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2021-03-31-accounts

LESSONS FOR LIFE FOUNDATION

REPORT AND FINANCIAL STATEMENTS

for the year ended 31 March 2021

Charity Registration No. 1122320

Company Registration No. 06448222 (England and Wales)

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS Page
Company information 3
Trustees’ report 4
Auditors’ report 12
Consolidated Statement of financial activities 17
Statement of financial activities 18
Balance sheet 19
Statement of Cash Flows 20
Notes to the Financial Statements 21

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

COMPANY INFORMATION COMPANY INFORMATION
Trustees Street Child
Charity number 1122320
Company number 06448222
Registered office & 33 Creechurch Lane
principal address London EC3A 5EB
Auditors Moore Kingston Smith LLP
Chartered Accountants
Devonshire House,
60 Goswell Road
London EC1M 7AD
Bankers Barclays Bank PLC,
1st Floor, Atlas House
1-7 King Street
London EC2V 8AU

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

TRUSTEES REPORT About Lessons for Life

Lessons for Life is a children’s charity that funds education projects in Africa.

We believe that education changes everything.

Every child, no matter where they are born, has the right to an education.

We work in three areas:

On 1 April 2019 Lessons for Life joined the Street Child group. Street Child exists to make the largest difference possible in the lives and to the educational prospects of the world’s poorest and most marginalised children.

The form of the acquisition was the Lessons for Life entity becoming a subsidiary of Street Child as indicated by Street Child becoming a Trustee of Lessons for Life on 1 April 2019.

The substance of the acquisition was two charities joining forces and it has seen Lessons for Life integrated into Street Child’s management structure, policies and practices. Street Child is a fast growing charity whose ethos of ‘every child deserves an education’ matches Lessons for Life. Becoming part of a larger movement, means we can help more children in more parts of Africa to access education. With the continued support of Liberty Global, we will continue building on our founder Shane O’Neill’s legacy - ensuring children are given the chance to reach their full potential.

Programmes

Street Child have taken over the implementation of Lessons for Life Foundation projects in Uganda and Rwanda and the Lessons for Life Funding agreements with partners in these countries moved to Street Child as of January 2020. This means that the level of programme funded recorded by Lessons for Life has decreased in this Financial year as it reflects only the exit agreements already agreed with other partners. However the support and commitment to see children supported into receiving an education has not diminished, and the work with these key delivery partners continues.

Fundraising

Thank you to everyone who allows us to continue our work in Africa.

We organise a number of exciting fundraising events each year involving more than 1,000 of our passionate supporters, who literally go the extra mile. Thank you to everyone who takes part - your efforts are greatly appreciated!

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Due to COVID-19 our major fundraising events were not able to take place in 2020 – including the Big Ride for Africa, Gala Dinner and Football Tournament. However before the Pandemic we were excited that these events would be transferred to become Street Child events and support the fundraising efforts of the Street Child Group and a broader range of projects and with access to a greater number of supporters.

Despite not being able to go ahead with in-person events this year, we were honoured by the supporters that continued to donate and support our virtual fundraising and give so generously.

Summer and autumn of 2021 heralds the return of the Big Ride for Africa, the Gala Dinner and the Football Tournament.

Liberty Global and our Corporate Champions

Founding corporate partner Liberty Global continued to provide enormous support to the Street Child throughout 2020 and it provided its generous core grant to Street Child directly this year. Liberty Global continued to support Street Child through supporting the virtual events run by Street Child when in-person events had to be cancelled. A number of Liberty Global executives on the Street Child board continue to provide invaluable business advice to the charity and its leadership.

Although the Big Ride for Africa had to be cancelled in 2020 due to COVID, we were thrilled when a number of our long standing corporate partners honoured the agreements that they had made to sponsor the event. The income of £177,500 exceeds that from the previous year which is a remarkable achievement by our partners.

Other longstanding corporate supporters of Lessons for Life have also moved to work with Street Child, including Accenture, Afiniti, NTT Data and Deloitte.

Our Future Plans

We remain wholly committed to delivering greater change for the children, schools and communities we support. Our future is now linked with Street Child and as we transfer some of our key programmes across to Street Child, Lessons for Life will continue to focus delivering great fundraising as well as ambitious and successful programmes, whether delivered by Lessons for Life directly or indirectly via Street Child.

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Financials: Income

In the year to 31 March 2021 Lessons for Life Foundation had income of £224,081 compared to £2,953,649 in the prior year. The reduction is due to the merger with Street Child and the corresponding move of Fundraising activity from Lessons for Life to Street Child.

The Annual Donation from Liberty Global of £853k in 2020 (42% of income) was paid to Street Child and hence no income is included in this year’s accounts.

The two major fundraising activities (Big Ride for Africa and Gala Dinner) were already planned to move to Street Child although were unable to take place in 2021. Income from these was £2,012k in the prior year and £198k in the current year.

Financials: Expenditure

Costs of raising funds

Our cost of raising funds was £415,377 in 2021 compared to £1,839,920 in 2020. The Fundraising cost relates to costs incurred in planning the Bike Ride for Africa before it had to be postponed due to COVID.

Charitable expenditure

In line with our plans and expectations, active grants in Uganda and Rwanda transferred to be contracted with Street Child and so are not included as Lessons for Life activities. They are being actively continued within Street Child.

Our charitable expenditure in 2021 related to the final payment for closure of a project in South Africa.

Financials: Reserves

Lessons for Life Foundation reserves contribute positively to Street Child group reserves and reserves are assessed at both the whole group and individual charity levels. Lessons for Life Foundation entered the financial year unrestricted reserves of £1,394,591. Reserves as at 31[st] March 2021 were £1,101,931, all of which are unrestricted. This is ahead of the target reserves of the charity.

Street Child Group’s reserves policy is to maintain reserves within a range set with reference to key risks, and calibrated against the level of reserves that would be required to fund three to six months of operating costs.

The largest two risks facing Street Child are a fall or under-performance in Unrestricted income, and/or the need to use Unrestricted funds to cover Restricted Programme costs, for instance because of cost disallowed by the funders.

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

This quantification of reserves will be carried out on an annual basis as part of the budget setting process which concludes in March each year. At this stage the Trustees will consider if any of the major risks have changed, and also the quantification of the reserves in line with the budget.

For Street Child Group the reserves target is £0.5m to £1.5m, with a mid-range target of £1.0m. Street Child Group unrestricted reserves at 31 March 2021 of £1.3m were ahead of the mid-range target.

Lessons for Life Foundation have a £500,000 rolling loan facility with an interest rate significantly below market rates. A balance of £200,000 was repaid in February 2018 and it has not been utilised since.

Risk Management and internal control

The Street Child Trustees are fully aware of the need to assess the risks faced by the charity and to minimise those risks. They have conducted a comprehensive process to identity, assess and manager risks, with all risks being scored for likelihood and impact and management strategies and timelines being established. Changes to the risk register are reviewed by the Finance Committee each quarter and provided to each Board meeting (also quarterly) with a full review a the Board undertaken at least annually to assess all risk factors identified in the risk register and ensure that all Trustees are fully abreast of the risk situation in the organisation.

In addition to the risk register, each country holds a register for all large projects, which have their own risk registers that are used by project management teams to make operational decisions. All fundraising events have their own risk registers.

While no system of internal control can provide absolute assurance against material misstatement or loss, Street Child Group’s (including Lessons for Life Foundation) systems have been developed to provide assurance to the Board that there are proper procedures in place and that they are operating effectively.

Key elements of the system of risk management and internal control include:

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

The principal risks and uncertainties facing the charitable group, as identified by the Trustees of Street Child (the corporate Trustee of Lessons for Life Foundation) include the following:

Structure, governance and management

Lessons for Life Foundation operates through an incorporated charity registered with both Companies House in England & Wales and the Charity Commission in England & Wales and is governed in line with its Memorandum and Articles of Association.

It was incorporated on December 7, 2007 and registered as a charity on January 15, 2008. A subsidiary company, Lessons for Life Foundation Trading Company Limited was incorporated in England on January 8, 2016. The company is limited by guarantee and Lessons for Life Foundation is the sole member of the Trading Company, guaranteeing the liabilities up to £10.

Lessons for Life is governed as part of the Street Child group. The Street Child group Board meets at least four times a year and is responsible for the overall direction of the Charity and for core strategic policies, having regard to the advice of the Chief Executive. The Trustees delegate the dayto-day running of the charity to the Chief Executive.

Recruitment and appointment of Trustees

Appointment of Trustees is carried out having regard to the needs of the organisation, the suitability and skills of the candidate and by interview with interested parties.

Induction and training of new Trustees

We make new Trustees aware of their legal obligations under charity law and company law. New Trustees are given the required training to enable them to undertake their roles and to ensure that they act in the best interests of the charity. When they are appointed they receive briefing and background information about the charity from senior management, including governance, finance and current strategies and plans. All Trustees have the opportunity to see our programmes at their own expense.

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Organisation and Management

Lessons for Life is based in the United Kingdom, in London with projects implemented by our Africa based partners. The charity is managed by the Street Child Senior Leadership Team, led by the Chief Executive.

The Chief Executive is responsible for the day to day running of the Charity within the Scheme of Delegation agreed by the Trustees.

Fundraising standards

Street Child group employs a team a professional fundraisers, all of whom follow the best practice and legal requirements set out in The Code of Fundraising Practice, as well as those required under charity law and wider law. There was no reported failure to comply with The Code of Fundraising Practice. Outside of the team of professional fundraisers, Street Child’s volunteer fundraisers were all provided with relevant training or guidance notes including, where relevant, links to the necessary legal and best practices from the Institute of Fundraising. Agreed fundraising targets were monitored through reports provided by our online giving platforms and through regular communication and mentoring of volunteer fundraisers.

Street Child group commercial partners are all subject to agreeing a Commercial Participator’s Agreement that sets out the terms of the partnership including, but not limited to, payment plans, use of brand, inclusions/exclusions of the partnership and use of the agreed fundraising statement. Our data protection statement and marketing opt-ins were reviewed and updated to ensure only appropriate and relevant communications were sent to those supporters who had requested said information. Our electronic communications platform also offers the opportunity to opt out at every stage of mass communication.

Public benefit

The Trustees confirm that they have referred to the information contained in the Charity Commission’s guidance on public benefit and that they have complied with section 17 of the Charities Act 2011 to have due regard to this area.

The vision of the charity is that every child, no matter where they are born, has an education that equips them for life, and we work diligently to ensure that our programmes discriminate against no child regardless of race, religion, gender, sexual orientation, or HIV status, amongst other factors.

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustee Responsibilities

The Trustees, (who are also Directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In addition the Trustees confirm that they are happy that content of the annual review meet the requirements of both the Trustees’ Annual Report under charity law and the Directors’ Report under company law. They also confirm that the financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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.

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LESSONS FOR LIFE FOUNDATION

TRUSTEE’S REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Information provided to the auditors

In so far as the Trustees are aware:

This report has been prepared in accordance with the special provisions of Section 381 of the Companies Act 2006 relating to small companies.

Auditors

Moore Kingston Smith were newly appointed as the charity’s auditors during the year and a resolution for them to reappointed will be proposed at the forthcoming AGM.

The annual report and financial statements was approved by the Board of Trustees on 23[rd] December 2021 and signed on its behalf by:

Marcel van den Berg

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LESSONS FOR LIFE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION

Opinion

We have audited the financial statements of Lessons for Life Foundation (the ’company’) for the year ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Statement of Cash Flows 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 applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other

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LESSONS FOR LIFE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION

information. 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.

In connection with our audit of the financial 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) 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

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LESSONS FOR LIFE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION

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 group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance 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 assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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LESSONS FOR LIFE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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LESSONS FOR LIFE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION

We communicate with those charged with governance 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD Date: 23[rd] December 2021

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

16

Lessons for Life Foundation Statement of Financial Activities Consolidated

For the year ended 31 March 2021

Notes
2
4
5 & 8
5 & 9
5 & 9
5 & 9
Movement between funds
13
Charitable activities:
Income from:
Donations
Other trading activities
Raising funds
Communities
Reconciliation of funds
Total funds carried forward
Total funds brought forward
Total income
Expenditure on:
Total expenditure
Net income/(expenditure) & net movement in funds
Schools
Children		 Unrestricted
funds
2021
£
46,581
177,500
224,081
415,377
101,364
-
-
516,741
(292,660)
1,394,591
-
1,101,931		 Restricted
funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
2021
£
46,581
177,500
224,081
415,377
101,364
-
-
516,741
(292,660)
1,394,591
-
1,101,931		 Total
funds
2020
£
2,004,163
949,486
2,953,649
1,839,920
658,673
180,818
31,951
2,711,362
242,287
1,152,304
-
1,394,591

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

The accompanying notes form part of these financial statements

17

Lessons for Life Foundation Statement of Financial Activities of the Charity

For year ended 31 March 2021

Notes
2
4
5 & 8
5 & 9
5 & 9
5 & 9
Movement between funds
13
Raising funds
Income from:
Donations
Other trading activities
Total income
Expenditure on:
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Charitable activities:
Children
Schools
Communities
Total expenditure
Net income/(expenditure) & net movement in
funds		 Unrestricted
funds
2021
£
129,403
-
129,403
370,367
97,050
-
-
467,416
(338,014)
1,311,768
-
973,754		 Restricted
funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
2021
£
129,403
-
129,403
370,367
97,050
-
-
467,416
(338,014)
1,311,768
-
973,754		 Total
funds
2020
£
2,054,282
787,486
2,841,768
1,764,204
656,056
180,099
31,825
2,632,184
209,584
1,102,184
-
1,311,768

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

The accompanying notes form part of these financial statements

18

Lessons for Life Foundation

Balance Sheet Consolidated and Charity

At 31 March 2021

Registered company number 06448222

At 31 March 2021
Registered company number 06448222
Notes
10
11
12
13
Total funds
Unrestricted funds
Restricted funds
Current assets:
Current liabilities:
Net current assets
Net assets
Funds of the charity:
Debtors
Prepayments
Cash at bank and in hand
Creditors (amounts falling due within one year)
Deferred revenue		 Group
2021
£
582,330
15,000
531,298
1,128,628
(17,197)
(9,500)
(26,697)
1,101,931
1,101,931
1,101,931
-
1,101,931		 Group
2020
£
1,153,272
32,671
601,812
1,787,755
(291,664)
(101,500)
(393,164)
1,394,591
1,394,591
1,394,591
-
1,394,591		 Charity
2021
£
568,320
15,000
415,332
998,652
(15,398)
(9,500)
(24,898)
973,754
973,754
973,754
-
973,754		 Charity
2020
£
1,058,695
32,671
506,066
1,597,432
(279,164)
(6,500)
(285,664)
1,311,768
1,311,768
1,311,768
-
1,311,768

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and FRS 102 Section 1A. They were approved and authorised for issue by the Board of Trustees on 23rd December 2021 and signed on their behalf by:

Marcel van den Berg, Treasurer

19

Lessons for Life Foundation Statement of Cash Flows Consolidated and Charity

For the year ended 31 March 2021
Analysis of cash and cash equivalents and net debt
Opening balance
Cash-flows
Closing balance
Net cash used in operating activities
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
Change in cash and cash equivalents in reporting
period
Decrease in prepayments
(Decrease)/Increase in creditors
(Decrease)/Increase in deferred revenue
Decrease/(Increase) in debtors
Cash flows from operating activies:
Net income/(expenditure) for period
(as per SOFA)
Adjustments for:		 Group
2021
£
(292,660)
570,942
17,671
(274,467)
(92,000)
222,146
(70,514)
(70,514)
601,812
531,298
2021
£
601,812
(70,514)
531,298		 Group
2020
£
242,287
(1,098,000)
4,454
215,038
7,594
(870,914)
(628,627)
(628,627)
1,230,439
601,812
2020
£
1,320,439
(628,627)
691,812		 Charity
2021
£
(338,014)
490,375
17,671
(263,766)
3,000
247,280
(90,734)
(90,734)
506,066
415,332
2021
£
506,066
(90,734)
415,332		 Charity
2020
£
209,584
(1,003,170)
4,454
202,538
(87,407)
(883,585)
(674,001)
(674,001)
1,180,067
506,066
2020
£
1,180,067
(674,001)
506,066

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LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

Company Information Lessons for Life Foundation (the “Company”) is a private company incorporated, domiciled and registered in England in the UK. The registered number is 6448222 and the registered address is 33 Creechurch Lane, London, England, EC3A 5EB. a. Basis of preparation The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP including update Bulletin 2) and the requirements of the Companies Act 2006. The Charitable Company and its subsidiary are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP including update Bulletin 2), the Companies Act 2006 and the Charities Act 2011. 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 one pound. These financial statements are prepared on the going concern basis, under the historical cost convention. The principal accounting policies are set out below. Group financial statements The Group comprise Lessons for Life and Lessons for Life Trading Limited. The assets, liabilities and results of the wholly owned subsidiary company Lessons for Life Trading Limited are consolidated into these financial statements on a line by line basis. Summarised details of the subsidiary charity are set out in Note 21. b. Going concern The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have given due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were signed. This assessment has also included a potential loss of income as a consequence of Covid-19. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The charity entered the financial year 2020/21 with reserves of £1,394,591 and at 31 March 2021 had unrestricted reserves of £1,101,931. This is ahead of the target reserves of the charity. In assessing whether Lessons for Life Foundation is a going concern, the Trustees have also considered the reserves of the Street Child charitable group, of which the charity is a wholly owned subsidiary. The trustees have considered the group forecasts and projections and have taken account of pressures on donation and grant income and cash flow for 12 months from the date of approval of the financial statements, the associated assumptions that under-pin it, the pipeline of new income and the steps that could be taken to reduce expenditure should this be necessary and in particular any impact of Covid-19 within these areas.

Whilst the ultimate impact cannot be quantified, the Trustees are satisfied that the group has sufficient resources to continue in operational existence for the foreseeable future. The group is largely sheltered from the expected effects of the pandemic due to its loyal donor base and a significant grant pipeline, although some events have been curtailed as a result of the restriction on travel. Annual budgets have been revised taking this into account with prudent figures for both income and expenditure and the charity holds significant reserves and has liquid assets in the form of cash held in short term deposits.

The Trustees have concluded that with the reserves policy and cash liquidity requirements of the charity together with the commitment of support received from Street Child, the ultimate controlling party, there are no material uncertainties as to the charity’s ability to continue in operational existence for the foreseeable future.

The charity therefore continues to adopt the going concern basis in preparing its financial statements.

c. Income

Income is recognised when the charity has entitlement to the funds, any performance indicators attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

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LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

d. Donated services and facilities

Donated services and facilities are recognised as income when the charity has control over any item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable, and that economic benefit can be measured reliably.

In accordance with the Charities SORP (FRS 102), the general volunteer time of supporters is not recognised, and instead is noted in the trustees' annual report.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity, which is measured as the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market. This amount cannot exceed open market fair value. A corresponding amount is then recognised in expenditure in the period of receipt.

e. Fund accounting

Unrestricted funds are available to spend on activities that further any of the charitable objectives of the charity. Restricted funds are donations which the donor has specified are to be spent on specific activities of the charity. A full breakdown of the restricted funds of the charity can be found in note 14 of the financial statements.

f. Expenditure and irrecoverable VAT

Expenditure is only recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Costs of raising funds comprise the costs of all fundraising activities and an allocation of support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g. Grants to partners

Grant agreements consist of both a committed element and a performance-related element. As a result the committed element (the first payment of every grant) is recognised as expenditure when the grant is signed, and any amount not paid at year end is recognised as a liability on the balance sheet.

The performance related elements (all other payments) are only recognised once the relevant conditions are met by the partner organisation. Any amounts where conditions have not been met at year end but still may be met at a later date are recognised as a contingent liability in note 18 of the financial statements.

h. Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These include finance, personnel, payroll, governance and management costs. These costs have been allocated between costs of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated is set out in note 6.

i. Tangible fixed assets

All tangible fixed assets costing more then £5,000 are capitalised.

Tangible fixed assets are stated at cost less accumulated depreciation, with depreciation provided at rates calculated to write off the costs of asset less any residual value over their useful economic life on a straight line basis.

j. Debtors and prepayments

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k. Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

l. Foreign exchange transactions

Foreign exchange income and expenditure transactions are recognised at the going rate on the date of the transaction occurring.

Any balance sheet amounts outstanding on the reporting date have been retranslated at the going rate as per Bloomberg on 31 March 2021.

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LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

m. Pensions

All employees are entitled to join a defined contribution pension scheme which is funded by contributions from both the employee and employer.

Total employer contributions due in the period were £12,807 (2020: £26,477) with £1,982 (2020: £4,251) outstanding at year end.

n. Legal status

Lessons for Life Foundation is company limited by guarantee and has no share capital, with Company Number 06448222 and Charity Number 1122320.

The liability of each member in the event of winding-up is limited to £10.

Lessons for Life Foundation is the sole member of Lessons for Life Trading Company Limited, a company limited by guarantee and registered with Companies House in England and Wales with Company Number 09943198.

o. Gift Aid

Gift Aid payments from Lessons for Life Trading Company Limited to the charity are accounted for in the charity when they are paid.

p. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. It is in the opinion of the Directors that there are no estimates and assumptions that have a significant risk of causing a material adjustment of the carrying amounts of assets and liabilities within the next financial year.

2. Income from donations

Group
2021
Sporting and challenge events:		 Unrestricted
funds
2021
£		 Restricted
funds
2021
£		 Total
funds
2021
£
Big Ride for Africa (excluding sponsorship - see note 4) 20,339 - 20,339
Furlough Income
Charity
Furlough Income
Other donations
Total donations
Other events
Total sporting and challenge events
Donated goods and services (see note 16)
Gala Dinner
Donated goods and services (see note 16)
Gala Dinner
Gift Aid donation from Trading Subsidiary
Grants from trusts and foundations (see note 3)
Other donations
Total donations
2021
Sporting and challenge events:
Big Ride for Africa (excluding sponsorship - see note 4)
Other events
Total sporting and challenge events		 345
20,684
12,791
7,794
2,147
-
3,165
46,581
Unrestricted
funds
2021
£
20,339
345
20,684
12,791
7,794
2,147
82,821
3,165
129,403		 -
-
-
-
-
-
-
-
Restricted
funds
2021
£
-
-
-
-
-
-
-
-
-		 345
20,684
12,791
7,794
2,147
-
3,165
46,581
Total
funds
2021
£
20,339
345
20,684
12,791
7,794
2,147
82,821
3,165
129,403

23

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

Group
2020
Sporting and challenge events:		 Unrestricted
funds
2020
£		 Restricted
funds
2020
£		 Restated
Total
funds
2020
£
Big Ride for Africa (excluding sponsorship - see note 4) 956,778 956,778
Charity
Corporate Donations
Group and Charity
The Edith Murphy Foundation
Dean and Chapter of Westminster Abbey
Zurich Community Trust
Vale of Belvoir Rotary Club
Total donations
Gift Aid donation from Trading Subsidiary
2020
Sporting and challenge events:
Big Ride for Africa (excluding sponsorship - see note 4)
Other events
Total sporting and challenge events
Charity and Corporate Agreement - Liberty Global Europe Ltd (see note 17)
Donated goods and services (see Note 16)
Gala Dinner pledges
Grants from trusts and foundations (see note 3)
2020
3. Grants from trusts and foundations
Total donations
Grants from trusts and foundations (see note 3)
Other donations
Other events
Total sporting and challenge events
Charity and Corporate Agreement - Liberty Global Europe Ltd (see note 17)
Donated goods and services (see note 16)
Gala Dinner pledges
Total grants from trusts and foundations
Other donations		 43,010
999,788
852,660
50,669
63,608
4,000
16,706
1,987,430
Unrestricted
funds
2020
£
956,778
43,010
999,788
852,660
50,669
63,608
50,119
4,000
16,706
2,037,549
Unrestricted
funds
2020
£
-
4,000
-
-
4,000		 -
-
-
-
16,733
-
16,733
Restricted
funds
2020
£
-
-
-
-
-
-
-
-
16,733
-
16,733
Restricted
funds
2020
£
10,231
-
3,251
3,251
16,733		 43,010
999,788
852,660
50,669
63,608
20,733
16,706
2,004,163
Restated
Total
funds
2020
£
956,778
43,010
999,788
852,660
50,669
63,608
-
50,119
20,733
16,706
2,054,282
Total
funds
2020
£
10,231
4,000
3,251
3,251
20,733

24

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

4. Income from other trading activities

Group
Group
Charity
2020
Total income from other trading activities
Gala Dinner (excluding pledges - see note 3)
Sale of tables
Auction bids
Total Gala Dinner (excluding pledges - see note 3)
Corporate sponsorship
Big Ride for Africa
Corporate sponsorship
2020
Big Ride for Africa
Total corporate sponsorship
Gala Dinner (excluding pledges - see note 3)
Sale of tables
Auction bids
Total Gala Dinner (excluding pledges - see note 3)
Total income from other trading activities
2021
Total income from other trading activities		 Unrestricted
funds
2021
£
177,500
177,500
Unrestricted
funds
2020
£
162,000
162,000
633,600
153,886
787,486
949,486
Unrestricted
funds
2020
633,600
153,886
787,486
787,486		 Restricted
funds
2021
£
-
-
Restricted
funds
2020
£
-
-
-
-
-
-
Restricted
funds
2020
-
-
-
-		 Total
funds
2021
£
177,500
177,500
Total
funds
2020
£
162,000
162,000
633,600
153,886
787,486
949,486
Total
funds
2020
633,600
153,886
787,486
787,486

25

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

5. Total expenditure

Group
2021
Total expenditure
Charity
2021
Total expenditure
Group
2020
Total expenditure
Charity
2020
Total expenditure
Schools
Communities
Children
Total charitable activities
Communities
Total charitable activities
Costs of raising funds
Charitable activities:
Total charitable activities
Costs of raising funds
Charitable activities:
Children
Total charitable activities
Costs of raising funds
Charitable activities:
Children
Schools
Costs of raising funds
Charitable activities:
Children		 Grants to
partner
organisations
2021
£
-
2,330
2,330
2,330
Grants to
partner
organisations
2021
£
-
2,330
2,330
2,330
Grants to
partner
organisations
2020
£
-
396,624
108,881
19,240
524,745
524,745
Grants to
partner
organisations
2020
£
-
396,624
108,881
19,240
524,745
524,745		 Staff
costs
2021
£
103,503
12,859
12,859
116,361
Staff
costs
2021
£
95,702
12,859
12,859
108,560
Staff
costs
2020
£
294,581
73,461
20,166
3,563
97,190
391,771
Staff
costs
2020
£
285,406
73,461
20,166
3,563
97,190
382,596
Direct
Direct
Direct
Direct		 Other
costs
2021
£
236,857
10,271
10,271
247,128
Other
costs
2021
£
203,075
10,271
10,271
213,346
Other
costs
2020
£
1,294,682
60,684
16,659
2,944
80,286
1,374,968
Other
costs
2020
£
1,231,605
60,684
16,659
2,944
80,286
1,311,891
costs
costs
costs
costs		 Staff
Other
costs
costs
2021
2021
£
£
54,621
20,396
54,621
21,284
54,621
21,284
109,241
41,680
Staff
Other
costs
costs
2021
2021
£
£
52,153
19,437
52,153
19,437
52,153
19,437
104,305
38,874
Staff
Other
costs
costs
2020
2020
£
£
170,445
80,212
88,303
39,601
24,241
10,871
4,283
1,921
116,827
52,393
287,272
132,605
Staff
Other
costs
costs
2020
2020
£
£
167,731
79,462
86,252
39,035
23,678
10,716
4,184
1,894
114,114
51,644
281,845
131,106
Support costs
Support costs
Support costs
Support costs		 Total
expenditure
2021
£
415,377
101,364
101,364
516,741
Total
expenditure
2021
£
370,367
97,050
97,050
467,416
Total
expenditure
2020
£
1,839,920
658,673
180,818
31,951
871,442
2,711,362
Total
expenditure
2020
£
1,764,204
656,056
180,099
31,825
867,980
2,632,184

An analysis of costs of raising funds split between restricted and unrestricted funds can be found in note 8. An analysis of charitable activities split between restricted and unrestricted funds can be found in note 9. A breakdown showing the basis for allocation of support costs can be found in note 6. More information on staff costs can be found in note 7.

26

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

6. Support cost allocation

Group
Basis of
2021
allocation
Time spent
Time spent
Time spent
Time spent
Total support costs
Charity
Basis of
2021
allocation
Time spent
Time spent
Time spent
Time spent
Total support costs
Group
Basis of
2020
allocation
Time spent
Time spent
Headcount
Headcount
Headcount
Total support costs
Charity
Basis of
2020
allocation
Time spent
Time spent
Headcount
Headcount
Headcount
Total support costs
Human Resources
Information & Communications Technology
Foreign Exchange Gain
Management & administration
Foreign Exchange Gain
Management & administration
Finance
Human Resources
Information & Communications Technology
Information & Communications Technology
Finance
Information & Communications Technology
Facilities
Human Resources
Facilities
Finance
Human Resources
Management & administration
Finance
Management & administration		 Staff costs
2021
£
7,257
101,984
-
-
109,241
Staff costs
2021
£
7,257
97,048
-
-
-
104,305
Staff costs
2020
£
134,045
153,227
-
-
-
287,272
Staff costs
2020
£
134,045
147,800
-
-
-
281,845		 Other costs
2021
£
3,267
72,522
1,204
1,163
(36,476)
41,680
Other costs
2021
£
580
72,403
1,204
1,163
(36,476)
38,874
Other costs
2020
£
15,935
34,753
1,204
1,313
38,000
91,206
Other costs
2020
£
15,935
34,753
1,204
1,313
38,000
91,206		 Total
2021
£
10,524
174,506
1,204
1,163
(36,476)
150,921
Total
2021
£
7,837
169,452
1,204
1,163
(36,476)
143,179
Total
2020
£
149,980
187,980
1,204
1,313
38,000
378,478
Total
2020
£
149,980
182,553
1,204
1,313
38,000
373,051
Group
Total governance costs
Charity
Total governance costs
Statutory audit
Statutory audit
Staff costs on supporting board
Support costs includes governance costs, which consists of the following expenses:
Staff costs on supporting board		 Total
2021
£
4,714
10,800
15,514
Total
2021
£
4,714
9,000
13,714		 Total
2020
£
29,250
17,100
46,350
Total
2020
£
29,250
15,600
44,850

27

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

7. Staff costs

The average full time equivalents employed by the charity in the year were:

The average full time equivalents employed by the charity in the year were:
Group
Charity
Employers NIC
Employers pension contributions
Other benefits
Gross salaries
Employers NIC
Employers pension contributions
Other benefits
Programmes/charitable activities
Staff costs comprised of:
Fundraising and communications
Management and administration
Gross salaries		 Year ended
31 March
2021
0.5
2.5
1.8
4.8
Total
2021
£
197,706
19,806
12,807
9,453
239,772
Total
2021
£
184,969
19,806
12,807
9,453
227,035		 Year ended
31 March
2020
2.0
4.1
2.8
8.9
Total
2020
£
592,500
40,097
26,477
19,969
679,043
Total
2020
£
577,899
40,097
26,477
19,969
664,442

Included in the costs above are termination payments totalling £4,353 (2020: £nil)

The number of employees who received total employee benefits (excluding employer pension contributions) of over £60,000 calculated over a 12 month period were:

£100,000 - £109,999

2020 2019
- 1

Total employee benefits (excluding employer pension contributions) paid to key management personnel were £98,159 (2020: £300,979)

Included within donated goods and services are staff costs incurred by Liberty Global (see note 16) on behalf of the charity with a value of £2,367 (2020: £2,367).

28

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

8. Costs of raising funds

Group
2021
Total direct other costs
Total costs of raising funds
Charity
2021
Total direct other costs
Total costs of raising funds
Group
2020
Total direct other costs
Total costs of raising funds
Charity
2020
Total direct other costs
Total costs of raising funds
Gala Dinner
Other
Other
Big Ride for Africa
Direct staff costs
Direct other costs
Big Ride for Africa
Direct staff costs
Direct other costs
Big Ride for Africa
Gala Dinner
Other
Support costs
Direct staff costs
Direct other costs
Support costs
Direct staff costs
Direct other costs
Big Ride for Africa
Gala Dinner
Support costs
Gala Dinner
Other
Support costs		 Unrestricted
funds
2021
£
103,503
204,262
1,496
31,099
236,857
75,017
415,377
Unrestricted
funds
2021
£
95,702
170,481
1,496
31,099
203,075
71,590
370,367
Unrestricted
funds
2020
£
294,581
853,518
289,077
152,086
1,294,682
250,657
1,839,920
Unrestricted
funds
2020
£
285,406
790,441
289,077
152,086
1,231,605
247,193
1,764,204		 Restricted
funds
2021
£
-
-
-
-
-
-
Restricted
funds
2021
£
-
-
-
-
-
-
-
Restricted
funds
2020
£
-
-
-
-
-
-
-
Restricted
funds
2020
£
-
-
-
-
-
-
-		 Total
funds
2021
£
103,503
204,262
1,496
31,099
236,857
75,017
415,377
Total
funds
2021
£
95,702
170,481
1,496
31,099
203,075
71,590
370,367
Total
funds
2020
£
294,581
853,518
289,077
152,086
1,294,682
250,657
1,839,920
Total
funds
2020
£
285,406
790,441
289,077
152,086
1,231,605
247,193
1,764,204

29

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

9. Charitable activities

Group
2021
Total grants to partner organisations
Total charitable activities
Charity
2021
Total grants to partner organisations
Total direct costs
Total indirect costs
Total charitable activities
Grants to partner organisations
Children
Direct costs
Children
Indirect costs
Children
Indirect costs
Children
Total direct costs
Grants to partner organisations
Direct costs
Children
Total indirect costs
Children		 Unrestricted
funds
2021
£
2,330
2,330
23,130
23,130
75,904
75,904
101,365
Unrestricted
funds
2021
£
2,330
2,330
23,130
23,130
71,590
71,590
97,050		 Restricted
funds
2021
£
-
-
-
-
-
Restricted
funds
2021
£
-
-
-
-
-
-		 Total
funds
2021
£
2,330
2,330
23,130
23,130
75,904
75,904
101,364
Total
funds
2021
£
2,330
2,330
23,130
23,130
71,590
71,590
97,050

30

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

Group
2020
Total grants to partner organisations
Total charitable activities
Charity
2020
Total grants to partner organisations
Total direct costs
Total indirect costs
Total charitable activities
Grants to organisations were sent to the following:
Group and Charity
Educate!
Grants to partner organisations
Grants to partner organisations
Children
Communities
Children
Schools
Red Earth Education
Sentebale
Uyisenga N'Manzi (UNM)
Communities
Direct costs
Total indirect costs
Alpha Childcare and Community Development Organisation (ACCOD)
Catholic Diocese of Kitui (CDOK)
Children
Schools
Indirect costs
Schools
Communities
Direct costs
Children
Schools
Children
Indirect costs
Children
Schools
Communities
Total direct costs
Child Aid Uganda (CHAU)
The Kusasa Project
Communities
Schools
Communities		 Unrestricted
funds
2020
£
392,396
103,954
19,240
515,590
130,645
32,747
6,507
169,899
127,904
35,112
6,204
169,221
854,709
Unrestricted
funds
2020
£
392,396
103,954
19,240
515,590
128,587
29,648
6,507
164,743
125,287
34,394
6,078
165,758
846,091		 Restricted
funds
2020
£
4,228
4,927
-
9,155
3,500
4,078
-
7,578
-
-
-
-
16,733
Restricted
funds
2020
£
4,228
4,927
-
9,155
5,557
7,177
-
12,734
-
-
-
-
21,889
Total
2021
£
2,699
(369)
-
-
-
-
-
-
2,330		 Total
funds
2020
£
396,624
108,881
19,240
524,745
134,145
36,825
6,507
177,476
127,904
35,112
6,204
169,221
871,442
Total
funds
2020
£
396,624
108,881
19,240
524,745
134,145
36,825
6,507
177,476
125,287
34,394
6,078
165,758
867,980
Total
2020
£
10,194
208,569
98,809
88,462
26,838
31,466
20,556
39,849
524,744

31

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

10. Debtors

Group
Intercompany Debtors - Street Child
Intercompany Debtors - Build Africa
Other debtors
Charity
Intercompany Debtors - Street Child
Intercompany Debtors - Build Africa
Intercompany Debtors - Lessons for Life Foundation Trading Company Limited
Other debtors
Group and Charity
Group
Intercompany Creditors - Street Child
Charity
Intercompany Creditors - Street Child
Group and Charity
Balance at beginning of year
Amount released to income in year
Amount deferred in the year
Balance at the end of the year
Accruals
HMRC payable
13. Deferred Income
Prepaid suppliers
12. Creditors - amounts falling due within one year
HMRC payable
Other payroll liabilities
Other payroll liabilities
Trade debtors
11. Prepayments
Trade debtors
Trade creditors
Accruals
Trade creditors		 Total
2021
£
508,018
52,000
22,024
288
582,330
Total
2021
£
508,018
22,000
22,024
16,223
55
568,320
Total
2021
£
15,000
15,000
Total
2021
£
-
10,326
4,144
2,668
58
17,197
2021
£
-
8,526
4,144
2,668
59
15,398
Total
2021
£
6,500
-
3,000
9,500		 Total
2020
£
-
1,117,375
22,564
13,332
1,153,272
Total
2020
£
-
1,006,575
22,564
16,223
13,332
1,058,695
Total
2020
£
32,671
32,671
Total
2020
£
211,830
31,482
26,051
18,050
4,251
291,664
2020
£
211,830
29,982
15,051
18,050
4,251
279,164
Total
2020
£
93,907
(93,907)
6,500
6,500

32

LESSONS FOR LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

14. Analysis of charity funds

2021
Group
Charity
Group and Charity
Hygiene and sanitation improvement to St Martin
Primary School in Lyantonde, Uganda
2020
Unrestricted funds
Total funds
Unrestricted funds
Restricted funds
Children
Total funds
Total restricted funds
Total funds
Unrestricted funds
Education Sponsorship Programme in Rwanda
Schools
Hygiene and sanitation improvement to Lyakajula
Primary School in Lyantonde, Uganda		 Balance
brought
forward
£
1,394,591
1,394,591
Balance
brought
forward
£
1,311,768
1,311,768
Balance
brought
forward
£
1,152,304
-
-
-
-
1,152,304		 Income
£
224,081
224,081
Income
£
129,403
129,403
Income
for the
period
£
2,936,916
10,231
3,251
3,251
16,733
2,953,649		 Expenditure
£
(516,741)
(516,741)
Expenditure
£
(467,416)
(467,416)
Expenditure
in the
period
£
(2,694,630)
(10,231)
(3,251)
(3,251)
(16,733)
(2,711,363)		 Transfers
between
funds
£
-
Transfers
between
funds
£
-
Transfers
between
funds
£
-
-
-
-
-
-
-		 Balance
carried
forward
£
1,101,931
1,101,931
Balance
carried
forward
£
973,754
973,754
Balance
carried
forward
£
1,394,591
-
-
-
-
-
-
1,394,591

Projects supporting Children: Education Sponsorship Programme in Rwanda. Funded by Edith Murphy Foundation, to grant vulnerable primary and secondary school children direct access to education for one year, through the provision of school uniforms, hygiene and stationery packs, the payment of school fees and exam fees.

Projects Supporting Schools : Hygiene and sanitation improvement to Lyakajula Primary School and St Martin Primary Schools in Lyantonde, Uganda: the purpose of the projects was to provide provide key hygiene and infrastructure improvements at the schools by the construction of a five stance latrine at each school.

33

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

15. Analysis of net assets

2021
Group
Total net assets
Charity
Total net assets
2020
Current assets
Current liabilities
Current assets
Current liabilities
Current assets
Current liabilities
Charity
Total net assets
Current liabilities
Group
Total net assets
Current assets		 Unrestricted
funds
£
1,128,628
(26,697)
1,101,932
Unrestricted
funds
£
998,652
(24,898)
973,754
Unrestricted
funds
£
1,787,755
(393,164)		 Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-		 Total
funds
£
1,128,628
(26,697)
1,101,932
Total
funds
£
998,652
(24,898)
973,754
Restated
Total
funds
£
1,787,755
(393,164)
1,394,591 - 1,394,591
Unrestricted
funds
£
1,597,432
(285,664)
1,311,768		 Restricted
funds
£
-
-
-		 Total
funds
£
1,597,432
(285,664)
1,311,768

16. Donated goods and services

a. Liberty Global

As part of the Charity and Corporate Agreement with Liberty Global (see note 17) the charity receives up to €200,000 per annum of donated goods and services. This includes, amongst other items, HR support, IT equipment and support, and use of premises including all facility management costs. In 2017 Liberty Global agreed that the cost of premises would be excluded from the annual cap.

The donated goods and services recognised in 2021 and 2020 are as follows:

Total Liberty Global donated goods and services
Total Liberty Global donated goods and services
This has been allocated across the following expenditure headings in the Statement of Financial Activities:
Schools
Total charitable activities
Staff costs
Premises and facility management
Other costs
Charitable activities:
Children
Costs of raising funds
Communities		 Total
2021
£
2,367
-
2,895
5,262
Total
2021
£
3,100
2,162
-
-
2,162
5,262		 Total
2020
£
2,367
38,000
10,301
50,668
Total
2020
£
26,665
18,142
4,980
880
24,002
50,668

34

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

17. Related party transactions

a. Liberty Global Europe Ltd

The charity is supported by the resources of Liberty Global Europe Ltd and its affiliated companies. The charity is legally separate from Liberty Global and its affiliates and they have no control or significant influence over the charity's operating activities or grant making policies.

On 18 May 2017 the charity signed a second Charity and Corporate Agreement which entitles the charity to €1,000,000 fixed grant per annum for the three years to 31 December 2020 and up to €200,000 donated goods and services each year, excluding office space which is provided in addition to this amount.

Following the acquistion of the Charity by Street Child, Liberty Global have provided a donation to Street Child in January 2021 and no donation is payable to Lessons for Life

In addition, in late 2015, the charity signed a £500,000 five year loan facility with Liberty Global Europe with a minimal interest rate attached to enable the charity to minimise its cash reserves whilst managing operating cash flows in the most efficient way possible. At 31 March 2021 and 31 March 2020 there were no funds outstanding and the facility was not used in either year.

b. Lessons for Life Foundation (US) Inc

In the prior year the charity received a grant of £9,801 from Lessons for Life Foundation (US) Inc. This is a legally separate 501(c)3 private foundation in the US, which is not controlled by the UK charity and has no shared board members.

c. Street Child Limited

On the 1st April 2019 Lessons for Life Foundation was acquired by Street Child. On this date Street Child became the sole Trustee of Lessons for Life Foundation.

During the year the company paid for fundraising and programmes services from Street Child amounting to £250,800.

Street Child is the parent of Lessons for Life Foundation. At the year end, Lessons for Life Foundation was owed £503,018 by Street Child. (2020: £211,830 owed to Street Child)

18. Subsidiary undertakings

In the year, Lessons for Life Foundation Trading Company Limited paid the Charity £14,512 (2020: £14,602) for use of the Lessons for Life

logo and for fundraising and accounting services provided by the Charity to Lessons for Life Trading Company Limited which does not employ of its own staff.

A summary of the main transactions of Lessons for Life Foundation Trading Company Limited is below:

Turnover
Cost of sales
Administrative expenses
Gift Aid owing to Lessons for Life Foundation
Result for the Financial Year		 2021
£
177,500
(32,894)
(16,431)
(128,175)
-		 2020
£
162,000
(60,951)
(18,228)
(82,821)
-

19. Trustee remuneration

No trustee received any remuneration for their charitable role in the year (2020: £Nil).

No trustee received any received any reimbursement of expenses for their charitable role in the year (2020: £nil).

20. Taxation

No tax charges have arisen in the charity. Under the gift aid arrangements the subsidiary company, Lessons for Life Foundation Trading Company Limited, will remit an amount equal to its taxable profits to Lessons for Life Foundation Limited, and hence there is no corporation tax charge in these accounts.

22. Contingent liabilities

At the balance sheet date the trustees had authorised certain grants that were due for payment after the balance sheet date, which were subject to a number of conditions being fulfilled by the partner organisations.

These future payments meet the conditions of a performance related grant under the Charity SORP (FRS 102) and at the balance sheet date the conditions had not been fulfilled by the partner organisations.

Should the relevant conditions not be met by the partner organisations then the commitment would be cancelled.

As a result, as the commitments are possible but uncertain, and the outstanding commitments are recognised as a contingent liability.

The total amount outstanding at the balance sheet date, using the relevant exchange rates on that date, was £nil (2020: £2,600).

35

LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 NOTES TO THE FINANCIAL STATEMENTS

23. Capital Commitments

There were no capital commitments not provided for in the financial statements (2020: none)

24. Ultimate Parent Company

The company is a subsidiary of Street Child, a charitable company registered in England and Wales (Company No. 06749574, Charity No. 1128536).

Copies of group financial statements are available from the registered office of the parent at:

33 Creechurch Lane, London, England, EC3A 5EB

36