Company registration number: 08950773 Charity registration number: 1157111 (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2023 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 2023. 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 (2022 - £25,000). In the prior year, a one-off donation of £60,000 was made to the UNICEF Ukraine appeal. AO Smile has also created opportunities and inspired the employees of AO World plc to support their community. Donations totalling £9,784 (2022 - £17,188) have been made to Sands, Macmillan Cancer Support, St Catherine's Hospice 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 £9,784 (2022 - £13,063). ## **FINANCIAL REVIEW** At the year end, there are total unrestricted funds of £214,303 (2022 - £227,018) 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 (reg 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 # drawn in this report in order to enable G(>rtons Chartered Accounlanls Stanrnore House 64-68 Blackburn Street Radcliffe ## **AO Smile Foundation** ## **Statement of Financial Activities for the Year Ended 31 March 2023 (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**
**£**
26,269
26,269
(38,984)
(38,984)
(12,715)
(12,715)
227,018
214,303|**Total Funds**
**Year ended**
**31 March**
**2023**
**£**
26,269
26,269
(38,984)
(38,984)
(12,715)
(12,715)
227,018
214,303|**Total Funds**
**Year ended**
**31 March**
**2022**
**£**
37,444| |---|---|---|---| ||||37,444| ||||(106,388)| ||||(106,388)| ||||(68,944)| ||||(68,944)
295,962| ||||227,018| The notes on pages 6 to 8 form an integral part of these financial statements. Page 4 AO Smile Foundation {Registration number: 089507731 Balance Sheet as at 31 March 2023 2023 2022 Not• Current assets Debt015 Cash at bank and in harky 10 3,578 215,725 5.499 226,519 219.303 232.018 ¢reditor8'. Amounts falling due within ont year Net assets 11 15.000 15,(KlOI 214.303 227,018 Fund5 of the charity-. Unre$tricted income funds Unrestricted funds 214,303 227.018 Total funds 12 214,303 227.018 FOT the finanaal year endirvJ 31 March 2023 ￿ d)arity was ￿ti￿ed 10 ex8mpfy)n from audii under section 477 01 Ihe Companiès Ad 2tJ)6 ￿ta￿.￿j to Srn811 ¢cKnpanies. Directors. ￿$pO￿lE￿Irtte￿. Th8 directors have nol required tha dwrity to o￿aIn an audit of ib acctwnts ft)r the ye8r in question in 8￿rda￿ with section 476., and The directors td(no￿dge thew responsibElI￿ for wih Ihe reqi•remanls of ihe Act V￿th r8spect to aco)unting re￿rdS and the preParat￿n ol accounts. Approve e board ￿ 30 Novembw 21123 aThJ on its behalf by. CRO ru5 The notes on p&Jes 6 to 8 foFrn an inlegral part of Ihese financial staternent& P8ge 5 ## **AO Smile Foundation** ## **Notes to the Financial Statements for the Year Ended 31 March 2023** ## **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. ## **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. Page 6 ## **AO Smile Foundation** ## **Notes to the Financial Statements for the Year Ended 31 March 2023** ## **4 Income from donations and legacies** |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**
**2023**
**£**
26,269
26,269
**Total**
**2023**
**£**
34,784
4,200
38,984
**Total**
**2023**
**£**
1,500
2,000
700
4,200|**Total**
**2022**
**£**
37,444| |---|---|---| |||37,444| |||**Total**
**2022**
**£**
102,188
4,200| |||106,388| |||**Total**
**2022**
**£**
1,500
2,000
700| |||4,200| ## **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** |Independent examination, accountancy and tax compliance services
VAT element|**2023**
**£**
3,500
700
4,200|**2022**
**£**
3,500
700| |---|---|---| |||4,200| ## **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** |**10 Debtors**||| |---|---|---| |Accrued income
**11 Creditors: amounts falling due within one year**
Accruals|**2023**
**£**
3,578
**2023**
**£**
5,000|**2022**
**£**
5,499| |||**2022**
**£**
5,000| Page 7 ## **AO Smile Foundation** ## **Notes to the Financial Statements for the Year Ended 31 March 2023** ## **12 Funds** |**12 Funds**||||| |---|---|---|---|---| |**Unrestricted**
General funds
**Unrestricted**
General funds|**Balance at 1**
**April 2022**
**£**
227,018
**Balance at 1**
**April 2021**
**£**
295,962|**Incoming**
**resources**
**£**
26,269
**Incoming**
**resources**
**£**
37,444|**Resources**
**expended**
**£**
(38,984)
**Resources**
**expended**
**£**
(106,388)|**Balance at 31**
**March 2023**
**£**
214,303| |||||**Balance at 31**
**March 2022**
**£**
227,018| ## **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. 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)**