,072
2
**ANALYSIS OF CHANGES IN NET FUNDS**
At 1 January
2022
Cash flow
£
£
**Net cash**
Cash at bank
336,924
474,072
**Total**
336,924
474,072||**2021**
**£**
82,280
82,280
82,280
254,644
336,924
**ACTIVITIES**
**2021**
**£**
198,691
(116,411)
82,280
At 31 December
2022
£
810,996|
|---|---|---|
||||
||||
||||
|||810,996|
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**THE SHOE ZONE TRUST**
## **Notes to the Financial Statements**
**For the year ended 31 December 2022**
## **1. ACCOUNTING POLICIES**
## **1.1 Basis of preparation of financial statement**
The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities”, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and applicable regulations.
The accounts have been prepared under the historical cost convention with items recognised as cost or transaction value unless otherwise stated in the relevant note(s) to the accounts.
The trust constitutes a public benefit entity as defined by FRS 102.
## **1.2 Fund accounting**
The unrestricted funds are funds which can be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds comprise unexpended balances of donations and grants held on trust for specific purposes.
## **1.3 Incoming resources**
All incoming resources are included in the Statement of Financial Activities when the charity has an entitlement to the funds after any performance conditions have been met. Therefore, the amount can be measured reliably, and the income will probably be received.
## **1.4 Resources expended**
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities, where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, these are accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grant. Where grants are conditional, the grant is only accrued where any unfulfilled conditions are outside the charity’s control.
## **1.5 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the financial statements.
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## **THE SHOE ZONE TRUST**
## **Notes to the Financial Statements For the year ended 31 December 2022**
## **2. Donations**
||**Total**|**Total**|
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Rathbones Investment Management Ltd
|20,000
|-|
|Other donations|3,849
|2,490|
||________|_______|
||23,849|2,490|
||________|_______|
|Donations of £23,849 (2021: £2,490) were allocated to restricted funds. Other donations of £3,363|||
|(2021: £nil) were from Shoe Zone Retail Ltd.|||
## **3. Shoe Zone Retail Ltd**
|**3. Shoe Zone Retail Ltd**|||
|---|---|---|
|||**Restated**|
||**Total**|**Total**|
||**2022**|**2021**|
||**£**|**£**|
|Profit Contribution|270,000|189,000|
|Carrier Bag Income|360,142|209,761|
|Charity Change|16,738|35,015|
||_______|_______|
||646,880|433,776|
||**_______**|**_______**|
Donations from Shoe Zone Retail Ltd of £646,880 (2021: £433,776) were allocated to unrestricted funds.
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## **THE SHOE ZONE TRUST**
## **Notes to the Financial Statements For the year ended 31 December 2022**
## **4. Direct Charitable Giving**
|Shepherd of the Hills - Philippines
Ukraine
Miracle Feet
Amantani
Young Leicestershire
Leicester Charity Link
Wishes 4 Kids
500 Miles
Ministries Without Borders - Philippines
Warning Zone
The Menopause Charity
Love for Life
DEC-Pakistan Appeal
CORD
National Emergencies Trust
Other|**Total**
**Total**
**2022**
**2021**
**£**
**£**
61,080
73,588
29,760
-
27,685
-
26,110
17,242
20,550
10,000
20,000
10,000
20,000
10,000
20,000
-
19,555
17,839
15,000
-
10,000
25,000
10,000
-
10,000
-
-
25,000
-
25,000
24,468
23,919|
|---|---|
||314,208
237,588|
Grants of £23,849 (2021: £nil) were allocated to restricted funds. The remaining grants paid out are unrestricted.
## **5. Net Incoming Resources**
During the year, no Trustees received any remuneration. During the year, no Trustees received any benefits in kind. During the year, no Trustees received any reimbursement of expenses.
## **6. Debtors**
|**6. Debtors**|||
|---|---|---|
|||**Restated**|
||**Total**|**Total**|
||**2022**|**2021**|
||**£**|**£**|
|Accrued Income|-|116,411|
||_______|_______|
||-|116,411|
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**THE SHOE ZONE TRUST**
## **Notes to the Financial Statements For the year ended 31 December 2022**
## **7. Prior Year Adjustment**
The carrier bag income recognised in the prior financial year was materially understated by £116,411. This income should have been accrued at 31 December 2021 and was subsequently received in the 31 December 2022 financial year. The prior year income has been restated and a corresponding accrued income debtor included.
The restatement has resulted in an increase in the total funds of the charity at 31 December 2021 of £116,411.
|**8.**
**STATEMENT OF FUNDS**
**Unrestricted funds**
Charity funds
**Restricted funds**
Ukraine appeal
Other|**Restated**
**Brought**
**Forward**
**Incoming**
**resources**
**Resources**
**Expended**
**Carried**
**Forward**
**£**
**£**
**£**
**£**
449,762
648,020
(290,359)
807,423|
|---|---|
||449,762
648,020
(290,359)
807,423|
||-
20,000
(20,000)
-
3,573
3,849
(3,849)
3,573|
||3,573
23,849
(23,849)
3,573|
The £20,000 was received directly from Rathbones to support a Ukrainian family living in the United Kingdom.
## **9. Related Party Transactions**
The Trustees are Directors of Shoe Zone Retail Limited, who made donations in the year of £650,243 (2021: £433,776).
11