Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
Charity Registration No. 1112626
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees and Professional advisers | 1 |
| Trustees' report | 2 - 4 |
| Independent auditor's report | 5 - 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 - 18 |
Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
TRUSTEES AND PROFESSIONAL ADVISERS
| Charity number | 1112626 |
|---|---|
| Trustees | Mr A Habib |
| Dr A Habib | |
| Mr F Habib | |
| Registered office | 6 Grosvenor Street |
| London | |
| W1K 4PZ | |
| Accountants | Blick Rothenberg Limited |
| 16 Great Queen Street | |
| Covent Garden | |
| London | |
| WC2B 5AH | |
| Independent auditor | Blick Rothenberg Audit LLP |
| 16 Great Queen Street | |
| Covent Garden | |
| London | |
| WC2B 5AH | |
| Bankers | Barclays Bank plc |
| 1 Churchill Place | |
| Canary Wharf | |
| London | |
| E14 5HP | |
| UBS Wealth Management | |
| 5 Broadgate | |
| London | |
| EC2M 2QS | |
| Bank Audi Sal | |
| PO Box 11-2560 | |
| Beirut | |
| Lebanon | |
| Blom Bank | |
| Verdun - Rachid Karami St | |
| PO Box 11-1912 | |
| Riad El-Solh | |
| Lebanon | |
| Investment advisor | Alexis Habib |
| c/o Spinnaker Capital Limited | |
| 6 Grosvenor Street | |
| London | |
| W1K 4PZ |
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their report and financial statements of the Alexis and Anne-Marie Habib Foundation for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's Deed of creation dated 14 November 2005 , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Reference and administrative information
Alexis and Anne-Marie Habib Foundation is registered as a Charity with the Charity Commission, registration number 1112626 , its principal address being c/o Spinnaker Capital Limited, 6 Grosvenor Street, London W1K 4PZ .
The Trustees in office during the year and at the date of this report, together with the address of the Foundation' s principal and registered office, are as set out on page 1.
Structure, governance and management
The Foundation was created by a deed dated 14 November 2005 as a Charity exclusively for charitable purposes. The Foundation is managed by the Trustees. The administration is carried out by the Foundation 's employees based in Lebanon .
Under the Deed dated 14 November 2005 there shall be a minimum of three Trustees, there being no maximum number. The current Trustees are responsible for the induction of any new Trustees which involves awareness of a Trustee's responsibility, the governing document, administrative procedures, and the history of the Foundation . A new Trustee would receive a welcome pack which includes copies of the previous years' annual report and accounts, a brief history of the Foundation and a copy of the governing document. The pack will also include a copy of the Charity Commission guidance "Charity Trustee Welcome Pack" issued by the Charity Commission on 29 May 2018.
The Trustees examine the major risks that the Foundation faces every financial year and have developed systems to monitor and control these risks to mitigate any impact they may have on the Charity in the future.
The Trustees have systems in place to identify any conflicts of interest that may occur. When a conflict of interest arises, the relevant Trustee or Trustees agree to withdraw from any discussion and decision.
Objectives and activities for the benefit of the public
The Foundation seeks to advance, promote or carry out such charitable purposes as the Trustees in their absolute discretion see fit. The F oundation provides grants to charitable organisations and individuals in line with the F oundation's grant making policies detailed below.
The Foundation aims are to identify bright, academically talented, disadvantaged high school and university students in Lebanon and provide them with long term financial support so that they can maximise their educational potential. The F oundation’s grants are made to charitable organisations and individuals. The F oundation also aims to support development of the educational infrastructure within Lebanon, through the building and/or financing of schools targeted at disadvantaged children, and otherwise. The F oundation may also provide grants/loans for any other charitable purposes as determined by the Trustees.
In setting their objectives and grant making policy for the year, and in planning for the future, the Trustees have had due regard to the published guidance on the operation of the Public Benefit requirement of the Charities Act 2011, the Trustees have undertaken appropriate activities in furtherance of its aims for the public benefit.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Financial review
After making appropriate enquiries, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future and meet its liabilities as they fall due. 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.
The net movement in funds for the year amounted to a deficit of £787,445.12 (2022: surplus £258,287.65). The unrestricted funds amounted to £17,542,404.53 (2022: £18,329,849.65) at the balance sheet date. Gains on investments in the year were £187,861.86 (2022: losses £320,623.00).
In the year charitable grants were made totalling £ 1,476,346.81 (2022 : £1,356,181.00).
Reserves policy
The F oundation has been primarily funded through contributions from Spinnaker Capital Limited. No active fundraising from outside contributors is expected.
The Foundation does not have substantial reserves tied to fixed assets. The Foundation's free reserves are £10,290,477.98 (2022: £ 11,596,762.65). The Trustees have not set a policy for free reserves as the charity has no long term commitments and its assets are relatively liquid.
The F oundation aims to fund operating expenses and charitable distributions solely through the income on the investment of its investments . The F oundation aims to make annual charitable distributions equivalent to approximately 5% of its liquid assets, through long-term preferential term loans as well as scholarships and cash grants.
Investment policy and performance
The Trustees invest in bank fiduciary deposits, money market corporate bonds and hedge funds. This policy will be reviewed annually. All Trustees have control over the investments account. However, in practice, A Habib, one of the Trustees, will make the investment recommendations and these will be agreed upon at board meetings. The aim of the investments is to ensure that operating costs and grant making activity can be funded solely with the income on these liquid investments.
Future developments
The Foundation will continue to make grants to charitable organisations and individuals of approximately 5% per annum of its liquid assets to bright, academically talented, disadvantaged high school and university students in Lebanon and provide them with long term financial support so that they can maximise their educational potential .
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of Trustees' responsibilities
The Trustees 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).
The law applicable to charities in England and Wales 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 Foundation and of the incoming resources and application of resources of the Foundation for that year.
In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the Foundation's auditor is unaware; and
-
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 Foundation's auditor is aware of that information.
The Trustees' r eport was approved by the Board of Trustees.
.............................. Mr A Habib Trustee 06-Dec-24 | 12:28 GMT Dated: .........................
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ALEXIS AND ANNE-MARIE HABIB FOUNDATION
Opinion
We have audited the financial statements of Alexis and Anne-Marie Habib Foundation (the ‘Foundation’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion, the financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation 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 Foundation'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.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ALEXIS AND ANNE-MARIE HABIB FOUNDATION
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 auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the Trustees' r eport; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees 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 Foundation’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 cease operations, or have no realistic alternative but to do so.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ALEXIS AND ANNE-MARIE HABIB FOUNDATION
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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:
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience of the charity sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, Charities Act 2011, taxation legislation and data protection, employment and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non compliance throughout the audit.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested a sample of journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance. Auditing standards also limit the audit procedures required to identify non compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ALEXIS AND ANNE-MARIE HABIB FOUNDATION
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 auditor's report.
Other matter
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
Use of our report
This report is made solely to the Charity’s Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Hart FCA (senior statutory auditor) Blick Rothenberg Audit LLP
Chartered Accountants
Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH 06-Dec-24 | 12:29 GMT Dated: ..........................
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023
| Notes Income from: Donations 2 Investment income 3 Other income 3 Total income Expenditure Charitable activities 5 Total expenditure Net movement in funds before other recognised gains/ (losses) Revaluation of investments Loss on foreign exchange Net movement in funds Reconciliation of funds Fund balances brought forward Fund balances carried forward |
Unrestricted fund 2023 2022 £ £ 841.14 7,557.00 821,134.28 561,038.00 - 1,461,493.00 821,975.42 (2,030,088.00) (1,582,868.08) (1,451,177.35) (1,582,868.08) (1,451,177.35) (760,892.66) 578,910.65 187,861.86 (320,623.00) (214,414.32) - (787,445.12) 258,287.65 18,329,849.65 18,071,562.00 17,542,404.53 18,329,849.65 |
|---|---|
The notes on pages 12 to 18 form part of these financial statements.
Statement of recognised gains and losses
The statement of financial activities includes all gains and losses recognised in the year
Operating activities
All of the activities of the Charity are classified as continuing.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
BALANCE SHEET
AS AT 31 DECEMBER 2023
|Notes
Fixed assets
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
11
Net assets
Charity funds
Unrestricted funds
Total funds
|2023
2022
£
£
£
£
7,251,926.55
6,954,880.00
147,304.86
168,067.00
10,433,733.88
11,664,728.65
10,581,038.74
11,832,795.65
(290,560.76)
(236,033.00)
10,290,477.98
11,596,762.65
17,542,404.53
18,551,642.65
-
(221,793.00)
17,542,404.53
18,329,849.65
17,542,404.53
18,329,849.65
17,542,404.53
18,329,849.65
06-Dec-24 | 12:28 GMT|
|---|---|
The financial statements were approved by the Trustees on .........................
..............................
Mr A Habib Trustee
The notes on pages 13 to 18 form part of these financial statements.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
| Cash flows from operating activities Net income for the reporting period Decrease/(Increase) in debtors Decrease in creditors Investment income Net cash used in operating activities Investment income Purchase of investments Disposals of investments Net cash used in investing activities Change in cash and cash equivalents in the period Cash and cash equivalents at beginning of year Loss on foreign currency transactions Cash and cash equivalents at end of year Analysis of net funds Cash at bank and in hand |
2023 2022 £ £ £ £ (760,892.66) 578,910.65 20,762.14 (42,300.00) (167,265.24) (177,656.00) (821,134.28) (561,038.00) (967,637.38) (780,994.00) (1,728,530.04) (202,083.35) 821,134.28 561,038.00 (1,383,003.95) (2,845,766.00) 1,273,819.26 24.00 711,949.59 (2,284,704.00) (1,016,580.45) (2,486,787.35) 11,664,728.65 14,151,516.00 (214,414.32) - 10,433,733.88 11,664,728.65 10,433,733.88 11,664,728.65 |
|---|---|
The notes on pages 12 to 18 form part of these financial statements.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Alexis and Anne-Marie Habib Foundation is an unincorporated Trust. Its principle place of business is c/o Spinnaker Capital Limited, 6 Grosvenor Street, London W1K 4PZ. The Foundation is registered with the Charity Commission for England and Wales (Charity no. 1112626).
1.1 Accounting convention
The financial statements have been prepared in accordance with the Foundation's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued in October 2019 and rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the Foundation. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
1.2 Going concern
At the date of approving the financial statements, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future and meet its liabilities as they fall due. The Foundation is not a functional Charity having staff and overheads but makes grants from its net liquid assets . Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
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.
1.4 Income
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt . Investment income is recognised on an accruals basis as and when notified by the fund manager.
1.5 Grants payable
Provision is made for grant payments at the time the decision is taken by the Trustees, to the extent that this decision has been communicated to the recipient of the grant. Where grants have been determined by the Trustees but have not been notified to the recipient a contingent liability results and the grant expense is transferred to a designated fund until such time as it falls due.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Foundation's objectives, as well as any associated support costs.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including governance costs are allocated to applicable expenditure headings.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
1.7 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliabily by the Foundation; this is normally upon notification of the interest paid or payable by the instituition with whom the funds are deposited.
1.8 Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on disposals during the year and fair value adjustments at the year end.
1.9 Cash and cash equivalents
Cash and cash equivalents 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.
1.10 Financial instruments
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies (Continued)
1.11 Taxation
Alexis and Anne-Marie Habib Foundation is a registered Foundation and is not liable to income or capital gains taxes on its present activities.
1.12 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into s terling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into s terling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Financial Activities.
2 Donations
| Donations 3 Investments Bond interest receivable Bank interest receivable Money market deposit interest receivable 4 Other income Gain on foreign currency transactions |
Unrestricted funds 2023 £ 841.14 |
Unrestricted funds 2022 £ 7,557.00 Total Unrestricted fund 2022 £ 440,017.00 4,706.00 116,315.00 561,038.00 Total 2022 £ 1,461,493.00 |
|---|---|---|
| Total Unrestricted fund 2023 £ 556,661.01 28,880.09 235,593.18 |
||
| 821,134.28 | ||
| Total 2023 £ - |
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
5 Charitable activities
Analysis of charitable activities
| Grants (5.1) Administrative costs (5.2) |
Total 2023 £ 1,476,346.81 106,521.27 1,582,868.08 |
Total 2022 £ 1,356,181.00 94,996.35 1,451,177.35 |
|---|---|---|
5.1 Grants payable
| Grants to charitable organisations and individuals Grants to charitable organisations and individuals |
Grants to Institutions 2023 £ 1,339,617.81 1,339,617.81 Grants to Institutions 2022 £ 1,163,897.00 1,163,897.00 |
Grants to Individuals 2023 £ 136,729.00 136,729.00 Grants to Individuals 2022 £ 192,284.00 192,284.00 |
Total 2023 £ 1,476,346.81 1,476,346.81 Total 2022 £ 1,356,181.00 1,356,181.00 |
|---|---|---|---|
The foundation's grants are made to charitable organisations and individuals, the objective of which is to help further the education of academically talented, financially disadvantaged students in Lebanon.
Grants during the year in excess of £50,000 comprise:
| Université Saint-Joseph de Beyrouth, Lebanon University of Balamand, Lebanon American University of Beirut, Lebanon Lebanese American University, Lebanon The INSEAD Trust for European Management Education (UK Trust), UK Université Saint-Joseph de Kaslik, Lebanon Other grants to institutions less than £50,000 |
Total 2023 417,023.67 173,017.50 182,381.23 250,153.73 - 62,792.28 254,249.40 1,339,617.81 |
Total 2022 266,462.00 138,399.00 170,617.00 240,609.00 86,725.00 - 261,085.00 1,163,897.00 |
|---|---|---|
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
5 Charitable activities
(Continued)
5.2 Administrative costs
The breakdown of support costs and how these are allocated between Governance and Charitable Activities is shown in the table below.
| Support costs Cost type 2023 £ Accountancy fees 9,600.00 Audit fees 8,560.00 Bank charges and sundry expenses 7,795.91 Website expenses 3,917.61 Interest payable 264.86 Office rent & service charge 31,771.57 Wages and salaries - 61,909.95 |
Charitable activities 2023 £ - - - 44,611.32 44,611.32 |
Total 2023 £ 9,600.00 8,560.00 7,795.91 3,917.61 264.86 31,771.57 44,611.32 106,521.27 |
Total 2022 £ - 10,800.00 35,216.35 - 5,092.00 - 43,888.00 94,996.35 |
|---|---|---|---|
6 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Foundation during the year or the previous year. During the year ended 31 December 2023, no Trustees expenses have been incurred (2022 - £Nil).
7 Employment
Employee costs are as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Employment costs | 44,611.32 | 43,888.00 |
The average number of persons employed by the Foundation during the year was as follows:
| 2023 | 2022 |
|---|---|
| No. | No. |
| 2 | 2 |
No employee received remuneration amounting to more than £60,000 during the year of the previous year.
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
8 Fixed asset investments
| Listed investments Total 2023 2023 £ £ Market Value at 1 January 2023 6,954,880.00 6,954,880.00 Additions 1,383,003.95 1,383,003.95 Disposals (1,273,819.26) (1,273,819.26) Gain on disposal / revaluation 187,861.86 187,861.86 Market Value at 31 December 2023 7,251,926.55 7,251,926.55 Historical cost of investments at 31 December 2023 7,883,635.00 9 Debtors: amounts falling due within one year 2023 £ Other debtors 2,682.00 Prepayments and accrued income 144,622.86 147,304.86 10 Creditors: amounts falling due within one year 2023 £ Bank overdrafts - Other creditors 185.82 Grants accrued 268,774.94 Blick Rothenberg Limited - accountancy 9,600.00 Blick Rothenberg LLP - audit 12,000.00 290,560.76 11 Creditors: amounts falling due after more than one year 2023 £ Grants accrued - |
Total 2022 £ 4,429,761.00 2,845,766.00 (24.00) (320,623.00) 6,954,880.00 5,000,169.00 2022 £ 43,215.00 124,852.00 168,067.00 2022 £ 3.00 - 221,793.00 - 14,240.00 236,036.00 2022 £ 221,793.00 |
|---|---|
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Docusign Envelope ID: 032D4EA2-F8B9-4380-A846-881049B15A0D
ALEXIS AND ANNE-MARIE HABIB FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 12 Movement in funds Opening funds Incoming resources Resources expended 2023 2023 2023 £ £ £ Unrestricted funds 18,329,849.65 821,975.42 (1,582,868.08) 2022 2022 2022 £ £ £ Unrestricted funds 18,071,562.00 2,030,088.00 (1,451,177.35) |
Net gains / (losses) on investments Closing funds 2023 2023 £ £ (26,552.46) 17,542,404.53 2022 2022 £ £ (320,623.00) 18,329,849.65 |
|---|---|
13 Analysis of net assets between funds
| Analysis of net assets between funds | ||
|---|---|---|
| Unrestricted funds | Unrestricted funds | |
| 2023 | 2022 | |
| £ | £ | |
| Fund balances at 31 December 2023 are represented by: | ||
| Investments | 7,251,926.55 | 6,954,880.00 |
| Current assets | 10,581,038.74 | 11,832,795.65 |
| Current liabilities | (290,560.76) | (236,033.00) |
| Long term liabilities | - | (221,793.00) |
| 17,542,404.53 | 18,329,849.65 |
14 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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