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Trustees Annual Report and Financial Statements
For the Year Ended 31 December 2023
Registered Charity No. 1124927
| Contents | Page |
|---|---|
| Legal and administrative information | 3 |
| Report of the trustees | 4 |
| Independent auditor’s report | 12 |
| Statement of financial activities | 16 |
| Balance sheet | 17 |
| Statement of cash flows | 18 |
| Notes forming part of the financial statements | 19 |
UKC4C | Trustees Annual Report Year Ending 2023 Charity No. 1124927
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LEGAL AND ADMINISTRATIVE INFORMATION
Charity Registration No. 1124927 – registered in England and Wales
Trustees
Mohamad Kozbar Khadidja Saidani Salah Salman (appointed 29.05.2024) Riad Zaidani (resigned 29.05.2024)
Chairman
Mohamad Kozbar
Principle Address
Tayside House 31 Pepper Street Isle of Dogs London, E14 9RP
Bankers
Al Rayan Bank PLC 24A Calthorpe Road Edgbaston Birmingham B15 1RP
Auditors
M Akram & Co. Chartered Accountants 413 Lea Bridge Road London, E10 7EA
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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their report, along with the financial statements of the charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out on pages 19-21 and fully comply with the Charity’s Trust Deed and applicable law.
Structure, Governance and Management
Organisation
The trustees who have served during the period are set out on page 3. Appointment of trustees is through a resolution of the trustees passed at a special meeting. The trustees meet as and when required to discuss the business of the charity and assess grant applications. The trustees are encouraged to undergo ongoing training to fulfil their responsibilities and development. Upon induction, trustees are provided with adequate training and are kept well informed and updated regarding Charity Commission guidelines and expectations of them as trustees.
Objectives of the Charity
UK Care for Children (UKC4C) is a British charity registered with the Charity Commission for England and Wales (Registration No. 1124927), and is constituted as an unincorporated charity under a trust deed dated 25 June 2008.
UKC4C aims to relieve poverty and sickness, advance education and preserve and protect good health for the benefit of the public in particular but not exclusively in Lebanon and Jordan. UKC4C provides assistance to all those in need regardless of religion, gender, age or ethnicity.
The charity has a number of long and short term projects in the following programmatic areas:
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Children Welfare Fund: This fund focuses on improving the quality of life for children from disadvantaged backgrounds. It helps support ongoing medical costs, education, nutrition aid and financial sponsorships.
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Refugee Relief Programme : The aim of the programme is to support the immediate needs of refugees including shelter support, food aid, financial aid and emergency medical support for families.
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Seasonal Aid Programme : These include providing food and financial aid to vulnerable people and taking account of seasonal circumstances such as religious events like Ramadan or changes in the weather and environment.
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Community Development Projects: In addition to immediate relief, development projects have been designed to provide long-term benefits to communities and include capacity building and community focused projects with other NGOs.
Operations
In line with charitable objectives the Trustees continued to focus and develop its operational processes here in the UK and in the field. UKC4C continues to be a UK based charity that delivers aid assisting children and communities in Jordan and Lebanon.
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Grant making policy
Where grants are made, the charity usually receives written applications for funding of significant projects. Funding applications are considered and approved by the trustees, and projects approved for funding are monitored on a regular basis to ensure the delivery of expected outcomes. The grant making process is guided by the charity’s operations manual and due diligence processes.
Activities, Achievements and Performance
The Trustees are horrified with the current escalation and relentless bombing on the Lebanese people. As the situation deteriorates our teams on the ground are responding to the crisis. We are deeply concerned about the escalating situation in the region. The ongoing tensions are causing immense suffering for families and communities already grappling with economic hardship. Our charity remains committed to providing support and relief to those affected, but lasting peace is essential for rebuilding lives and ensuring a stable future. We stand with the people of the middle east in their call for an end to the violence and we join in the calls for an immediate cessation of attacks.
Lebanon's economy continued to spiral downward in 2023, with the local currency (Lebanese pound) losing over 90% of its value since the onset of the crisis in 2019. Hyperinflation eroded people's purchasing power, and the cost of basic goods like food, fuel, and medicine soared, pushing many into poverty. The World Bank described Lebanon's economic collapse as one of the worst globally since the mid-19th century.
Food insecurity was a major issue in 2023, with an estimated 2 million people in need of assistance, according to the United Nations. Rising food prices, coupled with the collapse of the local currency, meant that many families could no longer afford even basic items. The agricultural sector also suffered due to shortages in fuel and fertiliser, compounding the crisis.
Lebanon continues to host millions of refugees and these communities were among the hardest hit by the crisis, with limited access to basic services, healthcare, and employment opportunities.
Electricity shortages were common in 2023, with most of the country experiencing only a few hours of government-provided power per day. This forced households, businesses, and hospitals to rely on expensive private generators, which many could not afford. The fuel crisis also affected water supply systems, leading to widespread water shortages. Access to clean drinking water became a growing concern, particularly in rural areas.
In 2023, UKC4C allocated a total of £1,812,559 to support our initiatives and address the deteriorating situation in the region.
Children's Welfare Fund
The largest single charitable expenditure, totalling £1,213,114, was directed toward the Children's Welfare Fund. This fund supports our sponsorship programme, benefiting nearly 4,000 families. The funds cover essential needs for children, including the services of trained field staff and social workers who liaise with families to assess their requirements and quality of life.
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We also carried out home visits by social workers throughout 2023, ensuring stronger connections between our beneficiaries and our organisation.
Within the Children's Welfare Fund, we continued to process a significant number of gift payments from our donors in the UK, aimed at supporting education, health, and housing. By providing financial and in-kind gifts, it eases the burden on sponsored families during challenging economic conditions, bringing joy to children living in Palestinian camps. Our teams ensure transparency for sponsors through proper documentation and reporting highlighting the trust and dedication of our donors to our programme and underscoring the success of UKC4C in effectively communicating the needs of our beneficiaries to our supporters.
Seasonal Aid
UKC4C recognises the significance of religiously important days for both donors and beneficiaries, and so has disbursed £245,755 in 2023 for seasonal aid. This support was particularly vital during Ramadan, where we assisted beneficiaries and their families with financial aid, clothes for Eid, and food parcels.
Our Food Parcels in Ramadan aimed to improve food security for vulnerable Lebanese and Palestinian families in southern Lebanon, addressing the urgent need for access to nutritious food amid the ongoing economic crisis. By distributing parcels filled with staple and nutritious items, the project provides critical relief to the targeted families, helping them maintain better food security. This support reduces their dependence on harmful coping mechanisms, such as cutting educational expenses or forcing children into labour, which have become common in the face of Lebanon's severe economic challenges. The initiative benefited 130 families living in Ikleem and Ain Arab, offering essential food supplies to those struggling with extreme food insecurity. A budget of more than £3,700 was allocated for the distribution, with each parcel designed to last a family for one to one and a half months, depending on their size and consumption. This aid is crucial for families trying to maintain a diverse and nutritious diet in a difficult economic environment. Our hot iftar meals benefited 1,000 individuals across Lebanon. Similarly in Jordan we distributed food parcels to 773 beneficiaries. It brought joy to children in Palestinian camps by organising outdoor iftar gatherings with activities and games, fostering community spirit and support. Furthermore our financial aid at the end of Ramadan 2023, helped 270 beneficiaries meet their essential need and celebrate Eid-ul-Fitr.
For Zakat ul Fitr we distributed financial aid to 97 families across various regions in Lebanon, helping to alleviate poverty and ensuring that families could meet their basic needs in time for the day of Eid.
During the Qurbani 2023 campaign we responded to the severe food insecurity and rising meat prices in Lebanon, offering much-needed relief to families who could no longer afford meat due to the ongoing economic crisis. The initiative brought joy and comfort to vulnerable families, particularly those in Palestinian refugee camps, by distributing frozen meat parcels (each weighing 2 kg) to 1888 needy families. Recipients included emergency services teams, school teachers, and families living in impoverished housing communities. This distribution alleviated some of their financial burden during a time of extreme hardship, allowing them to enjoy a rare meal with meat. Many of the families not eaten meat for nearly a year. The project not only addressed food insecurity but also fostered a sense of humanitarian solidarity among the
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recipients, especially bringing joy to children. In Jordan 667 beneficiaries received frozen meat parcels.
To alleviate the hard conditions faced by refugees during the winter, UKC4C carried out in-kind distribution including financial aid, and food parcels.
Refugee Relief
The refugee crisis in our operational areas is ongoing and so our charity disbursed aid amounting to £22,760. This support was provided in the form of emergency financial aid and water tanks. In August 2023 UKC4C responded to the urgent need for medical support and access to clean water for refugees affected by the violent clashes in the refugee camp of Ain El Helwe. The initiative provided essential medical supplies and water tanks to support those impacted by the conflict. By equipping the medical centre within the camp with supplies for small surgeries, the project ensured that injured civilians received timely medical care. In addition, 100 water tanks were distributed to replace those damaged during the violence, restoring access to clean water for affected families. Refugees, particularly those injured in the clashes, directly benefited from the medical support, while the provision of water tanks helped families regain access to clean water after the infrastructure was damaged.
Our Social Welfare Fund provided assistance to 660 cases: 469 medical cases, 101 social cases, and 90 educational cases. This helped individuals facing emergency health issues, social emergencies (like house fires or low income), and students unable to afford tuition fees, allowing them to continue their education.
In Jordan, 481 beneficiaries received financial aid during our winter campaign.
Community Development
We allocated £330,930 in projects aimed at community development, including initiatives that created employment opportunities for social workers and teachers. These projects harnessed local expertise and supported livelihoods for professionals, many of whom are refugees.
Elderly Sitters
UKC4C works on improving care and companionship for elderly refugees, aiming to enhance their overall well-being and quality of life. Through the elderly sitter’s initiative, trained sitters were provided to assist elderly individuals with health monitoring, medication management, and daily activities, significantly improving their safety and comfort. Additionally, the project promoted community engagement by involving unemployed refugee youth in caregiving roles, offering them valuable job opportunities. A total of 36 elderly refugees benefited from the companionship and daily support, while 36 caregivers, including support staff such as a coordinator, barber, pedicurist, and photographer, participated in the program.
Empowering Poor Farmers
The Empowering Poor Farmers project aims to improve income generation for impoverished refugee farmers in Lebanon by providing them with the necessary resources to enhance their livelihoods. This initiative supports five farmers by supplying livestock and agricultural materials, helping to strengthen their economic stability and resilience. Through this assistance, the farmers can achieve long-term well-being and self-sustainability by generating income from livestock and crop production.
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Sports for the Youth
To addresses the lack of sports resources available to youth in refugee camps, UKC4C purchased sport equipment to provide them with the opportunity to engage in organised sports activities and develop their athletic skills. By procuring sports equipment for three sports clubs within the camps, the project empowers young individuals, enhances their abilities, and improves their overall performance. Access to quality sports gear enables the youth to participate in regular training, practice, and competitions, fostering personal growth and development.
Job Creation Programme
During the year, the Job Creation Programme created 18 job positions for Palestinian refugees, improving their economic conditions by providing them with a steady income. This program not only enhances the livelihoods of those employed but also contributes positively to the overall economic cycle within the refugee camps, helping to uplift the living standards of the targeted population. The program specifically employed 14 social workers, 2 caregivers for the elderly, 1 volunteer, and 1 social media officer from the refugee camps, enabling these individuals to be productive members of their communities while supporting their families.
Light up Mosques
Our Light Up Mosques project addresses the pressing needs of mosques located in Palestinian refugee camps, particularly during the holy month of Ramadan. The initiative aims to reduce the high operational costs these mosques face, ensuring they can function smoothly, safely and provide a clean, welcoming environment for worshippers. By supplying essential equipment, fuel, hygiene products, and maintenance support, the project ensures that 28 mosques across Lebanon are well-equipped to serve their communities. This directly enhances the experience of worshippers, especially during Ramadan, by improving the services and conditions in these mosques. The project benefits the communities attending these mosques by enhancing religious and communal services during a vital time for the Muslim community.
Safe Play Zone for Children
UKC4C created a Safe Play Zone for Children in Refugee Camps. It addressed the urgent need for a secure and safe play area for children living in Palestinian refugee camps in Lebanon, where limited space and narrow streets present significant hazards. By creating a designated play zone, the project reduces the risk of injury and provides a nurturing environment where children can play and develop safely. The project established a dedicated public play area for children aged 3 to 12. The space is equipped with safe, ISO-certified play equipment. Security measures, including surveillance cameras, guards, and safety installations, were also implemented to enhance child safety. This initiative contributes to the overall well-being and development of the children in the camp. In addition to benefiting the children, the project created job opportunities for local workers during its construction, providing much-needed income for camp residents.
External Factors Affecting Achievements
Our efforts were affected by the political and economic situation in the region, including the costof-living crisis in the UK and the collapse of the Lebanese currency.
Lebanon’s humanitarian situation in 2023 was characterised by worsening poverty, food insecurity, healthcare challenges, and political stagnation. The country's deteriorating living
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conditions prompted a growing reliance on international aid, but without meaningful political and economic reforms, the situation remained dire for the majority of the population.
The ongoing tensions are causing immense suffering for families and communities already grappling with economic hardship. The Trustees would like to thank our donors and supporters for all their contribution to our efforts during the year. Our work is vital as ever and your support is crucial for fulfilling the desperate needs of the region and its people.
Public Benefit
The Trustees confirm they have given due consideration to public benefit in all activities and referred to Charity Commission guidance, as required.
Risk Management
The trustees are aware of their responsibilities and legal duties, as well as potential risks, and keep up to date on all Charity Commission guidance.
In line with the delivery process, all risks are identified and managed to ensure the safe delivery of aid through regular direct field visits, ongoing engagement with trust partners and a high level of ownership and control over the implementation of the projects cycle.
Looking ahead
The Trustees will continue to respond to the challenges arising in 2024. As the situation deteriorates in Lebanon the charity will work to focus on the field and increase delivery of aid as and where the need arises. The charity will work to develop its delivery mechanism of aid to refugees and beneficiaries in Jordan.
The charity will work towards developing its marketing strategy in the UK to enhance and strengthen its relationship with donors.
Financial review
During the year, the total income received amounted to £1,405,502 (2022 - £1,587,040). The funds were received in the form of unrestricted donations, investment income and specified grants.
The total funds expended amounted to £1,903,879 (2022 - £2,803,746). This included the sum of £1,812,559 (2022 - £2,716,557) on charitable activities in the field representing 95% of the total expenditure. 67% of the charitable expenditure was in support of the Children Welfare Fund, 1% as part of the Refugee Relief, 14% as part of Seasonal Aid Programmes and 18% as part of the Community Development Projects.
The cost of raising funds and related operations amounted to £91,320 (2022 - £87,189) which is 6.5% of the total income.
The total amount carried forward to be expended in the following years amounted to £1,943,157; this includes £979 as part of the restricted funds.
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The trustees have reviewed the financial position of the charity and are very pleased with the achievements and the positive impact it has had on its beneficiaries.
Investment Policy
The trustees have the power to invest in such assets as they see fit. In practice, investment activity is limited to placing surplus cash funds in short-term deposits with the charity’s bankers. The aim is to ensure some return to the charity that minimises risk and ensure access to the funds as necessary.
Reserves Policy
The trustees have established a policy whereby the unrestricted funds not committed or invested are maintained at a level that allows the charity to operate as a going concern for at least one year. The net reserves unrestricted funds carried forward for the year amounted to £1,942,178 which is sufficient for the purpose of operational costs and committed charitable programmes.
Going Concern
The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The trustees are satisfied that the charity has adequate resources and appropriate measures in place to continue in operational existence for the foreseeable future and it is for this reason that the charity continues to adopt “the going concern” principle as a basis in preparing these accounts.
Disclosure of Information to Auditors
The trustees confirm that as far as they are aware, there is no relevant audit information of which the charity’s auditors are unaware. Each of the trustees has confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.
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STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity 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.
Approved by the trustees and signed on its behalf by:
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Mohamad Kozbar Chairman Date: 29.10.2024
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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF UK CARE FOR CHILDREN
Opinion
We have audited the financial statements of UK Care for Children (“the Charity”) for the year ended 31[st] December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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:
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give a true and fair view of the state of the Charity’s affairs as at 31[st] December 2023 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 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 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 we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such
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material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulation 2008 requires us to report to you if, in our opinion:
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the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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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 extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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We enquired of the management, which included obtaining and reviewing supporting documentation, concerning the Charity’s policies and procedures relating to:
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Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
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We identified the laws and regulations applicable to the Charity through discussions with the management, and from our commercial knowledge and experience of the Charity sector, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the Charity.
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We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
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We inspected the minutes of meetings of the Board of Trustees.
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We reviewed any reports made to the Charity Commission.
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We inquired of management of any complaints raised by donors, beneficiaries, representatives in the UK and in the areas of operation abroad.
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We agreed the financial statement disclosures to underlying supporting documentation.
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments to identify unusual transactions and investigated significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
M Akram & Co is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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Use of our report This report is made solely to the Charitys trustees. as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charitys trustees those matters we are required to state to them in an auditor's reportand for no other purpose. To the fullest extent perniitted by law, we do notaccept or assume responsibility to anyone other than the Charity and the Charitys trustees as a body. for our audit worK for this reporL or for the opinions we have formed. M Akram & Co (Stratutory Auditor] 413 Lea Bridge Road London EIO 7EA Date.. UKC4C | Twslees Annual Rert Year Ending 2023 Charity No. 1124927
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| Notes | Funds | Funds | Funds | Funds | |
| £ | £ | £ | £ | ||
| Income from: | |||||
| Donations and grants | 3 | 1,390,191 | - | 1,390,191 | 1,577,036 |
| Investments | 15,311 | ‐ | 15,311 | 10,004 | |
| -------------- | ------------ | -------------- | ------------ | ||
| Total income | 1,405,502 | ‐ | 1,405,502 | 1,587,040 | |
| -------------- | ------------ | -------------- | ------------ | ||
| Expenditure on: | |||||
| Charitable activities | 4 | 1,812,559 | - | 1,812,559 | 2,716,557 |
| Raising funds | 91,320 | - | 91,320 | 87,189 | |
| -------------- | -------------- | ------------ | ------------ | ||
| Total expenditure | 1,903,879 | ‐ | 1,903,879 | 2,803,746 | |
| -------------- | ---------------- | --------------- | -------------- | ||
| Net expenditure | (498,377) | - | (498,377) | (1,216,706) | |
| Reconciliation of funds: | |||||
| Total funds brought | 2,440,555 | 979 | 2,441,534 | 3,658,240 | |
| forward | |||||
| ------------- | ------------- | ------------- | ------------- | ||
| Total funds carried forward |
1,942,178 | 979 | 1,943,157 | 2,441,534 | |
| ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ | ‐‐‐‐‐‐‐‐‐‐‐‐‐ |
There are no recognised gains and losses other than those passing through the Statement of Financial Activities. All income and expenditure is derived from continuing activities. The notes on pages 19-27 form an integral part of these financial statements.
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BALANCE SHEET AS AT 31 DECEMBER 2023
| Notes | 2023 | 2023 | 2022 | 2022 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Fixed Assets | |||||
| Tangible Assets | 6 | 1,970 | 2,626 | ||
| Current Assets | |||||
| Debtors | 7 | 114,042 | 307,305 | ||
| Cash at bank and in hand | 1,891,369 | 2,204,877 | |||
| ------------ | ------------ | ||||
| 2,005,411 | 2,512,182 | ||||
| Creditors: amounts | |||||
| falling due within one | |||||
| year | 8 | (64,224) | (73,274) | ||
| ------------ | ------------ | ||||
| Net Current Assets | 1,941,187 | 2,438,908 | |||
| ------------- | ------------ | ||||
| Net assets | 1,943,157 | 2,441,534 | |||
| ======== | ======== | ||||
| Funds | |||||
| Restricted | 9 | 979 | 979 | ||
| Unrestricted | 10 | 1,942,178 | 2,440,555 | ||
| ------------ | ------------ | ||||
| Total Funds | 1,943,157 | 2,441,534 | |||
| ======= | ======= |
These financial statements were approved by the Board of Trustees and signed on their behalf by:
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Mohamad Kozbar Chairman
Date: 29.10.2024
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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
| Notes | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Net cash used in operating activities | 13 | (313,508) | (894,004) |
| Cash flows from investing activities: | |||
| Purchase of fixed assets | - | - | |
| -------------- | -------------- | ||
| Net cash used in investing activities | - | - | |
| ======== | ======== | ||
| Change in cash and cash equivalents in the year | (313,508) | (894,004) | |
| Cash and cash equivalents brought forward | 2,204,877 | 3,098,881 | |
| ------------- | ------------- | ||
| Cash and cash equivalents carried forward | 14 | 1,891,369 | 2,204,877 |
| ======== | ======== |
UKC4C | Trustees Annual Report Year Ending 2023 Charity No. 1124927
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Notes forming part of the financial statements for the year ended 31 December 2023
1. ACCOUNTING POLICIES
The principal accounting policies, all of which have been applied consistently throughout the year, are set out below.
a) Basis of preparation
The financial statements have been prepared under the historical cost convention and 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) (as updated through second edition – October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
b) Public benefit entity
The charity constitutes a public benefit entity as defined by FRS 102.
c) Going concern
The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
d) Fund accounting
Funds held by the Charity are:
-
Unrestricted funds - These are funds which can be used in accordance with charitable objects at the discretion of the trustees.
-
Restricted funds – These are funds that can only be used for particular restricted purposes within the objectives of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular purposes.
e) Income recognition
All income is recognised once the charity has an entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations and grants are recognised in the period in which the charity is entitled to receipts where the amount can be measured reliably. The income from charitable and fundraising activities are shown gross with the associated costs included in the expenditure.
Gifts in kind such as fixed assets donated to the charity are included as donations at the value to the charity where this can be quantified.
Investment profits on funds held on deposits are included when receivable and the amount can be measured reliably by the charity; this is normally upon the notification of the profit paid by the bank.
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Notes forming part of the financial statements for the year ended 31 December 2023
f) Volunteers and other donated facilities and services
Donated facilities and services are included at the value to the charity where it can be quantified and a third party is bearing the cost. The value of the time and services provided by volunteers is not incorporated into these financial statements in accordance with the Charities SORP FRS 102.
g) Expenditure recognition
Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on accrual basis. Funds expended are allocated to the particular activity where the cost relates directly to that activity. However, the indirect and overhead costs of the central function including the operational and support costs have been apportioned to the charitable and fundraising activities in proportion to the direct expenditure incurred. Expenditure incurred on raising funds relates to the costs expended on attracting donations and other fundraising costs including printing, mailing and donation processing charges. Charitable expenditure comprises of those costs incurred by the charity in the delivery of its aid programme for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
h) Tangible fixed assets
Tangible fixed assets costing more than £100 are capitalised and included at cost, including any incidental expenses of acquisition. Depreciation is provided, after taking account of any grants receivable, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a reducing balance basis over the expected useful life, as follows:
Fixtures, fittings and equipment 25% per annum on reducing balance basis
i) Taxation
As a registered charity there is no liability to tax. Irrecoverable VAT is not separately analysed and is charged to the Statement of Financial Activities when the expenditure to which it related is incurred and is allocated as part of the expenditure to which it relates.
j) Foreign currencies
Transactions in foreign currencies are translated at the rate of exchange prevailing at the time of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange prevailing at the balance sheet date. All differences are taken to the Statement of Financial Activities.
k) 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.
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Notes forming part of the financial statements for the year ended 31 December 2023
l) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
m) 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.
n) Financial instruments
The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
o) Pension costs
The charity operates a defined contribution pension scheme. Contributions to the scheme are charged to the statement of financial activities for the period to which they relate to.
p) Operating leases
Rentals under operating leases are charged to the statement of financial activities on a straight line basis over the term of the lease.
2. KEY JUDGEMENTS AND ESTIMATION UNCERTAINTY
Preparation of the financial statements requires management to make significant judgements and estimates. There are no significant judgements and estimates in the financial statements.
3. INCOME FROM DONATIONS AND GRANTS
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| Funds | Funds | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Donations | 1,390,191 | - | 1,390,191 | 1,577,036 |
| ------------- | ------------- | ------------- | -------------- | |
| 1,390,191 | ‐ | 1,390,191 | 1,577,036 | |
| ======= | ======= | ======= | ======== |
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Notes forming part of the financial statements for the year ended 31 December 2023
4. EXPENDITURE ON CHARITABLE ACTIVITIES
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| Funds | Funds | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Children Welfare Fund | 1,213,114 | - | 1,213,114 | 2,034,513 |
| Refugee Relief Programmes | 22,760 | - | 22,760 | 62,252 |
| Seasonal Aid Programmes | 245,755 | - | 245,755 | 275,007 |
| Community Development Projects |
330,930 | - | 330,930 | 344,785 |
| ------------- | ------------- | ------------- | -------------- | |
| 1,812,559 | ‐ | 1,812,559 | 2,716,557 | |
| ======= | ======= | ======= | ======== |
The charity works with a number of key partners in the field. Delivery to the end beneficiaries is carried out under the direct control and monitoring of our professional field representatives in line with the charity’s robust due diligence policies and procedures. Due to the inherent risks associated with working in our areas of operation, the names of partner charities have not been disclosed.
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Notes forming part of the financial statements for the year ended 31 December 2023
5. OPERATIONAL AND SUPPORT COSTS
| . OPERATIONAL AND SUPPORT COSTS | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Accountancy fees | 9,000 | 14,080 |
| Audit fees | 6,700 | 6,610 |
| IT and related services | 21,498 | 22,492 |
| Outsourced support services | 34,901 | 38,589 |
| Exchange loss | 29,408 | 30,703 |
| Project implementation | 82,435 | 109,691 |
| Premises cost | 5,536 | 4,590 |
| Wages & Salaries | 61,074 | 52,796 |
| Employer NI | - | 1,031 |
| Pension cost | 557 | 464 |
| Trustees’ travel | 510 | - |
| Depreciation | 656 | 876 |
| Telephone & Internet | 1,320 | 1,070 |
| Loss on disposal of fixed assets | - | 255 |
| ------------ | ------------ | |
| 253,595 | 283,247 | |
| ======= | ======= |
*The average number of employees during the year was 4 (2022 - 4). No employees had emoluments over £60,000 during the year (2022 - None). All employees during the year were performing admin and operations support roles.
**The remuneration and benefits received by the key management personnel during the year amounted to £31,199 (2022 - £19,522). This included salaries and pension costs payable for two senior team leaders (2022 - 1) responsible for the operations and donor care departments.
Allocation of Operational and Support Costs
These charitable operations and support costs refer to funds expended to deliver aid programmes and fulfil the objectives of the charity. These include central function costs and have been apportioned to unrestricted charitable and fundraising activities in proportion to the direct unrestricted expenditure incurred.
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Notes forming part of the financial statements for the year ended 31 December 2023
6. TANGIBLE FIXED ASSETS
| Fixtures, | ||
|---|---|---|
| fittings and | ||
| equipment | ||
| £ | ||
| Cost: | ||
| At 1 January 2023 | 4,754 | |
| --------- | ||
| At 31 December 2023 | 4,754 | |
| ===== | ||
| Depreciation: | ||
| At 1 January 2023 | 2,128 | |
| Charge for the year | 656 | |
| --------- | ||
| At 31 December 2023 | 2,784 | |
| ===== | ||
| Net book Value: | ||
| At 31 December 2023 | 1,970 | |
| ===== | ||
| At 31 December 2022 | 2,626 | |
| ===== | ||
| 7. DEBTORS | ||
| 2023 | 2022 | |
| £ | £ | |
| Donations receivable | 6,473 | 15,765 |
| Other debtors | 43,903 | 87,806 |
| Project funds | 63,666 | 203,734 |
| ----------- | ----------- | |
| 114,042 |
307,305 | |
| ====== | ======== |
Project funds are funds which have been delivered to trust partners in our areas of operations in order to be expended on the specified aid programmes in line with the directions of the Trustees.
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Notes forming part of the financial statements for the year ended 31 December 2023
8. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Other creditors | 48,524 | 55,774 |
| Accruals | 15,700 | 17,500 |
| ----------- | ----------- | |
| 64,224 | 73,274 | |
| ====== | ====== |
9. RESTRICTED FUNDS
| Balance at | Incoming | Outgoing | Transfers | Balance at | |
|---|---|---|---|---|---|
| 1 January | Funds | Funds | 31 Dec | ||
| 2023 | 2023 | ||||
| £ | £ | £ | £ | £ | |
| Children Welfare Fund | 979 | - | - | - | 979 |
| ------------- | ------------- | ------------- | ------------- | ------------- | |
| 979 | ‐ | ‐ | ‐ | 979 | |
| ======= | ======= | ======= | ======= | ======= |
10. UNRESTRICTED FUNDS
| General | |
|---|---|
| Funds | |
| £ | |
| Balance at 1 January 2023 | 2,440,555 |
| Net expenditure | (498,377) |
| ------------- | |
| Balance at 31 December 2023 | 1,942,178 |
| ======= |
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Notes forming part of the financial statements for the year ended 31 December 2023
11. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted | Restricted | Balance at 31 | |
|---|---|---|---|
| Funds | Funds | December | |
| 2023 | |||
| £ | £ | £ | |
| Fund balances at 31 December 2023 are | |||
| represented by: | |||
| Fixed assets | 1,970 | - | 1,970 |
| Current assets | 2,004,432 | 979 | 2,005,411 |
| Current liabilities | (64,224) | - | (64,224) |
| -------------- | -------------- | -------------- | |
| Total net assets | 1,942,178 | 979 | 1,943,157 |
| ======== | ======== | ======== |
12. RELATED PARTY TRANSACTIONS AND TRUSTEES REMUNERATION
The trustees received no remuneration during 2023 (2022 - £nil). During the year £510 (2022£nil) was incurred for trustees’ travel costs. There were no other related party transactions.
13. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Net expenditure for the reporting period | (498,377) | (1,216,706) |
| Depreciation | 656 | 876 |
| Decrease in debtors | 193,263 | 279,936 |
| (Decrease)/Increase in creditors | (9,050) | 41,635 |
| Loss on disposal of fixed assets | - | 255 |
| ------------- | -------------- | |
| Net cash used in operating activities | (313,508) ======== |
(894,004) ======== |
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Notes forming part of the financial statements for the year ended 31 December 2023
14. ANALYSIS OF CASH AND CASH EQUIVALENTS
| At 1 January 2023 |
Cash flow Movement |
At 31 December 2023 |
|
|---|---|---|---|
| £ | £ | £ | |
| Cash at bank and in hand | 2,204,877 | (313,508) | 1,891,369 |
| -------------- | -------------- | -------------- | |
| Total cash and cash equivalents | 2,204,877 | (313,508) | 1,891,369 |
| ======== | ======== | ======== |
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