**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 2023**
## **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 - 22|
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023**
|**Trustees**|Jane Whitfield, Chair|
|---|---|
||Clive Doubleday|
||Paul Ramsey (resigned 13 April 2023)|
||Sandra Boreham (appointed 31 March 2023)|
||Cheryl Summers (appointed 31 March 2023)|
**Company registered number** 09626673 **Charity registered number** 1163423 **Registered office** PO Box 1414 Peterborough PE1 9WG **Company secretary** Ruth Doubleday **Chief executive officer** Tim Doubleday
Page 1
SMILE IKfERNATIONAL
IA G(ATrpany Limited by Guar•nt•e)
CHAIRPERSON'S STATEMEp¥r
FOR THE YEAR ENDED 31 IAARCH 2023
The chairperson presents their slatement for the year.
l am de1hted to Introdu the Tnt•e$ Report with the Finala1 Statements for 2022r23.
Our main areas of ac are represented by the acronym FEED..
F eoding
E ducaling
E mpoweTing
D gvekjping
Smi18 Intemalbonal ly passionate atrt hdpirwJ to reFVe SLrflering and p)v* around the world through our
FEED programme8 - Feeding, Educating. Empowering and Developing. as well as our Child and Widow
Sponsorship programmes. We are dedbcated to giving hope to those tn need and provtding people with an
opportunity to develop emotionalky, physicalty. soclty and syrituaty.
In KOSOVO. we have prevKMtsty suppted war and their families and wovthd palliatNe care to cancer
patients. We pmided free med&18SsIStaTrCe as wèm as med1r1e5 for pwn Tell. We our own purp)8e-
built Smilo Cen. which accommfxlales guests and hosts wifgrenc88.
In UGANDA, we PfOVKle chihyren with an education to help them escape the CYC of povety through our Child
Sponsorship pfogramme. We also focus on emFowering indiwduals and help them lo bacome self-sufflcient
through our EmkThvering prcgramme, earn a Imng and 8UPPOrt thelr f11188.
In ZIM&4BWE, through our Fg•Iing progranme. a m1 for many chikjren exh school day. A8 well
as feedino chiklren. we also provvje feod parceL8 for and pastors every month. Through our Dgveloping
programme. we are abb to build new classrooms, tOlt bb¢k$. kitchen shsllers and church buildings, as well a$
Safe waler supplies to provvje fresh w8t•r.
In INDIA. we fund a mlnk8try and evang8li8m training o)ur8e for mi3n and Wom, called to sepie God and 8hare
the Gospel in Ihe k)¢al t(13 and vilL4ges. By d'ng thk8 our team asse¥s Its needs of people they Tneel and
can provide support through the vilLage ministry. We also suprort 8 pwchwl every school day whth enable5
them to b8 more prepared for when they reach Sd1. We provide academt siwort and encourage tho
chlbJren'8 80cl and educational 1th1n9.
Vve thank God for the rKiwlege rt is to serve Him and His pwle and for the wonderful way He has continved lo
help us care for many struggling children and familes across the world during thhry challenging year. We are so
grateful for the generosty and erwul8gfjnt of our suworter8. whth hag enabled us to maintain and develop
our core ath"vitio$.
Chair of Trustees
Date.. 18 July 2023
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees present their annual report together with the financial statements of Company for the period 1 April 2022 to 31 March 2023. 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
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 2023**
## **Objectives and activities (continued)**
## **Activities undertaken to achieve objectives**
Income
Overall income was £169,489 in 2022/23.
Expenditure
Expenditure was £203,962
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 90.2% (2022 - 90.7%).
## **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
In 2011 we set out with a plan to start a palliative care programme in Kosovo to provide professional end of life care for terminally ill patients. Our aim was to support the care of seriously ill and dying patients in their homes, bringing comfort and dignity to people and help them live life to the full, for whatever time they have left. Since then, we have trained over 3,200 doctors and nurses in end-of-life care. We have completed over 21,500 homecare visits and have treated thousands of patients. We have therefore accomplished our mission which we set out to achieve in 2011 and will therefore no longer be running our palliative care project in Kosovo. We have felt privileged to serve the people of Kosovo during the past decade with this project and are pleased that the government of Kosovo is now helping to provide healthcare for cancer patients.
We have also been able to support our sponsored widows and children, with much-needed food parcels over the years but are pleased to report that the children and widows are now empowered and are able to support themselves.
Page 4
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **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.
## 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 2023**
## **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 enable us to react to challenges when they arise.
In practice this means aiming to have at least £500 kept in our reserves. The trustees can confirm that this target amount has been met for this financial year.
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 2023**
## **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 2023/24 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.
Page 7
SMILE IKfERNATIONAL
{A Company Limltsd by GuaAnt••
TRUSTEES. REPORT {coKfiNUED)
FOR THE YEAR ENDED 31 MARCH 2023
Statom•M of TN6t8. r•spon8iblllti•8
The TTU$taes Ivtho are also the dIred0 of the Company for the purposes of company lawl are reskxjnsible for
preparing the Trustees, Report arKI the financ statements In accordan applicable law and United
lQngdom Accounting Standards (United Kingdom Generalty Awted ACCntil9 Practice).
Company law requires the Trustees to prepare financial st*emerts for each financral year. Under company law,
the Trustees musl not approve the financpl statements unless they are sats$r that they give a true and fair
view of the stale of affairs of th8 Company and incoming resource5 and applulion of resource¥. including
its income and eXndre, for th* penod. In preparing these financial statements, the TTUStees are required
select $uitable aecounbng poIleS and then apply them consi$lenVy.'
observe the meth¢xls and prinuple¥ of the charib.es SORP IFRS 102)..
make judgments and accounbng estimates that are reasonable and prudent
$tale whether 8ppli¢abte UK Accounting Standards IFRS 102) have boon folkAved. $uty'ect to any
material departures dwlo¥ed arKI explained in the financHI statsm6nts."
prepare the finanal statements on the gjing concem basis unless It 1$ inapproprth to presume that the
Company win ¢ontinu• in bu*ln8U.
The Truste68 are responsib for keeping adequatè accounting reccrfds that are Sufficit lo Show and explain
the Companys transactions and disck)se wilh rea$cab acCUY al ony time the financial position of Ihe
Company and ènable them to ensure th8t the finana81 slatom8nt8 compty wth the Compantes Act 20C6. They
are also rosponsible for sefeguarding the assets of the Company aTrJ hence for taking reason81)18 8ty ft)r the
prevention and detect of fraud and other iTrtyuLgrits8s.
)provtrJ by order of the member8 ¢M th& board of Trustees and signed on their b8haW by.
Jan• Whlffi•ld
Chair of Trusteés
Date.. 18107r2023
Page 8
## **SMILE INTERNATIONAL (A Company Limited by Guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2023**
## **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 2023.
## **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:
1. accounting records were not kept in respect of the Company 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 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
4. 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: 18/07/2023 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 2023**
|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
2023
£
167,509
-
167,509
20,066
181,916
201,982
161,915
(34,473)
127,442|Restricted
funds
2023
£
1,980
-
1,980
-
1,980
1,980
-
-
-|Total
funds
2023
£
169,489
-
169,489
20,066
183,896
203,962
161,915
(34,473)
127,442|Total
funds
2022
£
166,398
-
166,398
18,081
175,988
194,069
189,586
(27,671)
161,915|
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 22 form part of these financial statements.
Page 10
SMILE INTERNATIONAL
(A Company Llmitod by Guarantso
REGISTERED NUMBER: 096266n
BALANCE SHEET
AS AT 31 MARCH 2023
2023
2022
FIXED ASSErs
Tangible assets
258.891
265,012
258,891
265,012
CURRENT ASSETS
Debt¢Jf8
Cash at bank and in hand
10
4.961
1.528
2,917
5,350
6,489
8.267
Creditors.. amounts faIng due wthin Lv
year
11
1137,9381
(111,364)
NET CURRENT LIABILITIES
TOTAL ASSEfs LESS CURREKr
LIABILITIES
NEf ASSETS EXCLUDING PENSION
ASSET
(131.4491
(103,09n
127,442
161,915
127,442
161.915
TOTAL NEf ASSErs
127.442
161,915
CHARITY FUNDS
R•strict8d funds
Unr68trictthJ fund8
12
12
127.442
161,915
TOTAL FUNDS
127.442
161,915
The Company was enlitlod to axempkn from audrt uft 9ection 477 of the Companies Act 2008.
The members have not required the comkwy to cl)tain an alth for the yaar in question in a¢¢ordan¢e with
gection 476 of Cempanie8 21x6.
The Trustees a¢knOedge their r8sponsibilitEs for complymg wth the requirements of the Act with re¥peGt to
accounting records and preparatN of financial statements.
The financial statements ha prepared in vxcordanr* with tha provlsions applrAblg tr) entitw $yty"oct to
the small companies regime.
The fnanctal ststements ap0 arKI authortsed for issue by the Trustees sned on their behalf by..
Jane Whiffield
Chair of Trusteeg
Date: 18107r2023
The noles on pages 12 to 22 fcrfm part of Ihese fw7anco1 statn8rrts.
Page11
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **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 2023**
## **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 2023**
## **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 2022|Unrestricted
funds
2023
£
140,346
27,163
167,509
165,218|Restricted
funds
2023
£
1,980
-
1,980
1,180|Total
funds
2023
£
142,326
27,163
169,489
166,398|Total
funds
2022
£
139,184
27,214
166,398|
|---|---|---|---|---|
||||||
Page 14
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **4. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Projects
Total 2022|Unrestricted
funds
2023
£
181,916
174,808|Restricted
funds
2023
£
1,980
1,180|Total
2023
£
183,896
175,988|Total
2022
£
175,988|
|---|---|---|---|---|
||||||
## **5. Analysis of expenditure by activities**
|Projects
Total 2022|Activities
undertaken
directly
2023
£
43,548
43,221|Support
costs
2023
£
140,348
132,767|Total
funds
2023
£
183,896
175,988|Total
funds
2022
£
175,988|
|---|---|---|---|---|
||||||
## **Analysis of direct costs**
|Projects
Sponsorship
Total 2022|Projects
2023
£
33,252
10,296
43,548
43,221|Total
funds
2023
£
33,252
10,296
43,548
43,221|Total
funds
2022
£
31,711
11,510
43,221|
|---|---|---|---|
|||||
Page 15
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **5. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Projects
2023
£
Staff costs
57,193
Depreciation
6,121
Travel
5,742
Advertising
10,134
Rent & Rates
3,483
Insurance
1,536
Printing, postage & stationery
7,962
Computer costs
11,166
Legal & Professional
13,883
General expenses
7,331
Bank charges
7,842
Telephone
4,895
Accountancy costs
3,060
140,348
**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
2023
£
57,193
6,121
5,742
10,134
3,483
1,536
7,962
11,166
13,883
7,331
7,842
4,895
3,060
140,348
2023
£
1,840
1,220|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|
Page 16
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **7. Staff costs**
|2023
£
Wages and salaries
72,929
Social security costs
1,745
Contribution to defined contribution pension schemes
1,582
76,256
The average number of persons employed by the Company during the year was as follows:
2023
No.
Staff
4|2022
£
65,542
1,913
1,447|
|---|---|
||68,902|
||2022
No.
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 (2022 - £NIL).
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).
Page 17
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **9. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2022
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|Freehold
property
£
287,100
287,100
23,606
5,742
29,348
257,752
263,494|Fixtures and
fittings
£
420
420
287
33
320
100
133|Office
equipment
£
4,374
4,374
2,989
346
3,335
1,039
1,385|Total
£
291,894
291,894|
|---|---|---|---|---|
|||||26,882
6,121
33,003|
|||||258,891|
|||||265,012|
## **10. Debtors**
|**Due within one year**
Other debtors
Prepayments and accrued income|2023
£
2,639
2,322
4,961|2022
£
1,504
1,413|
|---|---|---|
|||2,917|
**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|2023
£
10,000
2,597
328
121,541
3,472
137,938|2022
£
10,000
2,417
309
95,646
2,992|
|---|---|---|
|||111,364|
Page 18
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **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
**Total of funds**|Balance at 1
April 2022
£
161,915
Balance at 1
April 2022
£
-
-
-
-
161,915
Balance at
1 April 2021
£
189,586
-
-
-
-
189,586|Income
£
167,509
Income
£
926
387
667
1,980
169,489
Income
£
165,218
340
290
550
1,180
166,398|Expenditure
£
(201,982)
Expenditure
£
(926)
(387)
(667)
(1,980)
(203,962)
Expenditure
£
(192,889)
(340)
(290)
(550)
(1,180)
(194,069)|Balance at
31 March
2023
£
127,442|
|---|---|---|---|---|
|||||Balance at
31 March
2023
£
-
-
-
-|
|||||127,442|
|||||Balance at
31 March
2022
£
161,915|
|||||-
-
-
-|
|||||161,915|
Page 19
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **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 2022
£
161,915
-
161,915
Balance at
1 April 2021
£
189,586
-
189,586|Income
£
167,509
1,980
169,489
Income
£
165,218
1,180
166,398|Expenditure
£
(201,982)
(1,980)
(203,962)
Expenditure
£
(192,889)
(1,180)
(194,069)|Balance at
31 March
2023
£
127,442
-
127,442|
|---|---|---|---|---|
|||||Balance at
31 March
2022
£
161,915
-
161,915|
## **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
2023
£
258,891
6,489
(137,938)
127,442|Total
funds
2023
£
258,891
6,489
(137,938)
127,442|
|---|---|---|
Page 20
**SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **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
2022
£
265,012
8,267
(111,364)
161,915|Total
funds
2022
£
265,012
8,267
(111,364)
161,915|
|---|---|---|
## **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 £1,582 (2022 - £1,447). Contributions totalling £328 (2022 - £309) were payable to the fund at the balance sheet date and are included in creditors.
## **16. Operating lease commitments**
At 31 March 2023 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
||||2023|2022|
|---|---|---|---|---|
||||£|£|
|Not later than|1|year|-|513|
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
||2023|2022|
|---|---|---|
||£|£|
|Operating lease rentals|-|756|
|Changes in lease payments arising from COVID-19 related rent|||
|concessions|-|-|
Page 21
## **SMILE INTERNATIONAL**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **17. Related party transactions**
The spouse, son and daughter of a Trustee are employed by the charity. They received total remuneration for their services to the charity of £70,623 (2022 - £64,080), which is included in staff costs.
Donations received during the year from Trustees amounted to £6,236 and are included in income from donations.
Page 22