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2021-10-31-accounts

Smart Choices Trustees’ Annual Report and Financial Statements For the year ended 31 October 2021

Registered charity number 1156974

Contents

Trustees’ annual report 3
Review of the year to 31 October 2021 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

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Trustees’ annual report and financial statements for the year ended 31 October 2021

Review of November 2020 to October 2021

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.

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 1 November 2020 and 5 July 2021, which is the date the charity ceased operating.

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 period to July 2021

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 5 July 2021.

Our service includes:

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Trustees’ annual report and financial statements for the year ended 31 October 2021

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.

Closure of the Charity

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

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 following COVID-19.

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:

Unfortunately, at the conclusion of the programme in May 2021, we were informed that MOPAC would no longer be funding Smart Choices or similar initiatives. Smart Choices attempted to secure alternative funding from the Youth Endowment Fund, a £50m pot provided by the Home Office. Despite our strenuous best efforts, the bid to continue our work was not successful.

Smart Choices

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Trustees’ annual report and financial statements for the year ended 31 October 2021

Given the lack of funding, and the absence of sufficient reserves to allow the Charity time to secure further funding, the Trustees resolved in June 2021 to cease the operations of the Charity effective from 5 July 2021.

Since the cessation of operations, the trustees have been working to close the charity, though this has been hampered by personal events which have impacted the process. The Trustees are now in a position to be able to perform the final closure activities and finalise the outstanding annual return and financial statements.

Bill Griffiths CBE BEM QPM

Chair of Trustees Smart Choices

Smart Choices

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Trustees’ annual report and financial statements for the year ended 31 October 2021

Financial Commentary for the year to October 2021

In common with many other charities, Smart Choices has been significantly impacted by the COVID-19 pandemic, and the accounts for the year to 31 October 2021 shows the challenging financial situation which has led the Trustees to resolve to close the Charity.

The Charity’s net movement in funds shown in the accounts was an increase of £1,708 (2019-20: a reduction of £60,394).

Income for the year has decreased from £192,288 in 2019-20 to £96,598 a decrease of 50%. As has been noted in the Trustees’ review, this has also reflected the fact that the Charity’s main income sources have ceased in year.

Expenditure for the year has decreased in line with the reductions in income, falling from £207,297 to £94,890, a decrease of 54%. During 2021, the Charity has again had to significantly curtail activities to match reductions in funding, shown in the decrease in staff costs from £169,972 in 2019-20 to £89,309 in 2020-21. Office costs, representing overheads such as corporate subscriptions for key services such as accounting, also fell compared to last year, from £11,720 to £5,581.

As at 31 October 2021, the balance sheet is in a net asset position, and furthermore, cash balances are sufficient to settle all remaining creditors. As in previous years, there are no non-current assets to be realised, and no long-term liabilities to be settled as part of the winding-up process. The net asset position remains comprised of unrestricted reserves.

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 and closure of the Charity:

As set out in Note 1 to the financial statements and elsewhere in this annual return, the Trustees have decided to cease operations effective from 5 July 2021. The impact of the COVID19 pandemic on the Charity in 2019-20 and 2020-21 has caused significant disruption to the Charity’s income and activities, and the failure to secure ongoing funding for the Charity’s work has led to the closure. The accounts have been prepared on this basis.

Risk management

The trustees have a risk management approach which comprises:

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Trustees’ annual report and financial statements for the year ended 31 October 2021

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. The Trustees’ decision to close the Charity has stemmed from these regular reviews.

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.

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Trustees’ annual report and financial statements for the year ended 31 October 2021

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 Gethin Davies Knapp Kabba Njie

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

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Trustees’ annual report and financial statements for the year ended 31 October 2021

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:

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

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Trustees’ annual report and financial statements for the year ended 31 October 2021

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

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Trustees’ annual report and financial statements for the year ended 31 October 2021

Statement of financial activities

For the year ended 31 October 2021

Note
Income from:
2
Other fundraising activities
Trading activities
Charitable activities
3
Total income
Expenditure on:
Trading activities
Total expenditure
4
5
Net movement in funds
Reconciliation of funds
Total funds brought forward
12
Donations and legacies
Raising funds
Charitable activities
Net income / (expenditure) for
the year
Net movement in funds
write off of intercompany
balances
Total funds carried forward
Other recognised gains and
losses
Un-
restricted
£
17,333
-
-
79,265
96,598
-
-
94,890
94,890
1,708
1,708
-
1,708
20,351
22,059
2021
Total
£
17,333
-
-
79,265
96,598
-
-
94,890
94,890
1,708
1,708
-
1,708
20,351
22,059
Un-
restricted
£
82,405
2,841
3,232
103,810
192,288
1,719
8,231
197,347
207,297
(15,009)
(15,009)
(45,385)
(60,394)
80,745
20,351
2020
Total
£
82,405
2,841
3,232
103,810
192,288
1,719
8,231
197,347
207,297
(15,009)
(15,009)
(45,385)
(60,394)
80,745
20,351

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.

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Trustees' annual report and financial statements for the year ended 31 October 2021

Balance sheet

As at 31 October 2021

Note
£
Fixed assets
Tangible fixed assets
7
Investments
8
Total fixed assets
Current assets
Debtors
9
19,149
Cash at bank and in hand
32,908
Total current assets
Liabilities
Creditors: amounts falling due within one year
10
(29,998)
Net current assets
Total assets less current liabilities
Net assets
11
Funds
12
Restricted funds
Unrestricted funds
General funds
Total charity funds
2021
£
-
-
-
52,057
22,059
22,059
22,059
-
22,059
22,059
2020
£
-
-
-
34,476
8,697
43,173
(22,822)
20,351
20,351
20,351
-
20,351
20,351

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

Bill Griffiths CBE BEM QPM

Chair of Trustees Smart Choices

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Trustees' annual report and financial statements for the year ended 31 October 2021

Statement of cash flows

For the year ended 31 October 2021

Note
a
a
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Impairment of investments
Net cash provided by / (used in) operating activities
Net income / (expenditure) for the reporting period (as per the
statement of financial activities)
Cash flows from operating activities
Net cash provided by / (used in) operating activities
Cash and cash equivalents at the end of the period
Change in cash and cash equivalents in the period
Cash and cash equivalents at the beginning of the period
Reconciliation of net income / (expenditure) to net cash provided
by / (used in) operating activities
2021
£
24,899
2020
£
(44,665)
24,899
8,697
(44,665)
53,362
33,596 8,697
2021
£
1,708
15,327
7,864
-
2020
£
(60,394)
21,567
(5,938)
100
24,899 (44,665)

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Trustees' annual report and financial statements for the year ended 31 October 2021

Notes to the financial statements

For the year ended 31 October 2021

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 2021

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.

Smart Choices Trustees' annual report and financial statements for the year ended 31 October 2021

15

2. Donations and legacies

Donations and legacies
General Donations
21 Bridges Donations
Charity of the year awards
Corporate Donation
Gift Aid
Total
2021
Total
£
3,472
-
-
13,861
-
2020
Total
£
30,203
-
-
52,202
-
17,333 82,405

All donations and legacies are unrestricted

3. Income from charitable activities

Income from charitable activities
Grants -other
Total
Grants -other
Total
Restricted
£
-
£
79,265
Unrestricted
2021
Total
£
79,265
- 79,265 79,265
Restricted
£
-
£
103,810
Unrestricted
2020
Total
£
103,810
- 103,810 103,810

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Trustees' annual report and financial statements for the year ended 31 October 2021

4. Analysis of expenditure

Analysis of expenditure
Raising funds
Trading activities
Cost of trading
Charitable activities
Activities undertaken directly
Support Costs
Office costs
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)
£
-
-
89,309
-
-
Other
costs
£
-
-
-
5,581
-
Allocation of
governance
costs
£
-
-
-
-
-
£
-
-
89,309
5,581
-
2021
89,309 5,581 - 94,890
89,309 5,581 - 94,890
Staff
costs
£
1,719
-
168,253
-
-
-
Other
costs
£
-
8,231
14,486
11,720
-
2,888
Allocation of
governance
costs
£
-
-
-
-
-
-
2020
£
1,719
8,231
182,739
11,720
-
2,888
168,253 29,094 - 197,347
169,972 37,325 - 207,297

Smart Choices Trustees' annual report and financial statements for the year ended 31 October 2021

17

5. Net income / (expenditure) for the year

This is stated after charging:

Depreciation
Other
Independent examiner's remuneration:
Operating lease rentals
Property
2021
£
-
-
-
-
2020
£
-
-
-
-

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

Staff costs were as follows:

Salaries and wages
Social security costs
2021
£
78,511
10,798
2020
£
155,573
14,399
89,309 169,972

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 £47,453 (2020: £52,048).

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 2021
No.
5.7
2020
No.
9.8

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Trustees' annual report and financial statements for the year ended 31 October 2021

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
8.
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
-
Totals
£
21,461
-
2,524 687 18,250 21,461
2,524
-
687
-
18,250
-
21,461
-
2,524 687 18,250 21,461
- - - -
- - - -
2021
£
-
-
-
2020
£
100
-
(100)
- -

Holdings of more than 20%

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

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 2021

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 201920, 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
Debtors
Other debtors
2021
£
-
-
2020
£
-
-
- 45,385
- 45,385
-
-
-
-
- -
2021
£
19,149
2020
£
34,476
19,149 34,476

9. Debtors

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Trustees' annual report and financial statements for the year ended 31 October 2021

10. Creditors: amounts falling due within one year

Taxation and social security
Accruals
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
Social Investment Business loan
Restricted
funds
£
-
-
-
2021
£
28,354
-
1,644
2020
£
14,321
6,169
2,332
29,998 22,822
£
-
22,059
-
Unrestricted
funds
Total funds
£
-
22,059
-
- 22,059 22,059
Restricted
funds
£
-
-
£
-
20,351
-
Unrestricted
funds
Total funds
£
-
20,351
-
- 20,351 20,351

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Trustees' annual report and financial statements for the year ended 31 October 2021

12a Restricted funds (current year)

Restricted funds
Total restricted funds
Unrestricted funds
General funds
12b Restricted funds (prior year)
Restricted funds
Total restricted funds
Unrestricted funds
General funds
Total funds
Total unrestricted funds
Total funds
Total unrestricted funds
At the
start of
the
period
£
-
-
20,351
20,351
20,351
At the
start of
the
period
£
-
-
80,745
80,745
80,745
£
-
Income
£
-
Expenditure
£
-
Transfers
At the end
of the
period
£
-
- - - -
96,598 (94,890) - 22,059
96,598 (94,890) - 22,059
96,598 (94,890) - 22,059
£
-
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

13. 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 2021