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2020-08-31-accounts

Company number: 06037771 Charity number: 1118966

The Galilee Foundation

Report and financial statements For the year ended 31 August 2020

The Galilee Foundation is registered in England and Wales under

Charity Commission number 1118966 and Companies House number 06037771

Address: Unit A, 1-3 Canfield Place, NW6 3BT, London, UK Telephone: +44 20 7993 8355 Email: info@galileefoundation.org.uk

www.galileefoundation.org.uk

The Galilee Foundation

Contents

For the year ended 31 August 2020

Reference and administrative information ....................................................................................... 1 Trustees’ annual report ..................................................................................................................... 3 Independent auditor’s report .......................................................................................................... 13 Statement of financial activities (incorporating an income and expenditure account) ................... 17 Balance sheet .................................................................................................................................. 18 Notes to the financial statements ................................................................................................... 20

The Galilee Foundation

Reference and administrative information

For the year ended 31 August 2020

Company number 06037771
Charity number 1118966
Registered office The Galilee Foundation
and operational Unit A, 1-3 Canfield Pl, South Hampstead
address London NW6 3BT
United Kingdom
Country of England & Wales
registration
Country of United Kingdom
incorporation
Trustees Trustees, who are also directors under company law, who served during the
year and up to the date of this report were as follows:
Marwan Bishara
Sawsan Asfari
Ms Leila Garadaghi
Yousef Bazian
Khalil Jahshan
Eyad Mahameed
Abdulrahman Elshayyal
Advisory Board Advisers do not have any formal legal responsibilities. The advisers who only
offer advice and support are as follows:
David Freeman Legal adviser
Dina Bseisu Adviser
Key Management Marwan Bishara Chairman
personnel Sawsan Asfari Executive Director
Maha Al Farra Communications & Fundraising Manager
Bankers Europe Arab Bank plc
35 Park Lane
Mayfair
London
W1K 1RB

1

The Galilee Foundation

Reference and administrative information

For the year ended 31 August 2020

Qatar National Bank_(closed as of October 2019)_
51 Grosvenor Street
London
W1K 3HH
Metro Bank
One Southhampton Row
London, WC1B 5HA
Accountant Tregannas Consultancy
175 Chatsworth Road
London
NW2 5QS
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditors
Invicta House
108-114 Golden Lane
London
EC1Y 0TL

2

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

The trustees present their report and the audited financial statements for the year ended 31 August 2020.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Trustees and organisational structure

Trustees of the Galilee Foundation serve until they stand down. New trustees are nominated to fill specific gaps identified by the Trustees. When new Trustees are appointed, they are provided with the information they need to fulfil their roles, which includes information about the role of Trustees and charity law. Trustees receive updates, progress reports and publications on a regular basis.

The Trustees meet physically to govern and monitor the progress of the Charity at least once a year. They are in touch regularly on email and video conference calls. The policies and procedures are reviewed and updated annually. The Trustees delegate the day-to-day running of the charity to the Foundation’s office in London.

Two employees, Maha Al Farra and Thomas Smith, have been running the charity and overseeing its fundraising, projects and budgets. Their positions are Communications & Fundraising Manager and Project Officer respectively. In November 2020, Thomas Smith resigned from Galilee Foundation. The employees’ work is overseen by the Co-Founder and Trustee Sawsan Asfari. Tregannas Consultancy oversees and manages the Foundation’s finances on a monthly basis. In 2019, Dianne Woodward came on board as a voluntary Communications & Media Outreach Consultant and has helped the Galilee Foundation tremendously through engagement with social media, content, fundraising and invaluable advice. The London based Trustees also lend support to the day-to-day running of the charity. The Trustees confirm that they have complied with the Charities Act 2006.

Grant making policy

The Foundation receives project proposals, however, its current projects have been solicited and developed together with the partner organisations. The Foundation drafts agreements that specify the responsibilities of its partners and the schedule of reporting. Partners provide regular progress reports and each project is visited at least once every two years by a representative of the Foundation. For sustainability of projects’ achievements, the Foundation seeks to develop longstanding partnership while maintaining rigorous monitoring and evaluation procedures.

3

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

Partner Due Diligence

We have been strengthening our partner due diligence framework since the introduction of GF’s formal policy document in 2019. We now require initial operational and financial assessments to be prepared for all new partners before we enter into any grants arrangements or memoranda of understanding. We have developed a new Monitoring & Evaluation framework for the ongoing assessment and internal audit of our partners.

Coronavirus Update

Since March 2020, The Galilee Foundation has taken necessary precautions as per Government virus control measures for its staff i.e. both employees have been working from home. While we did not foresee these measures necessarily adversely impacting our day-to-day operational activities in the UK since much of the work was already done digitally, there were repercussions. The challenge was to co-ordinate remote digital working and recreate the mutually supportive office atmosphere in order to maintain morale and productivity. This was partially achieved with frequent virtual meetings, both regular and ad hoc, between staff, trustees, partners and volunteers etc using different digital tools depending on the reason for communication and the personnel involved. Since the control measures are likely to continue into much of 2021 the strategies for improving the efficacy of remote working are still evolving and we seek to improve and streamline the non ideal but necessary experience for all involved.

The pandemic also strongly affected the activities of our partners, who had to substitute inperson workshops with remote workshops and run new scholarship and graduation events as multiple small, socially distanced celebrations, often outdoors.

Our students were impacted by the challenges of remote learning, availability of the infrastructure and technology to access this and the quality of provision by teachers operating in an unfamiliar environment. Some of them also experienced increased financial hardship due to the economic effects of national lockdowns.

The virus control measures have, however, impacted our challenge fundraising events as they have been cancelled. We have mitigated this by hosting as well as participating in virtual fundraising events such as the Move4Jerusalem and Big Give Campaign. In April 2020 we also set up a Covid19 Appeal for students and their families who have lost their income due to the shutdown in their country.

Principal Risks and uncertainties

The Trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems are in place to reduce and mitigate the exposure to risks. A cash flow summary is kept and regularly reviewed and updated. The Trustees have identified the following as

4

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

the principal risks facing the Foundation and have controls in place for their active management:

Objectives and activities

The Galilee Foundation’s objectives are to further such charitable objectives as the Trustees in their absolute discretion think fit and include the following:

(1) TO ADVANCE THE EDUCATION AT ALL LEVELS OF PALESTINIANS IN OR LIVING IN ISRAEL AND THE PALESTINIAN TERRITORIES, REGARDLESS OF GENDER OR FAITH, IN PARTICULAR BUT NOT EXCLUSIVELY BY ORGANISING AND ENCOURAGING EDUCATION, CULTURE, HERITAGE, ART, SCIENCE AND RESEARCH INITIATIVES;

(2) TO RELIEVE THE POVERTY OF PALESTINIANS IN OR LIVING IN ISRAEL AND THE PALESTINIAN TERRITORIES, REGARDLESS OF GENDER OR FAITH, IN PARTICULAR BUT NOT EXCLUSIVELY BY THE PROVISION OF ADVICE, TRAINING AND SUPPORT.

The Galilee Foundation’s general areas of operation are Israel and Palestine.

To work towards these objectives, the Foundation identifies and makes grants to registered, reputable, non-political, and non-sectarian charitable organisations and research

5

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

institutions for existing or new projects that meet the Foundation’s objectives. These policies have not changed during the year.

In deciding what activities the charity should undertake, the Trustees have paid due regard to guidance issued by the Charity Commission.

The Galilee Foundation’s vision is to contribute to breaking the cycle of poverty and inequality faced by many Palestinian citizens of Israel as well as those in Palestine. The Foundation believes strongly that access to education is the key to making this vision a reality.

Fundraising Statement

The Galilee Foundation is able to harness the goodwill and incredible generosity of donors from across the world through the work we undertake to provide a Higher Education to Palestinian youth. We generate funds from a wide range of UK and international donors. This includes individual one-off donations, institutional funding as well as Gift Aid. These funds are raised by the trustees, staff, volunteers and individuals who fundraise in support of the Galilee Foundation. The Galilee Foundation received several generous donations from foundations such as the Asfari Foundation and Arab Centre Research and Policy Studies to support its projects. The Galilee Foundation also received a number of smaller donations from our new initiatives with our online boutique, Amazon Smile, and Facebook Donate. We also received generous donations from those who took part in our Move4Jerusalem Campaign, Covid19 Appeal, and Big Give Campaign.

We communicate regularly with our supporters through newsletters, appeals, social media and emails. We provide a comprehensive picture of our activities on our website at: www.galileefoundation.org.uk as well as our social media channels and we are available to support via phone or email.

The Galilee Foundation is registered with the Fundraising Regulator and works in a way that is compliant with the Code of Fundraising Practice.

We have not received any complaints relating to fundraising. Should this happen, GF employees will record this digitally and discuss with our trustees to review.

The staff manage and monitor the fundraising work undertaken by others. Any volunteer or freelancer that works with us is required to sign a Confidentiality Agreement which we implemented in 2019. The staff also do an informal induction of activities to all new volunteers.

6

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

Project Activities in 2019/20

The Galilee Foundation’s projects bring positive and lasting changes to thousands of young people through our scholarship programmes, training, access to quality education and cultural activities. The impact of the projects supported by the Foundation has been immense.

The Foundation renewed its support to most of its existing partners and continued its work towards achieving its objective of expanding the base of its beneficiaries:

7

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

Future Plans

In 2021, the Foundation plans to establish an alumni programme for our students so we can keep in touch with them once they graduate and monitor our impact. We will continue to develop the Scholarship Programme to enhance its training activities and efficiency. We will be reviewing our project partners with the possibility of a new partnership with Hewar.

In terms of fundraising, we will have a one-year fundraising strategy in place with the aim of diversifying our funding reaching out to trusts and foundations internationally as well as corporates. We are expanding operationally as we have hired a part-time Communications

8

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

Officer and will have a new part-time Grants Manager beginning in January 2021 with the aim of having solid systems and processes in place.

The Foundation continues to conduct strategic reviews to ensure that its donations help those in need most effectively.

2021 already indicates that the pandemic will be with us, vaccine rollout notwithstanding, for many more months, and that a return to the old normality is unlikely for the foreseeable future. The Galilee Foundation will need to be flexible to adapt to the uncertain changes ahead, and the impacts these will have on operations in general and fundraising in particular.

In the first instance we must knit together a new team working remotely, by developing our team building strategies for such an unfamiliar environment and look to seize opportunities as well as meet challenges. In the second we must encourage all stakeholders to recognize opportunities in adversity and contribute innovative ideas for fundraising or otherwise to exploit them, whether in lockdown or not. We also need to support our partners as they grapple with the local challenges that lie ahead, some of which are yet unpredictable. Finally we must recognize that it is our beneficiaries, the young people whose lives we aim to change for the better, who are most impacted by our success or failure and do everything in our power to ensure their success.

Financial Review

The Foundation continues to receive interest payments from the generous endowment fund donated by the State of Qatar for the provision of university scholarships.

Total expenditure of the Foundation on projects, generating funds and operational costs from 31 August 2019 until 31 August 2020 was USD1,300,603 while the majority of the Foundation’s expenditure went towards the projects, totalling USD1,258,513. The Scholarship Programme remains the Foundation’s core and largest project, with the majority of project expenditure allocated to it.

Investment Policy

The Galilee Foundation has an Investment Committee comprised of the Chairman, Executive Director and a Trustee with over three decades of financial experience. The Investment Committee advises the board on appropriate investments, monitor performance, recommend the appointment of advisers, liaise with advisers, and report to the board. The Investment Committee mandate also manages the investment portfolio on a low risk, low volatility basis, with a view to generating income over the long term. Before each investment or de-investment decision is made, the investment committee consults with at least three outside financial advisors to ensure maximum diligence.

9

The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

The objective of the Foundation’s current investments portfolio is to ensure capital preservation and generate investment income by seeking to produce financial returns at acceptable low level of risk. The Endowment Fund is in a separate account and is invested in state bonds and some blue chip shares in the amount that does not exceed 15 percent of the total. The results over the past decade have been quite satisfactory. The interest on the investments of this fund is used primarily for the Foundation’ s Scholarship Programme.

Reserves Policy and Going Concern

The Galilee Foundation is currently dependent on a range of sources of income to sustain its activities. Previously, the Galilee Foundation would hold a biennial fundraising gala dinner. In October 2019, the Galilee Foundation replaced the gala dinner with a joint fundraiser with the Andrea Bocelli Foundation in order to secure restricted funds for our programmes. In addition to these events, Galilee generates income from its investments, receives annual donations from a few foundations and several individual donors. During the year an online shop was created, and revenues were generated from this.

The final grant (for the academic year 2019/2020) under our 10-year agreement with the Qatar Foundation has been made. The Galilee Foundation has reserves of USD495,000 which we have used for the 2020/2021 academic year. We intend to increase our fundraising income from other foundations and continue to offer financial support in future years. Should we not raise USD450,000 we will continue to offer financial support but to fewer students.

The Foundation plans its fundraising in advance having a 24 month view of cash flow.

To avoid closure if funding difficulties were to happen to the Foundation, the Board of Trustees has agreed to keep a certain level of financial reserves to ensure that its main operations can continue for a period of 12 months. It has been calculated that reserves of USD127,772 would be needed to continue operating at a minimal level for at least 12 months.

The Foundation’s consolidated balance sheet remains strong with net current assets of USD1,351,169. The trustees have reviewed the circumstances of the Galilee Foundation and consider that adequate resources continue to be available to fund its activities for the foreseeable future. The trustees are of the view that the Galilee Foundation is a going concern.

Audit information

The Trustees confirm that there is no relevant information of which the charitable company’s auditor is unaware. The Trustees have taken all reasonable steps to make themselves aware of any relevant audit information.

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The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

Remuneration policy for key management personnel

The Trustees consider the board of Trustees and the senior management team the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in Note 2 to the accounts. There are currently two part-time employees and their pay is determined by the Executive Director and Chairman. In January 2021, a third part-time employee will be employed.

Statement of responsibilities of the trustees

The trustees (who are also directors of The Galilee Foundation for the purposes of company law) are responsible for approving the trustees’ annual 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 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:

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The Galilee Foundation

Trustees’ annual report

For the year ended 31 August 2020

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 August 2020 was 7. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 3 March 2021 and signed on their behalf by

Sawsan Asfari Executive Director & Trustee

12

Independent auditor’s report

to the members of

The Galilee Foundation

Opinion

We have audited the financial statements of Galilee Foundation (the ‘charitable company’) for the year ended 31 August 2020 which comprise the statement of financial activities, balance sheet, 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 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

13

Independent auditor’s report

to the members of

The Galilee Foundation

Other information

The other information comprises the information included in the trustees’ 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.

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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

14

Independent auditor’s report

to the members of

The Galilee Foundation

in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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 the 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 judgment and maintain professional scepticism throughout the audit. We also:

15

Independent auditor’s report

to the members of

The Galilee Foundation

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Orchard (Senior statutory auditor) 19 March 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

16

The Galilee Foundation

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 August 2020

Note
Income from:
2a
2b
3a
9
13a
Reconciliation of funds:
Donations and legacies
Charitable activities
Scholarship programme
Net gains / (losses) on investments
Net income before net (losses)/gains on
investments
Total funds carried forward
Other projects
Raising funds
Total expenditure
Charitable activities
Scholarship programme
Other projects
Investments
Total income
Expenditure on:
Other trading activities
Other trading activities
Net (expenditure)/income before other
recognised gains and losses
(Losses)/gains on foreign exchange
Transfers
Net movement in funds
Total funds brought forward		 Unrestricted
$ 18,285
45,000
13,500
7,429
172,247		 Restricted
$ 447,402
546,967
270,000
-		 2020
Total
$ 465,687
591,967
283,500
7,429
172,247		 Unrestricted
$ 44,320
43,979
85,809
-
123,000		 Restricted
2019
Total
$ $ 361,705
406,025
440,282
484,261
953,450
1,039,259
-
-
-
123,000
1,755,437
2,052,545
-
15,379
761,626
816,603
1,187,860
1,259,334
1,949,486
2,091,316
(194,049)
(38,771)
-
125,663
(194,049)
86,892
-
(107,790)
307,021
-
112,972
(20,898)
25,000
4,954,974
137,972
4,934,076
256,461 1,264,369 1,520,830 297,108
38,286
3,804
76,758
65,776		 -
798,763
317,216		 38,286
3,804
875,521
382,992		 15,379
54,977
71,474
184,624 1,115,979 1,300,603 141,830
71,837
(282,569)		 148,390
-		 220,227
(282,569)		 155,278
125,663
(210,732)
132,613
(20,000)		 148,390
-
20,000		 (62,342)
132,613
-		 280,941
(107,790)
(307,021)
(98,120)
4,796,104		 168,390
137,972		 70,270
4,934,076		 (133,870)
4,929,974
4,697,984 306,362 5,004,346 4,796,104

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 13a to the financial statements.

17

The Galilee Foundation

Company no. 06037771

Balance sheet

As at 31 August 2020

Note
Fixed assets:
9
10
Current assets:
11
Liabilities:
12
13a
Investments
Cash at bank and in hand
Tangible Fixed Assets
Debtors
Stock
Restricted funds
Unrestricted funds
Total charity funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets / (liabilities)		 $ 106,717
2,079
1,976,483		 2020
$ $ 3,153,583
4,594
3,158,177
-
3,109,875
3,109,875
1,419,831
1,846,169
5,004,346
306,362
4,697,984
5,004,346		 2019
$ 3,244,032
-
3,244,032
1,690,044
2,085,279
239,110
4,934,076
137,972
4,796,104
4,934,076

Approved by the trustees on 3 March 2021 and signed on their behalf by

Mrs S Asfari Trustee

18

The Galilee Foundation

Statement of cash flows

For the year ended 31 August 2020

Note
$ $ 70,270
(as per the statement of financial activities)
(Gains)/losses from foreign exchange
(132,613)
(Gains)/losses on investments
282,569
Dividends, interest and rent from investments
(172,247)
(Increase)/decrease in debtors
(106,717)
Increase/(decrease) in creditors
(1,180,721)
(1,239,459)
172,247
-
172,247
(1,067,212)
3,109,876
132,613
2,175,277
Analysis of cash and cash equivalents
At 31
August
2019
Cash flows
$ $ Cash in hand
3,109,876
(1,067,212)
Total cash and cash equivalents
3,109,876
(1,067,212)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Investment purchase
Net (expenditure)/income for the reporting period
2020		 Note
$ $ 70,270
(as per the statement of financial activities)
(Gains)/losses from foreign exchange
(132,613)
(Gains)/losses on investments
282,569
Dividends, interest and rent from investments
(172,247)
(Increase)/decrease in debtors
(106,717)
Increase/(decrease) in creditors
(1,180,721)
(1,239,459)
172,247
-
172,247
(1,067,212)
3,109,876
132,613
2,175,277
Analysis of cash and cash equivalents
At 31
August
2019
Cash flows
$ $ Cash in hand
3,109,876
(1,067,212)
Total cash and cash equivalents
3,109,876
(1,067,212)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Investment purchase
Net (expenditure)/income for the reporting period
2020		 Note
$ $ 70,270
(as per the statement of financial activities)
(Gains)/losses from foreign exchange
(132,613)
(Gains)/losses on investments
282,569
Dividends, interest and rent from investments
(172,247)
(Increase)/decrease in debtors
(106,717)
Increase/(decrease) in creditors
(1,180,721)
(1,239,459)
172,247
-
172,247
(1,067,212)
3,109,876
132,613
2,175,277
Analysis of cash and cash equivalents
At 31
August
2019
Cash flows
$ $ Cash in hand
3,109,876
(1,067,212)
Total cash and cash equivalents
3,109,876
(1,067,212)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Investment purchase
Net (expenditure)/income for the reporting period
2020		 $ $ (20,898)
107,790
(125,663)
(123,000)
495,000
1,205,544
1,538,774
123,000
-
123,000
1,661,774
1,555,892
(107,790)
3,109,876
Other
changes
At 31
August
2020
$ $ 132,613
2,175,277
132,613
2,175,277
2019		 $ $ (20,898)
107,790
(125,663)
(123,000)
495,000
1,205,544
1,538,774
123,000
-
123,000
1,661,774
1,555,892
(107,790)
3,109,876
Other
changes
At 31
August
2020
$ $ 132,613
2,175,277
132,613
2,175,277
2019
(1,239,459)
172,247
(1,067,212)
3,109,876
132,613		 1,538,774
123,000
1,661,774
1,555,892
(107,790)
At 31
August
2019
$ 3,109,876		 Other
changes
$ 132,613
2,175,277 3,109,876
Cash flows
$ (1,067,212)		 At 31
August
2020
$ 2,175,277
3,109,876 (1,067,212) 132,613 2,175,277

19

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies

a) Statutory information

Galilee Foundation is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is Unit A, 1-3 Canfield Pl, South Hampstead, London NW6 3BT.

b) Basis of preparation

The financial statements have been prepared 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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006/Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities when receivable.

Revenue grants are credited to the statement of financial activities when received or receivable whichever is earlier.

Where unconditional entitlement to grants receivable is dependent upon fulfilment of conditions within the charity's control, the incoming resources are recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions the incoming resource is deferred.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

h) Expenditure and irrecoverable VAT

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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

20

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies (continued)

i) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £750. Depreciation is charged on a straight line basis at 25%

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Financial instruments

q) 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. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

21

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

1 Accounting policies (continued)

r) Financial instruments

s) Foreign exchange

Monetary assets and liabilities in foreign currencies are translated into dollars at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into dollars at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net incoming resources for the year.

2a Income from donations

General Donations re: Scholarship Programme
Andrea Bocelli Event
COVID-19 Appeal
Half Marathon - Scholarship Programme
Ayjal Foundation
General Donations
2b
Sale of goods
Income from trading		 Unrestricted
$ -
-
-
-
-
18,285		 Restricted
$ 16,604
360,344
32,868
37,586
-
-		 2020
Total
$ 16,604
360,344
32,868
37,586
-
18,285		 Unrestricted
$ -
-
-
-
-
44,320
-		 Restricted
$ 89,304
238,454
-
27,717
6,230
-
-		 2019
Total
$ 89,304
238,454
-
27,717
6,230
44,320
-
18,285 447,402 465,687 44,320 361,705 406,025
Unrestricted
$ 7,429		 Restricted
$ -		 2020
Total
$ 7,429		 Unrestricted
$		 Restricted
$		 2019
Total
$

22

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

3a Total resources expended (current year)

Staff costs (Note 6)
Consultancy fees
Audit and accountancy
Adminstration expenses
Grants to institutions (note 6)
Bank & foreign exchange charges
Purchase of goods for resale
Fundraising costs
Support costs
Governance costs
Total expenditure 2020		 Raising
funds
$ -
-
-
-
-
-
3,804
22,935		 Scholarship
programme
$ -
-
-
-
798,763
-
-		 Other
projects
$ -
-
-
-
321,586
-
-		 Governance
Costs
$ -
-
11,413
-
-
-
-		 Support
Costs
$ 82,006
18,442
7,296
25,235
-
9,122
-		 2020
Total
2019
Total
$ $ 82,006
58,932
18,442
8,987
18,709
12,915
25,235
26,215
1,120,349
1,976,976
9,122
2,908
3,804
22,935
4,383
1,300,602
2,091,316
-
-
-
-
1,300,602
2,091,316
26,739
14,210
1,141		 798,763
71,051
5,707		 321,586
56,841
4,565		 11,413
-
(11,413)		 142,101
(142,101)
-
42,090 875,521 382,992 - -

23

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

3a Total resources expended (prior year)

Staff costs (Note 6)
Consultancy fees
Audit and accountancy
Adminstration expenses
Grants to institutions (note 6)
Bank & foreign exchange charges
Fundraising costs
Support costs
Governance costs
Total expenditure 2019		 Raising
funds
$ -
-
-
-
-
-
4,383		 Scholarship
programme
$ -
-
-
-
761,626
-
-		 Other
projects
$ -
-
-
-
1,215,350
-
-		 Governance
Costs
$ -
-
9,195
-
-
-
-		 Support
Costs
2019
Total
$ $ 58,932
58,932
8,987
8,987
3,720
12,915
26,215
26,215
-
1,976,976
2,908
2,908
-
4,383
100,762
2,091,316
(100,762)
-
-
-
-
2,091,316
4,383
10,076
920		 761,626
50,380
4,597		 1,215,350
40,306
3,678		 9,195
-
(9,195)
15,379 816,603 1,259,334 -

24

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

4
5
▪
▪
6
Staff costs and numbers
Staff costs were as follows:
Salaries and wages
Social security costs
Total emoluments paid to staff were:
Staff pension costs
Grant making
Cost
Total grants for the year
Mada Al-Carmel: Arab Centre for Applied Social Research – to support PHD
students
Mada Al-Carmel: Arab Centre for Applied Social Research – to support research
project
Adalaha Legal Centre
Net expenditure for the year
Ayjal Foundation
The Arab Culture Association: to support the Scholarship Programme
Challenge to Change - Galilee Foundation students work readiness programme
Yafa Al-Mustaqbal: to support Yaffa Youth Movement
Al-Quds University Scholarship Programme
Baladna Assoc.: for the Youth Leadership Programme
This is stated after charging:
Operating lease rentals:
Property
Auditor's remuneration (excluding VAT):
audit		 2020
Grants to
institutions
$ 270,000
-
-
825,979
4,370
-
-
20,000
-		 2019
Grants to
institutions
$ 293,000
225,000
6,225
761,626
27,490
297,211
107,025
-
259,399
1,120,349 1,976,976
2020
$ 6,480
9,159		 2019
$ 15,011
7,663
2020
$ 75,400
3,749
2,857		 2019
$ 55,785
2,414
733
82,006 58,932
75,400 55,785

No employee earned more than $80,229 during the year (USD equivalent of GBP 60,000).

The total employee benefits including pension contributions of the key management personnel were $47,083 (2019: $41,944).

The average weekly number of employees (head count based on number of staff employed) during the period was 2 (2019: 2).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2019: $nil). No charity trustee received payment for professional or other services supplied to the charity (2019: $nil).

There were no trustees' expenses relating to attendance at meetings of the trustees.

25

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

7 Related party transactions

There were the following related party transactions for the year ended 31 August 2020 US$101,170 (2019: US$126,654).

During the year donations totalling US$96,966 (2019: US$126,654) were received from The Asfari Foundation. The Asfari Foundation is a related party as Mrs Sawsan Asfari, a trustee of Galilee Foundation, has majority control over the Asfari Foundation with her immediate family members. Grants from the Asfari Foundation funded grants to the Arab Cultural Center (Scholarship Fund) and a grant to cover costs related to the expansion of the Scholarship Programme to Al-Quds, as well as to fund the Galilee Foundation's organisational development and capacity building in accordance with the conditions of the donations.

In 2020 the charity paid US$6,082 (2019: $548) to the Asfari Foundation in respect of the rental of office space.

Other aggregate donations from related parties were US$ 4,292 (2019: NIL).

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Investments

Fair value at the start of the period
Additions
Disposal proceeds
Net change in fair value
Fair value at the end of the period		 2020
2019
$ $ 3,244,032
3,118,369
1,359,684
-
(1,198,500)
-
(251,633)
125,663
3,153,583
3,244,032

The investments comprise an Ooredoo Intl Finance Ltd bond, a Qatar National Bank bond, a Real Estate Investment Trust held by the Qatar National Bank, and publicy listed shares in Royal Dutch Shell plc, Gilead Sciences Inc, Glaxosmithcline plc, Johnson & Jonson Inc and Pzizer Inc.

10 Tangible Fixed Assets

Tangible Fixed Assets
Balance as at 1 September 2019
Additions
Depreciation
At 31 August 2020
Cost
Assets written off or disposed of		 2020
$ -
-
5,308
(714)		 2019
$ -
-
-
-
4,594 -

Assets are depreciated on a straight line basis at 25% per annum

26

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

11 Debtors: amounts falling due within one year

Debtors: amounts falling due within one year
Grants payable
Creditors: amounts falling due within one year
Accrued donation income
Trade creditors
Prepayments
Accrued income
Accruals
Event donations & deferred income		 2020
$ 25,000
1,872
79,845		 2019
$ -
106,717 -
2020
$ 3,181
221,261
-
14,668		 2019
$ 481
687,752
720,097
11,501
239,110 1,419,832

12 Creditors: amounts falling due within one year

13a Analysis of net assets between funds (current year)

13b
Net assets at 31 August 2019
Net current assets
Net assets at 31 August 2020
Analysis of net assets between funds (prior year)
Investments
Net current assets
Investments		 General
unrestricted
$ 3,153,583
1,544,401		 Restricted
$ -
306,362		 Total funds
$ 3,153,583
1,850,763
4,697,984 306,362 5,004,346
General
unrestricted
$ 3,244,032
1,552,072		 Restricted
$ -
137,972		 Total funds
$ 3,244,032
1,690,044
4,796,104 137,972 4,934,076

27

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

14a Movements in funds (current year)

Movements in funds (current year)
Total restricted funds
Unrestricted funds:
Mada Al-Carmel - Core Funds
Adalaha Legal Centre
Scholarship Program - (Arab Cultural
Association, Qatar Foundation for
Education, Ferial & Mohamed Abuali
Scholarship)
Baladna - Association for Arab Youth
Restricted funds:
General funds		 At 1
September
2019
$ 7,000
-
129,494
-
1,478		 Income &
gains
$ 270,000
-
-
994,369
-
-		 Expenditure
& losses
$ (270,000)
(20,000)
(825,979)
-
-		 Transfers
At 31 August
2020
$ $ -
7,000
-
-
20,000
-
297,884
-
-
-
-
1,478
20,000
306,362
(20,000)
4,697,984
-
5,004,346
137,972 1,264,369 (1,115,979)
4,796,104 389,073 (467,193)
4,934,076 1,653,442 (1,583,172)

Purposes of grants made - restricted funds

Adalaha Legal Centre: to support Law Students Conference

Mada Al-Carmel: Arab Centre for Applied Social Research – to support Core funding.

The Arab Culture Association: to support the Scholarship Programme.

Baladna Assoc.: for the Youth Leadership Programme

Purposes of grants made - unrestricted funds

Challenge to Change - Work readiness & Employability

28

The Galilee Foundation

Notes to the financial statements

For the year ended 31 August 2020

14b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
Unrestricted funds:
Mada Al-Carmel - Core Funds
Mada Al-Carmel - PHD Students
Restricted funds:
Scholarship Program - (Arab Cultural
Association & Qatar Foundation for
Education)
AL-QUDS SCHOLARSHIP PROGRAM
General funds
Ayjal Foundation
Baladna - Association for Arab Youth
Yafa Al-Mustaqbal		 At 1
September
2018
$ -
25,000
-
-
-
-
-		 Income &
gains
$ 300,000
-
297,211
891,119
-
6,230
260,877		 Expenditure
& losses
$ (293,000)
(225,000)
(297,211)
(761,625)
(107,025)
(6,226)
(259,399)		 Transfers
At 31 August
2019
$ $ -
7,000
200,000
-
-
-
-
129,494
107,025
-
(4)
-
-
1,478
307,021
137,972
(307,021)
4,796,104
-
4,934,076
25,000 1,755,437 (1,949,486)
4,929,974 422,771 (249,620)
4,954,974 2,178,208 (2,199,106)

15 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years		 2020
2019
$ $ 535
486
-
-
535
486
Property

16 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

29