## **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:
- the provision and conduct of a school or schools in England and Wales with bilingual Russian-English curriculum;
- the promotion of bilingual education;
- the provision of education materials or services, including promotion of Russian language, literature and culture; and
- such other means as the Trustees shall determine
Such other exclusively charitable purposes as the Trustees of the Charity may in their absolute discretion determine.
1
## **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:
- Negotiating premises expansion to ground floor from September 2020
- Redesigning 1[st] Floor to accommodate Year 5 from September 2020
- Finalising full membership of the ISA (Independent Schools Association)
- Completing move to the new IT system and school management software
- Updating Fire safety systems at new premises
- Opening Year 4 of full-time school (4 year groups, Nursery, Reception)
- Four full-time teachers (Rus and English) and 8 Nursery/Reception teachers
- Two part-time Teacher assistants
- Nursery manager
- Visiting teachers (dance, Circus, ICT,)
- Opening new School clubs (chess, art) and part-time after-school Azbuka club
- 24 students (Year 1/Year 2/Year 3/Year 4) and 30 Nursery/Reception children
- Progress /developing the Russian Peterson maths programme/curriculum at full ‐ time school
- Developing Nursery/Early years programme
- Developing the school bilingual assessment policies
- Working alongside AZBUKA Sat school in Kew
- New trustee (Irina Khabibulina) supporting the Committee fundraising efforts
- Events (open days, theatre productions and concerts for the wider community)
- Developing and expanding Azbuka website
- Covid Pandemic: developing the remote teaching programme and moving to online learning for Primary school children
- Nursery shut in the summer term 2020
- Furlough scheme in place for some Nursery teachers
- Developing and revising Safeguarding and Health and Safety measures during Covid
- Fundraising activities (see Minutes) – events/teacher productions
- Subletting premises – new agreements and tenants
- Secured 1 grant and 2 larger donations
- New Azbuka Fundraising presentation
- Looking for new trustees with fundraising experience
- New Projects for wider community outreach and cooperation with other schools, organisations and academic institutions in the area of MFL and bilingual education
## **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
2
## **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:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **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:
- (1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 386 of the Companies Act 2006; and
- to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
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.
6
## **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
7
## **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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