2022-07-31-accounts - Sms Foundation

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Charity registration number 1191346

Company registration number 12750793 (England and Wales)

SMS FOUNDATION

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr S S Stimler Mr M Stimler Mrs L P Stimler

Charity number 1191346 Company number 12750793 Registered office Honeypot House 56a Crewys Road London NW2 2AD Independent examiner RDP Newmans LLP Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) CONTENTS

	Page
Trustees' report	1 - 3
Statement of Trustees' responsibilities	4
Independent examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8 - 15

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022

The Trustees present their annual report and financial statements for the year ended 31 July 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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)".

Principal aims, objectives and activities

The charity's objects are to advance the Jewish religion, advance Jewish religious education and the alleviation of poverty among the Jewish community throughout the world. SMS Foundation operates with the aim of raising funds in order to advance such charitable purposes (according to the law of England and Wales) as the trustees see fit. The Charity primarily makes grants to Jewish causes but can also choose to make grants to general charities if they feel that this would be an appropriate and effective way of advancing the charity's objectives.

In this context the Trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission in relation to the activities being for the public benefit, as well as, the Equalities Act 2010 when reviewing the Charity's aims and objectives and in planning future activities.

The charity has power to do anything which is calculated to further its objects or is conducive or incidental to doing so. The charity has investments in Limited Partnerships and the purpose of these investments is to create income, then distribute these as charitable donations. The trustees believe the long term quarterly income received from these investments will give longevity to the donations in the future.

Through grants to organisations or individuals the primary work of the charity is grants to UK registered charities. In some instances, grants may be made to overseas entities, which would also be registered charities in their respective jurisdictions.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Grant making policy

Grants above £5,000 can be made only after a meeting at which at least 2 of the trustees are present and at which Minutes have been taken proposing the award of a grant and indicating the trustees’ joint agreement thereon.

Grants are to be made after considering the finite level of funding available and how closely the recipient’s objectives are in line with those of the charity. All applications for grants are to be made either in writing or in person to 1 or more trustee.

Trustees will keep a written record of grants awarded and the considerations undertaken.

Grants could be one-off payments or commitments to ongoing payments. The trustees will ensure an appropriate contract is in place for ongoing grants which will include clawback provisions and instalment payments as relevant.

Grant recipients will primarily be organisations registered with the Charity Commission who can provide evidence of full compliance with the reporting requirements, thereby enabling the trustees to place reliance as to the competence and integrity of the organisation.

In the less likely event that grants will be made overseas, the trustees will in such cases require similar and sufficient evidence of compliance with the local reporting requirements for registered charities in that jurisdiction.

In the rare event that a grant is made to an individual, the trustees will be personally familiar with the situation so as to be reliably sure that the cause is genuine, and will, when relevant, require proof financial standing and other relevant information.

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Achievements and performance

The results for the year are set out in the Statement of Financial Activities on page 7.

The Trustees collected donations of £nil (2021: £1,510,000), distribution income amounting to £194,843 (2021: £33,769) and share of income amounting to £2,818 (2021: £nil)

The charity made an additional investment in the year totaling £111,188 to be a 5% beneficiary of an investment property that is held in Trust, with the aim of generating income. Surplus income from the investments held by the charity is distributed as charitable donations in the form of long term quarterly grants to fulfil the charitable objects.

During the year, the charity made charitable grants of £151,510 (2021: £nil).

Financial review

The distribution income received by SMS foundation totalled £194,843 and share of income totalled £2,818.

SMS Foundation has a healthy financial position, with closing fund balances amounting to £1,572,820, of which no funds relate to restricted funds. Furthermore, an amount of £1,405,718 within the closing unrestricted fund balance is held as investments in the Limited Partnerships and £111,188 is held in investment property. These proportions of the fund can only be realised by disposing of the investments. Therefore, any income from the investments are used for charitable purposes.

The principal funding source was the distribution and share of income from the investment portfolio.

Reserves policy and going concern

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Investment policy

In accordance with the Trust Deed, the Trustees have the power to invest in such assets as they see fit.

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

Post year end the charity has continued to make distributions from the surplus funds. The charity will continue to make charitable donations going forward which will be made from the income distributed from the investments held by the charity.

The Trustees have assessed the impact of the Coronavirus pandemic on the charity and are of the opinion that this should not materially impact the charity in the long term.

Structure, governance and management

The charity is a company limited by guarantee and is governed by its Memorandum of Association and Articles of Association adopted 17 July 2020 and registered at Charities Commission on 18 September 2020. The Charity was established under its Articles of Association, which established the objects and powers of the Charity. The Charity's reference and administrative details are as set out within these financial statements.

History

SMS Foundation is a registered charity (charity number: 1191346), with the purpose to advance such charitable purposes (according to the law of England and Wales) the Trustees see fit from time to time particularly but not limited to advancing the Jewish religion, advancing Jewish religious education and the alleviation of poverty among the Jewish community throughout the world.

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr S S Stimler

Mr M Stimler Mrs L P Stimler

Recruitment, appointment and terms of office of Trustees

Trustees are appointed in accordance with the Articles of Association.

The Charity has the power to appoint additional Trustees as it sees fit.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Operations and staffing

The Trustees collectively manage the charity with all executive decisions being made by the Trustees.

Risk management

The Trustees have identified and reviewed the major risks to which the charity is exposed. Both manual and automated checks are regularly invoked, particularly those relating to the operations and finance of the charity. The Trustees are satisfied that these systems and procedures mitigate any perceived risks.

Coronavirus pandemic

The Trustees have assessed the impact of the global Coronavirus pandemic and subsequent intervention from governments worldwide. The Trustees monitor the situation and respond to changes as necessary.

Introduction and training of Trustees

All Trustees are now already familiar with the practical work of the charity. Induction procedures are in place for new Trustees, with mechanisms in place to keep all the Trustees abreast of developments in the sector.

Fundraising

The Board of Trustees supports raising funds from the public in relation to our core activities. No professional fundraisers or third party commercial participators are used.

Related parties

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.

During the year, no donations (2021: £1,510,000) were received from Loudwater Trade and Finance Limited. A company that is related by virtue of the Trustees Mr S S Stimler and Mr M Stimler also being the directors and shareholders.

The Trustees' report was approved by the Board of Trustees.

Mr S S Stimler Trustee 3 January 2023

Mr M Stimler Trustee

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2022

The Trustees, who are also the directors of SMS Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SMS FOUNDATION

I report to the trustees (who are also Directors for the purpose of company law) on my examination of the financial statements of SMS Foundation (‘the charitable company’) for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable 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 material 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 charitable company as required by section 386 of the 2006 Act; or
2 the financial statements do not accord with those records; or
3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view which is not a matter considered as part of an independent examination; or
4 the financial statements 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 financial statements to be reached.

David Finn FCA

RDP Newmans LLP

Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW

Dated: 3 January 2023

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2022

		Unrestricted	Unrestricted
		funds	funds
		2022	2021
	Notes	£	£
Income from:
Donations and legacies	3	-	1,510,000
Charitable activities	4	2,818	-
Investments	5	194,843	33,769
Total income		197,661	1,543,769
Expenditure on:
Raising funds	6	4,180	1,890
Charitable activities	7	151,510	-
Other	11	5,030	6,000
Total expenditure		160,720	7,890
Net income for the year/
Net movement in funds		36,941	1,535,879
Fund balances at 1 August 2021		1,535,879	-
Fund balances at 31 July 2022		1,572,820	1,535,879

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 JULY 2022

Notes Fixed assets Investment properties 12 Investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets Income funds Unrestricted funds	2022 £ £ 111,188 1,405,718 1,516,906 27,019 96,804 123,823 (4,909) 118,914 1,635,820 (63,000) 1,572,820 1,572,820 1,572,820	2021 £ £ - 1,405,718 1,405,718 39,919 96,242 136,161 (6,000) 130,161 1,535,879 - 1,535,879 1,535,879 1,535,879	2021 £ £ - 1,405,718 1,405,718 39,919 96,242 136,161 (6,000) 130,161 1,535,879 - 1,535,879 1,535,879 1,535,879
			1,405,718 130,161
			1,535,879 -
			1,535,879
			1,535,879
			1,535,879

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 3 January 2023

Mr S S Stimler Mr M Stimler Trustee Trustee

Company registration number 12750793

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

Charity information

SMS Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Honeypot House, 56a Crewys Road, London, NW2 2AD. The Charity is registered at Charities Commission with registration number 1191346.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Distribution income is recognised on a receivable basis.

1.5 Expenditure

Costs of generating funds are those costs incurred in attracting and administering voluntary income.

Expenditure on charitable activities include both direct costs and those costs incurred in support of the charitable expenditure and have been allocated to the sole charitable activity.

Other expenditure includes the costs of any legal advice to the trustees on governance or constitutional matters, external accountancy and audit costs.

The charity is not registered for VAT so all expenses shown in the Statement Of Financial Activities and notes to the accounts are shown gross (i.e. inclusive of VAT).

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.6 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the view of the Trustees, there are no significant accounting estimates and judgements applied.

3 Donations and legacies

Unrestricted Unrestricted funds funds 2022 2021 £ £ Donations and gifts - 1,510,000 Charitable activities Share of income Share of income 2022 2021 £ £ Share of income 2,818 -	Unrestricted Unrestricted funds funds 2022 2021 £ £ Donations and gifts - 1,510,000 Charitable activities Share of income Share of income 2022 2021 £ £ Share of income 2,818 -	Unrestricted Unrestricted funds funds 2022 2021 £ £ Donations and gifts - 1,510,000 Charitable activities Share of income Share of income 2022 2021 £ £ Share of income 2,818 -

	Share of income	Share of income
	2022 £ 2,818	2021 £ -

4 Charitable activities

10 -

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

5 Investments

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Investment income	194,843	33,769

6 Raising funds

Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising and publicity Other fundraising costs - bank charges 4,180 1,890 4,180 1,890 Charitable activities Grants to instituitions Grants to instituitions 2022 2021 £ £ Grant funding of activities (see note 8) 151,510 - Grants payable Grants to instituitions Grants to instituitions 2022 2021 £ £ Grants to institutions (64 grants): Friends of KH 5,200 - Grants to various other institutions (£5,000 or less) 146,310 - 151,510 -	Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising and publicity Other fundraising costs - bank charges 4,180 1,890 4,180 1,890 Charitable activities Grants to instituitions Grants to instituitions 2022 2021 £ £ Grant funding of activities (see note 8) 151,510 - Grants payable Grants to instituitions Grants to instituitions 2022 2021 £ £ Grants to institutions (64 grants): Friends of KH 5,200 - Grants to various other institutions (£5,000 or less) 146,310 - 151,510 -	Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising and publicity Other fundraising costs - bank charges 4,180 1,890 4,180 1,890 Charitable activities Grants to instituitions Grants to instituitions 2022 2021 £ £ Grant funding of activities (see note 8) 151,510 - Grants payable Grants to instituitions Grants to instituitions 2022 2021 £ £ Grants to institutions (64 grants): Friends of KH 5,200 - Grants to various other institutions (£5,000 or less) 146,310 - 151,510 -
	2022 £ 5,200 146,310 151,510	2021 £ - -
		-

7 Charitable activities

8 Grants payable

11 -

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year, nor were any expenses reimbursed to them.

10 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
	2022	2021
	Number	Number
Total	-	-
There were no employees whose annual remuneration was more than £60,000.

11 Other

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
Legal and professional	230	-
Accountancy fees	4,800	-
Auditors remuneration	-	6,000
	5,030	6,000
Investment property
		2022
		£
Fair value
At 1 August 2021		-
Additions through external acquisition		111,188
At 31 July 2022		111,188

12 Investment property

SMS Foundation is a 5% beneficiary of an investment property that is held in Trust.

The Trustees having suitable market knowledge considered the above valuation to be a fair reflection of the investment property at 31 July 2022.

12 -

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

12 Investment property

(Continued)

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

Cost Accumulated depreciation Carrying amount 13 Fixed asset investments Cost or valuation At 1 August 2021 & 31 July 2022 Carrying amount At 31 July 2022 At 31 July 2021 Investments at fair value comprise: Investments in Limited Liability Partnerships 14 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income	2022 2021 £ £ 111,188 - - - 111,188 - Unlisted investments £ 1,405,718 1,405,718 1,405,718 2022 2021 £ £ 1,405,718 1,405,718 2022 2021 £ £ - 28,328 27,019 11,591 27,019 39,919

13 -

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

15 Loans and overdrafts

Bank loans Payable after one year	2022 £ 63,000 63,000	2021 £ -
		-

The long-term loans are secured by fixed and floating charges held over the investment property.

16 Creditors: amounts falling due within one year

16	Creditors: amounts falling due within one year
			2022		2021
			£		£
	Other creditors		109		-
	Accruals and deferred income		4,800		6,000
			4,909		6,000
17	Creditors: amounts falling due after more than one year
			2022		2021
		Notes	£		£
	Bank loans	15	63,000		-
18	Analysis of net assets between funds
			Unrestricted	Unrestricted
			funds		funds
			2022		2021
			£		£
	Fund balances at 31 July 2022 are represented by:
	Investment properties		111,188		-
	Investments		1,405,718		1,405,718
	Current assets		123,823		136,161
	Current liabilities		(4,909)		(6,000)
	Long term liabilities		(63,000)		-
			1,572,820		1,535,879

19 Related party transactions

The Trustees of the Charity are considered to be key management personnel. Total remuneration in respect of these individuals is given in note 10.

14 -

SMS FOUNDATION (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

19 Related party transactions

(Continued)

20 Limited by guarantee

The liability of members is limited to a sum not exceeding £1, being the amount that each member undertakes to contribute to the assets of the charity in the event of its being wound up while he, she or it is a member or within one year after he, she or it ceases to be a member, for;

(1) payment of the charity’s debts and liabilities incurred before he, she or it ceases to be a member;

(2) payment of the costs, charges and expenses of winding up; and

(3) adjustment of the rights of the contributories among themselves.

15 -