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2023-10-31-accounts

Smart Choices Trustees’ Annual Report and Financial Statements

For the year ended 31 October 2023

Registered charity number 1156974

Smart Choices

1

Trustees’ annual report and financial statements for the year ended 31 October 2023

Contents

Trustees’ annual report 3
Review of the year to 31 October 2023 3
Financial commentary 5
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

2

Trustees’ annual report and financial statements for the year ended 31 October 2023

Review of November 2022 to October 2023

Closure of the Charity

Throughout 2020 the Covid-19 pandemic 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 enabled us to initially work with approx. 420 young people. We had also been given additional funding by MOPAC to work with schools and their communities, to support the reintegration and re-engagement 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 online 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.

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 was hampered by personal events outside of our sphere of influence which substantially impacted the process, not least, the ability to access our bank account and deal with creditors. The Trustees are now able to complete the final closure activities and finalise the outstanding annual return and financial statements.

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2023

Bill Griffiths CBE BEM QPM Chair of Trustees Smart Choices

Smart Choices

4

Trustees’ annual report and financial statements for the year ended 31 October 2023

Financial Commentary for the year to October 2023

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 to be completed (tbc) (2020-21: an increase of £1,708).

Income for the year has decreased from £96,598 in 2020-21 to £ tbc a decrease of tbc%. As has been noted in the Trustees’ review, this has also reflected the fact that the Charity’s had ceased operations in July 2021.

Expenditure for the year sentence about income from donors and debts paid to creditors? . Office costs, sentence about overheads such as QuickBooks? .

As at 31 October 2023, the balance sheet is in a net asset position, and furthermore, cash balances are sufficient to settle all most creditors sentence about current debt position er HMRC? . As in previous years, there are no non-current assets to be realised, and no longterm liabilities to be settled as part of the winding-up process. The net asset position remains comprised of unrestricted reserves.

Remuneration policy (Note: not applicable as no employees in this year)

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 for 2022-23 have been prepared on this basis.

Risk management

The trustees have a risk management approach which comprises:

Smart Choices

Trustees’ annual report and financial statements for the year ended 31 October 2023

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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6

Trustees’ annual report and financial statements for the year ended 31 October 2023

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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7

Trustees’ annual report and financial statements for the year ended 31 October 2023

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 Reports) Regulations 2008 and the provisions of the charity’s constitution.

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8

Trustees’ annual report and financial statements for the year ended 31 October 2023

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

9

Trustees’ annual report and financial statements for the year ended 31 October 2023

Statement of financial activities

For the year ended 31 October 2023

Total expenditure
4
Net income / (expenditure) for the
year
5
Note
Income from:
Donations and legacies
Other fundraising activities
Trading activities
Charitable activities
Total income
Expenditure on:
Raising funds
Trading activities
Charitable activities
2
3
Net movement in funds
Other recognised gains and
losseswrite off of
intercompany balances
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
12
94,890
94,890
1,708
1,708
2023
Unrestricted Total
£
£
17,333
-
-
79,265
96,598
-
-
94,890
17,333
-
-
79,265
96,598
-
-
94,890
1,708
-
1,708
20,351
22,059
1,708
-
1,708
20,351
22,059
207,297
207,297
(15,009)
(15,009)
2022
Unrestricted
Total
£
£
82,405 2,841
3,232
103,810
192,288
1,719
8,231
197,347
82,405
2,841
3,232
103,810
192,288
1,719
8,231
197,347
(15,009)
(45,385)
(60,394)
80,745
20,351
(15,009)
(45,385)
(60,394)
80,745
20,351
207,297
207,297
(15,009)
(15,009)
2022
Unrestricted
Total
£
£
82,405 2,841
3,232
103,810
192,288
1,719
8,231
197,347
82,405
2,841
3,232
103,810
192,288
1,719
8,231
197,347
(15,009)
(45,385)
(60,394)
80,745
20,351
(15,009)
(45,385)
(60,394)
80,745
20,351
192,288
1,719
8,231
197,347
207,297
(15,009)
(45,385)
(60,394)
80,745
20,351
(15,009)

10

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

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

Smart Choices

11

Trustees' annual report and financial statements for the year ended 31 October 2023

Balance sheet

As at 31 October 2023

Total current assets
Liabilities
Creditors: amounts falling due within one year
Net current assets
10
(29,998)
Total assets less current liabilities
Net assets
11
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
Funds
12
Restricted funds
Unrestricted funds
General funds
Total charity funds
2023
52,057
22,059
22,059
£
-
-
2022
43,173
(22,822)
20,351
20,351
£
-
-
-
-
22,059
22,059
22,059
-
34,476
8,697
-
20,351
20,351
20,351

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

Bill Griffiths CBE BEM QPM Chair of Trustees

12

Smart Choices

Smart Choices

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

Smart Choices

13

Trustees' annual report and financial statements for the year ended 31 October 2023

Statement of cash flows

For the year ended 31 October 2023

Note
2023
2022
£
£
Cash flows from operating activities
Net cash provided by / (used in) operating activities
a
24,899
(44,665)
Change in cash and cash equivalents in the period
24,899
(44,665)
Cash and cash equivalents at the beginning of the period
8,697
53,362
Cash and cash equivalents at the end of the period
33,596
8,697
a Reconciliation of net income / (expenditure) to net cash provided
by / (used in) operating activities
2023
2022
£
£
Net income / (expenditure) for the reporting period (as per the
1,708
(60,394)statement of financial activities)
(Increase)/decrease in debtors
15,32721,567 Increase/(decrease) in creditors
7,864(5,938)
Impairment of investments
-
100
Net cash provided by / (used in) operating activities
24,899
(44,665)
2023
£
24,899
2022
£
(44,665)
24,899
8,697
(44,665)
53,362
33,596 8,697
24,899 (44,665)

14

Notes to the financial statements

For the year ended 31 October 2023

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.

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Trustees' annual report and financial statements for the year ended 31 October 2023

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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Trustees' annual report and financial statements for the year ended 31 October 2023

2. Donations and legacies

General Donations
21 Bridges Donations
Charity of the year awards
Corporate Donation
Gift Aid
Total
2023
2022
Total
Total
£
£
3,472
30,203
-
-
-
-
13,861
52,202
-
-
~~17,333~~
~~82,405~~

Total

All donations and legacies are unrestricted

3. Income from charitable activities 2023

Grants -other
Total
Grants -other
Total
Restricted
£
-
Unrestricted
Total
£
£
79,265
79,265
2022
Unrestricted
Total
£
£
103,810
103,810
~~79,265~~
~~79,265~~
~~103,810~~
~~103,810~~
~~-~~ ~~79265~~
Restricted
£
-
~~-~~

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17

Trustees' annual report and financial statements for the year ended 31 October 2023

4. Analysis of expenditure

Raising funds
Cost of generating funds
Trading
activities
Cost of trading
Charitable activities
Activities undertaken directly
Support Costs
Office costs
Redundancy Pay
Total charitable expenditure
Total expenditure
Raising funds
Cost of generating funds
Trading
activities
Cost of trading
Charitable activities
Activities undertaken directly
Support Costs
Office costs
Recruitment expenses
Redundancy Pay
Total charitable expenditure
Total expenditure
Staff
costs
(note 6)
£
-
-
89,309
-

Other
costs
£
-
-
-
5,581







Allocation of
governance
costs
£
-
-
-
-
~~-~~
2021
£
-
-
89,309
5,581
-


Allocation of
governance
costs
2022

£
£


-
-
-
-
-
~~-~~
1,719
8,231
182,739
11,720
-
~~2,88~~8
-
94,890
-
94,890
-
197,347
-
207,297
~~-~~
89,309
~~-~~
5,581
-
89,309 5,581 -
Staff
costs
£
1,719
-
168,253
-
-

Other
costs
£
-
8,231
14,486
11,720
-
~~2888~~
~~-~~
168,253
~~,~~
29,094
169,972 37,325

Smart Choices

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

5. Net income / (expenditure) for the year

18

This is stated after charging:

This is stated after charging:
2023 2022
£ £
Depreciation - -
Operating lease rentals
Property - -
Other - -
Independent examiner's remuneration: - -

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
2023
2022
£
£
78,511
155,573
10,798
14,399
89,309
169,972
89,309

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
Plant and
machinery
Fixtures,
fittings and
equipment
Cost
£
£
At the start of the period
2,524
687
Additions
At the end of the period
Depreciation
-
-
At the start of the period
2,524
687
Charge for the period
At the end of the year
-
-
2023
No.
5.7
2022
No.
9.8
Motor
vehicles
£
18,250
-
18,250
-
Totals
£
21,461
-
21,461
-

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19

Trustees' annual report and financial statements for the year ended 31 October 2023

Net book value
At the end of the period - - - -
At the start of the period
8. Fixed assets investments
2023 2022
£ £
Cost at 1 November 2015 - 100
Acquisitions at cost - -
Impairment - (100)
7. Tangible fixed assets
Shares in subsidiary companies - -
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 cap~~i~~tal~~
8. Fixed assets investments (continued) 2,524 687 18,250 21,461
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
2,524 687 18,250 21,461
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:
2023
2022
£
£
-
-
-
-
-
45,385
-
45,385

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20

Trustees' annual report and financial statements for the year ended 31 October 2023

Called up share capital not paid Assets
-
-
Liabilities
-
-
9.
Funds
Debtors
Other debtors
2023
£
19,149
2022
£
34,476
10.
Creditors: amounts falling due within one year
2023
2022
£
£
Taxation and social security
28,35414,321 Social Investment Business loan
-6,169
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)
Restricted
funds
£
-
-
-
Unrestricted
funds
£
-
22,059
-
Total funds
£
-
22,059
-
Accruals
1,644
2,332
Restricted
Unrestricted
funds
funds
Total funds
£
£
£
Investments
-
-
Net current assets
-
20,351
20,351
Long term creditors
-
-
-
St Chi
-
-
19,149
34,476
29,998
22,822
-
22,059
22,059
-
-
-
-
- -

Smart Choices

21

Trustees' annual report and financial statements for the year ended 31 October 2023

20,351 20,351

-

Net assets at the end of the year 12a Restricted funds (current year)

Restricted funds
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds
12b Restricted funds (prior year)
Restricted funds
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds
At the
period
£
-
20,351
At the
period
£
-
80,745
-
-
20,351
20,351
80,745
80,745
Income
£
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(94,890)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(252,682)
-
-
-
-
(94,890)
-
(94,890)
-
(252,682)
-
(252,682)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(94,890)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(252,682)
-
-
-
-
(94,890)
-
(94,890)
-
(252,682)
-
(252,682)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(94,890)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(252,682)
-
-
-
-
(94,890)
-
(94,890)
-
(252,682)
-
(252,682)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(94,890)
-
start ofAt the
Expenditure
Transfers
£
£
-
-
(252,682)
-
-
-
-
(94,890)
-
(94,890)
-
(252,682)
-
(252,682)
-
endtheof the
period
£
-
22,059
endtheof the
period
£
-
20,351
-
-
22,059
22,059
20,351
20,351
- - -
96,598 -
96,598 (94,890) -
96,598 (94,890) -
Income
£
-
- - -
192,288 (252,682)
(252,682)
(252,682)
192,288 (252,682) -
192,288 (252,682) -

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.

Smart Choices

22

Trustees' annual report and financial statements for the year ended 31 October 2023