DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD **Charity registration number 1151955** **Company registration number 08322153 (England and Wales)** ## **PRIME EDUCATION FOUNDATION** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Mr Z Ahmed Mrs S Ahmed Mr MU Javed **Charity number** 1151955 **Company number** 08322153 **Independent examiner** Cottons Accountants LLP 231 Shoreditch High Street Lower Ground Floor London UK E1 6PJ DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). ## **Objectives and activities** The principal objective of the charity is to advance education by the provision of courses and tuition to adults and children and the encouragement of pupils to raise aspirations in addition to academic support. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** ## **Financial review** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. ## **Structure, governance and management** The charity is a company limited by guarantee. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr Z Ahmed Mrs S Ahmed Mr MU Javed The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU). The company's current policy concerning the payment of trade creditors is to: - settle the terms of payment with suppliers when agreeing the terms of each transaction; - ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and - pay in accordance with the company's contractual and other legal obligations. Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year. The trustees' report was approved by the Board of Trustees. .............................. Mr Z Ahmed **Trustee** 07-Mar-23 Date: ............................................. .............................. Mrs S Ahmed **Trustee** - 1 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRIME EDUCATION FOUNDATION** I report to the trustees on my examination of the financial statements of Prime Education Foundation (the charity) for the year ended 31 March 2022. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **Cottons Accountants LLP** 231 Shoreditch High Street Lower Ground Floor London E1 6PJ UK 07-Mar-23 Dated: ......................... - 2 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |||**Unrestricted **|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2022**|**2021**| ||**Notes**|**£**|**£**| |**Income from:**|||| |Other trading activities||439,152|381,701| |**Expenditure on:**|||| |Raising funds||122,849|99,810| |**Total expenditure**||122,849|99,810| |**Net income for the year/**|||| |**Net movement in funds**||316,303|281,891| |Fund balances at 1 April 2021||210,033|198,548| |**Fund balances at 31 March 2022**||151,550|210,033| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 3 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**2022**
**Notes**
**£**
**Fixed assets**
Tangible assets
**5**
**Current assets**
Debtors
**6**
192,972
Cash at bank and in hand
95,467
288,439
**Creditors: amounts falling due within**
**one year**
**8**
(140,495)
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2021**
**£**
**£**
3,606
193,866
149,363
343,229
(136,478)
147,944
151,550
151,550
151,550|**£**
3,282
206,751| |---|---|---| |||210,033| |||210,033| |||210,033| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 07-Mar-23 The financial statements were approved by the Trustees on ......................... .............................. Mr Z Ahmed **Trustee** ## **Company registration number 08322153** - 4 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** Prime Education Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is . ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 5 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it 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 attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Plant and equipment 20% Straight Line basis Fixtures and fittings 25% Straight Line basis The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 6 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.10 Taxation** The charity is exempt from corporation tax on its charitable activities. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. - 7 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **4 Employees** The average monthly number of employees during the year was: ||**2022**|**2021**| |---|---|---| ||**Number**|**Number**| |Total|-|-| |**Employment costs**|**2022**|**2021**| ||**£**|**£**| |Wages and salaries|(244,343)|(195,347)| |Social security costs|(8,058)|1,469| |Other pension costs|464|151| ||(249,408)|(184,590)| There were no employees whose annual remuneration was more than £60,000. ## **5 Tangible fixed assets** |**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 April 2021
9,379
2,957
Additions
324
-
At 31 March 2022
9,703
2,957
**Depreciation and impairment**
At 1 April 2021
6,097
2,957
At 31 March 2022
6,097
2,957
**Carrying amount**
At 31 March 2022
3,606
-
At 31 March 2021
3,282
-|**Total**
**£**
12,336
324| |---|---| ||12,660| ||9,054| ||9,054| ||3,606| ||3,282| Investment properties rented to another group entity have been accounted for using the cost model. The carrying value of these investment properties included within tangible fixed assets is £XXXX (2021 - £XXXX). - 8 - DocuSign Envelope ID: 5A0B4E15-3839-4950-8B67-84243BCE7AFD ## **PRIME EDUCATION FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**6**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
**7**
**Loans and overdrafts**
Bank loans
Payable within one year
**8**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**7**
Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
155,500
37,472
192,972
**2022**
**£**
-
-
**2022**
**£**
-
(287)
72,644
68,138
140,495|**2021**
**£**
155,500
38,366
193,866
**2021**
**£**
50,000
50,000
**2021**
**£**
50,000
(287)
18,627
68,138
136,478| |---|---|---| - 9 -