Company registration number: 08950773 Charity registration number: 1157111
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2022
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 2022. 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 the following major donations:
Manchester Youth Zone East - £25,000
UNICEF Ukraine appeal - £60,000
AO Smile has also created opportunities and inspired the employees of AO World plc to support their community through Sands, Children Today, Raise the Youth Foundation 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 £13,063 (2021 - £11,880).
FINANCIAL REVIEW
At the year end, there are total unrestricted funds of £227,018 (2021 - £295,962) 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.
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AO Smilo Foundallon Trusteos. Report REFERENCE AND ADPIJI4STrATIVE DETAIL TruBtoes.' J C Rotrts V A {r06rl 31 2) D IAllkison J A L {awrwtsJ 31 Marth 20221 Prindpal and Rtyistsrfrj Olko.. ur 5a ParkknThJ Lostr BL6 4SD Company R•gistratthi Numb•r. Charfty Reglstr¥tlon Nun•r. 08950773 1157111 Ind8pendent Examlnw. stMor• Hou Manth•st•r M28 2JS Srnll ¢omwnl•• wknlon •tst•m•nl Th18 r•port hA8 baon ryeparnd in accord•rK? ndl th• Ccffirkn$ Act 2. 8t•t•m•nt oltnMt•••' M•p¢n•lblllll•• Th• truee8 Ivtho •r• 81so th• dirnctors of AO Smlg F0uTrjab tr Ilw pu ol r)Jmpony l•wl •r• Mp$>1 preparin9 the trust¢. r¢wt th8 blnancaal $tthm•nts in accordan the Urnt¢d Kiryd Accournbrq St•Nl•rdo Unllgd lQ"ngdom GTa Acc4pt•d Actn.[¥j Prthcliul arml appIat4• law WKI regulatiGl. comnY law roquir•s Ihfy tru8t888 to pr•par• finwKi•l Staternts for each fina Yr. Undar ts)mp•ny law thè ITusts81 must not apwove t flnan¢ial Statnts unless try •re $8tLryfied Ihat tY give a tfvo lalr vknw of the Stato 018ffatrs of th8 charttaa rKJrryany and of its inc£ffliThJ rUrts1 8ThJ sptrOn of rosourc45. Ijud1r#J Ks Incomfr and expwbllture, lor Ihat period. In pr•poring these finaA8$ stnwits. tr Inotw Ar• to". ¥de( sut wunb'rKJ Oits•s ap them {Y)nsteny. ob8•M ts m8lhods wvj prkndples in Chowlti•J SORP, m•k• jU¢&]ents •ab"mal•8 th ar• and Itats bvhthr app1kab UK AccounbThJ StWKJord• h•% b••n frltr•d. to any rfiaiwW arturns dl$dog•J ar •x1nd th• financK41 staternts.. and pwar• the flnanc4•1 st•twnorts on th• conc•m ba8iB urlM8 rt ra inappropriakn to kKo6urnD that thfr charitsl• company cLJntinue The IWSte ars r&SpOnbI0 lor k•eFing •dwu•te •ccourfi'ng r•Lxth th8t • ftleI Io 8hw •Wawi th• ehari¢abl• company's transaCtior and dmdose re8stble 8Lcurw at any timo ts finawal p)sOn Oft ccynpany and enablè them to ensu th the finonpal $tsttyNnty comF4y 1h Ihe Acl 2LTh. They are alBO regportslbkn for iafeguarding the assets of tho charitab crynpony •ThJ hwce IDr tskry rnawn&b sleps for pT•vention Ind d•t•eti+n of fraud 8NI Qthor irrogubarllb88. Th• an1 8 PFprob*d by lh8 Intsie•s ofthe chaity on 15 Decerter 2ff22 •MJ Iwned it51)ohr by.. P4e2
AO Smile Foundatlon Independent Examlnerfs Report to the trustees of AO Smlle Foundatlon I r8POrt to tharty trustees on my of of th• charty for the ar •rxled 31 Mari 2022 are Set out on pages 4 to 8. Re•poMibilittos and bsls ol ieport As chanty's trustees ofAO Srnle FwTrJ8th)n {WKI 0 its dw•£ltrt for w4)os•s of o)mp ar& res$t1 fortho pr•paMts"on ofthe acttrtencewith ofthè Com1•S Act 20C61lhe 20C Arfl. Having satisfi&Y myself th8t acojunts ofAO Smile FoLThJation are wuired to be altsd under Pwt 16 ofthe 26 Act and arv •lvait40 inTrnt exnali)n. I reFOYt in rèsF¢d of my èxaminabon of your eharty'$ oUnts 8$ cAmed out urthr S•eb"C 145 of the char"e$ Act 2011 {ts 2011 Arfl. In carrwrvj my &xninatth I ha¥e folltrwod tho Dirath"o gNen by bKp CW CommissKJn uthsectm 1445Xbl oftr 2011 A lrtd+pndant éxamln•f• 8tstement I have completed my ornin0bOn. I ctslfmi that no matys ha4 comfr to my alt8n11 in (On With tho examlnalon Tig me cause to belie¥e'. 1. a¢¢nIl9 récords mt respe(a (rfAO 0$ by oftr Art c 2. the ac¢cJts do not awd with Ilwe CCd5,. c 3. the accounts do not With Ih ajntir9 of SO¢ W tsf tha 20C6 Ad tsthèr than any tsquiwmènt thatthe 8xnts g¥• a IrL and fa¥ is lt a malkr as partof an independant exarTrination.' or 4. the accwnts ha¥0 Th)t teen prepared in aC¢Nda vthlh mellh>Js and priwlgs of th8 Statemènt of R8comm8Thled Practi lor 8c£ountro aThJ reporbrvJ by dwitks laFpthcth to pwring their X¥1)rdan byith Ihg Fin8n081 R¢Fthing Standard apFduble in the UK arhj Repth rf Irel8Thd {FRS 102}}. drav+n in I1¥¥ rgwt in ordar io •nabkn a w und0rstlng ofthB accounts to b? Gortons Chartertrd Atcountants Stanrnoo Housg 6468 Bla(bwn Sbwt Radcllffa Manthe5tgr M26 2JS 15 Dgcrnl)er 2ry22 P•J& 3
AO Smile Foundation
Statement of Financial Activities for the Year Ended 31 March 2022 (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 £ 37,444 37,444 (106,388) (106,388) (68,944) (68,944) 295,962 227,018 |
Total Funds Year ended 31 March 2022 £ 37,444 37,444 (106,388) (106,388) (68,944) (68,944) 295,962 227,018 |
Total Funds Year ended 31 March 2021 £ 41,909 |
|---|---|---|---|
| 41,909 | |||
| (47,058) | |||
| (47,058) | |||
| (5,149) | |||
| (5,149) 301,111 |
|||
| 295,962 |
The notes on pages 6 to 8 form an integral part of these financial statements. Page 4
AO Smile Foundation (Regislration numbw: 08950773) Balance Sheet as at 31 March 2022 2022 2021 CuYr•nt a•••ts DebtOWS Cash at bank and in hoThJ 10 5,499 226519 6,700 294,782 232,018 301.462 Crndltorn: Am•unts f4Mlng thJ• ¥Athln on• y•¥ 11 295 962 FundK of th• chrlty: Unmtrlct•d In¢¢m• UN•8trktfrJ ft•)d8 295 962 Total lund• 12 For IM find •r eTrliryJ 31 Marth 2022 Ih ¢Jwity w •nOlod to frryn ali under 477 01 t c¢#np• Ad 2crfJ6 I•1.1vI to 8mal c•kn•. Th8 directors havo not rrj ¢ho1ty to an •t ol accounts for th• yow in ¢ijMI in 8$¢tn 476., and The th'roctcrfs •cntr•lSJ• th•lr nsp¢robls for >M1n9 *llh tho rWuYwn8 of wlth r•sFert to •c¢tyntiNJ rK¢rd8 and th• prnp$ratiM ol•c<thrt•. by tho bowd on 15 DeLwnb•r 2022 •r sW•J Il• t•h•K ty. Th? not•s cffi pages 6 to 8 fNm an inbjral wt tsftt) finabKi4 9latwMnt& P85
AO Smile Foundation
Notes to the Financial Statements for the Year Ended 31 March 2022
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.
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AO Smile Foundation
Notes to the Financial Statements for the Year Ended 31 March 2022
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) 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 2022 £ - 37,444 37,444 Total 2022 £ 102,188 4,200 106,388 Total 2022 £ 1,500 2,000 700 4,200 |
Total 2021 £ 350 41,559 |
| 41,909 | ||
| Total 2021 £ 42,978 4,080 |
||
| 47,058 | ||
| Total 2021 £ 1,400 2,000 680 |
||
| 4,080 |
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 |
2022 £ 3,500 700 4,200 |
2021 £ 3,400 680 |
| 4,080 |
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
| 2022 | 2021 |
|---|---|
| £ | £ |
| 5,499 | 6,700 |
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AO Smile Foundation
Notes to the Financial Statements for the Year Ended 31 March 2022
11 Creditors: amounts falling due within one year
| Due to AO Retail Limited Accruals 12 Funds Unrestricted General funds Unrestricted General funds |
Balance at 1 April 2021 £ 295,962 Balance at 1 April 2020 £ 301,111 |
Incoming resources £ 37,444 Incoming resources £ 41,909 |
2022 £ - 5,000 5,000 Resources expended £ (106,388) Resources expended £ (47,058) |
2021 £ 500 5,000 |
|---|---|---|---|---|
| 5,500 | ||||
| Balance at 31 March 2022 £ 227,018 |
||||
| Balance at 31 March 2021 £ 295,962 |
13 Related party transactions
The company directors and charity trustees are currently Mr Roberts, Mr Wilkinson and Mrs Finnemore.
Mr Roberts is a director of AO World plc, the supporting company, and of other group companies and Mrs Finnemore is the Company Secretary and Legal Director.
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 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 £41,153 (2021 - £45,428) and governance expense payments were nil (2021 - £4,680). The company reimbursed AO Retail Limited £41,653 (2021 - £49,608) during the year. There was no balance owing to AO Retail Limited at the year end (2021 - £500) and the normal process of cheque payment processing has been resumed.
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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)