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2022-12-31-accounts

Company Registered Number (England and Wales):02171893 Charity Registered Number:1029450

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Foundation, its Trustees and Advisers 1
Trustees' Report and Strategic Report 2 - 17
Statement of Trustees' Responsibilities 18
Independent Auditors' Report on the Financial Statements 19 - 22
Statement of Financial Activities 23
Balance Sheet 24
Statement of Cash Flows 25
Notes to the Financial Statements 26 - 51

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees Omar Abdul Muhsen Al-Qattan, Chair
Dr Najwa Al-Qattan
Nadia Hijab, Secretary (resigned 12 August 2022)
Abla Maayah, Treasurer (resigned 13 June 2023)
Dr Khalil Hindi (resigned 13 June 2023)
Dr Raif Zreik
Professor Khaled Fahmy
Dr Mezna Qato, Secretary (as of 13 June 2023)
Dr Hani Nigim (appointed 13 June 2023)
Dr Munir Kamel Fakher Eldin (appointed 13 June 2023)
Ms Reem Mohammed Abu Jaber (appointed 13 June 2023)
Dr Rabab Mohamad Tamis (appointed 13 June 2023)
Mr Yacoub Jamal Yousef, Treasurer (as of 13 June 2023) (appointed 13 June
2023)
Company registered
number
02171893
Charity registered
number
1029450
Registered office
Tower House
226 Cromwell Road
London
SW5 0SW
Director General
Fida Touma - Ramallah
Independent auditors
MHA
Chartered Accountants and Statutory Auditor
6th Floor
2 London Wall Place
London, United Kingdom
EC2Y 5AU
Bankers
EuropeArab Bank
73 Brook Street
Mayfair
London
W1K 4HX
Barclays Bank
Level 12
1 Churchill Place
London
E14 5HP
Solicitors
Thomas Eggar
75/76 Shoe Lane
London
EC31 3JB

Page 1

(A company limited by guarantee)

A.M. QATTAN FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report together with the audited financial statements for the year ended 31 December 2022. The Trustees confirm that the Annual Report and Financial Statements of the Charity comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

FOREWORD

This report provides a summary of 2022 achievements measured against the objectives set by our 2020-2024 strategic plan, approved by the Board on 12 December 2019, and the related work plans set and approved in December 2021 for 2022.

In 2022, more than 95% of the foundation’s objectives set in the previous year were achieved. We enjoyed a relatively stable period following major changes undergone between 2019 to 2021. Programming was fully resumed after COVID19 restrictions were lifted, and administrative processes were streamlined following changes that were introduced to its structure in 2021.

The Strategic Plan (2020-2024) was updated in May 2022, adjusted to reflect the impact of the coronavirus pandemic, changes to the political and economic context and internal organisational changes.

STRATEGIC REPORT

OBJECTIVES AND ACTIVITIES

Objects

The objects of the charity are the advancement of the education of Arabs in general and of Palestinians in particular, and the advancement of the education of the public in Arab and Palestinian studies.

Activities - Overview

The activities of the charity continue to be focused on 1) arts and culture through financial support, training, commissioning of works, partnerships, and public events, and 2) education through teacher empowerment and training and 3) focused community and school engagement, working with children at varying levels through a variety of non-curricular educational and cultural activities.

Those activities fall under three programmes: Culture & Education, the Public Programme and The Mosaic Rooms.

Other activities that underpin its internal (and indirectly external) environment and sustainability are the support functions i.e. Administration, Finance, Communications & Development.

The Foundation continued to operate from its three main cultural hubs: The Mosaic Rooms gallery and bookshop in London, the Qattan Culture Centre in Ramallah, and the Qattan Culture Centre in Gaza (formerly known as the Qattan Child Centre).

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A.M. QATTAN FOUNDATION

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Detailed activities, achievements, and performance

1 CULTURE AND EDUCATION PROGRAMME (CEP):

CEP is the programme that connects in-depth, long-term, interventions with different target groups (i.e., teachers, artists, and children). It includes grant-making, teacher training and long-term child-centred activities as below:

1.1 Education Unit (EU)

Activities are focused on the development of teachers in Palestine and contribute directly to the foundation’s goals of supporting public discussion on culture and education while promoting progressive educational and cultural policies that respond to society's evolving needs.

Through long term training and engagement, the unit focused on four key tracks:

  1. Drama in Education

  2. Early Childhood Education

  3. Science and Project-Based Learning

  4. Community Engagement in Education: including teacher and supervisor focused training, and direct engagement with select schools as units of learning and community engagement.

In 2022 all activities were co-funded with Drosos Foundation, the Swiss Development Agency and Save the Children International and took place in both the West Bank and the Gaza Strip.

Teacher Training

In 2022, work continued with the teacher cohort selected in 2021 to complete their training. This cohort consisted of 99 teachers (70 from the West Bank and 29 from Gaza), 35 were part of the Drama in Education track, 39 Early Education and 25 Science and Project Based Learning. A total of 114 training hours took place. The 99 teachers came from 26 public schools, six UNRWA schools and 35 private schools. To showcase the teachers’ work at the end of their training, open days were organised in Ramallah (June) and in Gaza (October).

In response to a call for a new cohort 400 applications were received, 90 teachers were selected with 30 teachers in each track. The selected teachers came from 49 public, 39 private and four UNRWA schools. 55 hours of training has taken place so far.

Training of Trainers (ToT)

A programme for school supervisors was offered to 20 supervisors to mentor teachers at the schools they supervise. The first cohort went through 52 hours of theoretical workshops and 38 hours of in-class training. A new cohort of 14 supervisors had been selected by the end of 2022.

Community Engagement

An open call for schools to submit ideas for community issues they would want to lead on as a school was announced.

45 applications were received. 12 schools (represented by 35 teachers) were selected in the West Bank to whom 60 hours of support were provided with six schools (represented by 26 teachers) selected in the Gaza Strip to whom 45 hours of teacher support were provided.

As a result, 19 community related projects that would be led by the schools were developed. Projects focused on social and educational issues chosen as priorities by the communities, such as environmental protection, placemaking, cultural enrichment, school environment upgrading etc. By the end of the year, 38 events/activities had been organised.

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Additional call for community organisers/artists to submit projects that would engage schools and communities utilizing arts and culture as a conduit for community engagement.

63 applications were received: five initiatives selected (three in the Gaza Strip and two in the West Bank). Implementation started in the fourth quarter of 2022 and will continue through 2023.

FabLab

The unit moved its Tinkering Lab (previously set up at the Science Studio) to a space previously designated for an experimental classroom within the Culture Centre in Ramallah. The FabLab will be open to the community and schools from 2023. It will offer science, technology, engineering, arts & maths (STEAM) related activities and support the introduction of STEAM clubs at schools.

1.2 Grants and Capacities Support Unit (GCSU)

This unit leads on grant-making activities in culture and long-term capacity-building projects for artists in specific fields. These interventions are designed to serve the strategic objectives of a) strengthening existing cultural, artistic and educational structures to make them more dynamic and capable of producing critical and emancipatory thought and knowledge, and b) supporting a general environment that facilitates and endorses the application of the Foundation’s role and mission.

In 2022, activities were co-funded by the Al-Qattan Charitable Trust as well as the Swiss Development Cooperation (SDC).

Grants are offered through publicly advertised open calls. Each call includes guidance on themes, support areas, grant amounts, eligibility, selection criteria, timeframe, and any related conditions. All applications are submitted online. Once submission dates close, the GCSU team and the CEP director in consultation with the Director General (DG) appoint jury members following a pre-approved set of guidelines. All our grants are adjudicated by juries.

The Grants offered may be field or action specific or they may be within an artistic discipline more generally. In 2022, three grant schemes were announced:

1. Support to cultural organisations in Palestine (Takatof)

2. Support to individual artists and collectives (Herakat) For travel, studies, production and dissemination in their fields. 99 applications received, 25 selected.

3. Culture, Arts and Social Engagement (CASE)

with co-funding from the Swiss Development Cooperation (SDC) A multi-faceted grant that supports projects informed by community needs

In addition to the grants offered above, the unit oversaw and followed up on the implementation and completion of 18 grants that had been running since 2021.

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A.M. QATTAN FOUNDATION

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The unit also offered the following residencies:

Two calls announced: seven applications received; six residencies hosted.

The Visual Arts Residency at Cite Internationale des Arts – Paris

In partnership with Consulate General of France in Jerusalem and Taawon

2023 call was announced: 39 applications, two selected for residencies in 2023.

The unit announced calls for:

63 entries received, of which a jury of seasoned writers shortlisted 25 manuscripts to undergo a second round of reading and selection. It is anticipated that 10 manuscripts will be developed and published in 2023/2024.

Call for RamallahDoc

In partnership with Filmlab, Geothe Institut, and the Institut Francais

15 applications received, 13 selected. Development will take place in 2023 and the pitching event will take place alongside the Palestine Cinema Days Festival in Autumn 2023.

Virtual Orchestra For Palestine (PALVO)

The unit was engaged in the development and realization of the first online musical production of the Virtual Orchestra For Palestine (PALVO), created through the voluntary participation of 140 Palestinian musicians from all over the world - all of whom had been supported previously by the Foundation.

1.3 Child Creativity Unit

This unit leads long-term activities for children aged five to seventeen and is currently based at the Culture Centre in Gaza. It supports the strategic objectives of:

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A.M. QATTAN FOUNDATION

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The unit runs six key tracks:

  1. Creative Writing (Arabic & English)

  2. Visual Arts

  3. Performing Arts

  4. Audio-visual Arts

  5. Science and FabLab.

Long-term training (through its clubs) and shorter-term workshops targeted at specific schools and audiences, to expose children to new practices and stimulate their interest, are offered as well as various activities during the summer and winter school breaks open to a wider audience.

The Culture Centre in Gaza programmes its activities in seasonal rounds (winter, spring, summer, and autumn) and, at the end of each season, the results are presented to the public.

At the end of the summer season (high season because of the school break) a full day of exhibitions and performances is organised and attended by parents, teachers, and various stakeholders; similarly, the winter season also concludes with an open day of exhibitions and activities for children and parents. Outcomes of spring and autumn activities are shared via publications and videos on social media. During the high seasons (summer and winter breaks), an extensive calendar of workshops for children (and/or their caretakers) is scheduled.

In addition to ongoing workshops open to public registration throughout the year, activities with the schools are organised so that children benefit from what is offered during the day with teachers endorsing their participation as either co-curricular or extra-curricular activities. Alongside all these workshops, children and young adults who have found their passion in any of these tracks arrange self-organised clubs to meet and work together regularly at the centre to hone their skills and pursue their interests.

375 workshops: 74 schools enrolled (41 UNRWA schools, 24 public and nine private), 6,500 children participated, 225 children members of self-organised clubs.

Creative writing

Activities revolved around journalistic writing, diary narration and critical writing. Each topic is worked through with the children in a manner compatible with their age group and informed by their interests. The children’s writing is published in a magazine that is circulated at the centre and at schools. This year we published 40 pieces, hosted seven writers to talk to the children about creative writing and their experiences, organised 65 short-term workshops for 1,000 children and 45 mothers and, in our 14 longer-term workshops, 180 children participated.

Visual arts

Focused on introducing the children to different techniques in drawing, working on developing their skills and on the reuse and recycling of materials in creating artworks.

Our summer exhibition showcased 80 artworks, 325 children participated in 20 courses, and our long-term members worked in collaboration with the creative writing group on the illustration of six children’s stories.

Performing arts

In addition to workshops that revolved around self-expression in language, sound, and movement, this year we focused on theatre. We organised a long-term workshop in acting for theatre and worked with three theatre groups at three schools on developing and producing three plays to be showcased in 2023; moreover, we showcased six productions at the centre created by 150 children. In 2023, we organised 50 short/medium term activities for 1,064 children, and 14 long term workshops for 321 children.

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(A company limited by guarantee)

A.M. QATTAN FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Audio-Visual

The children learned and developed skills in creating animation films (story building, character development, scene building, filming, editing etc.), focusing on environmental protection and practices. 26 short animation films were produced for our summer showcase this year, attended by 180 people.

In 2022, 42 medium term workshops attended by 753 children, and 19 longer term one attended by 259 children.

Science

This year teachers were heavily involved in the design and implementation of the workshops, in line with the work of the Education unit relating to STEAM. In 2022, we organised 22 medium-term workshops for 362 children, 72 public science activities attended by 1236 children, nine STEAM courses for 52 teachers, and showcased 33 scientific projects produced by the children to the public.

Design and Technology

In partnership with the Institut Francais and PalTel Group the Digital November festival (a showcase of projects developed locally by young adults in the fields of technology and design) was organised culminating in Digital November Hakathon, a digital challenge, for young adults to develop solutions to health, education and environmental issues.

70 project ideas from 15 cities in Palestine were presented competed and six projected received a nominal financial prize and mentorship/development support.

72 short/medium term workshops for 1,127 children and 19 longer term workshops for 322 children, were also organised. 55 projects produced during these workshops were developed and showcased.

2 THE PUBLIC PROGRAMME (PP)

The Public Programme delivers events and activities, curating, commissioning and managing the offer to the public at its Culture Centres and by reaching out and engaging with the different communities throughout Palestine. It operates through three units:

  1. Curatorial Unit

  2. Community Engagement Unit

  3. Libraries Unit.

While the first two work in a concomitant manner, the latter is more independent.

2.1 Curatorial Unit (CU)

Leads on programming the annual calendar of events at the Culture Centres in Ramallah and in Gaza. It does this by curating events (such as exhibitions and film screenings), commissioning projects that culminate in public exhibitions (such as the science and food culture projects), and through partnerships with cultural practitioners to showcase their work (such as performing arts and music). These activities support the key objective of developing and making available cultural output to a wider public to encourage it to become more active and responsive.

three exhibitions in the Culture Centre in Ramallah were organised:

To showcase the work of nine young artists who collectively co-curated it too. The exhibition revolved wound visual materials on display within Palestinian homes in the “salon” where guests are received and family memorabilia is displayed.

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The three exhibitions were visited by 2,166 people.

In partnership with the Birzeit University Museum, one exhibition entitled “The Man Who Talked Until He Disappeared - Bani Abidi in Palestine”; an anthology of Pakistani artist’s Bani Abidi's work, examining the extraordinary as well as the mundane with a keen sense of humor, and following the everyday acts of exposing power. Every piece was re-produced locally and transformed to reveal and expose the contradictions of contemporary life from Karachi to Palestine and in between.

Alongside the exhibitions a series of thematic events was organised, including:

Cinema programme in both Ramallah and Gaza

The year-long film programme in Ramallah was curated by Rasha Salti under the title “Because the Music Never Stopped” and included 47 films showcasing anti-imperialist struggles and aiming to decolonize culture from the mid-twentieth century (Third Cinema). These were attended by 1,110 people.

In Gaza the film programme was held in partnership with FilmLab and offered films for the family as well as classics. 53 screenings took place, attended by 5589 people.

In addition to film and visual arts, the unit organised:

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A.M. QATTAN FOUNDATION

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

2.2 Community Engagement Unit (CEU)

The Community Engagement Unit works concomitantly with the Curatorial Unit in devising and developing activities and opportunities for different types of audiences alongside the public calendar of events. It acts as interpreter, mediator and moderator for different groups including children, university students, neighbours, academics, senior citizens, etc. Its activities support the key objective of developing and making available cultural output to a wider public to encourage it to become more proactive by developing various levels of involvement and engagement with audiences.

Activities focused on reaching a larger audience and targeting new groups, working with the local neighbourhood in Ramallah and through its extensive outreach services in the Gaza Strip.

In Ramallah the following were organised:

In Gaza the following were organised:

These activities were part of the centre’s continuous engagement with children under six and their caregivers.

Mobile Library Bus and Child Friendly Spaces programme operated all year round:

2.3

Libraries Unit

The Foundation prides itself on its two libraries: The Gaza Library is one of the best equipped children’s libraries in the region and is a haven for children, young adults and families; and the Leila Miqdadi al-Qattan Library in Ramallah caters to a wider public, providing a diverse collection of books relating to the social sciences and humanities for adults and building up its collections for children and young adults. The library has become a hub for university students, freelancers, senior citizens and families.

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

In Gaza the library:

In Ramallah the library:

3 THE MOSAIC ROOMS (MR)

The Mosaic Rooms is a non-profit art gallery and bookshop in London dedicated to supporting and promoting contemporary culture from the Arab world and beyond, through free art exhibitions, a multidisciplinary events programme including film screenings, current affairs talks and book launches, and a creative learning programme. MR works in partnership with local, national and international organisations to disseminate their programme to the widest possible audience in London and further afield. Previous partners include The British Museum, Institute of Contemporary Arts (ICA), Shubbak Festival, London Design Festival and the London Festival of Architecture, amongst others. MR also organises the annual Edward W. Said London lecture.

During 2022 the effects of the pandemic began to lessen, with an increased desire by audiences to return to in person attendance. The Mosaic Rooms’ visitor figures increased by 117% from the previous year (though still down 12% from 2019 pre-pandemic). The programme combined ambitious new commissions, as well as giving artists their first solo exhibitions in the UK. Deviations from the annual plan included moving Non-Aligned Movement into 2023 due to post covid delays on new commissions; an alternative exhibition was programmed in its place.

Exhibitions in 2022 included:

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Our Public Programme responded to audiences wish to return to in person and more participatory events after the pandemic years of restricted involvement by programming more workshops, performances, reading groups, walks and other initiatives. Themes were selected in consultation with the artists and participant numbers were consciously kept small to encourage intimacy and participation. The programme also launched new partnerships in addition to building on those previously established. All events were booked out and positively attended. Online events continued to be programmed to reduce travel and to enable international audiences to engage. Exhibition tours from Higher Education Institutions increased with curator led tours and further discussions in the bookshop. Around 3000 people attended the 43 events we organised as well as the in-gallery activities; while 170 attended the five online activities we organised.

Our Creative Learning programme had a dynamic year, engaging a range of groups, testing projects and assessing need. This saw delivery of two major school projects, with four schools participating and three artists leading the projects in person at the gallery and in the classroom. Sarha Hersi, worked with Earls Court Youth Centre and family visitors to create a play structure subsequently opened for local families to enjoy during the summer period as part of the Family Play project. Due to landscaping works in the garden, it was located at Chelsea Theatre providing us with the opportunity to engage new community members. A sensory and child-led commission led by Sarah Marsh inviting children and families to design sensory objects for the gallery will be launched next year to provide playful and joyful access to our spaces for all young people and families, one of our objectives.

An additional play area in the bookshop is regularly updated with new activities and materials and Squish Station were commissioned to provide open ended clay play for all to use in the sitting area of the bookshop.

Continuing the work with New Citizen’s Gateway, a refugee service in Barnet, The Mosaic Rooms Young Collective formed in autumn 2022, during a 12-week project with artist Nia Fekri. A group of ten young refugees and asylum seekers, meditated on alternative realities, myth and mindfulness to create a multi-sensory installation which opened to the public from 18 November – 22 January 2023 and received incredibly positive feedback from visitors and participants.

The first adult focused project, What Grows Wild, a three-month project was delivered in collaboration with adults from The Dalgarno Trust, a community organisation local to the gallery. Approximately 30 adults took part in a series of four workshops with medical herbalist Rasheeqa Ahmad to explore creativity and traditional forms of health knowledge.

Other initiatives included the launch of the Small Press Fest, a day for visitors to meet small-press and independent publications at the intersection of art, writing and radical publishing and some programming by the publishers which we hope will become an annual event.

The Edward Said Lecture with Nobel Prize winning author Abdulrazak Gurnah, introduced by Bashir AbuManneh, and in conversation with author Nadifa Mohammad was held at the Southbank Centre. The event was programme in partnership with the Southbank Centre as part of the London Literature Festival and sold out with an audience of 295.

In 2022 we extended our network of collaborators and developed and devised a number of events in partnership with local arts and community organisations including:

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Chisenhale Gallery Earls Court Youth Club Metroland Cultures (Brent Biennial) New Citizens Gateway Southbank Centre Dalgarno Trust The Photographers’ Gallery Kensington Aldridge Academy The Cosmic House Venture Centre/ Maternity Champions Walmer Yard Young K&C, 2-3 Degree Pillar Corrias Gallery Al Hassinaya Community Organisation Hoax Publication IntoUniversity. Karma Bank Chelsea Theatre

4 COMMUNICATIONS & DEVELOPMENT

The Communications and Development Department is new and was set up as a result of the restructuring process. It is intended to be the hub of internal and external knowledge exchange, supporting the goal of being knowledge producers and a learning organisation. The department is still in the process of establishment, but it includes two existing units - communications and media, and fundraising - and will be adding new, key functions: monitoring and evaluation, and sectoral research.

Work was focussed on strategy until the end of 2024 and to that end audience surveys and analysis of existing media output were prioritised. A consultancy to develop the foundation’s visual identity and tone of voice, which will affect its communications from mid-2023 onwards, was also engaged.

Social media channels witnessed significant increases: 10% Facebook subscribers 19% Instagram 700% LinkedIn

The YouTube library has been significantly increased hosting 245 videos (71 additional ones).

Nine Co-funding agreements were in place for its projects in Palestine making up 11% of the programmatic expenses in Palestine. Co-funding partners were the Swiss Development Agency (SDC), the Swedish Government, Save the Children International, Drosos, and the King Bedouin Fund-US, The Norwegian Refugee Council.

The Mosaic Rooms in London received support from five organisations: Arts Council England (ACE), Elephant Trust, Henry Moore Foundation, Royal Borough of Kensington & Chelsea (RBKC), Earl’s Court Development Fund.

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

5 ADMINISTRATIVE REVIEWS

Much time and effort were expended in aligning policies and plans with the organisational structure introduced in 2021. PwC were engaged to review our Financial and Accounting Manual and developed new Procurement, AntiCorruption and Safeguarding policies. Authority matrices for the administration and finance departments were finalised and those for the programmes and communications will be in 2023. ToRs for the Senior Management Committee were also developed and approved. The Strategic Plan (2020 - 2024) was also reviewed.

By the end of 2022, there were 67 employees working in Palestine (42% female). The annual performance appraisal process was concluded in December 2022, and the Trustees approved a merit-based increase in salaries as well as a lump-sum bonus for staff. seven university study grants totalling of $15,200 for employees’ children were also approved.

In terms of infrastructure upgrade and capital projects, the charity renovated a property it owns (part of its old premises). The property was advertised for lease in local newspapers and will be let to the Mariam Foundation starting 1 April 2023. Additionally, management of the restaurant at the Culture Centre in Ramallah was outsourced taking effect in May 2022. We also concluded the purchase of a parcel of land adjacent to the Culture Centre in Ramallah to safeguard the natural landscape around the centre. In Gaza, we renovated and refurbished the computer labs and staff offices as well as the entrance enabling easier access and increased capacity.

The following rental income was achieved during the year:

FUNDRAISING STANDARDS

The Foundation has an in-house Resource Development (RD) Manager position at its Ramallah headquarters responsible for fundraising. In the UK, the Mosaic Rooms’ Director manages fundraising. Both follow the fundraising policy approved by the Board of Trustees, which states that external funding should not exceed 40% of the annual budget and that the foundation should always play lead in the design and implementation of its projects. In addition, no conditions should be attached to external funding that contradict the foundation's core mission. The foundation approaches donors to extend and expand its programmes' operations by co-funding selected projects and programmes.

The Foundation does not solicit funding from the public or from individuals except in very rare cases pre-approved by the Trustees. No complaints were received from members of the public about the foundation's fundraising activities.

PLANS FOR THE FUTURE

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

6 FINANCIAL REVIEWS

Incoming resources in the 12 months to December 2022 were £5,097,447 which was lower than £11,787,805 in the 12 months to December 2021. The main sources of funding for the Foundation's core programme and administrative expenses are the AI-Qattan Charitable Trust, Jersey, Omar AI-Qattan, Najwa Al-Qattan and Leenah Al-Qattan.

The heirs of the late Leila Al-Qattan, namely her children Najwa, Leenah, Hani and Omar Al-Qattan formally bequeathed her house in Amman, Jordan to the Charity through the Jordanian Sharia Courts after her death on January 27, 2015, and after the passing of her late husband on December 4, 2017. However, foreign entities cannot legally own real estate in Jordan except through the establishment of a non-operating foreign company (in this case, a branch of the UK Charity) a convoluted process requiring the approval of the Ministry of the Interior, which took until 2021 to complete. Moreover, as Jordanian Real Property Law does not allow the Charity to rent nor sell the property for the first six years after its registration (except for its use as a residency or office of the Charity's official representative in Jordan), the Trustees have opted to recognize the house as a tangible asset. The Charity is able to appeal to the Jordanian authorities to reduce this period once it has received a serious purchase offer from a third party.

Total expenditure was £3,071,506 which has decreased from £7,042,966 in the previous period. The percentage of total expenditure vs. the approved budget for this year was 86%.

Overall, the Charity reported a surplus for the year of £2,025,955 (2021 - net surplus of £4,952,814).

At the end of the fiscal year, the balance of the provident fund for employees in Palestine was £923,580 while the severance fund balance for employees in Palestine was £1,363,668.

The funds of the Charity carried forward as at the 31 December 2022 were £46,772,505 of which £30,959,291 was held as restricted funds and £15,813,214 as unrestricted funds.

Reserves Policy

The Trustees have reviewed the Foundation’s needs for reserves in line with the guidance issued by the Charity Commission.

The Trustees believe that a prudent level of reserves would be in the region of £1,700,000. This would enable the Foundation to have the financial resources to meet employees’ salaries and basic running costs for six months.

The Al-Qattan Charitable Trust in Jersey has been the Foundation’s largest donor to date, over a period of more than twenty-five years. The Al-Qattan Charitable Trust was set up with a mandate to support the Foundation’s core programmes and running expenses, among other charitable goals. The Foundation’s Trustees feel confident of the short and the medium-term security of this funding source. However, they also regard the emergency provisions outlined above as necessary to cover any suspension of the Al-Qattan Charitable Trust's funding for reasons beyond their control.

At the year end the free reserves of the Charity (as defined by unrestricted funds not held as fixed assets) was £2,431,330 which is £731,330 in excess of this policy. The Trustees have reviewed the future plans of the Charity and are satisfied that the level of free reserves will decrease in line with the policy over the corning year. However, at the end of 2023 they will review the level and policy for free reserves as part of the budget setting plan and in line with the strategic plan.

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A.M. QATTAN FOUNDATION (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Investment Policy

In August 2021, the Charity contracted Sarasin & Partners as its investment managers and transferred $2.5 million for a Strategic Portfolio. The Charity’s investment policy is the preservation of capital against inflation while pursuing conservative to very conservative strategies with an allocation of a maximum of 40% in global bonds and a maximum of 60% in global equities.

The Charity has also asked a half-yearly payment of £50,000 to be paid from investment income to the Charity subject to a request from the Investment Committee. However, no such requests have been made to date due to the portfolio’s poor performance in 2022.

With the markets’ volatility and uncertain political changes globally, the investment portfolio has not yielded what was expected of it. The investment performance target was 3% per annum above US CPI over a rolling 5-year period, however between August and December 2021 the percentage return on benchmark was 2.3%, and for FY2022 it was -14.7% (a loss of $400,271); in the first three months of 2023, however, performance has gradually begun to improve with a percentage increase of 5.5% for the quarter.

The Charity does not plan to change its investment managers or portfolio in the foreseeable future, as it considers this investment a longer-term one and is aware of the current fluctuations and risks in global markets. We continue to follow a capital preservation policy while pursuing conservative to very conservative strategies with an allocation of a maximum 40% in global bonds and a maximum of 60% in global equities.

Regarding its other assets, the charity continues to seek to sell its property in Amman which it cannot rent (for legal reasons) and which is thus not generating income. Once this is achieved, it will pursue similar conservative investment strategies that can preserve capital and generate income of 2 to 3% above US CPI.

Principal risks and uncertainties

In addition to operating in a politically volatile space, the Charity’s principal risks identified in 2022 were mainly:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

The Charity is governed by policies and procedures devised with support from a professional firm of auditors to cover all operations, including internal auditing services provided by Deloitte, which are then discussed and approved by the BoT, as are a semi-annual and annual narrative and financial report on all programmes, projects, and management issues. The BoT meets with the senior management committee (SMC) at least twice a year. The SMC is composed of all members of staff at director level and by other selected senior staff.

Page 15

(A company limited by guarantee)

A.M. QATTAN FOUNDATION

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Foundation has a long and successful history of collaboration with other major charities and institutions, including the Swedish International Development Agency, the Drosos Foundation (Switzerland), the Arts Council England, Taawon (previously Welfare Association) in Geneva, the European Union, the Palestinian Museum, the Swiss Development Cooperation and many others. Historical and current projects have mainly been co-funding interventions in medium to long-term strategic goals. Our Chair of the Board was elected to chair the Palestinian Museum in August 2020. However, he plays no part whatsoever in discussions or decisions relating to joint projects between the two institutions. Since 2022, he is also a member of the Board of Directors of Taawon (Geneva). The Foundation provides free office space at its London offices to Welfare Association (UK), Taawon’s UK partner organisation.

The Foundation has a risk matrix and risk register that is updated every year.

Directors’ indemnity insurance

Directors’ indemnity insurance for the benefit of one or more Directors of the Company was in force during the financial period.

The Constitution of the Charity

The Charity is a registered charity and a company limited by guarantee.

The Articles of Association set out the Charity's purposes and its governing structure. They are supported by a Governance Manual which lays out in detail policies and processes related to all governance functions.

Recruitment and Induction of Trustees

The Charity may by ordinary resolution appoint a person who is willing to be a Trustee. Potential candidates are recommended by the Nominations Committee. Selection criteria is focussed on candidates' professional expertise in the Foundation's areas of work, as well as other areas such as management, audit, public relations and fundraising. Candidates are then recommended for approval by the Board.

The Chair of the Board is responsible for the induction of new Trustees. An information pack is provided on appointment, meetings with relevant members of staff and Trustees arranged and any training provided as needed. Newly appointed Trustees must return a signed Confidentiality Agreement, Declaration of Interests and a Trustee Eligibility Form. During 2022 and early 2023 several candidates were identified by the board as potential new Trustees. These have been approached and have expressed interest in joining. Their formal election and induction are expected in late 2023, to replace three of our existing Trustees, one of whom (Nadia Hijab) resigned in December 2022.

Remuneration policy

The Board conducts regular research on comparable remuneration packages for all key management posts. All staff (except for the Director General (DG)) are paid according to a salary scale that is reviewed regularly by the Board. The DG's remuneration is negotiated directly with the Chair of the Board.

Public Benefit

We have referred to the guidance in Section 17 of the Charities Act 2011 on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees, as well as all senior members of staff, are asked to carefully consider how planned activities will contribute to the aims and objectives they have set.

Page 16

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A.M. QATTAN FOUNDATION

Opinion

We have audited the financial statements of A.M. Qattan Foundation (the 'Foundation') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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 19

A.M. QATTAN FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A.M. QATTAN FOUNDATION (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information 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 determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 20

A.M. QATTAN FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A.M. QATTAN FOUNDATION (CONTINUED)

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 an Auditors' Report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 21

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF A.M. QATTAN FOUNDATION (CONTINUED)

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 forms part of our Auditors' Report.

Use of our report

This report is made solely to the charitable company's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's Members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Members, as a body, for our audit work, for this report, or for the opinions we have formed.

Sudhir Singh FCA (Senior Statutory Auditor)

for and on behalf of MHA

Statutory Auditor London, United Kingdom

Date: 25 September 2023

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

Page 22

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income from:
Donations, legacies and grants
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
Total income
Expenditure on:
Raising funds
7
Charitable activities
8,9
(Gain)/ loss on foreign exchange
Total expenditure
Net (losses)/gains on investments
15
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
621,469
35,425
-
159,123
-
816,017
70,316
799,786
-
870,102
(134,932)
(189,017)
16,002,231
(189,017)
15,813,214		 Restricted
funds
2022
£
3,830,313
53,022
92,114
282,459
23,522
4,281,430
134,459
5,681,319
(3,614,374)
2,201,404
134,946
2,214,972
28,744,319
2,214,972
30,959,291		 Total
funds
2022
£
4,451,782
88,447
92,114
441,582
23,522
5,097,447
204,775
6,481,105
(3,614,374)
3,071,506
14
2,025,955
44,746,550
2,025,955
46,772,505		 Total
funds
2021
£
11,015,914
125,749
257,867
361,934
26,341
11,787,805
352,898
7,033,801
(343,733)
7,042,966
207,975
4,952,814
39,793,736
4,952,814
44,746,550

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 26 to 51 form part of these financial statements.

Page 23

2022 2022 2021 2021
Note £ £ £ £
Fixedassets
Tangible assets 14 26,751,090 25,301,254
Investments 15 15,741,678 14,770,659
Currentassets 42,492,768 40,071,913
Stocks 16 17,484 17,464
Debtors: Amounts falling due within one year 17 857,498 1,509,259
Cashatbank and in hand 23,24 6,652,592 7,332,392
7,527,574 8,859,135
Creditors: Amounts falling due within one
year 18 (960,589) (1,978,150)
Netcurrentassets 8,566,985 6,880,985
Totalassetslesscurrentliabllltles 49,059,753 46,952,898
Provisions for employees' benefits 19 (2,287,248) (2,206,348)
Totalnetassets 46,772,605 44,746,550
Charityfunds
Restricted funds
Unrestricted funds		 20
20		 30,957,226
15,815,279		 28,744,319
16,002,231
Totalfunds 46,n2,sos 44,746,550

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Cash flows from operating activities
Net cash used in operating activities
22
Cash flows from investing activities
Investment income
6
Purchase of tangible fixed assets
14
Proceeds from sale of investments
15
Purchase of investments
15
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at the end of the year
23		 2022
£
(18,158)
441,582
(493,967)
-
(151,182)
(203,567)
(221,725)
7,332,392
(458,075)
6,652,592		 2021
£
4,416,329
361,934
(4,416,663)
1,910,689
(1,810,518)
(3,954,558)
461,771
7,214,354
(343,733)
7,332,392

The notes on pages 26 to 51 form part of these financial statements.

Page 25

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. General information

The Foundation is a company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 1029450) and Registrar of Companies (Company Registration Number 02171893).

The Members of the Foundation are the Trustees named on page 1. In the event of the Foundation being wound up, the liability in respect of the guarantee is limited to £1 per Member of the Foundation.

The address of the registered office is given in the Foundation information on page 1 of these financial statements. The nature of the Foundation's operations and principal activities are detailed in the Trustees Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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) and the Companies Act 2006.

A.M. Qattan Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, although the functional currency is US dollars. The Charity is registered in the UK but conducts the majority of its business via a branch in Palestine, where US dollars is the preferred currency. Amounts presented in these financial statements are rounded to the nearest pound.

2.2 Going concern

The Trustees have assessed whether the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the Trustees have considered the Foundation’s forecasts and projection. After making enquiries, the Trustees have concluded that there is a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing its financial statements.

Page 26

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For donations to be recognised, the Foundation will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfillment of those conditions is within the control of the Foundation and it is probable that they will be fulfilled.

For legacies, entitlement is taken as the earlier of the date on which either: the Foundation is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Foundation that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Foundation has been notified of the executor's intention to make a distribution. Where legacies have been notified to the Foundation, or the Foundation is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy, the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the Foundation’s right to receive payment is established.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Foundation. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from government and other grants are recognised at fair value when the Foundation has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the Bank.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 27

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.4 Expenditure

All expenditure is accounted for on an accruals basis. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Foundation to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Foundation's objectives, as well as any associated support costs.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Other expenditure represents those items not falling into the categories above.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

2.6 Taxation

The Foundation is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Foundation is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 28

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.8 Investments

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price or the share of the Net Asset Value of the fund (if unlisted). All gains and losses are taken to the Statement of Financial Activities as they arise.

The Statement of Financial Activities includes all net gains and losses arising on revaluation and disposals throughout the year. As investments are revalued to fair value continuously, no realised gains or losses arise.

Investment properties are recorded at fair value at each reporting date with changes in fair value recognised in net (gains)/losses in the Statement of Financial Activities.

Investments held as fixed assets are shown at cost less provision for impairment.

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 29

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.12 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Foundation anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.13 Financial instruments

The Foundation only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity are as follows:

Investments - managed investments and investment properties are classified as basic financial instruments and are held at their fair value as detailed in Note 15.

Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 17. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 18. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

2.14 Pensions

The Foundation operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Foundation to the fund in respect of the year.

2.15 Termination payments

Termination benefits, including redundancy costs, are recognised when the Charity has the obligation to pay the benefits and they can be reliably measured.

Page 30

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.17 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the view of the Trustees in applying the accounting policies adopted, the following judgements have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the accounts:

Page 31

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Income from donations, legacies and grants

Unrestricted
funds
2022
£
Donations
621,919
Grants
(450)
Government grants
-
Total 2022
621,469		 Restricted
funds
2022
£
2,646,303
1,184,010
-
3,830,313		 Total
funds
2022
£
3,268,222
1,183,560
-
4,451,782

In the prior year, the Charity claimed funding from government support schemes in response to the coronavirus outbreak. The Charity furloughed its staff under the government's Coronavirus Job Retention Scheme and funding received of £NIL (2021 - £21,557) relates to staff costs in respect of those furloughed staff members. There are no unfulfilled conditions and other contingencies attaching to grants that have been recognised in income.

Donations
Grants
Government grants
Total 2021		 Unrestricted
funds
2021
£
6,317,527
26,230
21,557
6,365,314		 Restricted
funds
2021
£
3,061,296
1,589,304
-
4,650,600		 Total
funds
2021
£
9,378,823
1,615,534
21,557
11,015,914

Page 32

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4. Income from charitable activities

Unrestricted
funds
2022
£
The Mosaic Rooms
35,425
Culture and Education
-
Total 2022
35,425
Unrestricted
funds
2021
£
The Mosaic Rooms
45,420
Culture and Education
-
Total 2021
45,420		 Restricted
funds
2022
£
36,202
16,820
53,022
Restricted
funds
2021
£
61,956
18,373
80,329		 Total
funds
2022
£
71,627
16,820
88,447
Total
funds
2021
£
107,376
18,373
125,749

Page 33

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5. Income from other trading activities

Restaurant income
Restaurant income		 Restricted
funds
2022
£
92,114
Restricted
funds
2021
£
257,867		 Total
funds
2022
£
92,114
Total
funds
2021
£
257,867

Page 34

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. Investment income

Unrestricted
funds
2022
£
Rental income
132,542
Income from listed investments
-
Bank interest receivable
26,581
Total 2022
159,123
Unrestricted
funds
2021
£
Rental income
176,470
Income from listed investments
-
Bank interest receivable
276
Total 2021
176,746		 Restricted
funds
2022
£
77,040
74,032
131,387
282,459
Restricted
funds
2021
£
59,954
43,417
81,817
185,188		 Total
funds
2022
£
209,582
74,032
157,968
441,582
Total
funds
2021
£
236,424
43,417
82,093
361,934

Page 35

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Cost of raising funds

Unrestricted
funds
2022
£
Investment management costs
70,316
Restaurant costs
-
70,316
Unrestricted
funds
2021
£
Investment management costs
42,414
Restaurant costs
-
42,414		 Restricted
funds
2022
£
-
134,459
134,459
Restricted
funds
2021
£
-
310,484
310,484		 Total
funds
2022
£
70,316
134,459
204,775
Total
funds
2021
£
42,414
310,484
352,898

Investment management costs were incurred in respect of rental income on the investment property.

Page 36

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Analysis of expenditure on charitable activities - by fund

Unrestricted
funds
2022
£
The Mosaic Rooms
262,418
Culture and Education
282,926
Public Programme
254,442
Total 2022
799,786
Unrestricted
funds
2021
£
The Mosaic Rooms
364,287
Culture and Education
298,041
Public Programme
135,308
Total 2021
797,636		 Restricted
funds
2022
£
25,000
3,243,493
2,412,826
5,681,319
Restricted
funds
2021
£
-
4,523,410
1,712,755
6,236,165		 Total
funds
2022
£
287,418
3,526,419
2,667,268
6,481,105
Total
funds
2021
£
364,287
4,821,451
1,848,063
7,033,801

Page 37

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure on charitable activities - by type

The Mosaic Rooms
Culture and Education
Public Programme
Total 2022
The Mosaic Rooms
Culture and Education
Public Programme
Total 2021		 Activities
undertaken
directly
2022
£
204,817
986,461
916,986
2,108,264
Activities
undertaken
directly
2021
£
279,210
1,661,774
754,432
2,695,416		 Grant
funding of
activities
2022
£
25,000
569,907
-
594,907
Grant
funding of
activities
2021
£
35,000
750,748
-
785,748		 Support
costs
2022
£
57,601
1,970,051
1,750,282
3,777,934
Support
costs
2021
£
50,077
2,408,929
1,093,631
3,552,637		 Total
funds
2022
£
287,418
3,526,419
2,667,268
6,481,105
Total
funds
2021
£
364,287
4,821,451
1,848,063
7,033,801

Page 38

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure on charitable activities - by type (continued)

Analysis of support costs

Advertisement and promotion
Events and Activities
Governance costs
Insurance
Legal and professional fees
Maintenance and consumables
Other costs
Other staff costs
Premises costs
Subscriptions and membership fees
Transportation, travel and accomodation
Residencies and workshop expenses
Loss on the sale of fixed assets
Staff costs
Depreciation and impairments
 Total
funds
2022
£
28,978
6,211
71,368
47,236
82,680
350,500
200,834
34,650
173,014
8,498
12,661
-
1,015
3,777,934
1,380,865
1,379,592		 Total
funds
2021
£
28,776
2,758
32,040
22,785
84,375
267,020
174,968
23,874
85,902
3,357
4,046
40
-
1,539,765
1,282,931
3,552,637

10. Governance costs

Auditor's remuneration - Audit of the financial statements
Auditor's remuneration - Preparation of the financial statements
Auditor's remuneration - Under accrual of prior year fees
Auditor's remuneration - Other non-audit services
Auditor's remuneration - Audit of the Palestine financial statements		 2022
£
16,600
3,850
4,440
13,306
33,172
71,368		 2021
£
16,800
4,140
-
11,100
-
32,040

A review of Governance Costs has been undertaken in the year, and it has been considered appropriate to include Palestine audit costs in Governance costs.

Page 39

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. Summary of grants paid

Grants paid to institutions
Grants paid to individuals		 2022
£
398,943
195,964
594,907		 2021
£
562,266
223,482
785,748

An analysis of grants paid can be found below. Only grants paid over £10,000 are seperately disclosed.

Page 40

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Grants to institutions
Aida Youth Centre
Al Harah Theatre
Al Hoash
Al Jaroushiyeh Girls Group
Al Mada Association
Al Marsad- The Arab Centre for Human Rights in Golan
Art to Heart (Fan Min Al Qalb)
Atabet Fann
Birzeit University
Burj Alluqluq Social Centre Society
Dar Al Kalima Collage
First Ramallah Group (Sareyyet Ramallah)
Gaza Association for Culture and Art
General Union of Cultural Centers
Hakawi Association for Culture & Arts
Human Developmental Association
Jerusalemite Youth Cultural Forum
Khalil Sakakini Cultural Center
Naqsh Popular Art Association
Ni'lin Center for Cultural Work Charitable Society
Partners for Sustainable Development
Popular Art Centre
Qandeel for Arts and Culture
RIWAQ
Sakyia
Shagaf for Digital Expression
Shubbak
The Freedom Theatre
The Palestinian Circus School
The Palestinian Museum
Visual Arts Forum
Grants paid to institutions < £10,000
Grants to individuals		 2022
£
10,977
16,142
-
17,756
-
16,142
-
-
-
16,142
-
16,142
-
-
14,205
-
16,142
-
11,622
20,954
-
16,142
-
24,213
-
20,178
25,000
16,142
21,792
-
-
119,252
398,943
195,964
594,907		 2021
£
-
-
48,702
-
-
-
21,702
11,630
13,137
-
49,735
-
50,673
28,155
-
17,446
-
23,860
-
-
11,359
-
33,141
-
71,343
-
35,000
-
-
12,591
24,460
109,332
562,266
223,482
785,748

Page 41

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
1,997,320
25,408
159,213
2,181,941		 2021
£
2,581,893
22,534
282,835
2,887,262

Wages and salaries includes termination benefits totalling £133,396 (2021 - £489,996).

£56,100 (2021 - £136,081) relates to the accrual of statutory redundancy payments (known as Severance pay) for current staff in line with Palestine employment law. In the year, payments of £229,111 (2021 - £600,663) were made to employees. Please see Note 19 for more details.

£77,296 (2021 - £353,915) relates to non-contractual redundancy payments, which are ex-gratia payments. They were made to employees as a result of the restructure process in Palestine. The Trustees deemed the payments as in the best interest of the charity and were approved in the year, so there were no associated liabilities at the year end.

The average number of persons employed by the Foundation during the year was as follows:

2022 2021
No. No.
Employees 80 101

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £60,001 - £70,000 1 -
In the band £70,001 - £80,000 1 4
In the band £80,001 - £90,000 2 -
In the band £90,001 - £100,000 1 1

Key Management Personnel include the Trustees and the Senior Management Team (consisting of: the Director General, Al-Qattan Cultural Centre-Gaza Director, Culture & Education Programme Director, Director of Finance, Director of Administration and Public Programme Director). Total remuneration paid to Key Management Personnel amounted to £451,687 (2021 - £450,035).

Page 42

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 December 2022, expenses totalling £1,276 were reimbursed or paid directly to 1 Trustee (2021 - £ 286 to 2 Trustees) . Costs related to telephone and transportation costs.

14. Tangible fixed assets

Cost or valuation
At 1 January 2022
Additions
Disposals
Transfers between classes
Exchange differences
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
On disposals
Transfers between classes
Exchange differences
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
land and
buildings
£
27,207,266
328,899
-
(294,031)
2,843,842
30,085,976
3,319,755
971,995
-
(29,403)
424,010
4,686,357
25,399,619
23,887,511		 Furniture,
fittings and
books
£
3,034,355
158,539
(17,979)
-
360,681
3,535,596
1,772,393
295,609
(16,964)
-
213,971
2,265,009
1,270,587
1,261,962		 Computer
equipment
£
772,166
6,529
(8,254)
-
87,897
858,338
681,091
76,016
(8,254)
-
79,044
827,897
30,441
91,075		 Motor
vehicles
£
171,657
-
(18,563)
-
19,962
173,056
110,951
17,018
(18,563)
-
13,207
122,613
50,443
60,706		 Total
£
31,185,444
493,967
(44,796)
(294,031)
3,312,382
34,652,966
5,884,190
1,360,638
(43,781)
(29,403)
730,232
7,901,876
26,751,090
25,301,254

Page 43

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. Fixed asset investments

Cost or valuation
At 1 January 2022
Additions
Gains/ (losses) from fair value adjustments
Transfers between classes
Exchange differences
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
Other fixed asset investments		 Listed
investments
£
3,538,008
24,088
14
-
204,897
3,767,007
3,767,007
3,538,008		 Other fixed
asset
investments
£
11,232,651
127,094
(18,954)
264,628
369,252
11,974,671
11,974,671
11,232,651		 Total
£
14,770,659
151,182
(18,940)
264,628
574,149
15,741,678
15,741,678
14,770,659

Other fixed asset investments relate to;

The Other Fixed Asset Investments is measured at fair value at each reporting date. Fair value is attributed on the basis of valuations carried out by independent valuers. The Trustees review this valuation annually with any changes in the fair value being recognised under the heading 'Gains/(losses) on investments' in the Statement of Financial Activities incorporating income and expenditure account.

Following a decision by the Investment Committee, the Al-Matal Restaurant was leased to third party starting from 01.06.2022. As a result, a transfer has been recognised to reclassify the Al-Matal Restaurant building from fixed assets to investments (based on PwC recommendation).

16. Stocks

2022 2021
£ £
Finished goods 17,484 17,484

Page 44

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

17. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 January
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 December		 2022
£
21,516
66,691
769,291
857,498
2022
£
59,582
17,901
58,603
824,503
960,589
2022
£
1,702,729
755,596
(1,702,729)
755,596		 2021
£
29,315
87,941
1,392,003
1,509,259
2021
£
115,903
16,022
110,545
1,735,680
1,978,150
2021
£
1,940,433
1,702,729
(1,940,433)
1,702,729

18. Creditors: Amounts falling due within one year

At 31 December 2022, deferred income was recognised for income received during the financial year for projects taking place in the year ended 31 December 2023.

Page 45

(A Company Limited by Guarantee)

A.M. QATTAN FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Provisions

At 1 January 2022
Additions
Amounts used
Exchange differences		 Severance
pay
£
1,381,035
51,951
(229,111)
159,793
1,363,668		 Provident
pay
£
825,313
198,240
(198,543)
98,570
923,580		 Total
£
2,206,348
250,191
(427,654)
258,363
2,287,248

Severance pay

The Foundation in Palestine provides for its employees' severance pay according to the prevailing labour law.

Provident fund

The Foundation in Palestine contributes to the employees' provident fund.

Page 46

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds

Statement of funds - current year

Unrestricted funds
UK branch
Restricted funds
UK branch
Palestine Branch:
Total of funds		 Balance at 1
January
2022
£
16,002,231
234,958
28,509,361
28,744,319
44,746,550		 Income
£
816,017
36,202
4,245,228
4,281,430
5,097,447		 Expenditure
£
(868,037)
(25,766)
(2,177,703)
(2,203,469)
(3,071,506)		 Gains/
(Losses)
£
(134,932)
-
134,946
134,946
14		 Balance at
31
December
2022
£
15,815,279
245,394
30,711,832
30,957,226
46,772,505

Restricted grants and donations to the UK Branch received during the year were for specific exhibitions and their accompanying education and outreach progammes.

On 29 April 1998, A.M. Qattan Foundation - Palestine was established as a branch of A.M. Qattan Foundation for the specific purposes of managing the Foundation's work in Palestine and the projects being carried on out there.

The funds held by the branch are therefore treated as a separate restricted fund in the accounts of the Foundation in accordance with the treatment prescribed in the Charities SORP.

Page 47

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds (continued) Statement of funds - prior year

Unrestricted funds
UK branch
Restricted funds
UK branch
Palestine branch
Total of funds		 Balance at
1 January
2021
£
10,873,632
173,002
28,747,102
28,920,104
39,793,736		 Income
£
6,587,480
61,956
5,138,369
5,200,325
11,787,805		 Expenditure
£
(813,491)
-
(6,229,475)
(6,229,475)
(7,042,966)		 Gains/
(Losses)
£
(645,390)
-
853,365
853,365
207,975		 Balance at
31
December
2021
£
16,002,231
234,958
28,509,361
28,744,319
44,746,550

Page 48

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

21.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Unrestricted
funds
2022
£
Tangible fixed assets
3,407,000
Fixed asset investments
9,976,949
Current assets
2,586,911
Creditors due within one year
(155,581)
Provisions for liabilities and charges
-
Total
15,815,279
Analysis of net assets between funds - prior year
Unrestricted
funds
2021
£
Tangible fixed assets
3,407,000
Fixed asset investments
10,087,793
Current assets
2,614,747
Creditors due within one year
(107,309)
Provisions for liabilities and charges
-
Total
16,002,231		 Restricted
funds
2022
£
23,344,090
5,764,729
4,940,663
(805,008)
(2,287,248)
30,957,226
Restricted
funds
2021
£
21,894,254
4,682,866
6,244,388
(1,870,841)
(2,206,348)
28,744,319		 Total
funds
2022
£
26,751,090
15,741,678
7,527,574
(960,589)
(2,287,248)
46,772,505
Total
funds
2021
£
25,301,254
14,770,659
8,859,135
(1,978,150)
(2,206,348)
44,746,550

Page 49

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net (expenditure)/income for the period (as per Statement of
Financial Activities)
Adjustments for:
Depreciation & impairment charges
14
(Gain)/ loss on investments
15
Investment income
6
Loss on the sale of fixed assets
14
Decrease in stocks
16
Decrease / (increase) in debtors
17
(Decrease) / increase in creditors
18
Increase / (decrease) in provisions
19
Foreign exchange adjustment on fixed assets
14,15
Foreign exchange movement
Net cash provided (used in)/by operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2022
£
2,025,955
1,379,592
(14)
(441,582)
1,015
-
651,761
(1,017,561)
80,900
(3,156,299)
458,075
(18,158)
2022
£
6,652,592
6,652,592		 2021
£
4,952,814
1,282,932
(207,975)
(361,934)
4,736
3,007
(15,525)
(668,187)
(552,170)
(365,102)
343,733
4,416,329
2021
£
7,332,392
7,332,392

Page 50

A.M. QATTAN FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

24. Analysis of Net Debt

Cash at bank and in hand At 1
January
2022
£
7,332,392
7,332,392		 Cash flows
£
(4,294,430)
(4,294,430)		 Changes in
market
value and
exchange
rate
movements
£
3,614,630
3,614,630		 At 31
December
2022
£
6,652,592
6,652,592

25. Related party transactions

The Foundation was established by the late Abdul Mohsin and Leila Al-Qattan, and by their four children, who continue to be its sole Members (in addition to one grand-child, also named Leila). Members of the Al-Qattan family also provide some of the Foundation’s financial support. Members have no involvement in operational matters and only approve annual budgets based on the recommendations of the Board of Trustees, which has sole oversight over annual plans and operations. Members may also appoint Trustees (based on the recommendations of the Board’s Nominations and Appointment Subcommittee) and any new Members must also be approved by the Board of Trustees. The Board of Trustees may not comprise more than two Members, who must form a minority of Trustees.

A legally and operationally separate body named the Al-Qattan Charitable Trust was settled by the late Abdul Mohsin Al-Qattan in Jersey. The Trust was endowed to support the Foundation’s core expenses, as well as other similar charitable causes, from its annual income and it is governed by an independent investment board under the management of a Jersey Trust Company.

Contribution from Al Qattan Charitable Trust - Guernsey
Unrestricted contribution from Omar Al-Qattan
Unrestricted donation from Al-Qattan Charitable Trust
Restricted contribution from Najwa Al-Qattan Family Trust - Science Studio
Restricted contribution from Leenah Al-Qattan - Curatorial Unit
Restricted contribution from Leenah Al-Qattan - New Building Facilities
Restricted contribution from Omar Al-Qattan - New Building Facilities
Net assets with donor restriction - Omar Al-Qattan - New Building Facilities
Net assets with donor restriction - Leenah Al-Qattan - New Building
Facilities
Net assets with donor restriction - Leenah Al-Qattan - Curatorial Unit		 2022
£
-
2,646,303
-
-
123,518
79,096
292,877
66,964
-
-
3,208,758		 2021
£
2,161,047
3,801,599
300,000
69,056
171,521
-
-
330,818
72,716
113,556
7,020,313

Page 51