THE MOHAMED S FARSI FOUNDATION
Company No. 06775730 Charity No. 1128012
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
The Mohamed S. Farsi Foundation Contents
| Page | |
|---|---|
| Legal and Administration | 1 |
| Trustees' Report | 2 - 4 |
| Independent Examiner Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the Financial Statements | 9 - 11 |
The Mohamed S. Farsi Foundation Legal and Administration
Registered Charity No. 1128012
Registered Company No. 6775730
Registered Address: 9 Appold Street London EC2A 2AP
Trustees: Mr. Hani Farsi Mr. Vincent Chevance (resigned September 2021) Mr. Joshua Hanfling Professor Abdul Aziz Said (deceased January 2021) Mr. Hassan Dajani Mrs. Louise Adams
Independent Examiners: Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
Bankers: Coutts & Co. 440 Strand London WC2R 0QS
The governing documents of the Foundation are the Memorandum and Articles of Association, last amended on 5 February 2009. The charitable company was incorporated on 17 December 2008 The charity is limited by guarantee and therefore does not have a share capital. The liability of the members is limited to the sum of £1 per member.
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The Mohamed S. Farsi Foundation Trustee Report 2021
The Trustees of The Mohamed S. Farsi Foundation are pleased to present this report and independently examined financial statements for the year ending 31 December 2021.
The Trustees confirm the annual report and financial statements comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’.
Objectives and Activities
The Mohamed S. Farsi Foundation has four areas of focus. All of our efforts are for the benefit of the public and are exclusively charitable. We work closely with philanthropy advisors to find global grant-making opportunities where small amounts of money can have a large and sustainable impact. We especially prioritise social return on our investments, seek the guidance of advisors in meeting each of the below objectives, and support organizations that show a commitment to innovation and big ideas.
In particular we focus on:
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! Education;
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! Health or the saving of lives;
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! The arts, culture, heritage or science; and
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! International development.
The Year in Review
The aftermath of the global pandemic and, in particular, the macro-economic problems it has triggered continue to have a significant and detrimental impact on the Foundation. As a result, the trustees were unable to complete their stated objective for the year which was to focus on the strategic direction of the Foundation following the death of Dr. Mohamed Farsi. In addition, grants made during the year were considerably reduced due to disruption to the Foundation’s funding sources.
During the year, the trustees continued to review the overall performance and operation of the Foundation, with applications from those seeking funding being assessed for potential grants in subsequent years.
The trustees were saddened to learn of the death of Professor Abdul Aziz Said during the year and wished to pay tribute to his contribution to, and support of, both the Foundation and his fellow trustees.
The trustees also wished to thank Mr. Vincent Chevance who retired as a trustee during the year.
Grant Making Policy and Organisational Structure
The MSFF does not accept unsolicited requests for funding. All grant requests come through the trustees and are then discussed with the board at its quarterly meetings. If approved by the board, appropriate due diligence is completed prior to the issuing of the grant.
The Foundation has a strict policy of inclusiveness and only funds organisations that meet this standard in their operations, employment, and advocacy. The Foundation prefers
Page: 2
The Mohamed S. Farsi Foundation Trustee Report 2021
requests for programs, and tends not to fund events, overheads or endowments other than for Strategic Partners or legacy grantees.
The trustees refer to the guidance in the Charity Commission’s guidance on Public Benefit when reviewing the Foundation’s aims and objectives, and planning future activities. The trustees are responsible for following up on the grants and ensuring the money is being used as directed, as well as for the MSFF website and all external communications for the Foundation.
Future Plans
A primary focus of 2022 will be the continuing review of the Foundation’s future strategic priorities for the next decade. Legacy commitments will continue throughout this process.
Financial Review
In the year, £59,932 was received from the Foundation’s founder and trustee, and this was the only income in the year.
The Foundation spent £78,366 on charitable activities and awarded grants totaling £75,149 in the current financial year.
At the year end the charity had total reserves of £620 (2020: £19,054), all of which were unrestricted. The Foundation’s founder and trustee will continue to support the charity in a personal capacity for a period of at least 12 months from the date of approval of the financial statements.
Reserves Policy
The Foundation does not have reserves at this time. All grants and expenses in 2021 were funded on an as-needed basis. The need for, and potential advantages of, a reserve policy will be reviewed in future years as the Foundation continues to grow.
Risk Management
The Trustees regularly examine the major risks to which the Foundation is exposed and, when any particular risks are deemed significant, discuss them at Trustees’ meetings as well as appropriate steps necessary to mitigate them.
The Foundation’s funding sources have been disrupted as a result of the pandemic and activities continued to be curtailed in the current year.
There were no other significant risks identified during 2021.
Appointment of Trustees
The Foundation bylaws allow any person who is willing and legally permitted to act as a trustee as appointed by ordinary resolution of the members.
Statement of Trustees’ Responsibilities
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The Mohamed S. Farsi Foundation Trustee Report 2021
The trustees (of which Mr Hani Farsi is also a director of The Mohamed S. Farsi Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires trustees to prepare financial statements for each financial year. This gives a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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! select suitable accounting policies and then apply them consistently;
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! observe the methods and principles in the Charities SORP;
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! make judgements and estimates that are reasonable and prudent;
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! state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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! prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies.
Independent Examiners
Moore Kingston Smith LLP have indicated their willingness to continue in office and it is proposed that they be re-appointed independent examiners for the ensuing year.
This report was approved by the Trustees on 27/10/2022 and signed on their behalf by:
Hani Farsi Trustee
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Report of the Independent Examiner to the Trustees of The Mohamed S. Farsi Foundation
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021, which comprise the Statement of Financial Activities, Balance Sheet and related notes.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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1) accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2) the accounts do not accord with those records; or 3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
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4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
James Cross, FCA Date: 31/10/2022 for and on behalf of Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
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The Mohamed S. Farsi Foundation Statement of Financial Activities
for the year ended 31 December 2021
| Note Income from: Grants and donations 2 Total Expenditure on: Charitable Activities 3 Total Net income/(expenditure) Fund balances brought forward at 1 January 2021 Fund balances carried forward at 31 December 2021 9 |
Unrestricted Funds £ 59,932 59,932 78,366 78,366 (18,434) 19,054 620 |
Total 2021 £ 59,932 59,932 78,366 78,366 (18,434) 19,054 620 |
Total 2020 £ 135,000 |
|---|---|---|---|
| 135,000 | |||
| 137,742 | |||
| 137,742 | |||
| (2,242) | |||
| 21,296 | |||
| 19,054 |
The Statement of Financial Activities reflects the results of continuing activities for the year.
All recognised gains and losses are included in the Statement of Financial Activities.
The notes on pages 9 to 11 form part of these financial statements.
Page: 6
The Mohamed S. Farsi Foundation Balance Sheet as at 31 December 2021
| Note Current Assets Debtors 7 Cash at bank and in hand Creditors: Amounts falling due within one year 8 Net Current Assets Net Assets Funds Unrestricted funds: General funds 9 |
2021 £ 34,475 2,223 36,698 (36,078) |
2021 £ 620 620 620 620 |
2020 £ 34,475 2,795 37,270 (18,216) |
2020 £ 19,054 |
|---|---|---|---|---|
| 19,054 | ||||
| 19,054 | ||||
| 19,054 |
For the year ended 31 December 2021 the charity was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with Section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for complying with the requirements of the Act with respect
to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the trustees on 27/10/2022 and signed on their behalf by:
Hani Farsi Trustee
Company No. 06775730
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The Mohamed S. Farsi Foundation Statement of Cash Flows for the year ended 31 December 2021
| Cash flows from operating activities: Net cash (used in)/provided by operating activities Change in cash in the reporting period Cash at the beginning of the period Cash at the end of the reporting period Reconciliation of Net Movement of Funds to Net Cashflow from Operating Activities Net (expenditure) for the reporting period as per the statement of financial activities Adjustments for: Increase/(decrease) in creditors Net cash (used in)/provided by operating activities Analysis of cash and cash equivalents and net debts Cash in hand and at bank Opening balance Cash-flows Closing balance |
2021 £ (572) (572) 2,795 2,223 (18,434) 17,862 (572) 2,795 (572) 2,223 |
2020 £ (15,454) |
|---|---|---|
| (15,454) | ||
| 18,249 | ||
| 2,795 | ||
| (2,242) (13,212) |
||
| (15,454) | ||
| 18,249 (15,454) |
||
| 2,795 |
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The Mohamed S. Farsi Foundation Notes to the Financial Statements For the year ended 31st December 2021
1. Accounting Policies
a) Accounting convention
Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), published on 16 July 2015. The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The charity is a public benefit entity as defined by FRS 102. It exists solely to pursue its charitable objectives and does not seek to make a financial return.
b) Going Concern Basis
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern, including the current Covid-19 pandemic. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on donation income. After making enquiries the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
c) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.
d) Income
Income from donations and grants is included when receivable unless the donor has specified that the donation or grant relates to a future period or that certain pre-conditions must be fulfilled before use. In these cases the amounts received are recognised in the relevant period or when the pre-conditions have been met and until then treated as deferred income. Donations or grants for particular purposes are accounted for as restricted funds.
e) Expenditure and its basis of allocation
Expenditure is included in the Statement of Financial Activities (SOFA) on an accruals basis.
Support costs comprise the costs of administering the activities of the charity and is included within charitable expenditure. Governance costs are included in support costs associated with ensuring the charity meets its fiduciary duties.
Charitable activity costs include grants payable to third parties in furtherance of the charitable objects of the charity.
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The Mohamed S. Farsi Foundation Notes to the Financial Statements For the year ended 31st December 2021
1. Accounting Policies (continued)
f) Critical accounting estimates and areas of judgement
In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. There are no estimates considered to have a significant effect.
g) Financial Instruments
Cash and Cash Equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
2. Grants and donations
| 2. Grants and donations |
||||
|---|---|---|---|---|
| Donations 3. Charitable activities Grants (note 4) Support costs (note 5) 4 Analysis of grants made The advancement of education The advancement of international development The advancement of the arts, culture, heritage or science |
2021 No. 2 2 - 4 |
Unrestricted £ 59,932 59,932 Unrestricted £ 75,149 3,217 78,366 £ 69,519 5,630 - 75,149 |
Total 2021 £ 59,932 59,932 Total 2021 £ 75,149 3,217 78,366 2020 No. 5 1 2 8 |
Total 2020 £ 135,000 |
| 135,000 | ||||
| Total 2020 £ 134,987 2,755 |
||||
| 137,742 | ||||
| £ 114,118 5,000 15,869 |
||||
| 134,987 |
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The Mohamed S. Farsi Foundation Notes to the Financial Statements For the year ended 31st December 2021
5 Support costs
| Support costs Independent examination/audit & accountancy Legal and professional fees Miscellaneous expenses |
2021 £ 2,412 300 505 3,217 |
2020 £ 2,040 82 633 |
|---|---|---|
| 2,755 |
Governance costs included within support costs amounted to £2,712 (2020: £2,122).
The charity does not employ any staff.
6 Trustees' Remuneration and Reimbursed Expenses
No members of the Board of Trustees received remuneration for their services during the year, nor had any expenses reimbursed.
7 Debtors
| 7 Debtors Other Debtors 8 Creditors: Amounts falling due within one year Accruals Accruals - grants Other creditors |
2021 £ 34,475 34,475 2021 £ 5,202 22,236 8,640 36,078 |
2020 £ 34,475 |
| 34,475 | ||
| 2020 £ 8,722 - 24,828 |
||
| 31,428 |
9 General Funds
The General Fund represents funds available for projects and administration.
If there are no funds available in the General Fund, administrative expenditure will be met by the Trustees.
10 Related Party Transactions
During the year, donations were received totalling £59,932 (2020: £135,000) from H Farsi, trustee.
Included within the cash balance is an amount of £1,895 which belongs to ADF, an entity of which V Chevance is a trustee. This account is held by the Mohamed S Farsi Foundation on behalf of ADF. A corresponding balance is included within creditors.
11 Key Management Personnel
Key management personnel comprise the board of trustees. The charity has no employees.
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