Company registration number: 08950773 Charity registration number: 1157111
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021
Gortons Chartered Accountants Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS
## **AO Smile Foundation**
## **Contents**
|Trustees' Report|1 to 2|
|---|---|
|Independent Examiner's Report|3|
|Statement of Financial Activities|4|
|Balance Sheet|5|
|Notes to the Financial Statements|6 to 8|
## **AO Smile Foundation**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021. The trustees have adopted the provisions of the Accounting and Reporting for 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).
## **OBJECTIVES AND ACTIVITIES**
The charity’s objects are restricted to charitable activities and donations. The primary objective of the foundation is:
• To help children be the best they can be and to create opportunities for those who would otherwise be deprived of such chances.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **ACHIEVEMENTS AND PERFORMANCE**
During the year, the charity made a major donation totalling £25,000 to Manchester Youth Zone East.
AO Smile has also created opportunities and inspired the employees of AO World plc to support their community through Movember and many more. The charity also boosted the fundraising efforts of a number of employees of AO World plc to raise monies for charities close to their hearts, this included donations totalling £11,880 (2020 - £21,062)
## **FINANCIAL REVIEW**
At the year end, there are total unrestricted funds of £295,962 (2020 - £301,111) which have primarily arisen from monies provided by trustees to fund ongoing and future charitable donations. The trustees’ policy is to hold reserves in order to continue to fund ongoing and future charitable donations. The charity will continue to undertake projects to increase funds and continue in its primary objective to ‘help children be the best they can be and create opportunities for those who would otherwise be deprived of such chances.’
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Nature of governing document**
AO Smile Foundation was registered as a non-profit making company on 20 March 2014 (ref no. 08950773) and was registered as a UK charity (reg no. 1157111) by the Charity Commissioners with effect from 19 May 2014. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up trustees are required to contribute an amount not exceeding £1.
The charity is a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Organisational structure**
AO Smile Foundation does not have any paid employees or any unpaid voluntary workers; all activites and management are currently carried out by the trustees, or the staff of AO World plc. Trustees are elected in accordance with the Memorandum of Association. The trustees have the power to appoint any person who is able and willing to do so to be a trustee. A trustee shall hold office for three years from the date of appointment at the end of which they shall be eligible for re-appointment for one or more further terms of three years each.
Page 1
## **AO Smile Foundation**
## **Trustees' Report**
## **REFERENCE AND ADMINISTRATIVE DETAIL**
Directors and Trustees: J C Roberts V A Rodgers D Wilkinson Principal and Registered Office: Unit 5a The Parklands Lostock Bolton BL6 4SD Company Registration Number: 08950773 Charity Registration Number: 1157111 Independent Examiner: Gortons Chartered Accountants Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS
## **Small companies provision statement**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of AO Smile Foundation for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on 10 December 2021 and signed on its behalf by:
**----- Start of picture text -----**
.........................................
J C Roberts
Trustee
**----- End of picture text -----**
Page 2
AO Smile Foundation
Independent Examinerfs Report to the trustees of AO Smile Foundation
I r8POrt to the charity trustees on my examination of lh8 a(xx)unts of the tharity ft>r the year ended 31 March 2021 which are S8t
OLrt on pages 4 to 8.
Responsibilitses and basis of report
As the charity's trustees of AO Smile Foundation land also its directors for the purptrses of company lawl you a responsible
for the preparation ol the accounts in accordan the requirements of the Companies Act 20061'the 2006 Act'l.
Having satisfied rnys8W that the accounts of AO Smil8 Foundation are not required to audited under Part 16 of the 2006 Act
nd are eligible for Independent exarnination, I report in respect of my exarnination of your charty's account5 as carried out
under section 145 of the Charities Act 20111.the 2011 Act'l. In caffwng out my examinats.on I have followed the Directions given
by the Charity Commission under section 14515llbl ol the 2011 Act.
Independent examinerfs statement
I have completed my examination. I confimi that matters have come to my attention in o)nnection the examination giving
rne cause to believe..
accoLJnting records were not kept in r8spect of AO Smile Founda11 as required by section 386 of the 2006 Act., or
2. the accounts do not accord with those records.. or
3. the accounts do not comply with the accounting requ1ments of Se 3% of the 2006 Act other than any requirement
that the accounts give a 'true and lair viebrf which is not a matter considered as part ol an independent examination., or
4. the account5 have not been prepared in accordance with the rnethods and prinaples of the Statetnent of Recommended
Practice for accounting and reporbng by charities lapplicable to charities prepanng their accounts In accordance wth the
Finanaal Reporting Standard applicable in the UK and RepU1C of Iland IFRS 10211.
I have no cOnM$ and have come across no olher matters in o)nnect#)n vith ihe examination io which attention should be
drawn in this report in order to enable a prOr understanding of the aco)unls to be reached.
Gortons
Chartered Accountants
Stanmore House
64-68 Blackbum Street
Radcliffe
Manchester
M26 2JS
10 December 2021
Page 3
## **AO Smile Foundation**
## **Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account)**
|**Note**
**Income and Endowments from:**
Donations and legacies
4
Total Income
**Expenditure on:**
Charitable activities
5
Total Expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
12|**Unrestricted**
**£**
41,909
41,909
(47,058)
(47,058)
(5,149)
(5,149)
301,111
295,962|**Total Funds**
**Year ended**
**31 March**
**2021**
**£**
41,909
41,909
(47,058)
(47,058)
(5,149)
(5,149)
301,111
295,962|**Total Funds**
**Year ended**
**31 March**
**2020**
**£**
53,205|
|---|---|---|---|
||||53,205|
||||(157,540)|
||||(157,540)|
||||(104,335)|
||||(104,335)
405,446|
||||301,111|
The notes on pages 6 to 8 form an integral part of these financial statements. Page 4
## **AO Smile Foundation**
## **(Registration number: 08950773) Balance Sheet as at 31 March 2021**
|**Note**
**Current assets**
Debtors
10
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
11
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
12|**2021**
**£**
6,700
294,762
301,462
(5,500)
295,962
295,962
295,962|**2020**
**£**
7,250
299,461|
|---|---|---|
|||306,711
(5,600)|
|||301,111|
|||301,111|
|||301,111|
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The trustees have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
Approved by the board on 10 December 2021 and signed on its behalf by:
......................................... J C Roberts Trustee
The notes on pages 6 to 8 form an integral part of these financial statements. Page 5
## **AO Smile Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Charity status**
The charity is a private company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
## **2 General information**
The charity was incorporated as a company in the United Kingdom and the registered office is Unit 5a, The Parklands, Lostock, Bolton, BL6 4SD.
## **3 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with the appropriate Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”), the Companies Act 2006, and the relevant Statement of Recommended Practice relating to charity accounting – “Charities SORP (FRS 102)”. The SORP’s full title is: 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).
## **Basis of preparation**
AO Smile Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Income and endowments**
All income, including donations and legacies, is recognised once the charity has entitlement to the income, certainty of receipt and the amount can be measured with sufficient reliability.
Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.
## **Charitable activities**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activites and those costs of an indirect nature necessary to support them.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including the preparation and examination of the statutory accounts and the costs of trustees’ meetings.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash in hand and cash at bank, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Further details of each fund are disclosed in note 12.
Page 6
## **AO Smile Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **4 Income from donations and legacies**
|**4**
**Income from donations and legacies**|||
|---|---|---|
|Donations from third parties
Donations from AO World plc group staff (from salaries)|**Total**
**2021**
**£**
350
41,559
41,909|**Total**
**2020**
**£**
7,584
45,621|
|||53,205|
## **5 Expenditure on charitable activities**
|**Note**
Charitable donations made
Governance costs
6
**6**
**Analysis of governance costs**
Independent examination
Accounts preparation and tax compliance
VAT on professional costs|**Total**
**2021**
**£**
42,978
4,080
47,058
**Total**
**2021**
**£**
1,400
2,000
680
4,080|**Total**
**2020**
**£**
153,100
4,440|
|---|---|---|
|||157,540|
|||**Total**
**2020**
**£**
1,200
2,500
740|
|||4,440|
## **7 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **8 Independent Examiner's remuneration**
|**8**
**Independent Examiner's remuneration**|||
|---|---|---|
|Independent examination, accountancy and tax compliance services
VAT element|**2021**
**£**
3,400
680
4,080|**2020**
**£**
3,700
740|
|||4,440|
## **9 Taxation**
As a registered charity, the company is generally exempt from tax on its income or gains, in accordance with the provisions of Part 11 Corporation Tax Act 2010.
## **10 Debtors**
Accrued income
|**2021**|**2020**|
|---|---|
|**£**|**£**|
|6,700|7,250|
Page 7
## **AO Smile Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **11 Creditors: amounts falling due within one year**
|**11 Creditors: amounts falling due within one year**|||||
|---|---|---|---|---|
|Trade creditors
Due to AO Retail Limited
Accruals
**12 Funds**
**Unrestricted**
General funds
**Unrestricted**
General funds|**Balance at 1**
**April 2020**
**£**
301,111
**Balance at 1**
**April 2019**
**£**
405,446|**Incoming**
**resources**
**£**
41,909
**Incoming**
**resources**
**£**
53,205|**2021**
**£**
-
500
5,000
5,500
**Resources**
**expended**
**£**
(47,058)
**Resources**
**expended**
**£**
(157,540)|**2020**
**£**
600
-
5,000|
|||||5,600|
|||||**Balance at 31**
**March 2021**
**£**
295,962|
|||||**Balance at 31**
**March 2020**
**£**
301,111|
## **13 Related party transactions**
The company directors and charity trustees are currently Mr Roberts, Mr Wilkinson and Miss Rodgers.
Mr Roberts is a director of AO World plc, the supporting company, and of other group companies and Miss Rodgers is the Chief People Officer for all group companies.
The AO World plc group (including its subsidiaries) has supported the company this year, as:
• The group has provided staff resources at no cost to the charity. There was broadly the equivalent of one full-time member of staff working on the charity’s behalf throughout the period.
• Staff in group companies have supported the charity significantly by direct donations from their salaries.
• A subsidiary of the group, AO Retail Limited, made various charity donation and governance expense payments on behalf of the company (as a result of the impact of COVID19 preventing the normal process of cheque payment processing). Total charity donations made on their behalf during the year amounted to £45,428 and governance expense payments of £4,680. The company reimbursed AO Retail Limited £49,608 during the year. There was a balance owing to AO Retail Limited of £500 at the year end, which relates to a single charity donation made by AO Retail Limited in March 2021. This was reimbursed after the year end.
Page 8
**Gortons chartered accountants**
**Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS t: 0161 723 6420 w: www.gortons.org**
**Jim Gorton FCA John Gorton FCA (Consultant)**