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2023-12-31-accounts

REGISTERED COMPANY NUMBER: 04927787 (England and Wales) REGISTERED CHARITY NUMBER: 1103290

STRATEGIC REPORT, REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

EUROPE TRUST (A COMPANY LIMITED BY GUARANTEE)

EUROPE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS For The Year Ended 31 December 2023

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Page
Reference and Administrative Details 1
Strategic Report 2
Report of the Trustees 3 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 21
Detailed Statement of Financial Activities 22 to 23
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EUROPE TRUST REFERENCE AND ADMINISTRATIVE DETAILS For The Year Ended 31 December 2023

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TRUSTEES Dr. F Alaoui Bouarraqui (Chairman)
Dr. A Abushwaima
A J Koubaisy
S Bouabdallah
M Ibrahim
I Kady (resigned 1.2.24)
T Aydarus
S Almahdawi
Dr N Al-Kaddo
S Shiref (appointed 13.6.24)
COMPANY SECRETARY R Al Rawi
REGISTERED OFFICE MCC
Ratby Lane
Markfield
LE67 9SY
REGISTERED COMPANY NUMBER 04927787 (England and Wales)
REGISTERED CHARITY NUMBER 1103290
AUDITORS TC Group
31 High View Close
Hamilton Office Park
Leicester
Leicestershire
LE4 9LJ
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Page 1

EUROPE TRUST

STRATEGIC REPORT For The Year Ended 31 December 2023

The trustees present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS

The trust was able to generate sufficient incoming resources during the year to make donations in kind estimated to around £180,000 (2022: £170,000), by providing community based organisations in different European countries either rent free or reduced rate lease of the Trust's properties, in furtherance of its objects.

POLICY ON RESERVES

Europe Trust has total funds of £9,280,846 (2022: £8,913,995), the majority of which is represented by investment and mixed motive properties.

The properties are used to advance the objects of the charity, by providing a sustainable income to cover the charity's annual operational costs as well for the use of the beneficiaries of the charity.

The charity maintains sufficient liquid reserves to meet the day to day running costs of the charity. Net current assets at 31 December 2023 were £970,166 (2022: £1,570,706).

PRINCIPAL FUNDING SOURCES

The Trust generates income from a combination of rentals from investment properties and donations from other organisations and individuals.

The Trust has grown its property portfolio by acquiring donated properties over many years. No properties were donated to the charity during the year ended 31 December 2023.

INVESTMENT POLICY

The Trustees' stated investment policy is to invest in low to medium risk properties and real estate.

23/10/2024 Approved by order of the board of trustees on ............................................. and signed on its behalf by: ........................................................................... Dr. F Alaoui Bouarraqui - Trustee

Page 2

EUROPE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 December 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are:

As part of its strategy, the Charity invests its donations in property so that projects can be funded by a sustained level of income. Income earned from these properties is used to makes grants to organisations that further its objectives.

Public benefit

The section above entitled 'Objectives and activities' sets out the objects and aims of the Charity. The Trustees have considered this, in conjunction with the guidance contained in the Charity Commission's general guidance on Public Benefit and have concluded that the aims of the Charity continue to be charitable and are for the public benefit.

The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Grantmaking

The Trust makes grants as per its criteria following an application process by appropriate bodies as long as the application meets those criteria and as long as they abide by the laws and regulations of the land.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity, being a company limited by guarantee, is governed by its Articles of Association. The objects of the Company are contained in the Memorandum of Association. The Articles of Association include matters such as the election of members, appointment/ removal/ disqualification of Trustees and the powers held by the Trustees.

Recruitment and appointment of new trustees

The Board of Trustees is responsible for the recruitment of new trustees.

In seeking new trustees, the Trust seeks to identify people who are experienced individuals in the charity sector and/or businessmen who contribute in identifying/introducing the Trust and its projects and/or individuals that served in well-known organisations.

Page 3

EUROPE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 December 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The Board appoints an Executive Committee, headed by the Chairman of Europe Trust, consisting of trustees to manage the affairs of the Charity. The Committee meets at least twice a year to consider the performance of the charity and respond to emerging issues and risks. The Committee also considers grant applications to the charity and approves them accordingly.

The Executive Manager is accountable to the Executive Committee and is responsible for implementing the decisions of the Committee and the Board of Trustees.

Induction and training of new trustees

Trustees are introduced to their new role upon their appointment. The resources available at Charity Commission's website are introduced to them so that they can familiarise themselves in relation to their duties and responsibilities.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Income uncertainty due to potential reduced rental income resulting from fluctuations in the rental market or empty properties/rooms.

The trustees have spread their income-yielding property investments across different locations and property types. The properties are independently marketed and managed to maintain maximum occupancy and income recovery.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Europe Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Page 4

EUROPE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 December 2023

23/10/2024 Approved by order of the board of trustees on ............................................. and signed on its behalf by: ........................................................................... Dr. F Alaoui Bouarraqui - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EUROPE TRUST

Opinion

We have audited the financial statements of Europe Trust (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have 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.

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 Report of the Independent Auditors 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EUROPE TRUST

Matters on which we are required to report by exception

In the light of the 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 Strategic Report and the Report of the Trustees.

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

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.

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the charitable company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the charitable company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EUROPE TRUST

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Report of the Independent Auditors.

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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Dilun Mistry FCA (Senior Statutory Auditor) for and on behalf of TC Group 31 High View Close Hamilton Office Park Leicester Leicestershire LE4 9LJ

24/10/2024 Date: .............................................

Page 8

EUROPE TRUST

STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 December 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
Raising donations and legacies
4
Charitable activities
5
Charitable activities
Other
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
2023
Unrestricted
fund
£
17,558
1,376,166
1,393,724
18,424
18,424
954,759
623,690
1,596,873
570,000
366,851
8,913,995
9,280,846
2022
Total
funds
£
13,175
1,147,950
1,161,125
14,861
14,861
781,353
-
796,214
-
364,911
8,549,084
8,913,995

The notes form part of these financial statements

Page 9

EUROPE TRUST

BALANCE SHEET 31 December 2023

Notes
FIXED ASSETS
Tangible assets
14
Investments
Investment property
15
Social investments
16
CURRENT ASSETS
Debtors
17
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year 19
NET ASSETS
FUNDS
22
Unrestricted funds
TOTAL FUNDS
2023
2022
Unrestricted
Total
fund
funds
£
£
1,669
1,963
5,937,535
4,983,742
2,386,408
2,386,408
8,325,612
7,372,113
1,071,500
737,414
575,295
876,999
1,646,795
1,614,413
(676,629)
(43,707)
970,166
1,570,706
9,295,778
8,942,819
(14,932)
(28,824)
9,280,846
8,913,995
9,280,846
8,913,995
9,280,846
8,913,995

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 23/10/2024

............................................. F Alaoui Bouarraqui - Trustee

The notes form part of these financial statements

Page 10

EUROPE TRUST

CASH FLOW STATEMENT For The Year Ended 31 December 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Tax paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of investment property
Interest received
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period
2023
£
(523,043)
(10,228)
623,315
90,044
(383,793)
5,937
(377,856)
(13,892)
(13,892)
(301,704)
876,999
575,295
2022
£
44,233
(10,228)
-
34,005
-
812
812
(13,893)
(13,893)
20,924
856,075
876,999

The notes form part of these financial statements

Page 11

EUROPE TRUST

NOTES TO THE CASH FLOW STATEMENT For The Year Ended 31 December 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Losses on investments
Interest received
Interest paid
Increase in debtors
Increase in creditors
Net cash (used in)/provided by operations
2023
£
366,851
294
(570,000)
(5,937)
10,228
(334,086)
9,607
(523,043)
2022
£
364,911
346
-
(812)
10,228
(336,997)
6,557
44,233

2.

ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
At 1.1.23
Cash flow
£
£
876,999
(301,704)
At 31.12.23
£
575,295
876,999
(301,704)
575,295
Debt
Debts falling due within 1 year
Debts falling due after 1 year
(13,892)
-
(28,824)
13,892
(13,892)
(14,932)
(42,716)
13,892
(28,824)
Total 834,283
(287,812)
546,471

The notes form part of these financial statements

Page 12

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31 December 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Government grants

Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 15% on reducing balance Computer equipment - 15% on reducing balance

continued...

Page 13

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

Investment property and social investments

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Social investments are made in furtherance of the Charity's objects and any investment return is secondary to the charitable purpose supported by the investment. Currently all such investments represent property; the valuation policy applied to social investments is the same as for investment property.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

In the opinion of the trustees there are no activities giving rise to restricted funds.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Borrowings

Interest bearing borrowings are initially recorded at fair value, net of transaction costs. Interest bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount of the redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

continued...

Page 14

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Rents received
Interest receivable
2023
£
17,558
2023
£
1,370,229
5,937
1,376,166
2022
£
13,175
2022
£
1,147,138
812
1,147,950

Income from investments comprises the rental income receivable for the period from the Trust's properties located in the UK and in Europe.

4. RAISING DONATIONS AND LEGACIES

Insurance
Telephone
Postage and stationery
Bank charges
Depreciation
Interest payable and similar charges
Support costs
CHARITABLE ACTIVITIES COSTS
Charitable activities
GRANTS PAYABLE
Charitable activities
Grant
funding of
activities
Direct
(see note
Costs
6)
£
£
867,104
47,112
2023
£
3,122
938
1,519
328
277
10,228
2,012
18,424
Support
costs (see
note 7)
£
40,543
2023
£
47,112
2022
£
1,839
476
960
193
326
10,228
839
14,861
Totals
£
954,759
2022
£
28,311

5. CHARITABLE ACTIVITIES COSTS

6. GRANTS PAYABLE

continued...

Page 15

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

7. SUPPORT COSTS

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||||| |---|---|---|---| |Governance| |Management|costs|Totals| |£|£|£| |Raising donations and legacies|-|2,012|2,012| |Other resources expended|-|623,690|623,690| |Charitable activities|6,900|33,643|40,543| |6,900|659,345|666,245|

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8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Auditors' remuneration|10,080|9,300| |Depreciation - owned assets|294|346| |Other operating leases|9,600|7,800|

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9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Trustees' expenses|22,165|12,635| |10.|STAFF COSTS| |2023|2022| |£|£| |Wages and salaries|63,032|57,904| |Social security costs|519|722| |Other pension costs|616|616| |64,167|59,242|

----- End of picture text -----

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |Fundraising, marketing, administration|3|3|

----- End of picture text -----

No employees received emoluments in excess of £60,000.

continued...

Page 16

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

11. EXCEPTIONAL ITEMS

The Greece Tax Authority issued a report on a tax inspection of Europe Trust on 10/8/2020 for the years 2010, 2011, 2012 and 2013, and the report concluded that Europe Trust fall under the Offshore company law. The Greece Tax Authority have put a charge on the properties in Greece with taxes, fines and interests for each of the four years totalling 719,243.13 Euros.

As at the year end this amount has been accrued for at a year end rate of 1.1539 equating to £623,315 as the final sum has been communicated by the Greece Tax authorities.

The Trust has sought legal advice on the matter and has objected to the Tax Authority's decision, and has lodged a complaint with the court against the Tax Authority.

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Raising funds
Raising donations and legacies
Charitable activities
Charitable activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
fund
£
13,175
1,147,950
1,161,125
14,861
14,861
781,353
796,214
364,911
8,549,084
8,913,995

continued...

Page 17

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

13. PRIOR YEAR ADJUSTMENT

The comparative figures for the year ended 31 December 2022 have been restated to gross up income and expenses from properties included within investment properties, this amounted to £125,401.

14. TANGIBLE FIXED ASSETS

COST
At 1 January 2023 and
31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
15.
INVESTMENT PROPERTY
FAIR VALUE
At 1 January 2023
Additions
Revaluation
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
Fixtures
and
Computer
fittings
equipment
£
£
21,387
2,584
19,540
2,468
277
17
19,817
2,485
1,570
99
1,847
116
Totals
£
23,971
22,008
294
22,302
1,669
1,963
£
4,983,742
383,793
570,000
5,937,535
5,937,535
4,983,742

The trustees are of the opinion that a number of the properties should be classed as mixed motive properties; these are disclosed in note 14.

Investment properties and mixed motive investment properties are included at a combination of historic cost and revaluation on a property by property basis.

The properties have been valued by the trustees based on their research of similar properties. Following their assessment the trustees are of the opinion that the value shown in the accounts is materially fair.

Fair value at 31 December 2023 is represented by:

Valuation in 2023
Cost
£
570,000
5,367,535
5,937,535

continued...

Page 18

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

16. SOCIAL INVESTMENTS

MARKET VALUE
At 1 January 2023 and
31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022
Mixed
motive
properties
£
2,386,408
2,386,408
2,386,408

The charity holds a number of properties in the UK and overseas. The trustees are of the opinion that a number of the properties should be classed as mixed motive properties and therefore £4,604,438 (2022: £4,604,438) of the overall investments has been classified as such.

The charity furthers its objects via mixed motive investments as these are variously rented out at nil or below market rates to Mosques, Islamic Community Centres and Educational Institutions. Mixed motive investments include properties held by the charity with a value of £2,386,408 (2022: £2,386,408) where no investment income is received. The remaining £2,218,030 (2022: £2,218,030) mixed motive investments includes properties where some investment income is received. The trustees have assessed that the proportion of these properties yielding a gross rental income is approximately 23%.

The trustees have reviewed the value of the remaining properties included as social investments. Taking account of their usage, condition and local market for such properties they consider that the value included within the financial statements is materially fair.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accrued income
Prepayments
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 20)
Tax
Social security and other taxes
Other creditors
Accrued expenses
2023
£
1,070,563
937
1,071,500
2023
£
13,892
623,315
2,203
803
36,416
676,629
2022
£
736,562
852
737,414
2022
£
13,892
-
-
621
29,194
43,707

continued...

Page 19

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

19.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 20)
20.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loan
Amounts falling between one and two years:
Bank loan 1-2
Amounts falling due between two and five years:
Bank loan 2-5 yrs
21.
SECURED DEBTS
The following secured debts are included within creditors:
Bank loans
2023
£
14,932
2023
£
13,892
13,892
1,040
2023
£
28,824
2022
£
28,824
2022
£
13,892
13,892
14,932
2022
£
42,716

Bank loans are secured by way of charges against the assets to which they relate.

22. MOVEMENT IN FUNDS

At 1.1.23
£
Unrestricted funds
General fund
8,913,995
TOTAL FUNDS
8,913,995
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,393,724
(1,596,873)
TOTAL FUNDS
1,393,724
(1,596,873)
Net
movement
in funds
£
366,851
366,851
Gains and
losses
£
570,000
570,000
At
31.12.23
£
9,280,846
9,280,846
Movement
in funds
£
366,851
366,851

continued...

Page 20

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2023

22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.1.22
in funds
£
£
Unrestricted funds
General fund
8,549,084
364,911
TOTAL FUNDS
8,549,084
364,911
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,161,125
(796,214)
TOTAL FUNDS
1,161,125
(796,214)
23.
CAPITAL COMMITMENTS
2023
£
Contracted but not provided for in the financial statements
-
At
31.12.22
£
8,913,995
8,913,995
Movement
in funds
£
364,911
364,911
2022
£
380,000

24. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.

Page 21

EUROPE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 December 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Interest receivable
Total incoming resources
EXPENDITURE
Raising donations and legacies
Insurance
Telephone
Postage and stationery
Bank charges
Fixtures & fittings dep'n
Bank interest
Charitable activities
Wages
Social security
Pensions
Other operating leases
Insurance
Telephone
Legal and professional fees
Bank charges
Property expenses
Foreign exchange losses
Office services
Travel expenses
Other property expenses
Grants to institutions
Support costs
Management
Wages
Social security
Pensions
2023
£
17,558
1,370,229
5,937
1,376,166
1,393,724
3,122
938
1,519
328
277
10,228
16,412
55,006
449
431
9,600
1,115
335
35,378
117
609,144
(10,970)
543
29,959
135,997
47,112
914,216
6,688
58
154
6,900
2022
£
13,175
1,147,138
812
1,147,950
1,161,125
1,839
476
960
193
326
10,228
14,022
49,878
615
431
7,800
658
171
6,184
186
550,255
4,858
514
22,651
78,448
28,311
750,960
6,688
89
154
6,931

This page does not form part of the statutory financial statements

Page 22

EUROPE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 December 2023

Management
Governance costs
Trustees' expenses
Wages
Social security
Pensions
Auditors' remuneration
Insurance
Sundries
Telephone
Printing, postage and stationery
Membership fees
Bank charges
Fixtures & fittings dep'n
Exceptional items
Total resources expended
Net (expenditure)/income before gains and
losses
Realised recognised gains and losses
Realised gains/(losses) on investment
property
Net income
2023
£
22,165
1,338
12
31
10,080
223
375
67
109
1,590
23
17
623,315
659,345
1,596,873
(203,149)
570,000
366,851
2022
£
12,635
1,338
18
31
9,300
132
-
34
189
590
14
20
-
24,301
796,214
364,911
-
364,911

This page does not form part of the statutory financial statements

Page 23