Registered Charity Number: 1126281 Company Number: 06195282 Scottish Charity Number: SC038671 Human Relief Foundation (Company Limited by Guarantee) Annual Report and Financial Statements for the year ended 31 December 2023
Human Relief Foundation Contents Page Charity Information. Report of the Trustees . Trustees, Responsibilities Statement........................................................................ 14 Independent Auditor's Report . 15 Charity Statement of Financial Activities...................................................................19 Consolidated Statement of Financial Activities...........................................................20 Consolidated and Company Balance Sheets..............................................................21 Consolidated Statement of Cash Flows.....................................................................22 Notes to the Financial Statements...........................................................................23
Human Relief Foundation Charity Information Trustees Dr Haytham Al-Khaffaf (Chairman) Mr Bara Abdul-salam Mr Mohanned Rahman Mr Suhail Sharief Mr Ayad Al-Rawi Company Secretary Mr Kassim Tokan Registered charity number 1126281 Company number 06195282 Scottish charity number SC038671 Principal and registered office 2 Claremont Bradford BD7 IBQ Auditor Azets Audit Services Limited Triune Court Monks Cross Drive York Y032 9GZ Bankers National Westminster Bank 699 Wiltn51ow Road Manchester M20 6NW HSBC UK Bank PLC 47 Market street Bradford BDI ILW Al Rayan Bank 44 Hans Crescent Knightsbridge London SWIX OLZ Sollcltors Fieldings Porter Solicitors Silverwell House Bolton BLI Iwf
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 The Trustees are pleased to present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 December 2023, which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective l January 2019). Mlsslon and strateglc obJe¢tlves Human Relief Foundation IHRF) is an International Non-Governmental Charitable Organisation. HRF seeks to promote sustainable economic and social development by working with local communities through relief and developmental programmes, supporting them to build a better life and find their own solutions to global problems. For over three decades HRF has been instrumental In helping to save lives and relieve human suffering in some of the poorest regions of the world. We provide emergency relief and assistance to people caught up in extraordinary, life-threatening situations. Globally, HRF has permanent offices strategically located around the world (Bradford, Amman, Baghdad, Mosul, Aden, Accra, Islamabad, Erbil, Dhaka, Cox's Bazar, London, Glasgow and Birminghaml, allowing LJS to actively provide global assistance whenever and wherever it is needed. Our mission is to achieve lasting improvement in the quality of life of people, regardless of their gender, race, religion, class or political affiliation, by mobilising resources, building partnerships and developing local capacities to: Enable individuals, groups and communities to mitigate the effects of disaster and crisis, prepare for their occurrence and provide humanitarian relief and recovery; Assist the disadvantaged in becoming self-reliant by developing their own solutions to development challenges and creating sustainable livelihoods; Promote sustainable development and address the root causes of conflict through programmes that target education, shelter, water and sanitation, health and nutrition and humanitarian dialogue; Support the vulnerable, disadvantaged and marginalised and enable them to voice their needs,. and Build local capacities. The charity relies heavily on the generous donations it receives from fellow charities, individuals and other organisations. The Trustees have considered the Charity Commission's guidance on public benefit. This annual report details what we have achieved during the year to 3 1 December 2023. Fundraising The Charity has always applied the policy of fundraising through our own staff and volunteers and does not have any arrangements with commercial participators, professional fundraisers and third party organisations. Fundraisers and volunteers are recruited primarily where the organisation has an office such as Bradford, London and Birmingham with the intention of raising funds for our charitable objectives. Human Relief Foundation is a member of the Fundraising Regulator and in 2023 we received no complaints during the year under review. Human Relief Foundation staff are trained in fundraising methods to ensure that the approach we apply when communicating with members of the public does not cause unnecessary intrusion on a person's privacy or place undue pressure on a person's money or property.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance IRA Iraq has entered a stage of economic and social recovery following the end of years of violent conflict brought on by ISILIISIS. This post-conflict period has seen a significant rise in the number of people making the decision to return to their areas of origin, the estimated total being almost 5 million. As of September 2022, 1.17 million people were categorised as Internally Displaced Persons IIDPI. Reintegration analysis has found that a culmination of factors that include housingi land and property {HLP),' safetyi security and social relations., and access to livelihoods and economic securityi all pose as barriers to IDPS and returnees during their attempts at reintegration. It was the consensus of international development agencies at the start of 2023 that a focus on reintegration was required in order to promote both social and economic stability and advance the development of the country. Reintegration efforts focusing on livelihood strengthening and Mental Health and Psychosocial Support were of particular importance in areas that were heavily impacted by the conflict. Mental Health and Psychosocial Support Services (MHPSS) HRF endeavours to advance in its areas of impact, this includes expanding the scope of work to include new networks and areas of focus. A key example of this is HRF'S continuation and successful completion of the project "Community Security and Integration Process (CSIP-VI" Through this project HRF, with the support of UNDP, provided vocational and business management skills training, alongside the provision of MHPSS support, to enhance environmentally sustainable livelihoods and socio-economic reintegration. Following the conclusion of the project, business and Mentorship Support was provided to 1,000 beneficiaries (500 Discharged Volunteer Fighters and their family members, 500 Victims of JSILI, and MHPSS was provided to a total of 2,000 people, including the same 1,000. Additionally, renewable energy training had been provided to 1,000 beneficiaries including the support for mainstreaming renewable energy solutions in their business plans. The awareness raising was conducted at community level to raise the importance of renewable energy. Ultimately, the project positively impacted beneficiaries, livelihoods, mental health and psychosocial wellbeing. The provision of grant opportunities facilitated the growth of businesses, moreover, enhancing income generation. Additionally, through the project's intervention, target beneficiaries, mental health and psychosocial wellbeing showed significant improvement proceeding the project's finalisation. Livelihoods As part of HRF'S goals to influence sustainable positive change to the lives of people in need, HRF Iraq has focused asperts of its attention to the livelihoods sector. In 2023 the country team, along with support from HQ staff, oversaw the continuation and successful completion of the projert'supporting Sustainable Livelihoods through Agriculture in Sinjar, Sinune and Al-mahalabia, Ninawa- The primary focus of this projert was the development of value chains in Sinjar, Sinuni and Muhalabiyah. This was achieved through community outreach, specifically aimed at youth and women, which allowed the projert to selert 200 individuals who would be provided opportunities for skills development in the fields of food processing and packaging. The project also improved active farmers. {200 individuals) knowledge around sustainable livestock management and business management, ultimately assisting with the creation of agribusiness plans, and offering grants to the best 150 proposals. This livelihood focus was sustained through the initiation of a new project, 'Skills Development in the Construction Housing Sector. Kirkuk Governorate, Iraq" The project aimed to provide demand-driven and sustainable employment opportunities for youth in Hawija in the construction and housing sectors through skills development informed by a rapid local market assessment and job placements with local employers. Furthermore, HRF provided vocational training to over 300 trainees. The subjects included electrical repairs and maintenance, air conditioning maintenance, software and programmingi photography skills, tailoringi event management, bakery and computer skills. The diverse subject range ensured participation from both genders allowing the trainees to pursue their newly acquired skills in areas suitable with the social norms of Iraq.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) WASH HRF'S ongoing WASH projects oversaw the implementation of multiple safe water sources in various regions across Iraq. This included the water well which was dug In the Raduneea area near Al-safwa M05que. HRF observed the issue of water scarcity, resulting from a lack of an appropriate water network in the area. Installing the water well near the m05que, assisted 75 families who are residents of the local village. HRF continued in its WASH projects via water well drilling in governorates across Iraq. To do so, HRF began collecting donations for drilling wells in Iraq. These donations were collected and used to dig wells in Anbar, where 5 wells were drilled in the city, bringing safe drinking water to an estimated 900 families. Food Security During Ramadan, over 15,000 benefitted from food items and for Qurbani, we were able to provide meat to over 9,000 individuals. Education HRF implemented the school bag and stationery project for orphans and those in need in schools, as well as what was referred to as the 'second meal, initiative. After the initial distribution of the first school meal bags which did not include orphaned children, HRF appealed to several schools to include their orphaned students in this initiative. The Director-General agreed to thi5 plan and HRF began distributing a second round of the school bags, with the addition of stationery with each bag in Anah. This reached an estimated 400 orphaned children. Orphan sponsorship HRF has been running orphan sponsorships internationally for many years. In Iraq, throughout 2023, over 200 orphans and vulnerable families were sponsored. Non-Food fftem5 (NFI s) During the year, over 3,000 individuals benefitted from our Winterisation projert, receiving many items of clothing, blankets and other NFIS to keep them warm over the winter months. Humanitarian Assistance As part of HRF'S annual Ramadan Projects, Ramadan baskets were distributed to 100 families in need. Additionally, HRF'S Eid Project organised the distribution of clothes to children, women and men in the camps in Amiriyat Al-Fallujah and Al-Latifiya, as well as families in Salah al-Din {Yathrib) and in Anbar {Karmal. The combined outreach of both distributions reached a total of 1,000 families. Health HRF, in cooperation with philanthropists, provided treatment to cancer patients and those suffering from chronic diseases. Reaching 30 families in total from impoverished communities. YEMEN The protracted conflict in Yemen has led the country into a state of complex protection issues. These issues are charatterised by high numbers of civilian casualties, protracted large scale displacement, marginalisation, and discriminatory norms. Leading many of the country's citizens to rely on negative coping mechanisms, examples of which include child marriage. The significant length of time in which the country has been under this strain has led to the severe deterioration of economic conditions, as well as the collapse of both civilian infrastrurture and basic services. The recommendations for approaching aiding Yemen's humanitarian situation as outlined by UN OCHA, highlight a need for interentionS in the following sectors, Camp Coordination and Camp Management. Education,. Food Security and Agriculture- Health,. Nutrition,. Protection,. Shelter and Non-Food Items,. and Water Sanitation Hygiene.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) Humanitarian Assistance HRF'S Internally funded projects oversaw the implementation of different forms of humanitarian intervention during Ramadan; including the provision of food supplies to vulnerable families, which supported both the nutritional and health of these families, moreover improving their Quality of life. Additionally, HRF'S Qurbani projert targeted improving nutrition for poor and beneficiary families who were unable to bLJy meat due to their economic and financial sitLJation, ultimately reaching 2,800 individuals. The beneficiaries of this project resided in the governorates Aden, Lahj, Abyn, Hadramout and Taiez households were IDPS and vulnerable members of the host community. HRF Yemen is pleased to report the successful completion of the "Enhancing the Response Capacity of HLJmanitarian Actors in Aden Governorate throLJgh Prepositioning of Essential Relief Items in Aden" implemented with support from IOM. The projert achieved all pre-established activities and goals, namely the pro]ert outcome "Outcome I.. emergency relief items are dispatched to partners on a timely basis" and its corresponding 'Output l. l.. Emergency relief items are prepositioned" To do so the HKF team managed the operational and administrative aspects of a Warehouse in Yemen's Aden governorate. The warehouse served as a facility for IOM to store and dispatch emergency relief items including non-food items (NFI), enhanced emergency shelter kits {EESKsl and hygiene kits. Upon the projert's conclusion a total of 147,711 items deployed and 69,698 were received during implementation. HRF'S field team upheld a meticulous standard of organisation and ensured all items were properly organised to avoid any loss or damages and stored in a safe and secLJre environment. Those achievements have contributed to the project objective concerning the delivery of a timely response to the emergency needs of conflict and crises affected persons. PAKISTAN Pakistan's vulnerability to natural disasters has resulted in devastating humanitarian consequences. Flooding is a prominent challenge faced by communities. In the 2023 monsoon season, heavy rains caused the overfow of rivers leading to the loss of lives and infrastructure. The country is also at risk of earthquakes, and in March 2023 Pakistan, specifically the region of Khyber Pakhtunkhwa, felt the aftershocks of the 6.8 magnitude earthquake that struck Afghanistan. This vulnerability to natural disasters compounds the pre-existing challenges faced by Pakistan regarding Water, Sanitation and Hygiene (WASHI and Food Security. The strain experienced by local communities, is evidenced by the acute child malnutrition, the recognised drivers of which are poor maternal nutrition, deficient sanitation and hygiene facilities and practices, inadequate childcare and feeding practices, food prices inflation, food insecurity and limited access to essential nutrition services and nutritious diets. As the leading implementing agency UNICEF appealed for humanitarian and development assistance to concentrate on the following sectors WASH,. Heath,. Nutrition,. Education,. Child Protection- Prevention of Sexual Exploitation and Abuse IPSEA),. Social and Behaviour Change, Community Engagement and Accountability,. Disaster Risk Reduction/Winterization. Livelihood The Skill Development and Livelihood Progratnme implemented by HRF, with asslstance from Institute of Skill Developtnent Man5ehra, is an ongoing initiative with the goal of providing key livelihood skills to women and girls. The programme's outcome focuses on supporting employability and income generation with the goal of having a sustained positive impact on the quality of life of families currently faced with limited livelihood opportunitie5. In 2023, the programme successfully trained 100 Trainees and an estimated 700 families benefited from the programme's irnpact.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) WASH HRF Pakistan worked throughout 2023 to install clean water systems across areas with high numbers of vulnerable communities. Including 60 communal hand pumps (Afridevl, targeting the vulnerable communities in the areas of Tharparkhar and Umerkot. And 19 household-level small hand PLJmps {Shallow) for the vulnerable commLJnities in Rajanpur and Mardan. These WASH projects extended to solar-powered water well initiatives, with HRF installing one solar-powered pump in the water-deficient villages of Tharparkhar to provide clean drinking water to those In need. Prior to the installation of the solar pumps, community members had no access to clean drinking water and were forced to travel long distances to fetch clean drinking water, or they were compelled to use unsafe drinking water. Food Security Thmughout Ramadan 2023 HRF collaborated with a number of charitable organisations. This included.. UHR though which distributed 350 food parcels In underdeveloped and flood-affected districts in Sindh {i.e. Shikarpur and Dadul, benefiting an estimated 2,450 individuals; Sind Development Organization {SDO) who's field team distributed food parcels to 346 families 12,422 individuals). and Abu- Yasein Foundation-UK, through which 20 food parcels were distributed in Shikarpur Sindh, benefiting 140 individuals. HRF'S private donors also allowed for the distribution of 35 food parcels to families in need in the district of Rajanpur, Punjab, Pakistan, benefiting 250 individuals. As part of HFiF's Iftar projects HRF collaboured again with the Abu Yasein Foundation and through its field team to provide Iftar meals to 100 individuals, and distribute 100 food baskets in the distrirt Rajanpur, benefitting an estimated 700 individuals. Additionally, HRF in collaboration with Gift of Kindness, provided cooked food to 200 families in need in the district of Mardan, benefiting 1,400 individuals. Furthermore, HRF'S food security projects included the Qurbani projert, in which 250 parcels of fresh meat of Qurbani were distributed amongst the most marginalised and flood-affected families in the district of Rajanpur, Punjab. Reaching 250 families and an estimated 1,750 individuals. Orphan sponsorship Under the HRF Orphan Sponsorship Programme, cash grants are transferred quarterfy to the registered orphans. accounts. Cash grants have been transferred to a total of 60 orphans registered under the Orphan Sponsorship Programme. BANGLADESH By December 2023 Bangladesh was host to approximately 971,904 Rohingya refugees from Myanmar in 33 camps in Cox's Bazar District and Bhasan Char of Noakhali District, 51Wo of them children. Despite the efforts of the Bangladeshi government, these camps are severely overcrowded and pose many challenges to the Refugees, including their limited access to education, protection, food, water, shelter and health services. Women and children are particularly at risk of the consequences of these challenges, such as increased risk of mortalityi morbidity and protection violations. UN agencies have issued a call for humanitarian assistance to provide essential services to the Refugee population, as well as the Bangladeshi host community. Humanitarian Assistance HRF has been a proud lead actor in the implementation of the project "Multi-sector Assistance for Displaced Rohingya Refugees in Bangladesh" (funded by Islamic Development Bank) which began implementation in 2020. The project assists Rohingya communities, but specifically targets the Refugee and Host community located in Bangladesh's eight sub-distritts Iupazilal of Cox's Bazar Distritt. It is oriented towards addressing the three key thematic challenges faced by the Rohingya communities in Kutupalong,. urgent and immediate needs, socio-economic development, and environmental sustainability. The project combines a number of different outputs to provide comprehensive support for vulnerable Rohingya communities in Bangladesh.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) As part of HRF'S work with the Refugee community, HRF is actively implementing programmes targeting the betterment of individuals, quality of life within the camps. For example, IOOO/u of enrolled children in Camp 16 received comprehensive school supplies, resulting in Increased access to education and enhanced learning experience. HRF remains committed to addressing the need and seeking continued support for long-term educational empowerment. HRF'S work in the Refugee catnps also extends to fire response. Following a devastating fire in Camp I I, HRF rebuilt 2,000 shelters, allowing many families to return home. The support provided by HRF'S generous individual private donors has allowed for the implementation of multiple forms of humanitarian assistance including HRF'S Winter Support Programme. The Winter Support Programme targeted 2,400 Individuals across eight districts and provided them with warm blankets, to help improve their well-being during the winter months. Private donor support also funded the Flood Response Programme and allowed HRF to mobilise resources to deliver emergency relief to flood-ravaged villages, ensuring families did not go hungry. Food Security HRF'S Qurbani Programme arranged for 4,460 underprivileged individuals across eight districts to receive sacrificial meat according to Islamic guidelines, focusing on marginalised communities. HFiF France, HRF UK, and other donors contributed to the programme's success. Similar food assistance was provided as part of the Ramadan Food Support Programme, through which 450 families received essential food assistance during the month of Ramadan. Orphan Sponsorship As part of HRF'S long standing Orphan Support Programme 100 vulnerable children in Cox's Bazar received comprehensive monthly support, including food, clothing, education, and hygiene Items. HRF aims to secure more ftjnding and transform it into a long-term initiative with lasting impact. Health HRF'S Health Post in Cox's Bazar served over 13,800 Rohingya and host community members, providing comprehensive care like vaccinations, mental health support, and chronic disease management. Beyond medical services, the programme empowered communities through health education, hygiene promotion, and sensitization activities, fostering long-term well-being and a healthier future. Shelter Thmughout 2023 HRF Bangladesh repaired shelters for 176 households and construrted new shelters for vulnerable Rohingya and host community members, ensuring equitable access to safe housing. The programme emphasised long-term sustainability through proactive shelter condition assessments. Livelihoods As part of an ongoing effort to enhance the livelihoods of vulnerable communities, HRF Bangladesh implemented a 'Sewing Programme,. This programme was designed to target the development of the livelihoods of impoverished women. Following its implementation the programme was seen to have brought back some comfort into the lives of the female beneficiaries. WASH The Water Programme implemented during 2023, saw the installation of 22 tube wells in the Pabna Distrirt, providing clean and safe drinking water to 110 families and 550 individuals. The project also focused on building awareness about water safety, hygiene practices, and tube healthy maintenance for long-term sustainability.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) Hosting approximately 730,000 Syrian Refugees Jordan's humanitarian situation is under significant strain. The protrarted natLJre of the Syrian conflirt has left many Refugees in a suspended state of limbo, with many faced to endure the uncertainty alongside challenges posed to their health, education and economic prosperts. In order to support these communities, the lordanian Government, with the support of UN Agencies and the wider international community, began implementing projects and schemes aimed at providing support to Refugees. Humanitarian Assistance HRF understands the impact of cash assistance on impoverished families. This is why HRF worked to provide financial support to families in need through the form of cash grants or payments towards commitment such as rent, electricity and water bills. These cash initiatives reached 455 families. HRF'S humanitarian assistance also supported the Hope Center project in Zaatari camp. The project provides physical therapy to Syrian refugees who have been afferted by the war in Syria. Through this work HRF reached 400 patients. Additionally, as part of HRF'S home restoration projert the construction of an apartment to accommodate the number of families was completed, alongside the renovation of houses in danger of collapse. Orphan Sponsorship Under the HRF Orphan Sponsorship Programme, cash grants are transferred quarterly to the registered orphans. accounts. Cash grants have been transferred to a total of 481 orphans registered under the Orphan Sponsorship Programme. Food Security Through various food security initiatives HRF'S Jordan team provided support to vulnerable communities in the region. This included the distribution of basic foodstuffs to 1,793 impoverished families in the form of parcels, and the distribution of slaughtered sacrificial meat inside Jordan to 43 family s via HRF'S 2023 Qurbani projert. Health HRF assisted 3 families through the provision of medicine and by covering the cost of medical examinations, treatment, and some minor surgeries. GHANA Due to its proximity to the ongoing crisis in the central Sahel countries (Burkina Faso, Mali and the Niger) Ghana is facing the constant threat of a spillover from the conflict, causing instability in the northern region of the country. In addition to this, humanitarian agencies and international actors monitored the human rights situation in Ghana throughout 2023 and found there to be serious human rights violations. A 2023 investigation published by the US Department of State highlighted multiple credible reports of cruel, inhuman, or degrading treatment or punishment by or on behalf of the government, as well as serious restrictions on freedom of expression and media freedom. Reports also indicated significant threats faced by marginalised groups such as women, children, persons with disabilities, and members of the LGBTQ+ community. Humanitarian organisations, such as Amnesty International, called on the implementation of initiatives that would focus on providing support to marginalised groups.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Achievements and performance (continued) WASH HRF'S WASH initiatives saw to the installation of 53 Basic Water Wells and 6 Boreholes / Electric Water Well. The combined Impact of both of these forms of wells reached an estimated 2,755 families. By providing water wells, these families not alone ensured they had acce5S to clean water but also in turn added to their live5 a leading step to improved health, social welfare and economic well-being. Towards the development of our Clean Water program, each project goes forward with the provision of water with the longer term in mind. Education HRF is dedicated to providing communities in need with education based assistance proierts in Ghana. These projects aim to foster values of respect, trust, participation and ownership amongst the community members. In 2023, HRF in partnership with Group of Good deeds, constructed a school complex at Krofufrom in the Western region of Ghana. Teachers were also supported at Sahar Educational Complex in Dungu, Tamale and as Expansion works on Ibadullah Education Complex In the Northern Region of Ghana. Benefitting a total of 200 pupils and 12 teachers. Community Maintenance As part of HRF'S goal to rehabilitate and develop local Mosques, in order to provide a suitable place to pray and perform worship, while also providing a suitable place to perform religious lessons. HRF'S team in Ghana conducted maintenance works at The People's Masjid, as well as the construrtion of 4 Mosques, each or which is estimated to have benefited 150 people. Seasonal Pmjects Through HRF'S annual Cows of Qurbani Project, Sadaqa Project, and Ramadan Project, HRF supported the food security of local communities. This involved the delivery of Ramadan Food Packages containing essential food items, the provision of 400 Iftar meals to 400 vulnerable people, and 780 beneficiaries receiving Qurbani meat packages. Orphan Sponsorship Under the HRF Orphan Sponsorship Programme, cash grants were transferred quarterly to the registered orphans, accounts. A total of 8 orphans registered under the Orphan Sponsorship Programme received transfers of the cash grants. UKRAINE On 24 February 2022, the Russian Federation launched an illegal invasion of Ukraine. The geographical and political landscape of the invasion underwent shifts throughout 2022 and 2023 and in response to the steadily increasing number of people in need of humanitarian assistance and the shifting accessibility of various regions, humanitarian actors entered the country. HRF, recognising this need, began its process of registration in Ukraine and was officially registered in 2023. With this registration, HRF became eligible to condurt its work in-country and allowed for the programmes team to begin the process of finding suitable projects that align with the goals, objectives, and capability of HRF. Through a process of partner mapping HRF successfully partnered with the Ukrainian organisation Angels of Salvation IAOSI. In partnership with Aos, HRF implemented a projett aimed at supporting the civilian population in Ukraine's Donetsk region. The support aimed to strengthen food security by purchasing and distributing 167 Family Food Packages to 167 people currently living in the region. Our volunteers The charity gratefully accepts the help of its 25 volunteers who help the charity to raise funds by working in its shops. Without the commitment of these individuals the contribution made by the sale of donated goods could not be achieved.
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Our volunteers (continued) Volunteers undertake a variety of roles within retail fundraising including collecting donated goods, sorting and merchandising as well as staffing our 6 retail outlets. The time donated by volunteers amounts to the equivalent of 20 12022.. 20) full time equivalent staff. Financial review The trustees are satisfied with the financial performance of the charitable group for the year ended 31 December 2023. The results on the consolidated statement of financial activities show a deficit of £282,424, compared to a surplus of £953,031 in the previous financial year. The trustees would like to see an increase in funding received from institutional donors and voluntary income. The trustees believe that now is the right time to increase its fundraising activities as the economy has recovered from the pandemic as the environment has returned to normality with the restrictions lifted. Overall, the trustees are satisfied with the performance of the organisation given the exceptionally tough trading conditions and an increase in competition. The trading subsidiary companyi Delta One Investments Limited, continues to sell donated goods and the trustees are pleased with its contribution to the funding of the charity. The trustees are satisfied that the group's assets are available and adequate to fulfil its obligations for the foreseeable future. Reserves policy In assessing the appropriate level of reserves to be maintained by the group, the trustees take historic and forecast levels of income and expenditure and their volatility into account. This has resulted in a current policy of maintaining the level of free reserves in the range of 3 to 6 months forward expenditure. The Board reviews the policy on reserves annually. The current level of funds held by the charity at the year-end amounted to £7,249,024 (2022 £7,517,762) and included restricted funds of £7,408,139 12022 £7,029,021). After dedLJCting restricted funds and fixed assets, including the investment property, the Group had a deficit of free reserves of £946,910 (2022 - £261,842 deficit). Given the deficit of free reserves the current policy is not met in the current or preceding year. The board Is working on plans to strengthen the free reserves of the charity to meet future requirements. Plans for future periods The Trustees hope to increase the organisation's humanitarian activities in Yemen as well as expanding operations in all current international field offices. Domestically within the UK, the Board plans to do more community charitable projects and intends to increase the number of charity shops in London. Reference and administrative details For reference and administrative details please see Charity Information on page l. io
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) structure Governance and Management The Directors of the Charitable Company are its Trustees for the purposes of charity law. The Trustees and Officers serving during the year and since the year end were as follows.. Dr Haytham Al-Khaffaf (Chairman) Mr Bara Abdul-salam Mr Mohanned Rahman Mr Suhail Sharief Mr Ayad Al-Rawi Company Secretary- Mr Kassim Tokan The Senior Management Team takes day to day responsibility for operational management of the Charity. During the year the Senior Management Team comprised the following key individuals.. Dr Nabeel Ramadhani Chief Executive Officer/President Mr Kassim Tokan - Deputy Chief Executive Officer Mr Mohammed Rahman Head of International Programmes Mr Naeem Amza - Accountant Constitution Human Relief Foundation is a company limited by guarantee, governed by its articles of association which have not been amended since incorporation on 30 March 2007. The charity registered with the Charity Commission on 14 October 2008 after receiving a gift in kind upon the dissolution of its predecessor charity also named Human Relief Foundation. The liability of members is limited to £1 per member. The charity has a trading subsidiary, Delta One Investments Limited, a company limited by shares, registered company number 07461733. Appointment of Trustees The Board of Trustees consists of local people that collertively have the skills, expertise and experience to ensure that the Charity is managed effectively. Where a vacancy arises, a new trustee is appointed only by the passing of a resolution of the Board of Trustees. Trustee induction and training Trustees are indurted by the Board approving their applications, having regard to their potential contribution towards the Charity's objectives and the need for a broad range of experience amongst Trustees. Once appointed, new Trustees are briefed and given a training handbook. In some cases, it may be mutually agreed that a formal course will be beneficial; the Charity will arrange formal tuition with NCVO or other provider as appropriate. Organisation The Board of Trustees administers the Group. The Board normally meet5 4 times per year, covering matters pertaining to finance, investmenti governance, human resources, fundraisingi public relations and retail. The Board of Trustees includes a range of individuals with the appropriate knowledge and experience. External advisor5 may be engaged, be they paid or voluntaryi where the Board deem it necessary to support them in their role. li
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) Organlsatlon (¢ontlnued) A President and Senior Management Team are appointed by the Trustees to manage the day-to-day operations of the Charity. To facilitate effective operations the President and the Senior Management Team under the direction of the President have delegated authority for operational matters. Related parties and co-operation with other organisations None of our Trustees receive remuneration or other benefit from their work with the Group. Any connection between a Trustee or member of the Senior Management Team, a supplier, funder, supporter, organisation working collaboratively with, or beneficiary of the Group must be disclosed to the Board of Trustees in the same way as any other contractual relationship with a related party. The work of the Charity is internationally recognised and in April 2003 Special Consultative Status with the Economic and Social Council of the United Nations was granted. HRF is a signatory of the Code of Conduct for the International Red Cross and Red Crescent Societies and has a partnership agreement with the European Commission Humanitarian Aid {ECHO}. It is also a member of the British Overseas National Development Forum (BOND). The Charity's wholly-owned subsidiary companyi Delta One Investments Limited, trades on the Charity's behalf to generate income from the sale of donated goods in its charity shops. Pay policy for senior staff The pay of the President and Senior Management Team is reviewed annually and is normally increased in line with inflation and comparable roles within the sector. Principal risks and uncertainties The Trustees have identified resources and established review systems to manage organisational risk. The Trustees maintain a risk register of the risks faced by the Charity and its subsidiary that is reviewed at least annually. The risk register records the risks that may arise in each area of the Charity's operations, along with the policies, systems and procedures in place to mitigate them. Risks are identified, assessed, and scored according to their likelihood and impact. Appropriate steps are then taken to mitigate them in day-to-day operation5. The principal risks and uncertainties faced by the Group at the time of writing are as follows.. Increase in competition where a growing number of charities are seeking funds from the same donors. Compliance requirements with relevant laws and regulations. Foreign exchange risk. Safeguarding assets against unauthorised use. The continued ability to transfer funds to certain jurisdictions. 12
Human Relief Foundation Report of the Trustees for the year ended 31 December 2023 (continued) statement as to disclosure to our auditor In so far as the Trustees are aware at the time of approving our Trustees. annual report.. there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group's auditor is unaware, and the Trustees, having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Auditor Azets Audit Services Limited have indicated their willingness to be reappointed as auditor. The Trustees, Report was approved by the Board of Trustees and signed on its behalf by.. Mr Mohanned Rahman Trustee 2011212024 Date.. 13
Human Relief Foundation Trustees. responsibilities in relation to the financial statements The Trustees are responsible for preparing a Trustees, Annual Report and Financial Statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice}. Company law requires the Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period. In preparing the financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistentlyi observe the methods and principles in the Charities SORP,. make judgements and estimates that are reasonable and prudent. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. prepare financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue to operate. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. 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. 14
Human Relief Foundation Independent Auditor's Report to the Members of Human Relief Foundation Opinion We have audited the financial statements of Human Relief Foundation {'the charitable company,) and its subsidiary I'the group'l for the year ended 31 December 2023 which comprise of the consolidated and charity statement of financial activities, the group and charity balance sheets, the consolidated statement of cash flows and the related 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.. give a true and fair view of the state of the group's and charitable company's affairs as at 3 1 December 2023 and of its income and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotlandl Act 2005 and regulations 6 and 8 of the Charities Accounts {Scotland) Regulations 2006 las amended). 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. Conclusion5 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 collectivelyi may cast significant doubt on the charitable company's or the group's ability to continue as a going conrn for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other information The trustees are responsible for the other information. The other infomiation comprises the information included In the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other Information and, except to the extent othenNise 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 reouired 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. 15
Human Relief Foundation Independent Auditor's Report to the Members of Human Relief Foundation (continued) Opinions on other matters prescribed by the Companies Act 2006 In OLJr opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report (incorporating the strategic report and the directors. report) for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the trustees, report (incorporating the strategic report and the dirertors. report) has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and 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 respett of the following matters in relation to which the Companies Act 2006 and Charities Accounts {Scotland) Regulations 2006 las amended) require us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us. the financial statements are not in agreement with the accounting records and returns. certain disclosures of trustees, remuneration specified by law are not made. or we have not obtained all the information and explanations necessary for the purposes of our audit. Responsibilities of the trustees As explained more fully in the trustees. responsibilities statement, 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 they 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 trLJStees are responsible for assessing the group's and 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 accoLJnting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audit of the financial statements We have been appointed as auditor under section 4411}(c) of the Charities and Trustee Investment {Scotland) Art 2005 and under the Companies Act 2006 and in accordance with the Acts 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 assLJrance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detert 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. 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.ory.uk/auditorsresponsibilities. This description forms part of our auditor's report. 16
Human Relief Foundation Independent Auditor's Report to the Members of Human Relief Foundation (continued) Extent to which the audit was considered capable of identifying irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respett of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud. Reviewing minutes of meetings of those charged with governance,. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations,. Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias- Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period,. and Considering whether any restrictions on income are properly identified and that expenditure allocated to restricted income is appropriate. 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgeryi intentional omissions, misrepresentations, or the override of internal control. 17
Human Relief Foundation Independent Auditor's Report to the Members of Human Relief Foundation (continued) 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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotlandl Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Alan Sidebottom Senior Statutory Auditor Date.. 2011212024 For and on behalf of Azets Audit Services Limited Statutory Auditor Triune Court Monks Cross Drive York Y032 9GZ 18
Human Relief Foundation Charity only Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2023 Restated 2022 Total Unrestricted Restricted fund5 funds 2023 Total Notes Income from: Donations and non-perfomiance grants Income from charitable activities 1,585,759 2,225,102 3,810,861 6,422,388 Grants receivable 3, 155,950 3, 155,950 5,230 20,044 7,052,067 6,430 701 Other income 5,230 20,044 Income from investnFents Total income 1,611,033 5,381,052 6,992,085 13,481,586 Expenditure on: Raising funds Charitable activities 873,996 1,399,046 873,996 6,419,827 918,006 11,618,054 5,020,781 Total expendlture 2,273,042 5,020,781 7,293,823 12,536,060 Net income/(expenditure} Transfers between funds (662,0091 (18,8471 360,271 18,847 1301,738) 945,526 other recogni5ed gains/{losse$) Unrecognised gain on investment Net movement in funds 42,681 (638, 1751 479,060 42,681 1259,057) 7,508,081 379,118 7,029,021 945,526 6,562,555 Total funds brought forward Total funds carrled forward 12, 13 (159,1151 7,408,139 7,249,024 7,508,081 The Statement of Financial Activities complies with the requirement5 for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year. The results for the year all relate to continuing operations. A fully detailed charity only Statement of Financial Activities for the year ended 31 December 2022 is shown at note 18. 19
Human Relief Foundation Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2023 Restated 2022 Total Unrestricted funds Restricted funds 2023 Total Notes Income from: Donations and non-performance grants Other trading activities Retail - sale of donated goods Income from charitable activities 1,530,003 2,225,102 3,755,105 6,351,790 526,420 526,420 482,728 Grants receivable 3, 155,950 3, 155,950 7,052,067 Other income 5,230 20,044 5,230 20,044 6,430 701 Income from investments Total income 2,081,697 5,381,052 7,462,749 13,893,716 Expenditure on: Raising funds Charitable activities 1,325,346 1,399,046 1,325,346 6,419,827 1,322,631 11,618,054 5,020,781 Total expenditure 2,724,392 5,020,781 7,745,173 12,940,685 Net in¢ome/(expendlture) Transfers between funds {642,695) {18,847) 360,271 18,847 1282,424) 953,031 Other recognised gains/(losses) Unrecognised gain on investment Taxation and interest lin subsidiary) Net movement In funds 42,681 42,681 {28,995) 1647,856) 488,741 128,995) 1268,738) 7,517,762 379,118 7,029,021 953,031 6,564,731 Total funds brought forward Total funds carried forward 12, 13 {159,115) 7,408,139 7,249,024 7,517,762 The Statement of Financial Activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year. The results for the year all relate to continuing operations. A fully detailed Consolidated Statement of Financial Activities for the year ended 31 December 2022 is shown in note 19. 20
Human Relief Foundation Balance Sheets as at 31 December 2023 Group 2023 Charity 2023 2022 Restated 2022 Restated Notes Fixed assets Tangible assets Investment properties Investtnents - Subsidiary Investments - Bitcoin 590,279 125,000 595,747 125,000 568,979 125,000 588,472 125,000 9a 72,516 29,836 72,516 29,836 787,795 750,583 766,496 743,309 Current assets Debtors io 552,207 6,048,095 6,600,302 1,949,604 5,380,722 7,330,326 1,173,989 5,439,138 6,613,127 2,508,047 4,809,903 7,317,950 Cash at bank and in hand Creditors: Amounts falling due within one ear Net current a55et5 li {139,073) 1563,147) 1130,599) (553, 178) 6,461,229 6,767, 179 6,482,528 6,764,772 Total assets less current liabilities 7,249,024 7,517,762 7,249,024 7,508,081 Funds of the charity Unrestricted funds {159,115) 7,408, 139 488,741 7,029,021 1159,115) 7,408,139 479,060 7,029,021 Restricted funds 12 Total funds 13 7,249,024 7,517,762 7,249,024 7,508,081 The notes on pages 23 to 46 form part of these financial statements. The financial statements were approved by the board on 2011212024 and signed on its behalf by.. Mr Mohanned Rahman Trustee Company registration number: 06195282 21
Human Relief Foundation Consolidated Statement of Cash Flows for the year ended 31 December 2023 Notes 2023 2022 As restated Cash enerated from o erations 16 703 936 11,9811 125,4521 676,503 Interest paid Income taxes aid Net cash rovided b eratin activities 78,346 Cash flows from investing activities Purchase of property, plant and equipment Bank interest received (28,4431 114,9041 701 Net cash used in inve$tln artlvltles {9,130) {14,203) Increase in cash and cash equivalents in the year Cash and cash e uivalents at the be of the 667,373 5 380 722 6,048,095 64,143 5 316 579 5,380,722 ear Total cash and cash e uivalents at the end of the ear 22
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. Company information The Charity is limited by guarantee, with the liability of members limited to £1 per member. The charity is registered in England and Wales with the Charity Commission and in Scotland with the Scottish Charity Regulator. The registered office is 2-4 Claremont, Bradford, BD7 IBQ. If, upon winding up or dissolution of the charity, there remain any assets after satisfying all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having objectives similar to the charity. Accounting convention The financial statements have been prepared on a going concern basis 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 1021 {effective l January 2019) {"Charities SORP {FRS 1021"), the Financial Reporting Standard applicable in the UK and Ireland IFRS 102), the Companies Art 2006, the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006. Human Relief Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes. The financial statements are prepared in sterlingi which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. On the grounds that the charitable company's results are consolidated into the charitable company's group accounts the charitable company has taken advantage of certain exemption5 conferred by section l. I l of FRS 102 as follows- Exemption from presenting a charitable company statement of cash flows as a primary statement to the financial statements. Going concern The Trustees recognise that the charity has negative unrestricted funds but positive funds overall. Measures were put in place late 2023 to try and alter the balance between restricted and unrestricted donations and the Trustees recognise that further actions need to be taken, which will be done early 2025. Given the charity has a successful track record of fundraising, the Trustees anticipate that the charity will be able to generate the additional unrestricted funds necessary to reverse the negative unrestricted position but that this will be through 2025. Given the above and the expected level of income and expenditure for 12 months from the authorisation of these financial statements, together with the overall level of reserves and cash at bank, the Trustees believe they will have sufficient resources to meet the charitable company's and group's requirements. Accordingly, the financial statements have been prepared on a going concern basis. Basis of consolidation The financial statements consolidate the results of the charity and its wholly owned subsidiary, Delta One Investments Limited, on a line by line basis. 23
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Income Income is recognised when the charity has entitlement to the funds, any performance conditions attaching to the itemlsl have been met, it is probable that the income will be received and the amount can be measured reliably. Income from grants is recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. Where grant income has been received, but the charity has not met the conditions to become entitled to the income, an income deferral is made. Donated goods and services Donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is recognised in expenditure in the period of receipt. Income from goods donated for sale in the charity's shops is recognised at the point of sale. As a result of the high volume of low value donated goods received, the cost of recognising these items at fair value on receipt would outweigh the benefit of recognising them in the accounts. In accordance with the Charities SORP IFRS 102), the value of volunteer time is not recognised in the financial statements. Investment income Interest on funds held on deposit is included when receivable and the amount can be measured reliablyi normally upon notification of interest paid or payable by the Bank. Rents from investment properties are included when they are receivable by the charity. Fund accounting Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a particular purpose. Where no on-going restriction remains and all original conditions and restrictions have been met in relation to the original grant or donation, funds are transferred to general funds. The purpose and use of the restricted funds is set out in note 12. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been apportioned on a basis consistent with the use of the resources. The cost of raising funds includes fundraising event costs, direct campaigns, general information and public relation costs and their associated support costs. Expenditure on charitable activities relates to expenditure in furtherance of the charity's objects, including grants awarded and associated support costs. Irrecoverable VAT is charged as a cost against the activity for which expenditure was incurred. 24
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Allocation of support costs Support costs are those functions that asslst the work of the charity and include administration, finance, human resources, information systems and governance costs. These costs have been allocated between the costs of raising funds and expenditure on charitable activities on the basis set out in note 4. Operating leases Rentals payable under operating leases, including any lease incentives received, are charged to the statement of financial activities on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. Staff costs The costs of short-term employee benefits are recognised as a liability and an expense where settlement of obligations does not fall within the same period. Employee severance pay is recognised within the accounts, on an accruals basis, in the year in which the employee left the organisation. Investments Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequentlyi It is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities. Investments in subsidiaries are stated at cost and the trustees review the carrying value annually for indications of impairment. Investments in Bitcoin are carried at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities. 1.10 Tangible fixed assets Fixed assets are included on a historical cost basis. It is a policy of the trustees that individual items with a cost below £500 are not capitalised. Depreciation is provided at the following rates and bases to write off the cost of tangible fixed assets over their estimated useful lives by annual instalments, with a full year's charge in the acquisition year and no charge in the year of disposal.. Freehold buildings Leasehold buildings Fixtures and fittings Motor vehicle5 Computer equipment 20/0 Straight line 200/0 Straight line 200/0 Straight line 200/0 reducing balance 25Q/o Straight line Freehold land is not depreciated. i.ii stock Due to the high volume and low value of stock items, it is impractical to estitnate the fair value of goods donated for sale in the charity's shops and to include them on the balance sheet. The value of these goods is instead recognised upon sale. 25
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 1.12 Financial instruments The group has elected to apply the provisions of Section I I 'Basic Financial Instruments. and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the group's balance sheet when the group becomes party to the contrartual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 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 held for working capital. Bank overdrafts are shown within borrowing in current liabilities. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid. Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset. Impairment losses are recognised in the income and expenditure account. Creditors loans and provisions Creditors, loans and provisions are recognised where the group 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, loans and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Financial liabilities are only derecognised when, and only when, the group's obligations are discharged, cancelled or they expire. Amounts recognised as provisions are best estimates of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. 1.13 Taxation Human Relief Foundation is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordinglyi the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 20 10 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising. The trading subsidiary is liable to corporation tax on its chargeable profits. Current tax is provided at amounts expected to be paid lor recovered) using the tax rates and law5 that have been enacted or substantially enacted at the balance sheet date. Low levels of corporation tax arise on the subsidiary as profits are gift aided to the charity. 1.14 Foreign Currency Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to statement of financial activities. 26
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) I.IS Pensions The group operates a defined contribution scheme for the benefit of employees. Contributions are charged as an expense to the statement of financial activities in the period in which they fall due. Critical accounting estimates and judgements In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other fattors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.. Accrued income Accrued income has been included within these financial statements when its receipt is considered probable. Management assesses the probability of its receipts by considering contracts and agreements in place, current relationships with funders and, where applicable, work performed. 27
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Income For the year ended 31 December 2023 Unrestricted income Restricted income 2023 Total Donations and non-performance grants.. Donations from individuals and charitable organisations {including Gift Aid) Gift Aid donation from subsidiary UK Care for Children 1,361,145 2,225, 102 3,586,247 55,756 168,858 55,756 168,858 Charity only total 1,585,759 2,225,102 3,810,861 Gift Aid donation from subsidiary 155,756) 1,530,003 (55,7561 3,755,105 Group total 2,225,102 InconFe fmm charitable activities Performance related grants receivable.. Bangladesh IDP Project 288,701 288,701 UNDP217 Project 168,022 168,022 UNDP301 Project 619,035 619,035 UNDP318 Projert 455,504 455,504 UNDP SC-USAID-RPA-002-23 1,271,320 1,271,320 UN Women 175,047 175,047 IOM - Yemen 6,982 6,982 GIZ 171,339 171,339 Charity and group total 3,155,950 3,155,950 Other income Rental income 5,230 5,230 Charity and group total 5,230 5,230 Income from Investments Bank deposit interest Exchange gains 19,313 19,313 731 731 Charity and group total 2D,044 20,044 28
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Income (continued) For the year ended 31 December 2022 - Restated Unrestricted income Restricted income 2022 Total Donations and non-performance grants: Donations from individuals and charitable organisations (including Gift Aid) Gift Aid donation from subsidiary UK Care for Children 1,133,899 4,979,883 6, 113,782 70,598 70,598 238,008 238,008 Donations in kind Charlty only total Gift Aid donation from Subsidiary Group total 1,442,505 4,979,883 6,422,388 (70,5981 {70,598) 1,371,907 4,979,883 6,351,790 Income from charitable activities Performance related grants receivable.. Bangladesh IDP Project OCHA Project 2,516,088 2,516,088 38,497 38,497 UNDP216 Projert 104, 103 104,103 UNDP217 Projert 176,308 176,308 UNDP301 Project 85,249 85,249 UNDP327 Project 195,516 2,469,828 2,665,344 UNDP421 Project 474, 123 474,123 WFP Project 992,355 992,355 Charity and group total 195,516 6,856,551 7,052,067 Other income Rental income 6,430 6,430 Charlty and group total 6,430 6,430 Income from investments Bank deposit interest 701 701 Charity and group total 701 701 Included within donations from individuals and charitable organisations is Gift Aid amounting to £322, 186 (2022 - £293,434). 29
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Analysis of expenditure For the year ended 31 December 2023 Direct costs Allocated costs Total 2023 Expenditure on raising funds." Donations campaign 108,840 108,840 Donations fundraising activities Charity only total Retail costs in subsidiary 656,317 108,839 765, 156 656,317 217,679 873,996 451,350 451,350 Group total 1,107,667 217,679 1,325,346 Expenditure on charitable activitiTes." Health, education and skills development Widows and orphans support 399,858 120,202 520,060 592,061 247,824 839,885 Qurbani 226,629 116,610 343,239 Emergency and natural disasters Grant funded programmes 894,007 696,513 1,590,520 2,924,149 201,974 3,126,123 5,036,704 1,383,123 6,419,827 Total expenditure (charity only) 5,693,021 1,600,802 7,293,823 Total expenditure (group) 6, 144,371 1,600,802 7,745,173 Retail costs in subsidiary expenditure includes staff costs totalling £266,848 12022 £243,232). 30
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Analysis of expenditure (continued) For the year ended 31 December 2022 - Restated Direct costs Allocated costs Total 2022 Expenditure on raising funds." Donations campaign 202,665 202,665 Donations fundraising activities Charity only total Retail costs in subsidiary 242,456 472,885 715,341 242,456 675,550 918,006 404,625 404,625 Group total 647,081 675,550 1,322,631 Expendlture on charltable a¢tlvltles.' Health, education and skills development Widows and orphans support 449,530 318, 175 767,705 1,050,478 288,278 1,338,756 Qurbani 851,235 190,826 1,042,061 Emergency and natural disasters Grant funded programmes 1,123,995 645,080 1,769,075 6,452,651 247,806 6,700,457 9,927,889 1,690, 165 11,618,054 Total expenditure (charity only) 10,170,345 2,365,715 12,536,060 Total expenditure (group) ID,574,97D 2,365,715 12,940,685 31
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Analysis of expenditure (continued) Support costs Support costs have been allocated based on an estimate by management of time spent by employees contributing to each activity. Support costs have been allocated as follows.. Employment costs Prernises costs Administration costs Total 2023 For the year ended 31 December 2023 Donations campaign 36,941 6,536 65,363 108,840 Donations fundraising artivities 36,941 6,536 65,362 108,839 Health, education and skills development 10,458 109,744 120,202 Widows and orphans support 22,223 225,601 247,824 Qurbani 10,458 106, 152 116,610 Emergency and natural disasters 62,747 633,766 696,513 Grant funded programmes 66,494 11,765 123,715 201,974 140 376 130 723 1 329 703 1 600 802 Certain employment costs are now allocated directly to fundraising or restrirted activities, as appropriate, rather than being included within support costs. Employment costs Premises costs Administration costs Total 2022 For the year ended 31 December 2022 - Restated Donations campaign 99,495 16,472 86,698 202,665 Donations fundraising artivities 232,154 38,435 202,296 472,885 Health, education and skills development 66,330 10,981 240,864 318,175 Widows and orphans support 82,912 13,727 191,639 288,278 Qurbani 66,330 10,981 113,515 190,826 Emergency and natural disasters 207,280 34,317 403,483 645,080 Grant funded programmes 74,621 12,354 160,831 247,8D6 829,122 137,267 1,399,326 2,365,715 32
Human Relief Foundation
Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued)
5. Net income for the year
Net income for the year is stated after charging:
| 2023 | 2022 | ||
|---|---|---|---|
| Restated | |||
| £ | £ | ||
| Depreciation of owned assets | 33,338 | 28,924 | |
| Foreign | exchange loss/(gain) | 42,426 | (11,118) |
| Operating lease charges | 71,395 | 44,700 | |
| Auditor’s remuneration: | |||
| - | for the audit of the financial statements (Charity: £15,000, 2022 - £13,500) |
18,250 | 16,500 |
| - | for the provision of other services | 9,650 | 4,250 |
| 6. | Information regarding trustees and employees |
||
|---|---|---|---|
| 2023 | 2022 | ||
| Restated | |||
| £ | £ | ||
| Staff costs comprise | |||
| Wages and salaries | 1,839,293 | 1,976,032 | |
| Social security costs | 172,535 | 244,960 | |
| Pension costs | 4,731 | 20,971 | |
| 2,016,558 | 2,241,963 |
During the year, the group employed an average of 121 staff (2022 – 140 (as restated)).
The Trustees received no remuneration or benefits during either year. Trustees received a total of £nil (2022 - £nil) in respect of out of pocket expenses incurred during the year.
The number of employees whose annual remuneration was more than £60,000 is as follows:
| 2023 | 2022 | ||
|---|---|---|---|
| Number | Number | ||
| £60,000 | - £70,000 | 1 | 1 |
During the year the brother of Mr M Rahman, a trustee, was employed by the charity on a full-time basis as the Head of International Programmes. He received gross remuneration of £56,183 (2022 - £55,000) during the year.
The key management personnel of the charity and group comprise the trustees and senior management team. The total employee benefits of the key management personnel employed by the charity and group, which encompasses 3 individuals plus the trustees, were £194,738 (2022 - £191,249).
33
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Taxation Human Relief Foundation is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Att 2010. Accordinglyi the charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 20 10 or sertion 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising. Given this, no tax charge arises on the charity. The trading subsidiary is liable to corporation tax on its chargeable profits. Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid {or recovered) using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date. Details of the current tax charge are included at note 9. Tangible fixed assets Group Freehold Leasehold land and land and buildings buildings Flxtures and Computer fittings equipment Motor Vehicles Total Cost l January 2023 (restated) 685,825 20,000 102,386 90,850 12,426 911,487 Additions 16,464 4,450 7,529 28,443 11,207) Disposals {3511 {8561 31 December 2023 685,825 36,464 106,485 97,523 12,426 938,723 Depreclatlon l January 2023 (restated) 115,749 20,000 90,366 77,199 12,426 315,740 Charge for the year Eliminated in respect of disposals 22,476 263 3,987 6,612 33,338 {2421 {3921 {6341 31 December 2023 138,225 20,263 94,111 83,419 12,426 348,444 Net book values 31 December 2023 547,600 16,201 12,374 14,104 590,279 31 December 2022 (restated) 570,076 12,020 13,651 595,747 34
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Tanglble flxed assets (contlnued) Charity Freehold Leasehold Fixture5 land and land and and Computer buildings buildings fittings equipment Motor Vehicles Total Cost l January 2023 (restated) Additions 685,825 20,000 52,593 90,850 12,426 861,694 4,450 7,529 11,979 Disposals 13511 18561 (1,2071 31 December 2023 685,825 20,000 56,692 97,523 12,426 872,466 Depreciation l January 2023 (restated) 115,749 20,000 47,848 77,199 12,426 273,222 Charge for the year Eliminated in respect of disposals 22,476 1,811 6,612 30,899 12421 13921 16341 31 December 2023 138,225 20,000 49,417 83,419 12,426 303,487 Net book values 31 December 2023 547,600 7,275 14,104 568,979 31 December 2022 (restated) 570,076 4,745 13,651 588,472 Investments The Charlty and the Group 2023 2022 UK Investment property Market value at l January 2023 and 31 December 2023 125,000 125,000 The investment property has an historic cost of £300,000 and was independently valued by A J Idle MRICS of Andrew Idle Commercial Property Limited on 10 June 2015 on the basis of open market value. The Trustees believe that the valuation still materially represents fair value at the balance sheet date. 35
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) Investments (continued) Charity 2023 2022 Shares in subsidiary undertaking Delta One Investments Limited The Charity owns IOOD/u of the ordinary share capital of Delta One Investments Limited, a company registered in England and Wales whose principal activity is the sale of donated goods. Under a deed of covenant, the subsidiary gifts its taxable profit to the parent charity as a Gift Aid donation. The income and expenditure of Delta One Investments Limited, which have been Included in these consolidated accounts, for the year ended 31 December 2023 Is summarised below.. 2023 2022 Turnover - sale of donated goods Administrative expenses Other operating income Profit on ordinary activities for the financial year Interest payable on overdue tax Gift aid payment to Human Relief Foundation Profit on ordinary activities before taxation Tax on profit on ordinary activities Current tax charge Adjustment in respect of prior years Profit retained for the financial year 526,420 1451,350) 482,728 1404,625) 75,070 11,981) 155,7561 17,333 78,103 {70,598) 7,505 11,562) 125,452) 19,681) 7,505 The aggregate assets, liabilities and funds were: 2023 2022 Fixed assets 21,300 620,419 1641,718) 7,275 580,976 1578,569) 9,682 Current assets Represented by.. Called up share capital Profit and loss account 9,681 9,682 36
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 9a. Investments The Charity and the Group 2023 2022 Investment (cryptocurrencies) Brought forward Revaluation 29,836 42,680 72,516 77,306 (47,4701 29,836 Carried forward Cryptocurrencies were donated to the charity in a prior year and are remeasured at fair value as of the reporting date. 10. Debtors Group 2023 Charity 2023 2022 2022 restated restated Trade debtors Atnount owed by subsidiary Prepayments Accrued income Other debtors Taxes and social security costs 6,601 3,238 6,601 633,244 94,812 411,173 26,917 1,242 1, 173,989 3,238 568,600 419,226 1,482,234 29,114 5,635 2,508,047 183,190 330,137 26,979 5,300 552,207 419,226 1,482,234 39,271 5,635 1,949,604 11. Creditors Amounts falling due within one year Group 2023 Charity 2023 2022 restated 2022 restated Trade creditors Other creditors Accruals and grant commitments Deferred income 90,906 7,234 40,933 278,720 245,109 39,318 90,906 3,761 35,932 278,720 239,640 34,818 139,073 563, 147 130,599 553,178 Deferred incorne 2023 2022 Deferred income brought forward Amounts released in the year Income deferred during the year Deferred income carried forward 2,855 {2,855) 37
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 12. Movements in restricted funds The Charity and the Group l January 2023 Income Expenditure Transfers 31 December 2023 For the year ended 31 December 2023 Health, education and skills development Widow and orphan support Qurbani Emergency appeals Bangladesh IDP Project UNDP217 Projert 427,028 (399,8581 27,170 592,778 (592,0611 717 520,830 5,975,958 205,892 991,513 288,701 168,022 (226,6291 1894,0071 (283,9311 (152,0441 (608,7681 (393,9771 500,093 6,073,464 4,770 15,978 UNDP301 Project UNDP 318 Projert 619,035 455,504 10,267 61,527 UNDP SC-USAID-RPA- 002-23 1,272,253 {1, 120,814) 151,439 UN Women Projert UNDP Diyala Projett 175,047 (67,4341 (11,9371 113,8921 (23,8751 (31,9371 (199,6171 107,613 11,937 IOM Yemen Project GIZ Project Jordan branch fund 6,982 171,339 6,919 6,910 147,464 155,852 151,746 39 7,408, 139 180,870 351,363 Iraq branch fund Yemen branch fund 39 7,029,021 5,381,052 (4,422,335} 18,847 38
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 12. Movements In restrlrted funds (contlnued) l January 2022 Income Expenditure 31 December 2022 For the year ended 31 December 2022 Health, education and skills development Widow and orphan support Qurbani Emergency appeals Bangladesh IDP Project OCHA Project UNDP216 Projert UNDP2 17 Project UNDP301 Project UNDP327 Project UNDP421 project 148,126 299,323 1447,449} 57,038 602,242 1,372,065 2,706,253 2,516,088 38,497 104, 103 176,308 85,249 2,469,828 474, 123 992,355 1659,280} 1851,235) (1,331,895) (2,516,088) 138,497) 1104,103} 1176,308} 185,249) (2,469,828) 1474,123} 1992,355) 109,802 108 719 520,830 5,975,958 4,601,600 WFP Project Jordan branch fund 71,068 180,870 351 363 Ira branch fLJnd 5,120,476 11,836,434 19,927,889) 7,029,021 39
Human Relief Foundation 12. Movement5 in restricted funds (continued) Restricted funds consist of unspent restricted grants and donations. The nature and application of the restricted funds are as follows.. Fund Nature and application Health, education and skills development Provides support to beneficiaries with healthcare, such as immunisations. Also provides beneficiaries with sponsorship in educational and skills courses to help them become self-reliant. Provides orphans and vulnerable families with food, water, shelter, education and accommodation. Widow and orphan support Facilitates the requirements of the donors where it is obligatory to perform Qurbani. The beneficiaries of this fund are in the poorer countries who will benefit the most. QLJrbani This is intended to aid those beneficiaries who urgently require assistance such as victims of earthquakes, internally displaced people as a result of conflirt etc. Emergency appeals Sangladesh IDP Project Multi-sector asslstance for displaced Rohingya refugees in 8anglade5h. Distribution of sealing off kits (SOKs} to 1,253 households and 140 emergency shelter repairs in Kirkuk, Iraq. Promoting economic recovery through entrepreneurship and business creation in Muthanna Governorate in Iraq. Provision of demand-driven vocational training for youth in Mosul, Iraq, in the construction and housing sectors informed by a rapid local market assessment. OCHA Project UNDP216 Projett UNDP217 Project UNDP301 Project Provision for supporting livelihood through agriculture in Sinjar, Sinune and Al-mahalabia, Ninawa Iraq. Supporting a Resilient Economic Recovery by Strengthening the SMES Sertor in Anah, Anbar governorate -Iraq. Community Security and Integration Process For the empowerment of women. Supporting a Resilient Economic Recovery by strengthening Small and Medium Enterprises in Baqubah District, Diyala Governorate. Enhancing the Response Capacity of Humanitarian Artors in Aden Governorate through Prepositioning of Essential Relief Items in Aden Stabilisation Support in Iraq through Violence Prevention UNDP 318-22 UNDP SC-USAID-PRA UN Women UNDP Diyala IOM - Yemen GIZ Bangladesh IDP Multi-sector assistance for displaced Rohingya refugees in Bangladesh. Supporting Livelihoods & Economic Reintegration for Returnee Communities in Iraq through livelihood interventions including. community-based initiatives, business training, grant distribution and vocational training. Provide support to micro, small and medium-sized enterprises in Sinjar and Sinunni, Ninawa- Iraq. Delivering daily school meals to 46,000 students across 148 schools in Qadisyah, Irao and to 15,000 students across 57 schools in Salad Al- Din, Iraq. UNDP327 Project UNDP421 Project WFP 40
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 13. Analysis of assets and liabilities between funds Unrestricted funds Restricted funds Total Group- as at 31 December 2023 Tangible fixed assets Investments 590,279 197,516 1807,837) 139 073 {159,1151 590,279 197,516 6,600,302 139 073 7,249,024 Current assets 7,408,139 Current liabilities Total net assets 7,408,139 Unrestricted fund5 Restricted funds Total Group - as at 31 December 2022 Restated Tangible fixed assets Investments 595,747 154,836 595,747 154,836 Current assets 301,305 563 147 7,029,021 7,330,326 563 147 Current liabilities Total net assets 488,741 7,029,021 7,517,762 Unrestricted funds Restricted funds Total Charlty- as at 31 December 2023 Tangible fixed assets Investments 568,979 197,517 1795,012) 130 599 568,979 197,517 6,613,127 130 599 Current assets 7,408,139 Current liabilities Total net assets {159,1151 7,408,139 7,249,024 Unrestricted funds Restricted funds Total Charity- as at 31 December 2022 Restated Tangible fixed assets Investments 588,472 154,837 588,472 154,837 Current assets 288,929 553 178 479,060 7,029,021 7,3 17,950 553 178 7,508,081 Current liabilities Total net assets 7,029,021 41
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 14. Operating commitments At 31 December 2023, the charity and the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows'.- The Charity and the Group 2023 2022 Due within l year 25,195 21,000 Due between 2 and 5 years 90,654 84,000 Due over 5 years 252,000 271,250 367,849 376,250 15. Related party transactions Property rent has been paid to a member of key management personnel during the year, totalling £12,000 (2022 £12,000). During the year, Human Relief Foundation ("HRF"I conducted the following transactions with its subsidiary, Delta One Investments Limited l-Delta One"): Delta One made a gift aid donation under a deed of covenant to HRF of £55,756 {2022 £78,103). At 31 December 2023, HRF was due £633,244 from Delta One {2022 - £568,600 Irestatedl). A number of HRF associated/affiliated charities and non-governmental operations (NGO'S) are in operation throughout the world. These do not form part of the same group as HRF, however they do have some common management. HRF paid funds amounting to £271,982 12022 £386,505 (as restated)) during the year to these charities and NGO'S to assist HRF to deliver/perform its charitable activities. At the year end, HRF had creditor balances totalling £140,565 (2022 £88,894 (as restated)) owing to these charities/NGO's. 42
Human Relief Foundation 16. Reconciliation of net rnovernent in funds to net cash flow from operating activities 2023 2022 As restated Net movement in funds 1268,738) 953,031 Adjustments for: Depreciation charges 33,338 28,924 Interest received 119,313) 573 17011 372 Loss on disposal of fixed assets Income tax 25,452 Finance costs 1,981 Unrealised (gainl/loss on investment Decrease / (increase) in debtors Decrease in creditors 142,681) 1,397,397 47,470 (818,5341 (132,2161 1424,073) Net cash provided by operating activities 703,936 78,346 17. Analysis of changes in group net debt The charity had no net debt during either the current or preceding year. 43
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 18. Comparative charity only Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2022 - restated Unrestricted funds Restricted funds 2022 Total Income from: Donations and non-performance grants Income from charltable actlvltles 1,442,505 4,979,883 6,422,388 Grants receivable 195,516 6,430 701 6,856,551 7,052,067 6,430 701 Other income Income from investments Total income 1,645,152 11,836,434 13,481,586 Expenditure on: Raising ftjnds Charitable activities 918,006 918,006 1,690,165 2,608,171 9,927,889 9,927,889 11,618,054 12,536,060 Total expenditure Net income and net movement in funds Total funds brought forward Total funds carried forward (963,0191 1,908,545 945,526 1,442,079 479,060 5, 120,476 7,029,021 6,562,555 7,508,081 44
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 19. Comparative Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 December 2022 - restated Unrestricted funds Restricted funds 2022 Total Income from: Donations and non-performance grants other trading activities Retail - sale of donated goods Income fmn7 charitable activities Grants receivable 1,371,907 4,979,883 6,351,790 482,728 482,728 195,516 6,430 701 6,856,551 7,052,067 6,430 701 Other income Income from investments Total income 2,057,282 11,836,434 13,893,716 Expenditure on: Raising funds Charitable activities 1,322,631 1,690, 165 3,012,796 1,322,631 11,618,054 12,940,685 9,927,889 9,927,889 Total expenditure Net incorne and net rnovement in funds Total funds brought forward Total funds carried forward (955,514) 1,908,545 953,031 1,339,446 383,932 5,225,285 7,133,830 6,564,731 7,517,762 45
Human Relief Foundation Notes to the Consolidated Financial Statements for the year ended 31 December 2023 (continued) 20. Prior year adjustment A prior year adjustment has been made to account for 3 overseas branches which were previoLJsIy believed to be charities in their own right. This adjustment affects the financial statements as noted below: A. Adjustment to funds at l January 2022 to introduce branch assets and liabilities at this date, excluding any amounts owed to/from the UK charity. This balance amounted to £418,521. . Adjustment to net income for 2022 to account for income and expenditure directly attributable to the overseas branches during the year. The net effect of this adjustment was an increase to the surplus for 2022 of £210,407 for both the Charity and the consolidated funds. C. As a result of accounting for such entities as branches, expenditure in the prior year had been overstated by £155,369 and incorrectly allocated to the unrestricted funds of the Charity. The net effect of the adjustments is shown in the tables below. Charity Surplus/(deficit) for the year ended 31 December 2022 Funds as at l January 2022 Fund5 at 31 December 2022 Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted As previously stated 1,337,270 4,806,764 226,996 6,496,788 (1, 110,274) 1,690,024 Prior period adjustment- correction of error.. 104,809 313,712 104,809 18,114) 155 369 313,712 218,521 18,114) 155 369 218,521 As restated 1 442 079 5 120 476 479 060 7 029 021 963 019 1 908 545 Consolidated Surplus/(deficit) for the year ended 31 December 2022 Funds as at l January 2022 Funds at 31 December 2022 Unrestricted Restricted Unrestricted Restricted Unrestricted Restricted As previously stated 1,339,446 4,806,764 236,677 6,496,788 {1, 102,769) 1,690,024 Prior period adjustn7ent - correction of ermr.. 104,809 313,712 104,809 18,114) 155 369 313,712 218,521 18,114) 155 369 218,521 As restated 1 444 255 5 120 476 488 741 7 029 021 955 514 1 908 545 46