Smart Choices Trustees’ Annual Report and Financial Statements
For the year ended 31 October 2024
Registered charity number 1156974
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Smart Choices
Contents
| Trustees’ annual report | 3 |
|---|---|
| Review of the year to 31 October 2024 | 3 |
| Financial commentary | 5 |
| Reference and administrative information | 6 |
| Financial statements | 8 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Statement of cash flows | 10 |
| Notes to the financial statements | 11 |
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
Review of November 2023 to October 2024
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:
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A better understanding of the emotional triggers, which lead to violent acts
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Developed new strategies to understand and manage negative emotions and behaviours
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A better understanding of themselves and their impact on others
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Developed new strategies, which enable them to make better decisions
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A new understanding, of how to form healthy relationships with young people and adults.
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.
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
Bill Griffiths CBE BEM QPM Chair of Trustees
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
Financial Commentary for the year to October 2024
In common with many other charities, Smart Choices was significantly impacted by the COVID-19 pandemic, and the previous accounts showed the challenging financial situation faced by the Charity. Consequently, the Trustees resolved to cease operations and are currently overseeing an orderly closure of the Charity.
The Charity’s net movement in funds shown in the accounts is (£22,651), (2022-2023 £1708): a decrease of £24,359.
Income for the year has decreased from £96,598 in 2022-23 to £17,333 a decrease of 82%. As has been noted in the Trustees’ review, this is in line with the Trustee’s decision to close the Charity.
Expenditure for the year was £23,571 (2022-2023 £94,890) a reduction of 75%.
As at 31 October 2024, the balance sheet is showing net liability position of +£592 (31 October 2023, net assets £22,059). 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.
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 Trustees are overseeing an orderly closure of the Charity. The accounts for 2023-24 have been prepared on this basis.
Risk management
The trustees have a risk management approach which comprises:
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Regular review of the principal risks and uncertainties that the charity faces;
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The establishment of policies, systems and procedures to mitigate those risks identified; and
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The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
This work identified that financial sustainability is the major financial risk for both the Charity. 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 stemmed from these regular reviews.
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
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
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.
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
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:
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Select suitable accounting policies and then apply them consistently.
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Observe the methods and principles in the Charities SORP.
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Make judgements and estimates that are reasonable and prudent.
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State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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
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Trustees’ annual report and financial statements for the year ended 31 October 2024
Smart Choices
Statement of financial activities
For the year ended 31 October 2024
| Note Income from: Donations & Legacies 2 Other fundraising activities Trading activities Charitable activities 3 Total income Expenditure on: Raising funds Trading activities Charitable activities Total expenditure 4 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
2024 2023 Unrestricted Total Unrestricted Total £ £ £ £ 922 922 17,333 17,333 - - - - - - - - - - 79,265 79,265 |
|---|---|
| 922 922 96,598 96,598 |
|
| - - - - - - - - 23,571 23,571 94,890 94,890 |
|
| 23,571 23,571 94,890 94,890 |
|
| (22,651) (22,651) 1,708 1,708 22,059 22,059 20,351 20,351 |
|
| (592) (592) 22,059 22,059 |
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. The notes on pages 11 to 18 form part of these financial statements.
Smart Choices
Trustees' annual report and financial statements for the year ended 31 October 2024
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Balance sheet
As at 31 October 2024
| Note Fixed assets Tangible fixed assets Investments Total fixed assets Current assets Debtors Cash at bank and in hand Total current assets Liabilities Creditors: amount falling due within one year 10 Net current assets Total assets less current liabilities Net asset Funds Restricted funds Unrestricted funds General funds Total charity funds |
2024 2023 £ £ - - - - |
|---|---|
| - - |
|
| - 19,149 1,406 32,908 |
|
| 1,406 52,057 |
|
| (1,998) (29,998) |
|
| (592) 22,059 |
|
| (592) 22,059 |
|
| (592) 22,059 |
|
| (592) 22,059 |
|
| (592) 22,059 |
Approved by the trustees on 31 January 2026 and signed on their behalf by
Bill Griffiths CBE BEM QPM
Chair of Trustees
The notes on pages 11 to 18 form part of these financial statements.
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2023
Smart Choices
Trustees' annual report and financial statements for the year ended 31 October 2021
Statement of cash flows
| Statement of cash flows | ||
|---|---|---|
| For the year ended 31 October 2024 Note Cash flows from operating activities Net cash provided by / (used in) operating activities a Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period a Reconciliation of net income / (expenditure) to net cash provided by / (used in) operating activities Net income / (expenditure) for the reporting period (as per statement of financial activities) (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by / (used in) operating activities |
2024 £ (31,502) |
2023 £ 24,899 |
| (31,502) 32,908 |
24,899 8,009 |
|
| 1,406 | 32,908 | |
| (31,502) | 24,899 |
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Notes to the financial statements
For the year ended 31 October 2024
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 outbreak of the COVID-19 pandemic in 2020 had a significant impact on grant applications in the pipeline severely hindered the charity's ability to raise funds. As a consequence, the Trustees believed that, given the huge effects of the COVID-19 pandemic on the charity's income and low level of reserves available, there was not adequate resources to continue in operation for the foreseeable future and considered that there were material uncertainties about the charity's ability to continue as a going concern. We are now proceeding to an orderly closure of the Charity.
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.
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.
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2023
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
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Trustees' annual report and financial statements for the year ended 31 October 2023
2. Donations and legacies
| General Donations Corporate Donation Total |
2024 2023 Total Total £ £ 922 3,472 - 13,861 ~~922~~ ~~17,333~~ |
|---|---|
All donations and legacies are unrestricted
3. Income from charitable activities 2024
| Grants - other Total Grants - other Total |
Restricted £ - |
Unrestricted Total £ £ - - 2023 Unrestricted Total £ £ 79,265 79,265 ~~-~~ ~~-~~ ~~79,265~~ ~~79,265~~ |
|---|---|---|
| ~~-~~ | ~~-~~ | |
| Restricted £ - |
||
| ~~-~~ |
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2024
4. Analysis of expenditure
| Raising funds Costs of generating funds Trading activities Cost of trading Charitable activities Activities undertaken directly Support costs Office costs Total charitable expenditure Total expenditure Raising funds Costs of generating funds Trading activities Cost of trading Charitable activities Activities undertaken directly Support costs Office costs Total charitable expenditure Total expenditure |
Staff costs Other costs Allocation of governance costs 2024 £ £ £ £ - - - - - - - - - 23,334 - 23,334 - 237 - 237 |
|---|---|
| - 23,571 - 23,571 |
|
| - 23,571 - 23,571 |
|
| Staff costs Other costs Allocation of governance costs 2023 £ £ £ £ - - - - - - - - 89,309 - - 89,309 - 5,581 - 5,581 |
|
| 89,309 5,581 - 94,890 |
|
| 89,309 5,581 - 94,890 |
Smart Choices
Trustees' annual report and financial statements for the year ended 31 October 2024
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5. Net income / (expenditure) for the year
This is stated after charging:
| This is stated after charging: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| 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 |
2024 2023 £ £ - 78,511 - 10,798 |
|---|---|
| - 89,380 |
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 £nil (2023: £47,453).
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2024: £nil). No charity trustee received payment for professional or other services supplied to the charity (2024: £nil). No expenses were reimbursed to trustees during the year (2023: £nil).
The average weekly number of employees during the period was as follows:
| The average weekly number of employees during | the period was as follows: | |
|---|---|---|
| 2024 | 2023 | |
| No. | No. | |
| Total employees | - | 5.7 |
7. Tangible fixed assets
Plant and Fixtures, Motor Totals machinery fittings and vehicles
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2024
| equipment Cost £ £ At the start of the period 2,524 687 Depreciation - - At the start of the period 2,524 687 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 2023 Acquisitions at cost Impairment 9. Funds Debtors Other debtors 10. Creditors: amounts falling due within one year |
£ 18,250 - 18,250 - - 2024 £ - - - |
£ 21,461 - 21,461 - - 2023 £ - - - |
|---|---|---|
| - | - | |
| 2024 £ - |
2023 £ 19,149 |
|
| - | 19,149 | |
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2023
| Taxation and social security Social Investment Business loan 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) Accruals Investments Net current assets Long term creditors Net assets at the end of the year |
Restricted funds £ - - - Restricted funds £ - - - |
Restricted funds £ - - - Restricted funds £ - - - |
2024 2023 £ £ 354 28,354 - - Unrestricted funds £ - (592) - Total funds £ - (592) - 1,644 1,644 Unrestricted funds Total funds £ £ - - (592) (592) - - 1,998 29,998 (592) (592) |
|---|---|---|---|
| - | (592) | ||
12a Restricted funds (current year)
At the start
Smart Choices
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Trustees' annual report and financial statements for the year ended 31 October 2024
| 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 |
of the period Income £ £ - - 22,059 922 At the start of the period Income £ £ - - 20,351 96,598 - - - - 22,059 922 22,059 922 20,351 96,598 20,351 96,598 |
Income £ - |
Expenditure £ - |
Expenditure £ - |
Transfers £ - |
Transfers £ - |
of the period £ - (592) At the end of the period £ - 22,059 - - (592) (592) 22,059 22,059 |
|---|---|---|---|---|---|---|---|
| - | - | - | |||||
| 922 | (23,571) Expenditure £ - (23,571) (23,571) |
- | |||||
| 922 | (23,571) | - | |||||
| 922 | (23,571) | - | |||||
| - | - | - | |||||
| 96,598 | (94,890) | ||||||
| 96,598 | (94,890) | - | |||||
| 96,598 | (94,890) | - |
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
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Trustees' annual report and financial statements for the year ended 31 October 2023