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2020-10-31-accounts

Smart Choices Trustees’ Annual Report and Financial Statements For the year ended 31 October 2020

Registered charity number 1156974

Contents

Trustees’ annual report 3
Review of the year to 31 October 2020 3
Financial commentary 6
Reference and administrative information 8
Financial statements 11
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

2

Review of November 2019 to October 2020

Charitable Benefit

Smart Choices promotes the safety and wellbeing of young people and shows them how to be in control of their emotions. Our aim is to empower them to make choices that avoid conflict. We want to help our young people to be emotionally resilient and know how to form healthy relationships. We want them to be wise and considerate in their decision-making and become responsible citizens who fulfil their potential. Our focussed programmes and resources are provided in school, alternative education settings, youth engagement organisations and Youth Offending services with the aim of helping to break the cycle of youth violence.

The charity was founded in 2009 by Barry and Margaret Mizen MBE’s after the murder of their son Jimmy. During 2019 the Mizen family decided to continue their work independently from the charity and negotiations to complete the separation process were completed in March 2020. Lydia Davis was recruited and hired as our new CEO to help lead the Charity through this transition.

The rebranding of the charity was completed in April 2020.

Smart Choices has a small, dedicated professional staff team who ensure that the services are provided safely and in accordance with the policies agreed by the Trustees and that funds are available to continue the work of the charity.

Our funding comes from several sources including, but not limited to, donations from individuals, grants from trusts, foundations, corporates and statutory sources. We are very grateful for the financial support received from so many individuals, grant making trusts and foundations and from statutory authorities. Without committed and sustainable support we would not be able to provide our much needed services to so many ‘at risk’ young people in our society.

The Trustees review the aims, objectives and activities of the charity each year. This report explains what has been achieved and the outcomes of our work between November 2019 and October 2020.

The Trustees report the success of each key activity and the benefits the charity has brought to the young people that it seeks to support. The review ensures the charity's aims, objectives, and activities remain focused on its stated purpose. The Trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees considered how planned activities will contribute to the aims and objectives that have been set.

Review of the year

Trustees review the aims, objectives and activities of the charity each year and this report explains what has been achieved and the outcomes between 1 November 2019 and 31 October 2020.

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

3

Our service includes:

The health and mental wellbeing of children and young people have been directly affected by COVID-19 lockdowns, self-isolation, and uncertainty as to the future and whether the virus will be beaten. Understandably, this has led to high levels of stress, anxiety, fear, behavioural issues and dysfunction at home and at school. To help address this, we designed a COVID survival kit / tool kit for emotional wellbeing based on Mental Health First Aid, NLP, and CBT techniques, which we offer to parents, teachers, Youth Offending Services, support workers and young people.

Throughout 2020 the Covid-19 pandemic has had a significant effect on our income and therefore our ability to provide our services to the numbers of young people we had aimed to reach.

In June 2020 we were fortunate to receive a further one year funding from MOPAC (Mayors Office for Police and Crime) which will enable us to initially work with approx. 420 young people. We have also been given additional funding by MOPAC to work with schools and their communities, to support the reintegration and reengagement of children and young people during the COVID-19 pandemic.

During the summer of 2020 we provided a successful series of remote interventions to young people from the Newham Youth Offending service who had become part of the criminal justice system. We worked with 20 young people, aged between 12 and 17 years of age and the feedback from Newham was outstanding.

We provided our programmes to years four, five and six in seven schools. Teachers identified specific children who would benefit from the programmes based on their needs and behaviours. Programmes were provided both on line and face to face and reached 200 young people.

As a result of taking part in our programmes, young people had:

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

4

Plans from 1 November 2020 to 31 October 2021

As our income levels have been reduced due to COVID, the focus for 2020/2021 will be to develop and refine our fundraising strategy to mitigate the uncertainty that the pandemic has caused. We intend to achieve our medium/long term aim to expand our services to cover the whole of the UK. During 2020/2021 we will complete the provision of programmes funded by the MOPAC funding and aim to work with six schools and 300 young people.

Bill Griffiths CBE BEM QPM Chair of Trustees Smart Choices

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

5

Financial Commentary for the year to 31 October 2020

In common with many other charities, Smart Choices has been significantly impacted by the COVID-19 pandemic, and the financial results for the year to 31 October 2020 demonstrate this The Charity’s net movement in funds was a reduction of £60,394 (2018-19: an increase of £32,984), partly due to reductions in income as the Charity continued on its new path following the transition from For Jimmy to Smart Choices, and also as the result of a write-off of amounts owed by our remaining subsidiary organisation, of £45,385.

Income for the year has decreased from £493,902 in 2018-19 to £192,288, a decrease of 61%. This has been caused largely by the full-year impact of the change to Smart Choices, and the cessation of some fundraising activities. The Charity’s donation income has slightly increased since 2018-19 due to a one-off donation received this year, though the overall income position is significantly lower than in 2019. Funding in respect of our charitable activities remains the main source of income for the Charity and has been key to funding our charitable work in 2020. The drop in income in 2019-20 demonstrates the challenges the Trustees and management have faced in continuing Smart Choices’ work this year, during a time when schools, the primary audience for our work, were suspended or meeting remotely during the national lockdowns.

Expenditure for the year has decreased from £460,918 to £207,297, a decrease of 55%. This is reflective of the decisions to curtail Smart Choices’ activity, as a result of the pandemic and the reductions in funding. In 2019-20, the Charity significantly reduced the headcount and made some staff redundant, resulting in a drop in staff costs from £332,237 in 2018-19 to £169,972 in 2019-20, a drop of 49%, and one-off redundancy costs of £2,888. The Charity’s non-staff costs on direct charitable activities fell from £72,726 to £14,486, as a result of lower levels of activity. The Charity also closed its permanent offices, with a resulting decrease in office costs, from £31,104 in 2018-19 to £11,720 in 2019-20.

When taken together, the fall in income was not matched by the reduction in expenditure, and the Charity recorded a deficit of £15,009 for 2019-20, before inclusion of other recognised gains and losses.

During the year, the Trustees made the decision to write off balances owed by a subsidiary organisation, Good Hope Festivals Limited. Good Hope Festivals Ltd was a company set up to manage and hold a licence to put on a festival on Blackheath Common in London. During the year, Trustees determined that in the current environment it is highly unlikely that such a festival would be able to take place, and consequently, Good Hope Festivals Ltd would cease operations. The Charity was owed £45,285 in loans and the held £100 in investments in respect of the share capital of the company. Both of these amounts have been written off in these financial statements.

As a result of the challenging circumstances of 2020, the balance sheet has been hard-hit, and net assets have reduced from £80,745 to £20,352. Within this, cash balances have decreased by £44,663, to £8,698. Both debtors and creditors have reduced in line with reductions in expenditure and income. The net asset position remains wholly represented by unrestricted reserves.

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

Remuneration policy

An important pay principle in Smart Choices’ pay policies is that our salaries and benefits should be proportionate to the complexity of role responsibilities, in line with our charitable objectives and competitive within the UK charity sector. We aim to pay around the median for similar roles in similar organisations but not compete on salaries within the public or private sectors. To help us achieve this we monitor charity sector pay trends through available reputable sources such as Harris Hill Salary Survey.

Going concern:

As set out in Note 1 to the financial statements, the Trustees have identified material uncertainty around the ability of Smart Choices to continue in operation for the foreseeable future. The impact of the COVID-19 pandemic on the Charity in 2019-20 has caused significant disruption to the Charity’s income and activities, due to the periods of national lockdown. This has also led to uncertainty around the future of the charity and to delays in the finalisation of the accounts, as the Trustees used the general extension to filing deadlines offered by the Charity Commission to attempt to resolve the uncertainties.

Reserves Policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three months’ general fund expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This would mean holding reserve funds of approximately £48,000, or 25% of incoming resources for the year.

As at 31 October 2020, unrestricted reserves are £20,351. The onset of the COVID-19 pandemic has presented an unprecedented drain on reserves. As noted above and in Note 1 to the accounts, the trustees have highlighted the material uncertainty around the Charity’s ability to continue as a going concern.

Risk management

The trustees have a risk management approach which comprises:

This work has identified that financial sustainability is the major financial risk for both the charity and its subsidiary. A key element in the management of financial risk is a regular review of cashflow forecasts to ensure obligations will be met as they fall due, and active management of trade debtors and creditors balances to ensure sufficient working capital by the CIO.

Attention has also been focussed on non-financial risks arising from safeguarding of young people. These risks are managed having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

7

Reference and Administrative Information

Charity number: 1156974

Registered office and operational address: 40 Cambridge Drive, London, SE12 8AJ

Previous name: The Jimmy Mizen Foundation (1130228)

Country of registration: England & Wales

Trustees who served during the year and up to the date of this report were as follows:

Bill Griffiths CBE BEM QPM, Chair Kerry Nickols, Vice Chair Wendy Phillips (Resigned 2 December 2019) Gethin Davies Knapp Kabba Njie

Bankers: CAF Bank Ltd , 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

8

Structure, Governance and Management

Smart Choices is a registered Charitable Incorporated Organisation (CIO), charity number 1156974. Day to day management of the charity is delegated by the trustees to the CEO.

Our Trustee Board includes two honorary positions of Chair and Vice Chair. The Board meets at least four times a year.

Appointment of Trustees

Any person who is willing to act as a trustee, and who would not be disqualified under the terms of the constitution, may be appointed a trustee by a decision of the trustees. Each trustee shall retire from office at the third Annual Retirement Meeting following the commencement of his or her term of office. The Annual Retirement Meeting shall be the meeting of the trustees at which the accounts of the CIO are adopted. Retiring Trustees may be reappointed, but a trustee who has served for two consecutive terms must take a break from office for at least one year. There must be a minimum of three trustees and a maximum of twelve.

All trustees are subject to DBS check and sign a declaration of eligibility before being appointed to the Board of Smart Choices. All potential trustees are sent a declaration of eligibility, an agreement to Smart Choices’ policy, CC3 and code of good practice, Smart Choices’ constitution and the Committee’s Terms of Reference. Their induction is organised by the Chair and by the CEO.

Statement of responsibilities of the trustees

The trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 charity and the group and of the incoming resources and application of resources of Smart Choices for that period. In preparing these financial statements giving a trust and fair view, the trustees should follow best practice and:

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Bill Griffiths CBE BEM QPM

Chair of Trustees Smart Choices

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2020

10

Statement of financial activities

For the year ended 31 October 2020

Unrestricted
Note
£
Income from:
2
82,405
Other fundraising activities
2,841
Trading activities
3,232
Charitable activities
3
103,810
Total income
192,288
Expenditure on:
1,719
Trading activities
8,231
197,347
Governance costs
-
Total expenditure
4
207,297
5
(15,009)
12
-
(15,009)
(45,385)
Net movement in funds
(60,394)
Reconciliation of funds
Total funds brought forward
80,745
12
20,351
Donations and legacies
Raising funds
Charitable activities
Net income / (expenditure)
for the year
Transfers between funds
Net movement in funds
Write off of intercompany
balances
Other recognised gains and
losses
Total funds carried forward		 Unrestricted
Note
£
Income from:
2
82,405
Other fundraising activities
2,841
Trading activities
3,232
Charitable activities
3
103,810
Total income
192,288
Expenditure on:
1,719
Trading activities
8,231
197,347
Governance costs
-
Total expenditure
4
207,297
5
(15,009)
12
-
(15,009)
(45,385)
Net movement in funds
(60,394)
Reconciliation of funds
Total funds brought forward
80,745
12
20,351
Donations and legacies
Raising funds
Charitable activities
Net income / (expenditure)
for the year
Transfers between funds
Net movement in funds
Write off of intercompany
balances
Other recognised gains and
losses
Total funds carried forward		 2020
Total
£
82,405
2,841
3,232
103,810		 Restricted
£
-
-
-
316,275		 Unrestricted
£
57,798
67,140
14,439
38,250		 2019
Total
£
57,798
67,140
14,439
354,525
192,288 192,288 316,275 177,627 493,902
1,719
8,231
197,347		 1,719
8,231
197,347		 -
-
316,275		 15,962
18,851
109,830		 15,962
18,851
426,105
- - - - -
207,297 207,297 316,275 144,643 460,918
(15,009)
-		 (15,009)
-		 -
(17,278)		 32,984
17,278		 32,984
-
(15,009)
(45,385)		 (15,009)
(45,385)		 (17,278)
-		 50,262
-		 32,984
-
(60,394) (60,394) (17,278) 50,262 32,984
80,745 80,745 17,278 30,483 47,761
20,351 - 80,745 80,745

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Restricted funds are disclosed in Note 12 to the financial statements.

Smart Choices

11

Trustees' annual report and financial statements for the year ended 31 October 2020

Balance sheet

As at 31 October 2020

Note
£
£
Fixed assets
Tangible fixed assets
7
-
Investments
8
-
Total fixed assets
-
Current assets
Debtors
9
34,476
Cash at bank and in hand
8,697
Total current assets
43,173
Liabilities
Creditors: amounts falling due within one year
10
(22,822)
Net current assets
20,351
Total assets less current liabilities
20,351
Net assets
11
20,351
Funds
12
Restricted funds
-
Unrestricted funds
General funds
20,351
Total charity funds
20,351
2020		 2019
£
-
100
100
56,043
53,361
109,404
(28,760)
80,645
80,745
80,745
-
80,745
80,745

Approved by the trustees on 6 January 2023 and signed on their behalf by

Bill Griffiths CBE BEM QPM

Chair of Trustees Smart Choices

Smart Choices

12

Trustees' annual report and financial statements for the year ended 31 October 2020

Statement of cash flows

Statement of cash flows
For the year ended 31 October 2020
Note
a
a
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Impairment of investments
Net cash provided by / (used in) operating activities
Reconciliation of net income / (expenditure) to net cash provided by
/ (used in) operating activities

Cash flows from operating activities
Net cash provided by / (used in) operating activities
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year		 2020
£
(44,665)		 2019
£
7,205
(44,665)
53,362		 7,205
46,157
8,697 53,362
2020
£
(60,394)
21,567
(5,938)
100		 2019
£
32,984
14,813
(40,592)
-
(44,665) 7,205

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Trustees' annual report and financial statements for the year ended 31 October 2020

Notes to the financial statements

For the year ended 31 October 2020

1. Accounting policies

a) Statutory information

Smart Choices is a charitable incorporated organisation, registered with the Charity Commission of England and Wales.

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) (September 2015).

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

Activities have not been consolidated as the total income of the group is below the threshold for preparing group accounts. Available profits are gift aided to the charity. A summary of the results of the subsidiary is shown in note 8.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The Trustees have reviewed the financial position of the charity, including forecast cash flows, liquidity position and existing and potential funding commitments at the end of the 2019 financial year. Whilst acknowledging challenges with funding from grants at the time, the charity introduced some diversification to its income stream whilst continuing to closely monitor planned expenditure for the coming year, and the Trustees will only agree to commit to fund charitable activities when they are confident that these obligations can be met. Unfortunately, the outbreak of the COVID-19 pandemic earlier in 2020 had a significant impact on outstanding grant applications in the pipeline severely hindering the charity's ability to raise funds. As a consequence, the Trustees believe that, given the huge effects of the COVID-19 pandemic on the charity's income and low level of reserves available, there will not be adequate resources to continue in operation for the foreseeable future and consider that there are material uncertainties about the charity's ability to continue as a going concern.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Grants are credited to the Statement of Financial Activities in the year in which the charity becomes entitled to them.

Income from charitable activities as well as fundraising and sponsorship is recognised in the period to which it relates.

Smart Choices Trustees' annual report and financial statements for the year ended 31 October 2020

14

1. Accounting policies (continued)

f) Expenditure

Liabilities and related expenditure are recognised in full in the financial statements as soon as an obligation arises.

Costs of generating funds include fundraising expenses.

Charitable activities relate to the cost of providing support to different youth organisations and providing resources for young people and have been allocated directly to functional headings as shown in the Statements of Financial Activities, and also note 4 to the accounts.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include independent examination fees, legal and professional fees and bank charges.

The support costs are costs which are required to run the charity on a day to day basis, they consist of office costs and staff travel, training and governance.

g) Tangible fixed assets and depreciation

Tangible fixed assets are stated as cost less depreciation and the threshold for capitalisation is £500. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery 33% Straight Line Fixtures, fittings and equipment 20% Straight Line Motor vehicles 25% Straight Line

h) Investments

Fixed asset investments are stated at cost less any provision for impairment.

i) Taxation

The charity is not subject to Corporation Tax or other taxes on income and gains arising from its charitable objectives.

j) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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15

Trustees' annual report and financial statements for the year ended 31 October 2020

2. Donations and legacies

Donations and legacies Donations and legacies
General Donations
21 Bridges Donations
Charity of the year awards
Corporate Donation
Gift Aid
Total
All donations and legacies are unrestricted
Restricted
£
-
-
Grants to support training
-
Grants to support peer support
-
Grants to Support safe havens
-
Grants to support core costs
-
Grants to support Hub project
-
Grants -other
-
Total
-
Restricted
£
-
-
Grants to support training
15,899
Grants to support peer support
-
Grants to Support safe havens
-
Grants to support core costs
-
Grants to support Hub project
-
Grants -other
300,376
Total
316,275
School Visits
Grants to support Young Citizens
Income from charitable activities
School Visits
Grants to support Young Citizens		 £
-
-
-
-
-
-
-
103,810
Unrestricted		 2020
Total
£
30,203
-
-
52,202
-		 2019
Total
£
43,937
-
-
13,861
-
82,405 57,798
2020
Total
£
-
-
-
-
-
-
-
103,810
- 103,810 103,810
Restricted
£
-
-
15,899
-
-
-
-
300,376		 £
-
-
-
-
-
-
-
38,250
Unrestricted		 2019
Total
£
-
-
15,899
-
-
-
-
338,626
316,275 38,250 354,525

3. Income from charitable activities

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16

Trustees' annual report and financial statements for the year ended 31 October 2020

4. Analysis of expenditure

Raising funds
Trading activities
Cost of trading
Charitable activities
Activities undertaken directly
Support Costs
Office costs
Recruitment expenses
Redundancy Pay
Total charitable expenditure
Total expenditure
Raising funds
Trading activities
Cost of trading
Charitable activities
Activities undertaken directly
Support Costs
Office costs
Recruitment expenses
Redundancy Pay
Total charitable expenditure
Total expenditure
Cost of generating funds
Cost of generating funds		 Staff costs
(note 6)
£
1,719
-
168,253
-
-
-		 Other costs
£
-
8,231
14,486
11,720
-
2,888		 Allocation of
governance
costs
£
-
-
-
-
-
-		 £
1,719
8,231
182,739
11,720
-
2,888
2020
168,253 29,094 - 197,347
169,972 37,325 - 207,297
Staff costs
£
15,962
-
316,275
-
-
-		 Other costs
£
-
18,851
72,726
31,104
6,000
-		 Allocation of
governance
costs
£
-
-
-
-
-
-		 2019
£
15,962
18,851
389,001
31,104
6,000
-
316,275 109,830 - 426,105
332,237 128,681 - 460,918

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17

Trustees' annual report and financial statements for the year ended 31 October 2020

5. Net income / (expenditure) for the year

This is stated after charging:

Depreciation
Other
Independent examiner's remuneration:
Operating lease rentals
Property		 2020
£
-
-
-
-		 2019
£
-
-
-
-

6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages
Social security costs		 2020
£
155,573
14,399		 2019
£
309,517
22,720
169,972 332,237

No employee earned more than £60,000 during the period.

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £52,048 (2019: £50,628).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil). No expenses were reimbursed to trustees during the year (2019: £nil).

The average weekly number of employees during the period was as follows:

Total employees 2020
No.
9.8		 2019
No.
9.8

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18

Trustees' annual report and financial statements for the year ended 31 October 2020

7. Tangible fixed assets

Cost
At the start of the period
Additions
At the end of the period
Depreciation
At the start of the period
Charge for the period
At the end of the year
Net book value
At the end of the period
At the start of the period
Fixed assets investments
Cost at 1 November 2015
Acquisitions at cost
Impairment
Shares in subsidiary companies		 Plant and
machinery
£
2,524
-		 Fixtures,
fittings and
equipment
£
687
-		 Motor
vehicles
£
18,250
-		 Total
£
21,461
-
2,524 687 18,250 21,461
2,524
-		 687
-		 18,250
-		 21,461
-
2,524 687 18,250 21,461
- - - -
- - - -
2020
£
100
-
(100)		 2019
£
100
-
-
- 100

8. Fixed assets investments

Holdings of more than 20%

The charity held more than 20% of the control of the following entities:

The Cafe of Good Hope 100 % of ordinary share capital Good Hope Festivals Limited 100 % of ordinary share capital

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Trustees' annual report and financial statements for the year ended 31 October 2020

8. Fixed assets investments (continued)

For Jimmy owns the whole of the issued ordinary share capital of The Cafe of Good Hope, a company registered in England. The subsidiary is used for non-primary purpose trading activities. Activities have not been consolidated as the total income of the group is below the threshold for preparing group accounts. There were no profits available to gift aid to the charity in year.

The Cafe of Good Hope has experienced financial difficulties In recent years, and in light of these results, and in the context of a purchase offer having been made, the charity Trustees as members of the Company pursued a sale of the susbsidiary in early 2019. When this was unsuccessful, they resolved in May 2019 to cease trading and voluntarily wind up the company. BM Advisory are providing liquidation services for a process of CVL and this was completed in December 2020. There are no material realisable assets in the Company. The Charity fully impaired its investments in The Cafe of Good Hope Limited during 2017-18.

Financial statements are not available for the company for 2019 or 2020.

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Trustees' annual report and financial statements for the year ended 31 October 2020

8. Fixed assets investments (continued)

Smart Choices owns the whole of the issued ordinary share capital of Good Hope Festivals Limited, a company registered in England. The company is now dormant and there was no trading in the year. Previously, the subsidiary was used for non-primary purpose trading activities. Activities have not been consolidated as the total income of the group was below the threshold for preparing group accounts. There were no profits available to gift aid to the charity in year.

The subsidiary is in possession of a festival licence for an annual event on Blackheath. During the year, Trustees determined that in the current environment it is highly unlikely that such a festival would be able to take place, and consequently, the Charity has fully impaired its investment in Good Hope Festivals Limited.

A summary of the results of the subsidiary is shown below:

Turnover
Administrative expenses
Business closure
Profit / (loss) for financial year
The aggregate of the assets, liabilities and funds was:
Called up share capital not paid
Assets
Liabilities
Funds		 2020
£
-
-		 2019
£
-
-
45,385
45,385		 -
-
-
-		 100
4,584
(45,285)
- (40,601)

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Trustees' annual report and financial statements for the year ended 31 October 2020

9. Debtors

Amounts owed by connected undertakings
Other debtors		 2020
£
-
34,476		 2019
£
45,284
10,759
34,476 56,043

10. Creditors: amounts falling due within one year

Taxation and social security
Other creditors
Accruals
Social Investment Business loan		 2020
£
14,321
-
6,169
2,332		 2019
£
3,968
8,912
12,238
3,642
22,822 28,760

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Trustees' annual report and financial statements for the year ended 31 October 2020

11a Analysis of net assets between funds (current year)

11a Analysis of net assets between funds (current year)
Investments
Net current assets
Long term creditors
Net assets at the end of the year
11b Analysis of net assets between funds (prior year)
Investments
Net current assets
Long term creditors
Net assets at the end of the year		 Restricted
funds
£
-
-		 £
-
20,351
-
Unrestricted
funds		 Total funds
£
-
20,351
-
- 20,351 20,351
Restricted
funds
£
-
-		 £
100
80,645
-
Unrestricted
funds		 Total funds
£
100
80,645
-
- 80,745 80,745

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Trustees' annual report and financial statements for the year ended 31 October 2020

12a Restricted funds (current year)

Restricted funds
Total restricted funds
Unrestricted funds
General funds
12b Restricted funds (prior year)
Restricted funds
The Tallow Chandlers' Company
The Henry Smith Charity
Ironmongers Company
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds
Total unrestricted funds
Total funds		 At the
start of
the
period
£
-
-
80,745
80,745
80,745
At the
start of
the
period
£
10,000
2,709
4,569
17,278
30,483
30,483
47,761		 £
-
Income		 £
-
Expenditure		 £
-
Transfers		 At the end
of the
period
£
-
- - - -
192,288 (252,682) - 20,351
192,288 (252,682) - 20,351
192,288 (252,682) - 20,351
£
Income		 £
Expenditure		 £
(10,000)
(2,709)
(4,569)
Transfers		 At the end
of the
period
£
-
- - (17,278) -
177,627 (144,643) 17,278 80,745
177,627 (144,643) 17,278 80,745
177,627 (144,643) - 80,745

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Trustees' annual report and financial statements for the year ended 31 October 2020

12c Purposes of restricted funds

The Henry Smith Charity- A fund for running school programmes.

13. Related parties

The charity provides working capital to fund the activities of its three wholly owned subsidiary companies. During the year, the Charity wrote off receivable balances of £45,285 due from Good Hope Festivals Limited, as the trustees no longer consider it to be recoverable. The Charity holds no other receivables from related parties.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

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Trustees' annual report and financial statements for the year ended 31 October 2020