Registered number: 03066579 Charity number: 1047432
The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report and financial statements For the year ended 31 December 2022
The AMAR International Charitable Foundation
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 - 2 |
| Trustees' report | 3 - 8 |
| Independent auditors' report on the financial statements | 9 - 12 |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 30 |
The AMAR International Charitable Foundation
(A company limited by guarantee)
Reference and administrative details of the Charity, its Trustees and advisers For the year ended 31 December 2022
| Trustees | Baroness Nicholson of Winterbourne, Chairman |
|---|---|
| Dr Theodore Zeldin | |
| Damon John Parker, Secretary | |
| Siddik Bakir | |
| Mohammed Hayder Hassan (resigned 16 May 2023) | |
| Sharlene Wells Hawkes | |
| Professor David Kerr | |
| Stanley Blake Parrish | |
| Bishop Alistair Redfern | |
| Francesco Giuseppe Michele Boardman | |
| Mohammed Ali Charchafchi | |
| Company registered number 03066579 Charity registered number 1047432 Registered office 1st Floor County House 100 New London Road Chelmsford Essex SW1H 9EX Principal operating office 80 Petty France London Company secretary Damon Parker Independent auditors Kreston Reeves LLP Chartered Accountants 2nd Floor 168 Shoreditch High Street London E1 6RA Bankers C Hoare & Co 37 Fleet Street London EC4P 4DQ National Westminster Bank PLC Bridge Street Hatherleigh Okehampton Devon EX30 3HZ Clydesdale Bank PLC 91 Gresham Street London |
Page 1
The AMAR International Charitable Foundation
(A company limited by guarantee)
Reference and administrative details of the Charity, its Trustees and advisers (continued) For the year ended 31 December 2022
Solicitors
Harcus Parker Melbourne House 44-46 Aldwych London WC2B 4LL
Page 2
The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report For the year ended 31 December 2022
The Trustees present their annual report together with the audited financial statements of the Charity for the 1 January 2022 to 31 December 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable 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 (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
The Charity also trades under the names The AMAR International Charitable Foundation.
Objectives and activities
a. Policies and objectives
AMAR’s key objectives remain the provision of public health and education, including training, to significantly underserved populations under continuing stress. AMAR’s purpose is to improve the quality of life and provide hope for those whom it serves and to enable a higher quality of public service by the local and national authorities. AMAR’s main focus of activities during the year remained in the Federal Republic of Iraq with small scale activity and support to Lebanon, Somaliland and Romania. AMAR also promotes religious freedom for all.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Achievements and performance
2022 saw AMAR ICF return to normal operations after the disruptions of COVID in the previous few years.
Social Welfare activity, as the behest of Basra Oil Company for the deprived communities around the Rumailah Oil Field, continued throughout. And again the Field Team continued to innovate ways, learned during lockdown, to make engagement on community health more effective. We were pleased when at the end of the year the project was put on a firmer footing through to 2024. Projects continue to include the operation of the Primary Health Care Centre in al Khora, operation of a mobile health clinic in North Rumailah, the operation of a Women’s Economic Empowerment centre (teaching vocational employment skills, such as hairdressing and sewing) and vocational training for community support workers from the local communities. Layered onto this were community health lectures, Health Education in Schools lecture series, and, of course, AMAR’s flagship programme, the Women Health Volunteers – the eyes and ears of the doctors and nurses of the clinics into the local villages. AMAR also delivered 500 Ramadan boxes to the poor and needy of the area, from a kind donation by the BP Coffee Shop fund.
The AMAR Basra Orphan’s schools, primary and secondary, continue to operate successfully, now in their 5th year. The school is grateful for the kind support and refurbishment it received from Basra Gateway Terminals.
The 2022 Windsor Dialogue Conference took place in Cheyneygates, in the cloisters of Westminster Abbey, by kind permission of the Dean and Chapter. We thank Prof Brett G. Scharffs and the BYU International Center for Law & Religion Studies for sponsoring the conference. The conference developed themes around the mental health of refugees and Internally Displaced Persons, as well as a statement from HH The Prince of the Yazidis.
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The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 December 2022
Achievements and performance (continued)
AMAR responded to the Ukraine crisis, leveraging its unique knowledge of Romania to provide support for Ukraine, both sending medical supplies forward across the border, in assisting displaced Ukrainian special needs children nearby, and in providing relief to Ukrainian children, especially special needs children, as refugees in Romania. AMAR’s Romania team ran a successful joint summer school for Ukrainian and Romanian special needs children (and parents) in Sighet Marmatei, in Maramures on the border. This noticeably improved the integration and welcome of the children and families. AMAR is most grateful for the grant from the Daily Mail’s MailForce charity, and the successful fundraising gala concert in Salt Lake City, Utah, of the ‘Halina’ musical theatre (history of the Holodomor).
The AMAR Shat al Arab hospital for women and child health continued its development. During the reporting period, work started on expanding the pharmacy and laboratory so that it could also operate as an out-patient clinic. We intend to open this in 2023.
Baillie-Gifford continued to provide funding to support psychiatric clinics in Khanke and Essayan (Yazidi) IDP camps in the Kurdistan Region of Iraq. AMAR on behalf of the beneficiaries remains most grateful.
AMAR was delighted to receive a grant from the Stirling Foundation to continue work of the AMAR Ashty (Peace) Choir of Yazidi Ladies in the IDP camps. The choir was restarted with regular singing lessons and rehearsals, building up to several concerts. The grant was matched by support in kind by the Sardar group of Iraq, who kindly provided classroom space and English classes, IT and business skills and other employment training. Group singing led to increased sense of dignity and self-confidence of, along with increased employability and agency for the young ladies. AMAR thanks the Stirling Foundation and Sardar Group for their combined generosity.
AMAR thanks its colleagues in the Iraq Britain Business Council, and its members, large and small, for their support over the year. We are most grateful.
AMAR thanks its public supporters over the year, in Iraq, in UK and in America, especially the US Friends of AMAR. Again, on behalf of the beneficiaries, we are most grateful to you all.
Financial review
AMAR seeks and receives funding from private, corporate and institutional donors as well as from UN agencies and other international institutions. Details of incoming resources and resources expended are given in the Statement of Financial Activities.
The funding of all AMAR services remains a challenge particularly for the emergency relief work in the camps and for IDPs everywhere as little funding is available from the UN and other governments.
The operating and fundraising environment has remained challenging, but the charity has retained the programmes throughout the year and looks forward to expanding as the situation improves.
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The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 December 2022
a. Going concern
The financial statements have been prepared on a going concern basis, which assumes that the charity will be able to meet its debts as they fall due. Overall income has increased from £1,205,462 in 2021 to £2,638,338 in 2022. During the year the charity had a deficit on unrestricted funds of £67,505 resulting in an increase of the overdrawn general fund at the year-end to £607,389.
Restricted funds brought forward from year ended 2021 together with new restricted funding have been utilised during the year ended December 2022 for their relevant purposes - at the 31 December 2022, restricted funds carried forward totalled £573,090 (2021 - £680,025). While debt increased over 2022 to £681,378 significant progress towards clearing this debt has since been made.
A legal impediment in Iraq that prevented AMAR from including the value of two property assets in Basra in AMAR’s financial statements has now been resolved. Consequently, the inclusion of the value of these assets in AMAR’s 2023 financial statements will have a positive impact on AMAR’s balance sheet. Both properties have been assessed as having a value in excess of £1m each.
The trustees believe it is appropriate to prepare the financial statements on this basis since: - steps have been taken to further address the unrestricted funds deficit; - there is underlying donor support which ensures AMAR’s financial viability and cashflow; - AMAR is continuing with its fiscal recovery plan. After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
Reserves are required to meet the working capital requirements of the charity. The trustees aim to hold general reserves equivalent to 2-3 months’ administrative costs. The trustees acknowledge the negative reserves - with the support of a major donor and the implementation of a fiscal recovery policy it is intended that the negative reserves will be cleared over a maximum of the next 5 years.
As a result of COVID, a deficit developed in 2021 and continued to grow in 2022. The trustees have approved a plan that will address this deficit by increasing charitable income and reducing overhead costs as summarised below:
-
In 2022, AMAR’s fundraising in Iraq started to recover from the impact of COVID and a slump in the price of oil. AMAR is now getting funds for projects in Afghanistan and for Ukrainian refugees in Romania. This expansion of AMAR’s work beyond Iraq is opening new fund-raising opportunities.
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AMAR was awarded a grant of £250,000 by a new donor in March 2022 to help Ukrainian refugees. This donation has been followed by other donations for Ukrainian refugees.
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AMAR was given several donations to help Afghan refugees in 2022. New donors have pledged donations if that project can be delivered successfully. Funding raising for the project is ongoing.
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The Basra Hospital opened as a polyclinic in August 2023. Recruitment of an imaging specialist to run our state-of-the art Siemens imaging suite is in progress. The income from the hospital will be used to help cover our costs in Basra.
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Funding has been obtained to support a Yazidi music project in the Kurdistan Region of Iraq. This project is being complemented by training project designed to educate young Yazidi victims of ISIS so that they can secure employment.
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A corporate donor has funded a £540,000 school refurbishment project in the Basra region that started in September 2023.
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A foundation provided £503k of funding in 2023 that will enable AMAR to refurbish and operate two Primary Healthcare Centres in the Kurdistan region of Iraq for one year.
-
AMAR’s primary and secondary schools in Basra are expected to generate a small surplus in 2023 that will help cover the salaries of AMAR’s staff in Basra.
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The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 December 2022
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b. Reserves policy (continued)
-
A number of new fund-raising appeals are either underway or are being planned:
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A major fundraising event in Utah.
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A $1m proposal for a Cultural Centre in Duhok is under development and being discussed with a major donor.
Finally, the Trustees recognised that our aim to cap overhead costs at 10% in our proposals to donors was too ambitious. New projects include overhead costs of 15%-20%, which is in line with the average for UK charities.
Structure, governance and management
The company was incorporated under the Companies Act 1985 on 9th June 1995 in England and Wales and is governed by its memorandum and articles of association. The company is a company limited by guarantee and not having a share capital, (company registration number 3066579), and is a registered charity (charity registration number 1047432). Each member’s guarantee liability is limited to £1.
The management of the charitable company is conducted at meetings held by the Trustees at regular intervals as described in its memorandum and articles of association. Trustees are recruited based upon The AMAR International Charitable Foundation’s (AMAR’s) fields of work and appointed by vote. All Trustees give their time voluntarily and receive no benefits from the charity.
The risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have or are in the process of being established to mitigate those risks. The major risks incurred are in respect of:
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staff operating in areas where there may be a threat to their personal security or general wellbeing;
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financial risks linked to the current social and economic situations;
During the reporting period, further progress was made in corrective action and strengthening of controls, following the dismissal of several field staff in the recent years. Appropriate reporting continued to be made to the relevant UK authorities. During the audit period, and in parallel with the 2020 audit, the Board has upgraded the charity’s financial controls, both in UK and Iraq, and is satisfied they are sufficient and indeed modelled on best practice.
During preparation for the 2020 audit, the Board considered a governance review, a structural review, and a review of the governing document. On consideration, the consensus was that a) the trustees had a sufficient understanding of areas in need of review; b) the existing structure (as both charity, and company limited by guarantee) remained fit for purpose - although if starting afresh, a Charitable Incorporated Organisation would have been an alternative; c) the governing document was broadly fit for purpose – minor work to refresh it is ongoing. The Board notes that management refer day-to-day decisions, which require Board-level clearance, to a quorum of two trustees, with all decisions logged and briefed at the next Board meeting. Bookkeeping support has been strengthened during the period to a level deemed sufficient by the trustees.
During the year the charity has continued to strengthen its governance processes, policies and procedures to ensure they either meet or exceed the relevant standards.
Plans for future periods
As we manage through COVID, AMAR will advance a major fundraising drive both to compensate for interrupted fundraising and to restore, improve and advance AMAR’s various charitable initiatives. A more detailed summary of the plans for the future has been included within the Reserve policy section of the Trustees' report, which also includes details of the Trustees' plans to reduce the deficit on unrestricted funds.
Page 6
The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 December 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 7
The AMAR International Charitable Foundation
(A company limited by guarantee)
Trustees' report (continued) For the year ended 31 December 2022
Statement of Trustees' responsibilities (continued)
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Baroness Nicholson of Winterbourne
Date: 27 September 2023
Page 8
The AMAR International Charitable Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The AMAR International Charitable Foundation
Opinion
We have audited the financial statements of The AMAR International Charitable Foundation (the 'charitable company') 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 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.
Emphasis of matter
We draw attention to note 2.2 in the financial statements, which indicates that there is some uncertainty in respect of the appropriateness of the going concern basis, in preparing these financial statements. This note sets out the conditions which may cast doubt on the charity's ability to continue as a going concern, but also the plans and measures in place to mitigate this risk. Our opinion is not modified in respect of this matter.
Page 9
The AMAR International Charitable Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The AMAR International Charitable Foundation (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, 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.
Page 10
The AMAR International Charitable Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The AMAR International Charitable Foundation (continued)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 145 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 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:
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Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
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Assessment of identified fraud risk factors; and
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Challenging assumptions and judgements made by management in its significant accounting estimates; and
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Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
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Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
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Reading minutes of meetings of those charged with governance; and
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Review of significant and unusual transactions; and
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Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
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Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we
Page 11
The AMAR International Charitable Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The AMAR International Charitable Foundation (continued)
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conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's members, 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 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.
Stephen Tanner BSc FCA (Senior statutory auditor) for and on behalf of
Kreston Reeves LLP
Chartered Accountants Statutory Auditor
London
Date: 28 September 2023
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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The AMAR International Charitable 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 and legacies 3 Charitable activities 4 Investments 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2022 £ 2,515,380 13,312 - 2,528,692 - 2,635,627 2,635,627 (106,935) 680,025 (106,935) 573,090 |
Unrestricted funds 2022 £ 61,748 47,693 205 109,646 1,718 175,433 177,151 (67,505) (539,884) (67,505) (607,389) |
Total funds 2022 £ 2,577,128 61,005 205 2,638,338 1,718 2,811,060 2,812,778 (174,440) 140,141 (174,440) (34,299) |
Total funds 2021 £ 1,179,004 26,458 - 1,205,462 27,017 1,570,599 1,597,616 (392,154) 532,295 (392,154) 140,141 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 16 to 30 form part of these financial statements.
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The AMAR International Charitable Foundation
(A company limited by guarantee) Registered number: 03066579
Balance sheet As at 31 December 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current liabilities / assets Total assets less current liabilities Provisions for liabilities Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
232,313 408,476 640,789 (681,378) |
2022 £ 6,290 6,290 (40,589) (34,299) - (34,299) 573,090 (607,389) (34,299) |
268,919 470,076 738,995 (532,923) |
2021 £ 8,386 8,386 206,072 214,458 (74,317) 140,141 680,025 (539,884) 140,141 |
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Baroness Nicholson of Winterbourne
Trustee Date: 27 September 2023
The notes on pages 16 to 30 form part of these financial statements.
Page 14
The AMAR International Charitable 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 provided by/(used in) operating activities 19 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 20 |
2022 £ (61,600) (61,600) 470,076 408,476 |
2021 £ 76,734 |
|---|---|---|
| 76,734 393,342 |
||
| 470,076 |
The notes on pages 16 to 30 form part of these financial statements
Page 15
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
1. General information
The AMAR International Charitable Foundation is a registered charity in England. The charity's registered address is 1st Floor County House, 100 New London Road, Chelmsford, Essex, United Kingdom, CM2 0RG.
The AMAR International Charitable Foundation is also a registered company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The AMAR International Charitable 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.
2.2 Going concern
The charity's activities, together with the factors likely to affect its future development performance and position are set out in the Trustees' Report. The principal risk facing the charity is its ability to generate sufficient unrestricted income to cover unrestricted expenditure incurred in fulfilling the objectives of the charitable company.
Plans have been put in place by Trustees and Management to ensure that the Charity's core activities are streamlined and the funding of these is improved. Full details of these plans can be found within the "Reserves policy" section of the Trustees' report.
Despite the overdrawn unrestricted funds, the Trustees have a reasonable expectation that the charity has adequate resources to continue for the foreseeable future, supported by events the took place after the balance sheet date, as detailed in note 25. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
2.4 Expenditure
Page 16
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
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 Charity 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 Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest 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 institution with whom the funds are deposited.
2.6 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.
Depreciation is provided on the following basis:
Fixtures, fittings and equipment - 25% reducing balance
2.7 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.
2.8 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 17
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
2.9 Liabilities and provisions
Liabilities 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 Charity 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.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 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 Charity 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 Charity 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.
Investment income, gains and losses are allocated to the appropriate fund.
3. Income from donations and legacies
| Restricted | Unrestricted | Total | Total |
|---|---|---|---|
| funds | funds | funds | funds |
| 2022 | 2022 | 2022 | 2021 |
| £ | £ | £ | £ |
Page 18
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
3. Income from donations and legacies (continued)
| Appeals and donations Grants and donations for programmes Government grants Total 2021 4. Income from charitable activities Rents and charges receivable Other income Total 2021 5. Investment income Bank interest received |
Restricted funds 2022 Unrestricted funds 2022 £ £ 2,515,380 61,748 - - - - 2,515,380 61,748 967,686 211,318 Restricted funds 2022 Unrestricted funds 2022 £ £ - 47,693 13,312 - 13,312 47,693 - 26,458 Unrestricted funds 2022 £ 205 |
Total funds 2022 £ 2,577,128 - - 2,577,128 1,179,004 Total funds 2022 £ 47,693 13,312 61,005 26,458 Total funds 2022 £ 205 |
Total funds 2021 £ 419,920 738,879 20,205 |
|---|---|---|---|
| 1,179,004 | |||
| Total funds 2021 £ 26,458 - |
|||
| 26,458 | |||
| Total funds 2021 £ - |
Page 19
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
6. Expenditure on raising funds
Costs of raising voluntary income
| Unrestricted funds 2022 £ Fundraising costs 1,718 Total 2021 27,017 |
Total funds 2022 £ 1,718 27,017 |
Total funds 2021 £ 27,017 |
|---|---|---|
7. Analysis of expenditure on charitable activities
Summary by fund type
| Direct costs Total 2021 |
Restricted funds 2022 Unrestricted funds 2022 £ £ 2,635,627 175,433 872,248 698,351 |
Total 2022 £ 2,811,060 1,570,599 |
Total 2021 £ 1,570,599 |
|---|---|---|---|
8. Analysis of expenditure by activities
| Direct costs Total 2021 |
Activities undertaken directly 2022 £ 2,811,060 1,570,599 |
Total funds 2022 £ 2,811,060 1,570,599 |
Total funds 2021 £ 1,570,599 |
|---|---|---|---|
Page 20
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
8. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Staff costs Depreciation Operating leases, rent of premises Financial assistance and advice Iraq office costs Auditors' remuneration Health care Education and reconciliation Emergency aid Other aid Fraud in Iraq (Profit)/loss on foreign currency Legal and professional Administration, travel and subsistence Staff training and development Total 2021 9. Auditors' remuneration Audit of overseas operation Fees payable to the Charity's auditor in respect of: Audit of the charity's annual accounts |
Activities 2022 £ 201,539 2,096 28,736 - 238,226 28,095 (146,794) 595,770 - 1,806,903 - (59,973) 36,911 69,645 9,906 2,811,060 1,570,599 |
Total funds 2022 £ 201,539 2,096 28,736 - 238,226 28,095 (146,794) 595,770 - 1,806,903 - (59,973) 36,911 69,645 9,906 2,811,060 1,570,599 2022 £ 15,405 22,195 |
Total funds 2021 £ 179,212 2,795 132,639 18,923 321,852 30,589 251,496 454,397 7,478 49,996 14,690 (18,374) 49,859 72,868 2,179 1,570,599 2021 £ 12,589 18,000 |
|---|---|---|---|
Page 21
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £ 183,342 15,170 3,027 201,539 |
2021 £ 158,152 16,850 4,210 |
|---|---|---|
| 179,212 |
The average number of persons employed by the Charity during the year was as follows:
| Overseas charitable activities UK administration |
2022 No. 20 5 25 |
2021 No. 30 4 |
|---|---|---|
| 34 |
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 | - | 2 |
| In the band £70,001 | - £80,000 | 1 | - |
The total employment benefits including employer pension contributions of the key management personnel were £147,792 (2021: £143,317).
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL).
Page 22
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
12. Tangible fixed assets
| Cost or valuation At 1 January 2022 Disposals At 31 December 2022 Depreciation At 1 January 2022 Charge for the year On disposals At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 Debtors Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ - 88,220 144,093 232,313 |
Fixtures, fittings and equipment £ 113,693 (32,790) 80,903 105,307 2,096 (32,790) 74,613 6,290 8,386 2021 £ 93,176 99,657 76,086 268,919 |
|---|---|---|
13. Debtors
Page 23
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
14. Creditors: Amounts falling due within one year
| Bank overdrafts Trade creditors Other creditors Accruals and deferred income Provisions At 1 January 2022 Amounts used |
2022 £ 9,421 389,436 141,841 140,680 681,378 |
2021 £ - 150,865 156,121 225,937 532,923 Provisions £ 74,317 (74,317) - |
|---|---|---|
15. Provisions
Page 24
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds
Statement of funds - current year
| Unrestricted funds General fund Restricted funds Africa fund AMAR Cancer fund APPG EMIR fund Escaping Darkness fund IDP camps Iranian refugees Giz BGC School Refurb Music project Yazidi NI Group Ukraine ROO - education ROO - health ROO - other Afghan fund Windsor Conference Zeldin fund Total of funds Statement of funds - prior year Balance at 1 January 2021 £ Unrestricted funds |
Balance at 1 January 2022 £ (539,884) 43,727 50,000 29,630 288,605 11,250 - 6,400 110,624 - - - 25,322 - - - - 94,467 - 20,000 680,025 140,141 Income £ |
Income £ 109,646 - - - 826,651 60,000 5,156 - - 140,265 104,708 20,000 - 333,419 595,770 232,954 16,514 153,255 40,000 - 2,528,692 2,638,338 Expenditure £ |
Expenditure £ (177,151) - - - (1,229,577) (71,250) (5,156) - - (33,734) (32,189) - - (135,688) (595,770) (232,954) (16,514) (242,795) (40,000) - (2,635,627) (2,812,778) Transfers in/out £ |
Balance at 31 December 2022 £ (607,389) 43,727 50,000 29,630 (114,321) - - 6,400 110,624 106,531 72,519 20,000 25,322 197,731 - - - 4,927 - 20,000 573,090 (34,299) Balance at 31 December 2021 £ |
|---|---|---|---|---|
Page 25
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
| 16. Statement of funds (continued) General fund (23,170) Restricted funds Afghan Fund - Africa fund 43,727 AMAR Cancer fund 50,000 APPG 29,630 EMIR fund 294,880 Escaping Darkness fund 40,000 IDP camps - Iranian refugees 6,400 Giz - LDS Mobile Lab unit 9,682 BGC School Refurb - Music project - Yazidi - NI Group 25,876 Ukraine - ROO - education - ROO - health - ROO - other - Afghan fund 35,270 Windsor Conference - Zeldin fund 20,000 555,465 Total of funds 532,295 |
237,776 105,000 - - - - 45,000 15,000 - - - 4,194 23,059 5,500 - - 507,776 178,294 29,750 - 54,113 - 967,686 1,205,462 |
(725,368) (10,533) - - - (6,275) (73,750) (32,102) - 110,624 (9,682) (4,194) (23,059) (5,500) (554) (12,020) (507,776) (178,294) (29,750) (35,270) (54,113) - (872,248) (1,597,616) |
(29,122) - - - - - - 17,102 - - - - - - - 12,020 - - - - - - 29,122 - |
(539,884) 94,467 43,727 50,000 29,630 288,605 11,250 - 6,400 110,624 - - - - 25,322 - - - - - - 20,000 680,025 140,141 |
|---|---|---|---|---|
Page 26
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds (continued)
Transfers
The transfers represent excess spend on restricted projects being funded from the general reserve.
Description of restricted funds
Afghan fund - to facilitate the evacuation of Afghan nationals at risk of persecution
Africa fund (formerly Yemen fund) - to improve the health of the population of Africa, originally the focus was to be on Yemen.
AMAR Cancer fund - to provide cancer screening services in Basra.
APPG fund - to enable research into prevention of sexual violence in conflict.
BGC School Refurb fund - to support the refurbishment of schools from grants provided by Basra Gas Company.
EMIR Hospital fund (formerly State of Kuwait Fund) - was set up to build, furnish, equip and operate a small charitable surgical hospital plus supporting services.
Escaping Darkness fund - to provide psychological support to displaced people in Northern Iraq. GIZ fund - to rehabilitate education / training centres in Iraq and provide relevant support, etc.
IDP Camps fund - to provide health services and education to IDP's in various camps in KRG primarily Khanke and Essyan.
Iranian Refugees fund - to collect donations to assist Iranian refugees or re-establish charitable activities in Iran.
LDS Mobile Lab unit - The project was setup to give a mobile laboratory, equipped with all tests, laboratory materials and 10,000 samples to test for COVID-19 in the refugee camps in Dohuk. Music Project fund - to promote music within IDP camps supported by AMAR.
NI Group - NI Group fund - was set up for medical care, social care and general assistance of the Iraqi citizen Shams Hisham.
ROO Education fund - to provide education and skills training centres in Iraq and provide relevant support etc.
ROO Health fund - to provide health services to communities local to ROO operations.
ROO Other - to support small scale projects within communities local to ROO operations. Somaliland - provision of a mobile health clinic and consumables in Somaliland.
Ukraine fund - to support Ukrainian refugees in Romania by supplying essential humanitarian supplies and provision of educational, medical and recreational activities.
Windsor Conference - Conference sponsored by ICLRS BYU, that was postponed due to COVID, however facilitated research in the margins.
Yazidi fund - to specifically support the Yazidi population within IDP camps.
Zeldin fund - to facilitate fundraising to assist health and educational charitable activities in counties of operation.
17. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 January 2022 £ (539,884) 680,025 140,141 |
Income £ 109,646 2,528,692 2,638,338 |
Expenditure £ (177,151) (2,635,627) (2,812,778) |
Balance at 31 December 2022 £ (607,389) 573,090 (34,299) |
|---|---|---|---|---|
Page 27
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
17. Summary of funds (continued)
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 January 2021 £ (23,170) 555,465 532,295 |
Income £ 237,776 967,686 1,205,462 |
Expenditure £ (725,368) (872,248) (1,597,616) |
Transfers in/out £ (29,122) 29,122 - |
Balance at 31 December 2021 £ (539,884) 680,025 140,141 |
|---|---|---|---|---|---|
18. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Restricted funds 2022 Unrestricted funds 2022 £ £ - 6,290 573,090 67,699 - (681,378) 573,090 (607,389) |
Total funds 2022 £ 6,290 640,789 (681,378) (34,299) |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Provisions for liabilities and charges Total |
Restricted funds 2021 £ - 680,025 - - 680,025 |
Unrestricted funds 2021 £ 8,386 58,970 (532,923) (74,317) (539,884) |
Total funds 2021 £ 8,386 738,995 (532,923) (74,317) 140,141 |
|---|---|---|---|
Page 28
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
19. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease in debtors Increase/(decrease) in creditors Increase/(Decrease) in provisions Net cash provided by/(used in) operating activities |
2022 £ (174,440) 2,096 148,629 36,432 (74,317) (61,600) |
2021 £ (392,154) 2,795 2,947,640 (2,481,547) - 76,734 |
|---|---|---|
| 20. Analysis of cash and cash equivalents Cash in hand 21. Analysis of changes in net debt Cash at bank and in hand Bank overdrafts repayable on demand |
At 1 January 2022 £ 470,076 - 470,076 |
2022 £ 408,476 Cash flows £ (61,600) (9,421) (71,021) |
2021 £ 470,076 At 31 December 2022 £ 408,476 (9,421) 399,055 |
|---|---|---|---|
22. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £3,027 (2021 - £4,210).
Page 29
The AMAR International Charitable Foundation
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
23. Operating lease commitments
At 31 December 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
2022 £ 500 - 500 |
2021 £ 11,020 500 |
|---|---|---|
| 11,520 |
24. Related party transactions
Damon Parker (a trustee of the Charity) is a director of the Iraq Britain Business Council (IBBC), a company limited by guarantee, which aims to promote business between Iraq and Britain. IBBC is a subtenant of The AMAR International Charitable Foundation and has been invoiced for the space occupied. AMAR also recharges IBBC for staff time spent on IBBC work. Staff services and overheads recharged totalled £14,123 (2021: £26,458), with £83.160 due at the year end (2021: £149,305). All these transactions have been made on an arm's length basis.
During the year, some Trustees made donations to the charity in line with the ordinary course of business.
25. Post balance sheet events
Subsequent to the year end, an ongoing legal matter was settled in respect of property and land ownership that was in dispute. On 6th August 2023, a conciliation agreement was signed, transferring the title for this land and property to The Amar International Charitable Foundation.
26. Controlling party
There is no ultimate controlling party.
Page 30