DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 **REGISTERED COMPANY NUMBER: 08249345 (England and Wales) REGISTERED CHARITY NUMBER: 1150993** Report of the Trustees and Financial Statements for the Year Ended 30 June 2023 for The Near East Foundation UK Moore Chartered Accountants and Statutory Auditor 30 Gay Street Bath BA1 2PA DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Contents of the Financial Statements for the Year Ended 30 June 2023 ||Page| |---|---| |Report of the Trustees|1 to 10| |Report of the Independent Auditors|11 to 14| |Statement of Financial Activities|15| |Balance Sheet|16| |Cash Flow Statement|17| |Notes to the Cash Flow Statement|18| |Notes to the Financial Statements|19 to 27| DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 **1. Reference and Administrative Charity Name** The Near East Foundation UK **Registered Charity Number** 1150993 **Company Number** 8249345 (England and Wales) **Registered Office** 7-14 Great Dover St. London, SE1 4YR **Trustees** Anthony Ronald Williams Chairperson Dr. Robert Neil Palmer Brown Dr. Anthony Geraint Williams Johnson Garrett Catherine Essoyen Hopen Mona Ezzeldin Eraiba **Co-Managing Directors** John Ashby and Dr. Simona Ceci Giannini **Auditors** Moore Chartered Accountants and Statutory Auditor 30 Gay Street Bath BAI 2PA **Principal Bankers** NatWest (http://www.neareast.org/uk) Gulf International Bank (www.gibam.com) ## **2. Structure, Governance and Management** The Near East Foundation UK (“NEF UK”) was incorporated under the Companies Act 2006 on 11[th] October 2012 (company number 8249345) and became a registered charity of England and Wales (charity number 1150993) on 27 February 2013. NEF UK is a charitable company with no issued share capital being limited by guarantee. The governing instrument is NEF UK’s Articles of Association, the Near East Foundation (“NEF”) is its sole member and the Trustees are the Charity’s directors. The directors form the board of directors and are an independent body. The board of directors together with the Co-Managing Directors ensure that the Charity delivers its goals and has the overall responsibility for overseeing NEF UK’s strategy, finances and to monitor compliance, performance and overall risk. The Co-Managing Directors report to the directors. In June of 2023, Dr. Simona Ceci Giannini informed the board of her intention to step down from her duties as Co-Managing Director effective 31 December 2023. NEF UK is domiciled at 7-14 Great Dover Street, London, SE1 4YR. NEF UK is a founding member of NEF Belgium and two of its Directors sit on the Board of NEF Belgium. 1 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **Recruitment and Appointment of Directors** Director vacancies are identified by NEF UK’s member and/or its directors and discussed at the general assembly meeting in accordance with the Articles of Association. Candidates for a director’s position are required to submit a Curriculum Vitae and undergo an interview with the board Chairperson. The Chairperson will then invite selected candidates to meet the Co-Managing Directors and representatives of the board. The procedure for appointing and removing directors is set out in the Articles of Association. New directors are given relevant governing documents upon induction that includes information on NEF UK programming as well as the Charity’s administrative and financial information. Given the growth of NEF UK, the need for new directors has been discussed and efforts to identify potential board candidates continue. The directors have also continued to discuss the need to prioritise diversity. ## **Risk Management** Directors are briefed on major risks faced by NEF UK as part of the annual risk briefing during the general assembly meeting. In addition, at each board meeting, directors generally receive: - project dashboards that include programmatic and operational risks; - overview of NEF UK’s financial status; - a risk register showing (a) occurred events/materialised risks and (b) new risks if identified; - country-specific risk register if and when needed. 2 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 The following are key risks which NEF UK faces and related mitigation factors in place: |**Safeguarding:**NEF UK and/or its
affiliates fail to prevent harm.|NEF UK introduced new policies and procedures and
has established practices to name a Safeguarding Focal
Point within the Board. The focal point is the
Chairperson of the Board. In his or her role as focal
point the Chairperson uses reasonable efforts to
deepen her or his knowledge of protection standards,
coordinates with the designated compliance officer
regular policy reviews and stays abreast of good
practices and regulations. Safeguarding training for
NEF UK staff and volunteers is compulsory and
repeated
annually.
Frequency
of
training
is
communicated to all of NEF UK’s funding agencies and
entities. Background checks are in place for all staff
and an ethics hotline is monitored 24/7 by a third-
party provider:
(https://www.whistleblowersecurity.com)
In addition, NEF UK has established a local process for
reporting and designated a local focal point for
safeguarding in most of its local offices.| |---|---| |**Fundraising:**
changes
in
the
economic
and/or
political
environment negatively impact
NEF UK income and growth.|NEF UK continues to strengthen and diversify its
income streams. NEF UK is putting in place rigorous
processes for budgeting, monitoring of financial
performance and capitalising on the NEF Family of
Entities to reach Value for Money (VfM) on staff
allocation through secondment processes and cross
tasking. Risks associated with fundraising post-Brexit
have placed further risk considerations in this
category.| |**Development Impact Bond (DIB)**:
the contractual instruments of the
DIB were substantially delayed
creating a financial strain on NEF
UK cashflow.|NEF UK’s CFO puts in place mitigation measures to
contain costs and avoiding shortcomings on project
implementations.| |**Compliance**
**in**
**volatile**
**environments:**failure by NEF UK,
its partners and affiliates to
comply
with
contractual
requirements in volatile and high-
risk environments where NEF
works or to adequately respond to
Donor’s
increased
focus
on
compliance
and
accountable
delivery.|NEF UK has put in place systems for periodic
programmatic and operational audits. NEF UK
regularly reviews its implementation and management
practices and tries to ensure that those working with
NEF abide by NEF’s Code of Conduct, ethics standards
and that all staff members are held accountable for
their work.| 3 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **Related Parties** None of the Directors receive remuneration or other benefits from their engagement with NEF UK. NEF UK Directors may be nominated to the NEF Belgium board but do not receive remunerations or benefits from such role. NEF UK is a member of the Near East Foundation Family of Entities and as such works in partnership with all other NEF Entities both at the Headquarters and field levels sharing resources and knowledge. NEF UK is a founding member of NEF Belgium and as such has the right to appoint UK-based directors to that board. NEF UK works in formal partnership with a growing number of Donors and Partners. Please refer to section 4 for further information on Donors and Partnerships. ## **3. Purpose, Aims and Activities (projects)** ## **Mission Statement** The object of the Charity is to build more sustainable, prosperous and inclusive communities in the Middle East and Africa through education, community organising and economic development. ## **Aims** NEF UK aims to promote (a) sustainable development for the benefit of the public by the preservation, conservation and the protection of the environment and the prudent use of resources; (b) the relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities; (c) the promotion of sustainable means of achieving economic growth and regeneration. ## **Activities/Projects** During the 2022-2023 fiscal year, NEF UK implemented the following projects: ## [ARMENIA] **“Waste-to-Warmth” pilot project in Armenia.** The pilot is establishing a social enterprise in a border community impacted by the Nagorno-Karabakh conflict which will produce and sell eco-briquettes to reduce residents’ dependency on unsustainable harvesting of firewood, as well as create local jobs. Co-financed by Aurora Humanitarian Initiative [$50,028] and the Dadourian Foundation [$15,000]. [Start date: March 2023; End date: June 2024]. 4 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## [JORDAN] **Refugee Impact Bond.** The Refugee Impact Bond leverages an up-front investment of $9,825,000 for NEF UK to deliver a vocational, entrepreneurship, and resilience-building programme for refugees and members of the host communities in Jordan. This program is supported by the Norwegian Agency for Development Cooperation (NORAD), the US international Development Finance Corporation (DFC), the IKEA Foundation, Novo Nordisk Foundation and FERD AS. NEF UK received the initial working capital as a loan disbursements in 2022 and 2022 of £2,852,684 and £4,928,254, respectively. Repayment obligations on the debt financing of £7,780,938 as of June 30, 2023, are guaranteed by Funders NORAD, IKEA Foundation & Novo Nordisk, without further obligation on NEF UK. As of June 2023, the Refugee Impact Bond has a restricted fund balance of £274,125. This represents revenue that was recognized in fiscal year ending June 30, 2022, according to UK GAAP, that will be expensed in future years. This will remain in the restricted fund balance until fully expended. [Start date: October 2021; End date: September 2025]. **Establishing additional Siraj Centers in Jordan.** This $150,000 grant from the Whole Planet Foundation supports NEF UK to start-up and expand access to financing through Siraj Centers with four Jordanian community-based organizations (CBOs). The project will provide training and funding for revolving funds that are controlled by the CBOs. [Start date: July 2021; End date: July 2023] ## [MALI] **Forests for a resilient future in the Region of Mopti** . This €800,000, European Union-funded, 3-year project in Mali aims to: (1) increase forest cover in targeted communities through collective and individual actions (reforestation, restoration and measures to reduce pressure on forest resources); (2) help build local climate resilience capacity by adopting sustainable natural resource management practices; (3) help communities to participate in sustainable development strategies and to fight against poverty; and (4) mobilize communities to develop and implement projects and measures that integrate forest and climate adaptation. [Start date: September 2019; End date: August 2022]. **Program to Support Food Security and the Resilience of Populations to Social and Climate Crises in the Region of Mopti (PASARC II).** The Ministry of Foreign Affairs of the Government of the Netherlands has funded a second phase of the PASARC-I project. This 5-year, £9,000,000 follow-on project aims to improve the food security and resilience of rural populations in the Mopti region of Mali in the face of shocks related to climate change and social crises by strengthening the integrated management of natural resources by sustainably increasing the productivity and focus of value chains in the rural sector. As of June 2023, PASARC II has a restricted fund balance of £1,142,864. This represents revenue that was recognized in fiscal year ending June 30, 2023, according to UK GAAP, that will be expensed in future years. This will remain in the restricted fund balance until fully expended. [Start date: November 2018; End date: November 2024]. 5 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## [SUDAN] **Supporting Vulnerable Entrepreneurs to Strengthen and Scale their Enterprises.** Part of a larger program entitled, “Advancing Self-reliance among Displacement-affected Communities (ASRD),” this $100,000 grant from the Arab Gulf Programme for Development (AGFUND) supported strengthening and expanding two critical streams of NEF’s Siraj program primarily in Sudan, as well as Lebanon and Jordan. [Start date: December 2021; End date: December 2022]. **Advancing Self-reliance among Displacement-affected Communities in Sudan and South Sudan.** This multi-country, multi-year project grant in neighboring states in both Sudan and South Sudan will improve self-reliance among displacement affected populations (refugees, internally displaced, returnees, host communities) using long-term development approaches in various settings (urban, rural, camp, non-camp). NEF will also apply the Siraj model in Sudan and South Sudan contexts for the first time. Financed through a grant of $1,270,583 from the United Nations Office for Project Services (UNOPS). [Start date: August 2022; End date: June 2024]. **Resilience for Peace & Stability, Food and Water Security Innovation Grant Program.** The program will contribute to inclusive economic growth and build resilience in 13 non-timber forest product producing communities through provision of bundled financial and technical services. It will support 3000 entrepreneurs (75% women) involved in non-timber forest products and other cash crops have increased organisation, economic empowerment, and favourable institutional environment Financed through a grant from Stockholm University / Stockholm Resilience Centre / Global Resilience Partnership Start Date: July 1, 2022 – End Date: December 31, 2024 **WASH services in South Kordofan State.** The project aims to deliver water, sanitation and hygiene services for vulnerable refugee, internally displaced population, returnee and host communities in Gadeer and Tawlodi localities in South Kordofan State. It uses a combination of both hardware (infrastructure) and software (training, awareness, capacity building) interventions. Start Date: November 2022; End Date: May 2023 Financed through a grant of $147,581 from Global Aid Hand. ## [SYRIA] **Syria Revolving Fund (RCF) to support Livelihoods Recovery in Syria.** This project (a $983,162 cost-share to an institutionally funded project awarded to NEF) aimed to ensure conflict-affected micro and small entrepreneurs in Syria have access to finance to start or scale their businesses and strengthen the local economy. [Start date: May 2022; End date: June 2025] **Earthquake Rapid Response in North West Syria.** The project will deploy a rapid physical rehabilitation response to support the recovery of NEF-supported business borrowers; work with NEF business borrowers operating in critical sectors to deliver rapid emergency services; connect impacted businesses with businesses that remain fully operational or retain their inventory particularly in locations less impacted by the earthquake; and launch a re-financing mechanism to help current borrowers manage their loans. Start Date: February 2023; End Date: August 2023 Financed through a grant of $250,000 from Vitol Foundation 6 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **Monitoring and Evaluation** NEF UK is committed to the robust monitoring and evaluation of its activities in order to measure effectively their impact on the lives of those it supports. NEF UK designs monitoring and evaluation frameworks for all of its projects. It has dedicated staff at Headquarters, regional, and local levels with responsibility for systematically overseeing and assessing project performance. Evaluation processes include monitoring of key indicators, which are reported (1) to donors through monthly, quarterly or annual reports and (2) to the Board of Directors through project dashboards and project briefs (generally distributed at board meetings). NEF UK often works with external evaluators which allows us to monitor performance and to scrutinise and improve our work. The NEF Family of Entities produces a consolidated Annual Report that is freely available to anyone and posted on the NEF website. Finally, NEF UK believes that evaluation processes are crucial to enable organisational learning and effective design and delivery of projects. The NEF Family of Entities regularly reviews its impact goals and their alignment to NEF’s mission. NEF has designed a global database to track and monitor data with the aim to generate efficient impact assessments across its programs. As with all NEF Entities, NEF UK publishes project data to the International Aid Transparency Initiative (IATI) datastore where information is openly available under an open license. ## **4. Donors and Partnerships** NEF UK has received and receives funds from: United Nations Office for Project Services (UNOPS), Global Resilience Partnership, Arab Gulf Programme for Development, Aurora Humanitarian Initiative Charitable Foundation, the DFC, IKEA Foundation, Novo Nordisk Foundation, NORAD, FERD AS, the Asfari Foundation, the European Commission, the Government of the Netherlands, UKAid Direct, City & Guilds Group, Trafigura Foundation, Rangoonwala Foundation, Big Lottery Fund, Comic Relief, Oak Foundation, Open Society Foundation, Vitol Foundation, Cowater Sogema and Cherie Blair Foundation. NEF UK partners with local and community-based organisations in all countries where it implements projects. A detailed listing of all partners is available in the NEF consolidated annual report as well as in project-specific briefs and on the NEF website. 7 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **5. Fundraising** NEF UK was created to advance the shared values and mission of the Near East Foundation, continuing an over one hundred-year-old legacy of humanitarian and development work abroad. NEF UK is mobilising UKbased and other international constituencies to find innovative, impactful, and cost-effective solutions to critical development and humanitarian issues. NEF UK’s capacity and relevance are reflected in an already strong track record of high-impact, multi-year projects with support from partners such as the DFC, IKEA Foundation, Novo Nordisk Foundation, NORAD, FERD AS, Cherie Blair Foundation for Women, European Union, Big Lottery Fund, City & Guilds Group, Vitol Foundation and Comic Relief. NEF UK has led and continues to lead multi-year projects in Armenia, Morocco, Jordan, Lebanon, Mali, the Occupied Palestinian Territories, Sudan and Syria. A robust fundraising strategy allows NEF UK to (1) close gaps not covered by direct or indirect cost recovery for NEF UK's programme activities, (2) invest in new initiatives and opportunities (e.g., investing in strengthening NEF UK blended financing mechanisms and fund pilot projects in new and critical locations such as South Sudan, Libya and Syria among others), (3) cover unexpected costs that will help us better respond to uncertain government funding and shifting needs on the ground, and (4) elevate the organisation’s mission and raise awareness of its work in the UK and abroad. The goals and activities outlined in NEF UK's strategic fundraising plan, which is led by a team of fundraising and business development professionals and is discussed with the NEF UK Board of Directors, serve to establish a strong foundation for financial, operational, and programmatic stability as well as continued growth. NEF UK signed the Foreign, Commonwealth, and Development Office (FCDO) Global Development Delivery and Conflict, Stability and Security Fund (CSSF) Frameworks in January 2024 and December 2023 respectively. NEF UK now has access to mini-tenders and direct awards subject to relevant terms of reference. 8 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **6. Future Plans** NEF UK will continue to grow its programmes in the next fiscal year. To date NEF UK has secured funding from public and private sector investors and donors to fund a Development Impact Bond to support livelihoods opportunities for refugees and their vulnerable host communities in Jordan and Lebanon. In addition, NEF UK has submitted proposals and secured funding from: (a) Vitol Foundation to support NEF’s innovative access through establishing Revolving Credit Funds in Syria project and to support vulnerable populations in South Sudan; (b) Center for Disaster Philanthropy to support IDPs and vulnerable populations in Sudan and South Sudan and (c) continues to raise funds for a Development Impact Bond (DIB) targeting refugees and host communities in Lebanon, supported by Ikea Foundation, Novo Foundation, NORAD, Development Finance Corporation and Ferd AS and for contributions to the blended finance mechanism to support a Revolving Credit Facility in Syria. NEF UK has moved forward its plans to pursue public commercial tendering and it is awaiting donors’ responses on a several submitted proposals for potential projects in Lebanon, Syria, Sudan and Jordan. Furthermore, and as referenced above, the NEF UK Board has committed to (a) grow the number and the diversity of its Trustees/Directors on the board and, (b) review NEF UK fundraising policies and processes. In addition, the Board has approved a draft succession plan that can guarantee business continuity in case of short- or long-term emergencies. 9 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Report of the Trustees for the Year Ended 30 June 2023 ## **7. Statement of Trustees’ Responsibilities** NEF Directors are responsible for preparing the Trustees’ Annual report and financial statements in accordance with applicable law and the United Kingdom Accounting Standards. ## **Trustees’ Annual Report and Accounts Year Ending 30 June 2023** Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of 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: - select suitable accounting policies and apply them consistently; - make judgments and accounting 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 the financial statements on the going concern basis unless it is not appropriate to presume that NEF UK will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain NEF UK transactions and disclose with reasonable accuracy at any time the financial position of NEF UK and enable them to ensure that the financial statements comply with relevant regulations. They are also responsible for safeguarding assets and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each Trustee in his or her role as Director of NEF UK has confirmed that, insofar they are aware: - there is no relevant audit information of which NEF UK auditors are unaware; - they have taken all the steps that, as Trustees, they are required to take to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## 27/03/2024 Approved by the Board of Directors on ……………… and signed of the Trustees/Directors behalf by: ___________________ AR Williams Chairperson 10 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## Report of the Independent Auditors to the Members of ## The Near East Foundation UK ## **Opinion** We have audited the financial statements of The Near East Foundation UK (the 'charitable company') for the year ended 30 June 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 30 June 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 Auditors' 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. ## **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 Report of the Independent Auditors 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. 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 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. 11 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## Report of the Independent Auditors to the Members of ## The Near East Foundation UK ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees 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 charitable company 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: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 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 accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 12 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK ## Report of the Independent Auditors to the Members of ## **Our 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 a Report of the Independent Auditors 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Charities Act, Companies Act 2006, UK Financial Reporting Standards and UK taxation legislation. We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. We also utilised the work of group auditors on specific projects to further understand how the charitable company complies with these requirements. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. 13 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## Report of the Independent Auditors to the Members of ## The Near East Foundation UK ## **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 auditors' 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. Mark Powell (Senior Statutory Auditor) for and on behalf of Moore Chartered Accountants and Statutory Auditor 30 Gay Street Bath BA1 2PA 27/03/2024 Date: ............................................. 14 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK Statement of Financial Activities for the Year Ended 30 June 2023 |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Charitable Activity
Investment income
3
**Total**
**EXPENDITURE ON**
**Charitable activities**
5
Charitable Activity
Net foreign exchange gains/(losses)
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
2,359
-
131,731
134,090
-
70,287
70,287
63,803
3,016
66,819|
Restricted
funds
£
609,548
3,544,874
71,521
4,225,943
6,064,174
-
6,064,174
(1,838,231)
3,976,226
2,137,995|30.6.23

Total
funds
£
611,907
3,544,874
203,252
4,360,033
6,064,174
70,287
6,134,461
(1,774,428)
3,979,242
2,204,814|30.6.22
Total
funds
£
545,064
6,385,945
-
6,931,009
4,245,422
3,049
4,248,471
2,682,538
1,296,704
3,979,242| |---|---|---|---|---| 15 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK (Registered number: 08249345) ## Balance Sheet ## 30 June 2023 |Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Debtors
12
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
13
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS**
Amounts falling due after more than one
year
14
**NET ASSETS**
**FUNDS**
15
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
Restricted
fund
funds

£
£
-
48,763
14,898
5,831,675
108,464
4,241,594
123,362
10,073,269
(56,542)
(203,100)
66,820
9,870,169
66,820
9,918,932
-
(7,780,938)
66,820
2,137,994|30.6.23

Total
funds
£
48,763
5,846,573
4,350,058
10,196,631
(259,642)
9,936,989
9,985,752
(7,780,938)
2,204,814
66,820
2,137,994
2,204,814|30.6.22
Total
funds
£
79,376
3,768,740
5,208,201
8,976,941
(148,821)
8,828,120
8,907,496
(4,928,254)
3,979,242
3,016
3,976,226
3,979,242| |---|---|---|---| These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 27/03/2024 ............................................. and were signed on its behalf by: ............................................. A R Williams - Trustee 16 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK ## Cash Flow Statement for the Year Ended 30 June 2023 |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash provided by/(used in) investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end**
**of the reporting period**|30.6.23
£
(1,061,395)
(1,061,395)
-
203,252
203,252
(858,143)
5,208,201
4,350,058|30.6.22
£
3,864,327
3,864,327
(31,290)
-
(31,290)
3,833,037
1,375,164
5,208,201| |---|---|---| 17 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK ## Notes to the Cash Flow Statement for the Year Ended 30 June 2023 ## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**Net (expenditure)/income for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Increase in debtors
Increase in creditors
**Net cash (used in)/provided by operations**|30.6.23
£
(1,774,428)
30,613
(203,252)
(2,077,833)
2,963,505
(1,061,395)|30.6.22
£
2,682,538
28,005
-
(3,714,362)
4,868,146
3,864,327| |---|---|---| ## **2. ANALYSIS OF CHANGES IN NET FUNDS** |**Net cash**
Cash at bank and in hand
**Total**|At 1.7.22
£
5,208,201
5,208,201
5,208,201|Cash flow
£
(858,143)
(858,143)
(858,143)|At 30.6.23
£
4,350,058
4,350,058
4,350,058| |---|---|---|---| 18 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements for the Year Ended 30 June 2023 ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** 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 (FRS 102) (effective 1 January 2019)', 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. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Staff costs include both NEF UK staff as well as costs of people not directly employed by NEF UK but working on NEF UK projects. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Motor vehicles - Straight Line over 5 years ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives 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. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 19 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 |**2.**
**DONATIONS AND LEGACIES**
Contributions
Miscellaneous income
**3.**
**INVESTMENT INCOME**
Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Grants
Grants received, included in the above, are as follows:
EU Grants
PASARC
UK Government Grants
United Nations
Development Impact Bond Income|30.6.23
£
610,692
1,215
611,907
30.6.23
£
203,252
30.6.23
Charitable
Activity
£
3,544,874
30.6.23
£
19,357
2,287,110
19,058
829,107
390,242
3,544,874|30.6.22
£
343,066
201,998
545,064
30.6.22
£
-
30.6.22

Total

activities
£
6,385,945
30.6.22
£
-
2,739,405
26,328
-
3,620,212
6,385,945| |---|---|---| 20 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **5. CHARITABLE ACTIVITIES COSTS** |**CHARITABLE ACTIVITIES COSTS**|||| |---|---|---|---| |Charitable Activity
Net foreign exchange gains/(losses)|Direct
Costs
£
6,064,174
-
6,064,174|Support
costs (see
note 6)
£
-
70,287
70,287|Totals
£
6,064,174
70,287| ||||6,134,461| ## **6. SUPPORT COSTS** |**SUPPORT COSTS**|| |---|---| ||Finance| ||£| |Net foreign exchange gains/(losses)|70,287| ## **7. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): ||30.6.23|30.6.22| |---|---|---| ||£|£| |Depreciation - owned assets|30,613|28,005| ## **8. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 30 June 2023 nor for the year ended 30 June 2022. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 30 June 2023 nor for the year ended 30 June 2022. 21 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **9. STAFF COSTS** |Wages and salaries
Social security costs|30.6.23
£
174,526
1,334,806
1,509,332|30.6.22
£
141,312
1,031,513| |---|---|---| |||1,172,825| The average monthly number of employees during the year was as follows: ||30.6.23|30.6.22| |---|---|---| |Direct employees|3|3| The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |£80,001 - £90,000
**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
203,089
**Charitable activities**
Charitable Activity
-
**Total**
203,089
**EXPENDITURE ON**
**Charitable activities**
Charitable Activity
19,801
Net foreign exchange gains/(losses)
3,049
**Total**
22,850
**NET INCOME**
180,239
**Transfers between funds**
(306,263)
**Net movement in funds**
(126,024)
**RECONCILIATION OF FUNDS**
Total funds brought forward
129,040|30.6.23
1

Restricted
funds
£
341,975
6,385,945
6,727,920
4,225,621
-
4,225,621
2,502,299
306,263
2,808,562
1,167,664|30.6.22
1

Total
funds
£
545,064
6,385,945
6,931,009
4,245,422
3,049
4,248,471
2,682,538
-
2,682,538
1,296,704| |---|---|---| 22 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 |**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
fund
funds
£
£
**TOTAL FUNDS CARRIED FORWARD**
3,016
3,976,226
**11.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 July 2022 and 30 June 2023
**DEPRECIATION**
At 1 July 2022
Charge for year
At 30 June 2023
**NET BOOK VALUE**
At 30 June 2023
At 30 June 2022
**12.**
**DEBTORS**
30.6.23
£
Amounts falling due within one year:
Trade debtors
156,405
Other debtors
14,898
Prepayments and accrued income
1,926,196
2,097,499
Amounts falling due after more than one year:
Other debtors
3,749,074
Aggregate amounts
5,846,573|**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
fund
funds
£
£
**TOTAL FUNDS CARRIED FORWARD**
3,016
3,976,226
**11.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 July 2022 and 30 June 2023
**DEPRECIATION**
At 1 July 2022
Charge for year
At 30 June 2023
**NET BOOK VALUE**
At 30 June 2023
At 30 June 2022
**12.**
**DEBTORS**
30.6.23
£
Amounts falling due within one year:
Trade debtors
156,405
Other debtors
14,898
Prepayments and accrued income
1,926,196
2,097,499
Amounts falling due after more than one year:
Other debtors
3,749,074
Aggregate amounts
5,846,573|| |---|---|---| |||| |||| |||| |||| 23 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 ## The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade creditors
Amounts owed to group undertakings
Other creditors
Accruals and deferred income
**14.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Other creditors
**15.**
**MOVEMENT IN FUNDS**
At 1.7.22
£
**Unrestricted funds**
General fund
3,016
**Restricted funds**
PASARC II
927,576
DIB Jordan
2,765,798
Jordan - WPF
20,546
Sudan - AG Fund
34,829
Syria - Vitol NES Phase II
227,477
SY-NEF UK Revolving funds
-
SY-VITOL - NWS Earthquake recovery
-
AM -Waste to warmth
-
Sudan United Nations Office for
Project Services (UNOPS)
-
WASH services in South Kordofan
State
-
Sudan Global Resilience Partnership
-
3,976,226
**TOTAL FUNDS**
3,979,242|30.6.23
£
203,100
-
2,333
54,209
259,642
30.6.23
£
7,780,938
Net
movement

in funds
£
63,804
215,288
(2,491,673)
35,567
(34,829)
(12,542)
79,210
44,083
39,198
148,718
52,730
86,018
(1,838,232)
(1,774,428)|30.6.22
£
22,939
85,272
6,843
33,767
148,821
30.6.22
£
4,928,254

At

30.6.23
£
66,820
1,142,864
274,125
56,113
-
214,935
79,210
44,083
39,198
148,718
52,730
86,018
2,137,994
2,204,814| |---|---|---| 24 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **15. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Mali EU (2019-2022)
PASARC II
DIB Jordan
Jordan - WPF
Sudan - AG Fund
Syria - Vitol NES Phase II
SY-NEF UK Revolving funds
SY-VITOL - NWS Earthquake recovery
AM -Waste to warmth
Sudan United Nations Office for
Project Services (UNOPS)
WASH services in South Kordofan
State
Sudan Global Resilience Partnership
**TOTAL FUNDS**|Incoming
resources
£
134,090
19,357
2,287,109
461,764
61,051
39,605
182,627
79,210
207,178
39,876
569,653
71,788
206,725
4,225,943
4,360,033|
Resources

expended
£
(70,286)
(19,357)
(2,071,821)
(2,953,437)
(25,484)
(74,434)
(195,169)
-
(163,095)
(678)
(420,935)
(19,058)
(120,707)
(6,064,175)
(6,134,461)|
Movement

in funds
£
63,804
-
215,288
(2,491,673)
35,567
(34,829)
(12,542)
79,210
44,083
39,198
148,718
52,730
86,018
(1,838,232)
(1,774,428)| |---|---|---|---| 25 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **15. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
**Restricted funds**
Mali EU (2019-2022)
PASARC II
Sudan UK Aid Direct
DIB Jordan
Vitol Foundation SRTF - Syria
SS - Vitol
Jordan - WPF
Sudan - AG Fund
Syria - Vitol NES Phase II
**TOTAL FUNDS**|At 1.7.21
£
129,040
47,156
727,721
46,047
-
155,433
191,307
-
-
-
1,167,664
1,296,704|Net
movement

in funds
£
180,239
(348,065)
199,855
(51,401)
2,765,798
(155,433)
(191,307)
20,546
34,829
227,477
2,502,299
2,682,538|Transfers

between

funds
£
(306,263)
300,909
-
5,354
-
-
-
-
-
-
306,263
-|
At
30.6.22
£
3,016
-
927,576
-
2,765,798
-
-
20,546
34,829
227,477
3,976,226
3,979,242| |---|---|---|---|---| Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Mali EU (2019-2022)
PASARC II
Sudan UK Aid Direct
DIB Jordan
Vitol Foundation SRTF - Syria
SS - Vitol
Jordan - WPF
Sudan - AG Fund
Syria - Vitol NES Phase II
**TOTAL FUNDS**|Incoming
resources
£
203,089
-
2,739,405
26,328
3,620,212
-
-
53,885
37,630
250,460
6,727,920
6,931,009|
Resources

expended
£
(22,850)
(348,065)
(2,539,550)
(77,729)
(854,414)
(155,433)
(191,307)
(33,339)
(2,801)
(22,983)
(4,225,621)
(4,248,471)|
Movement

in funds
£
180,239
(348,065)
199,855
(51,401)
2,765,798
(155,433)
(191,307)
20,546
34,829
227,477
2,502,299
2,682,538| |---|---|---|---| 26 DocuSign Envelope ID: A7934C75-962E-49B3-9A63-7C16A7D51E77 The Near East Foundation UK Notes to the Financial Statements - continued for the Year Ended 30 June 2023 ## **15. MOVEMENT IN FUNDS - continued** The restricted fund represent grants and contributions received from the various bodies to deliver the projects as outlined in our Trustees' Report. As part of the Trustees' ongoing consideration of reserves, a review has been undertaken during the year to assess the utilisation of unrestricted funds and allocation of overhead costs to specific projects. Transfers between the funds shown above include the necessary adjustments. The transfers represent centrally costed overheads that are directly linked to each specific projects. ## **16. CONTINGENT LIABILITIES** The organisation entered into a finance agreement during the prior year. The Refugee Impact Bond leverages an up-front investment of $9,825,000 for NEF UK to deliver a vocational, entrepreneurship, and resilience-building programme for refugees and members of the host communities in Jordan. This program is supported by the Norwegian Agency for Development Cooperation (NORAD), the US International Development Finance Corporation (DFC), the IKEA Foundation, Novo Nordisk Foundation and FERD AS. NEF UK received the initial working capital as a loan disbursement of £4,928,254 in 2022 with a further £2,852,684 received in 2023. Repayment obligations on the debt financing of £7,780,938 are guaranteed by Funders NORAD, IKEA Foundation & Novo Nordisk, without further obligation on NEF UK. Depending on the success of the project, there are variable repayment obligations dependent upon the social outcomes which may result in interest accruing on the liability. Although the potential value of the interest is unknown at this stage of the project, any additional liability is matched by further income from the funders in-line with the bond agreement. ## **17. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 30 June 2023. 27