Company No. 08586329 Charity No. 1153976
Azbuka Foundation
Report and Accounts For the year ended 31 August 2023
Studland Hall Studland Street Hammersmith London W6 0JS
Azbuka Foundation
Directors' Report
For the year ended 31 August 2023
The directors present their report and accounts of the charity for the year ended 31 August 2023. 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 Vasiliki Lytra
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:
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the provision and conduct of a school or schools in England and Wales with bilingual Russian-English curriculum;
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the promotion of bilingual education;
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the provision of education materials or services, including promotion of Russian language, literature and culture; and
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such other means as the Trustees shall determine
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Azbuka Foundation
Directors' Report
For the year ended 31 August 2023
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 in the year include the following:
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Negotiating and planning for school expansion and funding
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[Pre-school: recruiting a new manager and revising the curriculum ]
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Russian-Ukrainian war. Addressing the impacts of the conflict on the children and families of the school (cnt)
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Planning a new initiative for the Ukrainian refugees funded by the Garfield Foundation
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Developing the bilingual curriculum and revising bilingual education planning system
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Enhancing creative and artistic side of the programme
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New clubs for children
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New training monitoring system
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Azbuka Recruitment and employment policy and PSHE (inc RSHE) curriculum in place and updated in line with the latest KCSIE 22)
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Subletting premises – new agreements and tenants
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Preparing for the ISI Inspection
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ISI Inspection passed
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New monitoring Safeguarding and Health and Safety system and Risk Assessments in place
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Cooperation with other schools. BEA events and cooperation
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New financial planning - re to upcoming introduction of VAT and business rates for independent providers
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BEA VAT Campaign initiated
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New marketing and website contractor
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Cooperation with parents on new fundraising initiatives
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Outreach activities to other education providers and organisations
FINANCIAL REVIEW AND RESERVES POLICY
The charity generated a net surplus for the year of £11,351 compared to a deficit of £43,206 in the previous year. There is a deficiency of unrestricted funds carried forward at the year end amounting to £107,732 compared to a deficiency of £119,083 at the previous year end. Please refer to Note 1 of the accounts for more information regarding the going concern status of the charity.
To address the deficit the trustees decided to increase student fees in 2 stages for the current students.
The first increase was implemented this (2022-23) academic year. The second increase from September 2023 (next academic year).
This strategy has proved to be successful in 2022-23 but there is still a long way to go in reducing the overall deficiency of unrestricted funds.
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 2023 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:
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examine the accounts under section 145 of the 2011 Act;
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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
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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:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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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.
Material uncertainty
The financial statements show a surplus of £11,351 compared to a deficit of £43,206 and this is a welcome turnaround. However there remains a deficiency of funds of £107,732 so there continues to be uncertainty as to whether the charity will be able to operate as a going concern for the foreseeable future. Paragraph two Note 1 of the accounts explains how the charity will remedy this situation.
The accounts have been prepared on a going concern basis which is appropriate having regard to the circumstances 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 2023
| Note INCOME from: Donations Government grants School fees Nursery fees Grant (LB H&F) Contributions from parents for activities and school meals Other income - Hall and space hire, bank interest etc Total income EXPENDITURE on: Charitable activities Staff costs 2 Printing Rent and rates School resources and expenses Repairs and maintenance Telephone and internet IT expenses Insurance Bank charges Cleaning and other expenses Bookkeeping Travelling and subsistence expenses Clothing costs Website 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 Charitable activities: Net income/(net expenditure) and net movement in funds. Bursaries Funded activity: Early Education |
Total funds Unrestricted 2023 £ 30,779 - 30,779 328,360 208,522 93,186 25,128 22,427 677,623 708,402 28,728 67,608 436,807 1,015 104,751 19,826 2,898 1,122 4,988 1,219 96 7,760 2,765 2,881 1,271 1,062 7,184 2,570 2,500 697,051 11,351 (119,083) (107,732) |
Total funds Unrestricted 2022 £ 32,086 96 |
|---|---|---|
| 32,182 288,321 200,278 76,678 - 29,496 |
||
| 594,773 | ||
| 626,955 | ||
| 10,666 70,931 439,988 1,284 96,173 15,146 2,689 1,049 3,732 2,462 153 6,372 3,654 4,113 649 308 5,216 2,676 2,900 |
||
| 670,161 | ||
| (43,206) (75,877) |
||
| (119,083) |
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 2023 | ||
|---|---|---|
| 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 liabilities Total assets less current liabilities Creditors falling due after more than one year 9 Net liabilities Funds Unrestricted general funds Total funds - deficiency |
2023 £ 7,709 7,709 35,045 55,394 90,439 (119,125) (28,686) (20,977) (86,755) (107,732) (107,732) (107,732) |
2022 £ 8,027 8,027 34,686 7,230 41,916 (82,271) (40,355) (32,328) (86,755) (119,083) (119,083) (119,083) |
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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Likewise Community
Statement of Cash Flows
As at 31 March 2023
| Cash flow from operating activities Net income/(deficit) for the year Depreciation of tangible fixed assets Decrease/(Increase) in debtors Increase/(decrease) in creditors Net cash flow from operating activities Cash flow from investing activities Payments to acquire tangible fixed assets Net cash flow from investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 April 2022 Cash and cash equivalents at 31 March 2023 |
2023 £ 11,351 2,570 (359) 36,854 50,416 (2,252) (2,252) 48,164 7,230 55,394 |
2022 £ (43,206) 2,676 (2,361) 14,082 |
|---|---|---|
| (28,809) | ||
| (5,844) | ||
| (5,844) | ||
| (34,653) 41,883 |
||
| 7,230 |
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Azbuka Foundation
Notes to the Accounts
For the Year Ended 31 August 2023
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.
In the context of the current difficult economic environment, including the Covid-19 pandemic, the Ukraine crisis and high inflation, the trustees recognise significant pressures on student numbers, costs and fund-raising. They have taken long-term measures to reduce the deficit reported this year and for 2020/21, including by raising fees more in line with other similar schools. 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 2023
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 |
2023 £ 334,491 26,991 7,337 1,448 3,103 61,853 1,584 436,807 2023 £ 2,500 2,570 |
2022 £ 348,303 29,190 7,130 1,745 644 52,976 - |
|---|---|---|
| 439,988 | ||
| 2022 £ 2,900 2,676 |
4. Trustees
No remuneration was paid to the trustees during the year in their capacity as trustees. Expenses of £309 were reimbursed to one trustee (2022 £nil) 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 2022 Additions Depreciation At 1 September 2022 Charge for the year Net book value Debtors Trade debtors Other debtors At 31 August 2023 At 31 August 2022 At 31 August 2023 At 31 August 2023 |
6,703 443 7,146 2,236 1,228 3,464 3,682 4,467 Fixtures and fittings |
£ 9,125 1,809 10,934 5,565 1,342 6,907 4,027 3,560 2023 £ 3,091 31,954 35,045 Furniture & office equipment |
£ 15,828 2,252 Total |
|---|---|---|---|
| 18,080 | |||
| 7,801 2,570 |
|||
| 10,371 | |||
| 7,709 | |||
| 8,027 | |||
| 2022 £ 1,256 33,430 |
|||
| 34,686 |
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 2023
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) |
2023 £ 14,348 7,491 97,286 119,125 2023 £ 86,755 |
2022 £ 22,315 8,611 51,345 |
| 82,271 | ||
| 2022 £ 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 Maria Gavrilova received remuneration as Principal of the school at well below market rates.
During the year Svetlana Malinina, a trustee 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 2023 is as follows:
| Not later than one year Later than one year and not later than five years Later than five years |
2023 £ 100,884 403,536 504,420 1,008,840 |
2022 £ 100,884 403,536 605,304 |
|---|---|---|
| 1,109,724 |
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