Euro Quality Foundation Financial Statements for tho flnan¢l•l y•ar•nd•d 30 Jun• 2022 Reglsternd number. 1119242 Euro Quality Foundalion Contents Truste￿. R•port Ind•p•ndent •udltorf• rnport tothv In*tw• 9-13 Ststsment of fln•nclal actbvltl•• 14 Balanc? 8h••t 15 Statsmont of ¢•gh Ilow• 18 Not•• to th• flnancl•l •t•l•nw 17-23 Euro Quallty Foundation Reference 2nd Administr2tive Infom]ation S M Khalid {Chaitmao) R M Khahd M N Mansha R•gl•t•f•d Offl¢• Euro Howe Dale st￿tt Craven ArtDS Shropshire SYI 9PA Soll¢lt¢r• JMW Soliators TIP l Byrom P]gce Manchcsfcr M3311G Bankern Al Rayan B￿￿k PLC 394 CA)vcntry Road Small Heath Coventry RoAd Bimthgham BIOOUF Ind•p•ndgnt Audltorn GrJn¢ Thornton 1>18 City Quay t￿blIn 2 Ird*nd D02 F.D70 Euro Quallty Foundatlon Trustees, Report for the financia] year ended Jutte XYZ2 The T￿Stee5 submit their Annual Re￿rt and #udited fifftanci￿ st*temtykts of the Fouodation foI the year ellded 30 June 2022. The Tru5tee5 have adopted the provisiow of the Accounttng and Reportmg by Ch2n"ues: Sratement OE Recornmended Practice app￿¥b￿ to clwtties prepanng their *ccounts in accordance Ivith the f4inancial Reporting stand￿ •pphcable ia the UK and Repubbc of Ire12nd (FIL8 1021 (effective 1 January 2019) - (Chatities SORP (FRS 102). in prep￿l￿g the ￿￿val t￿Ort and financ statements oEthe Foundation. This teport set$ out the Foundation's 9irtis. obi¢rtiYes EX)kncies as had been developed by the Trustee5 during the initia] years of operAtitsn and should be seen as ever evolving. The overall rcmit of the Trnsrccs is to enggge in gcthryties that benefit humanity. Reference and admini81r*tive iDforniaiion Euro Qualiry Foundatioa is registered as a charity by HMRC.. Foundation Dumbu Kr521X). The TnJstee8 and Sccretary of the ¢h8tity ve listed on p*8e l. The ptinapal and rt8tstered office OE the ch￿lty ts al listed on page I together with details of the profession21 Advisers and bADkus. The chstity ts registered with th¢ Chariue5 Conunission of England & Wales under reference number 1119242 Structutt* governaoce and manyment Constirntioo 'Ihe Poundation is governed by 2 Trust Deed duly executed on IY Febw 2LMJ7 (a$ amended on 26 June 201D. These lay out the principks by whth the.I'n￿teeS C*D govern the T￿￿t. Regi8tration The Foundatson i8 regi4Eered with the chan.iies Cornmts￿n (tewstrAtiott numbet 1119242) and with HMRC (XI'5290). Ultimate Aim The ultimate #im is to efficieorly dtsttibute vRg1th in Dnler to dimiDate povcrty and socia] injustice And promote educ#tiooal learn￿8 and tolernKe world￿] Thc Foundation &ims to make a diffe￿Ce by contributing Eunding and guidance to such good causes that othetWi5e latk funding to perform its objective effeuivdl. This meets the chAtitable object of appliryng iticome for oi tOW￿dS any CI￿1tabk pvxposty the tntstre5 thitik fiL It doe$ this iti a numbcr of ways Engagttig with like.minded philAnthtopists to aSSCSS 8nd address 50aetal issues sucb as p)verty. economic empowenDenL S￿i2110]uStic￿ lackof acce5S to educ%tK>n and lack of tolergnce between CoM￿￿nIties. Euro Quallty Foundallon Trustees, Report fot the financAa] ye*r efyled 30 June 3Y12 Uliimate Aim {coDtinued) FUnd￿g #nd engaging direcdy cbatities thai address such %)cietal xssues. and Fun(kng and ¢ttgagia8 vrith Organ￿#t11)n$ that advance rdiyous ptxctice. toleran￿ undetstanthng d le￿Ing. Fundthg CAO be in the fomi of direct donltiotis or int¢te5t-frtt loan& The effedivettes$ of fi￿ding 15 discusscd and 35ses5ol 8¢ Innuai trustee me¢tioBs. Mi88io# Statement 'To provide a mech9nism by which charitabk doti*tions Cao be efficiently am2sscd 2nd effectivdy distributed in accord4Dce with Iskn)ic ptinuple8" B•ck8round Euro Quality Foundation ha$ been estAblished #$ a Philantmpy Fund. Simth to the way in which an Investment Trund 0[￿re$ by pool￿g funds ro ￿￿1n￿ rcturns hr its stakeholder5, a Phitgnttopy Fund povls donations from vatious source5 to maxitnise the effiaency And effectiveness of their donations. Z•kah is an ob]Agatory cbariry on Muslimi vkno possess Net Wealth. N¢¢ Wdth ran 1005dy be defined gs the value of non-e5sentd ass¢ts over and beyood the wdyees in￿ed1•¢¢ and necessary IiAbilitses. Zak¥h is then calculated as an g5]￿) annual rate of 2.5'/0 of this amounL Euro QuaIiry Foundation prmrydes mechanism by wluch LfjdtvK￿s and busiDCSSts can leam aboui and fulfil theit Zakah obbgAtions. Op¢ta¢ing Policy The Foundltiott will conduct itsdf and its activities in att ¢thicAI And t[￿￿PArent Po]icie8 may be cbAnged or #dapted to further the Foundations objectiv¢> Dotsation & Gr*nt mAkntig wblicy The Foundation works with re81sle￿a¢hltitIe￿ Eath applicauoo is consbjeted on it6 owo merits. Itexpectj 6Jll 2ccountability. transpatency and pRt)gttss rqjorts fmm recyients any &)natM)0$ n)ade with ongo]ng revieThry to monitor Ethrmlnce and results agdinst expttt*tsoDS. The fi)lloMng sectors tskc ptecederACe: Gkjbgl Emewcy Situatioos. Poverty Rdief. Sustsinable Lav Soctsl Projects. Euro Quality Foundation Trustees, Report fot the financial year ended A) June Donation & Grant m*knng p)]icy (cotttinued) bledical Needs. and Education Since incept10￿ thc Foundation tn*de g Dumber of donations to UK rwtcred chAtities selectcd oo their abA]ity to provide povetty relie£ combat soctsl iniusuee #t)d promote education and toier9nce. Workllig with a $m￿¢r pool of Ch￿itieS Iw enablul the Tn￿re£S to start budd￿ [dAtions￿p$ and increase the effectiveness ofthe dO￿t￿m￿ Re8eTYe8 pjlicy The Foundation has unrestticted fund4 which not committed or invested io ran￿le fixed ￿Se￿ or designated for speafic purpo￿5 I'thc ftee resetves.?. are retained to meet thc futute requiremellts of the Foundation. The Voundatioo ha$ emetgency reserve5 of £IO.(KM) I￿21.. £10.(KK)l in the event of the Fioundation b¢Jng wowjd up. The Foyndaiion's pokncy is to re¢9in A levd o( unte$tticted reseNcs. which meets the needs oEthe Foundation both ot the ojttent time grsd in the (ore5eeable Euture. The Trustees Ire of the opinion that th1$ #mounr Eernains. to bt distnbuted for unexpected costs. This not b¢ sr8tic, will be held on a discretionary basis and ts reviewed annually by thc tru5ttts. Inve8tment pK>li¢y The Poundauott only invests in ethic41 invesmients. The ttustees coniinuAUy monitor inve$ttn¢nts and retums for ethL"cal compliancc UAteriL 'I&c tru$￿t$ vnll initio1¢ tiew fornis o( ethic￿ investment8 if they beiiev¢ it enhanccs the retums for the Foundation whibt bg]2ncin8 financ￿} committnent5. COrtstr9ints, reseThes 2nd14uith.ty requirement5. ID pattKul￿. the fowdation will only invut in rtsA-frce Inon-u$ury) and sh￿l2h-¢omP1￿]t investtncnts. Organi8*ti0 The Tw$rees meet on a basts to discuss potenual donations to and (rom the Fowidxtiort dongside any other issues, wlth a fomigl m¢e¢ing occuning annually. The Trustees Usc Person￿ contscts to obtain extern91 advice on a needs basAS and to kttp 1dmts￿ttSti0n to$ts down. The Trustecs do not ehatge foI their rime ot their expet)se8. Ri8k management Major risks, w￿ch have been identified and discus￿ by the tnistees iadude 1055 of fimdwg due to poor profirabiiity of the $Frf)nsoiing coEp)rate cookpanies ￿dIO&s of tq)ut#iiO￿Ptrh*p5 due to adversc pubhciry. leading to a E#ll in pub]ic confidence ID the Foundation aod a consequent reducuon in otherincome. Further risk5 include the ability to cn5wc sufficitnt hm&og gothg forwml ID hght of dedine in pubb"c spending. 1￿C￿e glso risks ASSOCiated with maiOtsiDing the h*st secwiry of out Anfonnation to prevent loss of data. Bisks ttlated to operatiotis ttt fow countries are mitsgAted by using only UK or EU registered chatities operatitig in those juxtsd1￿5 bllt subFct to UK and EU chuitable 2od ￿ndIng laws. Euro Quallty Foundation Trustees, Report fi)t the fio4Dcialyeat ended A) June 21Y22 Ri8k management (eotttinued) Other risks relate to engaging with UK reglstettd chatt'tics under inve5t4ation by chgtities commission or (kmonstr2titig poot governance by latc filthg of documents. Prior to any funding bcitig fotwatded the charitics ¢ommi55ion website WÈU be rcviewed ￿ cotsfitm any investtgation ￿d/Or jate fihng of documents. The chgtiry will tbcn be askcd about these and unkss s*tisfactOry Ee5pon$es ￿ received. funding be withheld untsl the investsgation ts completed or d(xumcnts are filed. The ¢n￿te¢S review the iisk5 10 which thc chgn"ue$ ￿t exp5¢d on g regular basis and a tisk managemeot 5tt2tegy is in place where by those risk5 are identtfied the levds of risk is assc55ed and sy$tem5 and controis Eor thosc risks are est2bbsh¢d. The truste¢s t¥ke all #pproprtate steps to moderate gnd manage the operationel ttsks to vA)ich the assets of Euro QuA]x'ty Fovtsdation Are expos Having considered All identified risks the Trustees do not eon5Mkr there ￿ be a tisk to the sriing ton¢em status of the organis•tson. Related pArtieB and COaOP¢t•tion with othet otwiuiioD8 None o( our rrustees receive retnuoerAtiOts or other b￿tfit from thetr work with the Foundation. Any coiinection between a ttwttt of the Found*tioti ￿ gny rel*ted ot8Anisaiion trom wlu'ch the Foundallon Avaijs of 5et%qces or donations must be discloscd to the board of twsttts in the sAmc wgy gs any other contractual ￿la￿OnShiP with a rejgted party. Eury) Q￿lIty Lambs linu.ted Europack gnd Grove Patk linu'ted Ate considered related parties. due to the d1￿CtorS of these entsiies, bets¥ rnjstees OE the Foundaiion. Rdated patry trattsactioos have been disdoxd in note l& Taxation 8tats4 The Foundation ts a ttBL8te￿d Foundation. and a5 such is eJJtstltyJ to certatD tax exemptions on iocome and profits from tnve$#nenw and Su￿1￿$¢$ on Any trad￿8 activitie5 callied on in fiuthcrance of the Foundation's pnD]2ry objc¢ttves, A( these profits and suTIu8es Ate appb.ed soldy for ¢hatxt#ble purpos¢5. The Foundation ts not re8iStercd for VAT and acco￿l￿gly. theit expendinue is recotded industve of gny VAT incutred. Ttu4tees The Trustces art Mr SM Khali4 Mr K￿Y#ll M Kha]id and Mr M Nadeem Mansb Appointment of tmB¢ee8 New tntstrcs are recruited by open recruitment by exi51i(tg tnLStees to fijfil specific tolc% on the mjstees. board. The FX)tcntiJJ trustee Is thcn interviewed by the Cha￿t$00 and secretary of the board ryrdLll8 their ￿e$S ￿ become a trustee and thtjr pteDtial contthjution to the Foundstion is considered. Euro Quallty Foundation Trnstees, Report fot the financialyeat ended J) 3)22 Indu¢tiott and trAining of tru8ttt8 The tsew trustee's inducuon gttd trwning arc smihr to those set out for any employees of the Foundatio They are gxyen 8n overview of the aims, objecttvcs aad achievements, introthjccd to the TnJ$tees, are provided with 2 copy of the Trust deed (which exphing trnstees. powets and restxTrnsxbA]ities) and detwls OE the tectttt financial perfun))anct of the FouodatM)n. All new trustee$ meet with other existing trustees. Futsd8 held a8 CU8t¢Mli*ti ttU8*e8 on behalf of othe The Foundation holds no fi￿a$ as custdian ttu8tees on behslfof othets. Obiectiveg And activitie• The TnLSt'5 objcctive$ att listed bclow. The TnL8rfs piimgry activity is to liaise with support the best petforming chantw in 5detted seciors but At will alg) underth Ch￿IllbIt Acuvities direcdy LE ¥t nccd 1$ ¢8tAblished. The Foundation aims to beconr / knowledge hub devdop best practice guth]ines Eor donors and tccipients. Th¢ objcctiyes of the F8ure to our •udiwrn In so lar the ttustees are aw*re at the timing of approw our ttustees, annual report the￿ 1$ no tdeyant iuth"t infotmxuon of whKh the Foundauon's auth'tor 15 un*w*re: and the ttustees hAve iaktn all steps that they ought to have th to m•ke them5e]ves aware of •ny telcvant gudi¢ and to estabbsh that the Foundation's Auditor ts aW￿e of that inEormation. Independent ouditot8 Gtant Thorntoo vnu be prop5cd (or reappointynent As Auditots at the Tn￿￿e'S meettng. By order of the Board Trustee tl. 27 October 2022 Q GrantThomton Independent Auditor's Report to the Trustees of Euro Quality Foundation Oplnlon We have wdited thc fJnanciAI st4ten*tsts of Euro Qua]ity FouDdAtiOD C'the Foundation.?. which cotnprise the Ststement of Finanrilll Activitw the Balaoce Shttt and Statement of Cash Flow5 for tbe financi21 year ended 30 June 2021 and the rdated notes ￿ the [￿￿nC￿l stltemenw indudthg a summary of significant accouniing pobcles. The ffft2ncial reporung Framework that ha5 been appl￿ in the preparation of the financftal stAtcments is aPpI￿able law and accounting Stand*rds is$ued by the E*itianctyl Re￿[titig Council ￿￿UdIng FBS 102 'The FinAncial Repottsng Standard app]icable in the UK" (United KinRdom Generally Accepted Accotmting Pracuc¢). In out opinion. Euro Quality FoundstioD'$ fiathcial 5t*tements.' give * twe fgii in xcotdanee with United Kingdom Cycnerw Accq)ted Accounting Practice of the state of the foundation's affa￿$ ￿ at 30 June 2022 Ind of its incorning resources d 8pplieation of zesourc¢$ (or the year thej) ended. 8nd hAve been properly preplttd io •ccothce with the requiremthts of the Ch4riiies Act 2011. Ba•1• for oplnlo We conducted our audit in accordance with Internitional St*ndards on Audittog (u￿ ('ISA$ (UK)? and aPP￿¢#bIt law. Our Tesp)n$ibi￿.11CS under those standards gre furthet described in the'Respon5ibi]itie$ of the auditor for the auth't of the fingttci￿ $tatemcnrs' section of our repon We arc independent of thc charity in accordance with the ethical wutreo)ents that are r¢kv￿( to our audii of the fmancial stgtements in thc United Kingdom. includmg the FRC's Ethic￿ Standthl And the et1)iC￿ pronouncement$ estabbshed by Ch•r¢ered AccountAnts Irdan4 app]ied gs determined to be gppropriate in the cizcumstattces for the entity. We have fidfilled our other ctkn.cal responsib￿ltIeS in accordartce with these requiremcnts. We bdieve that the #udit evidence we hve obtained is sufficieTht and #pproptiate to provide a ba515 for our opinion. Concluslons v•l•tlng to ¢OnC•rn In auditing the financial ststementy we have concluded that the trnstees. use of going concern basis of accounting in the ptepatation of the financi21 statements is appmpIiate. B95ed the work we have perlonDe4 we have not Adentified any mat￿121 uncettsintics rdaiing to event5 or conditions that, indiv￿u2lly or collecllvety. may c¥t significant doubt on the Foundation's abL￿'ty to cOnt￿Ut a5 a going concern for g peri(xl of at k4St twdve months from the date when the financial 5tstementS 2re authoriscd for issue. f2 GrantThomton Independent Auditor's Report to the Trustees of Euro Quality Foundation eonclu¥lon• r•l•tlng to galng ¢onc•rn {c•nllny•d) Our re$ponsAbilities and th¢ responsibilit￿ of the t￿￿treS with respe¢t to goiog concern are descthd io the relevant sections of this yrt. Oth•r Inforniallon Othct infotmation comptises infom)2ti0n included in the rcp)ffj other than the fingnci21 statements 2nd out auditor'5 report thcreon induding the Tn￿t¢t. ReporL The tntsiees are Iesp)n5ible For the other infotmaiion. Ow opioion on the fin￿¢191 sts¢¢ments doe5 ttot cover th¢ other inEorniation and we do not express Any forn] of 25sur3ncc conclusion th¢r¢on. In connection our audit of the fjnattcial stltemeots. our respn5ibiknty is to re8d the othet infonnation and. in dojng so. con5idet whether the other infotm#tion is m*terially iAcon515tcnt with the financial statements or ow knowledge obtained in the a￿11¢ or otherwise ippeors to be mateiially misstaied. If we identify such mat￿la] inconsi$tenaes in the financtsl statementg. we are required to dc¢¢rmine whether there ts a matetd misstatement in the fjnanciai statements or a matctial misstgtement of the othtt Itiforn￿￿On. If, bgsed on the work we h¥ve perforrne￿ we condude that there is a maten41 mis$tatemertt of this other inforn￿tkn4 we Are required ￿ report that fa¢L Wc hAve nothu¥ ro repott iti this regard M•ll•v• on whlch w• •r• v•qulY•d to r•pgrt by •x¢•ptlon We have nothjng to w in rcspcet of the followthg msrtets in relAiion to which the Chatities (Account5 and Rep)rts) Regulgtions 2Tr)8 require us tt) rqK)rt to you 1£ in our optnion.. The infonnation iti the Tn￿¢¢￿. rqM)rt is iticonsisteot in AOY matuial respect with the fmaacilll $t8tement$' or Sufflcient accountin8 records have not been kepr or Thc 6MnciAI 6txtements ate Iiot An w¢emcnt wtth the accounting record& or We have not received •ll the itifonnarioo and ¢xpknati0tt6 we require fot our gudit. io Q GrantThomton Independent Auditor's Report to the Trustees of Euro Quality Foundation (continued) R•*pon¥lbFlltl•• of manag￿￿￿t •nd tho•• chw wlth gov•rn•nc• f•r th• flTrmclal 4tat•m•nts As expjaincd more in thc t￿￿(Ce$. responsibijiues stsiemen4 management ts re$FX)nsibk foi the ptepgi*tion of the fiDanog1 stltemellts which we * and fair view iti Accordance with Generally Accepted Accounting Pra¢t*e in UK itiduding llLS 101 and ftjr such intemAI control as tti)stees deterniine ncc¢ssary to enable the prepw4tion of tjnancial stgwnents th*t are fre¢ from matetial mi8Statemcn4 whether thje to fraud or etror. In Pfeparing the financiA] $t*tements, manwent is zesponsible for assessing the Foundation's ability to contitsue 15 8 goin8 concery disdostsw AS gpp]ic8bk. matters rdatrd io going coocern and usu)g the going concern basis oEaccounrJng unless management either inten& to hquidate the Found#tion oz to ce28¢ operations, or has no ttaii$tic ￿tel￿￿tiVe but to do 80. Those charged with governAnce ttspon5ibk for 0￿$tel￿ the Foundgtion'$ fjnancthl rcwjrtsng pr0ry58. R••p•n•lbllltl•• ol th• audltor for th• audlt ￿ th• fln•nd•l •t•t•rn•nts We have bttn appointed *$ #uditots under 5ecoon 145 of the Charl￿$ Act 2011 and report in accotdance with the Act ind relevant regulauons made or hAvmg effect thereunder. The obiect¢ves of an aditor are to obtain tezsimAble usurance about whether the fJnanciAI stAtements As a whole are frec (rom matetial misstatemcni whether due 10 fraud or ertor. to issue gn auditor's report thqt indude$ thcit opinion. Relxinabie ￿ul￿nCe is a l¥h levd oEassurnic< but ts not 8 gill￿ntee that an audit conducted in XC0rd￿¢t with ISAS (UK) will always detect A material misstatement when it exists. Misst#tement5 ati%e from fThud or crror and constdered m2tcnal if. indxirydually or in the Aggregate, they cotsld teasonably be expected to influence the ttonornic dea"sion5 of users r2kcn on the basis of these financial statements. A 6Jrther desctiption olan auditor's resFwibilities fw the audit of the $tatemcnts ts located o the Finanaai Reporting Cowjcil's website aL" This de5ctiption E0rn5 Part of our audito£5 report Expl4natiOA AS to whai extettt Ébe Auth't WAS cons￿ered CAPAblt ol dettctsng ittegukn'tsesp cluding frsud Iryegulan'tie4 induding fraud Ire instances of non-compliance wtih Im *Ld regulations. We design proctdures in fine with our responsibilllics. oudined #bov< to detect M2ter1￿ missratemeots it) rtspect of irregth"ties. induthg frau(L Owing to the inherent ]itnitation5 of an #uth"( there 15 an un2void8ble iisk tbat material mi5$tatement ID the finAn¢i81 ststtmeDts maynot be (ktected. cvcn though the audit Is propetly pjaoned and perfom)ed Èn acconknice with the ISAS (UK). The extcnt to which ourprocedure$ are CAPAble of detecting itre8uE#titie5. induthg frxud is det9Jkd bdow. li Q GrantThomton Independent Auditorfs Report to the Trustees of Euro Qua]ity Foundation (continued) R••ponslbllltl•• of th• audltor for th• W￿1* of th• lIna￿l•l •t*t*m￿ts Icontlnu•d) Based on our l￿derstandIng of the Foundation. w¢ idenllfied that the wincipal ii5ks of noo-comp]iatice with jaws #nd regu]Ations rdated to dgts protection 9￿d we consldcttd the extcnt io which non- compjjantt mjght bave A mateti#l effect on the flljancial 5t*tements. We glso considered those hws and reguktion5 that have a direct impact on the prepAratM)n of the fill￿Cl￿ sr¥tcmentS such as the Chariry Act 2011 and local tu legi51ation. We eV￿U￿red management's incentives and oppottutiities for fraudulent manipulauon of the financial statements {including the risk of oVe￿Ide of controb), 9nd d¢terniined that the piincipal risks were rektcd to p)sting in/ppopiiAte enttkes ro rnanipulatr finwcygl perf0m￿n¢t and management bi￿ through Judguneuts and ￿sUMPtIonS in swufic￿¢ •cwunting estimates, in pgrticular in re]2llon to sigmficant one-off ot Unusu￿ tr￿sICtIOns. We apply professiondl scepticism through the audit to consmler Potenti￿ dekn'berg¢e omission or conceg10)¢ot significant tran5a£tion$. ox Ancompkte/in#ccur*te disdosures itt the fjnmaai $rAtemenii. In re8ponse to these pxincipgi risks. our audit pr(th4utts it)dudcd but were not ]irnited to., inqutiies of manwt on the policies procedures in place regardll¥ comp]iotice with14ws rtd regulatiofis. including considergoofj of known ￿ suspected instsnces of non.compltsnce and whether they havc knowledge of any AcmgL suspected or •llcged fraud. review of minutes of tru5tees' mcetin8s dwing the Ye￿ to corroboratc itiquitie$ made. Awing gn undcrstandts)g of the intcrnal contto]s est4bhshed io mit1￿te risk relared to fraud. dj'scussion Str￿)￿85t the eng•pnent tCAm in rdation to the identified laws re8uhtign5 gnd g the risk of frAu4 aod temliw aDy indications of non-wmpliance or opportunitie5 fot fr*uduleot manipu]a(xon of Gn￿￿91 statcmettts thD)U8hout the audit. identify'ng and testing joumal entries to gddrw the tisk ofitwyropiiate iournab and mAllagement ovcttide of contmls. dcsignin8 #udit procedures to incorpor*t¢ unpredictability #tound the nott￿¢, timing or ¢xtent of our te$utJ8* challengmg assutDPtions and judgements made by manwt in thdr Significant a￿Out￿ting estimates and. review of thc flnan￿ $tgtemcnt disdosutrs to undetlying 5UPPttin8 documentstion And The pIimary responsibility for the ptcventioti •nd &tccuon ol ￿'tIeS induthng fraud ttsts with those rhwd with governance 2nd managemenL As with any audi4 there rcmains a risk of non.detection or irregth'tie5, as these may invofve coll4tsl0￿ fotwy, intentional omissions. miswiresenta￿jns or ovetride of internal contiols. 12 GrantThomton Independent Auditor's Report to the Trustees of Euro Quality Foundation (continued) Thg purpo•• ol our •ydlt and to whom w• (Thv• our v•spw•lbllltl•• This report ts made soldy to the t[￿$t￿$. &% a body. in #co)rdance with Part 4 of the CEwities (Accounts and Reports) Regulations 2(Y Our gudit work has b¢eo undeth so that we mght state to the those mAtters we arc tequired ro state to them in att #uditoe5 repn •ad fot no otheT purpx To the fi￿t extent pemu'tted by1gW. we do not accept or assume respoDsJbility to anyone other than the trnS￿e$ of Euro Quality Foundation AS 2 bt)dy, for our audit wotK for thi.s r¢wJ¢ or (or th¢ opinions we hove ft*tn Jason Crawford {Sen￿r Stabjtory Audttor) For on behalf of Grant Thornton Chartered Accountaots & Statutory Auth'tot5 Dublin 27 Octobfrr 2072 13 Euro Quality Foundation Statement of financial activities for the ftswicialyedt c￿ed Y) Juoc 20 2022 Unre8tri¢trd Unrestricted 2021 NOTES INCOMtNG RESOURCES Incoming re80urce8 from genetthd hnd8 DonAtionE and l¢g2cies Activiiies for generating (und8 Investment incomc Other mcome Total itEcomin 699.878 509,618 lo.￿0 7,945 6,998 303 516919 resouwe& RESOURCES EXPENDED Expcnth"ture on tharitsble 2Ctivitie5 Other ex enth'tur¥ Total rebource8 ex nded Net incoming/(ou4oing) t¢Liouftt8 (627.585) (359.5211 1910(M) 551521 (34,60¥ 627 85 38 FUND BAL4NCES Fund balances bro ht forw2rd at I Futsd balancel Cartied forvrnld •t 30 1,488J24 L578 562 une 20Z2 Is 14118 324 All amounts rdate to ¢onuDuing opex*tions. The note5 on py 17 to 23 fom] pm of thcse fitiati¢d ststCtt￿t& 14 Euro Quallty Foundatlon Balance Sheet As at 30 June W22 2022 2021 NOTES FIXED ASSETS lay￿tInentS io iio.(xx) CURRETrrr ASSETS Debtors Cash at aod in hand li 12 265.01)0 860,562 125,562 264.(KK) 24 lJ84J24 Creditor: amounts fa Net curreni a8$ei8 Net a88ets due withitt otte ear 13 Ill8,562 ,-178.324 1488324 The fund8 of the FouDd•tion Unrestricted intome fiJnd6 15 24 The finanugl stitem•)ts were approved by the Tn￿tte$ And authori5d for is$ue by the boAtd on 27 October 2022. Si8ned on beh￿f of the boud: Trusr alid Tmstee MNMan Trust The notes on WAges 17 to 23 folln part of these finaDctsJ statements. 15 Euro Quality Foundation Statement of Cash Flows A8 4130 June ￿12 )22 CASH FLOWS FROM OPERATtNG AcftvrTIES Net inc0mll￿/1Outgo1A￿ resoutces Prowsion Against debtors Increase in debtorg Increase in creth.tors Net C*8h netated ftom o 91238 P4,602) 192,IKK) (17,6991 I,(K)O 140,699 rati aciivitieB CASH FLOW FROM tNVESTING AcrivmES Purchase oEirtvesunents Net cash utili8ed in inve8 350,000 350,0 •ciivitieB (Decrease)/iticr¢4se in cash and cash equivalents dutitig th¢ year Ca8h and ca•h e uiY*knt8 ￿ the be . Lash and cash c uiYAleats at the end of the (259,762) 40.699 ofthe e*T L120J24 1079 625 1.120324 CA8h and ush equivalents at the end of the yeat comprise of Lxsh at bank and in hand 860,562 24 The (b￿lty has no debt and thus no recontiliaiion of IW dd)i prewAr The notts on wA8e$ 17 to 23 forni part of these ststrment& 16 Euro Quality Foundation Notes to the Financial Statements for the fin*tseialyeat endtd 30 June Genetal itiforniaiiti Euto Qualtty FOU￿10¢10￿ is rcglstered as a chariry by HMRC. Foundation Dumber XT5290. The Trustces aod Sectetary of the Chatity ary li$tcd on page l. The ptinopl *MI registetd vffice of the chatity AS also b'sted on page I togcthetwith deiatls of the profegsxh￿I advisers and b￿kers. Tbe thatity ts wisteted with the Chanties Commission of England & Wales under refetence number l 119242. Accounting policie8 The pEincipat ￿CoUnting ￿licAt8 adopt•l judgements and key sources of estimaiion unccrtginry in the preparation OE the financi￿ S￿ternCnts #re as follows: A) BA818 of preparation The finant)￿ statcrneats have been prq)￿d in Accord￿¢¢ with Accounting and Re￿ting by ChAritieJ'. Statem¢nt of Recommeth Practre #ppkncAbk to ¢F￿r[tIeS prepAtin% their accounts in accordance with the Finanrigl Rew>tting Stand*rd applicabk in the UK and Repubhc of Ire]and (FRS IO¥ (Charitte$ SORP (FLS 102. the fitianct21 Repotting Stand￿d app]icabk in tbc UK and Republic of Ire]And (FRS IO¥ and the ch￿itIeS Act 2011. The F.uto Qu￿lty Fouftdation meet5 the definition of g public enllry. A55ets And liabilities are initially recognised at historical cost atxi transaction value unless othenvise in the relevqot accounting pobcy notes. b> Incomitig re8ource$ Voluatary iticome Income is included in the fin￿￿￿ ststcmeots iti the iti which it is receAved by the FouadAuon ot when the Foundation is entided ￿ IL BAttk iniere8t The Foundgtion dou ttot Invest in *ceoiinE which genugte ioteresL Ethical locome Ethi¢91 income recciyable ts itickndcd in the fin￿¢1*1 ststeDYOts in the period in which it is rcccivable by the Fowmlation. c) Ca6b at bank and in hand Cash at bank and in bgnd indudcs depo￿ts held #t call witb ballks and other 5hort.temi IEquid iavestsnents origjnal maturities of thtee months or ks 17 Euro Quallty Foundation Notes to the Financial Statements for the financial year ended 30 Jutte %)22 Accouniing polA¢xe8 (contitiwd) d) Debtor8 short.tetm debtots are mrdsuml At transacllon ry less any itnp*itm¢tiL IA>aos xlvwces #Ee rneasuted initi>lly at fait value, net of ttansa¢tioo costs, and ate meASUted subsequendy At amortised cost usjng the eEEectiYe interest method. kss impiirmenL e) Inve8￿en1¥ Investm¢ots iti un]isied investments u¢ dassified Is fixal Assets investnjetjts As the Fouttdguon intettd$ to hold these on g long.term l)asis and ￿ l￿d at tost less impairmenL Finaoci•l iti8ttumento Th¢ Found*tivts only has finan¢ial *ssets and financial iiabiliues of a kind that qua]ify 2s basic fitt￿Cl insttillnents. B*sic financial in5ttumcnts are imtdly recognised it ttgnsaction price and subseguently measured it thcir settlcznent Vg1[￿ unkn the constitules 2 financing tr9ns2ctson. Financing tran$icttons are inityally measured Ai the prescnt vglu¢ of thc fuDJre r¢c¢ipts dtscountcd at A rnatket rAte of in¢erest, and Are subsegueotty camed #t amortised cos4 Usti￿ the effccllve ttttettst r•te metho(L 8) Re8outee8 expend¢d All expendin￿¢ is accourtted for on gn accruth hsis and has been dassified under beadings that aggrwte all costs rdated to the category. Gtlttts payable DonAtion$ are recognised tn the finfincd st¥tunents as liabikn'w afttt they l)gve Ixcn approved by tbe trustees, eveo if there condition5 att*d￿ to them. Thi"s is ￿￿USt there ts i vslid expectation by the recAPitnts that they will receiye the ￿lL Where a donat*>ti is *wArded for a peziod of gre*tez than one ye￿, future insta]ments oEwhich ate Subject 10 S1ti5f*ctory reports to the Tw$4 the (uture grattt instabnents are induded in commitments but are not recognLsed in the fill￿CIal s￿teMents uotil satisfactory rcpott5 arc rcceiyed. This is b￿￿$¢ the ￿Erns on which thcse gratsts awar(kd do not creAte a vab'd expectation of receipt ￿￿til the Tn￿rf5 Trnstees are satisfied with the trPDEts received ¢>tt the use made of the previou$ yellr's inst31mcnts. Governance co¥ts Governance costs are tEo costs associated with the governan￿ amngements of the FOu￿dation. Ivhich relate tt) the genetal rutiti1￿ of the fowkd*tton as opposed to those costs associated with fi￿draiSIng or chaLitable activity. 18 Euro Quallty Foundatlon Notes to the Financial Statements for the finatteial year eTrled 30 June ￿22 2. Accountitig p]icie8 (cotttinued) Pension costs The Foundgtion docs not operate * pension ￿em< And its tn￿¢tts recave no reD)uneration. h) Unte8triCted fiwds Unrestsicted fi￿dS are amouttts. whith fitt ex￿￿ble xt the di8tte￿n of the trustees in (urthergnce of the aims of the Trust. Critical accoutsting judgements and e81imiitiOlI Iinttnaioty Prepatation ofthe financiat statements regwtts rn#n4￿t io make syificant judg¢ments And e51imate8. Judwents and estimates #re continually evaluated and are ba5cd on hu8¢orid expeiience gnd other fAc¢ors, inclUd￿g &xpectstions of futute events that #re bdievoj to be reasonable thc c&tcum$tance5. Acwal results may ultimatdy thffer from these esiim*te& In the process of applying the accotsnting policies. management has made the fotbwlng judgmenw *part from those invol￿g estimatioN wlid have the most sgmficADt effect on the gmouut$ recognised in the fit￿1¢1#1 Statements: (a) Im/k*rn¢rti ProYision5 are made for speci& and gro￿$ of where obiecuve eV￿en¢t gEAmpairnient exists. The Foundation evgluAtes these #ecounis based ott ivailabk fACts gnd circtllnstances, induth'n% bui not limited to. the lets￿h of the rektionslw) WAth the FounditK)n. the Foundation creth"t status based on knovm marker Forces. average 2ge of accounts. collection experi¢nce ind historical loss expenenc¢ N¢t incomitig/louwiing) ttaOU￿cO ou Net 1acomll￿I[ tgothg) resources is $t•ttd #fter ebAt8llJ 22 2021 Auditor's temuner#uoD 19 Euro Quality Foundatlon Notes to the Financi21 Statements fot the fillanci￿ yeat ended YJ June J122 lttcomiog re8ource8 Uttre8tricied funds 2022 Total 2022 Incoming te80Utce8 from generated fuod Donation8 &om related p•rrws Other don2ti0ns To￿1 income relati 686,711 686,ni 13,167 699,878 to fundrais 699,878 Aeiiviiie8 fot getserating funds Investment income Othet incomc To￿1 income from Toul incomi re80urce8 10.000 7,945 17.945 717,823 lo.￿0 eNtin 17,946 717,824 Unre8tricted nd# 2021 Totsl )21 Incoming te8ource8 ftom getsevAted fvnd8 Donations Erom rdgted pArDes Other dc)nativns Total income relau 9,618 509,618 9,618 509.618 Activitie8 for getttrniing fvnd• Inv¢8tmcnr m£ome Other income Total illcome from Toul incomitt 6,998 303 7.301 516 919 6.998 nerAiin nds 7,301 516 919 re80urc¢8 An￿Y￿18 of staff costs, TTU•t¢t remuoerAiion, expett*e8 And ihe coot of kny managemettt petBonneL 2022 2021 Number Numb The number of tnLStecs *t the end of the None of the tmstecs received remunerntson durtDg the year (2021: £NiD and the Foundation had no employees (2021: £Nil) or salw COSLS. No cxpetsses have pahj to the ¢n￿ttt5 duting the yegr (2021: £NiL). Thete is no professioti￿ iniknniry Insurance t*kett out 00 beh8iEoE the Tn￿tee8 (2021: Expenditsre on Ch￿11*h￿ ae¢ivitie8 Social Emergency & Educa￿0 Community Healthcate & Trnining Wewart 2022 2021 Unte8tricted Unrestricted UDre8ttic*d Unrestiicted Unres(zicted Doo•tions 393,720 133.PA) 359.521 20 Euro Quallty Foundation Notes to the Financial Statements for the financial year ettded ￿ June ￿22 Othet expeDditure 22 2021 Utttebtrieted Unrestricted aimient of loan adYan¢es 192.0 Toxatioo The FouDdAtion is A registered Ch￿1¢Y. aod as such is entitled to ¢eruiti tax exemptions on iocome and profits from investments, and $utpluses on any trad￿ activitie5 canitd oo io the fiuthuancc of the oundation's ptimary obiective& if these p￿fits gnd sutpluses are 4)p11￿ 601ety for chatitxbk purposes. The Foundation 15 not ttgistered ftir VAT Aod 8ccorthngty. ￿ their exp¢o&"ture is recorded thdusive of aay VAT incurred 10 Inve8thients Unlisted Inve8tments Com Co8¢ and ne( book value At l July 2021 Additions At30 utte 2022 i io.(x)o These Ion8-term investments are hd4 in the United KiDgryk)m Ind exist prunarily tsi provide gn investmeftt rettthl Eor the chuiry. ll Debtozs 2021 Loan advance5 ard Hasans 264.0 The chatiry recorded a provislon of £Nil (2021: £191(W) (kning the yeat aggthst the lo￿ advance& 12 Ca8h and ca8h eqvivakots 2022 2021 Cash and cash 24 21 Euro Quallty Foundatlon Notes to the Financial Statements for the finaocial yeat etsded Juoe 2J)22 13 credi￿￿. amounts falkntig due wAthin one y¢ar 2022 2021 AccLiJais 14 Financial commitment At 30 June 2022 the Foundation had no financial commitments (3)21'. £Nffj. 15 Unmtrieted fuDd8 TtAts•fer Balattce I ItKoming be￿teD B*iance 30 Juty 2021 funds nd8 d8 June 2022 Gtou G¢nerai funds 1,4M8..324 717.82.1 627,785 627 L578,562 16 An*ty818 of n¢t a88tt• between ￿ndS 24)22 Unre8tricted fund8 Total fund8 Investments Current Assefs Ctcditors.. f8i1in due After more thAn one 460,WI 4￿,000 4125,562 L125,562 o( L57V62 578.562 2021 Untefjtricted funds nd& Invc$tsnents Net ¢urrent assets Creth"tO￿.. fauin due *fter more thgn one IiO,IKM) lJ84.324 G,(K)O 1.488324 110,000 l J84J24 6,0(Kl 1.488.324 ear 17 Ultimate cottttollitig patty The ttustees are deemed the ultittiate controlkng pmy due to thcit wisition within the Foundation. 22 Euro Quallty Foundatlon Notes to the Financial Statements fot the fin4ncAal year e*￿ed Xl June 21)22 18 Related parry di8cJD8ure8 The Foundatioo ￿CeiVed £6XI.(KX) (2021: £5¢X>.IXM)) from Euro Qthry 14mbs iJmited. Euro Quabty IAmbs timited ts defined as g reiated party under PTrS 102 3S two of thc t￿￿tte$ of Euro Qug1ity Foundation ate also dtrectors of Euro Quah"ty t4mbs lin)ite The Fouttd4ti00 teceived £9.4(X) (2021: £NJl) from Ewopock Ltd Eu￿￿Ck Ltd i8 defined as a re]ated pary under FRS 102 ￿ one of the tr￿stee& of Euro QU￿1ry FouttdAtion is g1s0 a director of Europack Ltd. 23