Registered number.. 06792434 Charity number- 1136839 LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) CONTENTS Page Reference and Administrative Details of the Charitable company, its Trustees and Advisers Trustees. Report Independent Audltors, Report on the Flnanclal Statements 8-11 Statement of Finaneial Activities 12 Balanee Sheèt 13 ststement of Cash Flows 14 Notes to the Financial Statements 15-27
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Madhavi Vadera Rupin Vadera Vandana Shah Darpan Patel Pia Mandus Company registered number 06792434 Charity registered number 1136839 Registered office 76 Park Street London W1K2JY Company secretary Ruxandra Sandu Chief executive officer Madhavi Vadera Independent auditors 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 A Company Limited by Guarantèe) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (who are also directors of the company for the purposes of the Companies Acll present their annual report together with the financial statements of Lifelines International Fund for Education Ltd lor "the Charitable Company'l for the year ended 31 December 2023. The Trustees confim that the Annu81 Report, which includes the Directors, Report, and financi81 statements of the Charitable Company comply with the cutrenl statutory requirements, the requirements of the Charitable Company's governing document and the provisions of the Statement of Recommended Poctice ISORPI, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Rèpublic of Ireland IFRS 1021 (effective 1 January 20191. Since the Charitable Company qualifies as 'small' under Section 383, the strategic report qUired of medium and large companies under The Companies Act 2006 Istrategic Report and Direclorfs Report) Regulations 2013 is not required. Reference and admlnlstratlve detalls Lifelines International Fund for Education Ltd was incorporated on 15 January 2009 under the Companies Act 120061 with a company number of 06792434, and subsequently registered as a charity with the Charity Commission of England and Wales on 13 July 2010 under registration number 1136839. The registered office address is 76 Park Street, London, W1 K 2JY. The CEO of Lifelines International Fund for Education Ltd was Madhavi Vadera until 1 July 2021. Rupin Vadera look over the role from this dale, with Mrs Vadera subsequently serving as Deputy CEO. As of 6 July 2023, Mrs Vadera resumed her role as CEO. Trustees The Trustees who served the Charitable company during the year and Sin the period end were as follows.. Mrs Madhavi Vadera Mr Rupin Vadera Mr Darpan Patel Ms Pia Mandus Mrs Vandana Shah (from 6 August 20231 structure. governance and management The Charitable Company is a private company limited by guarantee, governed by ils Memorandum and Articles of Association. In the event of the company winding up while a member or within e1ve months of ceasing to be a member, the memberfs liability is limited lo £10. Lifelines International Fund for Education Ltd is managed by the Board of Trustees, who meet al least quarterfy each year. If the need arises lo appoint a new Trustee, the remaining Trustees will identify and appoint an appropriate person. New Trustees are briefed on their legal obligations under charity and company law, the contents of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan, and recent financial performan of the Charitable Company. The Board continuously reviews its existing capabilities and competencies and is conscious of the need to maintain a balance of skills. Additional members are periodically invited to join the Board as subject maller experts ISMES), and this involves a careful velling process by the Board to ensure every new SME is aware of their responsibilities towards the charity. The Board is currently actively engaged in recruiting a further Trustee to the Board. Page 2
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities 1. To advance education among people in India, in particular childn, young people, and adults from disadv8n18ged backgrounds by providing grants, items and services lo eharilies or other organisations working to advance education and through the provision of scholarships. 2. To act as a resource for young people up lo thè age of 21 living in the UK by providing advi and assistance and organizing programmes of educational and other activities as a means of". a. Advancing in life and helping young people by developing their skills, capacities, and capabilities to enablè them to participate in society as independent, mature and responsible individuals. b. Advancing education Lifelines International continued ils support for educational scholarships for children from impoverished and marginalised communits'es in India. During the year, scholarship and hardship funding1£33KI was provided to one UK-based and one international based university students, both of whom have now successfully completed their courses and are in employment Regular reviews were conducted with all the supported charities to ensure the viability of future projects. Fund-Ralslng Infomiatlon The Charitable Company does not carry out significant fundraising aclivits'es. No public donations were received in the year and no public fundraising was undertaken. The Charity has established philanthropic relationships with a charitable foundation, Nelumbo Sliftung, which has committed to a funding budget of at least £1,000,000 per annum, subject to the presentstion of robust, well-researched and vetted charitsble projects identified for funding by the Lifelines International Board. The funding includes capital expenditure Isuch as the refurbishment of the charity's propetyl, and the operational and adminislralive costs of the charity. Rlsks and rlsk management The risks lo which Lifelines International is exposed, in the execution of ils aims and objectives, are regularly monitored by Trustees who are committed lo the regular evaluation of organisalional risk assessment and are satisfied that efficient and effective systems are in place to miligale exposure to major risks. The principal risks are.. Strategic risk These risks are those that could impact the charity's ability lo ensure that it meets ils key objectives, potentially fails to serve and support ils key clients (direct beneficiaries and other charitieslNGOsl, andlor fails lo meet the strategic expectations of the Board and members of the charity. These risks initially emerged during 202012021 and the early part of 2022, leading to increasing demand for COVID-relaled emergency support from charities and thus resulting in a proportional increase in the need to ensure that projects funded were adequately monitored. The Board's approach lo mitigating this risk was to closely work with the recipient charities,. the increased use of online review and update discussions., and by making periodic additional emergency donations, following review. Whilst most of the projects funded met agreed largels and estimated outcomes, a minority still failed to meet expectations. A Charity Administrator was appointed in July 2022 to ensure application projections were monitored and timely outcomes reports reived. Page 3
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Financial and Treasury Management Risk The key financial risks are those that mean the charity would fail lo meet its operational requirements 8ndlor to honour donation commitments made to charities. The Board proactively manages these risks by ensuring suffi'cient cash reserves to meet all commitments, and by Compiling grant proposals for future funding up to one year in advance of requirèment. As a SuIt of the relationship with Nelumbo Stiftung INSI, the Lifelines International Board only enters commitments for operational expenditure and donations if the funds have already been allocated or received from NS. Furthermore, the Board retains a minimum cash reserve to ensure it can meet at least 6 months of operab'onal costs and approved donab'ons. Regulatory and governance rlsk These risks incorporate regulatory or legal sanctions, the potential for reputstional damage, and in case of significant failures, the loss of charitable status. The Board has managed these risks by concentrating its initial strategic efforts on establishing a robust governan regime, the appointment of skilled and experienced trustees, and ensuring professional legallaccounting support in relevant areas. Trustees and senior management attend mandatory training on Charity Regulations, Anti?Money Laundering, and Fraud Prevention. A Charity Adminislralor has been appointed to maintain oversight of emerging regulatory changes, to compile policies, and to ensure that the Board is informed about current guidance and policy updates. Operatlonal Rlsks {People, IT) These risks relate lo people, systems and processes, and externallinternal events that erode the charity's ability lo meet its funding commitments andlor ils operational outcomes. At present Lifelines International is managed entirely by a voluntary team and one full-time paid member of staff Icharily Administrator) and the Board is aware that this presents a potential risk. A succession plan with a more detailed HR strategy (with employed staffj will be considered as part of the next three-year strategy lo be considered by the Board12024-20271. IT systems management has been contracted out, with IT expertise also vested in the Lifelines International team. Further, all documentation, proSSeS and research data are stored on secure cloud-based servers. IT systems were refreshed and updated in July 2023 as part of moving into the newly refurbished offi. Change of management These risks represent the failure of establishing and implementing change initiatives. 2022 remained a challenging year, with delays in assessing project applications, grant management, and the delayed move back into office premises. This change appears to have impacted all organisations, and the pressure on NGOS that rely on a largely volunteer team (such as Lifelines Internationall continue to struggle with meeting all the changing demands of the organisation. There were delays, loo, in 2023 as a result of staff turnover. This has now been resolved by the addition of a full-time officelfacilities manager and the re-allocation of the donation management function within the team The Lifelines office in Central London became fully functional in July 2023. The Board manages key projects centrally, with clearly identified processes that are established and drawn from collaborative team discussions. Nevertheless, as outlined earlier, key change initiatives such as the HR strategy, establishment of formalised reporting tools and grant award committees have been further delayed, impacting the number of projects the charity was able lo proactively support with funding. Page 4
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Education and Mental Health Initiatives During the period, the Lifelines International Board funded several projects to mitigate the severe debilitating impact of forced migration and post-pandemic stress on the mental health of young people, members of marginalised communities, survivors of domestic abuse, and survivors of human tmfficking. Lifelines International is particularly committed lo raising awareness of emerging mental health issues, particulady amongst young people, the refugee community, and women within BAME and marginalised communities. In support of these themes, during 2023 Lifelines International worked with relevant charities in the sector and funded a range of projects.. Pan Inlercultural Arts.. Papillon Projed IPsychosocial support for female Afghan refugees and Fortune project- £64k Amies Freedom Choirs (Psychosocial and psychotherapeutic support for female survivors of human trafficking) £31 K Quest for Leaming". Book Quest and Reading Quest (Literacy development and support for primary school children) £120K Chums.. Supporting young people and their families who suffered bereavement and trauma £45K Future Living Hertrord.. Supporting women's empowemient and employability £1 OK Happy Baby Supporting pgnant women survivors of trafficking 8nd violence £43K Crisis". Supports'ng people that experienced homelessness £19K Lifelines International continued its support tsf 8 groundbre8king initi8tive working with Future Leaders IFLI. FL offers a year-long leadership programme lo students from severely disadvantsged communities, allowing them aCsS to post-18 pathways lo further education and employment that would have previously been impossible. Future Leaders is in partnership with the Mayor of London and the University of Oxford. As a result of the funding provided by Lifelines International 1£375k in lotsl for a period of three years, subject to evidenced support of performance and outcomes) over 300 students will benefit from these transformational sessions. The Charitsble Company continued the implementstion of its strategic review into the funding, financial planning, governan, and corporate identity of Lifelines International in 2023. This timeline has suffered as a sUIt of resourcing issues as Lifelines is reliant on volunteer support. We are committed on strengthening of the Board of Trustees to bring in additional skillsets required for the effective management and oversight of the activities of Lifelines International. The strategic review is ongoing, and the charity is currently at the final stsge of the three- year review. In setting the objectives and planning the activities of the Charitsble Company, the Trustees have given careful consideration lo the Charity Commission's general guidance on public benefit. As a result of this review, the current objectives are being reviewed and may be resubmitted to the Charity Commission in late 2024. Achlevements and perfomiance As part of the Trustees, review of the Charitable Company's funding and management structure, there were new additions to the Board Iwilh effect from July 20231, the appointment of a Chief Financial OffIr and Company Secretary Ivolunteersl, and the Charity Adminislralor lemployeel. This has resulted in a more robust governance framework, an updated medium-term financial strategy, and the establishment of an approved funding stream for an initial period of five years. Page 5
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 An updated website was launched during the year lo improve awareness of the charity's work, and to showease the work achieved by the charities and NGOS supported by Lifelines International. A celebffttory event Icelebrating Changemakersl was hosted by Lifelines Internation81 to bring together other funders and our charities, building networks and lationShipS to ensure that the charities we support become self-sustaining in tems of their growth and long-term effectiveness. Financial review At the end of the reporting period, the Charitable Company held unrestricted reserves of £S,354,196 12022 £5,595,484) and reslricled reserves of £nil12022 - £nill. The increase in reserves was driven by donation income of £1,275,000 being received in the year. This was offset by expenditure of £489,462 in the year. During the year the investment property was in the process of undergoing refurbishment with works completing in August 2023. The Charity has a reserves policy of maintaining 3-6 months, total expenditure in unreslricled reserves, which is estimated as £60,000 based on the current level of activity. The Trustees will review the reserves policy on an annual basis and take steps lo increase the value of reserves. Plans for future perlods Lifelines International management are now working towards estsblishing its next medium-temi stralegy12025- 20271. This will incorporate increasing funding capacity, establishing a stronger relationship with ils funders, ensuring a subslanlive increase in reserves, and a targeted increase in the charitsble donations Made by the charity to educational, transformational projects. The Trustees would like to continue lo increase their support for charities who work therapeutically with refugees and with victims of abuse and trafficking, as well as targeted social empowerment initiatives for young people. The charity has established a scholarship fund lo encourage young people from marginalised communities within the UK to gain qualifications in counselling, art, and the medical profession. Further work on the structure, reporting mechanisms and application processes is ongoing. Trustees. Responsibility Statement The Trustees (who are also directors of Lifelines International Fund for Education for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (the United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Charitsble Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to.. Select suitable accounting policies and then app them consislenUy', Observe the methods and principles of the Charities SORP IFRS 1021., Make judgments and accounting eslimales that are reasonable and prudent, Stale whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial stalemenls., And prepare the financial statements on the going conrn basis unless il is inappropriate lo presume that the charity will continue in operation. Page 6
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees are responsible for keeping adequate aecounting records that are sufficient lo show and explain the Charitable Company's transactions and that disclose with reasonable accuracy at any time the financial position of the ChariL9ble Comp8ny, and enable them lo ensure that the financial statements comply with the Companies Act, Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They a also sponsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of infomiation to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that". so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditors are unaware and., that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. Approved by order of the members of the board of Trustees and signed on their behalf by.. v,kn. Madhavi Vadera ITrusteel 30 september 2024 Dale.. Page 7
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD FOR THE YEAR ENDED 31 DECEMBER 2023 Opinion We have audited the financial statements of Lifelines International Fund for Education Ltd Ilhe 'charitable company'l for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 United Kingdom Accounting Stsndards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, Iunited Kingdom Generally ACpted Accounting Practice). In our opinion the financial slalements.. give a true and fair view of the slate of the charitable company's affairs as at 31 December 2023 and of its incoming reSoUS and application of resources, including ils income and expenditure for the year then ended,. have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practi¢e', and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion 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 audit of the financial slalemenls section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have conduded that the Trustees, use of the going concem basis of accounting in the pparatiOn of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that. individually or collectively, may cast significant doubl 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. Page 8
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Other information The other information comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly sL9ted in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise lo a material misstatement in the financial statements themselves. 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. Oplnlon on other matters prescrlbed by the Companles 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 slalements are prepared is consislenl with the financial slalements. the Trustees. Report has been prepared in awordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to port in respect of the following matters in relation lo which Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or rtain disclosures of Trustees. remuneration specified by law are not made., or we have not reiVed all the infomialion and explanations we require for our audit., or the Trustees were not entitled lo prepare the financial statements In accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustees. Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl 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 neSSary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going GOnM basis of accounting unless the Trustees either intend to liquidate the charitable company or lo ase operations, or have no realistic alternative bul to do so. Page 9
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Auditors. responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as 8 whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 8ccord8nce with ISAS IUKI will aayS detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financi81 statements. Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misstatements in respect of irregularities, including fraud. In identifying and assessing risks of material misstslemenl in respect of irregularities, including fraud and non- Complian with laws and regulats'ons, we considered the following.. The nature of the sector and the impact of the cost of living crisis on financial and operating performan and policies., Enquiries of management, including obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating lo". identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance detecting and responding lo the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud., and the inlemal controls established to mitigate risks related lo fraud or non-complian of laws and regulations., and Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any FX)lenlial indicators of fr8ud. The eng8gement 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 understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Charities 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 compliance with which may be fundamental lo the charity's ability to operate or to avoid a material penalty. These included health and safety regulations, and environmental regulations. As a result of these procedures, we considered the particular areas that were susceptible to misstalemenl due to fraud were in respect of connected patty transactions, revenue recognition (specifically completeness and classification of donation income), unrecognised grant commitments and management override. Our procedures lo respond to risks identified included the following.. reviewing the financial statement disclosures and lesling to supporting documentation lo assess compliance with provisions of relevant laws and regulations described as having a direct effeet on the financial statements., enquiring of management Conrning actual and potential litigation, claims and fraud., performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstalemenl due to fraud., reading minutes of meetings of those charged with governance., Page 10
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 reviewing completeness and classification of income with reference to award letters and other supporting documentation on a sample basis", review on a sample basis of gonl awards I correspondence with beneficiaries to verify completeness of grant commitments., in addressing the risk of fraud through management override of controls, lesling the appropriateness of journal entries and other adjustments,. assessing whether the judgements made in making accounting estimates are indicative of a potential bias., and evaluating the rationale of any significant transactions that are unusual or outside the nomial course of the charity's operations. reviewing transactions and balances for evidence of related party transactions and verifying appropriate disclosure in the financial ststements. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misslatemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions flected in the financial slalements, as we will be less likely lo become aware of instances of non-complian. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.fre.or .ukIauditorsS onsibilities. This description forms part of our Auditors, Report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's members those mallers we are required lo stale to them in an Auditors, Report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and Ils members, as a body, for our audit work, for this report, or for the opinions we have formed. Hazra Patel (Senior Statutory Auditor) for and on behalf of Lubbock Fine LLP Chartered Accounlanls & Slatulory Auditors Palernosler House 65 St Paul's Churchyard London EC4M 8AB 30 september 2024 Dale". Page11
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income from- Donab"ons and legacies Investments 25,000 1,250,000 157 1,275.000 157 850,000 Total income 25,000 1,250,157 1,275,157 850,000 Expendlture on: Charitable activities 30,972 458,490 489,462 587,956 Total expenditure 30,972 458,490 489,462 587,956 Net lexpenditurellincome Transfers between funds 15,9721 5,972 791,667 15,9721 785,695 262,044 15 Net movement in funds before other reeognised gainslllosses) 785,695 785,695 262,044 Other recognised gainslllossesl: Losses on revaluab'on of fixed assets 126,9831 126,9831 123,4631 Net movement in funds 758,712 758,712 238,581 Reconciliation of funds: Total funds brought forward Nel movement in funds 5,595,484 758,712 5,595,484 758,712 5,356,903 238,581 Total fvnds carried forward 6,354.196 6,354.196 5,595.484 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 15 to 27 fomi part of these financial stalemenls. Page 12
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) REGISTERED NUMBER: 06792434 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2023 2022 2022 Note Fixed assets Investment property Current assets 6,300,000 5,700,000 Debtors Cash at bank and in hand 12 125,707 190,755 330,487 330,487 316,462 Creditors.. amounts falling due within one year 13 1271,2911 1244,3121 Net eurrent assets 59,196 72,150 Creditors.. amounts falling due after more than one year 14 15,0001 1176,6661 Total net assets 6,354,196 5,595,484 Charity funds Restricted funds UnStrICted funds 15 15 6,354,196 5,595,484 Total funds 6,354,196 5,595,484 The financial statements have been prepared In accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. V,ILY Madhavi Vadera ITrusteel 30 september 2024 Dale.. The notes on pages 15 to 27 fomi part of these financial stalemenls. Page 13
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Cash flows from operatlng actlvltles Nel cash provided by operating activities 710,491 699,129 Cash flows from investing activities Investment property refurbishment costs 1570,7591 1522,9461 Net cash used in investing activities 1570,7591 1522,9461 Change in cash and cash equivalents in the year Cash and eash equivalents at the beginning of the year 139,732 176,183 190,755 14,572 Cash and cash equivalents at the end of the year 330,487 190,755 The notes on pages 15 to 27 fomi part of these financial statements Page 14
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General information Lifelines International Fund for Education Ltd is a charitable company limited by guranlee 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 lo the nearest pound 1£). Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in aceordanee with the Charities SORP IFRS 1021 Aceounling and Reporting by Charities." Statement of Recommended Practice applie8ble to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Lifelines International Fund for Education Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities a initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy. 2.2 Company status The Charitsble company is a company limited by guarantee. In the event of the Charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charitable company. 2.3 Going concern The accounts have been prepared under the going concern basis, which assumes that current and future sources of funding will be adequate for the Charitable Company's needs. The Charitable Company Meets its running costs from donation income. The nature of the Charitsble company's operations is such, that there can be unpredictable variations in the timing and amount of cash inflows. The Trustees continuously review the funding prospects and expenditure levels and take action to reduce expenditure should funding expectations and reserves appear inadequate. On the basis of this policy, the Board consider that the Charitsble company will continue in operational existence for the foreseeable future. 2.4 Income All income is recognised once the Charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations are recognised as income when pledged or if no pledge has been made then on reipt. Where a donor specifies a lime period in which the donation can be used, donation income is recognised in that period. Donations received with imposed reslriclions are classified as reslricled funds. 2.5 Interest recelvable Interest on funds held on deposit is included when re1vable and the amount can be measured reliably by the Charitable company., this is normally upon nolificalion of the interest paid or payable by the bank. Page 15
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinuedl 2.6 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit to a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs allribulable to a single activity are allocated direcuy to that activity. Shared costs which contribute lo 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 directly In support of expenditure on the objects of the Charitable 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 expenditure when the conditions attaching are fulfilled. Grants offered subject lo conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.7 Investment Property Investment propety is carried at fair value determined annually by the trustees and derived from the current market rents and investment property 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 Financial Activities. 2.8 Debtors Trade and other debtors are recognised at the selllemenl 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 includes cash and short-lerm highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.10 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the Charitable company anticipates it will pay lo settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Page 16
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Icontinuedl 2.11 Corporation Tax Due lo the charitable nature of the activlies undertaken, the Charitable company's surpluses are not subject lo corporation tax. 2.12 Financial instruments The Charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial Instruments. Basic financial instruments are initially recognised al transaction value and subsequenuy measured at their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.13 Fund accounting General funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charitable company and which have not been designated 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 designated fund Is sel out in the notes to the financial slatemenls. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial stslemenls. Investment income, gains and losses are allocated to the appropriate fund. Income from donations and legacies Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Donations 25.000 1,250,000 1,275.000 Unrestricted funds 2022 Total funds 2022 Donations 850,000 850,000 Page 17
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investment income Unrestricted funds 2023 Total funds 2023 Total funds 2022 Bank interest 157 157 Analysis of expenditure on charitsble activities Summary by fund type Restricted Unre¥tri¢ted funds funds 2023 2023 Total 2023 Charitable activity 30,972 458,490 489,462 Restricted Unrestrieted funds funds 2022 2022 Total 2022 Charitable activity 23.954 564,002 587.956 Analysis of expenditure by activities Activities undertaken directly 2023 Grant funding of activities 2023 Support costs 2023 Total funds 2023 Charitable activity 30,972 368,150 90,340 489,462 Page 18
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Icontinuedl Activities undertaken directly 2022 Grant funding of activities 2022 Support costs 2022 Total funds 2022 Charitable activity 23,954 523,312 40,690 587,956 Analysis of direct costs Unrestricted funds 2023 Total funds 2023 Total funds 2022 Awareness Event 30,972 30,972 23,954 Analysis of support costs Total funds 2023 Total funds 2022 Staff costs Accountancy fees Audit fees Igovernancel Other support costs Insurance Brand strategy, website development and other professional fees Rates and Utilities 48,095 480 10,000 646 3,844 10,102 10,288 6,921 1361 10,355 9,600 5,672 1,460 5,147 7,234 166 Travel Fundraising costs 216 90,340 40,690 Page 19
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of grants Grants to Grants to Institutions Individuals 2023 2023 Total funds 2023 Grants 334,930 33,220 368,150 Grants to individuals totalling £33,220 were made lo cover student course fees and rent costs. Grants to Grants to Institutions Individuals 2022 2022 Totsl funds 2022 Grants 498,752 24,560 523,312 The Ch8ri18ble eompany has made the following material grants to institutions during the year". 2023 2022 Name of institution Crisis Pan Inlercullural Arts - Amies Choir Project Pan Inlercullural Arts - Papillon Project Pan Inlercullural Arts - Fortune and Amies Project Future Leaders Programme Quest for Learning The Happy Baby Community Future Living Hertford CHUMS Migrant Help Other grants to institutions 19,148 31,432 41,159 23,034 34,282 51,670 375,000 120,180 42,497 10,493 45,000 15,000 1,987 22,800 334,930 498,752 Page 20
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Auditors. remuneration 2023 2022 Fees payable lo the Ch8ri18ble company's auditor for the audit of the Charitable company's annual accounts 10,000 9,600 Staff costs 2023 2022 Wages and salaries Social security costs 45,600 2,495 10,000 355 48,095 10,355 The average number of persons employed by the Charitsble company during the year was as follows.. 2023 2022 Administrative employees No employee received remuneration amounting to more than £60,000 in either year. 10. Trustees. remuneration and expenses During the year, no Trustees, who are also considered lo be the Key Management Personnel, received any mUNeratIOn or other benefits12022 - £NILI. During the year ended 31 December 2023, no Trustee expenses have been incurred12022 - £NILI. Page 21
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. Investment property Freehold investment property Valuation At 1 January 2023 Additions 5,700,000 626,983 126,9831 Loss on revaluation At 31 December 2023 6,300,000 The investment property was revalued al 31 December 2023 by the Trustees on an open market basis. 12. Debtors 2023 2022 Due within one year Prepayments and accrued income 125,707 125.707 13. Creditors: Amounts falling due within one year 2023 2022 Trade creditors Other creditors Accruals and deferred income Grants payable Individuals Grants payable- Institutions 6,666 1,531 106,115 1,714 66,671 4,715 198,191 130,000 271,291 244,312 14. Creditors: Amounts falling due after more than one year 2023 2022 Grants payable- Institutions 5,000 176,666 Page 22
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement offunds statement of funds - current year Balance at 31 Gainsl December {Lossesl 2023 Balance at 1 January 2023 Transfers inlout Income Expenditure Unrestricted funds Designated funds Investment propety fund 5,700,000 626,983 126,9831 6,300,000 General funds General Funds 1104,5161 1,250,157 1458,4901 1632,9551 54,196 Total Unrestrieted funds 5,595,484 1,250,157 1458,4901 15,9721 126,9831 6,354,196 Restricted funds Awareness event 25,000 130,9721 5,972 Total of funds 5,595,484 1,275,157 1489,4621 126,9831 6,354,196 Page 23
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement of funds Icontinuedl statement of funds - prior year Balance at 31 Gainsl December {Lossesl 2022 Balance at 1 January 2022 Transfers inlout Income Expenditure Unrestricted funds Designated funds Investment propety fund 5,100,000 623,463 123,4631 5,700,000 General funds General Funds 181,637 850,000 1564,0021 1572,1511 1104,5161 Total Unrestrieted funds 5,281,637 850,000 1564,0021 51,312 123,4631 5,595,484 Restrlcted funds Propety purchase and refurbishment Awareness event 65,266 165,2661 10,000 {23,9541 13,954 75,266 (23,9541 151,3121 Total of funds 5,356,903 850,000 1587,9561 123,4631 5,595,484 Page 24
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement of funds Icontinuedl Restricted funds The property purchase and refurbishment reslricled fund relates to donations received towards the purchase and refvrbishment of the investment property. The awareness event restricted fund relates lo donations received lo cover the costs of a charitable event. Designated funds The investment property designated fund represents the value of the charity's investment propety which Is principally held for inwme generation to further the charity's objectives. Transfer of funds Restrictions placed on certain restricted funds were satisfied during the year resulting in a transfer of £nil 12022 - £65,2661 from restricted lo general funds. A transfer tolalling £5,97212022 - £13,954) was made from general funds to reslricled funds lo cover the cost of the overspend on the restricted awareness event. A transfer lotalling £626,983 12022 £623,463) was made from general funds to the designated Investment property fund to represent the costs that were capitslised in the year in relation to the refurbishment of the property. 16. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Totsl funds 2023 Investment propety Current assets Creditors due within one year Creditors due in more than one year 6,300,000 330,487 1271,2911 15,0001 6,300,000 330,487 1271,2911 15,0001 Total 6,354,196 6,354,196 Page 25
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Analysis of net assets between funds Icontinuedl Analysis of net assets between funds - prior year Unrestricted funds 2022 Total funds 2022 Investment property Current assets Creditors due within one year Creditors due in more than one year 5,700,000 5,700,000 316,462 316,462 1244,3121 1244,3121 1176,6661 1176,6661 Total 5,595,484 5,595,484 17. Related party transactions During the year, the charity was awarded donations lotslling £1,250,00012022 £850,000) by Neluml)o Stiftung, a charitsble foundation which is a member of the charity. The Iruslees of Lifelines International Fund for Education are not beneficiaries of Nelumbo Sliftung. There were no attached conditions which would, or might, oquire the charity lo alter significantly the nature of ils existing activities. At the year end an amount of £nil12022 £125,000) was due from Nelumbo Sliftung lo the charity in respect of pledged donations. During the year, the charity was awarded restricted donab'ons tolalling £25,00012022 - £nill by Fll Limited, a company in which Iruslees Madhavi Vadera and Rupin Vadera are directors. The donation was for the funding of the Charity awareness event. An amount of £95,63812022 - £4,877) was paid on behalf of the Charity by Fll Limited in respect of various charitable expenditure. At the year end, an amount of £10,00012022 - £15,000) is due to Migrant Help, a Charity in which trustee Madhavi Vadera is also a trustee. During the year grants of £nil12022 - £15,000) were awarded lo Migrant Help. 18. Reconciliation of net movement in funds to net cash flow from operating activities 2023 2022 Nel income for the year las per Statement of Financial Activiliesl 785,695 262,044 Adjustments for: Decrease in debtors IDecreasellincrease in creditors 125,708 1200,9121 135,753 301,332 Net cash provided by operating activities 710,491 699,129 Page 26
LIFELINES INTERNATIONAL FUND FOR EDUCATION LTD A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. Analysis of cash and cash equivalents 2023 2022 Cash in hand 330,487 190,755 Total cash and cash equivalents 330,487 190,755 20. Analysis of changes in net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand 190,754 139,733 330,487 21. Capltsl commltments 2023 2022 Contracted for but not provided in these financial ststements Refurbishment of investment property 270,963 Page 27