Reglstèrèd number.. 06792434 Charfty numb¢r: 1136839 LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 LUB80CK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8A8
LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Llmlted by Guarantee) CONTENTS Page Reference and Administrative Details of the Charitable company. its Trustees and Advisers Trustees, Report Independènt Audltors, Report on the Flnancial Ststements 7-10 Statemanl of Flnan¢l•l A¢tiVFti¢s 11 Balance Sheet 12 Notes to th• Flnancial Stst¢ments 13-22
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Trustee$ Madh8vi Vadera Rupin Vadera Darpan Patel Pia Mandus Company registered number 06792434 Charity reglstsr•d number 1136839 R•glstor•d office 76 Park Street London W1K2JY Company secretary Ruxandra Sandu Chlef executlve offlcer Madhavi Vadera (to 1 JU 20211 Rupin Vadera (from 1 July 20211 Independent audltors Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 Sl Paul's Churchyard London EC4M 8AB Page 1
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Llmiled by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees (who are also directors of the company for the purposes of the Comp8nies Acll present their annual report together with the Tinancial statements of Lifelines International Fund for Education Ltd lor 'lhe Charitable company'l for the year ended 31 December 2021. The Trustees confimi that the Annual Report, which includes the Directors report, and financial 5talement5 of the Charrtable company comply wth the current $lalulory requirements, the requirernenls of the Charitable companys goveming document and the provisions of the Statement of Recommended Practice ISORPI, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Irelantl IFRS 1021 leffects've 1 January 20191. Since the Chalilable company qualifies as small under section 383. the strategic report required of medium and large companies under The Gompanies Act 20C6 Islralegic Report and Directorfs Report) Regulations 2013 1$ not required. Refer8nce and administrative details Lifelines Intem81ional Fund for Education Ltd is registered with the Chèrty Commission of England and Wales, under registration number 1136839, and incofporated under the company number is 06792434. The registered office address is 76 Park Stet, London. W1 K 2JY. The CEO of Lifelines International Fund for Education Ltd Was Madhavi Vadera until 1 July 2021 and Rupin Vadera from this date. Trusteos The Trustees who served the Charitable company during the year and since the period end were as follows.. Madham Vadera Rupin Vadera Darpan Patel Pia Mandus Structur•. govemance and management The Charitable Company is a private company limited by guarantee governed by rts Memorandum and Articles of Association. In event of winding up, while a member or within e1ve months of ceasing t¢ be a member, the memberfs liability Is limited to £10. The company was incorporated on 15 January 2009 and subsequently registered as a charity on 13 July 2010. Lifelines InternatK)nal Fund for Education Ltd is managed by the Board of Trustees who meet at least three tsmes each year and if the need arose lo appoint a new trustee the remaining truslees would identrfy and 8ppoinl an appropriate person. New Trustees are briefed on their legal obligations under Charity and company law. the content of the Memorandum and Articles of Association, the committee and decision-making processes. the business plan and recent financial perfomiance of the Charitable company. The Board continuously reviews rt5 competencies and 15 conscious of the need to maintain a balance of skills. Periodically addth'onal members are Inwted to join the Board. effectNely becoming additional Trustees 8nd this involves a careful vetting process by the Board to ensure any new member is aware of hislher iesponsibilrties towards the charity. The Board is currently actively engaged in recruiting a further tsvo Trustees to the Board. Fund-Raising Information The Charitable Company does not cary out signrficant fundraising acb'wties. No public donations were received in the year and no public fund-raising undertaken. The Charrty has established philanthropic relationships wlh a charrtable foundation INelumbo Sl(ftungl which has committed lo an annual funding budget of at least £200,000 per annum, subject lo the presentation of robust. researched and vetted charitable projects identffied for funding by the Lrfelines Board. Th• funding includgs operational and administrative $ts of the charty. Page 2
LIFELINES INTERNATIONAL FUND FOR EDUCAnoN LTD IA Company Lirnited by Guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEM8ER 2021 Risks and risk manag•m•nt The risks lo which Lrfelines is exposed, under Lrfeline's aim5 and objectives, are regularly monitored by Tnjstees who are committed to regul8T evaluation of organisalional risk assessment and are satisfied that efficient and effedive systems are In place to miligale exposure lo major risks. The prtncipal nsks are.. Strateglc risk These risks impact the charty's abilty to meet its key objectives, fail to serve the key client il serves (donees & funded charrtie51, and meet the expectations of the Board and members of the charrty. These risks inrtially emerged during 2020 and continued into 2021 leading lo increasing demand for COVID related emergency support from charities leading lo proportional increase in the need to ensure that projects funded were adequately monitored. The 8oaid's approach to mitigating this risk was by working closely wrth the recipient charf(ies, increased use of online review and update discussion5 and by making donations periodically, following review. A few projects failed to meet agTeed reporting of outcomes within the agreed timeframe and funding was not renewed. Financial and Treasury Management Rlsk The key finan¢i81 risks would mean th* the charty would fail lo meet ts operational requirements and lo honour donation commitments made lo charities. The Board managed these risks pro4ctivety by ensuring sufficient cash reseffts lo meet all ¢ommr(ments, and by compiling grant proposals for future funding up to one year in advance of Teouirement. As a resum of the relationship with Nelumbo Strfiung INSI, the Lifelin&s ILLI Board only enters commitments for operational expenditure and donations rf the fund5 have already been allo¢ated or received from NS. Further the Board retains a minimum cash reserve to ensure (( can meet * least 6 months of operational costs and approved donations. Regulatory Jndgovemance risk These risks incorporate regulatory or legal sanctions, the potential for repulalional damage. and in case of significant failures the loss of charrtable status. The Board has managed these risks by ¢on¢entr81ing fts inilièl strategic efforts on establishing a Tobust governance regime, the appointment of skilled and experienced ITuslees. and ensuring professional legallaccounling support in relevant areas. Trustees and senior management will be required to attend mandatory training on Charity regulations, Anti-money Laundering and Fraud prevention. Operational Rlsks (People, 17) These risks relate lo people. systems and processes, and extematrinternal events that erode the charitys abilty lo meet its funding cc>mmitmenls andlor rts operational outcomes. Al psent LL is managed entirely by a vc4untary team, and the Board is aware that this presents a potential risk. A Succession plan and a more detailed HR strategy (with employed slaffj is part of the second phase of the charity's overall strategy. IT systems management is contracted out, wi(h IT expertise also vested in the LL team. Further, all documentation. process•s and re$ear¢h data are stored on secure cloud-based servers. IT ¥ystems will be refreshed and updated as part of the strategic rewew once the Offi HQ has been refurbished. The delayed refurbishment of the office HQ (due to COVID. building regulatory delays and supply shortages) has led to delay in the implementslion of the HR strategy . It is now expected to be completed by December 2022. Page 3
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Change management These risks represent the failure of establishing and implementing change initiatives. 2021 continued to be a very challenging year, dominated by the uncertainty of the pandemic and the resullanl working model shifting from homeworking lo hybrid. This unprecedented change has impacted all organi5alions and the pressure on NGO'S that rely on a largely volunteer team (such as LLI has struggled wth meeting all the changing demands of the Organisalion. However, management has tsken a pragmatic and proactive approach in ensuring that communication is timely, appropriate. and collaborative. The Board manages key projects centrally with clear identified pro¢esses, which are established and drawn from Collaborative team discussions. Nevertheless key change initiatives such as the HR strategy, establishment of fomialised reporting tools and grant award committees have been delayed, impacting the number of projects the charity was able to proactive support wrth funding. Objectives and activiti8S To advance education among people in India. in particular childn, young people and adurts from disadvantaged backgrounds by promding grants, rtems and services to charities or other organisations working to advance education and through the PTowsion of scholarships. To act as a resource for young people up to the age of 21 liwng in the UK by providing advice and assistance and organizing programmes of educational and other activities as a means of". Advancing in lrfe and helping young people by developing their skills, capacities and capabilities to enable them to participale in society as independent, mature and responsible Individuals. bl Advancing education LL continued ils 5UPPOrt for educational scholarships for chiltjren from impoverished and marginalised communities in India. The Lrfelines scholarship funds were further supplemented to allow for leaching using online platfomis and by supporting On&t0ne tuition lonlinel in lieLS of clasSM teaching. Lrfelines continued to maintsin online communication and links wi(h another UK charity to support online volunteers to the selected charities. Scholarship and hardship funding was provided to fvK) UK ba$od University students who had been impacted by the loss of eamings caused by the pandemic. Regular reviews were maintained with all the supported charities. lo ensure the viabilrty of fulure projects. Pandemic and Mental Health Impact During the period, the Lrfelines Board funded several projects to mitigate the severe debilitating impact of the continuing pandemic on the mental health of young people, members frorn marginalised communf(ies, and vidims of domestic abuse. LL is committed lo raising awareness of the emerging mental health issues, particularly amongst young people, the refugee communty. and women within the BAME and marginalised communf(ies. During 2021, LL has been working with other charities and undertook a range of projects". counselling support lo vidims of domestic abuse (Dawn ¢ounselling - £50kl, supporteil employment ini(181ives for homeless women (Crisis £20kl, continued to fund the Women's, Amies Choir £36k (refugee and victims of trafficking), and provided luloring support for children (Quest for Learning - £2.Skl. The Charitable company completed the first stage of an exhaustive strategic review into the funding, financial planning, govemanc8, and corporate Identity of Lrfelines in 2021. This led to the re5truduring of the Trust Board and the decision lo establish a corporate HQ for the charity. The strategic rewew is onoing, and the chanty is currently at Stage fv40 of a three stage process. Page 4
LIFELINES INTERNATIONAL FUND FOR EDUCAnoN LTD IA Company Limlted by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 In setting the objectives and planning the activities of the Charrtable Company, the Trustees have given careful consideration to the Charities Commission's general guidance on public benefit. Achlevements and perforniance The Trustees launched a strategic rewew of the Charrtable Company's funding and management structure to enable il lo achieve ils slated aims and objectwes in 2021. The first $lage of this has been achieved resutting in a reconstituted Trust Board, the establishment of a governance framework. a medium-lerm financi81 strategy, and the establishment of an approved funding stream for an initial period of five years. The second stage of the strategy includes a review of HR and operational processes and this ha5 largely been Completed wth implementation (including recrurtment of staff and new Trustees) expected to be completed by the December 2022. Financial review Al the end of the reporting penod, the Charitable company held unreslricled reserves of £5,281,637 12020 £4,956,947) and restricted reserves of £75,266 12020 £88,718). The increase in TeseTves was dnven by donation income of £310k being received in the year, £1 Ok of which was specifically for an awareness event. In addition, there was an uplift in the valu8 of the investment property of £167k which added to the surplus in the year. At the balance sheet date, the archrtectural plans were in the process of being finalised and final surveys were being carried out before the commen¢emenl tsf refurbishment works. The Charity has a reserves poli¢y of maintsining 3-6 months, totsl expendittjre in unrestricted reserves which is estimated a5 £60,000 based on the current level of a¢tivty. Thi$ will be used if the charity encounters finan¢i81 difficulties. The Charty continually aims to build up its reserves so that they are in line wrth the reserves policy. The level of av8i18ble reserves al 31 December 2021 exceeded this amount. The Trustees will review the raserves wlicy on 8n annual basis. Plans for futur• periods Lrfelines management will continue to build on the second phase of f(s strategic vision 12020-20251. This will incorporate increasing funding capa¢ity, a substantive increase in reserves, and a tsrgeted increase in the charitable donations made by the charity to educational, transfomiational projects. The Trustees would like to eonlinue lo increase their support for charities who wort( therapeutically with refugees, with victims of abuse and trafficking, as well as targeted social empowemient inf(iatives for young people. The charity will launch scholarship fund in 2022. to encoura9e young people from margin81ised communf(ies, wthin the UK, lo g8in qualification$ in counselling, art, and the rnedical profession. Page 5
UFEUNES INTERNATIONAL FUND FOR EDUCATION LTD IA Company LimSted by Guaranteel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Trustees. Respon$Sbillty Statement The Trustees Iwho are also directors of Lrfelines International Fund for Education for the purposes of Company lawl are responsible for preparing the Trustees. Report and the financial statement5 in accordance with applicable law and United Kingdom Accounting Stsndards Ilhe United Kingdom Generally Accepted Accounting Pr8Cticel. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees musl not approve the financi81 statements unless they are satisfied that the gwe a true and fair view of the stsle of affairs of the charitsble cornpany and of the incoming resources and application of resource$. including the income and expendrture, of the char(table company for that period. In preparing these financial ststemenls. the Trustees are required lo". select surtable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting estimates that are reasonable and prudent", state whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concem basis unless it is inappropriate lo pre$umo that the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that are Sufficient lo show and explain the charitable company's transactions and disclose wrth reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial slalements comply wlh the Companie$ Act, Charities Act 2011 and the Charity IA¢¢ounls and Reports) Regulations 2008. They are a150 responsible for safeguarding the assets of the charty and hence for tsking reasonable steps for the prevention and detection of fraud and other irregulartts'es. Disclosure of inforniation to auditors Each of the persons who are Trustees al the time when this Trustees, report is approved has confimied that.. so far as that Trustee is aware, there is no relevant audit infomiation of which the Charity's auditors are unaware and., that Trustee has taken all the steps that ought lo have been tsken as a Trustee in order to be aware of any relevant audit infomalion and to establish that the charity's auditors are aware of th* infomialion. In preparing this report, the Trustees have taken advantsge of the small companies exemptions provided by section 415A of the Companies Act 20C6. Approved by order of the members of the board of Trustees and signed on their behaw by.. Madhavl Vadera (Trusteel Date 12 50 xxg Poge 6
UFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guaranteel INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UFELINES INTERNATIONAL FUND FOR EDUCATION LTD FOR THE YEAR ENDED 31 DECEMBER 2021 Opinlon We have audited the financial statements of Lifeline$ Intemalional Fund for Education Ltd Ilhe 'charf(able company'l for the year ended 31 December 2021 which comprise the Ststement of Financial Activrties, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practs'cel. In our cpinion the financial stslemenls". give a true and fair view of th¢ stste of the charitable comp8nls affairs as al 31 December 2021 and of its Incoming r&sources and application of resources, including its income and expenditure for the year then ended., have been propedy prepared in accordance wth Unf(ed Kingdom Generally Accepted Accounting Practice,. and have been prepare(l in a¢cordan¢e with the requirements of the Companies Act 2006. 8asis for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audi( of the financial 5ts1emenls section of our report. We are independent of the charitable company in accordance wth the ethical requirements that are relevant to our audit of the fin8ncial statements in the United Kingdom, including the Financial Reporting Council's Ethi1 Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit ewdence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relating to golng concern In audi(ing the financial slatemenl$, we have concluded that the Trustees. use of the going concem basis of aecounling in the preparion of the financial statements is appropriate. Based on the work we have performed, we have not identrfied any materal uncertainties rel*ing lo events or conditions that, individualty or collectively, may cast $ignrfi¢ant doubt on the ¢harrtable company's ability to continue as a going concern for a period of * least twelve months from when the financial ststements are authorised for issue. Our responsibiir<ies and the responsibilrties of the TNslees wth respect to going con¢em are described in the relevant sections of this report. Oth•r InfomiatSon The other infomialion comprises the infoTmation included in the Annual Report other than the financial ststemenls and our Auditors, Report Ihereon. The Trustees are responsible for the other information contained wf(hin the Annual Report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitty stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibilty is to read the other information and. in doing so. consider whether the other inforrnalion is malerialty inconsistent wf(h the financial ststements or our knovledge obtsined in the course of the audi(, or Otherwise appears to be materially misststed. If we identfy such material inconsistencies or apparent material misslalemenls, we are required to determine whether this gives rise lo a material misstalemenl in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material mis5tatern¢nt of this other infomiation, we ale required to report that fact. We have nothing to report in this regard. Page 7
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Llmlted by Guarantgel INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Opinion on other matters preScrIb by the Companios Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the infomialion given In the Trustees, Report for the financial year for which the financial ststements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordancg with applicable legal requirements. Matters on whlch we are required to report by exception In the light of our knedge and understanding of the charitable company and its envifonm&nt obtained in the Course of the audr(, we have not identified material misstatements in the Trustees. Report. We have nothing lo report in respèct of the followng matters in relation lo which Companies Act 2006 requires us to report to you rf, in our opinion". adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not vi51ted by us,. or the financial statements are not in agreemenl with the accounting records and retums,. or certain disclosures of Trustees, rernuneration specified by law are not made,. or we have not received all the infomation and explanations we require for our audrt,. or the Trustees were not enti(led lo prepare the financial statements in accordance with the small companies regime and lake advantsge of the small companies. exemptions in preparing the Trustees. Report and from the requirement lo prepare a Strategic Report. Responslblllties of trustees As explained more fulty in the Trustees, Responsibilities Slalemenl, the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financi81 statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees detemiine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due lo fraud or error. In preparing the financial slalemenls, the Trustees are Tesponsible for assessing the charitable companls abilty lo continue as a going concem, disclosing. as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend lo liquidate the charf(able company or lo cease operations, or have no realistic attemative but to do so. Audttor5' responslbSlltles for the audit of thè finan¢lal stst¢ments Our objectives are lo obtain reasonable assurance about whether the financial ststements as a whole are free from material misslalemenl, whether due to fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is 8 high level of assurance, but is not a guarantee that an audrt conducted in accordance with ISAS IUKI ¥MII always delecl a material misststement when it exi5t5. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonabty be expected lo influence the enOmiC decisions of users taken on the basis of these financial statements. Irregularities, including fraud, ale instsnces of non-compliance wrth laws and regulations. We design procedures in line wlh our responsibili(ies, outlined above, to detect material misstatements in respect of irregularities, including fraud. Page 8
UFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Cornpany Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UFELINES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 In identifying and assessing risks of material mi5slatement in respect of irregulanties, including fraud and noncompliance with laws and regulations, we considered the following.. The nature of the sector and the impa¢t of Covid 19 on financi81 and operating performance and policies., Enquiries of management. including obtaining and reviewng supporting documentation, concerning the charity's policie5 and procedures relating to.. identrfwng, evaluating and ¢omplwng wrth laws and regulations and whether they were aware of any instances of non-compliance., (tetecting and responding to the risks of fraud and whether they have knoedge of any actual, suspected or alleged fraud.. and the internal controls established lo mitigate risks lated to fraud or non<ompliance of laws and regulations". and Discussion$ among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators ol fraLd. The engagement team includes audit partners and staff who have extensive experience of working with charities in similar sectors and this experience was relevant to the discussion about where fraud risks might arise. We also obtained an understsnding of tha legal 8nd regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the detÈminalion of material amounts and disclosures in the financial slatemenls. The key laws and regulations we considered in this context included the UK Companies Act, UK Charrties Act and Charities SORP 2019. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but c¢)mplian¢e with which may be fundamental lo the charity's abilty lo operate or to avoid material penatty. These included health and safety regulations, and environmental Te9ulalions. As a resu of these procedures, we considered the particular areas that were susceptible to misslalemenl due lo fraud were in respect of connected paty transactions, revenue recognition Ispecrficalty completene55 and classification of donation Incornel and management override. Our procedures lo respond to Tisks idenlrfied included the following-. reviewing the financial ststement disclosures and testing to supporting documentation to assess compliance wf(h prow5ions of relevant laws and regulations described as having 8 direct effect on the financial ststement5', enquiring of management concerning actual and potential litigation, claims and fraud., perfomiing analyiical procedures lo identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.. reading minutes of meetings of those charged with govemance., reviewing completeness and classification of income by reference to award letters and other supporting documentation on a sample basis," in addressing the risk of fraud through management override of controls, testing the approprialenes5 of jOUTnal entries and other adjustments," assessing whether the judgements made in makin9 accounting eslimales are indicative of a potential bias,. and evaluating the rationale of any signifant transactions that are unusual or outside the normal course of the charity's operations., reviewing transactions and balances for ewdence of related party transactions and verrfying appropriate disclosure in the financial Ststements. Because of the inherent limrtation$ of an audit, there is a risk that we wll not detect all irregularities. including those reading lo a material misslatemenl in the financial statements or non-Clp1Iaee wlh regulation. This risk increases the more that compliance wrth a law or regulation Is removed from the events and transactions refiected in the financial statements, as we will be less likely to become aware of instsn¢es of non<ompliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery. collusion. omission or misrepresentation. Page 9
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 A further description of our responsibilities for the audit of the financial 5tatement5 Is located on the Financial Reporting Coun¢il's website at". www.f res nsibilrties. This description fomis part of our Auditors, Report. Use of our report This report Is made solety to the charrtable companls members, as a body, in accordance wlh ChapleT 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken $0 that we might slate to the charitable company's members those matters we are required lo slate to them in an Auditors, Report and for no other purpose. To the fullest extent pèmirtted by law, we do not accepl or assume responsibilty lo anyone other than the charitable ¢panY and ils members. as a body, for our audi( work, for this report. or for the opinions we have fomied. LLFY Lee Facey IS8nior Statutory Auditor) for and on behalf ol Lubbock Fine LLP Chartered Accounlanls & Statutory Audrtors Paternoster House 65 St Paul's Churchyard London EC4M 8AB Dale.. 23 september 2022 Page 10
LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTD {A Company Limited by Guaranteel STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Restrlcted Unrestricted funds funds 2021 2021 Totsl funds 2021 Total funds 2020 Note Income from: Donations and legacies 10,000 300,029 310.029 5,100,000 Total income 10,000 300,029 310.029 5,100,000 Exponditure on: Charitable activities 165,735 165,735 59.881 Total expendlturo 165,735 165,735 59.881 Net income Transfers between funds 10,000 123,4521 134,294 23,452 144,294 5,040,119 12 N•t movoment in funds befor8 oth•r r8cognls•d galn$ 113,4521 157,746 144,294 5.040,119 Other recognisod galns: Gains on revaluation of fixed assets 166,944 186,944 Nrt movement In funds 113,4521 324,690 311,238 5,040,119 Reconciliation of fund$: Total funds brought forward Net movement in funds 88,718 113,4521 4,956,947 324,690 5,045,665 311,238 5,546 5.040,119 Total funds carried fomard 75,286 5.281,637 5.3%,903 5,045,665 The Statement of Financial Activi(ies include5 all gains and losses recognised in the year. The notes on pages 13 10 22 fonn part of these financial statements. P8ge11
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) REGISTERED NUMBER.. 06792434 BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2021 2020 2020 Note Fixed assets Investment propety Current assets 5,100.000 4,909,604 Debtors Cash at bank and in hand 10 261,460 14.572 153,798 276,032 153,798 Creditors.. amounts falling due wf(hin one year 119.129) 117,7371 Net current assots 256,903 136,C61 Total not assets 5,356,903 5,045,665 Charlty funds Restricted funds Unrestricted funds 12 12 75,266 5.281,637 88,718 4,956,947 Total funds 5,356.903 5,045,665 The financial statements have been Prepared in accordance wrth the provisions applicable to entities subiect to the small Companies regime. The financial stslemenls were approved and aulhorised for issue by the Trustees and signed on their behaw by.. Madhavl Vadern (Trusleel Date. 4*M4 .fL/t The notes on pages 13 10 22 fomi part of these financial statements. Page 12
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 General Infomation Lrfelines Inlemational Fund for Education Ltd is a charitable company limited by gurantee registered in England & Wales. Il's registered address Is 76 Park Street, London, W1 K 2JY. The functional currency of the financial statements is sterling. rounded to the nearest pound (£1. Accounting pollcles 2.1 8asis of preparatlon of flnanclal statemonts The financial slalemenls have been prepared in accordance w((h the Char((ies SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts In a¢cord8nce wrth the Financial Reporting Stand8rd applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reportin9 Standar¢J applicable in the UK and Republic of Ireland IFRS 1021 and the Ctsmpanies Act 2006. Lifelines International Fund for Education Ltd meets the definition of a public benefit entty under FRS 102. Assets and liabilities are initially recognised al historical cost OT transaction value unless otherwise stated in the relevant accounting policy. 2.2 Company st•tus The Charitable company is a company limrted by guarantee. In the event of the Chantsble company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charitable company. 2.3 Golng concern The accounts have been prepared under the going concem basis, which ass4Jmes that current and future sources of funding will be adequate for the Charrtable Company's needs. The Ch8rit8ble Company meets its running costs from donation income. The natu of the Charitable company's operations is such, that there can be unpredictable variations in the timing and amount of cash inflows. The Trustees continuousty review the funding prospects and expendf(ure levels and take action lo reduce expenditure should funding expectations and reseryes appear inadequate. On the basis of this policy, the Board consider that the Charrtable company will continue in opefational existence for the foreseeable future. 2A Income All income Is recognised once the Charrtable company h85 enlillemenl to the income, rt is probable that the income will be received and the amount of income receivable can be mèasured reliabty. Donations are Tecognised as income when pledged or rf no pledge has been made then on receipt. Where a donor specrfies a time period in which the donation can be used, donation income is recognised in that period. Donations received wrth imposed restrictions are classrfied as restrided funds. 2.5 Interest re¢elvable Interest on funds held on deposit is included when receivable and the amount be measured reliabty by the Charrtable company., this Is normally upon nolrficalion of the interest paid or payable by the bank. Page 13
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng policl8s Icontlnuedl 2.6 Expendlture Expenditure is recognised once there is 3 legal or constructive obligation to transfer economic benefit lo a third paty. il is probable th8t 8 transfer of economic benefrts will bè required in settlement and the amount of the obligation can be measured reliably. Expendrture 15 classified by actiwty. The costs of each activity are made up of the total of direct wsls and shared costs, including support ¢osts invofved in undertaking each a¢tivity. Direct costs attributable lo a single actiwty are allocated directly to that artivty. Shared ¢osls which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of resources. Costs of raising funds are those incurred in seeking voluntary contributions. Support costs are those costs incurred direclty in support of expenditure on the objects of the Charitsble company. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expendrture when the conditions attaching are fulfilled. Grants offered subject lo conditions which have not been met al the year end are nota as a commitment. bul not accrued as expenditure. All expenditure is inclusNe of irrecoverable VAT. 2.7 Investment Property Investment propety is carried al fair value detemiine<l annually by the trustees and derived Irom the current marf(et rents and investment propety yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific propety. No depreciation Is provided. Changes in fair value are recognised in the Statement of Finarcial Activities. 2.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 2.9 Cash at bank and In hand Cash at bank and in hand include5 cash and short-temi highly liquid investments wlh a short maturity of three months or less from the date of acquisition or opening of the deposit or Similar account. 2.10 Llabllltlès and provlslon8 Lpbilth'es are recognised when there is an obligion * the Balance Sheet date as a result of a past event, f( is probable that a transfer of economi¢ benefit will be required in setuemenl, and the amount of the settlement can be estimated reliabty. Liabilities are recognised at the amount that the Charitable company anticipats$ it will pay to settle the debt or the amount it has received as advanced payrnenls for the goods or services (( must provide. Provisions are measured at the best estimate of the amounts required to Settle the obligation. Page 14
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 DECEMBER 2021 Accounting polic1•$ lcontlnuedl 2.11 Corporatlon Tax Due to the charitable nature of the activties undertaken, the Charitable companys surpluses are not subject lo corporation lax. 2.12 Financlal instruments The Charf(able company onty has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are inilialty reGognised at transaction value and subsequently measured at their settlement value wth the exception of bank loans bvl)ich are subsequently measured al amortised cost usin9 the effective interest method. 2.13 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objedives of the Charitable Company and which have not been d¢$ignaled for other purposes. Designated funds comprise unrestricted funds that have been sel aside by the Trustees for particular purposes. The aim and use of each designate(I fund is set out in the notes to the financial stètemenls. Restricted funds are funds which are lo be used in accordance with specrfic reslriclions imposed by donor5 or which have been raised by the Charitsble company for particular purposes. The costs of raising and administering such funds are charged against the specrfic fund. The aim and use of each slricled fund is set out in the notes to the financial statements. Income from donatlons and 1gga¢lo6 Rostricted Unrestri¢tod funds funds 2021 2021 Total fisnds 2021 Donations 10,000 300,029 310,029 Restrlcted Unrestrlcted funds fund$ 2020 2020 Total funds 2020 Donations 5,000,000 100,000 5,100,000 Page 15
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of 8xp•nditure on charltable aCtivieS Summary by fund typ8 Unrestricted funds 2021 Totsl funds 2021 Charitable adivty 165,735 165,735 Restricted Unr8strict¢d funds funds 2020 2020 Total funds 2020 Charitable a¢tivrty 1,678 58,203 59,881 Analysis of expendlture by activiti•s Grant funding of activities 2021 Support costs 2021 Total funds 2021 Charitable activrty 141,731 24,003 165,734 Grant fundlng of actlvities 2020 Support costs 2020 Total funds 2020 Charitable aclivty 43,920 15,961 59,881 Page 16
UFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of gxpendlturo by actlvities {¢ontlnuedl Anatysis of support costs Total funds 2021 Total funds 2020 Accountancy fees Audit fees Igovernancel Other support cost5 Insurance Brand strategy, website development and other professional fees Rates and Utilitie$ Propety pairS Fundraising costs 3,088 7,500 622 1,166 5,111 4,645 1.655 216 2,909 6,600 42 4,004 501 1,678 216 24,003 15,961 Analysls of grants Grants to Grants to Instltutions Individua15 2021 2021 Totsl funds 2021 Grants 108,632 33,099 141,731 Grants to indwiduals totslling £33,099 were made to cover student course fees and rent costs. Grants to Institutions 2020 Total funds 2020 Grants 43.920 43.920 Page 17
LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Analysis of grants Icontlnuedl The Charitable company has made the following material grants lo institutions during the year.. 2021 2020 Name of Institution Quest for Leaming Crisis Dawn Ch8ritsble Trust Pan Intercullural - Amies Choir Project Pan Intercuttural Arts - Counselling Support Nirvama Trust Warford Womens Centre BMS Democracy 2,500 20,¢)00 50,000 31,432 4,700 2,080 31.840 10.000 108,632 43,920 AudIt0. remuneratlon 2021 2020 Fees payable lo the Charitable company's auditor for the audit of the Charrtable company's annual accounts 7,500 6.600 Trustees. rnmuneration and expenses During the year, no Trustees received any remuneratson OT other benefits12020- £NILI. During the year ended 31 December 2021, no Twstee expenses have been incurred12020- £NILI. Page 18
LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTO IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Investment property Freehold investment property Valuation Al 1 January 2021 Additions Surplus on revaluation 4,909,604 23,452 166,944 Al 31 December 2021 5,100,000 The investment property was revalue(l at 31 December 2021 by the Trustees on an even market basis. 10. Debtors 2021 2020 Due wllhSn onè year Prepayments and accrued ineome 261,460 261.460 11. Crgdltors- Amounts falllng duo wlthln one year 2021 2020 Trade ¢redf(ors Other creditors Accruals and deferred income 425 1,655 17,049 201 1,717 15,819 19,129 17,737 P8ge19
LIFEUNES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limlted by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 12. Stat•ment of fund$ Statement of funds- curr•nt year Balance at q January 2021 Balance at Gainsl 31 December ILossesl 2021 Transfers inlout Income Expenditure Unrostrl¢ted funds Deslgnated fund5 Investment prcporty fund 4,909,604 23.452 166,944 5,100,000 Genèral funds General Funds 47.343 300.029 {165.7351 181,637 Total Unrostricted funds 4,956,947 300,02fJ 1165,7351 23,452 166,944 5,281,637 R8stri¢ted funds Propety purchase and refurbishment Awareness event 88.718 123,4521 65,286 10,000 10,000 88,718 10,000 123.4521 75,266 Total of funds 5,045,665 310,029 1165,7351 168,944 5.356.903 Page 20
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 12. Statament of funds (ConnUed1 Statement of funds - prlor year Balance at 1 January 2020 8alance at Transfers 31 December Snlout 2020 Income Expenditure Unrestrict8d funds Designated fund$ Investment propety fund 4,909,604 4,909,604 General funds General Funds 5,546 100,000 158,2031 47,343 Total Unr•8trlcted fund8 5,546 100.000 IS8,2031 4,909.604 4,956,947 Restrictgd funds Property purchase and refurbishment 5,000,000 11,678) 14,909,604) 88.718 Total of funds 5,546 5,100,000 159.8811 5,045,665 Restricted funds The property purchase and refurbishment restricted fund relates lo donations received toward$ the purchase and refvrbishment of the investment propety. The awareness event restricted fund relates lo donations received to cover the ¢05ts of a charriable event. Deslgnated funds The investment property designated fund represents the value of the charity's investment propety which is prinupally held for income generation lo further the charity's objectives. Transfer of funds Reslriclions placed on certain funds were satisfied during the year resurting in a transfer of £23,45212020 - £4,909,604) from restricted lo designated funds. Page 21
UFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31 DECEMBER 2021 13. Anatysls of net assets between funds Analysis of net assèts betweon funds- curront year Rèstrlcted Unrestrtcted funds funds 2021 2021 Total funds 2021 Investment propety Current assets Creditors due within one year 5,100,000 200.766 119.1291 5,100.000 276.032 119,1291 75,266 Total 75,286 5,281,637 5,356,903 Analysls ¢f net assets b¢tween funds- prlor year Restricted Unr8stri¢tgd fvnds funds 2020 2020 Total funds 2020 Investment propety Current assets Creditors due within one year 4,909,604 65,080 117,7371 4.909.604 153,798 117,7371 88.718 Total 88,718 4.956.947 5,045,665 14. Related party transa¢tSons During the year, the charity received donations lotalling £300,000 12020 £5,100,000) from Nelumbo Strfiung, a charrtable foundation which is a member of the charity. The trustees of Lifelines Intemalional Fund for Education are not beneficiaries of Nelumbo Sliftung. There were no attached condOnS which would, or might, require the charity lo aker significantly the nature of its existing activrties. At the year end an amount of £1,655 12020 - £1,718) was owed to Fll Limited, a company in which trustees Madhavi Vadera and Rupin Vadera are diredors. in respect of expenses paid on behaW of the charity during the year. At the year end an amount of £10,000 12020 £nill was due from Fll Limrted in respect of donations pledged during the year. 15. Post balancè sheot avents In June 2022 a contract was signed for the refurbishment of the investment property wth an estimated cost of £564,000. Page 22