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2022-03-31-accounts

Annual Report of the Board of Trustees

SMART WORKS (GREATER MANCHESTER)

CONTENTS

Annual Report of the Board of Trustees for the Year Ending 31 March 2022 ........................................... 2 Independent examiner’s report to the Trustees of Smart Works (Greater Manchester) ....................... 14 Statement of Financial Activities including an Income and Expenditure Account .................................. 15 Balance Sheet .......................................................................................................................................... 16 Notes to the Accounts ............................................................................................................................. 17 Reference and administrative information ............................................................................................. 28

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Annual Report of the Board of Trustees for the Year Ending 31 March 2022

The Trustees, who are also the directors of the charity for the purposes of the Companies Act, present their annual report together with the accounts of Smart Works (Greater Manchester) for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out on page 17 and comply with the charity’s governing document, applicable laws and the requirements of Statement of Recommended Practice on ‘Accounting and Reporting by Charities’ issued in 2019.

1. Objectives and activities

Smart Works (Greater Manchester) is a UK charity that provides high quality interview clothes, styling advice and interview training to women in need. We give women the confidence, the self-belief and the practical tools they require to succeed at interview and start a new chapter of their life.

The charity’s objects are the relief of financial hardship and the relief of unemployment for the public benefit through the promotion of economic independence among women in Greater Manchester. Smart Works (Greater Manchester) is part of a network of 6 other regional charities that deliver the Smart Works Charity service in their area. To deliver this, Smart Works (Greater Manchester) was created in 2015 with a clear mission and vision to help more women back into the workplace by giving them the clothes and the confidence they need to succeed at job interview.

The core of the Smart Works (Greater Manchester) service is a 1-2-1 two-hour First Dressing appointment delivered with clients in our operational centre in the centre of Stockport. During the first hour, working with a Styling Volunteer, each woman receives a complete outfit of high-quality clothing and accessories (hers to keep). The second hour is spent with a Coaching Volunteer providing personalised interview training and during which the client populates an interview preparation booklet. This short intervention has a significant impact as our clients start believing in their own ability to succeed. Once they get the job, we offer our clients a one-hour Second Dressing to return for an additional 5 to 7 items of clothing to help them build a working wardrobe to see them through to their first pay cheque.

Throughout the Covid-19 pandemic since the first lockdown in March 2020, and in line with government regulations regarding travel and business operating restrictions, Smart Works (Greater Manchester) continued to offer its adapted core services during this financial year to 31[st] March 2022 with the inclusion of its online personalised Career Coaching service to support unemployed women with everything from confidence building, interview skills development, how to apply for a job, how to write a CV etc.

The charity also adapted its core Styling and Interview Coaching services enabling these to be delivered remotely to clients during periods of travel and business opening restrictions, and only

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providing face to face when this was legally (and sensibly) permissible. These services have continued to be providing during this year as our operational services, delivered by both staff and volunteers, started to return to normal starting with “in person” Styling services returning in mid April 2021 supported by remote Coaching, and a more gradual return to both services being provided in person from 15 June 2022.

  1. Achievements and performance

Highlights

Throughout 2021/22 Smart Works (Greater Manchester) has rebuilt it’s in person services while maintaining key aspects of its adapted approach as developed in response to the multiple challenges represented by the Covid-19 pandemic. The charity adhered to all rules and regulations to protect the health, safety and well-being of its clients, its volunteers and its staff and has stayed free from any Covid-19 related incidents throughout this financial year, which is again a credit to its staff team, to its volunteers and to the Board.

Our highlights for the year can be summarized as:

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Operational Performance:

In the full year ending 31[st] March 2022, Smart Works (Greater Manchester) supported 621 women which included providing 343 First Dressings and 196 Career Coaching appointments and delivering over 100 client appointments in both February and March 2022, our highest ever month for client service delivery and ending the year on a particularly strong Q4.

At the start of the year in April 2021, the charity continued to be impacted by the final rules and restrictions stemming from the third Greater Manchester (Tier4) and national lockdown imposed on 6[th] December and which was lifted on 12[th] April when non-essential retail was allowed to reopen. As experienced in the previous financial year, the operational offices of many of our key referral partners remained closed to staff and there were few face to face appointments being offered by Job Centres and other partners which impacted our client referrals. We also appointed a new Trustee, Dr Elsa Zekeng PhD, a highly respected young scientist and entrepreneur who has become a valued member of our Board.

By end of the second quarter in September 2021, with various rules still in place for indoor spaces referral partners gradually returned to work and jobs in sectors such as retail, travel and hospitality started to become available. A new Client Delivery Lead was appointed responsible for ensuring the quality and efficacy of client service delivery both within our centre and online.

In the first half of the year the charity returned a strong performance in the circumstances delivering 230 First Dressing and Career Coaching appointments,

During the second half of the year, our Lead Trustee for Risk and Governance delivered an updated Risk Appetite Assessment and Risk Review, and the charity received a particularly favourable review following a visit by the Smart Works HQ Head of Wardrobe. A highly successful pre-Christmas Fashion and Fizz social event raised c. £7.5k and yet more corporate and individual donations were received from our supporters.

In the second half of the year a further 308 client appointments were delivered demonstrating how hard the growing staff team had worked to secure client appointments ending the financial year with a monthly run rate of client appointments that meets or exceeds those of pre-pandemic levels. The final staff role, Outreach and Engagement Lead, has been filled by an excellent candidate who has made a strong impact in her first two months and the charity is now able to provide even more face-to-face outreach to referral partners across the 10 boroughs of Greater Manchester, as well as having the resources to host its own and its first ever Job Fair at the end of March.

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With the staff being at full complement, this now enables our Business Manager to lead the staff and volunteer team and to work more on the new 3 Year Strategy which was unveiled at a national level at the end of March. We are excited with the core components underpinning the new strategy and have committed Smart Works Greater Manchester to the delivery of even more challenging client beneficiary targets for the coming 3 years to 31[st] March 2025.

Management of the charity

The Board remains effective and focussed on the strong operational performance of the charity, underpinned by prudent financial management and robust governance with greater support having become available to staff and trustees alike from the national Smart Works headquarters team. As in the previous 2 financial years, all Trustees have formalised areas of leadership of the charity such as Wardrobe, Risk and Compliance, Staffing, Referral Partnerships, DE&I and Fund Raising. We replaced the Trustee who resigned in August 2020 due to personal circumstances during the pandemic with a new Trustee in the first quarter of the year. The Board was able to resume face to face meetings with the first taking place in the centre on 13[th] November 2021 following which it was approved that we would remain in our current centre in Mellor House, Stockport, for a further 3 years and we would begin to explore the possibility (and affordability) of opening a second Smart Works (Greater Manchester) operational centre in Manchester. The board are unified it its agreement to the new 3- year plan which begins in the new financial year.

Following on from the Covid-19 Risk Assessment that was undertaken in July 2020, a new Risk Appetite Review and Assessment was undertaken in the third quarter with the key risk identified being the requirement to sign a new 3-year lease of the existing premises.

At the end of this financial year, Smart Works (Greater Manchester) has a full complement of 4 staff (3.5 FTE) including the Business Manager plus a Kick Start contract employee is with the charity for a 6- month period from the end of March 2022.

To deliver our services to clients, our charity continues to rely on the loyal support and dedication of our regular team of Styling and Coaching volunteers, as well as ad hoc volunteers for wardrobe, stock management and events. Some volunteers chose to leave the charity when lockdown finally ended however the Business Manager has recruited over a dozen new volunteers who have all be professionally on-boarded, trained and who have received mandatory safeguarding training. During the year, a new Interview Booklet was developed and one of the charities longest-serving coaches was acknowledged as having played a materially important contribution to its development.

We have retained the Smart Works (Greater Manchester) Ambassadors who promote the good works of the charity and raise awareness of our activities across the region, these being Caroline RobertsCherry, a BAFTA-winning TV Producer and Michelle Ackerley, a national TV Broadcaster, and Katy Leeson, a LinkedIn “Top Voice” and leading Manchester-based social media expert. Each Ambassador led an event towards the end of the financial year, as soon as indoor hospitality events were again permitted:

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Growing Awareness of the Charity

Despite being challenged as Greater Manchester reawakened from a long period of lockdown and short-term releases from lockdown, the charity took every opportunity it could to raise awareness with corporate supporters and public sector bodies alike.

We made better use of our membership of Manchester’s leading networking forum, ProManchester, and were featured several times in its online articles and various Trustees attended events during the year when events were allowed. Our main message for the year was that we have worked extremely hard to provide services, both face to face and online, in line with the definition of “non-essential retail” and remain a reliable, effective and efficient organisation providing essential pre-employment services.

During the second half of the year, such was the growing seeds of the economic recovery of Greater Manchester across those sectors where our clients are frequently employed (such as retail, healthcare, hospitality and customer service), we participated in multiple new pre-employment support initiatives with DWP Job Centres across Greater Manchester, of particular note being Sector Based Work Programmes (SWAP’s) and in an initiative led by the Business Manager, we worked far more closely with local Housing Associations such as Stockport Homes, Great Places, Places for People who also provided grants to support our “hyper local” outreach to engage with identified areas of social depravation within specific boroughs.

Away from our normally strong referral base in South Manchester, the charity continued to strive for client referrals from less well represented boroughs. and in line with our re-launched Fashion Your Own Future initiative to reach unemployed 16 to 25 year olds, engagement with The Manchester College led to the charity participating in 3 Job Fairs with additional focus in this area during the coming financial year.

While fewer pandemic related grants have been available during the year, the charity has continued to ensure that both the public sector bodies commissioning support services to unemployed women, and those public and private sector organisations responsible for awarding grants, understand the effectiveness of the services we provide, and the robustness of our organisation resulting in the representatives of the charity being invited to speak at over a dozen events on this subject during the financial year. International Women’s Day 8[th] March 2022 was as busy as it always is for successful awareness raising with all of respective Smart Works audiences, reaching them across all of our active platforms.

With the appointment of a full staff team, in the second half of the year the charity was able to dedicate more skilled resources to our social media campaigns. Our most viewed post of the year was an Instagram reel posted two weeks before our Fashion and Fizz event in November and which received over 3,500 views and in that same month a major new focus on gaining new LinkedIn followers has delivered extremely positive results building every month since then.

As stated at the end of last year, our plan remains to build our social media reach and build this community through compelling and engaging content including “She Got The Job” posts and showcasing the excellent clothing that Smart Works (Greater Manchester) has within its showroom. During this year we have, and we will continue, to seek ways to encourage unemployed,

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disadvantaged women to come to us through a positive portrayal of our activities in a year-round stream of posts across our platforms. Through social marketing, our volunteers also remain engaged in, and are motivated by, our social media activities and that we convert our loyal but passive charity supporters into active and engaged social media followers encouraging them to feel personally connected with our charity.

In this second half of the year where we placed more emphasis on social marketing, we improved our social media awareness across platforms as shown below:

Results for the Year

To provide our service we require funding to cover our costs which are mainly salaries, premises and essential operation costs. Fundraising has been a particular focus and the charity is ending the year in robust financial health.

Income for the full year is £196,047 (2021 £171,735) and total expenditure £128,209 (2021 £88,072). This results in an increase in funds of £67,838 (2021 £83,663) and an increase in total funds carried forward to £209,359 (2021 £141,521) at 31 March 2022.

Total Unrestricted Funds are £186,930 (2021 £127,562). The Board has committed to a 3-year plan to grow the number of client appointments to 1,000 per year and has designated £103,000 of Unrestricted Funds to support the expenditure to achieve this growth. Reserves of £83,930 (2021 £127,562) are for general use. Restricted Funds are £22,430 (2021 £13,959).

Income includes donated dressing stock of £16,541 (2021 £7,800) which has increased from the previous year as a result of the showroom being open and fully operational for the majority of the year. Total income minus stock donations is £179,506 (2021 £163,935), a 9% increase overall.

Our sources of income are a mix of donations, grants and money raise from fundraising activities.

Donations from Companies and Individuals provide 32% of our income and a significant amount of the donations come from our Corporate Partners. We are particularly grateful for the support of Energize Recruitment, Ingeus, Timetastic and Trinnovo along with all other supporters. In the last quarter of the year 4[th] Utility agreed to become our newest Corporate Partner.

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Once again our supporters took part in Cycle for Smart Works with over 235 people cycling in the week running up to International Women’s Day. Income of £48k is included in the accounts and with some further matched payments and gift aid to come it is expected the total raised will be close to the £52k raised in 2021.

Grants continued support our work including the Workers’ Education Association Grant for our “Fashion your own Future” Young Person’s project, grants from Bank of America and the National Lottery to support the expansion of our Career Coaching pre employment support and grants from Stockport Local, Assura Community Fund, Places for People and Great Places for some hyper local outreach projects.

----- Start of picture text -----
Corporate &
individual donations Grants [31%]
[32%]
Income Sources
2022
Fundraising [37%]
----- End of picture text -----

We are grateful for the support from Smart Works Charity both providing grants and for ongoing support through out the year particularly with coordinating Cycle for Smart Works.

Total expenditure of £128,209 (2021 £88,072) includes the value of clothing donated to clients of £15,570 (2021 £7,800) and thus our cash costs have increased to £112,639 from £80,554.

Our costs are mainly for staff, premises and direct client service costs which together make up 86% of our overall costs.

The increase in the year of £22k is largely due to additional staff costs arising from increasing our team to facilitate further outreach with referral partners and potential clients both in person and remotely. For most of 2022 our staff hours were around 2.5FTE an increase from 1.6FTE for most of 2021. At the end of the year we further recruited ending the year with 4.2 FTE.

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Property costs in 2021 had benefited from a rent reduction in the early stages of the pandemic. This year we have had full rent costs and also some increased energy costs increasing our property costs to £22k.

Other direct costs also increased this year as we welcomed more clients to our service.

----- Start of picture text -----
Fundraising [6%]
Support and admin
(12%)
Other direct expenditure
[12%]
Expenditure
2022
Staff Related [56%]
Premises related [18%]
----- End of picture text -----

Investment policy

The trustees, having regard to the liquidity requirements of operating the Charity and to the reserves policy, have operated a policy of keeping available funds in interest-bearing deposit accounts. At the year end we have over 6 months of cash reserves held with the majority in our deposit account.

Reserves policy

The trustees have considered the requirement for free reserves, i.e. those unrestricted funds not designated for specific purpose or otherwise committed. It has been determined that, given the nature of the charity’s work, the level of free reserves should be equivalent to 6 to 12 months of annual expenditure which is between £80k and £160K. This provides sufficient flexibility to cover any temporary shortfall in income and will allow the charity to cope and respond immediately to a reasonable range of unforeseen adverse circumstances prior to specific remedial plans being implemented. The free reserves of £83,929 meets this requirement.

4. Plans for the future

On the 1 April 2022, Smart Works (Greater Manchester) began the first year of an ambitious Three Year Plan across the Smart Works Network, which aims to double the number of women helped in each of our centres, including Smart Works (Greater Manchester). After the pandemic, and with a severe cost of living crisis, the need for our service has never been more urgent, and by the end of the

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three years, we aim to be helping over 1000 women from across Greater Manchester, and ensuring that at least 65% go on to get the job.

The KPI plan for 2022 / 2023 is to maintain the high levels of appointments during traditionally busy months while building more detailed understanding of, and a capacity and performance plan to manage, the cyclical nature of client appointments throughout the 12 months of the year. We specifically aim to deliver the following

As part of the national Smart Works charity, Smart Works Greater Manchester is excited to actively participate in the development of the 8 pillars of the new national 3 Year Strategy (2022 – 2025):

  1. Expansion - we are ambitious, and the need for the expansion of our service is clear. Smart Works aims to double the number of women helped from 5,000 a year to 10,000 women by 2025

  2. Data Driven - Decision making will predominantly be driven by data, with new centres being opened in areas with significant need, and current centres being best located to help the most women

  3. Defined Area - Each centre will have a defined area of operation and focus on deepening their reach in their specific community. By 2025, each centre will aim to help at least 1000 women per year

  4. London Centre - London is the largest urban hub in the UK, with twice as many unemployed women as the next largest centre. The ambition is to open a third London centre in South London by 2023

  5. Virtual Service - The virtual service will be refined and continue. Clients beyond the defined area given to each centre will be supported by a central virtual service team

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  1. National Brand - To support growth, Smart Works will be established as a national brand that is better known and understood, especially by potential clients

  2. Hub Model - We have strong foundations and that will continue to fuel our growth. We will continue to be volunteer powered, use a hub model and the Smart Works model of regional boards will continue, with centres outside of London led by a board of trustees with local expertise and insight. Steps will also be taken to separate out London centres from HQ

  3. New Centres - New centres will be opened in areas where there is a clear need. The data indicates the top three target cities are Sheffield, Glasgow and Liverpool. The centre with the highest need in a new region is Bristol. Other new regions with no centre include the South of England and the area around Cardiff in Wales

  4. Structure, governance and management

Governance

Smart Works (Greater Manchester) and its trustees are bound by the Memorandum and Articles of Association. The names of the trustees who served during the year are set out in the reference and administrative information on page 28.

Smart Works Charity is the sole member of Smart Works (Greater Manchester). Smart Works (Greater Manchester) has been granted a license to operate by Smart Works Charity and it has the same objectives and similar activities as the parent company.

Recruitment and appointment of new trustees

Regular reviews are undertaken to assess the skills of the current trustees and identify any areas for strengthening. New trustees are appointed by the existing trustees and their appointment is approved by Smart Works Charity.

Induction and training of new trustees

New trustees are provided with an induction to familiarise themselves with the charity and the not for profit sector. They are briefed on their responsibilities by the existing trustees. A Trustee Welcome Pack is shared with all Smart Works Trustees when they join the charity setting out roles, responsibilities and the structure of Smart Works both regionally and nationally. New trustees are also referred to the Charity Commission’s guide ‘The Essential Trustee’.

Organisational structure and decision making

The Board of Trustees operate to a defined governance framework. Trustee meetings are held regularly and attended by the trustees and the office manager. Operational, Finance and Risk reports are presented. All decisions are included in the minutes after discussion and agreement. Between trustee meetings working parties have been set up to progress areas such as fundraising, finance, volunteers and risk.

Management

The day to day running of the operation is undertaken by the Business Manager with support from the trustees where necessary. Operational and brand infrastructure is provided by Smart Works Charity.

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Trustees’ responsibilities statement

The trustees, who are also directors of Smart Works (Greater Manchester) for the purposes of company law, are responsible for preparing the Trustees’ Annual 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 that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 Charitable company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable company for that period. In preparing the financial statements the Trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Independent examiner’s report to the Trustees of Smart Works (Greater Manchester)

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022 which are set out on pages 15 to 27.

Responsibilities and basis of report

As the charity trustees of the company (and also 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 your company’s accounts as 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 that in any material respect:

  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.

11 August 2022

Hannah Ormston CIPFA 23-38 Hythe Bridge Street Oxford OX1 2EP 1 August 2022

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Smart Works (Greater Manchester)

Statement of Financial Activities including an Income and Expenditure Account

FOR THE YEAR ENDED 31 MARCH 2022 REGISTERED NUMBER 09425123

───────────────────────────────────────────────────────────────────────-----------

Notes
Income from:
Donations
3
Other trading activities
4
Other income
Total Income
Expenditure on:

Raising Funds
5
Charitable activities
6
Total expenditure
Net income/(expenditure) for
the year
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
Restricted
Funds
£
2022
Total
£
2021
Total
£
77,725
51,491
129,216
105,665
66,664
-
66,664
60,298
167
167
5,772
144,556
51,491
196,047
171,735

6.244
-
6,244
2,909
78,945
43,020
121,965
85,163
85,189
43,020
128,209
88,072
59,367
8,471
67,838
83,663
127,562
13,959
141,521
57,858
186,929
22,430
209,359
141,521

All of the company’s activities are classed as continuing.

The charity had no gains or losses other than those shown above.

The notes of pages 17 to 27 form part of these accounts.

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I{otes Unresilricted RestricEd 2oi22 2M
Funds Funds Total Total
f. f f c
CurrentAssets
Stock 10 14930 14,930 13,959
Debtors 11 LO,L32 14,132 59,0O3
C-ashatbank and in hand 183,488 7,m 190,988 T1,235
193,620 22,430 216,050 L50,197
Creditors: amountsfafifurgdue
withinoneyear		 L2 6,691 6,691 8,676
Netcurentassets 186,929 22,430 209,359 141,527
IIetassets 186,929 22,430 zGr,359 L41,521
Thefundsofthecharity
Restricted Funds t4 22,430- 23,4W 13,959
DesignatedFunds 15 103,fl)O 103,(m
GeneralFunds 15 83,929 83,929 L27,562
Totaldmrityfunds 186,929 22,430 209,359 L4L,521,

Smart Works (Greater Manchester) Notes to the Accounts

FOR THE YEAR ENDED 31 MARCH 2022

──────────────────────────────────────────────────────────────────────────────

1. GENERAL INFORMATION

Smart Works (Greater Manchester) is a company limited by guarantee and incorporated in England and Wales. The registered office is Mellor House, 65-81 St Petersgate, Stockport, SK1 1DH.

2. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Smart Works (Greater Manchester) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The charity’s presentational and functional currency is Pounds Sterling.

The financial statements are prepared on a going concern basis. There are no material uncertainties in respect of the charity’s ability to continue as a going concern for the foreseeable future, based on latest strategic plans and financial budgets.

Income

Income is included in the period in which the charity becomes entitled to the resources, the trustees have sufficient certainty that they will receive the resources and the monetary value can be measured with sufficient reliability. The main income sources are corporate and individual donations, grants, fundraising income and sales of surplus of donated stock.

Donated Goods and Services

Donated stock for dressing clients is recognised in the financial statements when the goods are received by the charity and their value can be measured with reasonable accuracy. The value placed on these resources is their value to the charity. The trustees consider it impractical to measure the value of volunteer help and consequently, as permitted by the SORP, their value is not recognised in the financial statements but is described in the trustees' annual report.

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Investment Income

This is included in the accounts when receivable.

Expenditure

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered. All expenditure is allocated to the particular activity where the cost relates directly to that activity. Indirect costs and overhead expenses are apportioned on a judgemental basis in proportion to floor space used.

Tax reclaims on donations and gifts

Income from tax reclaims are included in the SOFA at the same time as the gift to which they relate.

Stocks

The cost of donated dressing stock for distribution to beneficiaries is valued at fair value, which has been estimated by the trustees.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

Creditors

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Tangible fixed assets

Assets are capitalised if they can be used for more than one year and cost at least £1,000. Tangible fixed assets are stated at cost less depreciation.

Depreciation

Depreciation has been provided at the following rates in order to write off the assets, less their estimated residual value, over their estimated useful economic lives:

Computer equipment 30% on the straight line basis Office fixtures and fittings 20% on the straight line basis

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Fund Accounting

The General Fund is an unrestricted fund which is available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for specific purposes. The Designated Funds are unrestricted funds which have been set up by the Trustees to hold funds for specific purposes. The aim and use of each Designated Fund is set out in the notes to the accounts. Restricted Funds are funds which are to be used in accordance with specific restrictions imposed by the donors. The aim and use of each Restricted Fund is set out in the notes to the accounts.

Income and expenditure is allocated to the Funds on a direct or time apportioned basis as appropriate.

Financial instruments

The charity 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. Fixed assets are recorded at depreciated historic cost, stock at fair value and all other assets and liabilities are recorded at cost which is their fair value.

Cash at bank and in hand

Cash at bank and cash 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.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Significant Accounting Estimates

The Trustees make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2. TAXATION

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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3. DONATIONS

Current Year
Corporate and individual donations
Donated goods and services
Grants
Prior Year
Corporate and individual donations
Donated goods and services
Grants		 Unrestricted
Fund
£
Restricted
Funds
£
2022
Total
£
58,079
-
58,079
-
16,541
16,541
19,646
34,950
54,596
77,725
51,491
129,216
Unrestricted
Fund
£
Restricted
Funds
£
2021
Total
£
29,515
-
29,515
-
7,800
7,800
30,000
38,350
68,350
59,515
46,150
105,665

4. OTHER TRADING ACTIVITIES

Current Year
Cycle for Smart Works
Other fundraising activities
Sale of surplus donated stock
Prior Year
Cycle for Smart Works
Other fundraising activities
Sale of surplus donated stock		 Unrestricted
Funds
£
2022
Total
£
48,290
48,290
10,467
10,467
7,907
7,907
66,664
66,664
Unrestricted
Funds
£
2021
Total
£
51,714
51,714
8,200
8,200
384
384
60,298
60,298

20

5. EXPENDITURE ON RAISING FUNDS

Current Year
Event and fundraising costs
Marketing costs		 Unrestricted
Funds
£
Restricted
Funds
£
2022
Total
£
5,049
-
5,049
1,195
-
1,195
6,244
-
6,244
Prior Year
Event and fundraising costs
Marketing costs		 Unrestricted
Funds
£
Restricted
Funds
£
2021
Total
£
2,103
-
2,103
806
-
806
2,909
-
2,909

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Current Year
Staff related direct expenditure
Premises related direct expenditure
Other direct expenditure
Administrative costs
Support costs (note 7)		 Unrestricted
Funds
£
Restricted
Funds
£
2022
Total
£
43,576
19,567
63,143
16,245
3,817
20,062
9,606
19,636
29,242
1,065
1,065
8,453
-
8,453
78,945
43,020
121,965
Prior Year
Staff related direct expenditure
Premises related direct expenditure
Other direct expenditure
Administrative costs
Support costs (note 7)		 Unrestricted
Funds
£
Restricted
Funds
£
2021
Total
£
12,538
30,565
43,103
11,239
7,334
18,573
1,380
13,179
14,559
248
562
810
8,118
-
8,118
33,523
51,640
85,163

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7. SUPPORT COSTS

Staff related support costs
Premises related support costs
Administrative support costs
Governance		 2022
£
2021
£
5,310
4,577
2,229
2,810
266
83
648
648
8,453
8,118

8. NET INCOME STATED AFTER CHARGING

2022 2021
£ £
Depreciation of owned fixed assets - -
Operating lease payments 18,900 16,688
Wages and salaries 65,622 45,915
Employer’s pension contributions 1,257 730
Employer’s national insurance contributions 1,180 -
Independent Examiner's remuneration 600 600
Average number of employees during the year 3 2.5

No member of staff was paid more than £60,000 in the year

The key management personnel of the Charity comprise the Trustees as listed on page 28. The total amount of employee benefits (including employer pension contributions) received by the key management team for their services to the Charity was �NIL (2021: �NIL).

9. TRUSTEE REMUNERATION AND EXPENSES

No Trustee received any remuneration or expenses from the Charity in relation to the performance of their duties as trustees. (2021: £NIL)

22

10. STOCK

10. STOCK
2022 2021
£ £
Dressing stock 14,930 13,959

As detailed in note 1, the charity’s donated stock for beneficiaries is valued at fair value.

11. DEBTORS

Cycle for Smart Works accrued Income
Other prepayments and accrued income		 2022
2021
£
£
1,080
50,145
9,052
8,858
10,132
59,003

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other Creditors
Accruals
Other tax and social security
3. OTHER FINANCIAL COMMITMENTS
At the year end the company had annual commitments under non
cancellable operating leases as set out below:
Operating leases – within one year
Operating leases – between 2 and 5 years		 2022
2021
£
£
1,007
271
4,012
7,613
1,672
792
6,691
8,676
2022
2021
£
£
20,003
13,875
34,981
-

13. OTHER FINANCIAL COMMITMENTS

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14. RESTRICTED FUNDS

Current Year Restricted Funds
Analysis of fund balance by project:
Dressing Stock
Workers’ Education Association,
European Social Fund Communities Grant
Stockport Local Fund
Great Places Resilience Fund
Places for People Community Fund
Assura Community Fund
Smart Works Charity (Bank of America)
Smart Works Charity (National Lottery)		 Balance
1 April
2021
Income
Expenditure
Transfer
Balance
31 March
2022
£
£
£
£
£
13,959
16,541
(15,570)
-
14,930

-
5,365
(5,365)
-
-
-
5,000
(5,000)
-
-
-
1,600
(1,600)
-
-
-
5,000
(2,500)
-
2,500
-
5,000
-
-
5,000
-
10,825
(10,825)
-
-
-
2,160
(2,160)
-
-
13,959
51,491
(43,020)
-
22,430

The balance on restricted funds represents the unexpended portion of funding received which will be returnable to the funder if not used for the relevant project.

The Dressing Stock fund represents donations received for the specific purpose of providing beneficiaries with clothing for interview.

The Workers’ Education Association, European Social Fund Communities Grant is funding for staff and running costs to support our Young Women’s Programme from August 2020 to June 2021.

The Stockport Local Fund grant is funding towards core costs for outreach work across Stockport.

The Great Places Resilience Fund grant is funding towards core costs

The Places for People Community Fund grant is funding towards core costs. Work on the outreach programme funded by this grant has been partially delayed and will be completed in the coming year and so some of the grant has been carried forward.

The Assura Community Fund grant is funding towards core costs.

Smart Works Charity Career Coaching (Bank of America) grant is funding towards core costs.

Smart Works Charity Career Coaching (National Lottery Fund) grant is funding towards core costs.

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Balance Balance
1 April 31 March
2020 Income Expenditure Transfer 2021
Prior Year Restricted Funds £ £ £ £ £
Analysis of fund balance by project:
Dressing Stock 13,677 7,800 (7,5180 - 13,959
National Lottery Connecting Communities - 1,000 (1,000) - -
Fund
Manchester Airport Community Fund - 3,000 (3,000) - -
Workers’ Education Association, European - 7,792 (7,792) - -
Social Fund Communities Grant
Smallwood Trust Frontline Women’s Fund - 10,000 (10,000) - -
CAF Resilience Fund - 12,158 (12,158) - -
Smart Works Charity (Bank of America) - 900 (900) - -
National Lottery Coronavirus Community - 3,500 (3,500) - -
Support Fund
Coronavirus Job Retention Scheme - 5,772 (5,772) - -
13,677 51,922 (51,640) - 13,959

The balance on restricted funds represents the unexpended portion of funding received which will be returnable to the funder if not used for the project.

The Dressing Stock fund represents donations received for the specific purpose of providing beneficiaries with clothing for interview.

The National Lottery Connecting Communities Fund is a grant to fund a celebration with our volunteer community.

The Manchester Airport Community Fund is a grant towards office equipment to help make the office space suitable and safe for clients, staff and volunteers for reopening in August 2020.

The Workers’ Education Association, European Social Fund Communities Grant is funding for staff and running costs to support our Young Women’s Programme from August 2020

The Smallwood Trust Frontline Women’s Fund is a grant towards staff and running costs.

The CAF Resilience Fund is a grant towards staff and running costs.

The National Lottery Connecting Communities Fund (collected via Smart Works Charity) is a grant for core costs.

Smart Works Charity Career Coaching (Bank of America 2021) is a grant towards core costs.

The Coronavirus Job Retention Scheme income is funding received toward staff costs.

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15. Designated Funds and General Funds

Analysis of fund balance by project:
Designated Funds for 3 year plan to
support more women across Greater
Manchester
General Funds		 Balance
1 April
2021
Income
Expenditure
Transfer
Balance
31
March
2022
£
£
£
£
£
-
-
-
103,000
103,000
127,562
144,556
(85,189)
(103,000)
83,929
127,652
144,556
(85,189)
-
186,929

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current Year
Current assets
Creditors due within one year
Prior Year
Current assets
Creditors due within one year		 General
Funds
2022
Designated
Funds
2022
Restricted
Funds
2022
Total
2022
£
£
£
£
90,620
103,000
22,430
216,050
(6,691)
-
-
6,691)
83,929
103,000
22,430
209,359
General
Funds
2021
Designated
Funds
2021
Restricted
Funds
2021
Total
2021
£
£
£
£
129,638
-
20,559
150,197
(2,076)
-
(6,600)
(8,676)
127,562
-
13,959
141,521

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17. MEMBERS’ LIABILITIES

The company is limited by guarantee. The member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up while they are a member, or within one year after they cease to be a member, for payment of the debts and liabilities of the company contracted before they ceased to be a member, and of the costs, charges and expenses of winding up such amount as may be required not exceeding £1. At the balance sheet date there was 1 member, Smart Works Charity.

18. RELATED PARTY TRANSACTIONS

During the year the charity received donations of £20,169 (2021 £20,000) from Smart Works Charity, its immediate parent which are included within the results for the year. In addition, grants of £10,632 (2021 £4,400) are accrued at 31 March.

Cycle for Smart Works 2021 proceeds of £50,145 which were accrued at 31 March 2021 were received via Smart Works Charity in the current year.

The charity received donations of £85 (2020: £246) from Trustees. There are no other related party transactions.

19. CONTROL

The charity is controlled by Smart Works Charity (Company number 03870671 and Charity Number 1080609) who is the sole member of this charity. Smart Works Charity has the same principal activity as this charity.

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Reference and administrative information

Registered name Smart Works (Greater Manchester) Charity registration number 1163594 Company registration number 09425123 Corporate status The Company is limited by guarantee Registered office Mellor House 65-81 St Petersgate Stockport SK1 1DH Telephone 0161 974 0669 Website www.smartworks.org.uk/manchester-smart-works Current Trustees Janette Iceton - Chair Alison Lever - Treasurer Susan Weighell Samantha Reed Sarah Martin Jane Nugent Sheena Bedi Kay Truelove-Barratt Elsa Zekeng (appointed 22 July 2021) Independent Examiner Hannah Ormston CIPFA Critchleys Audit LLP 23-28 Hythe Bridge Street Oxford OX1 2EP Bankers Barclays Bank plc

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