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2021-12-31-accounts

Palestine Association for Children's Encouragement of Sports (A company limited by guarantee)

Charity No. 1117085 Company No. 05840150

TRUSTEES ANNUAL REPORT & FINANCIAL STATEMENTS

FOR THE YEAR ENDED For the Year Ended 31 December 2021

PACES

Palestine Association for Children's Encouragement of Sports Year ended 31 December 2021 Contents

Page
Legal and Administrative Information 1
Trustees' Annual Report 2 - 5
Auditors' Report 6 - 9
Statement of Financial Activities 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 - 18

PACES Palestine Association for Children's Encouragement of Sports Trustees' Annual Report 31 December 2021

The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2021.

In this report we will refer to the Palestine Association for Children's Encouragement of Sports as "PACES".

Reference and administrative details

Company Number: 05840150 Charity Number: 1117085 Registered Office: 3rd Floor 20 King Street London RC2V 8EG Directors and Trustees: H A M Al Qattan Nahed Ahmad Abusneneh Resigned 02/02/2022 Dr M Barakat Resigned 15/02/2022 Ghassan Nuqul Haya M Qadoumi Helen Al Uzaizi Secretary: CLC Secretarial Services Limited Principal Bankers: Arab Bank Plc Mayfair London SE10 9EL Arab Bank Al Balad Branch PO Box 1481 Ramallah Palestine Auditors: Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD Solicitors: CLC Secretarial Services Limited 3rd Floor 20 King Street London RC2V 8EG

Page: 1

PACES Palestine Association for Children's Encouragement of Sports Trustees' Annual Report 31 December 2021

Structure, Governance and Management

Governing document

PACES is a company limited by guarantee governed by its Memorandum and Articles of Association dated 7 June 2006 and last amended on 5 April 2007 and is a registered as a charity with the Charity Commission. New membership is open to individuals and organisations interested in promoting the objects of the charity provided their application is approved by the trustees and the register of members is then duly signed. There is currently one member who agrees to pay up to £10 towards the costs of dissolution in the event of the charity winding up.

Appointment of trustees, induction and training

New trustees are appointed by existing trustees. One third (or the number nearest one third) of the trustees must retire at each AGM, those longest in office retiring first and the choice between any of equal service being made by drawing lots. A retiring trustee who remains qualified may be reappointed. The trustees have learned the duties as trustees through information obtained from external consultants and the charity commission, and are responsible for the induction and training of new trustees.

Organisation

The board of trustees administers the charity. The board meets quarterly but there are also regular email and telephone discussions by the board of trustees on an informal basis.

The day to day operations of the charity are managed by one of the trustees; Haya Qadoumi. Haya is based in the UK and often travels to Palestine, Jordan and Lebanon to arrange charitable activities and develop working relationships with organisations on behalf of the charity, and to meet with individuals and corporations in order to raise funds for the charity.

In addition to this H A M Al Qattan develops working relationships with organisations on behalf of the charity, and meets with individuals and corporations in order to raise funds for the charity.

Activities in Palestine, Jordan and Lebanon are supervised by 21 (2020: 28) full-time employees and 3 (2020: 9) part-time employees who coordinate activities with clubs and between over six hundred sporting and volunteer coaches.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity and its finances. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. The trustees regularly review these policies to ensure they are both up to date and effective. The trustees have considered the Covid-19 pandemic as a risk in the 2021 financial year and have taken measures to address this in the current year.

Objectives and activities and how our activities deliver public benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006, to have due regard to the Charity Commission's general guidance on public benefit.

The objects of the charity are:

The main objectives for the year continue to be the provision of sporting facilities, programs and activities, and healthy recreation of Palestinian children and young people anywhere in the world.

Page: 2

PACES

Palestine Association for Children's Encouragement of Sports Trustees' Annual Report (continued) 31 December 2021

The strategies employed to achieve the charity's objectives are:

PACES targets sports clubs and centres in underprivileged areas in Palestine, Jordan and Lebanon, and enrols marginalized boys and girls living in these areas free of charge to join the after-school training sessions. To ensure inclusion, all children are provided with a uniform and sports shoes upon their enrolment in the program. PACES also provides sport clubs and centres with the needed equipment to conduct the sports program such as balls and cones; thus, transforming them into safe and inviting community venues.

PACES provides safe havens for children living in marginalized communities in which they learn key life skills that enable them to interact independently and confidently without fear or hesitation and assist them to improve their socio-emotional composite scale. The program also encourages children to go to school and to stay away from the streets and build friendships in a healthy manner.

PACES uses sports as a viable tool to issues like gender equality and women empowerment, and makes serious efforts to change the social norms so girls can equally benefit from the sports program like boys.

PACES contributes to alleviating unemployment in marginalized communities and refugee camps amongst youth by hiring them as coaches and assistant coaches, and improving their well-being and socio-economic level. In addition, coaches acquire technical and life skills from the different training programs offered; these skills increase their employability in the job market.

PACES runs its program through local partners consisting of sports clubs and centres in different areas in each country. The model is designed in a way to ensure maximum reach and impact on communities; once partner clubs reach an appropriate level of capacity and are able to implement programs, PACES redistributes its resources to establish new partnerships, while maintaining contact with previous partners to ensure that the programs already in place continue to deliver the after-school program to targeted children.

Activities and achievements

In early 2021, despite the continued uncertainty caused by the global pandemic and political instability in the region, PACES resumed its Sports for Development program in Palestine, Jordan, and Lebanon. A number of extra-curricular activities and capacity building activities were first introduced to re-engage with all beneficiaries, and later on in June, the sports training sessions fully resumed in Palestine and Jordan. The program targeted communities in Palestinian refugee camps and clusters, and most marginalized areas in 23 cities and governorates across Palestine, Jordan and Lebanon.

PACES’ Sports for Development program targeted more than 4,000 boys and girls, 399 coaches and assistant coaches, and 85 local partners in 2021. After being on hold for over a year, the program focused on improving children’s physical strength and technical skills and enhancing various life skills to help them adjust after a very challenging year. To achieve that, multiple trainings and workshops were given to coaches and local partners before the start of the program.

In 2021, PACES also introduced multiple extra-curricular activities to support its core Sports for Development program in Palestine, Jordan and Lebanon. Children were offered activities in the fields of culture, arts, music, language, leadership, gardening, technology, entrepreneurship and community work. A total of 1,375 children participated in 51 extra-curricular activities from the 3 countries.

Page: 3

PACES

Palestine Association for Children's Encouragement of Sports Trustees' Annual Report (continued) 31 December 2021

Activities and achievements (continued)

PACES continued its community support in 2021 launched in 2020 as emergency response program. The projects targeted over 15,550 direct beneficiaries from all segments of society communities in Palestine, Jordan and Lebanon, and was carried out in partnership with local and international organizations and associations.

As usual, PACES established collaborative relationships with organizations and individuals who share the same goals and work towards serving local communities. The support, grants, and donations received go mainly towards the Sports for Development program, to enhance children and coaches' life skills and capacities.

Financial review

PACES raised approximately £2.2m (2020: £2.83m) in donations from individuals and organisations. Expenditure was £2.15m (2020: £2.66m) which is in line with the trustees' expectations. The charity has made a surplus of the year of £37k (2020: £163k). Donations were raised mainly by direct contact of the trustees with potential donors. The charity is aware of the need to protect potentially vulnerable donors and to follow the charity fundraising guidance published by the Charity Commision. The charity had no compliants from donors in relation to its fundraising methods in the year.

The trustees are extremely grateful to all donors for their generous contributions.

Reserves policy

The charity holds total reserves of £715k at year end, of which £303k are free reserves, being total reserves less amounts invested in tangible fixed assets and investments. The trustees have established that the level of free reserves PACES ought to have to support the overall general running of the charity should be equal to at least three months' worth of fixed expenditure. The trustees consider this policy to be adequate and it is the charity's intention to build on this reserve to support its charitable activities in the long term.

Plans for future periods

PACES will continue its Sports for Development program in 2022, targeting more beneficiaries in the same geographic areas in Palestine and Jordan. The program will include 3,400 children 340 coaches and assistant coaches and 79 local partners. In Lebanon, PACES will continue its community support program in partnership with local and international organizations and associations, with hopes to resume the program which has been suspended due to political instability in the 3rd quarter of the year.

We aim to expand and develop our mobile coaching clinics that we will upgrade and enhance the coaching abilities of local coaches and trainers. We will continue to develop more partnerships with other NGOs that specialise in educational and social issues.

Page: 4

PACES

Palestine Association for Children's Encouragement of Sports Trustees' Annual Report (continued) 31 December 2021

Statement of Trustees' Responsibilities

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

Company law requires the trustees to prepare financial statements for each financial 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 these 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 it 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.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Moore Kingston Smith LLP have indicated their willingness to continue in office and in accordance with the provisions of the Companies Act it is proposed that they be re-appointed auditors for the ensuing year.

This report is prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the Trustees

……………………………… H A M Al Qattan Trustee Date: 19/05/2022

Page: 5

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PALESTINE ASSOCIATION FOR CHILDREN’S ENCOURAGEMENT OF SPORTS

Opinion

We have audited the financial statements of Palestine Association for Children’s Encouragement of Sports (‘the charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and 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 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 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PALESTINE ASSOCIATION FOR CHILDREN’S ENCOURAGEMENT OF SPORTS

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of 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 trustees’ annual report. 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 trustees’ responsibilities statement set out on page 5, 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 7

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PALESTINE ASSOCIATION FOR CHILDREN’S ENCOURAGEMENT OF SPORTS

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 objectives of our audit in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Page 8

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PALESTINE ASSOCIATION FOR CHILDREN’S ENCOURAGEMENT OF SPORTS

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 company’s members 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 24/05/2022

Page 9

Total funds year ended 2020 £ 2,825,892 2,825,892 2,662,823 2,662,823 - 163,069 515,582 678,651
Restricted funds year ended 2020 £ - - - - - - - -
Unrestricted funds year ended 2020 £ 2,825,892 2,825,892 2,662,823 2,662,823 - 163,069 515,582 678,651
Total funds year ended 2021 £ 2,183,277 2,183,277 2,146,525 2,146,525 - 36,752 678,651 715,403
Unrestricted
Restricted		 funds year
funds year		 ended
ended		 Note
2021
2021		 £
£		 Income: Donations & gifts
2
2,183,277
-		 Total Income
2,183,277
-		 Expenditure on charitable activities: Cost of the operation of the charity
2,146,525
-		 Total Expenditure
3
2,146,525
-		 Net gains/(losses) on investments
6
-
-		 Net Income/(expenditure)
36,752
-		 Reconciliation of Funds Total funds brought forward at 1 January 2021
678,651
-		 Total funds carried forward at 31 December 2021
715,403
-		 The notes on pages 13 to 18 form part of these financial statements.

PACES Palestine Association for Children's Encouragement of Sports Balance Sheet as at 31 December 2021

Note
Fixed Assets
Tangible fixed assets
5
Investments
6
Current Assets
Stock
Debtors
7
Cash at bank and in hand
Creditors: Amounts falling due
within one year
8
Net Current Assets / (Liabilities)
Net Assets
Reserves
Unrestricted funds
9		 2021
£
38,605
373,430
412,035
36,815
66,610
313,893
417,318
(113,950)
303,368
715,403
715,403
715,403		 2020
£
50,235
373,430
423,665
-
58,841
389,384
448,225
(193,239)
135,127
515,582
515,582
515,582

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements were approved by the Board of Trustees on 19/05/2022 and signed on its behalf by:

………………………………

H A M Al Qattan

Trustee

Date:

The notes on pages 13 to 18 form part of these financial statements.

Company No. 05840150

Page: 11

PACES Palestine Association for Children's Encouragement of Sports Statement of Cash Flows as at 31 December 2021

2021
£
Cash flows from operating activities
Net cash provided by / (used in) operating activities
(66,211)
Cash flows from investing activities
Purchase of fixed assets
(9,280)
Purchase of fixed assets investments
-
Net cash used in investing activities
(9,280)
(75,491)
389,384
313,893
Reconciliation of net expenditure to net cash flow from operating activities
2021
£
Net income for the reporting period
36,752
Adjustments for:
Investment gains/(losses)
-
Depreciation charges
20,910
Decrease in debtors
(7,769)
(Increase)/decrease in stock
(36,815)
Increase/(decrease) in creditors
(79,289)
Net cash provided by operating activities
(66,211)
Analysis of Cash and Cash Equivalents
2021
£
Cash in hand
313,893
Total cash and cash equivalents
313,893
Analysis of Changes in Net Debt
At
At
01/01/2021 Cash flows 31/12/2021
Cash
389,384
(75,491)
313,893
Overdraft facility repayable on demand
(18)
18
-
389,366
(75,473)
313,893
Cash and cash equivalents at the end of the reporting
period
Cash and cash equivalents at the beginning of the reporting
period		 2020
£
185,122
(66,351)
-
(66,351)
118,771
270,613
389,384
2020
£
163,069
-
23,141
(9,405)
165,860
(157,543)
185,122
2020
£
389,384
389,384

Page: 12

PACES

Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021

1 Accounting Policies

Charity information

Palestine Association for Children's Encouragement of Sports is a company limited by guarantee incorporated and registered in England and Wales. The registered office is 3rd Floor, 20 King Street, London, RC2V 8EG.

1.1 Basis of preparation

The financial statements are prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The charitable company is a public benefit entity for the purpose of FRS102 and therefore the charity's financial statements have been prepared in accordance with Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic or Ireland (the FRS 102 Charities SORP) including Update Bulletin 2, the Companies Act 2006 and the Charities Act 2011.

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

The principal accounting policies, which are applied consistently, are set out below.

1.2 Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on donation income. The founder of the charity H A M AI Qattan has confirmed he intends to continue to provide on-going support to the charity in the form of donations and/or writing off any loans made by him to the charity should it be necessary to enable the charity to meet its working capital commitments, and the level of support expected to be in line with transactions in recent years as disclosed in note 10. In making this assessment the trustees have considered the impact of Covid-19 on the ability of the charity to raise donations. After making enquiries the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

1.3 Income

Voluntary income and donations are accounted for when receivable. Gifts in-kind are recognised when an equivalent amount has been expended. They are valued at the amount the Charity would have to pay in the open market for an equivalent item.

1.4 Expenditure

All expenses are accounted for on an accruals basis. Costs are allocated directly to the appropriate activity.

Expenditure incurred in connection with the specific objects of the charity is included under the heading charitable activities. Expenditure on Governance includes all costs relating to regulatory compliance and strategic direction of the charity.

1.5 Foreign Currencies

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction, the average rate being used as an approximation to this rate. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All exchange differences are dealt with through the statement of financial activities.

Page: 13

PACES

Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021

1 Accounting Policies (continued)

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Fixed assets and depreciation

All fixed assets with a value over £500 are capitalised at cost, being their purchase cost together with any incidental expenses at acquisition, and depreciated to their estimated residual value over their estimated useful economic lives as follows:

Computer equipment 3 years straight line basis. Fixtures & fittings 4 years straight line basis. Leasehold improvements 4 years straight line basis.

1.8 Fixed assets investments Investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.9 Stock

Stock represents kits and equipment for distribution as part of charitable activities. Stocks are stated at the lower of cost and net realisable value. Net realisable value is assessed not only in relation to 'selling' price but also with reference to the value in distribution to the beneficiairies in order to further the objects of the charity. Stock is expensed in the reporting period in which it is distributed.

1.10 Financial instruments

The company 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 charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables 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.

1.11 Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Page: 14

PACES Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021 (continued)

2 Income - Donations & gifts

During the year the Charity received donations of £2,183,277 (2020 - £2,825,892). £2,102,831 (2020 - £2,545,384) was received from individuals while £80,446 (2020 - £280,508) was received from organisations.

3 Total Resources Expended

Charitable Activities:
Coordinators' remuneration
Coaches' remuneration
Activities, sport kits and equipment
Travel, subsistence & accommodation
Other projects
Accountancy
Office costs, postage, printing & stationery
Telephone
Bank charges and interest
Training
(Profit) / loss on foreign exchange
Legal costs of running the charity
Depreciation (note 5)
AFC fees
Audit (excluding VAT)
Audit (irrecoverable VAT & under/(over)
accrual provisions)		 Staff
Costs
2021
£
36,000
637,101
-
-
-
-
-
-
-
-
-
-
-
-
-
-
673,101		 Other
Costs
2021
£
-
-
138,561
33,360
1,029,641
4,583
142,094
10,106
1,997
7,969
5,355
43,298
20,910
21,330
12,450
1,770		 2021
£
36,000
637,101
138,561
33,360
1,029,641
4,583
142,094
10,106
1,997
7,969
5,355
43,298
20,910
21,330
12,450
1,770
Total		 Staff
Costs
2020
£
154,960
936,341
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Other
Costs
2020
£
-
-
-
42,725
1,238,510
5,605
137,127
13,122
4,018
8,997
29,514
40,509
23,141
13,409
12,150
2,695
1,571,522		 2020
£
154,960
936,341
-
42,725
1,238,510
5,605
137,127
13,122
4,018
8,997
29,514
40,509
23,141
13,409
12,150
2,695
Total
1,473,424 2,146,525 1,091,301 2,662,823

The average number of staff employed during the year was 36 (2020 - 36).

Staff costs
Staff on UK payroll
Wages and salaries
Social security costs
Pension costs
Other salary costs
During the year there were 2 employees whose remuneration exceeded £60,000:-
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£110,000 - £119,999		 2021
109,179
13,274
-		 2020
87,252
10,828
-
122,453
1,152,376		 98,080
993,221
1,274,829 1,091,301
2021
-
-
-
1
1		 2020
1
-
1
-
-

No trustees were reinbursed for expenses in 2021 (2020: nil).

The Charity considers its key management personnel to be its trustees. The total amount payable to key management personnel was £236,965 (2020: £154,960).

Transaction with trustees and other related parties are disclosed in note 10.

Page: 15

PACES

Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021

4
Auditor's remuneration
Audit (excluding VAT)
Other services (excluding VAT)
5
Tangible fixed assets
Cost
At 1st January 2021
Additions
Disposals
At 31st December 2021
At 1st January 2021
Charge for the year
Deprecation on disposal
At 31st December 2021
Net Book Value
At 31st December 2021
At 31st December 2020
6
Investments
Brought forward
Additions
Disposals
Unrealised gains/(losses)
Carried forward		 Computer
Leasehold
Equipment
Improvements
24,053
43,048
6,642
-
-
-		 2021
£
12,450
2,022
14,472
Fixtures &
Fittings
17,445
2,638
-
20,083
4,361
5,021
-
9,382
10,701
13,084
2021
£
373,430
-
-
-
373,430		 2020
£
11,600
2,105
13,705
2021
£
84,546
9,280
-
30,695
43,048		 93,826
19,188
10,762
5,127
10,762
-
-		 34,311
20,910
-
24,315
21,524		 55,221
6,380
21,524		 38,605
4,865
32,286		 50,235
2020
£
373,430
-
-
-
373,430

Page: 16

PACES

Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021

7
Debtors
Gift aid
Prepayments
Other debtors
8
Creditors: amounts falling due within one year
Trade creditors
Accruals
Bank overdraft
Taxation and social security creditors
Grants payable
Amounts due to Trustee for loan (note 10)		 2021
£
56,308
7,662
2,640
66,610
2021
£
3,705
74,065
-
3,644
32,536
-
113,950		 2020
£
45,806
10,465
2,570
58,841
2020
£
8,888
26,998
18
2,786
154,549
-
193,239

Page: 17

PACES

Palestine Association for Children's Encouragement of Sports Notes to the Financial Statements For the year ended 31 December 2021

9 Unrestricted Funds

General Fund
Total Unrestricted Funds
General Fund
Total Unrestricted Funds		 1 January
2021
£
678,651
678,651
1 January
2020
£
515,582
515,582		 Incoming
Resources
£
2,183,277
2,183,277
Incoming
Resources
£
2,825,892
2,650,980		 Resources
Expended
£
(2,146,525)
(2,146,525)
Resources
Expended
£
(2,662,823)
(2,426,545)		 31 December
2021
£
715,403
715,403
31 December
2020
£
678,651
678,651

10 Related Party Transactions

H A M AI Qattan (trustee) loaned the charity £nil (2020: £nil) and donated £1,754,299 (2020 - £1,510,324) in the year. The amount due to the H A M AI Qattan at the balance sheet date was £nil (2020 - £nil).

The charity's trustee Haya Qadoumi received remuneration of £109,179 (2020: £87,252) during the year. The charity's trustee Nahed Ahmad Abusneneh received remuneration of £114,512 (2020: £56,880) during the year.

No other trustee received any remuneration in the financial year.

11 Members liability

The charitable Company is limited by guarantee and each of the members is bound to contribute a sum not exceeding £10 as may be required, in the event of the winding up of the Charity.

12 Taxation

As a charity, Palestine Association for Children's Encouragement of Sports is exempt on income and gains falling within Section 466-493 of the Corporation Tax Act 2010 to the extent that they are derrived from charitable activities.

13 Capital Commitments

There were no capital commitments not provided for in the financial statements for the year ended 31 December 2021 (2020: nil)

Page: 18