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2020-08-31-accounts

Company No. 08586329 Charity No. 1153976

Azbuka Foundation

Report and Accounts For the year ended 31 August 2020

Studland Hall Studland Street Hammersmith London W6 0JS

Azbuka Foundation

Directors' Report

For the year ended 31 August 2020

The directors present their report and accounts of the charity for the year ended 31 August 2020. This report also represents the trustees’ report required under the Charities Act 2011.

The directors have had due regard to guidance published by the Charity Commission.

LEGAL AND ADMINISTRATIVE INFORMATION

Charity name: Azbuka Foundation Charity registration number: 1153976 Company registration number 08586329

Registered office and operations address Studland Hall, Studland Street, Hammersmith, London W6 0JS

Directors (Trustees)

The directors who were in office during the year and up to the date of this report are:

Maria Gavrilova Andrew Jack Charmian Kenner Svetlana Malinina Jason Manning Irina Khabibulina (appointed 4 June 2020)

Taisiya Chinina-Kelly was a trustee until January 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The organisation is a charitable company limited by guarantee, incorporated on 26 June 2013. The company was established under a Memorandum of Association. The Articles of Association explain the objects and powers of the charitable company and how it should be governed. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Directors

The directors of the company are also charity trustees for the purposes of charity law. New trustees are appointed by the members of the charity. Trustee meetings are held 4 to 5 times a year.

OBJECTS OF THE CHARITY

The objects of the charity are:

The advancement of education for the public benefit in particular by:

Such other exclusively charitable purposes as the Trustees of the Charity may in their absolute discretion determine.

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Azbuka Foundation

Directors' Report

For the year ended 31 August 2020

ACTIVITIES and ACHIEVEMENTS

In planning the activities for the year, the trustees have had due regard to Charity Commission guidance on public benefit. The activities carried out include the following:

FINANCIAL REVIEW AND RESERVES POLICY

The charity incurred a net surplus for the year of £59,172 compared to a deficit of £31,842 in the previous year. There is a deficiency of unrestricted funds carried forward at the year end amounting to £14,352 compared to a deficiency of £73,524 at the previous year end. Please refer to Note 1 of the accounts for more information regarding the going concern status of the charity.

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Approved by the Board on …………………………………... and signed on its behalf by:

Maria Gavrilova Director

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Independent Examiner's report to the trustees of Azbuka Foundation

I report on the accounts of the company for the year ended 31 August 2020 set out on pages 4 to 8.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

have not been met.

Please refer to Note 1 regarding the going concern status of the charity.

………………………………………………………………..

HARRY NICOLAOU FCA Of Harry Nicolaou &Co Limited Chartered Accountants 21 Brendon Way Enfield EN1 2LF

………………………………………………..

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Azbuka Foundation

Statement of Financial Activities (including Income and Expenditure Account)

For the Year Ended 31 August 2020

Note
INCOME from:
School fees before bursaries
Bursaries
Early Education funding
Other income
Total income
EXPENDITURE on:
Charitable activities
Staff costs
2
Printing
Rent and rates
Light and heat
School resources and expenses
Refurbishment and building costs
Repairs and maintenance
Telephone and internet
IT expenses
Insurance
Bank charges
Cleaning and other expenses
Bookkeeping
Marketing expenses
Legal and consultancy fees
Depreciation
Governance cost: independent examination
Total expenditure
3
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward - deficiency
Donations and grants
Charitable activities:
Net income/(expenditure) and net movement in
funds.		 Total funds
Unrestricted
2020
£
90,229
290,519
(19,562)
65,320
39,537
466,043
271,930
1,158
86,764
2,157
22,264
-
1,763
1,192
4,039
1,231
131
4,691
2,796
200
3,034
721
2,800
406,871
59,172
(73,524)
(14,352)		 Total funds
Unrestricted
2019
£
66,062
299,142
-
-
-
365,204
229,421
740
96,201
-
21,574
34,207
-
1,025
3,908
983
108
4,050
-
700
1,368
761
2,000
397,046
(31,842)
(41,682)
(73,524)

Net expenditure is also net expenditure for Companies Act purposes.

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Company No. 1509049

Azbuka Foundation

Balance Sheet

As at 31 August 2020
Note
Fixed assets
Tangible assets
6
Current assets
Debtors
7
Cash at bank and in hand
Total current assets
Creditors falling due within one year
8
Net current assets
Total assets less current liabilities
Creditors falling due after more than one year
9
Net liabilities
Funds
Unrestricted general funds
Total funds - deficiency		 2020
£
2,162
2,162
32,813
79,636
112,449
(42,208)
70,241
72,403
(86,755)
(14,352)
(14,352)
(14,352)		 2019
£
2,281
2,281
23,187
2,841
26,028
(15,078)
10,950
13,231
(86,755)
(73,524)
(73,524)
(73,524)

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime.

Approved by the directors on ……………………....…………………..

And signed on their behalf by:

………………….……..………..…...

Maria Gavrilova Director

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Azbuka Foundation

Notes to the Accounts

For the Year Ended 31 August 2020

1. Accounting policies

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Although the charity has a deficiency of assets £14,352 this is much reduced from the previous year's deficiency of £73,524. Maria Gavrilova (a trustee) is willing to continue to provide financial support to the charity if needed. The significant restructuring of the activities of the charity that has taken place has had a positive impact on the the results of the charity (even in these difficult times of restrictions due to the pandemic) and will continue to do so. Because of these factors, the accounts have been prepared on a going concern basis.

The charity constitutes a public benefit entity as defined by FRS 102.

Income recognition

All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that a settlement will be required and the amount of the obligation can be measured reliably.

Fund accounting

Restricted funds are incoming resources, which are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are grants, donations and other incoming resources receivable for the objects of the charity without further specified purpose and are available as general funds.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost of each asset less its estimated residual value, over the useful economic life of that asset as follows:

Office furniture and equipment

25% reducing balance

Debtors

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

Creditors

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

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Commitments

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.

Pensions

The costs of the workplace defined contribution arrangements are charged to the SOFA as incurred.

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Azbuka Foundation

Notes to the Accounts

For the Year Ended 31 August 2020

2. Staff costs

Salaries and wages
Social security costs
Pension costs
Payroll processing costs
Recruitment costs
Other staffing costs
Training costs
Total staff costs
3.
Net income/(expenditure) for the year
This is stated after charging:
Independent Examiners fee
Depreciation		 2020
£
211,235
14,713
3,750
1,586
9,950
30,285
411
271,930
2020
£
2,800
721		 2019
£
229,421
2019
£
2,000
761

4. Trustees

No remuneration was paid to the trustees and no expenses were reimbursed to them during the year.

5. Taxation

The charitable company is exempt from corporation tax on its charitable activities.

6. Tangible fixed assets

7.

Cost
At 1 September 2019
Additions
Depreciation
At 1 September 2019
Charge for the year
Net book value
Debtors
Trade debtors
Other debtors
At 31 August 2020
At 31 August 2019
At 31 August 2020
At 31 August 2020		 £
5,065
602
5,667
2,784
721
3,505
2,162
2,281
2020
£
1,219
31,594
32,813
Furniture &
office
equipment		 £
5,065
602
Total
5,667
2,784
721
3,505
2,162
2,281
2019
£
-
23,187
23,187

Other debtors of £23,187 fall due after more than one year

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Azbuka Foundation

Notes to the Accounts

For the Year Ended 31 August 2020

8. Creditors falling due within one year

Creditors falling due within one year
Trade creditors
Taxation and social security
Other creditors and accruals
Creditors falling due after more than one year
Loan (see note 9)		 2020
£
17,339
4,827
20,042
42,208
2020
£
86,755		 2019
£
-
-
15,078
15,078
2019
£
86,755

9. Creditors falling due after more than one year

10. Related party transactions

The loan referred to in Note 8 of £86,755 is due to Maria Gavrilova, a trusee of the charity.

During the year a trustee (Svetlana Malinina) has provided dance lessons to pupils of the charity at rates well below market rates.

11. Operating lease commitments

The total of future minimum lease payments under a non-cancellable operating lease at 31 August 2020 is as follows:

Not later than one year
Later than one year and not later than five years
Later than five years		 2020
£
100,884
403,536
807,072
1,311,492		 2019
£
92,478
369,912
832,302
1,294,692

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