A_SMILE_FOR_A_CHILD - Accounts

The trustees, who are also the directors for the purposes of company law, present their annual report and financial statements for the Period ended 30 September 2023.

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 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 objectives of the charity are to provide or assist in the provision of facilities for recreation or other leisure time occupations in the interest of social welfare. Such facilities being provided to the public at large save that special facilities may be provided to the persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services; and/or to promote and preserve good health through community participation in health recreation.

How our Activities Achieve Public Benefit

Our main activities and who we help are described below. In planning our activities the Trustees have had due regard to guidance published by the Charity Commission on public benefit. All our charitable activities are undertaken to further our charitable purposes for the public benefit. We offer our services free of charge and access to our assistance is equal to all. We help disabled or disadvantaged children progress in mobility, sport and recreation where the NHS does not.

Activities

In furtherance of our objectives, we undertake several activities to raise funds to enable us to provide grants and support for those children who are otherwise disadvantaged. We arrange fundraising events, work with businesses and schools to gain their support and carry out collections.

In our final period of activity, we have continued to engage in fundraising activities, albeit at a much reduced level. As with the previous year, we had participants in some 'virtual events' who raised good sums of money for us. We were also pleased to be able to have participants in events such as the Great North Run.

We received a few more applications for funding than the previous year, which we were happy to be able to help with. We have been able to support 10 organisations and 2 individuals throughout the period, as well as providing seats at Wembley for many more to attend sporting events where they are unable to participate in sport themselves. We have distributed funds both locally and nationally totalling £79,280. This includes the donation of our remaining funds to Get Kids Going, a charity whose objects are in keeping with our own.

We have been very lucky with the support the charity received from volunteers, friends and family. Not only regarding help with collections but also for organising and participating in fundraising events. In recognition of this, we held a celebration and memorial day at St George’s Park for our supporters and beneficiaries. During the day we looked back on the work of the charity and the contribution of our late CEO, Chris Read, and the effect he had on the lives of so many people. We presented cheques to some of the groups that we have supported over the years and who have helped us to raise funds for others. It was a fitting end to the charity and we wish everyone involved every success in the future.

During the previous year the trustees made the difficult decision to close the charity at 31st March 2023. We distributed funds to as many applicants as possible and the final remaining balance was donated to a charity which aims to help disabled children to participate in sporting activities. The charity will now, therefore, be closed.

Each year the majority of our incoming resources are unrestricted and the charity concentrates on providing as much support to its beneficiaries as possible.

Principal Funding Sources

Principal funding for the charity is through donations, collections and sponsorship events.

We are very grateful for the support from The John Lewis Partnership throughout the years that the charity has operated. This is through the Community Matters Scheme as well as being allowed to collect at Waitrose branches.

Investment Policy

Any cash reserves not required in the short term were invested in a high interest bank account.

Grant Making Policy

Payment of grants to beneficiaries is subject to board approval of applications made either directly or via our website. The existence of the applicant, whether individual or organisation, is confirmed before payment is made.

Reserves Policy

During the period we have repaid the Bounce Back Loan and donated all surplus funds. There were no remaining reserves at 30th September 2023 due to the charity ceasing.

A Smile For A Child is a charitable company limited by guarantee, incorporated on 6th December 2007. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association. Under those Articles, the board of Trustees is elected at Board meetings to serve a period of three years. Day to day running of the charity is delegated to Lauren Harrison, Chief Officer.

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

Trustee recruitment and appointment

All trustee appointments will be by joint decision by the current trustees. All new Trustees will be checked with the Disclosure and Barring Service.

Induction and Training of Trustees

New trustees will be given relevant training, including child protection in line with the charity's child protection policy.

Related Parties

Trustees represent various businesses and/or organisations. Any transactions with these are carried out on an arm's length basis. There are no other related party organisations.

The major risks identified by the Trustees have been reviewed and systems established to mitigate those risks. Additionally, risk assessments are carried out prior to specific events.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report (incorporating the directors' report) was approved and signed on behalf of the board of trustees by:

I report to the trustees on my examination of the financial statements of A Smile for a Child (the charity) for the Period ended 30 September 2023.

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.

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:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the 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.

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

All income and expenditure derive from discontinued activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the Period ended 30 September 2023.

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 Period 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.

A Smile for a Child is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 Sugarhill Crescent, Newton Aycliffe, Co. Durham, DL5 4FH.

The charity extended its accounting period to 30 September and the figures presented for the current period relate to the 18 month period ended 30 September 2023. As such, the comparative figures shown, which relate to the year ended 31 March 2022, are not entirely comparable.

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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. The principal accounting policies adopted are set out below.

The charity has ceased operating and is therefore not considered to be a going concern. It is the intention of the trustees to wind up the charity. Accordingly, the financial statements have been prepared on a basis other than going concern.

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

Designated funds are unrestricted funds which have been set aside by the trustees to be used for a particular purpose.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

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.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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.

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.

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, 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.

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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

Bank interest receivable

HMRC Coronavirus Job Retention Scheme

Business interruption payment

Refunds received

Costs of donations and collections

Charitable Activities

Charitable Activities

Insurance

Travel and subsistence

Telephone and internet

Other office costs

Other costs

Charitable Activities

Charitable Activities

The charity provides grants and donations to both organisations and individuals to further its charitable objective of facilitating the participation of disabled or disadvantaged children in sport and recreational activities.

Independent examiner's fees

Bank charges

Trustee training costs

Loan interest payable

The average monthly number of employees during the Period was:

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £1,839 (2022 - £1,839).

During the Period the charity entered into the following transactions with related parties:

During the period the charity paid a salary of £19,923 (year ended 31 March 2022 - £18,500) to Mrs L Harrison for her work as Chief Officer. Mrs Harrison is the daughter of Mrs N S Read, Trustee. Mrs Harrison's salary is at a rate below those normally paid for her position.