Charity registration number.. 1103602 Oriental Fine Arts Academy of London Annual Report and Financial Statements for the Year Ended 31 December 2024 MG Audit Services Limited Chartered Accountants & Registered Auditors 166 College Road Harrow Middlesex HA1 1BH
Oriental Fine Arts Academy of London Contents Reference and Administrative Details Trustees, Report 2to6 statement of Trustees, Responsibilities in Respect of the Financial Statements Independent Auditors, Report 8t010 Statement of Financial Activities 11 Balan Sheet 12 Notes to the Financial Statements 13to24
Oriental Fine Arts Academy of London Reference and Administrative Details Trustees Mr P Niranjan Mr P Navendren Mrs A Vimaladasa Mr S Selvendran Mr M T Selvarajah Mr S Dawood Mr S Suresh Principal Office 32 South Vale Drive Sudbury Hill Harrow Middlesex HA1 3PH Charity Registration Number 1103602 Auditor MG Audit Services Limited Chartered Accountants & Registered Auditors 166 College Road Harrow Middlesex HA1 1BH Page 1
Oriental Fine Arts Academy of London Trustees. Report The trustees present the annual report together with the finanaal statements of the charity for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies outlined in Note 1, have been prepared to comply with OFAAL'S goveming document, the Chartties Act 2011, and the 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)" as amended for accounting periods commencing from January 1, 2024. Objectives and activities Objects and aims The trustees have diligently adhered to the duty outlined in section 17 of the Charities Act 2011, ensuring due regards to the public benefit guidance issued by the Commission. The principal objectives of OFAAL. as outlined in our constitution, encompass a broad spectrum of activities aimed at advancing education, promoting native language and cultures, and providing support to the community. Public benefit statement Public benefit remains central to our charitable activities. The iwo criteria defining public benefitAdentifiable benefits and benefits to the public-have been carefully reviewed and addressed. The trustees have conducted the necessary evaluations and are pleased to confirm compliance with their duties. Achievements and performance Throughout 2024, OFAAL has been actively engaged in fulfilling its constitution's objectives and maintained a strong presence and delivered SeiceS to its members and the wider community. Page 2
Oriental Fine Arts Academy of London Trustees. Report Expanding Offerings and Cultural Preservation OFAAL remains dedicated to fostering South Asian cultural heritage through teaching and examinations in various musical instruments and classical dan foms. The inclusion of Kuchipudi dance has not only attracted a wider South Asian audien but has continued to see a rise in non-Tamil speaking candidates. with many achieving high grades. We take pride in being a cultural cornerstone for the South Asian community in West London. Community Engagement and Graduates and Ambassadors: We take pride in being a cultural comerstone for the South Asian community in West London. OFAAL Tamil and Advanced Fine Arts School, managed by our Head Master and Deputy Head Teacher, has become a ntre of excellence. Our Fine Arts teachers, renowned in the UK and Europe, contribute significantly to cultural programs, competitions, and are sought-after judges and speakers at prestigious events. OFAAL graduates are now actively particiapating, volunteering, and serving as arnbassdors for the charity. Achievement and performance Further milestone achievements of OFAAL during 2024 Accreditiation with RSL (Rock School) In 2024, our collaboration with RSL (Rock School) continued to thrive, with candidates taking grade 3 to 8 OFAAL examinations receiving OFQUAL accredited certificates. Grades 6 to 8 continue to earn UCAS points, positioning OFAAL advantageously in the market and benefiting hundreds of students in their university applications. Public Benefits and Graduation Ceremonies OFAAL is continually expanding its offerings and public benefits. We continue to offer additional Fine Arts subjects and conduct graduation ceremonies for those who have completed teachers, grades and Post-Diploma Levels. Furthermore, we are delighted to report a growing trend of students advancing their studies, with more and more candidates now starting to take post4iploma examinations, demonstrating a deepening commitment to the highest levels of the fine arts. A major highlight of the year was the successful UK Graduation ceremony. which was conducted on 10 February 2024. Held in a style akin to reputable universities in the United Kingdom, the event was immensely successful, honouring our graduates and drawing thousands of attendees, including parents, music teachers, and distinguished guests. This successful event set the stage for continued global recognition. Global Graduation Events OFAAL'S graduation ceremonies have maintained their intemational reach, with events planned or executed in Norway, Germany, and France during the reporting period, following the grand success of the ninth rernonY in Germany in October 2023. Examination Growth and Post-Pandemic Recovery The commitment of our community and the sUcSsJ1 adaptation to online platforms during the prior period have translated into significant growth this year. The number of students taking Fine Arts examinations continues to grow each year. CrLrcially, the number of students taking OFAAL exams gradually started to increase after COVID-19 issues, demonstrating a strong recovery from the global pandemic and reaffirming the relevance and quality of OFAAL'S accredited programs. The trustees are gratified by this sustained growth, showcasing the increasing impact and relevan of OFAAL in the community. Page 3
Oriental Fine Arts Academy of London Trustees. Report The Pillars of Our Success: Volunteers We are profoundly grateful to our volunteer community. We use many dedicated volunteers to successfully conduct our Tamil school, examinations, and other charitable activities. Our community volunteers are truly the pillars of our Sucss, enabling OFAAL to deliver its mission and expand its public benefit globally. Financial review The results for the year are shown in the financial statements. The statement of the financial activities shows the incoming resources and the resources expended by the different activities concluded by the charity. In order to provide a better understanding of the acts'vities undertaken. a summary of the activities is included. The charity has net surplus for the year of £45,876 (2023: £21,064 deficit), Total income fund balances of £685,932 (2023: £640,056) will be carried forward to the next accounting period. Reserves Policy The trustees consider that the charity's reserves are adequate to meet its day to day expenditure and in the event of a shortrall they have access to sufficient reSoUrS to meet any deficit. For this reason, the Trustees do not believe a minimum level of reserve should be maintained. The assets of the charity are held in the names of the holding Trustees. The constitution authorises the trustees to make capital investments in furtherance of the Charity's objectives. Risk Management The Board of Trustees is committed to a process of continuous risk identification, assessment, and mitigation to ensure the long-temi sustainability and integrity of OFAAL. A comprehensive review of the major risks to which the charity is exposed has been conducted. These risks, categorized across operational, financial, govemance, and reputational domains, are managed by implementing robust control procedures and intemal policies. The trustees are satisfied that these measures provide reasonable assurance against significant threats to the organisation's assets and mission. Policies Reviewed and Adopted To further strengthen our govemance framework and operational standards, the following key policies have been formally reviewed and adopted by the Board of Trustees during the reporting period= Complaints Policy Conflicts of Interest Policy Customer Service Policy Cyber Security policy Equality and Diversity Policy Examinations Appeals Policy Policy and Procedures for Malpracti Quality Assurance Policy Safeguarding Policy Special Considerations Policy The adoption of these policies ensures clarity, fairness, and consistency in our operations and underpins our commitment to providing a safe. accessible, and high-quality experien for all our students, staff, and stakeholders. Looking Forward: Strategic Initiatives for 2025 Building on the momentum of 2024. the trustees have approved key strategic initiatives to enhance accessibility and expand our geographical reach in the coming year.. Page 4
Oriental Fine Arts Academy of London Trustees. Report Digital Examination Portal-. We are planning to adopt an online portal for all theory examinations. This move is designed to streamline the assessment process, increase candidate convenience, and ensure greater security and standardisation across all exam centres globally. UK Centre Expansion-. We are actively planning to re-start the examination process in Belfast to serve our community in Northern Ireland and to open a new exams centre in Crawley in 2025, further increasing physical access points for candidates across the United Kingdom. France Centre Rationalisation- We are planning to close the Paris-2 centre in 2025 as it is not financially viable to operate. given that the Paris-1 ntre is the popular choice for the majority of Paris candidates. Structure, govemance and management The Charity is an unincorporated charity formed under a constitution under a deed dated 5th May 2004, which was adopted on 9th December 2000 and as amended on 28th February 2004, 21st October 2011, and 1 Oth November 2012. It has been registered with the Charity Commission under reference 1103602. The Trustees who served during the year were.. Mr P Niranjan - Hon. Chaimian, and Pemianent Trustee Mrs Anne Priminie Vimaladasa- Hon. Secretary, Deputy Head Teacher and Permanent Trustee Mr P Navendren -Hon. Treasurer and Permanent Trustee Mr S Selvendran - Hon. Vice Chaiman and Permanent Trustee Mr S Suresh - Permanent Trustee Mr. M.T. Selvarajah - Head Teacher and Trustee Mr S Dawood - Asst. Treasurer and Trustee The board of Trustees is made up of five permanent Trustees and four elected Trustees. The elected four trustees shall seNe for a period of three years. provided the election of the membership have been met during the period. The four trustees shall be elected during the AGM or by secret ballot amongst the general membership for a term of three years. The election will be held for every three years. Election of pennanent Trustees: All new permanent Trustees will be elected by the existing Trustees. If more than one name is recommended, the majority decision of the Trustees who are attending the meeting will determine the newly elected permanent trustee. Each Trustee is entitled to one vote, but in the event of a tie, the person chairing the meeting shall have s second or casting vote. However, a Trustee may not vote on any issue that directly affects him or her. The Charity Commission will be informed of this Change and an up to date list of all Trustees will be sent to the Charity Commission. Relationship with Other Charity The Trust does not have any direct or indirect relationship with any other Charity operating in the UK or other parts of the world. Trustees. Remuneration All the trustees are highly professionally qualified. yet they do offer their service on a voluntary basis, except the following trustees who are paid a nominal fee as below.. Mr MT Selvaraiah - Head Teacher Mrs A Priminie Vimaladasa Scandinavia Mr S Selvendran - France Coordinator Mr S Dawood - Asst. Deputy Head and Holland Coordinator Page 5 Deputy Head Teacher, Examiner and Centre Coordinator for
Oriental Fine Arts Academy of London Trustees. Report Trustees Loans & Donations During the fiscal year Trustees made £860 donats.on to the Charity, and the Charity did not make any loan or donation to any of the Trustees. Governance and Leadership Transition A significant change in governance occurred in early 2024. We extend our deepest gratitude and recognition to our outgoing Chairman, Mr S Suresh, for his exceptional dedication and leadership over Iwo decades. Mr Suresh was instrumental in building the organisation to its current level of success. overseeing its expansion, and successfully securing the organisation's integrity in many vital legal battles concerning our name and intellectual propety. His legacy forms the bedrock of OFAAL'S trusted position in the Fine Arts community. Following the deep sorrowful acknowledgment of the passing of Mr Ratnaswamy Sritharan, our esteemed permanent trustee and treasurer, in December 2023, the Board of Trustees convened to affirm our forward-looking leadership. We are pleased to announce the appointment of Mr P Niranjan as the new Chairman of the Board of Trustees in early 2024. Mr Niranjan brtngs a wealth of experience and a deep commitment to the arts and cultural preservation, and his leadership will guide OFAAL into its next phase of growth and global expansion. Conclusion In conclusion, 2024 has been a year of significant transition, recovery, and success. Despite the deep loss felt by the passing of Mr R Sritharan, the appointment of Mr P Niranjan as the new Chairman ensures strong leadership. The successful UK Graduation remonY in February 2024 and the confirmed increase in student examination uptake post-COVID are clear indicators of OFAAL'S growing strength and resilience. As we look fotward to the coming year, we remain committed to providing high-quality Fine Arts education, promoting cultural values. and contributing to the well-being of the community under our new leadership. The annual report was approved by the trustees of the charity on 2911012025and signed on its behalf by.. Mr P Niranjan Trustee Mr P Navendren Trustee Page 6
Oriental Fine Arts Academy of London Statement of Trustees. Responsibilities in Respect of the Financial Statements The trustees are responsible for preparing the trustees, report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally ACpted Accounting Practi) and applicable law and regulations. The law applicable to charities 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 reSoUrS and application of resources of the charity for that period. 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 Chanties SORP; make judgements and estimates that are reasonable and prudent., state whether applicable 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 conrn basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports} Regulations, and the provisions of the constitution. 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. Approved by the trustees of the charity on 2911012025and signed on its behalf by.. Mr P Niranjan Trustee Mr P Navendren Trustee Page 7
Oriental Fine Arts Academy of London Independent Auditor's Report to the Members of Oriental Fine Arts Academy of London Opinion We have audited the financial statements of Oriental Fine Arts Academy of London (the 'charity') for the year ended 31 December 2024, which comprise the Statement of Financial Activities, Balan Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. and applicable law (United Kingdom Generally ACpted Accounting practi}. In our opinion the financial statements- give a true and fair view of the state of the charity's affairs as at 31 December 2024 and of its results for the year then ended., have been properly prepared in accordance with United Kingdom Generally ACpted Accounting Practice., have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordan with Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis ft)r our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material UnrtaIntieS relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustee's with respect to going conrn are described in the relevant sections of this reporL Other information The trustees are responsible for the other infomiation. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 8
Oriental Fine Arts Academy of London Independent Auditor's Report to the Members of Oriental Fine Arts Academy of London In connection with our audit of the fnancial statements, our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion= adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us.. or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees. Responsibilities in Respect of the Financial Statements {set out on page 7), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going COnM. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will aayS detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAS (UK). we exercise professional judgement and maintain professional scepticism throughout the audit. We also- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Page 9
Oriental Fine Arts Academy of London Independent Auditor's Report to the Members of Oriental Fine Arts Academy of London Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material UnrtaInty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However, frjture events or conditions may cause the charity to cease to continue as a going cOnM. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial ststements. We are responsible for the direction. supervision and performance of the charity audit. We remain solely responsible for our audit opinion. We communicate with those charged with govemance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charity trustees. as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the tnjstees those matters we are required to state to trustees in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not acpt or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Gavin Fernandes FCA, CTA (Senior Statutory Auditor) For and on behalf of MG Audit Services Limited, Statutory Auditor 166 College Road Harrow Middlesex HA1 1BH 30/10/2025 Page 10
Oriental Fine Arts Academy of London Statement of Financial Activities for the Year Ended 31 December 2024 Unrestricted Unrestricted funds funds 2024 2023 Note Income and Endowments from: Donations and legacies Charitable activities Investment income Other income 945 399,827 520 6,426 256 325,988 125 Totsl income 407,718 326,369 Expenditure on: Charitable activities (359,206) (339,491) Total expenditure (359,206) (339,491) Net incomellexpenditure) Other recognised gains and losses Other exchange losses 48,512 {13,122) (2,636) (7,942) Net movement in funds 45,876 {21,064) Reconciliation of funds Total funds brought fomard 640,056 661,120 Total funds carried fomard 18 685,932 640,056 All of the charity's activities derive from continuing operats.ons during the above periods. Page 11
Oriental Fine Arts Academy of London (Registration number: 1103602) Balance Sheet as at 31 December 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets 12 13 1,446 590,220 590,000 590,000 591,666 Current assets Debtors Cash at bank and in hand 14 7,780 64,631 121,460 121,460 72,411 Creditors: Amounts falling due within one year 15 125,528) {24,021) Net current assets 95,932 48,390 Net assets 685,932 640,056 Funds of the charity: Unrestricted income funds Unrestricted funds 685,932 640,056 Total funds 18 685,932 640,056 The financial statements on pages 11 to 24 were approved by the trustees. and authorised for issue on 291.1.Q12Q25and signed on their behalf by: Mr P Niranjan Trustee Mr P Navendren Trustee Page 12
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 1 Significant accounting policies Charity infonnation Oriental Fine Arts Academy of London is a charity established in the UK. The principal address is 32 South Vale Drive, Sudbury Hill, Harrow, Middlesex, HA13PH. Statement of compliance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practi 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 Charities Act 2011. The financial statements are prepared in sterfing, which is the functional currency of the OFAAL. Monetary amounts in these financial statements are rounded to the nearest £. Basis of preparation Oriental Fine Arts Academy of London MtS the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Exemption from preparing a cash flow statement In accordance with the provisions available to qualifying charities under the SORP, the charity has not prepared a Statement of Cash Flows. Going concern The trustees consider that there are no material unrtaIntieS about the charity's ability to continue as a going conrn. Income and endowments Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability- Donations and legacies Donations and legacies are recognised on a re1vable basis when receipt is probable and the amount can be reliably measured. Deferred income Deferred income represents amounts received for future periods and is released to incoming reSoUrS in the period for which. it has been reived. Such income is only deferred when" The donor specifies that the grant or donation must only be used in future accounting periods- or The donor has imposed conditions which must be met before the charity has unconditional entitlement. Page 13
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asseys use. Other support costs are allocated based on the spread of staff costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and seNices for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. for example. allocating propety costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. Governance costs These include the costs attributable to the charity's Complian with constitutional and statutory requirements, including audit, strategic management and trustees's meetings and reimbursed expenses. Taxation The charity 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 charity 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. Intangible assets Intangible assets are stated in the Balan Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives. Tangible fixed assets Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Amortisation Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows= Asset class Website cost Amortisation method and rate Over 5 years Page 14
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 Depreciation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows.. Asset class Freehold land and buildings Fixtures and fittings IT Equipments Depreciation method and rate 250/0 reducing balan method 25 % reducing balance method Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction pri. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the re1vableS. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Trade creditors Trade creditors are obligations to pay for goods or servi$ that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least e1ve months after the reporting date. If there is an unconditional right to defer settlement for at least e1ve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest methc¥J. Fund structure Unrestricted income fijnds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity- Financial instruments Classification Financial assets and financial liabilities are recognised vthen the charity becomes a paty to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Page 15
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 Recognition and measurement All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another paty substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another paty. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. Fair value measurement The best eviden of fair value is a quoted Pri for an identical asset in an active market. When quoted prices are unavailable, the price of a rent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took pla. If the market is not active and rent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. Employee benefits The cost of any unused holiday entit]ement is recognised in the period in which the employee's servi$ are received. Terminaton benefits are recognised immediately as an expense when the OFAAL is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Page 16
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 Critical accounting estimates and judgements In the application of the OFAAL'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. 2 Income from donations and legacies Unrestricted funds Unrestricted Unrestricted funds funds 2024 2023 General Donations and legacies- Donations from individuals 945 945 256 945 945 256 3 Income from charitable activities Unrestricted Unrestricted funds funds 2024 2023 Income from Tamil School SeNices provided to students 42,788 357,039 43,194 282,794 399,827 325,988 4 Investment income Unrestricted Unrestricted funds funds 2024 2023 Interest receivable and similar income- Interest receivable on bank deposits 520 125 Page 17
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 5 Expenditure on charitable activities Charitable activities 2024 Charitable activities 2023 Examination costs Teachers. and examiners, expenses Volunteers expenses Venue hire Tamil school books Tamil school travel & subsistence Graduation expenses Sundry expenses Support cost {see note 6) Governance cost (see note 6) 80,073 107.168 5,553 74,898 4,505 9,478 10,001 73,382 96,692 3,826 77,938 2,848 5,465 9,217 217 66,006 3,900 61,030 6,500 359,206 339,491 The charity makes use of volunteers as and when required to assist with the provision of examinations. Volunteers are either paid a nominal fee or no payment at all. Expenses paid to volunteers have been included within charitable activities. A reliable estimate of the cost of the time and effort donated by the volunteers in the furtherance of the charity's objectives is not possible to quantify. Page 18
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 6 Analysis of governance and support costs Governance costs 2024 2023 Audit fees Audit of the financial statements Legal fees 4,800 1,700 3,600 300 6,500 3,900 Support costs allocated to activities Totsl 2024 Total 2023 Staff costs Depreciation Bank charges offi costs Function costs Website and computer costs Premises costs Sundry expenses Insurance 29,956 1,666 6,477 5,316 4,433 8,781 29,054 1,738 4,609 6,458 4,934 8,802 9,891 520 143 4,258 61,030 66,006 Page 19
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 7 Net incomingloutgoing resources Net incomingl(outgoing) resources for the year include- 2024 2023 Audit fees Depreciation of fixed assets Amortisation of intangible assets 4,800 220 1,446 3,600 292 1,446 8 Trustees remuneration and expenses During the year the charity made the following transactions with trustees: Mr M T Selvarajah Mr M T Selvarajah received remuneration of £1,500 (2023: £1,500) during the year. Remuneration as Head Teacher. Mrs A Vimaladasa Mrs A Vimaladasa reiVed remuneration of £5,075 {2023: £4,743) and £2,635 12023: £2,760) of expenses were reimbursed to Mrs A Vimaladasa during the year. Remuneration as Assistant Head Teacher. Mr S Selvendran Mr S Selvendran received remuneration of £5.714 (2023.. £5.000) and £1.876 (2023.. £Nil) of expenses were reimbursed to Mr S Selvendran during the year. Mr S Dawood Mr S Dawood reiVed remuneration of £200 (2023.. £520) and £210 (2023.. £296} of expenses were reimbursed to Mr S Dawood during the year. Mr P Niranjan £1,785 {2023.' £Nil) of expenses were reimbursed to Mr P Niranjan during the year. Mr S Suresh £25 (2023.. £Nil) of expenses were reimbursed to Mr S Suresh during the year. Mr P Navendren £50 (2023.. £Nil) of expenses were reimbursed to Mr P Navendren during the year. Donations made by the trustees without any conditions attached totalled £860 for the year (2023 £256). Page 20
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 9 Staff costs The aggregate payroll costs were as follows: 2024 2023 Staff costs during the year were: Wages and salaries Pension costs 29,389 567 28,548 506 29,956 29,054 The monthly average number of persons (induding senior management team) employed by the charity during the year expressed as full time equivalents was as follows.. 2024 2023 Employees 30 28 No employee reiVed emoluments of more than £60,000 during the year 10 Auditors, remuneration 2024 2023 Audit of the financial statements 4,800 3,600 11 Taxation The charity is a registered charity and is therefore exempt from taxation. 12 Intangible fixed assets Page 21
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 Website cost Total Cost At 1 January 2024 7,230 7,230 At 31 December 2024 7,230 7,230 Accumulated amortisation At 1 January 2024 Charge for the year 5,784 1,446 5,784 1,446 At 31 December 2024 7,230 7,230 Net book value At 31 December 2024 At 31 December 2023 1,446 1,446 13 Tangible fixed assets Freehold land and buildings Fixtures and fittings IT Equipments Total Cost At 1 January 2024 589.343 2.200 3,175 594,718 At 31 December 2024 589.343 2.200 3,175 594,718 Accumulated depreciation At 1 January 2024 Charge for the year 1,678 131 2,820 89 4,498 220 At 31 December 2024 1,809 2,909 4,718 Net book value At 31 December 2024 589,343 391 266 590,000 At 31 December 2023 589,343 522 355 590,220 14 Debtors 2024 2023 Prepayments Other debtors 7,027 753 7,780 Page 22
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 15 Creditors: amounts falling due within one year 2024 2023 other taxation and social security Accruals Deferred income 7,720 4,800 13,008 1,725 22,053 243 25,528 24,021 Page 23
Oriental Fine Arts Academy of London Notes to the Financial Statements for the Year Ended 31 December 2024 16 Deferred income 2024 2023 Deferred income at 1 January 2024 ReSoUrS deferred in the period Amounts released from previous periods 243 13,008 1243) 13,008 4,000 243 (4,000) 243 Deferred income at year end 17 Pension and other schemes Defined contribution pension scheme The charity operates a defined contribution pension scheme for all qualifiying employees. The assets of the scheme are held separately from those of the OFAAL in an independently administered fund. The pension cost charge to profit or loss for the year represents contributions payable by the charity to the scheme and amounted to £567 (2023 - £506). 18 Funds Balance at Other 31 Incoming Resources recognised December resources expended gainsl{losses) 2024 Balance at 1 January 2024 Unrestricted funds General General funds 640,056 407,718 (359,206) (2,636} 685,932 Balance at Other 31 Incoming Resources recognised December resources expended gainsl(losses) 2023 Balance at 1 January 2023 Unrestricted funds General General funds 661.120 326.369 (339.491) (7,942) 640,056 19 Related party transactions There were no related party transacts.ons in the year other than those mentioned in note 8. Page 24