## **LESSONS FOR LIFE FOUNDATION**
## **REPORT AND FINANCIAL STATEMENTS**
**for the year ended 31 March 2023**
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 2023**
|**CONTENTS**|**Page**|
|---|---|
|Company information|3|
|Trustees’ report|4|
|Auditors’ report|12|
|Consolidated Statement of financial activities|16|
|Statement of financial activities|17|
|Balance sheet|18|
|Statement of Cash Flows|19|
|Notes to the Financial Statements|20|
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**LESSONS FOR LIFE FOUNDATION**
**TRUSTEE’S REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**COMPANY INFORMATION**|**COMPANY INFORMATION**|
|---|---|
|**Trustees**|Street Child|
||Andrea Salvato|
|**Charity number**|1122320|
|**Company number**|06448222|
|**Registered office &**|33 Creechurch Lane|
|**principal address**|London EC3A 5EB|
|**Auditors**|Moore Kingston Smith LLP|
||Chartered Accountants|
||9 Appold Street|
||London|
||EC2A 2AP|
|**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 2023**
## **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.
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.
On 1st April 2022 the 100% owned subsidiary Lessons for Life Trading Company Limited ownership was transferred to the ultimate parent company, Street Child and ceased to be a subsidiary of Lessons for Life Foundation.
The reason for this transfer was to reflect that the activities supported by Lessons for Life Trading Company are now run by Street Child directly without involvement of Lessons for Life Foundation. At the same time, Lessons for Life Trading Company Limited changed its name to Street Child Trading Limited.
## **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.
In both the current year and the previous financial year, Lessons for Life has been able to release some of its unrestricted reserves to make a substantial grant to fund charitable activities. This grant was made to Street Child.
## **Fundraising**
Lessons for Life no longer actively fundraises under its own name but promotes the activities of its parent company Street Child in its fundraising activities. Thank you to everyone who allows us to continue our work in Africa.
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**LESSONS FOR LIFE FOUNDATION**
**TRUSTEE’S REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
During the year our three flagship fundraising events were able to go ahead – and were organised through Street Child. We were delighted to see the following events being bigger and better than ever: Big Ride, Gala Dinner and Football Tournament. These events have an amazing ability to bring together so many of our supporters, share updates about the work of the charity and raise important funds.
## **Liberty Global and our Corporate Champions**
Founding corporate partner Liberty Global continues to provide enormous support to Street Child and donated its generous core grant to Street Child directly this year. As well as its core grant, Liberty Global supports Street Child through attending events and a number of Liberty Global executives on the Street Child board continue to provide invaluable business advice to the charity and its leadership.
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 2023**
## **Financials: Income**
In the year to 31 March 2023 Lessons for Life Foundation had income of £160,690 (2022: £145,926). The majority of income a Gift Aid donation from the former subsidiary company in relation to sponsorship of the Big Ride event in the prior year, amounting to £160,461 (2022: £128,175).
## **Financials: Expenditure**
## **Costs of raising funds**
Our cost of raising funds fell to £2,222 from £114,205. This is because much fundraising activity moved into the parent company, Street Child, including cost associated with organising the Big Ride.
## **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. One grant was made in 2022/23 following consideration and approval by the Trustees, to Street Child for £250,000 (2022: £700,000.)
## **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 £248,070. Given the level of income and expenditure of Lessons for Life Foundation, this is ahead of the target reserves of Lessons for Life Foundation. The Trustees therefore decided to reduce the reserves and made a grant to Street Child. Hence closing reserves as at 31[st] March 2023 were £154,640. All reserves 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.
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 £0.75m to £1.5m, with a mid-range target of £1.1m. Street Child Group unrestricted reserves at 31 March 2023 of £1.1m (2022: £1.2m) were in line with the mid-range target.
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**LESSONS FOR LIFE FOUNDATION**
**TRUSTEE’S REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
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:
- Delegation: there is a clear organisational Scheme of Delegation with lines of authority and responsibility for control
- A clear, comprehensive documented suite of financial procedures and accessible to all staff. These are updated and revised from time to time as required.
- Financial reporting: the Board approves and monitors the annual budget. Each quarter an update is provided to the Finance Committee and the Board with an update of actual results compared to budget, and the latest forecast for the year along with explanations of significant variations. The Finance committee reviews the reports in detail, minutes from this Committee’s meeting are presented to the Board.
- Programme reporting: regular updates are provided to the Chief Executive from the Country leads. These are reviewed to ensure that the programmes are progressing as planned and to identify any issues which are followed up as necessary. Written quarterly updates are provided to the Board along with any issues, risks or opportunities.
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:
- Unrestricted Income being insufficient to support institutional restricted funding or pursuing opportunities for investment. This is mitigated by careful monitoring of income compared to budget and forecast, and the pipeline income and by ensuring that costs are carefully managed.
- - Unsatisfactory Programmes impact, or donors consider project impact to be unsatisfactory. We continue to invest in quality in-country programme and finance teams to ensure that we can meet donor requirements.
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**LESSONS FOR LIFE FOUNDATION**
**TRUSTEE’S REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **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.
On 1st April 2022 Lessons for Life Foundation ceased to be the parent of Lessons for Life Foundation Trading Company Limited and the Lessons for Life Foundation Trading Company Limited ceased to be a subsidiary of Lessons for Life Foundation. At the same time, Street Child was appointed as member of Lessons for Life Foundation Trading Company Limited and Lessons for Life Foundation Trading Company Limited became a subsidiary company of Street Child. Lessons for Life Foundation Trading Company Limited also changed its name to Street Child Trading Limited.
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.
## **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.
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**LESSONS FOR LIFE FOUNDATION**
**TRUSTEE’S REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
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 2023**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity’s SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- assess the group’s and the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation;
The Trustees are responsible for keeping adequate accounting records that 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 2023**
## **Information provided to the auditors**
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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 continued to be 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 30[th] January 2024 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 ’charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Activities, the Charitable Company Balance Sheet, the 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:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **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 information. Our opinion on the financial statements does not cover the other information and, except
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**LESSONS FOR LIFE FOUNDATION**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION**
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:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- trustees’ annual report have been prepared in accordance with applicable legal requirements.
## **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:
- the charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable company’s 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; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.
## **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 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.
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.
- 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 purposes of expressing an opinion on the effectiveness of the group and parent charitable company’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 group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
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**LESSONS FOR LIFE FOUNDATION**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION**
- 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 group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
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.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
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.
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:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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**LESSONS FOR LIFE FOUNDATION**
**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF LESSONS FOR LIFE FOUNDATION**
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **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
9 Appold Street London EC2A 2AP
Date: 30[th] January 2024
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## Lessons for Life Foundation Statement of Financial Activities
For year ended 31 March 2023
|_Notes_
_2_
_3 & 6_
_3 & 7_
_10_
Movement between funds
_Raising funds_
Income from:
Donations
Total income
Expenditure on:
Reconciliation of funds
Total funds brought forward
**Total funds carried forward**
_Charitable activities_
Total expenditure
Net expenditure and net movement in funds|Unrestricted
funds
2023
£
160,690
160,690
2,222
251,898
254,120
(93,430)
248,070
-
**154,640**|Total
funds
2023
£
160,690
160,690
2,222
251,898
254,120
(93,430)
248,070
-
**154,640**|_Total_
_funds_
_2022_
_£_
_145,926_|
|---|---|---|---|
||||_145,926_|
||||_114,205_
_757,405_|
||||_871,610_|
||||_(725,684)_
_973,754_
_-_|
||||**_248,070_**|
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
## Balance Sheet
At 31 March 2023
|_Notes_
_8_
_9_
_10_
**Total funds**
Unrestricted funds
Restricted funds
Current assets:
Current liabilities:
Net current assets
**Net assets**
Funds:
Debtors
Cash at bank and in hand
Creditors (amounts falling due within one year)|2023
£
21,421
141,458
162,879
(8,239)
(8,239)
154,640
**154,640**
154,640
-
**154,640**|_2022_
_£_
_180,451_
_78,384_|
|---|---|---|
|||_258,834_
_(10,764)_|
|||_(10,764)_|
|||_248,070_|
|||**_248,070_**|
|||_248,070_
_-_|
|||**_248,070_**|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. They were approved and authorised for issue by the Board of Trustees on 30th January 2024 and signed on their behalf by:
Marcel van den Berg, Treasurer
Registered company number 06448222
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## Lessons for Life Foundation Statement of Cash Flows
For the year ended 31 March 2023
|**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:_|2023
£
(93,430)
159,030
-
(2,525)
-
156,505
63,075
**63,075**
78,384
**141,458**
2023
£
78,384
63,075
**141,459**|2022
£
(725,684)
387,869
15,000
(4,634)
(9,500)|
|---|---|---|
|||388,736|
|||(336,948)|
|||**(336,948)**
415,332|
|||**78,384**|
|||2022
£
415,332
(336,948)|
|||**78,384**|
19
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 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.
On 1st April 2022 the 100% owned subsidiary Lessons for Life Trading Company Limited ownership was transferred to the ultimate parent company Street Child and ceased to be a subsidiary of Lessons for Life Foundation.
In the prior year the Group consisted of Lessons for Life Foundation and Lessons for Life Foundation Trading Company Limited.
## 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 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 2022/23 with reserves of £248,070, all of which were unrestricted, and at and at 31 March 2023 had unrestricted reserves of £154,640.
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.
The Trustees are satisfied that the group has sufficient resources to continue in operational existence for the foreseeable future. The group has a loyal donor base and a significant grant pipeline. Annual budgets include 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.
## 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. The charity held no restricted funds in either 2023 or 2022.
20
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO 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.
- Charitable activities comprise all grants and costs reimbursed to partners in Africa, the direct costs of managing those programmes and an allocation of support costs. These are further split between the three main areas of our programmatic work.
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 16 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 4.
## 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 InfoEuro on 31 March 2023.
## 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 £0 (2022: £10,649) with £0 (2022: £3,494) 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.
## 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.
21
## **LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS**
## **2. Income from donations**
|Corporate Donations
Grants to
partner
organisations
2023
2023
£
-
250,000
**Total expenditure**
**250,000**
Grants to
partner
organisations
2022
2022
£
-
700,000
**Total expenditure**
**700,000**
**3. Total expenditure**
Charitable activities
Other donations
**Total donations**
Gift Aid donation from Trading Subsidiary
2023
Total sporting and challenge events
Donated goods and services (see note 11)
Costs of raising funds
**Total donations**
Gift Aid donation from Trading Subsidiary
2022
Sporting and challenge events:
Other donations
Five aside Football Tournament
Costs of raising funds
Charitable activities|Staff
costs
2023
£
-
-
**-**
Staff
costs
2022
£
42,614
-
**42,614**
Direct
Direct|Other
costs
2023
£
324
-
**324**
Other
costs
2022
£
14,187
-
**14,187**
costs
costs|Unrestricted
Restricted
funds
funds
2023
2023
£
£
160,461
-
229
-
**160,690**
**-**
Unrestricted
Restricted
funds
funds
2022
2022
£
£
7,500
-
7,500
-
4,238
-
-
-
128,175
-
6,013
-
**145,926**
**-**
Staff
Other
costs
costs
2023
2023
£
£
-
1,898
-
1,898
**-**
**3,797**
Staff
Other
costs
costs
2022
2022
£
£
49,955
7,449
49,955
7,449
**99,910**
**14,898**
Support costs
Support costs|**Total**
**funds**
2023
**£**
**160,461**
**229**|
|---|---|---|---|---|
|||||**160,690**|
|||||**Total**
**funds**
**2022**
**£**
**7,500**|
|||||**7,500**
**4,238**
**-**
**128,175**
**6,013**|
|||||**145,926**|
|||||**Total**
**expenditure**
**2023**
**£**
**2,222**
**251,898**|
|||||**254,120**|
|||||**Total**
**expenditure**
**2022**
**£**
**114,205**
**757,405**|
|||||**871,610**|
An analysis of costs of raising funds split between restricted and unrestricted funds can be found in note 6. An analysis of charitable activities split between restricted and unrestricted funds can be found in note 7. A breakdown showing the basis for allocation of support costs can be found in note 4. More information on staff costs can be found in note 5.
22
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS**
## **4. Support cost allocation**
|Basis of
2023
allocation
Time spent
Time spent
**Total support costs**
Basis of
2022
allocation
Time spent
Time spent
Headcount
Headcount
**Total support costs**
**Total governance costs**
Statutory audit
Finance
Human Resources
Management & administration
Management & administration
Finance
Information & Communications Technology
Support costs includes governance costs, which consists of the following expenses:
Staff costs on supporting board|Staff costs
2023
£
-
-
**-**
Staff costs
2022
£
-
99,910
-
-
**99,910**|Other costs
2023
£
2,220
1,577
**3,797**
Other costs
2022
£
5,975
6,558
1,203
1,162
**14,898**
Total
2023
£
-
2,220
**2,220**|**Total**
**2023**
**£**
**2,220**
**1,577**|
|---|---|---|---|
||||**3,797**|
||||**Total**
**2022**
**£**
**5,975**
**106,468**
**1,203**
**1,162**|
||||**114,808**|
||||Total
2022
£
6,734
4,560|
||||**11,294**|
## **5. 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:|||
|---|---|---|
||Year ended|Year ended|
||31 March|31 March|
||2023|2022|
|Programmes/charitable activities|-|-|
|Fundraising and communications|1.0|1.0|
|Management and administration|1.8|1.8|
The charity employed three staff, one of them part time. Their employment costs are recharged in full to the parent company, Street Child.
## Staff costs comprised of:
|Employers NIC
Employers pension contributions
Other benefits
Gross salaries|Total
2023
£
-
-
-
-
**-**|Total
2022
£
132,894
12,747
10,649
4,058|
|---|---|---|
|||**160,348**|
No employees received total employee benefits (excluding employer pension contributions) of over £60,000
Total employee benefits (excluding employer pension contributions) paid to key management personnel were £0 (2022: £67,335).
23
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS**
## **6. Costs of raising funds**
|2023
**Total costs of raising funds**
2022
Total direct other costs
**Total costs of raising funds**
2023
**Total charitable activities**
2022
**Total charitable activities**
Grants to organisations were sent to the following:
Street Child
Intercompany Debtors - Street Child
Intercompany Debtors - Build Africa
Intercompany Debtors - Lessons for Life Foundation Trading Company Limited
Other debtors
Other
**8. Debtors**
Support costs
**7. Charitable activities**
Indirect costs
Direct staff costs
Direct other costs
Big Ride
Gala Dinner
Support costs
Indirect Costs
Grants to partner organisations
Grants to partner organisations|Unrestricted
funds
2023
£
1,898
**1,898**
Unrestricted
funds
2022
£
42,614
586
4,260
9,341
14,187
57,405
**114,205**
Unrestricted
funds
2023
£
250,000
1,898
**251,898**
Unrestricted
funds
2022
£
700,000
62,837
**762,837**|Restricted
funds
2023
£
-
**-**
Restricted
funds
2022
£
-
-
-
-
-
-
**-**
Restricted
funds
2023
£
-
-
**-**
Restricted
funds
2022
£
**-**
Total
2023
£
250,000
**250,000**
Total
2023
£
21,421
-
-
-
**21,421**|**Total**
**funds**
**2023**
**£**
**1,898**|
|---|---|---|---|
||||**1,898**|
||||**Total**
**funds**
**2022**
**£**
**42,614**
**586**
**4,260**
**9,341**|
||||**14,187**
**57,405**|
||||**114,205**|
||||**Total**
**funds**
**2023**
**£**
**250,000**
**1,898**|
||||**251,898**|
||||**Total**
**funds**
**2022**
**£**
**700,000**
**62,837**|
||||**762,837**|
||||Total
2022
£
700,000|
||||**700,000**|
||||Total
2022
£
162,809
67
17,545
30|
||||**180,451**|
24
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS**
## **9. Creditors - amounts falling due within one year**
|**Charity**
Other payroll liabilities
**2023**
**2022**
Unrestricted funds
**Total funds**
Unrestricted funds
Accruals
Trade creditors
HMRC payable
**Total funds**
**10. Analysis of charity funds**|Balance
brought
forward
£
248,070
**248,070**
Balance
brought
forward
£
973,754
**973,754**|Income
£
160,690
**160,690**
Income
for the
period
£
145,926
**145,926**|Expenditure
£
(254,120)
**(254,120)**
Expenditure
in the
period
£
(871,610)
**(871,610)**|2023
£
3,866
2,220
1,824
329
**8,239**
Transfers
between
funds
£
**-**
Transfers
between
funds
£
**-**|2022
£
3,576
3,187
-
4,001|
|---|---|---|---|---|---|
||||||**10,764**|
||||||**Balance**
**carried**
**forward**
**£**
**154,640**|
||||||**154,640**|
||||||**Balance**
**carried**
**forward**
**£**
**248,070**|
||||||**248,070**|
## **11. Donated goods and services**
## a. Liberty Global
As part of the Charity and Corporate Agreement with Liberty Global (see note 12) 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 2023 and 2022 are as follows:
|**Total Liberty Global donated goods and services**
**Total Liberty Global donated goods and services**
Staff costs
Other costs
Charitable activities
This has been allocated across the following expenditure headings in the Statement of Financial Activities:
Costs of raising funds|Total
2023
£
-
-
**-**
Total
2023
£
-
-
**-**|Total
2022
£
1,399
2,838|
|---|---|---|
|||**4,237**|
|||Total
2022
£
2,614
1,623|
|||**4,237**|
25
**LESSONS FOR LIFE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS**
## **12. 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.
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 2023 and 31 March 2022 there were no funds outstanding and the facility was not used in either year.
## b. Street Child Limited
During the year the company paid for fundraising and programmes services from Street Child amounting to £nil (2022:nil). The company gave a grant of £250,000 (2022: £700,000) to Street Child, shown in Grants to Partners.
Street Child is the parent of Lessons for Life Foundation. At the year end, Lessons for Life Foundation was owed £21,412 (2022: £162,809) by Street Child.
## **13. Subsidiary undertakings**
On 1st April 2023 the trading company ceased to be a subsidiary of Lessons for Life Foundation.
In the prior year, the company paid the Charity £15,745 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 its own staff.
A summary of the main transactions of Lessons for Life Foundation Trading Company Limited is below for the year when it was a subsidiary
|Turnover
Cost of sales
Administrative expenses
Gift Aid owing to Lessons for Life Foundation
Result for the Financial Year|2023
£
-|2022
£
203,000
(24,757)
(17,755)
(160,488)|
|---|---|---|
|||**-**|
## **14. Trustee remuneration**
No trustee received any remuneration for their charitable role in the year (2022: £nil).
No trustee received any received any reimbursement of expenses for their charitable role in the year (2022: £nil).
## **15. Taxation**
The company is a registered charity and is exempt from corporation tax under the provisions of Section 466-493 of the Corporation Taxes Act 2010.
## **16. Contingent liabilities**
There are no contingent liabilities.
## **17. Capital Commitments**
There were no capital commitments not provided for in the financial statements (2022: none)
## **18. 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
26