## **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:
- 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
1
## **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:
- Negotiating and planning for school expansion and funding
- [Pre-school: recruiting a new manager and revising the curriculum ]
- Russian-Ukrainian war. Addressing the impacts of the conflict on the children and families of the school (cnt)
- Planning a new initiative for the Ukrainian refugees funded by the Garfield Foundation
- Developing the bilingual curriculum and revising bilingual education planning system
- Enhancing creative and artistic side of the programme
- New clubs for children
- New training monitoring system
- Azbuka Recruitment and employment policy and PSHE (inc RSHE) curriculum in place and updated in line with the latest KCSIE 22)
- Subletting premises – new agreements and tenants
- Preparing for the ISI Inspection
- ISI Inspection passed
- New monitoring Safeguarding and Health and Safety system and Risk Assessments in place
- Cooperation with other schools. BEA events and cooperation
- New financial planning - re to upcoming introduction of VAT and business rates for independent providers
- BEA VAT Campaign initiated
- New marketing and website contractor
- Cooperation with parents on new fundraising initiatives
- 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
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 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:
- 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.
## **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
………………………………………………..
3
## **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.
4
**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
5
## **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_|
31
## **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.
7
## **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
8
## **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_|
9