REGISTERED CHARITY NUMBER: 1015408 Report of the Trustees and Audited Financial Statements for the Year Ended 31st December 2023 for Edhi International Foundation (UK) S Syedain & Co Chartered Accountants & Statutory Auditors First Floor 87 Kenton Road Harrow Middlesex HA3 OAH
Edhi International Foundation (UK) Contents of the Financial Statements for the Year Ended 31st December 2023 Page Report of the Trustees Report of the Independen( Auditors 9 to 12 Statement of Financial Activities 13 Statement of Financial Position 14 to 15 Statement of Cash Flows 16 Notes to the Statement of Cash Flows l7 Notes to the Financial Statements 18 to 29 Detailed Statement of Financial Activities 30 to 31
Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 The trustees present their report 1th the financial statements of the charity for the year ended 31st December 2023. The trustees have adopted th¢ provisions of 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) (effective l January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims The overall aim of the charity is to help people in need without any prejudice of religion, caste, creed or political boundaries and to carry out the advancement of education, the advancement of religion, the relief of poverty and the promotion and the preservation of health. In furtherance of its objectives the charity may undertake, execute, manage or assist any charitable trusts which may lawfully be undertaken, executed, managed or assisted by the charity. As a result the charity has assisted in furthering the objectives of its connected Edhi charities in Pakistan where it has a few common trustees. The charities in Pakistan were set up by the late Abdul Satiar Edhi to provide food, shelter, medical care, to procure ambulance services on a voluntary basis to the needy, which fulfils the charity's objectives as well. The charitable activities have been mainly in Pakistan but the connected charities in Pakistan have assisted in humanitarian work in other parts of the world in the past as well. Furthennore, in furtherance of its objects the charity is pennitted to invest donations received that are not immediately required for charitable purposes as investments, securities or property as required. The Edhi charities in Pakistan are namely Abdul Sattar Edhi Foundation Pakistan, Bilquis Edhi Foundation Pakistan, and Edhi Welfare Centre Pakistan. Donors from UK are aware that the donations they are making will be used by the main charities in Pakistan to help achieve their objectives. Some of the donations collected by Edhi International Foundation UK are disseminated to the related charities in Pakistan, mainly to Abdul Saiiar Edhi Foundation in Pakistan over the last few years, where the funds had been used for charitable activities in line with Edhi Pakistan charities, constitutions and its constitution. However nol all the funds that had been collected during the year were used for immediate charitable activities and were instead deposited in UK bank accounts, as an emergency fund, to be used for future emergency or disaster relief where vast sums are immediately required in the relief process. The sums have been accumulating to date and some of the donations have been used during the most recent international disasters such as Covid pandemic and recent national disasters such as the Pakistsn floods in 2022 and the major earthquake in Turkey during 2023. Page I
Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 OBJECTIVES AND ACTIVITIES Significant activities The principal activity of Edhi International Foundation UK during the year under review continues to be to obtain donations from UK donors either to be used to assist charitable activities in the UK or to purchase equipment, ambulances and so forth to assist the main Edhi charities in Pakistan to cany out their various charitable activities. These include to relieve poverty, suffering, deprivation and distress throughout the world and to promote the preservation of health. The charity also collects donations from UK donors to assist them in fulfilling their religious obligation of slaughtering animals during religious events. This money is sent to Pakistan and the animals are slaughtered there.This is called Qurbani. During the year, the charity raised almost all of its money from public donations, which was encouraged by way of advertisement, and by dispatching leaflets and brochures by post to current and prospective donors. The advertising policy, programme for future activity, the investment policy and disbursement of funds are controlled and decided by the Trustees. They also maintain an internal control for collection of funds and safeguard against any risk involved in charitable activities. Public benefit In shaping the objectives for the year and planning the charity's activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'. It is the trustees, opinion that the operation of the charity in its present forn] is for the public benefit under the principles set out in the Charity Commission guidance. Page 2
Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st Deeember 2023 ACHIEVEMENT AND PERFORMANCE Charitable Donations During the year under review Edhi International Foundation UK spent £795,099 (2022:£1,701,194) for charitable activities. This includes £334,087 (2022: £379,652) in relation to 2023 Qurbani (sacrifice of animals for religious purposes) on behalf of UK donors and the remaining balance was used to purchase medical equipment, ambulances and other equipment to assist providing charitable activities to the needy, mainly to the people in Pakislan during the year.There were a few donations during the year that were specifically donated towards the purchase of ambulances to be used in Pakistan. The amount collected for the ambulances was £43,670. REVIEW OF DEVELOPMENTS, ACTIVITIES AND ACHIEVEMENT During the year under review, the charity had assisted the Edhi connected charities in Pakistan in continuing the objectives of helping the poor and needy primarily throughout Pakistan. The charity provides, as part of its charitable services, Qurbani service which is an animal sacrifice on behalf of Muslims as part of their religious obligations. The monies collected in the UK are used to purchase the animals in Pakistan in order to perfonn the religious ritual on behalf of the UK donors. During the year the charity had purchased and slaughtered 1,863 goals and 373 cows on behalf of UK donors. As part of the religious ritual part of the meat is distributed to the poor and as a result the meat from the animals had been used by 18 Edhi charitable homes throughout Pakistan, and also distributed to many palienis of governmental hospitals, prisons and other needy people in Pakistan. The skin/leather of sacrificed animals was sold, and monies collected were utilised for further Edhi charitable activities. The charity also assists yearly in the purchase of medical equipment. During the year donations from UK donors were used to purchase a whole body CT Scan and washing machines. There is also a hospital that has been set up in Pakistan so many of the rnedical equipments that were purchased have been used for the hospital. This hospital is mostly used to enable poor and deprived people to access medical assistance where they are unable to afford the medical system in Pakistan. During the year the main branch based on Romford Road also sold second hand clothes and other items that were donated to them where they are charged at a minimal amount. During Ramadan the charity distributed food boxes to the local Muslim community that were fasting. This was accepted favourably by the community and as a result the charity will continue with this food distribution on a yearly basis during Ramadan. The Edhi International Foundation UK has started a Legal Funding project in partnership with a rinn of solicitors in order to help with immigration related fees for the underprivileged who are ineligible for government funding and aid. This has proved to be successful and the aim is to continue this project. During the year the funding from Edhi assisted new 23 cases and to date 57 cases have been submitted. Page 3
Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 FINANCIAL REVIEW Financial position and Results During the year total donations received amounted to £5,732,620 (2022:£7,671,980) which had decreased from the previous year.This was mainly due to additional donations received last year for £1,174,582 which was as a result of fundraising for the Pakistan flood relief. Excluding the flood relief donations from last year's total donations, it appears that total donations have decreased by I l % as compared to last year. It is difficult to predict the level of donations that will be received each year even though Muslims are the main donors for the charity and charitable donations is always high amongst Muslims due to religious requirements. However due to the level of competition from other similar charities that are also targeting the same donors and the uncertainty of economic environment, donors are being cautious in the level of donations that are being made in addition to the high level of costs of living reducing the level of disposal income available to be donated to the charity. In addition, last year the charity realised that in order to increase its donations it would need to increase its expenditure on advertising and have seen the effect on the level of donations received as compared to previous years. Reserves policy Edhi Intemational Foundation UK'S operational cosls (excluding charitable donations and exchange gainsllosses) in the current year were approximately 6% (2022'.6%) of its total income and donations. As part of the risk management strategy, the trustees need to have sufficient unrestricted reserves to ensure stability in the event of reduced income or an emergency response. The trustees intend to maintain enough free reserves in unrestricted funds at a level that equates to approximately one year of unrestricted charitable core expenditure. The Charity holds unrestricted funds as reserve. The purpose of the Reserve Fund for Edhi International Foundation UK is to help ensure the long-tem ability of the organisation to meet its mission. The Edhi International Foundation UK will maintain the reserve to achieve the following objectives: a) To manage cash flow and maintain financial flexibility b) To enable the organisation to sustain operations through delays in payments of committed funding c) To enable the organization aci swiftly in case of any disaster or emergency worldwide for Humanitarian Relief. d) To fund the near future projects. Page 4
Edbi IDternational Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 FUTURE PLANS There are increasing demands for humanitarian operations in Pakistan and worldwide. The trustees are committed to continue raising money and to increase funds collected in ihe UK by providing inforniation about the wide range of Abdul Sattar Edhi Foundation's involvement in Pakistan, to general public and communities in the UK. The trustees are considering other ways they can provide assistance to the poor and needy in the UK as they have realised that there are many people in the UK that would benefit from their assistance. Their aim would be to enhance the name of the charity further in the UK. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. Charity constitution Edhi International Foundation UK is governed by its constitution, which was set up on 17 November 1992, and a supplemeniary deed daied October 2010. The trustees are in the process of updating their constitution and are hoping that this would be finalised soon. Appointment of Trustees The trustees are responsible for the administration and investment policy of the charity. Trustees are appointed and removed by the Board of Trustees. Induction training is given to the trustees on appointment and the guidelines provided by the Charity Commission as per The Essential Trustee publication are followed. New trustees would also receive training from an existing trustee about the charity and their responsibilities as a trustee and would receive a copy of the Charity Commission's guide for new trustees and the constitution of the Charity. On-going training is provided as required. Organisational structure In order for effective day to day running of the charity the board of trustees set up an executive committee which consists of the following truslees: Mr Faisal Edhi - Ms Kubra Edhi - Mrs Feroza Aka - Ms Maliha Khan - Mr Yousuf Abraham Mr Saad Edhi (appointed l December 2023 and resigned 28 June 2024) They have been given the powers of execution by the board of trustees and can enter into legal obligations, which will bind the charity. The power of appointing a new trustee of the charity is vested with the Board of Trustees. Page 5
Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management The Trustees have a duty to identify and review risks, which the charity is exposed to and to ensure that appropriate internal controls are in place to provide reasonable safeguard against fraud and human errors. The principal risks and uncertainties faced by the charity are as follows: i) Increase in competition where a growing number of charities are seeking funds from the same donors, li) Safeguarding assets against unauthorised use. iii) Compliance requirements with relevant laws and regulations. iv) Reputational risk where any bad publicity worldwide could have a detrimental impact on the level of future donations. The trustees have taken the following measures to mitigate some of these risks: The trustees liaise with the office manager, to supervise staff and daily procedures in the London office and to ensure that the charity is being run efficiently with effective safeguards, policies and controls in place to mitigate these risks. The trustees are in constant contact with the London office manager and supervise the progress and activities of the charity. The trustees make periodic visits to the London office to monitor all activities. The trustees have engaged professional advisors to advise in complying with related laws and regulations. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1015408 Principal address 803 Romford Road London E12 SAN Trustees Mr F Edhi Ms K Edhi Mrs F Aka Mr Y Abraham Ms M Khan Mr M S Edhi (appointed 1.12.23) (resigned 28.6.24) Page 6
Edhi IDternational Foundation (UK) Report of the Trustees for the Year Ended 31st December 2023 REFERENCE AND ADMINISTRATIVE DETAILS Auditors S Syedain & Co Chartered Accountants & Statutory Auditors First Floor 87 Kenton Road HaoW Middlesex HA3 OAH Bankers Lloyds Bank PIC 2 Silver Street Enfield ENI 3EN LEGAL STATUS Edhi International Foundation (UK) was registered as a Charity with The Charity Commissioners ror England and Wales on 26th November 1992 (Charity Registration No. l 015408) STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praciice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial staternents for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of ihe charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detcction of fraud and other irregularities. Page 7
F.dlii InlcrnafbiinAI I,i>un41Jliun (UK) Ili'purt (If ihe 'l'ru%ti'ib$ lur thi. I'cdir Tr.n(li'il J l.il l)L'lC'nibi"r 2023 Approved by order ofihc board ofirnstccs ..... by: and sig'ncd i)n ils behalf Mr ].- Ldhi - Trustee PaL?e S
Report of the Independent Auditors to the Trustees of Edhi International Foundation (UK) Opinion We have audited the financial statements of Edhi International Foundation (UK) (the 'charity') for the year ended 31st December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as at 31 st December 2023 and of its incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page 9
Report of tbe Independent Auditors to the Trustees of Edhi International Foundation (UK) Other information The trustees are responsible for the other infonnation. The other inforniation comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other inforn]ation and, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inforn]ation and, in doing so, consider whether the other inforn]ation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detern]ine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfornied, we conclude thai there is a material misstatement of this other infonnation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounis and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements. or sufficient accounting records have not been kept. or the financial statements are not in agreement with the accounting records and returns; or we have not received all the infonnation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees detern]ine is necessary to enable the preparation of financial statements that are free from material misstatement, wheiher due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 10
Report of the Independent Auditors to the Trustees of Edhi IDterDational Foundation (UK) Our responsibilities for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to: Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance. Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud. The internal controls established to mitigate risks related to frdud or non-compliance with laws and regulations. We inspected the minutes of meetings of those charged with governance. We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. We reviewed processes for in place for monitoring and accounting for funds provided to partner organisations outside the UK. We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit. We reviewed any reports made to regulators. We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We perfomed ana1Ical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. In addressing the risk of fraud through management oveIde of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those Outside the nornial course of business. Pagell
Report of the Independent Auditors to the Trustees of Edhi International Foundation (UK) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities oCCu1ng due to fraud rather than error, as fraud involves intentional concealment, forgery,collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description fonns part of our Report of the Independent Auditors. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors, report and for no other puOSe. To the fullest extent pern]itted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fornied. S Syedain & Co Chartered Accountants & Statutory Auditors First Floor 87 Kenton Road Harrow Middlesex HA3 OAH Page 12
Edhi International Foundation (UK) StatemeDt of Financial Activities for the Year Ended 31st December 2023 31.12.23 Total funds 31.12.22 Total funds Unrestricted Restricted fund funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 5,354,863 377,757 5,732,620 7,671,980 Investment income 266,904 266,904 278,553 Total 5,621.767 377,757 5,999,524 7,950,533 EXPENDITURE ON Raising funds 103,950 103,950 109,874 Charitable activities Costs for generating charitable income Charitable Donations 322,108 417,342 322,108 348,925 795,099 1,701,194 377,757 Other 343,450 343,450 (595,103) Total 1,186,850 377,757 1,564,607 1,564,890 Net gains/(losses) on investments (80,000) (80,000) (320,292) NET INCOME 4,354,917 4,354,917 6,065,351 RECONCILIATION OF FUNDS Total funds brought fOard 55,607,460 55,607,460 49,542,109 TOTAL FUNDS CARRIED FORWARD 59,962,377 59,962,377 55,607,460 The notes forn] part of these financial statements Page 13
Edhi International Foundation (UK) Statement of Financial Position 31st December 2023 31.12.23 Total funds 31.12.22 Total funds Unrestricted Restricted fund funds Notes FIXED ASSETS Tangible assets Investment property 12 352,083 13 2,150,000 352.083 360,759 2,150,000 2,230,000 2,502,083 2,502,083 2,590,759 CURRENT ASSETS Debtors: amounts falling due within one year Debtors: amounts falling due after more than one year Investments Prepayments and accrued income Cash at bank and in hand 14 111,574 111,574 28,047 14 1,517 15 56,068,613 8,089 1,784,178 1,517 2,917 56,068,613 52,156,227 8,089 7,418 1,784,178 961,002 57.973,971 57,973,971 53,155,611 CREDITORS Amounts falling due within one year 16 (502,637) (502,637) (127,870) NET CURRENT ASSETS 57,471,334 57,471,334 53,027,741 TOTAL ASSETS LESS CURRENT LIABILITIES 59,973,417 59,973,417 55,618,500 ACCRUALS AND DEFERRED INCOME 17 (11,040) (11,040) (11,040) NET ASSETS 59,962,377 59,962,377 55,607,460 The notes forni part of these financial statements Page 14 continued...
I,"Illil Inifrnaliiiii#l l.oiinil#lion (ljlk) .StAteiiieht Dr Tr liiunciiil I'ii%lliiJii cijiitlnucd J l.%1 l)ccenilJLr 2023 FLINDS I liire51ricled liiiid5 Ix 59,9()?..377 55.6O7.46n TOTAL FUNDS 59.962,377 55.607.460 The financial slatements wcre approved by il)v 13oard of'irustccs and auiliorised Inr i.SSUL on aiKI ivere %14iliLd on ils bchdll-by: Mr F Edhi - Trustee The noles forjn Piifi ()I' IlIL'sL' liiiclllCi(Il Siaieiiieiils
Edhi International Foundation (UK) Statement of Cash Flows for the Year Ended 31st December 2023 31.12.23 31.12.22 Notes Cash flows from operating activities Cash generated from operations 4,617,326 5,786,718 Net cash provided by operating activities 4,617,326 5,786,718 Cash flows from investing activities Purchase of tangible fixed assets Purchase of investment property Sale of fixed asset investments Short terni Investment Interest received (1,410) (1,065) (345,292) 6,632,054 (12,466,998) 168,403 (3,912,386) 119,646 Net cash used in investing activities (3,794,150) (6,012,898) Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 823,176 (226,180) 961,002 1.187,182 Cash and cash equivalellts at the end of the reporting period 1,784,178 961,002 The notes forn] part of these financial statements Page 16
Edhi International Foundation (UK) Notes to the Statement of Cash Flows for the Year Ended 31st December 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.12.23 31.12.22 Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Losses on investments Interest received {Increase)Idecrease in debtors Increase/(decrease) in creditors 4,354,917 6,065,351 10,086 10,265 80,000 320,292 (119,646) (168,403) (82,798) 267,829 374,767 (708,616) Net cash provided by operations 4,617,326 5,786,718 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.23 Cash flow At 31.12.23 Net cash Cash at bank and in hand 961,002 823,176 1,784,178 961,002 823,176 1,784,178 Liquid resources Deposits included in cash Current asset investments 52,156,227 3,912,386 56,068,613 52,156,227 3,912,386 56,068,613 Total 53,117,229 4,735,562 57,852,791 The notes forni part of these financial statements Page 17
Edbi International Foundation (UK) Notes to the Financial Statements for the Year Ended 31st December 2023 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective l January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. The Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in Statement of Trustees Responsibilities on page 8. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Investments comprise of renLql income on investment properties which are recognised when receivable. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. The charity has only a few relevant activity categories on which resources are expended and as such the costs between the different categories are easily allocated without the use of any method of apportionment. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its cstimated useful life. Page 18 continued...
Edhi International Foundation (UK) Notes to the Financxal Statements - continued for the Year Ended 31st December 2023 ACCOUIYTING POLICIES- continued Tangible fixed assets Freehold property 2% oncost 15 % on reducing Office Furniture and Equipment balance 25 % on reducing balance Motor Vehicles Gains and losses on fixed asset disposed of are included in Other Expenditure in the Statement of Financial Activities. Investment property Investment property, which is property held to earn rentals andlor for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised as part of the net incomel(loss) for the year. Taxation The charity is exempt from tax on its charitable activities. Fund accounting Unrestricted funds are available to spend on activities ihat further any of the purposes of the charity. Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Cash at bank and in hand Cash at bank and in hand includes cash and short tern] highly liquid investment with a short terni maturity of less than one year for the date of acquisition or opening of the deposit or similar account. Fixed Asset InvestmeDt Fixed asset investments include cash held in fixed deposit accounts with a maturity of more than one year from the date of acquisition. The carrying amount of the financial assets are measurcd at amortised cost. Page 19 continued...
Edhi International Foundation (UK) Notes to tbe Financial Statements - continued for the Year Ended 31st December 2023 DONATIONS AND LEGACIES 31.12.23 31.12.22 Donations Gift aid 5,708,748 7,492,082 23,872 179,898 5,732,620 7,671,980 Included within the donations an amount of £334,087 (2022: £379,652 ) in relation to Qurbani and £43,670 donations received towards purchase of ambulances in Pakistan which are both classified as restricted income. INVESTMENT INCOME 31.12.23 31.12.22 Rental Income Deposit account interest 147,258 119,646 110,150 168,403 266,904 278,553 RAISING FUNDS Raising donations and legacies 31.12.23 31.12.22 Publication costs Advertisement 66,474 37,476 69,616 40,258 103,950 109,874 Page 20 continued...
Edhi International Foundation (UK) Notes to tbe Financial Statements - continued for the Year Ended 31st December 2023 CHARITABLE ACTIVITIES COSTS Grant funding of activities (see note Support costs (see note 7) Direct Costs 6) Totals Costs for generating charitable income Charitable Donations 238,503 83,605 322,108 795,099 795,099 238,503 795,099 83,605 1,117,207 GRANTS PAYABLE 31.12.23 31.12.22 Charitable Donations 795,099 1,701,194 This amount includes the following payments: Qurbani perfonned in Pakistan on behalf of UK donors for 2023 Purchase of various equipments to be used in Pakistan Distributed food boxes during Ramadan Donations for ambulance purchase on behalf of UK donors Donations for the victims of the earthquake in Turkey Donation for medical aid to the victims of Gaza and legal aid program 334,087 313,476 5,290 43,670 16,500 82,076 795,099 Page 21 continued..
Edhi International Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 31st December 2023 SUPPORT COSTS Governance costs Manag¢rnent Finance Totals Other resources expended Costs for generating charitable income 333,364 333,364 274 47,840 35,491 83,605 274 47,840 368,855 416,969 OTHER 31.12.23 31.12.22 Depreciation Support costs 10,086 333,364 10,265 (605,368) 343,450 (595,103) AUDITORS, REMUNEIL4TION 31.12.23 31.12.22 Fees payable to the charity's auditors for the audit of the charity's financial statements 11,040 11,040 Other non-audit services 21,312 20,448 Total fees payable 32,352 31,488 Page 22 continued...
Edhi International Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 31st December 2023 10. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 st December 2023 nor for the year ended 31 st December 2022. Trustees expenses 31.12.23 31.12.22 Trustees, expenses 274 The trustees expenses related to general charitable expenses such as travel and subsistence that were reimbursed back to Faisal Edhi when he visited UK whilst perfonning his duties. 11. STAFF COSTS 31.12.23 31.12.22 Wages and salaries Social security costs Other pension costs 164,653 7,473 727 157,343 8,274 798 172,853 166,415 The average monthly number of employees during the year was as follows: 31.12.23 20 31.12.22 15 Average Monthly Employees No employees received ernoluments in excess of £60,000. Page 23 continued..
Edhi lllternational Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 31st December 2023 12. TANGIBLE FIXED ASSETS Office Freehold Furniture Motor property & Equipment Vehicles Totals COST At I st January 2023 Additions 420,509 59,039 1,410 10,597 490,145 1,410 At 3 1st December 2023 420,509 60,449 10,597 491,555 DEPRECIATION At I st January 2023 Charge for year 67,282 8,410 54,860 838 7,244 838 129,386 10,086 At 3 1st December 2023 75,692 55,698 8,082 139,472 NET BOOK VALUE At 3 1st December 2023 344,817 4,751 2,515 352,083 At 31 st December 2022 353,227 4,179 3,353 360,759 13. INVESTMENT PROPERTY FAIR VALUE At I si January 2023 Revaluation 2,230,000 (80,000) At 31 st December 2023 2,150,000 NET BOOK VALUE At 3 1st December 2023 2,150,000 At 31 st December 2022 2,230,000 Edhi International Foundation (UK) holds four investment properties in London. The Investment properties were valued on an open market basis by Drakefields Estates Limited who have experience in valuing properties in the local areas. The trustees consider that the carrying value of the investment properties are a material approxirnation to the current market value. Pagc 24 continued...
Edhi International Foundation (UK) otes to the Financial Statements - continued for the Year Ended 31st December 2023 13. INVESTMENT PROPERTY- continued Fair value ai 3 1st December 2023 is represented by: Valuation in 2015 Valuation in 2016 Valuation in 2018 Valuation in 2020 Valuation in 2021 Valuation in 2022 Valuation in 2023 Cost 351,828 253,982 250,000 90,000 45,000 (320,292) (80,000) 1,559,482 2,150,000 14. DEBTORS 31.12.23 31.12.22 Amounts falling due within one year: Other debtors Lease incentive 110,174 1,400 26,647 1,400 111,574 28,047 Amounts falling due after more than one year: Lease incentive 1,517 2,917 Aggregate arnounts 113,091 30,964 Within the debtors balance is a lease incentive for one of the properties that was leased out. A rent free period was given to the lessee and the amount above represents the lease incentive where the lease incentive is spread over the period of the lease. Included within other debtors is a lease premium that was renewed during the year for one of the investment properties. Page 25 continued...
Edhi International Foundation (UK) Note5 to the Financial Statements - continued for tbe Year EDded 31st December 2023 15. CURRENT ASSET INVESTMENTS 31.12.23 31.12.22 Short Tern] Investment 56,068,613 52.156,227 This represents cash from donations which are held for short tern] basis only and can be easily withdrawn if required. The donations are kept in UK banks so that they can be readily available for immediate use in times of national disaster where large funds would be required immediately. During the current year there was a reclassification of a fixed asset deposit account from fixed asset investment to Cuent assets as it is due to mature next year. 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Social security and other taxes Other creditors 4,324 123,546 502,637 502,637 127,870 Included within other creditors is £334,087 which relates to the Qurbani that was collected during the year and sent to Pakistan after the year end. Also within the other creditors balance is £43,670 which is the donations collected during the year for purchase of arnbulances. This amount was also sent to Pakistan after the year end. 17. ACCRUALS AND DEFERRED INCOME 31.12.23 31.12.22 ACclS and deferred income 11,040 11,040 Page 26 continued...
Edhi International Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 31st December 2023 18. MOVEMENT IN FUNDS Net movement in funds At 31.12.23 At 1.1.23 Unrestricted funds General fund 55,607,460 4,354,917 59,962,377 TOTAL FUNDS 55,607,460 4,354,917 59,962,377 Net movement in funds, included in the above are as follows: Incoming Resources resources expended Gains and Movement losses in funds Unrestricted funds General fund 5,621,767 (1,186,850) (80,000) 4,354,917 Restricted funds Qurbani Ambulances 334,087 43,670 (334,087) (43,670) 377,757 (377,757) TOTAL FUNDS 5,999,524 (1,564,607) (80,000) 4,354,917 Comparatives for movement in funds Net movement in funds At 31.12.22 At 1.1.22 Unrestricted funds General fund 49,542,109 6,065,351 55,607,460 TOTAL FUNDS 49,542,109 6,065,351 55,607,460 Page 27 continued...
Edhi International FouDdation (UK) Notes to the Financial Statements - continued for the Year EDded 31st December 2023 18. MOVEMENT IN FUNDS- continued Comparative net movement in funds, included in the above are as follows: Incorning Resources resources expended Gains and Movement losses in funds Unrestricted funds General fund 6,396.299 (10,656) (320,292) 6,065,351 Restricted funds Qurbani Flood Relief 379,652 (379,652) 1,174,582 (I,l74,582) 1,554,234 (1,554,234) TOTAL FUNDS 7,950,533 (1,564,890) (320,292) 6,065,351 A current year 12 months and prior year 12 months combined position is as follows: Net movement in funds At 31.12.23 At 1.1.22 Unrestricted funds General fund 49,542,109 10,420,268 59,962,377 TOTAL FUNDS 49,542,109 10,420,268 59,962,377 Page 28 continued...
Edbi International Foundation (UK) Notes to the Financial Statements - CODtiDued for the Year Ended 31st December 2023 18. MOVEMENT IN FUNDS- continued cuent year 12 months and prioT year 12 months combined net movement in funds, included in the above are as follows: Incoming Resources resouices expended Gains and Movement losses in funds Unrestricted funds General fund 12,018,066 (1.197,506) (400,292) 10,420,268 Restricted funds Qurbani Flood Relief Ambulances 713,739 (713,739) 1,174,582 (1,174,582) 43,670 (43,670) 1,931,991 (1,931,991) TOTAL FUNDS 13,950,057 (3,129,497) (400,292) ) 0,420,268 19. RELATED PARTY DISCLOSURES The following related party transactions that occurred during the year are as below: A sum of £334,087 (2022:£379,652) was paid to Abdul Sattsr Edhi Foundation Pakistan for Qurbani perforn]ed on behalf of donors in UK for the year. An amount of £313,476 (2022:£114,355) was paid for the purchases of various equipments to be used for charitable activities by Abdul Sattar Edhi Foundation in Pakistan. An amount of £43,670 was sent to Pakistan for purchase of Ambulances on behalf of donors in the UK. Last year £1,174,582 was sent to Pakistan to help the Pakistan flood victims as a result of the floods during 2022 that killed many people and caused devastating damage and economic losses. The amount collected from UK donors was sent to Abdul Sattar Edhi Foundation Pakistan who undertook the relief process. This was a one off collection and there was no specific fundraising collections done during the year. The trustees of Edhi International Foundation (UK) are also Trustees of Abdul Sattar Edhi Foundation Pakistan. Page 29
Edbi International Foundation (UK) Detailed Statement of Financial Activities for the Year Ended 31st December 2023 31.12.23 31.12.22 INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid 5,708.748 7,492,082 23,872 179,898 5,732,620 7,671,980 Investment income Rental Income Deposit account interest 147,258 119,646 110,150 168,403 266,904 278,553 Total incoming resources 5,999,524 7,950,533 EXPENDITURE Raising donations and legacies PubliLation costs Advertisement 66,474 37,476 69,616 40,258 103,950 109,874 Charitable activities Wages Social security Pensions Rent and Rates Insurance Light and heat Telephone Repairs And Renewals Other Expenses Travelling Expenses Charitable Donations 164,653 7,473 727 13,458 9,114 16.669 7,486 10,134 5,951 2,838 795,099 1,701,194 157,343 8,274 798 17,734 8,518 9,370 4,483 12,158 7,347 1,033,602 1,927,219 This page does not forni part of the statutory financial statements Page 30
Edhi International Foundation (UK) Detailed Statement of Financial Activities for the Year Ended 31st December 2023 31.12.23 31.12.22 Charitable activities Other Freehold property Fixtures and fittings Motor Vehicles 8,410 838 838 8,410 737 1,118 10,086 10,265 Support costs Management Trustees, expenses 274 Finance Bank & Credit Card Charges 47,840 63,947 Governance costs Auditors, remuneration Auditors, remuneration for non audit work Professional Services Exchange Gain / Loss 11,040 11,040 21,312 3,139 333,364 20,448 27,465 (605,368) 368,855 (546,415) Total resources expended 1,564,607 1,564,890 Net income before gains and losses 4,434,917 6,385,643 Realised recognised gains and losses Realised gains/{losses) on investment property (80,000) (320,292) Net income 4,354,917 6,065,351 This page does not forn] part of the ststutory financial statements Page 31