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2022-08-31-accounts

Charity registration number 1114343

Company registration number 05713430 (England and Wales)

THE FRIENDS OF BIRZEIT UNIVERSITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

THE FRIENDS OF BIRZEIT UNIVERSITY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees (who are directors of the Limited Dr A Owaineh
company)
Dr A Shalan
Dr D Baillie
Dr M Masri
Dr M Qato
Ms S Hamrouni
Secretary Mr O Shweiki
Charity number 1114343
Company number 05713430
Registered office 1 Gough Square
London
EC4A 3DE
Auditors Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
Bankers Unity Trust Bank plc
Nine Brindley Place
Birmingham B1 2HB
COIF Charity Deposit Fund
80 Cheapside
London
EC2V 6DZ
Solicitors Thomas Eggar
The Corn ExchangeTrust
Baffins Lane
Chichester
West Sussex
PO19 1GE
Honorary positions William Dalrymple Patron
Professor Khalil Hindi Patron
Professor David McLellan Patron
Rev Duncan MacPherson Patron
Professor Steven Rose Patron
The Rt. Hon. Lord Steel of Aikwood Patron
KT KBE DL
Juliet Stevenson Patron

THE FRIENDS OF BIRZEIT UNIVERSITY

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Notes to the financial statements 12 - 23

THE FRIENDS OF BIRZEIT UNIVERSITY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their annual report and financial statements for the year ended 31 August 2022.

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 charity's Articles of Association, the Companies Act 2006 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) (issued in October 2019).

Structure, governance and management

The Friends of Birzeit University (Fobzu) is a UK-based Charity. Fobzu was established in 1978, registered with the Charity Commission in 1979 and subsequently incorporated as a company limited by guarantee in 2006. Fobzu is governed in accordance with its Memorandum and Articles of Association.

Trustees, who are also directors of the company, are appointed for a 3-year term that may be renewed. When considering new trustees, desired skills and experience are assessed prior to a meeting between board members and the potential trustee. New trustees are inducted to the work and ethos of the charity. The Board of Trustees meets at least 4 times a year. Day-to-day management is delegated to the Development Director, who is accountable to and supervised by the Board. Committees and working groups are set up to address specific matters.

The major risks to which the charity is exposed, as identified by the trustees, are regularly reviewed and systems established to mitigate those risks. The major risks facing Fobzu are:

Objectives and activities

Fobzu’s objects are to “To promote the advancement of education of Palestinians seeking educational opportunities at higher and tertiary education institutions and/or through educational, community or cultural programmes in such ways as the Directors see fit.”

The charity is extending opportunities and providing access to education to young Palestinians at educational institutions in the West Bank and Gaza.

The principle strands of activities carried out by Fobzu for the public benefit are:

The Trustees have paid due regard to guidance issued by the Charity Commission regarding public benefit in deciding what activities the charity should undertake.

THE FRIENDS OF BIRZEIT UNIVERSITY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance

Academic Scholarships

The scholarship programme comprises scholarships at Birzeit University, and joint Fobzu-UNRWA scholarships for Palestinian refugee students. Scholarships are provided on the basis of financial need and academic merit.

Our working relationship with UNRWA has enabled Fobzu to securely provide support to one of the most marginalized sections of Palestinian society. Since academic year 2018/19, Fobzu scholarships supported through UNRWA are enabling Palestinian refugee students in financial need to access higher education at Birzeit University in the West Bank and universities in Gaza.

Fobzu's endowments are:

Annual Scholarships cover tuition fees, administration and a contribution to Fobzu’s running costs. Sponsoring donors are consulted on specific requirements such as: gender, place of residence, academic record, faculty or subject, special needs. Sponsors are kept informed of their student’s progress through personal letters and academic reports.

A Hardship Fund is also in place to provide small grants to cover books, accommodation, transportation and housing, or subsidise students' tuition fees at Birzeit University.

In 2021/22 Fobzu worked with UNRWA to provide 18 scholarships to Palestinian refugee students, of which 10 were female and 8 male. Five students were supported at Birzeit University and 13 at universities in Gaza.

In 2021/22, Fobzu provided an additional 8 scholarships to female students at Birzeit University through its partnership with Birzeit University and Welfare Association.

Educational Exchange

In 2021/22 Fobzu continued the Education, Occupation & Liberation Programme co-hosted with the University & College Union (UCU). Before the Covid-19 pandemic, the series of lectures and seminars were usually held at the Institute of Education at University College, London, bringing together Palestinian, UK and international scholars, students and practitioners to explore the challenges facing Palestinian education and its role in creating a free and flourishing Palestine. In 2021/22, Covid-19 restrictions continued so events were held online. Despite the challenges posed by the pandemic, this programme has continued to prove successful in furthering educational exchange, raising awareness, engaging new supporters and raising Fobzu’s profile.

In May 2022, Fobzu held the first Leila Ingrams Memorial webinar commemorating the life of leading campaigner for Palestinian rights and advocate for British-Arab understanding and promote the Doreen and Leila Ingrams Scholarship. Events held in 2021/22 have covered topics such as higher education in Gaza, the arbitrary detention of Palestinian students and the legacies of British colonialism in Palestine, with UK and Palestinian academics and practitioners.

In 2021/22, Fobzu was forced to postpone the Fobzu-Oxford University Middle East Centre Writing Residency for Palestinian Scholars due to the ongoing unpredictability of travel as a result of Covid-19. The Residency is dedicated to promoting Palestinian scholarship and building links between UK and Palestinian higher education by supporting an academic from a Palestinian university to complete a writing project at St Antony’s College, Oxford. The first Fobzu-Oxford Writer in Residence spent six weeks in Oxford during the summer of 2019. The Residency is planned to resume in the summer of 2023.

THE FRIENDS OF BIRZEIT UNIVERSITY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance (continued)

Advocacy and Campaigning

Fobzu continued to actively engage with other UK charities working for the rights and welfare of the Palestinian people, in order to raise further awareness about the obstacles to the right to education for Palestinians. In coalition with other charities, Fobzu has participated in meetings with the Minister of State for the Middle East and North Africa and the Shadow Minister for International Development. This has enabled Fobzu to promote Palestinian access to education among key policy makers. Fobzu has also joined public coalition initiatives to raise awareness about the threats to Palestinian rights, including public statements on support for Palestinian civil society facing repressive policies of Israeli military authorities and ending the blockade of Gaza.

Fobzu continues to also raise awareness about violations of Palestinian academic freedom and the right to education among UK higher education sector through outreach to UK academics and engagement with the University and College Union (UCU).

In order to raise awareness about the experience of Palestinian students studying under occupation, in 2021/22, Fobzu ran a student video competition at Birzeit University. The winning video was publicised on Fobzu’s YouTube channel.

Other activities

Fundraising

In 2021/22, Fobzu launched three fundraising appeals.

Fobzu continues to see greater potential for increasing income by reengaging former donors and extending outreach as well as pursuing institutional funding opportunities. Over the coming year, Fobzu aims to raise general funds in order to develop 3 priority areas:

  1. Fobzu scholarship programme and Hardship Fund

  2. Supporting UK-Palestinian educational exchange

  3. Raising awareness about the rights and needs of Palestinian students and educators

Volunteers’ support

Fobzu greatly appreciates the role played by its volunteers who are committed to the aims of the Charity. Their skills, and the work performed, deliver much valued support.

Online activity

Fobzu’s website is regularly updated with engaging written and audio-visual material. Our YouTube channel features videos of Fobzu events and other videos related to Fobzu’s programme. Fobzu has active Facebook and Twitter accounts that continue to grow in popularity and continues to attract more subscribers to its e- newsletter ‘Access Online’.

THE FRIENDS OF BIRZEIT UNIVERSITY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

Future plans

In 2023 Fobzu plans to consolidate its existing programme, while expanding in key areas. Working with Birzeit University, Welfare Association and UNRWA, Fobzu will continue to provide scholarships to Palestinian students in financial need.

Fobzu will also continue with its Education, Occupation & Liberation Programme, furthering exchange between Palestinian and UK academics and raising awareness in the UK higher education sector about the experience of Palestinian students and educators.

In 2023, Fobzu plans to host the second Fobzu Writer in Residence for six to eight weeks in the UK completing a writing project with access to UK academic networks and research facilities.

Fobzu will continue to work with other UK charities to advance advocacy for Palestinian access to education. We will conduct three fundraising campaigns as well as review our fundraising strategy to ensure the long-term sustainability of the charity. Building on its achievements in 2021/22, Fobzu hopes to expand its existing programme, prioritising the development of activities furthering educational exchange between UK and Palestinian academics, and enhancement of the scholarship programme.

Financial review

Fobzu recorded a deficit of income over expenditure of £11,112 in fiscal year 2022.

This is lower than the previous year, and is largely due to a single large unrestricted donation of £60,000 received in 2021, from an individual supporter.

Trustees continue to focus on the need to secure funds to sustain the ongoing scholarship and non-scholarship programmes. Given economic conditions, Fobzu has been reasonably successful in raising funds whilst sustaining an adequate reserves position to cover ongoing and anticipated commitments and programmes, particularly scholarships. Nevertheless, securing further funding streams remains vital to longer-term viability and the expansion of our programmes.

Fobzu has recently held an away day attended by its Director and Board to set out a long-term strategy around fundraising and programme development. As many of our scholarship recipients are graduating over the next two years, our forward financial commitments will decline rapidly, and this gives Fobzu an opportunity to invest in new scholarships and other programme activities.

The trustees have power to invest in such assets as they see fit. Treasury activities have the objective of providing adequate liquidity for Fobzu’s needs and of minimising risk in a cost-effective way.

Reserves Policy

The trustees aim for the level of reserves to be equivalent to approximately one year of management and administrative costs in unrestricted funds to provide for unforeseen circumstances, after accounting for our known scholarship commitments.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr A Owaineh Dr A Shalan Dr D Baillie Mr M Arafat Nomura (Resigned 28 January 2022) Dr M Masri Dr M Qato Ms S Hamrouni

THE FRIENDS OF BIRZEIT UNIVERSITY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

Auditor

The charity's auditor, Mercer & Hole, incorporated on 1 October 2022 to become Mercer & Hole LLP. The directors have consented to treating the incorporation of Mercer & Hole LLP as a continuation of the existing audit arrangement and in accordance with the charity's articles, a resolution proposing that Mercer & Hole LLP be reappointed as auditor of the charity will be put at a General Meeting.

Disclosure of information to auditor

So far as the trustees are aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the trustees have taken all the necessary steps that they ought to have taken as trustees in order to make them aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

Approved by the Board of trustees and signed on its behalf by:

Dr D Baillie

Chair Dated: 26 May 2023

THE FRIENDS OF BIRZEIT UNIVERSITY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees, who are also the directors of The Friends of Birzeit University for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that 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.

THE FRIENDS OF BIRZEIT UNIVERSITY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE FRIENDS OF BIRZEIT UNIVERSITY

Opinion

We have audited the financial statements of The Friends of Birzeit University (the ‘charity’) for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet 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).

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

THE FRIENDS OF BIRZEIT UNIVERSITY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRIENDS OF BIRZEIT UNIVERSITY

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 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.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and the Charities Act 2011.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The prior year's financial statements were not audited and therefore in these financial statements the comparative figures are not audited.

THE FRIENDS OF BIRZEIT UNIVERSITY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRIENDS OF BIRZEIT UNIVERSITY

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 auditor's 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.

Andrew Crook BA ACA (Senior Statutory Auditor) for and on behalf of Mercer & Hole Mercer & Hole LLP

31 May 2023

Chartered Accountants Statutory Auditor

21 Lombard Street London EC3V 9AH London EC3V 9AH

Mercer & Hole LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE FRIENDS OF BIRZEIT UNIVERSITY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022

Unaudited
Unrestricted Restricted Total Total
funds funds Year ended Period
31 August ended 31
2022 August 2021
Notes £ £ £ £
Income and endowments from:
Subscriptions and Donations 2 44,103 2,520 46,623 144,575
HMRC Gift Aid 2,283 275 2,558 8,710
Investment income 3 751 - 751 493
Other income 4 1,964 - 1,964 -
Total income 49,101 2,795 51,896 153,778
Expenditure on:
Raising funds 5 22,981 - 22,981 17,713
Charitable activities 6 28,915 28,568 57,483 69,566
Total expenditure 51,896 28,568 80,464 87,279
Net gains on investments 12 17,456 - 17,456 (3,806)
Net income/(expenditure) before transfers 14,661 (25,773) (11,112) 62,693
Gross transfers between funds 18 4,809 (4,809) - -
Net expenditure & net movement in funds 19,470 (30,582) (11,112) 62,693
Fund balances at 1 September 2021 129,427 164,254 293,681 230,988
Fund balances at 31 August 2022 148,897 133,672 282,569 293,681

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE FRIENDS OF BIRZEIT UNIVERSITY

BALANCE SHEET

AS AT 31 AUGUST 2022

Notes
Fixed assets
Tangible fixed assets
13
Investments
14
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Net assets
Income funds
Restricted funds
18
Unrestricted funds		 2022
£
13,137
119,084
132,221
(4,129)		 £
-
154,477
128,092
282,569
282,569
133,672
148,897
282,569		 2021
£
15,439
147,469
162,908
(5,650)		 £
-
136,423
157,258
293,681
293,681
164,254
129,427
293,681

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2022, although an audit has been carried out under section 145 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The accounts were approved by the Trustees on 26 May 2023

Dr A Owaineh Dr D Baillie Treasurer Chair

Company Registration No. 05713430

THE FRIENDS OF BIRZEIT UNIVERSITY

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

1 Accounting policies

Charity information

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Articles of Association, the Companies Act 2006 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 charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds comprise of general funds created by the accumulated surplus within the statement of financial activities. They are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds represent amounts received for a specific purpose, which have not yet been fully spent, on that purpose by the year end.

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity 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. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings on a time spent basis:

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include payroll and governance costs which support the programmes. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11 Reporting period

The comparative period was shortened to eight months in order to align with the academic year and therefore the two periods are not comparable.

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

2 Subscriptions and Donations

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
44,103
2,520
For the year ended 31 August 2021
105,859
38,716		 Total
2022
£
46,623		 Total
2021
£
144,575
144,575
3
Investment income
Unrestricted
funds
£
Income from listed investments
751
4
Other income
Unrestricted
funds
2022
£
Other income
1,964
5
Raising funds
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
£
£
£
Consultancy/contracted services
925
-
925
Office Costs
345
-
345
Bank charges
165
-
165
Website costs
846
-
846
Support costs
20,617
-
20,617
Rent and utilities costs
30
-
30
Travel costs
53
-
53
22,981
-
22,981
For the year ended 31 August 2021
Cost of Raising Funds
17,713
-
Total
2021
£
493
Total
2021
£
-
Total
2021
£
817
789
40
845
14,957
265
-
17,713
17,713

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

6 Charitable activities

Scholarship
Advocacy
Awareness
Academic
2022
2022
2022
2022
£
£
£
£
Awareness programme
-
-
-
-
Consultancy/contracted
services
209
260
91
49
Office costs
34
42
15
8
Bank charges
37
47
16
9
Website costs
191
238
84
45
Rent & utilities
7
8
3
2
478
595
209
113
Grant funding of activities
(see note 8)
39,010
-
-
-
Share of support costs (see
note 9)
4,661
5,799
2,040
1,098
Share of governance costs
(see note 9)
3,480
-
-
-
47,629
6,394
2,249
1,211
Analysis by fund
Unrestricted funds
19,061
6,394
2,249
1,211
Restricted funds
28,568
-
-
-
47,629
6,394
2,249
1,211		 Total
2022
£
-
609
99
109
558
20
1,395
39,010
13,598
3,480
57,483
28,915
28,568
57,483		 Total
2021
£
3,000
968
895
48
1,003
315
6,229
42,235
17,742
3,360
69,566
38,866
30,700
69,566

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

6 Charitable activities

(Continued)

For the year ended 31 August 2021

Scholarship
Advocacy
Awareness
Academic
£
£
£
£
Awareness programme
-
-
-
3,000
Consultancy/contracted services
304
203
197
264
Office costs
281
188
182
244
Bank charges
15
10
10
13
Website costs
315
211
204
273
Rent & utilities
99
66
64
86
1,014
678
657
3,880
Grant funding of activities (see note 8)
42,235
-
-
-
Share of support costs (see note 9)
5,573
3,727
3,607
4,835
Share of governance costs (see note 9)
3,360
-
-
-
52,182
4,405
4,264
8,715
Analysis by fund
Unrestricted funds
24,482
4,405
4,264
5,715
Restricted funds
27,700
-
-
3,000
52,182
4,405
4,264
8,715		 Total
2021
£
3,000
968
895
48
1,003
315
6,229
42,235
17,742
3,360
69,566
38,866
30,700
69,566

7 Description of charitable activities

Scholarship

Working with UNRWA and Birzeit University, the Fobzu scholarship programme supports Palestinian students in financial need at universities in the West Bank and Gaza.

Advocacy

Fobzu's work in Parliament and civil society, independently and in coalition with other UK charities and NGOs to promote Palestinian access to education.

Awareness

The Education, Occupation & Liberation events programme and other activities to raise awareness within the UK education sector and general public about the experience of Palestinian students and educators, the barriers they face to education and how they seek to overcome them.

Academic

Support for Palestinian academics and institutions of higher education through the Fobzu-Oxford Writing Residency for Palestinian Scholars and other work to promote Palestinian scholarship and educational exchange.

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

8 Grants payable

Scholarship

Grants totalling £39,010 (2021: £42,235) were awarded to 20 (2021: 20) individuals.

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
34,215
-
Audit fees
-
3,480
34,215
3,480
Analysed between
Fundraising
20,617
-
Charitable activities
13,598
3,480
34,215
3,480		 2022
£
34,215
3,480
37,695
20,617
17,078
37,695		 2021
£
32,699
3,360
36,059
14,957
21,102
36,059

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

No trustee was reimbursed during the year (2021: None).

11 Employees

Number of employees

The average monthly number employees during the year was:

2022 2021
Number Number
Employees 1 1
Employment costs 2022 2021
£ £
Wages and salaries 32,883 31,439
Other pension costs 1,332 1,260
34,215 32,699

There were no employees whose annual remuneration was £60,000 or more.

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

12 Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Revaluation of investments 17,456 (3,806)
13 Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 September 2021 200
At 31 August 2022 200
Depreciation
At 1 September 2021 200
At 31 August 2022 200
Carrying amount
At 31 August 2022 -
At 31 August 2021 -

14 Fixed asset investments

Listed
investments
Cash in
portfolio
£
Cost or valuation
At 1 September 2021
135,072
1,351
Valuation changes
17,456
598
At 31 August 2022
152,528
1,949
Carrying amount
At 31 August 2022
152,528
1,949
At 31 August 2021
135,072
1,351		 Total
£
136,423
18,054
154,477
154,477
136,423

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

15
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
16
Debtors
Amounts falling due within one year:
Other debtors
17
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 2022
£
152,528
2022
£
13,137
2022
£
769
3,360
4,129		 2021
£
135,072
2021
£
15,439
2021
£
2,290
3,360
5,650

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Current year

Balance at 1
September 2021
£
Adela Every
Scholarship
34,318
Doreen & Leila
Ingrams
Scholarship
11,802
Peter Holliday
Scholarship
34,423
Hardship Fund
7,199
Sarah Hayward
Scholarship
17,893
El-Gomati
Scholarship
22,170
Boulos and
Margaret Kaibni
16,295
Al-Shehabi Family
Scholarship
3,015
Leri Scholarship
1,935
Dominic Simpson
Memorial
Scholarship
15,000
W Barnaby
204
164,254		 Movement in funds
Income
Other
expenditure
Scholarships
Transfers Balance at 31
August 2022
£
£
£
£
£
-
-
(1,985)
-
32,333
1,475
-
(1,557)
-
11,720
-
-
(1,661)
-
32,762
1,320
(3,585)
-
4,934
-
-
(4,679)
(1,400)
11,814
-
-
(4,373)
(840)
16,957
-
-
(4,418)
(560)
11,317
-
-
(1,313)
(280)
1,422
-
-
-
(1,935)
-
-
-
(3,748)
(840)
10,412
-
-
(1,249)
1,046
1
2,795
-
(28,568)
(4,809)
133,672

In the year, £4,809 was transferred from restricted to unrestricted funds. Fobzu covers the overhead expenditure associated with managing the scholarship by charging a student admin for each scholarship to the relevant fund, and transferring it to unrestricted reserves. Additionally, one of the funds was changed from a restricted fund to an unrestricted fund. Their reserves were transferred to unrestricted reserves.

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

18 Restricted funds Comparative year

(Continued)

Balance at 1
September 2020
£
Adela Every
Scholarship
34,318
Doreen & Leila
Ingrams
Scholarship
10,854
Peter Holliday
Scholarship
34,423
Hardship Fund
9,821
Dr Salem H. Khamis
Scholarship
144
Sarah Hayward
Scholarship
24,164
El-Gomati
Scholarship
11,074
Boulos and
Margaret Kaibni
19,918
Al-Shehabi Family
Scholarship
2,782
Leri Scholarship
2,000
Awareness
programme
(200)
Distance Education
Capacity Building
-
Dominic Simpson
Memorial
Scholarship
-
W Barnaby
-
149,298		 Movement in funds
Income
Other
expenditure
Scholarships
Transfers Balance at 31
August 2021
£
£
£
£
£
-
-
-
-
34,318
2,840
-
(1,892)
-
11,802
-
-
-
-
34,423
1,730
-
(4,352)
-
7,199
1,950
-
(4,866)
2,772
-
-
-
(6,271)
-
17,893
12,500
-
(1,404)
-
22,170
-
-
(3,623)
-
16,295
1,880
-
(1,647)
-
3,015
2,000
-
(2,065)
-
1,935
-
-
-
200
-
2,150
(3,000)
-
850
-
15,000
-
-
-
15,000
1,784
-
(1,580)
-
204
41,834
(3,000)
(27,700)
3,822
164,254		 Movement in funds
Income
Other
expenditure
Scholarships
Transfers Balance at 31
August 2021
£
£
£
£
£
-
-
-
-
34,318
2,840
-
(1,892)
-
11,802
-
-
-
-
34,423
1,730
-
(4,352)
-
7,199
1,950
-
(4,866)
2,772
-
-
-
(6,271)
-
17,893
12,500
-
(1,404)
-
22,170
-
-
(3,623)
-
16,295
1,880
-
(1,647)
-
3,015
2,000
-
(2,065)
-
1,935
-
-
-
200
-
2,150
(3,000)
-
850
-
15,000
-
-
-
15,000
1,784
-
(1,580)
-
204
41,834
(3,000)
(27,700)
3,822
164,254
164,254

In the year, £3,822 was transferred from unrestricted to restricted funds. This relates to excess costs for restricted projects reimbursed from unrestricted reserves.

19
Analysis of net assets between funds
Unrestricted
Restricted
2022
2022
£
£
Fund balances at 31
August 2022 are
represented by:
Investments
148,897
5,580
Current assets/(liabilities)
-
128,092
148,897
133,672		 Total
Unrestricted
Restricted
2022
2021
2021
£
£
£
154,477
81,690
54,733
128,092
47,737
109,521
282,569
129,427
164,254		 Total
2021
£
136,423
157,258
293,681

THE FRIENDS OF BIRZEIT UNIVERSITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

20 Control

The Trustees have overall control of the activity.

21 Related party transactions

Unrestricted donations totalling £nil (2021: £5,550) were received from trustees in the year. There were no other related party transactions.