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. Page 1 AO Smilo Foundallon Trusteos. Report REFERENCE AND ADPIJI4STrATIVE DETAIL TruBtoes.' J C Rot*rts V A {r06*r*l 31 2￿) D IAllk*ison 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. st￿Mor• Hou Manth•st•r M28 2JS Srn*ll ¢omwnl•• wknlon •tst•m•nl Th18 r•port hA8 baon ryeparnd in accord•rK? *ndl th• Ccffi￿rkn$ Act 2￿. 8t•t•m•nt oltnMt•••' M•p¢n•lblllll•• Th• tru*ee8 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 G￿￿Ta￿ Acc4pt•d Act￿n￿.[¥j Prthcliul arml appI￿at4• law WKI regulatiG￿l. com￿nY law roquir•s Ihfy tru8t888 to pr•par• finwKi•l Statern￿ts for each fina￿￿ Y￿r. Undar ts)mp•ny law thè ITusts81 must not apwove t￿ flnan¢ial Stat￿nts unless tr*y •re $8tLryfied Ihat t￿Y give a tfvo lalr vknw of the Stato 018ffatrs of th8 chartta￿a rKJrryany and of its inc£ffliThJ r￿Urts1 8ThJ sp￿￿trOn of rosourc45. I￿jud1r#J Ks Incomfr and expwbllture, lor Ihat period. In pr•poring these fina￿A8$ st*nwits. tr* Inotw Ar• to". ¥de(* sut￿￿ wunb'rKJ Oits•s ap￿ them {Y)n￿sten￿y. 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 •x￿*1n￿d th• financK41 statern￿ts.. and pwar• the flnanc4•1 st•twnorts on th• conc•m ba8iB urlM8 rt ra inappropriakn to kKo6urnD that thfr charit*sl• company cLJntinue The IWSte￿ ars r&SpOn￿bI0 lor k•eFing •dwu•te •ccourfi'ng r•Lxth th8t *• ￿ftle￿I Io 8hw •Wawi th• ehari¢abl• company's transaCtior￿ and dmdose re8st￿*ble 8Lcurw at any timo ts finawal p)s￿On Oft￿ ccynpany and enablè them to ensu￿ th* the finonpal $tsttyNnty comF4y ￿1h Ihe Acl 2LTh. They are alBO regportslbkn for iafeguarding the assets of tho charitab* crynpony •ThJ hwce IDr tskry rnawn&b￿ sleps for pT•vention Ind d•t•eti+n of fraud 8NI Qthor irrogubarllb88. Th• an￿*1 8 PFprob*d by lh8 Intsie•s ofthe chaity on 15 Decerter 2ff22 •MJ Iwned ￿ it51)oh￿r by.. P4e2 AO Smile Foundatlon Independent Examlnerfs Report to the trustees of AO Smlle Foundatlon I r8POrt to tharty trustees on my of of th• charty for the ￿ar •rxled 31 Mari* 2022 are Set out on pages 4 to 8. Re•poMibilittos and b*sls ol ieport As chanty's trustees ofAO Srnle FwTrJ8th)n {WKI *0 its dw•£ltrt for ￿ w4)os•s of o)mp￿ ar& res￿$t1 fortho pr•paMts"on ofthe acttrtencewith ofthè Com￿1•S Act 20C61lhe 20C* Arfl. Having satisfi&Y myself th8t ￿ acojunts ofAO Smile FoLThJation are wuired to be a￿ltsd under Pwt 16 ofthe 2￿6 Act and arv •lvait40 in**Tr*nt ex￿nali)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 &x*ninatth 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¢¢￿nI*l9 récords mt respe(a (rfAO 0$ by oftr* Art c 2. the ac¢c*Jts do not awd with Ilwe ￿CC￿d5,. c* 3. the accounts do not With Ih a￿jntir9 of SO¢*￿ W tsf tha 20C6 Ad tsthèr than any tsquiwmènt thatthe 8￿x￿nts 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 und0rst￿lng ofthB accounts to b? Gortons Chartertrd Atcountants Stanrnoo Housg 6468 Bla(*bwn Sbwt Radcllffa Manthe5tgr M26 2JS 15 Dgc*rnl)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• ch*rlty: Unmtrlct•d In¢¢m• UN•8trktfrJ ft•)d8 295 962 Total lund• 12 For IM fin￿d￿ ￿•r eTrliryJ 31 Marth 2022 Ih ¢Jwity w •nOlod to frryn a￿li under 477 01 t c¢#np￿• Ad 2crfJ6 I•￿1.1vI to 8mal c•kn•. Th8 directors havo not r￿￿r￿j ¢ho1ty to an •￿*t ol accounts for th• yow in ¢ijMI￿ in 8$¢t￿n 476., and The th'roctcrfs •c*ntr•l*SJ• th•lr nsp¢rob￿l￿s for ￿>M￿1n9 *llh tho rWuYwn￿8 of wlth r•sFert to •c¢tyntiNJ rK¢rd8 and th• prnp$ratiM ol•c**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| Page 7 ## **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. 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)**