## **SMILEYARK KIDS**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2020**
**COMPANY NO: CE015329 CHARITY NO: 1180233**
## **SMILEYARK KIDS**
## **Financial Statements for the Year Ended 31 August 2020**
|**Contents**|**Page**|
|---|---|
|Legal and Administrative Information|1|
|Report of the Trustees|2 - 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes forming part of the financial statements|8 - 12|
## **SMILEYARK KIDS**
## **Report of the Trustees for the year ended 31 August 2020**
The Trustees presents its report and financial statements for the year ended 31 August 2020
## **Reference and Administrative information**
|**Charity Name:**|**Smileyark Kids**|
|---|---|
|**Charity Registration Number:**|**1180233**|
|**Company Registration Number:**|**CE015329**|
|**Registered Office and**||
|**Operational Address:**|**29 Cameron Drive, Dartford. Kent. DA1 5GN**|
|**Trustees:**|Mr Adebayo Olumuyiwa Emanuel|
||Mrs Mercy Danso|
||Mrs Omotayo Abosede Osoko|
||Ms Georgina Salami|
||Mrs Susan Ikpefuran|
|**Independent examiner:**|Accounts Fortress Limited|
||14|
||Eleanor Close|
||Dartford|
||Kent|
|**Bankers:**|Lloyds Bank|
||130 Broadway|
||Bexleyheath|
||Kent|
||DA6 7DP|
Page 1
## **SMILEYARK KIDS**
## **Report of the Trustees for the year ended 31 August 2020**
## **Our Aims and Objectives**
## **Purpose and Aims**
The objects of the charity are:
To advance and provide facilities for education, training, social welfare, recreation and other leisure time activities with the object of improving the conditions and quality of life of children and families in the London borough of Bexley and surrounding areas
The organisation carries out its purposes by offering breakfast, after school and holiday club facilities for children aged 4-11 years and the operation of a foodbank for those in need.
## **Ensuring Our Work Delivers Our Aims**
The focus of our work servicing families in the Bexley and surrounding areas through provision of breakfast and afterschool care for families, working with local council, providing summer events with the council, working with food banks and delivering food to families in need in the community
## **How Our Activities Deliver Public Benefit**
Through helping the less privileged and vulnerable members of the society, and through the operation of a foodbank and delivery of food parcels.
## **Who used and benefited from our Services?**
Local councils, Children/families, elderly and those who are vulnerable in the community
## **Financial Review**
## _**Reserves Policy**_
The trustees have established the level of reserves (funds that are freely available) that the charitable should hold. Reserves are needed to bridge the gap between the charity's spending and receiving resources through parental fees and grants. Reserves are also held to cover emergency repairs and expenditure. The charity's policy is that the reserves held should be between six and nine months of the expenditure.
## _**Principal Funding Sources**_
Aside from the income generated from fees from parents, the principal funding source for the charitable company is currently by way of grants from local authority, fund raising and public donations
## _**Investment Policy**_
The Charity has cash that is set out in the Charity balance sheet. The objective of the investment policy is to invest cash at banks where the capital is protected. The Charity currently has a policy of keeping any surplus liquid funds in cash at banks where immediate access and security of funds is guaranteed.
## **Plans for Future Periods**
The Charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory funding arrangements. Next year Smileyark Kids plans to gain more granta in the community and be able to reach more families in the provision of food and other community events to help cater to their everyday needs as well as more reach to providing childcare services.
Page 2
## **SMILEYARK KIDS**
## **Report of the Trustees for the year ended 31 August 2020**
## **Structure, Governance and Management**
## _**Governing Document**_
Smileyark Kids was registered as a Charitable Incorporated Organisation with the Charity Commission on 08 October 2018 (Charity No: 1180233).
## _**Recruitment and Appointment of Trustees**_
Appointment of charity trustees
- 1) Apart from the first charity trustees, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.
2) In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO
## _**Trustees Induction and Training**_
The charity trustees will make available to each new charity trustee, on or before his or her first appointment:
a) a copy of the current version of this constitution; and
- b) a copy of the CIO’s latest Trustees’ Annual Report and statement of accounts.
## **Risk Management**
The trustees are working on a Risk Management strategy which comprises:
- An annual review of the risks the charitable company may face;
- Its systems and procedures; and
- The impact of future funding and the financial implications on the organisation
Page 3
## **SMILEYARK KIDS**
## **Report of the Trustees for the year ended 31 August 2020**
## **Responsibilities of the Trustees**
Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable trust as at the balance sheet date and of its incoming resources and applications of resources, including income and expenditure, for the financial year. In preparing those financial statements the Trustees should follow best practice and
o Select suitable accounting policies and then apply them consistently;
o Make judgements and estimates that are reasonable and prudent
o Prepare the financial statements on the on going basis unless it is inappropriate to presume that the charity will continue on that basis.
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time financial position of the charity and enables them to ensure that the financial statements comply with Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Members of the Board of Trustees**
Members of the Board of Trustees, and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.
In accordance with charity law, as trustees, we certify that:
So far as we are aware, there is no relevant information of which the charity's accountants are unaware; and as the trustees of the charity we have taken all steps that we ought to have taken in order to make ourselves aware of any relevant information and to establish that the Charity's accountants are aware of that information.
This report has been prepared,
By order of trustees:
Adebayo Emanuel Adebayo Emanuel (Jun 30, 2021 14:04 GMT+1) Adebayo Emanuel
**Mr Adebayo Olumuyiwa Emanuel Trustee/Director**
Page 4
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## **SMILEYARK KIDS**
## **Statement of Financial Activities (including Income and Expenditure Account) for the year ended Smileyark Kids**
|**Notes**
**Incoming Resources**
**Incoming Resources from generated funds**
Charitable Activities
2
Donations and Grants
3
**Total incoming resources**
**Resources expended**
Expenditure on Charitable Activities
4
Administrative and Support Cost
5
Governance cost
6
**Total resources expended**
**Net Incoming resources before other**
**recognised gains**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
Prior Year Adjustment
**Total funds carried forward**|**2020**
**2020**
**2019**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total Funds**
**Total Funds**
**£**
**£**
**£**
**£**
110,032
110,032
157,881
500
4,194
4,694|
|---|---|
||**110,532**
**4,194**
**114,725**
**157,881**|
||(78,402)
(2,616)
(81,018)
(99,249)
(38,871)
(583)
(39,454)
(44,936)
(600)
-
(600)
(500)|
||**(117,873)**
**(3,199)**
**(121,072)**
**(144,684)**|
||(7,342)
995
(6,347)
13,197|
||**(7,342)**
**995**
**(6,347)**
**13,197**
77,703
10,054
87,757
71,764
-
(10,054)
(10,054)
-|
||**70,361**
**995**
**71,356**
**84,961**|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
Page 6
## **SMILEYARK KIDS**
## **Balance Sheet as at 31 August 2020**
|**Notes**
**Fixed Assets**
Tangible Assets
10
**Current Assets**
11
Debtors
Other Receivables
Prepayments
Cash at bank and in hand
Creditors: Amount falling due within a year
12
**Net Current Assets**
**Total assets less current liabilities**
Creditors: Amount falling due after more than one year
13
**Net Assets**
14
**Unrestricted Funds**
15
**Restricted Funds**
15
**Total Funds**|**2020**
**£**
**39,666**
11,518
12,464
1,599
84,927
**110,508**
(29,401)
**81,106**
**120,772**
(49,416)
**71,356**
70,362
995
**71,356**|**2019**
**£**
**48,534**
9,358
-
1,530
69,378|
|---|---|---|
|||**80,266**
(9,001)|
|||**71,265**
**119,799**
(32,042)|
|||**87,757**|
|||77,704
10,053|
|||**87,757**|
For the year ending 31 August 2020 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## **Trustees’ responsibilities:**
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The Financial Statements were approved by the board on _________________and signed onJun 30, 2021 its behalf by:
## Adebayo Emanuel
Adebayo Emanuel (Jun 30, 2021 14:04 GMT+1)
**Mr Adebayo Olumuyiwa Emanuel Director/ Trustee**
Page 7
## **SMILEYARK KIDS**
## **Notes forming part of the financial statements for the year ended 31 August 2020**
## **1. Accounting Policies**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.
## **(a) Basis of Accounting**
The financial statements have been prepared under the historical cost conversion and in accordance with the financial reporting standard for smaller entities. The financial statements have been prepared in accordance with the statements of recommended practice (SORP). Accounting and reporting by charities published in October 2000, applicable Accounting standards and the companies Act 2006.
The financial statements are prepared on a going concern basis under the historic cost convention. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £
## **(b) Fund Accounting**
General funds are unrestricted funds and are available for use at the discretion of the trustees in furtherance of the general objectives of the company. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for the particular purpose. The cost of raising and administering such funds are charged against the specific funds. The aim and use of each restricted fund is set out in the notes to the financial
## **(c ) Incoming Resources**
All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. The following specific policies are applied to particular categories of income: Voluntary income is received by way of grants, donations and gifts, and are included in full in the Statement of Financial Activities when receivable. Grants, where delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity where this can be quantified. provided by volunteers has not been included in these accounts.
Invested income is included when receivable.
Incoming resources from charitable trading activity are accounted for when earned.
Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
## **(d) Resources expended**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. Charitable expenditure comprises those costs incurred by the charity in the delivery of its to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to strategic management of the charity. All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource.
Page 8
## **SMILEYARK KIDS**
## **Notes forming part of the financial statements for the year ended 31 August 2020**
## **1. Fixed Assets**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value over their expected useful lives on the following basis:
Motor Vehicle 20% Straight Line Furniture and Fixture 20% Straight Line Plant and Machinery 20% Straight Line Computer Equipment 33.3% Straight Line
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital repayments.
## **2. Income**
|**Charitable Activities**
**3. Other Income**
Donations and Legacies
Miscellaneous Income|**_Unrestricted_**
**_Restricted_**
**2020**
**2019**
**Total**
**Total**
**£**
**£**
**£**
**£**
110,032
-
110,032
157,881|
|---|---|
||**110,032**
**-**
**110,032**
**157,881**|
||**Unrestricted**
**Restricted**
**2020**
**2019**
**Total**
**Total**
**£**
**£**
**£**
**£**
500
4,194
4,694
-
-
-|
||**500**
**4,194**
**4,694**
**-**|
## **Analysis of Expenditure on Charitable Activities**
|**4. Charitable Activities**
Activities undertaken directly
Wages and Salaries
Management allowance
Temporary Staff and Recruitment
Staff Training and Other Staff Cost
**5. Administrative and Support Cost**
Premises Costs
Software
Office running
Bank Charges and Card repayment
Telephone & Internet Charges
Depreciation
Impairments
Motor Expenses
Insurance
Equipment Expensed
Finance Cost
**6. Governance Cost**
Accountancy Fees
**Total Resources Expended**|**Activities**
**Undertaken**
**Directly**
**Support Cost**
**Governance**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**
4,658
-
-
4,658
7,753
47,321
-
-
47,321
63,240
18,560
-
-
18,560
20,000
9,782
-
-
9,782
7,191
697
-
-
697
1,065|
|---|---|
||**81,018**
**-**
**-**
**81,018**
**99,249**|
||-
13,677
-
13,677
22,646
-
2,809
-
2,809
1,593
-
1,008
-
1,008
3,130
-
372
-
372
-
2,871
-
2,871
2,341
-
11,522
-
11,522
4,980
-
297
-
297
2,796
-
3,521
-
3,521
2,796
-
672
-
672
1,223
-
1,150
-
1,150
1,869
1,554
1,554
1,561|
||**-**
**39,454**
**-**
**39,454**
**44,936**|
||-
-
600
600
500|
||**-**
**-**
**600**
**600**
**500**|
|||
||**81,018**
**39,454**
**600**
**121,072**
**144,684**|
Page 9
## **SMILEYARK KIDS**
**Notes forming part of the financial statements for the year ended 31 August 2020**
## **7. Net Incoming Resources for the Year**
This is stated after charging:
|Depreciation
Impairment
Accountant's Remuneration
Other Accruals|**2020**
**£**
11,522
297
600
1,643
**14,062**|**2019**
**£**
4,980
**-**
500
2,872|
|---|---|---|
|||**8,352**|
## **8. Trustee Remuneration & Related Pay Transactions**
The trustees were not paid any remuneration or received any other benefits during the year. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charitable company during the year.
The board of Trustees passed a resolution on 14 January 2020 to appoint the Charity CEO and founder (Mrs Susan Olusola Ikpefuran) as a trustee. The CEO is the only remunerated trustee as she has led the organisation for over 6 years (since inception) until SmileyArk Kids became a registered charity in October 2018. The remaining unpaid trustees consider her appointment to be in the best interest of the charity. The trustees confirm to adopt measures stipulated in clause (7) of the charity's constitution; ensuring any conflicts of interest of this appointment is managed.
## **9. Taxation**
As a charity, Smileyark Kids is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that that these are applied to its charitable objects. No tax charges have risen in the Charity.
## **10. Tangible Fixed Assets**
|**COST**
At 1 September 2019
Additions in period
Impairments in period
**At 31 August 2020**
**DEPRECIATION**
At 1 September 2019
Charge in period
Write-off
**At 31 August 2020**
**NET BOOK VALUE**
**At 1 September 2019**
**At 31 August 2020**|**2020**
**Computer**
**Motor**
**Fixtures**
**Total**
**Equipment**
**Vehicle**
**& Fitting**
**£**
**£**
**£**
**£**
2,754
50,760
-
53,514
2,951
-
-
2,951
(697)
(697)|
|---|---|
||**5,008**
**50,760**
**-**
**55,768**|
||750
4,230
-
4,980
1,370
10,152
-
11,522
(400)
(400)|
||**1,720**
**14,382**
**-**
**16,102**|
||2,004
46,530
-
48,534|
||**3,288**
**36,378**
**-**
**39,666**|
## **11. Debtors: Amounts falling due within one year**
|Debtors
Other Receivables
Prepayments
Cash at bank and in hand|**2020**
**£**
11,518
12,464
1,599
84,927
**110,508**|**2019**
**£**
9,358
-
1,530
69,378|
|---|---|---|
|||**80,266**|
Debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
Page 10
## **SMILEYARK KIDS**
## **Notes forming part of the financial statements for the year ended 31 August 2020**
## **12. Creditors: Amounts falling due within one year**
|Deferred Income
Accruals
Provision for Doubtful Debt
Other Payables
Lease Liability - Motor Vehicle Finance
**13. Creditors: Amounts falling due after more than one year**
Lease Liability - Motor Vehicle Finance
Other Creditors|**2020**
**£**
198
2,243
2,053
21,175
3,734
**29,401**
**2020**
**£**
28,308
21,108
**49,416**|**2019**
**£**
2,059
3,372
-
-
3,571|
|---|---|---|
|||**9,001**|
|||**2019**
**£**
32,042|
|||**32,042**|
**£**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
## **14. Analysis of Net Assets Between Funds**
|Tangible Fixed Assets
Current Assets
Current Liabilities
Long-Term Liabilities
**Net Assets at 31 August 2020**|General
**Designated**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**Transfers**
**Funds**
**£**
39,023
-
643
-
39,666
104,288
-
6,220
-
110,508
(8,205)
-
(21,196)
-
(29,401)
(28,308)
-
(21,108)
-
(49,416)|
|---|---|
||**106,798**
**-**
**(35,441)**
**-**
**71,356**|
## **15. Movements in Funds**
|Restricted Funds:
**Total Restricted Funds**
Unrestricted Funds:
General Funds
**Total Unrestricted Funds**
**Total Funds**|**At 1 September**
**Incoming**
**Outgoing**
**Transfers**
**At 31 August**
**2019**
**Resources**
**Resources**
**2020**
**£**
**£**
**£**
**£**
10,053
4,194
(3,199)
(10,053)
995|
|---|---|
||**10,053**
**4,194**
**(3,199)**
**(10,053)**
**995**|
||77,704
110,532
(117,873)
-
70,362|
||**77,704**
**110,532**
**(117,873)**
**-**
**70,362**|
|||
||**87,757**
**114,725**
**(121,072)**
**(10,053)**
**71,357**|
General funds of £71,764 brought forward from 6 years activities operating under unincorporated association; prior to becoming a registered charity in October 2018.
Page 11
## **SMILEYARK KIDS**
## **Income and Expenditure Account for the year ended 31 August 2020**
|**_Income and endowments from:_**
Charitable Activities
Donations and Grants
**LESS OVERHEADS**
**Premises Costs**
Hire of Premises
**Administrative expenses - General**
Software
Office running
Bank Charges and Card repayment
Equipment Expensed
Telephone & Internet Charges
Insurance
Equipment Expensed
**Charitable Activities**
Activities undertaken directly
Wages and Salaries
Management allowance
Temporary Staff and Recruitment
Staff Training and Other Staff Cost
**Professional Fees**
Accountancy Fees
**Support Costs**
Impairments
Finance Cost
Depreciation
Motor Expenses
Net Income/(expenditure)
Total funds brought forward
Prior Year Adjustment
**Surplus carried forward**|**£**
**£**
13,677
**13,677**
2,809
1,008
372
-
2,871
672
1,150
**8,883**
4,658
47,321
18,560
9,782
697
**81,018**
600
**600**
297
1,554
11,522
3,521
**16,894**|**2020**
**£**
**110,032**
**4,694**
**121,072**|
|---|---|---|
Page 12