**COMPANY REGISTRATION NUMBER: 12270706 CHARITY REGISTRATION NUMBER: 1189747** ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Unaudited Financial Statements** # **31 October 2021** |**Contents**|**Page**| |---|---| |Officers and professional advisers|**1**| |Trustees' report|**2**| |���������������������������|**3**| |Statement of Financial Activities|**4**| |Statement of Financial Position|**6**| |Notes to the Financial Statements|**8**| ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Officers and Professional Advisers** |**The board of directors**|Mostafa Abdi| |---|---| ||William Bagnall| |**The board of trustees**|Mostafa Abdi| ||William Bagnall| ||Richard Wilkins| |**Registered office**|Westworks Building 195 Wood Lane| ||White City| ||The Rotunda| ||London| ||England| ||W12 7FQ| 1 HQI Foundation Company Llmlted by Guarantee Trustees. report Period from 01 November 2020 to 31 October 2021 The trustees of ￿ company presert their report arvj statements of the cornpany for the year ended 31 Octob&r2021. These finanaal State1￿ been prepar￿ in the provisi￿S applicable to companies subject to the small cornpanies. regime and tn accordan￿ wth the Charities Act 2011. Section 1A of FRS 102 The Financaal Rep)rting Stand¥d applicable in the UK and Republic of Ireland, d the charibes Slalemenl of Recommended Prathce. Princlpal actSvStles The prinupal acw of the company durirYJ tr￿ year was of a research and devdopment residerKy programme al￿ asscoated arts sludTr) fac41iknes arKI musical wtisls. Twstees. reSp)n￿bIl￿19S. The trustees aCknr￿edge that memters have not requiffjd the ¢ompary to oblain an audrt of its financi￿ stslements for the peric¥J in qlwtion in xwdance with se¢tion 476 of the Companies Act 20(E'. The trustees aCkn(￿edge th*r respMStbil￿es for o)mFtying the ￿Uirements ofthe Act respect to accounting r￿[d$ and the preparation of financial statements. Dlr8ctoYs and tntstees Th9 tr[￿1$85 8nd officers setved duriNJ the period were as fdltrws: Mostafa Abji - Dire¢ioraThJ Tnste& Iliam Ba9nall - Director and Tntstee Richard Wlkins - Trustee Small company provlslons This report has been prepared in a¢￿d￿￿1th ts pro￿￿￿$ applkable to ojmpanies entthd lothe small cc#npanies exempt1￿1. 31. 10.2 This rewl vras approved by the toard of trLL£tees on .......................................................... signed on half of the board ty. Mostala Trus Registered office: We5tsvorks Building 195 Wc#>J Lan& )f£e City The Rotunda Lond Englar¥J W12 7FQ Scanned with Camscanner ## **HQI FOUNDATION** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF HQI FOUNDATION** I report to the Trustees on my examination of the financial statements of HQI FOUNDATION (the charity) for the year ended 31 October 2021. ## **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 ������������������������������������������������������������������������������� ct 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** I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies listed in section 145 of the 2011 Act. 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. ## **D Bathmanathan** ## **Member of Association of Chartered Certified Accountants** ## **Kaiser Nouman Nathan LLP** Unit D, 17 Plumbers Row London E1 1EQ Dated: 31 October 2022 **3** ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Statement of Financial Activities** ## **Period from 01 November 2020 to 31 October 2021** |||**Unrestricted**|
**Restricted**|
**Total**|
**Unrestricted**|**Restricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---|---|---| |||**Funds**|
**Funds**|**Funds**|
**Funds**|**Funds**||**Funds**| |||**Period from**|
**Period from**|
**Period from**|
**Period from**|**Period from**||**Period from**| |||**01 Nov 20 to**|
**01 Nov 20 to**|
**01 Nov 20 to**|
**18 Oct 19 to**|**18 Oct 19**|**to**|**18 Oct 19 to**| |||**31 Oct 21**|
**31 Oct 21**|
**31 Oct 21**|**31 Oct 20**|**31 Oct 20**||**31 Oct 20**| ||**Note**|
**£**|**£**|
**£**|**£**|**£**||**£**| |**Income from :**||||||||| |Charitable Activities|**5**|5,000|40,070|45,070||||| |Other Trading Activities|**6**|200||200|5,000||-|5,000| |||-----------------------|----------------------------|-----------------------|-----------------------|----------------------------||-----------------------| |**Total income**||**5,200**|**40,070**|**45,270**|**5,000**||**-**|**5,000**| |||----------------------------|--------------|--------------|----------------------------|--------------||--------------| |||�|�|�|�|�||�| |**Expenditure on :**||||||||| |Charitable Activities|**7**|(35,781)|
(23,057)|
(58,838)|
-||-|-| |Other Trading Activities||-|-|-|(4,240)||�|(4,240)| |||**(35,781)**|
**(23,057)**|
**(58,838)**|
**(4,240)**||**�**|**(4,240)**| |||-----------------------|----------------------------|-----------------------|-----------------------|----------------------------||-----------------------| |**Operating Income / (expenditure)**||**(30,581)**|
**17,013**|**(13,568)**|
**760**||**-**|**760**| 4 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Statement of Financial Activities** ## **Period from 01 November 2020 to 31 October 2021** ||**Unrestricted**|
**Restricted**|
**Total**|
**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**Funds**|**Funds**|**Funds**|**Funds**|**Funds**|**Funds**| ||**Period from**|
**Period from**|
**Period from**|
**Period from**|**Period from**|**Period from**| ||**01 Nov 20 to**|
**01 Nov 20 to**|**01 Nov 20 to**|**18 Oct 19 to**|**18 Oct 19 to**|**18 Oct 19 to**| ||**31 Oct 21**|**31 Oct 21**|**31 Oct 21**|**31 Oct 20**|**31 Oct 20**|**31 Oct 20**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Other interest receivable and similar income|-|-|-|100|-|100| ||----------------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------| |**Net income/(expenditure) and net movement in funds for the year**|**(30,581)**|**17,013**|**(13,568)**|**860**|**-**|**860**| |**Retained funds at the start of the period**|860|�|860|-|-|-| ||----------------------------|-----------------------|-----------------------|||| |**Retained funds at the end of the period**|**(29,721)**
============================|
**17,013**
=======================|**(12,708)**
=======================|**860**
=======================|**-**
=======================|**860**
=======================| The statement of financial activities includes all gains and losses recognised in the year. All the activities of the company are from continuing operations. 5 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Statement of Financial Position** ## **Period from 01 November 2020 to 31 October 2021** |||**31 Oct 21**|**31 Oct 20**| |---|---|---|---| ||**Note**|**£**|**£**| |**Fixed Assets**|||| |Tangible Assets|**8**|13,374|**-**| |**Current assets**|||| |Debtors|**9**|2,918|-| |Cash at bank and in hand||3,517|860| |||-----------------------|-----------------------| |||**6,435**|**860**| |Creditors|**10**|(32,517)|-| |||-----------------------|-----------------------| |**Net current assets/(liabilities)**||**(26,082)**|**860**| |||-----------------------|-----------------------| |**Total assets less current liabilities**||**(12,708)**|**860**| |||=======================|=======================| |**The funds of the charity:**|||| |Restricted funds|**11**|17,013|860| |Unrestricted funds||(29,721)|-| |||-----------------------|-----------------------| |**Total funds**||**(12,708)**
=======================|**860**
=======================| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The company has taken advantage of the exemption from audit available under section 477(2) of the Companies Act 2006 and the trustees confirm that: No member has required the company to obtain an audit of the account for the year in question in accordance with section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. 6 HQI Foundation Company Limited by Guarantee Statement of Financlal Posltlon 31 October 2021 These finanual statements %we aFvroved r)y thè twd of Injstees and a .. and are signed on t¢haif of the board tsy.. ori issue Mostafa Ab Tnjstee Company Wistrati￿ number. 12270706 Scanned with Camscanner ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Notes to the Financial Statements** ## **Period from 01 November 2020 to 31 October 2021** ## **1. General information** The company is a private company limited by guarantee, registered in England and Wales. The address of the registered office is Westworks Building 195 Wood Lane, White City, The Rotunda, London, W12 7FQ, England. HQI Foundation is the registered charity under the Charities Act of 2011 and registered number bearing 1189747. ## **2. Statement of compliance** The financial statements have been prepared in accordance 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) ". The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling, which is the functional currency of the charity. ## **3. Accounting policies** ## **Basis of preparation** The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. ## **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. ## **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. ## **Incoming resources** 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. 8 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Notes to the Financial Statements** ## **Period from 01 November 2020 to 31 October 2021** 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 from grants, trusts and foundations is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably. Grant income received in advance is deferred and released in the financial year to which it relates. ## **Resources expended** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. ## **Tangible assets** Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. ## **Depreciation** Depreciation is recognized in the Statement of Financial Activities on a Straight-Line Method over the estimated useful life of Property, Plant and Equipment items from the date that they were made available for use. Equipment - 33% Straight line basis Furniture and fittings - 33% Straight line basis ## **Financial instruments** A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. 9 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Notes to the Financial Statements** ## **Period from 01 November 2020 to 31 October 2021** ## **4. Company limited by guarantee** The company is limited by guarantee and does not have a share capital. Each member's guarantee is limited to £1. ## **5. Income from Charitable Activities** |||**2021**|**2020**| |---|---|---|---| |||**£**|**£**| ||Grant from Art Council England|40,070|-| ||Donation from Bazooka Search Ltd|5,000|| |||----------------------------|----------------------------| |||45,070|-| |||==============|==============| |**6.**|**Income from Other Trading Activities**||| |||**2021**|**2020**| |||**£**|**£**| ||Revenue from Garden centre|200|-| ||Income from Bazooka Search ltd|-|5,000| |||-----------------|--------------------| |||200|5,000| |||==============|==============| ## **7. Expenditure on Charitable Activities** ||**Unrestricted**|**Restricted**|**Total**|**Total**| |---|---|---|---|---| ||**Funds**|**Funds**|**Funds**|**Funds**| ||**2021**|**2021**|**2021**|**2020**| ||**£**|**£**|**£**|**£**| |Repairs & maintenance|5,003|3,426|8,429|-| |Repurpose cost|-|5,422|5,422|-| |General office expenses|414|5,115|5,529|-| |Business Entertainment|481|-|481|-| |Cleaning|160|-|160|-| |Consultancy|2,650|2,150|4,800|-| |Council tax|21|-|21|-| |Insurance|450|-|450|-| |Personal|450|-|450|-| |Professional Services|900|-|900|-| |Rent & Estate cost|20,491|6,945|27,435|-| |Storage|353|-|353|-| |Travel|117|-|117|-| |Bank Fees|1|-|1|-| |Marketing|201|-|201|-| |Depreciation|4,708|-|4,708|| |Postage|11|-|11|-| ||-----------------------|----------------------------|-----------------------|----------------------------| ||**35,781**|**23,057**|**58,838**|-| ||==============|==============|==============|==============| 10 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Notes to the Financial Statements** ## **Period from 01 November 2020 to 31 October 2021** |**8.**|**Tangible Fixed Assets**|||| |---|---|---|---|---| |||**Equipment**|**Furniture and**|| ||||**fittings**|**Total**| ||**Cost**|**£**|**£**|**£**| ||As at 1 November 2020|-|-|-| ||Additions during the year|15,283|2,169|17,452| |||-----------------------|----------------------------|----------------------------| ||As at 31 October 2021|**15,283**|**2,169**|**17,452**| ||**Depreciation**|||| ||As at 1 November 2020|-|-|-| ||Depreciation charged in the year|(3,760)|(318)|(4,078)| |||-----------------------|----------------------------|----------------------------| ||As at 31 October 2021|**(3,760)**|**(318)**|**(4,078)**| ||**Carrying Amount**|||| ||As at 31 October 2020|-|-|-| |||-----------------------|----------------------------|----------------------------| ||**As at 31 October 2021**|**11,523**|**1,851**|**13,374**| |||==============|==============|==============| |**9.**|**Debtors**|||| ||||**2021**|**2020**| ||||**£**|**£**| ||Grant receivable from Art Council England||2,918|-| ||||==============|==============| |**10.**|**Creditors**|||| ||||**2021**|**2020**| ||||**£**|**£**| ||Intercompany payable to Bazooka Search ltd||19,000|-| ||Intercompany payable to Secret technology ltd||7,847|-| ||Other Creditors and Accrual||5,670|-| ||||----------------------------|----------------------------| ||||32,517|-| ||||==============|==============| 11 ## **HQI Foundation** ## **Company Limited by Guarantee** ## **Notes to the Financial Statements** ## **Period from 01 November 2020 to 31 October 2021** ## **11. Restricted Funds** ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |Grant from Art Council England|40.071|-| |Repairs & maintenance|(3,426)|-| |Repurpose cost|(5,422)|-| |General office expenses|(5,115)|-| |Consultancy|(2,150)|-| |Rent & Estate cost|(6,945)|-| ||----------------------------|----------------------------| ||17,013|-| ||==============|==============| ## **12. Related Party Transactions** As at 31 October 2021 HQI Foundation owed a balance of £19,000 to Bazooka Search Limited. As at 31 October 2021 HQI Foundation owed a balance of £7,847 to Secret Technology Ltd as a grant received from Art Council England. Secret Technology Ltd is related party of HQI foundation. 12