Registered number: 09626673 Charity number: 1163423
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
HEDLEY DUNK LIMITED
Chartered Accountants & Statutory Auditor Trinity House 3 Bullace Lane Dartford Kent DA1 1BB
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Company, its Trustees and Advisers | 1 |
| Chairperson's Statement | 2 |
| Trustees' Report | 3 - 8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Notes to the Financial Statements | 12 - 21 |
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
Trustees Jane Whitfield, Chair Clive Doubleday Paul Ramsey
Chief executive officer Tim Doubleday Company secretary Ruth Doubleday Company registered number 09626673 Charity registered number 1163423 Registered office PO Box 1414 Peterborough PE1 9WG
Tim Doubleday Ruth Doubleday 09626673
Page 1
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
CHAIRPERSON'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022
The chairperson presents their statement for the year.
I am delighted to introduce the Trustees Report with the Financial Statements for 2021/22.
Our main areas of activity are represented by the acronym FEED:
F eeding Educating E mpowering D eveloping
Smile International is passionate about helping to relieve suffering and poverty around the world through our FEED programmes - Feeding, Educating, Empowering and Developing, as well as our Child and Widow Sponsorship programmes. We are dedicated to giving hope to those in need and providing people with an opportunity to develop emotionally, physically, socially and spiritually.
In KOSOVO, we support war widows and their families and provide palliative care to cancer patients. We provide free medical assistance as well as medicines for pain relief. We have our own purpose-built Smile Centre, which accommodates guests and hosts conferences.
In UGANDA, we provide children with an education to help them escape the cycle of poverty through our Child Sponsorship programme. We also focus on empowering individuals and help them to become self-sufficient through our Empowering programme via vocational training courses, so they can earn a living and support their families.
In ZIMBABWE, through our Feeding programme, we provide a meal for many children each school day. As well as feeding children, we also provide food parcels for widows and pastors every month. Through our Developing programme, we are able to build new classrooms, toilet blocks, kitchen shelters and church buildings, as well as safe water supplies to provide fresh water.
In INDIA, we fund a ministry and evangelism training course for men and women, called to serve God and share the Gospel in the local towns and villages. By doing this our team assess the needs of people they meet and can provide support through the village ministry. We also support a preschool every school day which enables them to be more prepared for when they reach school. We provide academic support and encourage the children's social and educational wellbeing.
We thank God for the privilege it is to serve Him and His people and for the wonderful way He has continued to help us care for many struggling children and families across the world during this challenging year. We are so grateful for the generosity and encouragement of our supporters, which has enabled us to maintain and develop our core activities.
Chair of Trustees
Date: 6 July 2022
Page 2
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their annual report together with the financial statements of the Smile International for the 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
Policies and objectives
• To transform whole lives; body and soul, of the most vulnerable people who have been damaged by war, poverty, illness and natural disaster
• To work in effective partnerships to make a real difference to those in need
• To be an organisation where every person and gift of time, money or goods is used to best effect and which exercises good stewardship of resources
• To keep our supporters informed about activities
- To train and develop our staff and volunteers to be effective in their work and ministry
• OUR APPROACH
Our work is characterised by the prayer and giving of people throughout the UK and worldwide.
Pray
Prayer is a valuable part of our ministry and it has a powerful impact on all we do.
Give
We are dependent on voluntary income and through general donations we are able to respond quickly whenever a need arises, as well as continue our work helping to tackle the underlying causes of poverty.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Page 3
SMILE INTERNATIONAL (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
Activities undertaken to achieve objectives
Income
Overall income was £166,398 in 2021/22.
Expenditure
Expenditure was £194,069
We endeavoured to maintain the proportion of expenditure going to charitable activities at more than 75% of our total expenditure. This year the percentage was 90.7% (2021 - 92.9%).
Child Sponsorship
Our Child Sponsorship programme has continued to thrive with the children benefitting from receiving an education to help them escape the cycle of poverty. When a person sponsors a child, it changes their life but what we often forget, is that it changes ours too. Child sponsorship actively turns tears into smiles and helps give a child the support they need to grow and change their lives. Each child is the future of their country, and we are passionate in serving these children so that they can reach their God-given potential.
Widow Sponsorship
It has always been at the heart of what Smile International has done, to care for and look after widows in their time of need. We truly believe that God holds widows close to His heart and this is what drives us to help support, care for and turn their tears into smiles. We feel so passionate about being their support that we have a Sponsor a Widow programme, where people can regularly sponsor a widow for just 66p a day, £20 a month, and become their friend from afar. The widows we help are in desperate situations; they are destitute, alone and need our help. In cultures where women are not encouraged to be independent, the death of their husband is not just life shattering but can be incapacitating. They become vulnerable, exposed, and marginalised. The help they receive from Smile International means they know that someone cares for them, cares about their challenging situation and cares enough to help them through it.
Our work overseas
KOSOVO
Our Smile Centre is our headquarters for our palliative care team, who have so far made over 20,000 home visits since we started the work over a decade ago and many families have received the help and support they so desperately needed that they otherwise would not have had through general medical care. Our dedicated team support and care for seriously ill and dying patients in their home, bringing comfort and dignity to people and help them live life to the full, for whatever time they have left. We have continued to support our sponsored widows and children, with much-needed food parcels.
Page 4
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
ZIMBABWE
We are passionate about feeding the hungry in Zimbabwe each school day. These children are from very deprived families who struggle to survive, which means many children often arrive at school extremely hungry. Some of the children we work with are child-headed families and so do not have any parents or older family members to look after them. We provide food and practical support to these children to ensure that they do not go hungry and that they are kept safe and away from harm. As well as feeding children, we also provide food parcels for widows and pastors regularly. As a result of Smile’s help, local communities have been considerably transformed, through our development work of building a cookhouse and feeding shelter, as well as classrooms, which empowers the local community.
This year we have continued to distribute free masks through our Face Mask Project which has been very successful in Zimbabwe. We made free reusable masks for school pupils so they could return to school and take their exams. This project is proving to be a lifeline for so many, as it not only helps to empower our tailors through our Empowering programme by providing them with much-needed work and income but means people do not have to choose between food, in order to survive, or buying a mask. To be able to use our tailors that have been trained up over the years through our Smile Empowering programmes is so wonderful too and they are really enjoying the responsibility that what they are making is so important.
UGANDA
Many children would love to attend school and learn in order to make a difference to their lives, but very often they are faced with the debilitating despair of progressing into the cycle of poverty. It is such a privilege to have the opportunity of an education and we do not want children to miss out on that privilege just because they are poor. In Uganda we have a Child Sponsorship programme where we provide school fees, and other necessities for children, in order that they can attend school and stand a real chance in achieving their dreams.
We are also passionate about empowering those who dream to become self-sufficient, and we provide this opportunity through our micro-financing programmes. It is all about how to make a small business sustainable which will therefore generate income for the future.
INDIA
Our work in India continues to fund a ministry and evangelism training course for men and women, called to serve God and share the Gospel in the local towns and villages. During these meetings we provide the students with study books and a meal, so that they can be more focussed and be more effective in their learning. We also help to cover their transport costs. By doing this our team assess the needs of people they meet and can provide support through the village ministry. We also support a preschool every school day which enable them to be more prepared for when they reach school. We provide academic support and encourage the children’s social and educational wellbeing.
Main activities undertaken to further the Company's purposes for the public benefit
The Trustees are mindful of the Charity Commission's guidance on reporting on public benefit when reviewing our aims and objectives and planning our activities. Smile International work with some of the poorest people around the world providing food, education, spiritual and medical care to those in need, irrespective of their race, faith or nationality, and have ensured that the activities undertaken contribute to the aims and objectives of the charity. In addition, by putting to good use items that would otherwise go to waste, the charity has a positive impact on the environment. The Trustees are therefore confident that Smile International meets the public benefit requirements.
Page 5
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance
Financial review
Company Status
In 2017, Smile International upgraded its status to that of a limited company and keeping its registered charitable status.
Smile International is a company limited by guarantee, registered in England and Wales. Company registered number 9626673. Registered Charity Number 1163423. Smile International is also registered with the Fundraising Regulator.
As a limited company and registered charity, our accounts are independently reviewed and the accounts will be submitted to Companies House.
We also report to the Charity Commission, an independent body that regulates activities of charities in the UK.
Going Concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Reserves Policy
The Trustees continued to review the appropriate level of reserves required annually. The main purpose of our reserves is:
-
To meet our statutory and contractual liabilities.
-
To enable us to react quickly to new challenges when faced with extreme need requiring crisis relief in times of war, natural disaster, political instability or disease.
In practice this means aiming to have at least 3 months of running costs together with a crisis contingency of £10,000. Reserves of the charity fall into two types:
Restricted funds
These are funds where a donor has stipulated how their donation is to be spent. In most cases there will be a time difference between when such funds are received and when they are spent. In particular, there may be a need for immediate relief work, followed by longer-term rehabilitation and development projects, resulting in part of the restricted appeal monies being expended over a number of years.
Sometimes it takes time to raise sufficient funds to be able to start a project so there may also be a delay in making expenditure.
Unrestricted funds
These are funds where there is no stipulation from the donor as to how the donation may be spent.
Within certain operating needs, the Trustees' policy is to ensure that all funds are expended as soon as possible, in order to fulfil the purpose of the donations, while guaranteeing these resources are used effectively. Not only does this achieve the goals of the charity to help those in need, but this also means that we can give speedy feedback to donors, which helps inspire confidence in our work and motivates donors to continue their support.
Page 6
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management
Constitution
Smile International is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 06/06/15.
Methods of appointment or election of Trustees
The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of Articles of Association.
Financial risk management
The Trustees acknowledge their responsibility to undertake a risk assessment of the Charity's work and regularly review all aspects of Smile International's work. Risk management plans are implemented. The Trustees keep this process under regular review. The main risks are financial, and in particular:
-
The shortage of unrestricted income to maintain expenditure and our reserves policy.
-
The uncertainty of foreign exchange rate fluctuations and inflation abroad on the cost of projects.
-
Fraud, through assets being abused or misdirected through poor financial controls or dishonesty in countries where we operate.
We regularly monitor and, where necessary, address these risks.
Plans for future periods
The ongoing main objective for 2022/23 is to continue working towards placing Smile on a firmer financial footing by maintaining our existing projects. The Trustees would like to express their gratitude to all our supporters and donors, big or small, and their deep appreciation to all our staff, volunteers, supporters and partner organisations for their commitment and contribution to the vision and values of Smile International. We continue to trust the Lord as we move forward in faith.
COVID-19 Update
We continue to remain operational and fully compliant with the government guidance on managing the risk of Covid-19, as we have still been in and out of lockdowns, around the world. We have remained in regular contact with our teams overseas and have continued to work with them during this crisis, by providing support as they follow their own country’s guidance. Some of the countries have been in lockdowns at different times to each other, according to their case rates, and rules and approaches have understandably varied according to each country.
Although we are still in a global pandemic and daily face constantly changing situations, we have managed the demands confidently and professionally. We appreciate that COVID will remain with us for some time, and it is another variable that we have included in our framework for the life and work of Smile International moving forward. From the Trustees to our teams, to our beneficiaries, we have all adapted to this new way of life and work and we continue to remain as flexible as possible. Systems are in place and plans have been drawn up to manage situations of this nature, both now, and in the future.
Page 7
SMILE INTERNATIONAL (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 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 then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 6 July 2022 and signed on their behalf by:
Chair of Trustees
Page 8
SMILE INTERNATIONAL (A Company Limited by Guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022
Independent Examiner's Report to the Trustees of Smile International ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
Responsibilities and Basis of Report
As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Dated: 06 July 2022 Jack Fryer ACA Hedley Dunk Limited Chartered Accountants
Page 9
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income from: Donations and legacies 3 Other income TOTAL INCOME Expenditure on: Raising funds Charitable activities 4 TOTAL EXPENDITURE RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds 2022 £ 165,218 - 165,218 18,081 174,808 192,889 189,586 (27,671) 161,915 |
Restricted funds 2022 £ 1,180 - 1,180 - 1,180 1,180 - - - |
Total funds 2022 £ 166,398 - 166,398 18,081 175,988 194,069 189,586 (27,671) 161,915 |
Total funds 2021 £ 224,291 - |
|---|---|---|---|---|
| 224,291 | ||||
| 13,269 175,336 |
||||
| 188,605 | ||||
| 153,900 35,686 |
||||
| 189,586 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 21 form part of these financial statements.
Page 10
SMILE INTERNATIONAL (A Company Limited by Guarantee) REGISTERED NUMBER: 09626673
BALANCE SHEET AS AT 31 MARCH 2022
| Note FIXED ASSETS Tangible assets 9 CURRENT ASSETS Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 NET CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS EXCLUDING PENSION ASSET TOTAL NET ASSETS CHARITY FUNDS Restricted funds 12 Unrestricted funds 12 TOTAL FUNDS |
2,917 5,350 8,267 (111,364) |
2022 £ 265,012 265,012 3,017 21,383 24,400 (106,073) (103,097) 161,915 161,915 161,915 161,915 161,915 |
2021 £ 271,259 271,259 (81,673) 189,586 189,586 189,586 189,586 189,586 |
|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
QA��e¼ Chair of Trustees
Chair of Trustees Date: 6 July 2022
The notes on pages 12 to 21 form part of these financial statements.
Page 11
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. General information
Smile International is a private limited company by guarantee registered in the UK. It is also a registered charity in the UK, with its operations and principal activities disclosed in the Trustees' Report. The principal place of business is the same as the registered address.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Smile International 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.
2.2 Going concern
The financial statements are prepared on a going concern basis. After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate current reserves and future sources of income to continue in operational existence for at least twelve months following the approval of these financial statements.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Page 12
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.4 Expenditure (continued)
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
| Freehold property | - | 2% straight line |
|---|---|---|
| Fixtures and fittings | - | 25% reducing balance |
| Office equipment | - | 25% reducing balance |
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and 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.
Page 13
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
2.10 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
3. Income from donations and legacies
| Donations Legacies Total 2021 |
Unrestricted funds 2022 £ 138,004 27,214 165,218 198,422 |
Restricted funds 2022 £ 1,180 - 1,180 25,869 |
Total funds 2022 £ 139,184 27,214 166,398 224,291 |
Total funds 2021 £ 164,392 59,899 |
|---|---|---|---|---|
| 224,291 | ||||
Page 14
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
4. Analysis of expenditure on charitable activities
Summary by fund type
| Projects Total 2021 |
Unrestricted funds 2022 £ 174,808 149,467 |
Restricted funds 2022 £ 1,180 25,869 |
Total funds 2022 £ 175,988 175,336 |
Total funds 2021 £ 175,336 |
|---|---|---|---|---|
5. Analysis of expenditure by activities
| Projects Total 2021 |
Activities undertaken directly 2022 £ 43,221 46,668 |
Support costs 2022 £ 132,767 128,668 |
Total funds 2022 £ 175,988 175,336 |
Total funds 2021 £ 175,336 |
|---|---|---|---|---|
Analysis of direct costs
| Projects Sponsorship Total 2021 |
Projects 2022 £ 31,711 11,510 43,221 46,668 |
Total funds 2022 £ 31,711 11,510 43,221 46,668 |
Total funds 2021 £ 29,558 17,110 |
|---|---|---|---|
| 46,668 | |||
Page 15
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
5. Analysis of expenditure by activities (continued)
Analysis of support costs
| Projects 2022 £ Staff costs 51,677 Depreciation 6,247 Travel 4,958 Advertising 3,924 Rent & Rates 2,582 Insurance 1,634 Printing, postage & stationery 10,012 Computer costs 17,484 Legal & Professional 14,090 General expenses 3,316 Bank charges 6,538 Telephone 7,365 Accountancy costs 2,940 132,767 6. Independent examiner's remuneration Fees payable to the Company's independent examiner for the independent examination of the Company's annual accounts Fees payable to the Company's independent examiner in respect of: All other services not included above |
Total funds 2022 £ 51,677 6,247 4,958 3,924 2,582 1,634 10,012 17,484 14,090 3,316 6,538 7,365 2,940 132,767 2022 £ 1,740 1,200 |
Total funds 2021 £ 39,701 6,416 3,560 3,168 2,862 1,809 8,650 15,024 12,836 6,644 5,070 19,988 2,940 |
|---|---|---|
| 128,668 | ||
| 2021 £ 1,740 1,200 |
Page 16
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
7. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £ 65,542 1,913 1,447 68,902 |
2021 £ 47,717 732 1,178 |
|---|---|---|
| 49,627 |
The average number of persons employed by the Company during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Staff | 4 | 4 |
No employee received remuneration amounting to more than £60,000 in either year.
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £2,474).
Page 17
(A Company Limited by Guarantee)
SMILE INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9. Tangible fixed assets
| Cost or valuation At 1 April 2021 At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property £ 287,100 287,100 17,864 5,742 23,606 263,494 269,236 |
Fixtures and fittings £ 420 420 243 44 287 133 177 |
Office equipment £ 4,374 4,374 2,528 461 2,989 1,385 1,846 |
Total £ 291,894 |
|---|---|---|---|---|
| 291,894 | ||||
| 20,635 6,247 |
||||
| 26,882 | ||||
| 265,012 | ||||
| 271,259 |
10. Debtors
| Due within one year Other debtors Prepayments and accrued income |
2022 £ 1,504 1,413 2,917 |
2021 £ 1,511 1,506 |
|---|---|---|
| 3,017 |
11. Creditors: Amounts falling due within one year
| Other loans Other taxation and social security Pension fund loan payable Other creditors Accruals and deferred income |
2022 £ 10,000 2,417 309 95,646 2,992 111,364 |
2021 £ 10,000 1,983 280 90,870 2,940 |
|---|---|---|
| 106,073 |
Page 18
(A Company Limited by Guarantee)
SMILE INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
12. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds - all funds Restricted funds Feeding Educating Empowering Total of funds Statement of funds - prior year Unrestricted funds General Funds - all funds Restricted funds Feeding Educating Empowering Children and Young People Legacy Total of funds |
Balance at 1 April 2021 £ 189,586 - - - - 189,586 Balance at 1 April 2020 £ 153,900 - - - - - 153,900 |
Income £ 165,218 340 290 550 1,180 166,398 Income £ 198,422 269 240 360 25,000 25,869 224,291 |
Expenditure £ (192,889) (340) (290) (550) (1,180) (194,069) Expenditure £ (162,736) (269) (240) (360) (25,000) (25,869) (188,605) |
Balance at 31 March 2022 £ 161,915 |
|---|---|---|---|---|
| - - - |
||||
| - | ||||
| 161,915 | ||||
| Balance at 31 March 2021 £ 189,586 |
||||
| - - - - |
||||
| - | ||||
| 189,586 |
Page 19
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Summary of funds
Summary of funds - current year
| General funds Restricted funds Summary of funds - prior year General funds Restricted funds |
Balance at 1 April 2021 £ 189,586 - 189,586 Balance at 1 April 2020 £ 153,900 - 153,900 |
Income £ 165,218 1,180 166,398 Income £ 198,422 25,869 224,291 |
Expenditure £ (192,889) (1,180) (194,069) Expenditure £ (162,736) (25,869) (188,605) |
Balance at 31 March 2022 £ 161,915 - |
|---|---|---|---|---|
| 161,915 | ||||
| Balance at 31 March 2021 £ 189,586 - |
||||
| 189,586 |
14. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 265,012 8,267 (111,364) 161,915 |
Total funds 2022 £ 265,012 8,267 (111,364) 161,915 |
|---|---|---|
Page 20
SMILE INTERNATIONAL
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
14. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £ 271,259 24,400 (106,073) 189,586 |
Total funds 2021 £ 271,259 24,400 (106,073) |
|---|---|---|
| 189,586 |
15. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £1,447 (2021 - £1,178). Contributions totalling £309 (2021 - £280) were payable to the fund at the balance sheet date and are included in creditors.
16. Operating lease commitments
At 31 March 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | |||
| Not later than | 1 | year | 513 | - |
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Operating lease rentals | 756 | - |
| Changes in lease payments arising from COVID-19 related rent | ||
| concessions | - | - |
17. Related party transactions
There were no related party transactions during the year (2021 - £ Nil)
Page 21