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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 6708685 REGISTERED CHARITY NUMBER: 1127561

The Anglo-Omani Society Report of the Trustees and Financial Statements for the Year Ended 31 March 2022

The Anglo-Omani Society Contents of the Financial Statements

For the Year Ended 31 March 2022

Page
Company Information 1
Report of the Trustees 2 - 6
Independent Auditor's Report 7 - 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13 - 20

The Anglo-Omani Society Company Information For the Year Ended 31 March 2022

1

REGISTERED COMPANY NUMBER: 6708685

REGISTERED COMPANY NUMBER 6708685 (England and Wales)
REGISTERED CHARITY NUMBER 1127561
PATRON H.M. The Sultan of Oman
PRESIDENT H.E. The Ambassador of the Sultanate of Oman
TRUSTEES Maj-Gen R J A Stanford CB MBE_(Chairman)_
Brig. J McKeown CBE MA MPhil_(Vice-Chairman)_
Sheikh M H Al Rawahy
Mr M C Bishop FCA_(Honorary Treasurer)_
Mr O E S Blake
Mr J N G Bowden CMG OBE MVO
Mr C M Breeze
Sir Sherard L Cowper-Coles KCMG LVO
Mr S F Dickson
Dr E Kendall BA MA Hons DPhil
Ms K J Kinninmont
Miss D H Martin
Ms E P M Simpson
SECRETARY Mr J R G Traill
REGISTERED AND PRINCIPAL OFFICE 34 Sackville Street
London
W1S 3ED
AUDITORS Azets Audit Services Limited
Statutory Auditors and Chartered Accountants
Ashcombe Court
Woolsack Way
Godalming
Surrey
GU7 1LQ
PRINCIPAL BANKERS Barclays Bank PLC
One Churchill Place
London
E14 5HP
SOLICITORS Trowers & Hamlins LLP
3 Bunhill Row
London
EC1Y 8YZ
PROPERTY MANAGERS Cluttons LLP
2 Portman Street
London
W1H 6DU

The Anglo-Omani Society Report of the Trustees For the Year Ended 31 March 2022

2

REGISTERED COMPANY NUMBER: 6708685

The directors (referred to herein as the 'Trustees') of The Anglo-Omani Society (a 'charitable company' referred to herein as the 'Charity' or the 'Society') present their annual report with the financial statements of the Charity for the year ended 31 March 2022. The Trustees have adopted the provisions of Statement of Recommended Practice ('SORP') 'Accounting and Reporting by Charities' applicable to charities preparing their accounts in accordance with the Financial Reporting Standard effective 1 January 2015 (the 'Charities SORP 2015 (FRS 102)', in preparing this annual report and financial statements.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity's governing document is its Articles of Association, dated 4 July 2013.

The Charity is an English registered company, limited by guarantee with no share capital. It is also a registered UK charity. The liability of the Charity's members is limited, such that each member of the Charity promises, if the Charity is dissolved while he or she is a member or within twelve months after he or she ceases to be a member, to contribute such sum (not exceeding £1) as may be demanded of him or her towards the payment of the debts and liabilities of the Charity incurred before he or she ceases to be a member, and the costs, charges and expenses of winding-up the Society, and towards any adjustments of the rights of the contributories among themselves.

In pursuance of its charitable objectives, the Charity is managed by a duly elected Board of Trustees (the 'Board') which governs the Charity's activities in accordance with its Articles of Association. The Trustees confirm that they have complied with the duty in Section 4 of the Charities' Act 2006, to have due regard to the Charity Commission's general guidance on public benefit.

The Trustees are responsible for managing the risks faced by the Charity and treat risk management as a priority. Accordingly, a review of the Charity's main areas of risk has been undertaken, including health and safety matters, and appropriate policies and practices have been implemented so as to minimise any adverse impact on the Charity arising from such risks. A risk review is undertaken periodically.

TRUSTEES, MANAGEMENT AND THEIR INTERESTS

Trustees

The Trustees at the date of this report or who served during the year ended 31 March 2022, together with their respective responsibilities, were:

Maj-Gen R J A Stanford CB MBE (Chairman) Sir Sherard L Cowper-Coles KCMG LVO (appointed 18 May 2022) (appointed 9 December 2021) Mr S F Dickson Brig. J McKeown CBE MA MPhil (Vice-Chairman) Dr E Kendall BA MA Hons DPhil Sheikh M H Al Rawahy Ms K J Kinninmont Mr M C Bishop FCA (Honorary Treasurer) Mr S Laing MA MPhil (resigned 18 May 2022) Mr O E S Blake Miss D H Martin Mr J N G Bowden CMG OBE MVO Ms E P M Simpson Mr C M Breeze (appointed 9 December 2021)

Managing Committee

A Managing Committee of Trustees comprising; Maj-Gen R J A Stanford (as Chairman), Brig. J McKeown (as Vice-Chairman), Mr M C Bishop (Honorary Treasurer) and Mr J R G Traill (Secretary) is responsible for overseeing the day-to-day management of the Society.

Day-to-day management of the Charity

The day-to-day management of the Society is carried out by the Society's General Manager (replaced after the year end by the appointment of the Director of the Society), who reports to the Chairman or in his/her absence the Vice-Chairman, assisted by the Programme Manager, the Business Development Manager and Interns at certain times of the year. Following regular performance reviews, the Chairman and the Vice-Chairman determine the annual remuneration of key management personnel.

The Anglo-Omani Society Report of the Trustees For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

TRUSTEES, MANAGEMENT AND THEIR INTERESTS continued

Organisational structure

The Trustees, all of whom are non-executive, meet as a Board on a regular basis to review the strategy and performance of the Charity, to consider grant applications, and to set operating plans and budgets. The Chairman, and in his absence the ViceChairman, in consultation with the Secretary and the management team, is responsible for setting the agenda for such meetings, for managing the meetings, and for ensuring that all matters arising are properly considered and addressed. The Board may elect a sub-committee of Trustees, or may co-opt individuals with relevant experience, to deal with specific issues or topics. Details of the Charity's professional advisors are given on page 1.

Retirement, recruitment and appointment of Trustees

At each annual general meeting of the Charity, one third of the Trustees must retire from office. The Trustees to retire by rotation shall be those who have been longest in office since their last appointment and are eligible for re-election at the same annual general meeting.

Due to the nature of the Charity, Trustees are selected on the basis of their experience and knowledge of Oman, their particular field of expertise and their ability to contribute to the wellbeing of the Charity. To enhance the potential pool of Trustees, the Charity looks regularly for new Trustees to enable it to develop and innovate within the existing programmes of work, and also to develop new programmes of work to enhance its impact in the communities it serves. The Board has representation from; diplomatic, governmental, educational, military and commercial links to Oman as well as expertise in UK legal, charity and accounting requirements.

A Trustee may be appointed by the members in general meeting, or by the Board. The number of Trustees shall be not less than three, but is not subject to any maximum number. A Trustee may not appoint an alternate trustee or anyone to act on his or her behalf at meetings of Trustees.

Induction and training of new Trustees

New Trustees are selected from the current membership of the Charity and therefore, usually already have some experience and knowledge of Oman. Prior to the appointment of a new Trustee, the Chairman (or in his absence the Vice-Chairman) and the Secretary will brief the individual on; the Objects of the Charity, their legal obligations as a Trustee under both UK charity and company law, the contents of the Charity's Articles of Association, the respective roles and expertise of the other Trustees, the Charity's decision making process, and its operating and financial plans.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's Objects, as set out in its Articles of Association, are to:

In furtherance of these aims, the Charity arranges a regular schedule of lectures and seminars in London (subject to Covid-19 restrictions) and webinars and podcasts covering a wide variety of subjects related to Oman which are reported on in the Society's Annual Review. Subject to prevailing Covid-19 travel restrictions, the Charity also provides regular programmes of placing British students from a wide range of backgrounds as Educational Assistants in schools in Oman, and of placing British students of Arabic in Omani institutes to improve their spoken Arabic. A further programme for Arabic language student placements is planned for 2022-23. In addition, the Charity also provides opportunities for Omani nationals to attend educational and other training courses in the UK. The Charity also runs on-line Arabic language courses in London for beginners and for more advanced language students. All physical activities remain subject to any continuing Covid-19 restrictions, which were of course relaxed in both the UK and Oman at times during 2021-22.

The Anglo-Omani Society Report of the Trustees For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

OBJECTIVES AND ACTIVITIES continued

Objectives and aims continued

The Board actively encourages applications for grants and donations to fund activities, events, research, training and publications which promote the Charity's Objects. Over recent periods grants and donations have been made to help fund; online educational training, expeditions to Oman for young British people from diverse backgrounds, cultural exchanges, archaeological projects, conservation projects, natural history projects and support for the publication of books, Omani music and audio recordings. The Charity also holds an annual lunch and regular seminars, podcasts and webinars on topical issues.

Through pursuing the above activities the Board considers that it has established suitable strategies for meeting the Charity's Objects.

Public benefit

The Trustees have paid due regard to the Charity Commission's guidance on public benefit in considering applications for scholarships and grants and in the Charity’s lecture programme. The Trustees have sought to widen access to the Charity’s activities through cooperation with organisations working with disadvantaged young people on educational exchanges and expeditions and through bringing the Charity’s activities to the attention of a wider range of British and Omani people in Britain via its web-site. In this way and through grants for publications, circulation of the Society's Annual Review and support for the archive at St Antony’s College, Oxford, the Charity has worked to bring Oman’s history and culture to the attention of a broader British audience and to increase the links between the peoples of the two nations with a growing focus on the younger generation.

ACHIEVEMENTS AND PERFORMANCE

Property rental

During the year ended 31 March 2022, the Charity's freehold property in Sackville Street, London, (the 'Property') generated rental income and with the security of this income together with access to the managed investment fund, the Trustees encouraged continued applications during the year for grants in accordance with the Charity's Objects.

New Generation Group

The New Generation Group (the 'NGG') is focused on forging closer links between young Omani and young British people. The NGG has attracted a number of new members and has (subject to Covid-19 restrictions) a programme of regular meetings and presentations in both London and Muscat, addressed by both prominent young Omani and British speakers. The NGG is now well established as a conduit for introducing young British people to Oman and young Omanis to the UK and these exchanges will continue to form a regular part of the NGG's activities. The NGG has in previous years held periodic conferences on topical issues in both the UK and Oman with young professions from both countries (referred to as 'high-flyers') attending. The last such conference, entitled 'Energy Transition in Emerging Markets', was held over three days in Muscat in March 2022 and was very well received.

Charitable activities

For the year under review expenditure on grants and related activities fell compared to the previous year, due mainly to the continued impact of Covid-19, which restricted many applicants from applying for grant support for their projects. The grants that were approved in the year can be summarised as follows:

Sponsorship of UK students to attend academic courses in Oman
Sponsorship of Omanis studying in the UK
Educational expeditions to Oman
Conservation, archaeology, natural history, photography, literary and research projects
Cultural, development, training and heritage exchanges with Omanis
Grants to other Omani focused bodies and associations
The Society's regular NGG activities (other than 'high-flyers' conferences)
Costs of holding lectures, including lecturers' travel costs
2022
£
-
5,000
2,981
22,500
20,724
54,730
1,821
6,171
113,927
2021
£
1,111
0
18,110
38,204
37,227
23,663
659
2,121
121,095

The principal funding for the Charity's grants and awards is the surplus income arising from the renting of those parts of the Property not occupied by the Charity, supplemented when required by access to the Charity's managed investment fund. The Charity is therefore not reliant on subscriptions from members or interest income to fund its activities, although subscriptions remain a material element of the Charity's income.

The Anglo-Omani Society Report of the Trustees For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

ACHIEVEMENTS AND PERFORMANCE continued

Revaluation of investment property

In accordance with the Charity's accounting policy in respect of fixed asset investments, the Property was last revalued in the 2020 accounts, as at 31 March 2020. It is the Trustees' intention to assess the market value of the Property periodically and at least every three years via an independent valuation carried out by a professional valuer. However, following the agreement of new leases for all the rented areas of the Premises in the year yielding reduced annual rental income compared to prior years, the Trustees consider it prudent to reduce the valuation of the premises by £2,000,000 as at 31 March 2022.

Movement in net assets

The Charity's net assets decreased over the year by an amount of £2,048,858 and stood at £19,146,143 as at 31 March 2022 (2021 - £21,195,001). This decrease follows mainly from the adjustment to the carrying value of the Property in the year.

FINANCIAL REVIEW INCLUDING RESERVES POLICY

As at 31 March 2022 the Charity's reserve funds amounted to £19,146,143 (2021 - £21,195,001), comprising a restricted endowment fund and property revaluation reserve amounting to £16,500,000 (2021 - £18,500,000) and unrestricted funds of £2,646,143 (2021 - £2,695,001). The restricted endowment fund represents the funds advanced by a donor which were applied to purchase the Property and pay for its subsequent structural modification and fit-out. The increase in the value of the Property following its revaluations in 2014 and 2017 and the subsequent decreases in value in 2020 and 2022 are also reflected in the endowment fund balance. The Trustees have limited powers over the use of the endowment fund and are required to retain it indefinitely. They are not permitted to convert it in to expendable income. The Trustees do though have unlimited powers to apply the unrestricted funds as they consider appropriate and may convert part or all of it in to expendable income.

As at 31 March 2022, the Trustees held £84,075 (2021 - £137,000) of the unrestricted funds as a 'property fund', to form a contribution towards future refurbishment costs for the Property. The Board monitors regularly the sufficiency of this fund. The balance of the unrestricted fund (the 'general fund') is available to meet the costs of the Charity's activities. The Board will continue to review at regular intervals the level of funds that may need to be held to meet the costs of any future rental voids and periodic refurbishment requirements for the Property.

An operating budget for the Charity is agreed by the Board each year, which projects the level of reserves to be retained and the funds available to meet the Charity's day-to-day activities, including an allowance for making grants and awards in furtherance of the Charity's Objects.

INVESTMENT POLICY

The Trustees have the power to invest surplus funds as they see fit. The Board's policy is to have the majority of its surplus funds invested by an experienced third party charities fund manager on a discretionary basis, with the balance of its funds held in low risk interest bearing term deposits with a secure UK clearing bank. Charles Stanley & Co. Limited are the Charity's fund manager and twice a year report in person to the Board, enabling Trustees to assess the performance of the Society's investments. As at 31 March 2022, the value of the invested fund stood at £2,547,520 (2021 - £2,538,929), a net increase in value of £8,591 over the period after reflecting the withdrawal of £100,000 from the investment fund in the year to help fund the Charity's activities following the reduced rental income for the year.

PLANS FOR FUTURE PERIODS

The Society intends to continue its current level of activities over 2022-23 and to increase the sums allocated to awards and grants, as its financial resources permit. Membership levels have gradually increased over recent years, including the number of corporate members, helped by the introduction of the Charity's new web-site in late 2019. The Society continued its close working relationship with the Omani-British Business Council (OBBC), formerly the British arm of the Omani British Friendship Association, and other Oman-focused UK bodies.

The Trustees have paid particular attention to the likely effects of the recent Covid-19 pandemic and remain confident that the Society has sufficient funding and resources in place to continue with its charitable activities for the foreseeable future.

REQUIREMENT FOR AUDIT

As a result of receiving a donation of some £11 million in 2009, the Charity was required to prepare its accounts on an accruals basis and is of a size under both charity and company law where its annual accounts are required to be audited. Accordingly, the Board appointed its accountants, Azets Audit Services Limited, to act as its auditors.

The Anglo-Omani Society Report of the Trustees For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for the year. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITORS

The Trustees have discussed with the Auditors, as part of the clearance and review process, the significant estimates and judgements made by the Trustees in the preparation of the financial statements, and whether the accounting policies are appropriate to the circumstances of the Charity, consistently applied and adequately disclosed. The discussion with the Auditors also covered points arising from the work the Auditors performed during their audit; and explanations were given where the Auditors considered them necessary in order to provide them with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In so far as the Trustees are aware:

AUDITORS

The Trustees will place a resolution before the annual general meeting to confirm the re-appointment of Messrs Azets Audit Services Limited as auditors to the Charity.

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

ON BEHALF OF THE BOARD

Maj-Gen R J A Stanford CB MBE (Chairman)

Date: 16 June 2022

The Anglo-Omani Society Independent Auditor's Report For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

Independent Auditor's Report to the Members of The Anglo-Omani Society

Opinion

We have audited the financial statements of The Anglo Omani Society (a 'charitable company' referred to herein as the 'Charity') for the year ended 31 March 2022, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information 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 otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

The other information comprises the information included in the annual Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

The Anglo-Omani Society Independent Auditor's Report For the Year Ended 31 March 2022

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REGISTERED COMPANY NUMBER: 6708685

Independent Auditor's Report to the Members of The Anglo-Omani Society [ continued]

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 6), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Charity, we identified that the principal risk of non-compliance with laws and regulations related to breaches of health and safety employee laws and regulations. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on those that had a direct effect on material figures and disclosures in the financial statements, the main regulations considered in this context included the UK Companies Act 2006 Charities Act 2011, as well as the Charity SORP.

We evaluated the incentives and opportunities for fraud in the financial statements, including, but not limited to, the risk of override of controls, and designed procedures in response to these risks as follows:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The Anglo-Omani Society Independent Auditor's Report

9

For the Year Ended 31 March 2022

REGISTERED COMPANY NUMBER: 6708685

Independent Auditor's Report to the Members of The Anglo-Omani Society [ continued]

Auditor's responsibilities for the audit of the financial statements continued

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Vickery BA FCA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Limited, Statutory Auditor

Ashcombe Court Woolsack Way Godalming Surrey, GU7 1LQ

Date: 16 June 2022

The Anglo-Omani Society

(Registered Company Number: 6708685)

10

Statement of Financial Activities (incorporating the Income and Expenditure Account) For the Year Ended 31 March 2022

Restricted
Unrestricted endowment 2022 2021
Notes funds funds Total Total
£ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 2 14,689 - 14,689 14,625
Charitable activities 3 5,683 - 5,683 2,585
Income from investments 4 425,173 - 425,173 438,804
Other income 5 42,755 - 42,755 66,767
Total 488,300 - 488,300 522,781
EXPENDITURE ON:
Raising funds 6 (34,343) - (34,343) (28,456)
Charitable activities 7 (542,420) - (542,420) (424,266)
Governance costs 8 (11,922) - (11,922) (9,835)
Total (588,685) - (588,685) (462,557)
Loss on fixed asset investments 9 - (1,450,514) (1,450,514) -
Gains/(losses) on current asset investments 12 51,527 - 51,527 461,448
NET (EXPENDITURE)/INCOME (48,858) (1,450,514) (1,499,372) 521,672
Transfers between funds - - - -
Other recognised gains/(losses)
Loss on revaluation of fixed assets 10 - (549,486) (549,486) -
NET MOVEMENT IN FUNDS (48,858) (2,000,000) (2,048,858) 521,672
RECONCILIATION OF FUNDS
Total funds brought forward 14 2,695,001 18,500,000 21,195,001 20,673,329
TOTAL FUNDS CARRIED FORWARD 14 2,646,143 16,500,000 19,146,143 21,195,001

The Charity has no recognised gains/losses other than those included in the results above and therefore no separate statement of total recognised gains/losses has been presented.

The accompanying notes form an integral part of these financial statements.

(Registered Company Number: 6708685)

11

The Anglo-Omani Society Balance Sheet

For the Year Ended 31 March 2022

Restricted
Unrestricted endowment 2022 2021
Notes funds funds Total Total
£ £ £ £
FIXED ASSETS
Investments 9 - 11,468,391 11,468,391 12,918,905
Tangible assets 10 1,718 5,031,609 5,033,327 5,587,630
TOTAL FIXED ASSETS 1,718 16,500,000 16,501,718 18,506,535
CURRENT ASSETS
Debtors 11 232,551 - 232,551 1,081
Investments ~ managed investment fund 12 2,547,520 - 2,547,520 2,538,929
Rental deposits held for third parties 44,283 - 44,283 44,275
Cash at bank and in hand 27,630 - 27,630 227,289
2,851,984 - 2,851,984 2,811,574
CREDITORS
Amounts falling due within one year 13 (207,559) - (207,559) (123,108)
NET CURRENT ASSETS 2,644,425 - 2,644,425 2,688,466
TOTAL ASSETS LESS CURRENT LIABILITIES 2,646,143 16,500,000 19,146,143 21,195,001
CREDITORS
Amounts falling due after one year - - - -
NET ASSETS 2,646,143 16,500,000 19,146,143 21,195,001
THE FUNDS OF THE CHARITY
Unrestricted funds
General fund 14 2,562,068 - 2,562,068 2,558,001
Propertyfund 14 84,075 - 84,075 137,000
2,646,143 - 2,646,143 2,695,001
Restricted funds
Endowment fund 14 - 9,872,124 9,872,124 9,872,124
Revaluation reserve 14 - 6,627,876 6,627,876 8,627,876
- 16,500,000 16,500,000 18,500,000
TOTAL CHARITY FUNDS 14 2,646,143 16,500,000 19,146,143 21,195,001

The accompanying notes form an integral part of these financial statements.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and the provisions of Statement of Recommended Practice 'Accounting and Reporting by Charities' applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (effective 1 January 2015).

The financial statements on pages 10 to 20 were approved by the Board on 16 June 2022 and signed on its behalf by:

Maj-Gen R J A Stanford CB MBE (Chairman)

Date: 16 June 2022

(Registered Company Number: 6708685)

12

The Anglo-Omani Society Cash Flow Statement

For the Year Ended 31 March 2022

Restricted
Unrestricted endowment 2022 2021
funds funds Total Total
£ £ £ £
INCOME
Net movement in funds during the year (48,858) (2,000,000) (2,048,858) 521,672
Revaluation decrease of fixed asset investments - 2,000,000 2,000,000 -
Less investment income (476,700) - (476,700) (900,252)
Add back depreciation charged in the year 4,817 - 4,817 6,793
(Increase)/decrease in investment fund value in the year (108,591) - (108,591) (495,455)
(Increase)/decrease in debtors (231,470) - (231,470) 5,805
Increase/(decrease) in creditors due within one year 84,451 - 84,451 (143,284)
NET CASH PROVIDED BY OPERATING ACTIVITIES (776,351) - (776,351) (1,004,721)
CASH FLOWS FROM INVESTING ACTIVITIES
Add back investment income 476,700 - 476,700 900,252
Cash withdrawn from managed investment fund 100,000 - 100,000
Additions to fixed assets - - - (2,605)
NET CASH PROVIDED BY INVESTING ACTIVITIES 576,700 - 576,700 897,647
Reconciliation of net cash flow
Decrease in cash in the year (199,651) - (199,651) (107,074)
Cash balances at start of the year 271,564 - 271,564 378,638
CASH BALANCES AT END OF THE YEAR 71,913 - 71,913 271,564

The accompanying notes form an integral part of these financial statements.

The Anglo-Omani Society (Registered Company Number: 6708685) Notes to the Financial Statements For the Year Ended 31 March 2022

13

1 ACCOUNTING POLICIES

The Anglo-Omani Society is a company limited by guarantee, incorporated in England and Wales. The registered office is set out on page 1. The nature of the Charity's operations is set out in the Report of the Trustees.

Basis of preparation

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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 (FRS102) (effective 1 January 2015)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The Trustees having paid particular attention to the likely effects of the recent Covid-19 pandemic on the future viability and going concern of the Society. However, although the value of the Charity’s fixed asset investments and income from investments may be adversely affected in 2022 due to any continuing effects of the Covid-19 pandemic, the Trustees remain confident that the Society has sufficient funding and resources in place to remain as a going concern for the foreseeable future and continue with its charitable activities.

Incoming resources

All incoming resources are included gross of any related expenditure in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Income from donations is included in incoming resources when it is receivable, except when donors specify that donations must be used in future accounting periods, in which case the income is deferred until those periods. When donors specify that donations are to be applied for restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources when receivable, but as restricted funds.

Membership fees, investment income and other income is accounted for on an accruals basis. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy, the investment income is reported net of these costs. It is included when the amount can be measured reliably.

Resources expended

Expenditure, including the award or grants, is accounted for on an accruals basis and has been classified under headings that aggregate all costs to the category. Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, these are accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance, then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.

Cost of generating funds

Costs of generating funds represent the costs relating to fund-raising events organised by the Charity.

Charitable activities

Charitable expenditure includes all expenditure incurred in the pursuance of the Charity's Objects.

Governance costs

These comprise the costs of compliance with constitutional and statutory requirements.

Fixed asset investments

Fixed asset investments represent assets held for the long-term with the aim of providing the Charity with a continuing benefit in the form of income and capital appreciation. Fixed asset investments are held in the balance sheet at their fair value, or at the Trustees' best estimate of fair value. All changes in the value of fixed asset investments in the year, whether or not realised, are reported as 'gains or losses on investment assets' in the Statement of Financial Activities.

Fixed asset investments are revalued annually, with the exception of investment property, which is revalued at least every three years. Investment property is not depreciated and represents freehold property, which is held by the Charity for its income and investment potential and which is predominantly let to third parties.

The Anglo-Omani Society (Registered Company Number: 6708685) Notes to the Financial Statements For the Year Ended 31 March 2022

14

1 ACCOUNTING POLICIES continued

Fixed assets ~ other than investments

Fixed assets other than investments comprise; freehold property, computer equipment and fixtures and fittings relating to that part of the investment property occupied by the Charity and which were acquired after the purchase and full fit-out of the investment property. These assets, other than freehold property, are being fully depreciated on a straight line basis over a period of three years, commencing in the month of purchase.

Managed investment fund

Funds held by third party professional fund managers on a discretionary basis are shown in the balance sheet at market value at the year end, based on valuations provided by the fund manager, less any accrued fees. The increase/decrease in the value of the funds under management is reflected as a combination of net investment income/losses and gains/losses on current asset investments in the year in the Statement of Financial Activities.

Fund accounting

Unrestricted funds can be used in accordance with the Charity's Objects at the discretion of the Trustees. Restricted funds can only be used for particular restricted purposes within the Objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. There are three separate funds within the Charity; the Statement of Financial Activities for these funds are contained in these financial statements. The funds held were as follows:

Property ~ established to meet future property refurbishment costs; and Endowment ~ being the donation to the Charity for the purchase of and modification to the investment property, adjusted to match any revaluation of the investment property.

Taxation

The Charity is exempt from paying Corporation Tax on its charitable activities. The Charity's activities are though subject to VAT and the Charity is registered for VAT.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at the transaction price. Any losses arising from impairment are recognised in expenditure.

2
3
4
DONATIONS AND LEGACIES
2022
2021
£
£
Unrestricted funds
Membership fees ~ corporate
2,850
3,200
Membership fees ~ private
11,839
11,413
Donations
-
12
14,689
14,625
CHARITABLE ACTIVITIES
Lunches and Society events
4,925
-
Advertising income from the Society's Annual Review publication
-
2,560
Sale of books,DVDs and Societyties
758
25
5,683
2,585
INCOME FROM INVESTMENTS
Rental income from letting of investment property
368,001
404,851
Net income from managed investment fund (see note 12)
57,064
34,007
Interest received
13
147
Exchangegains/(losses)in theyear on currencyfunds held
95
(201)
425,173
438,804

The Anglo-Omani Society Notes to the Financial Statements

(Registered Company Number: 6708685)

15

For the Year Ended 31 March 2022

5
6
OTHER INCOME
2022
2021
£
£
Lecture attendance fees (2021 - fees refunded)
5
(75)
Fees charged for providing Arabic language courses
22,750
29,842
Dilapidations receipt from letting of investment property
-
37,000
Sponsorshipof NGG 'high-flyers' conferences
20,000
-
42,755
66,767
EXPENDITURE ON RAISING FUNDS
Costs of holding the Society's Annual Lunch and other Society events
8,800
-
Costs of providing Arabic language courses
25,543
28,456
Purchase of books, DVDs and Societyties for resale
-
-
34,343
28,456
(a) (b) (c)
Property Total Total
Direct cost Support costs costs 2022 2021
£
£
£ £ £
Unrestricted funds
Promotion of Oman 7,992 82,580 263,332 353,904 233,390
Grants and awards 105,935 82,581 - 188,516 190,876
113,927 165,161 263,332 542,420 424,266
An analysis of direct costs, support costs and property management costs is given below:
2022 2021
£ £
(a) Direct costscomprise:
Promotion of Oman ~
The Society's regular NGG activities (other than 'high-flyers' conferences) 1,821 659
Costs of holdinglectures(all on-line in 2021),including lecturers' travel costs 6,171 2,121
7,992 2,780
Grants and awards ~
Sponsorship of UK students to attend academic courses in Oman - 1,111
Sponsorship of Omanis studying in the UK 5,000 -
Educational expeditions to Oman 2,981 18,110
Conservation, archaeology, natural history, photography, literary and research grants 22,500 38,204
Cultural, development, training and heritage exchanges with Omanis 20,724 37,227
Grants to other Omani focused bodies and associations 54,730 23,663
105,935 118,315
Total direct costs 113,927 121,095
Analysis of grants and awards made in the year ~ Grants and Grants and
awards to awards to 2022
institutions individuals Total
£ £ £
Sponsorship of UK students to attend academic courses in Oman - - -
Sponsorship of Omanis studying in the UK 4,000 1,000 5,000
Educational expeditions to Oman - 2,981 2,981
Conservation, archaeology, natural history, photography & literary grants 21,000 1,500 22,500
Cultural, development, training and heritage exchanges with Omanis 20,000 724 20,724
Grants to other Omani focused bodies and associations 54,730 - 54,730
99,730 6,205 105,935

The Anglo-Omani Society Notes to the Financial Statements

(Registered Company Number: 6708685)

16

For the Year Ended 31 March 2022

7 EXPENDITURE ON CHARITABLE ACTIVITIES continued

Institutional recipients of Grants and awards in the year ~ Oman based British
training and Omani Other minor
Organisation Universities institutions Total
£ £ £ £
Sponsorship of Omanis studying in the UK - 4,000 - 4,000
Conservation, archaeology, natural history, photography, 6,000 15,000 - 21,000
and literary grants
Cultural, development, training and heritage exchanges - - 20,000 20,000
with Omanis
Grants to other Omani focused bodies and associations 50,000 - 4,730 54,730
56,000 19,000 24,730 99,730
Total Total
2022 2021
£ £
(b) Support costscomprise:
Managers, staff, agency staff and intern costs (see staff costs analysis below) 131,114 119,087
Recruitment and training costs 2,518 6,107
Annual Review, newsletters, printing, postage and stationery 9,688 18,228
Staff travel & accommodation 479 99
NGG 'high-flyers' conference costs 19,327 -
Other support costs 2,035 1,602
Total support costs 165,161 145,123
(c) Property costscomprise:
Security 736 716
Share of service charges and property insurance 164,849 67,913
Managing agent's fees 9,375 7,500
Business rates (2022 costs reflect a reversal of credits from the Council received in 2021) 30,392 5,069
Web-site and IT support & development 5,340 7,554
Irrecoverable VAT on the Society's activities written-off in the year 7,267 12,348
Property marketing and costs related to new leases 31,776 32,757
Depreciation of fixed assets ~ other than fixed asset investments 4,817 6,793
Otherpropertyrelated costs 8,780 17,398
Total property management costs 263,332 158,048

The Charity was administered day-to-day by two full-time employees (2021 - two), neither of whom received emoluments of more than £60,000 per annum, together with Interns paid the London Living Wage at different periods during the year. The highest paid member of staff received emoluments and benefits for the year totalling £48,100 (2021 - £51,443).

Total staff costs (included within support costs above)comprise: 2022 2021
£ £
Salaries 112,619 103,967
Social Security costs 10,460 10,352
Employer's contribution to defined contribution pension schemes for employees 4,314 3,877
Payments made in support of Interns 3,721 891
131,114 119,086

The Anglo-Omani Society Notes to the Financial Statements

(Registered Company Number: 6708685)

17

For the Year Ended 31 March 2022

8 GOVERNANCE COSTS
2022
2021
£
£
Trustees' reimbursed travel & accommodation expenses
1,343
29
Professional fees
2,700
2,700
Insurance premiums
3,779
3,493
Auditors' remuneration
4,100
3,600
Othergovernance costs
-
13
11,922
9,835

No Trustee received any remuneration or other benefits during the year (2021 - £Nil). Certain Trustees received reimbursement for their 'out of pocket' expenses relating directly to the Charity. The aggregate amount of reimbursed expenses was £1,645 (2021 - £258), covering four Trustees (2021 - two Trustees), in respect of the reimbursement of expenditure on; lecturer entertaining, travel, subsistence, postage, gifts and the purchase of small goods for the Property.

9 FIXED ASSETS ~ INVESTMENTS

FIXED ASSETS ~ INVESTMENTS
Freehold
investment
property
Investment property £
Carrying value at 1 April 2021 12,918,905
Loss on revaluation at 31 March 2022 attributable to investment (1,450,514)
Carrying value as at 31 March 2022 11,468,391

Fixed asset investments represent the Charity's freehold property in Central London (the 'Property') which was purchased in 2009 and is recorded as an investment property. The Trustees consider the Property as being primarily to provide an income stream and investment return for the Charity and accordingly, regard the Property predominantly as an investment asset. A proportion of the Property is occupied by the Charity and based on that proportion, part of the investment value of the Property was reclassified in a prior period as freehold property within Fixed Assets ~ Other than Investments (see note 10).

The Property was last revalued as at 31 March 2020 by Mr R Moss MSc MRICS, a RICS Registered Valuer of Cluttons LLP, at £18,500,000 on the basis of Fair Value, in accordance with the RICS Valuation - Global Standards issued in January 2020 for valuations for inclusion in financial statements. It is the Trustees' intention to assess the Fair Value of the Property periodically, and at least every three years. However, following the agreement of new leases for all the rented areas of the Premises in the year yielding reduced annual rental income compared to prior years, the Trustees consider it prudent to reduce the valuation of the premises by £2,000,000 as at 31 March 2022 in advance of the next formal independent valuation.

10 FIXED ASSETS ~ OTHER THAN INVESTMENTS
Freehold
Computer
Fixtures &
property
equipment
fittings
Total
Cost
£
£
£
£
As at 1 April 2021
5,581,095
10,484
31,971
5,623,550
Loss on revaluation attributable to freehold
(549,486)
-
-
(549,486)
As at 31 March 2022
5,031,609
10,484
31,971
5,074,064
Depreciation
As at 1 April 2021
-
(7,279)
(28,641)
(35,920)
Depreciation charged in theyear
-
(1,833)
(2,984)
(4,817)
As at 31 March 2022
-
(9,112)
(31,625)
(40,737)
Net book value
As at 31 March 2022
5,031,609
1,372
346
5,033,327
As at 31 March 2021
5,581,095
3,205
3,330
5,587,630

The Anglo-Omani Society Notes to the Financial Statements

(Registered Company Number: 6708685)

18

For the Year Ended 31 March 2022

10 FIXED ASSETS ~ OTHER THAN INVESTMENTS continued

No depreciation is provided in respect of the freehold property because the Trustees consider that the high residual value of the Property, together with the fact that the Property is maintained to a high standard, means that it is not appropriate to charge depreciation. Although non-depreciation of this asset is not in accordance with the Companies Act 2006, the Trustees believe that this departure is necessary in order to provide a true and fair view.

DEBTORS 2022 2021
£ £
Prepayments and accrued income 216,570 1,081
VAT recoverable 9,752 -
Other debtors 6,229 -
232,551 1,081

11 DEBTORS

INVESTMENTS ~ MANAGED INVESTMENT FUND 2022 2021
£ £
Market value of funds at 1 April 2,538,929 2,043,474
Net income received in the year (see note 4) 57,064 34,007
Increase in the fund value in the year 51,527 461,448
Cash withdrawn in theyear (100,000) -
Market value of fund as at 31 March 2,547,520 2,538,929

12 INVESTMENTS ~ MANAGED INVESTMENT FUND

This fund is invested on a discretionary basis and the Trustees receive regular financial reports and face to face presentations from the fund managers.

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
2021
£
£
Accrued expenses
80,723
9,855
Grants awarded yet to be paid
68,548
51,894
Members' subscriptions paid in advance
4,510
5,950
Rent deposits plus accrued interest due to tenants of the Property
44,283
44,275
NGG 'high-flyers' conference costs
9,170
-
VAT payable
-
10,834
Other creditors
325
300
207,559
123,108

The Anglo-Omani Society (Registered Company Number: 6708685) Notes to the Financial Statements

19

For the Year Ended 31 March 2022

14 THE FUNDS OF THE CHARITY

THE FUNDS OF THE CHARITY
Net
At 1 April movement At 31 March
2021 in funds 2022
Unrestricted funds £ £ £
General fund 2,558,001 4,067 2,562,068
Propertyfund 137,000 (52,925) 84,075
2,695,001 (48,858) 2,646,143
Restricted funds
Endowment fund 9,872,124 - 9,872,124
Revaluation reserve 8,627,876 (2,000,000) 6,627,876
18,500,000 (2,000,000) 16,500,000
Total funds held by the Charity 21,195,001 (2,048,858) 19,146,143
The net movement in fundswas as follows:
2022 2021
Incoming Resources Gains on Net movement Net movement
resources expended investments in funds in funds
Unrestricted funds £ £ £ £ £
General fund 488,300 (535,760) 51,527 4,067 484,672
Propertyfund - (52,925) - (52,925) 37,000
488,300 (588,685) 51,527 (48,858) 521,672
Restricted funds
Endowment fund - - - - -
Revaluation reserve - (2,000,000) - (2,000,000) -
Total inflow/(outflow) 488,300 (2,588,685) 51,527 (2,048,858) 521,672

The restricted endowment fund relates to funds advanced by a donor and applied to the purchase of the freehold investment property and its subsequent structural modification and fit-out. The Property was revalued as at 31 March 2020 and a revaluation deficit of £1,000,000 was debited to the revaluation reserve at that time, which the Trustees regard as restricted funds. Following the agreement of new leases for all the rented areas of the Premises in the year yielding reduced annual rental income compared to prior years, the Trustees consider it prudent to reduce the valuation of the premises by £2,000,000 as at 31 March 2022. The Trustees have limited powers over the use of the endowment fund and are required to retain it indefinitely. They are not permitted to convert any part into expendable income.

The Trustees do though have unlimited powers to apply the unrestricted funds as they consider appropriate. At the year end the Trustees held £84,075 (2021 - £137,000) of the unrestricted fund as a property fund to cover future costs relating to the Property. It is the Trustees' intention to increase this fund periodically in order to accumulate sufficient funds to cover future refurbishments of the Property in due course.

The assets and liabilities of each fund are allocated as follows:

General Property Restricted 2022 2021
fund fund funds Total funds Total funds
£ £ £ £ £
Fixed asset investments - - 11,468,391 11,468,391 12,918,905
Fixed asset other than investments 1,718 - 5,031,609 5,033,327 5,587,630
Debtors 232,551 - - 232,551 1,081
Investments ~ managed investment fund 2,547,520 - - 2,547,520 2,538,929
Cash at bank (12,162) 84,075 - 71,913 271,564
Creditors_~ amounts due within one year_ (207,559) - - (207,559) (123,108)
Creditors_~ amounts due after oneyear_ - - - - -
Net assets 2,562,068 84,075 16,500,000 19,146,143 21,195,001

The Anglo-Omani Society Notes to the Financial Statements

(Registered Company Number: 6708685)

20

For the Year Ended 31 March 2022

15 RELATED PARTY TRANSACTIONS

The Trustees confirm that there are no related party transactions requiring disclosure in the financial statements.

16 NON ADJUSTING EVENTS AFTER THE FINANCIAL PERIOD

The Trustees have paid particular attention to the likely effects of the current Covid-19 pandemic and remain confident that the Society has sufficient funding and resources in place to continue as a going concern for the foreseeable future.

17 ULTIMATE CONTROLLING PARTY

The Charity is controlled by its Trustees. Copies of the financial statements are available from:

Company Secretary The Anglo-Omani Society 34 Sackville Street London W1S 3ED