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**REGISTERED COMPANY NUMBER: 10585970 (England and Wales) REGISTERED CHARITY NUMBER: 1181788**
## **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FOR**
## **HINDAWI FOUNDATION**
**(A COMPANY LIMITED BY GUARANTEE)**
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
||**Page**|
|---|---|
|**Report of the Trustees**|**1 to 6**|
|**Independent Examiner's Report**|**7**|
|**Statement of Financial Activities**|**8**|
|**Balance Sheet**|**9**|
|**Statement of Cash Flows**|**10**|
|**Notes to the Financial Statements**|**11 to 21**|
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period 1 January 2022 to 31 December 2022. The trustees have adopted the provisions of 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 2015).
## **OBJECTIVES AND ACTIVITIES**
## **Mission Statement**
Translating into Arabic and publishing literary works (including scientific, learned, academic, other non-fiction and fictional works). Publishing or republishing literary works originally written in Arabic (including scientific, learned, academic, other non-fiction and fictional works). Making translated works and Arabic content freely digitally available.
The catalyst for the creation of the Hindawi Foundation was a UN Development Fund report, which stated: "For Arab societies, translation is a formidable challenge ... the number of books translated in the Arab world [per year] is one fifth of the number translated in Greece … a marked shortage of translations of basic books on philosophy, literature, sociology, and the natural sciences is quite evident.”[1]
The Hindawi Foundation was created to meet that need. Although some progress has been made in the development of the book industry and in translation into Arabic in recent years, availability remains scarce, translation lacking and of an often inconsistent standard, and access to works which present new ideas or challenge perspectives in the Arabic-speaking world is problematic or prohibited.
The Foundation aims to transform the literary landscape of the Arabic-speaking communities around the globe by providing a permanent, online library of thought-provoking, interesting, and valued fiction and non-fiction works, which is freely available to any Arabic speaker with access to the internet.
## **Activities**
The Foundation seeks to achieve its objectives through two avenues: the translation of literary works from English and other languages into Arabic and the re-publication and publication of Arabic works which align with the Foundation's criteria. English (and other) language acquisitions take the form of both works in copyright, for which the Foundation negotiates translation rights contracts, and works which have entered the public domain. Works are published on the Foundation's website and apps. The Foundation also prints a select number of titles in trade paperback format, which are made available for sale through retailers and at book fairs across the Middle East and North Africa region.
## **Objectives**
The Trustees' objectives for 2022 included:
- Increasing foreign acquisitions
- Expanding the output of Arabic language works
- Taking steps to vary the Foundation’s income sources
The objective of increasing foreign acquisitions will make additional and more varied literary works available for publication, while expanding the output of Arabic language works aligns with the Charity’s aim of making freely available original Arabic literary works, but at a greater scale. Efforts to vary the Foundation’s income sources demonstrate the Trustees’ consideration that the long-term outlook for the Foundation is that its work will continue to be needed for decades to come and therefore diversification of income is a sensible risk mitigation.
> 1 UN Development Programme, _Arab Fund for Economic and Social Development, Arab Human Development Report 2003_ Page 1
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## **HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Achievements and performance**
In the 2022 calendar year, the Foundation made 54 translated books newly available and published 485 in the Arabic language. The Foundation's new publications in 2022 enabled beneficiaries to have free access to hundreds of previously unpublished or unavailable works in Arabic that provide stimulating content and encourage the enjoyment of literature. Foreign language acquisitions more than doubled in 2022, supplying in excess of 2.6 million words of copyrighted works for translation. Translated words totalled more than 3.5 million, with total (Arabic) digital works published exceeding 12 million. The Foundation’s user base also expanded significantly in 2022, with more users accessing more books and literature than ever before. Access to the Hindawi Foundation’s publications is of key benefit to Arabic speakers in volatile, insecure, or impoverished countries/regions where traditional routes of access to literature may well be impossible. The Foundation’s website and apps. enabled many Arabic speakers to access an online literature library of unique depth and breadth.
In 2022, the Foundation also launched an individual giving platform on its website to enable the charity to receive regular and one-off donations.
The Trustees have had regard to the Charity Commission's guidance on public benefit.
## **FINANCIAL REVIEW & INVESTMENT POLICY**
The Hindawi Foundation’s income for the year was £115,304 (2021: £7,665,085) Charitable expenditure totalled to £588,660 (2021: £445,895). Purchase of rights for new acquisitions accounted for 67.52% of copyrights expenditure, with renewals of existing contracts totalling 32.48%.
Running costs continue to be funded from the significant (unrestricted) gift received in 2021, which has subsequently been invested by Trustees. While the Charity will receive further funding over time and is actively diversifying funding sources, the Trustees’ assessment remains that the funding received should cover the running costs of the Foundation for a number of years.
The Trustees resolved that the overall objective of the Hindawi Foundation’s Investment Policy is to generate income to fund the Foundation’s running costs, while strategically drawing down on the principle for the expansion of the Foundation’s programmes to further the Charity’s Objectives. The Hindawi Foundation has a long-term outlook, defined as 50 years plus to achieve its objectives.
Both capital and income may be used at any time for the furtherance of the Hindawi Foundation’s aims and therefore the portfolio is to be managed on a total return basis. The Hindawi Foundation is permitted to make withdrawals from capital to supplement any income generated by the portfolio to meet the costs associated with running the Foundation and to finance specific projects, where necessary.[2] The Charity’s principal funding sources remain private donations.
The Charity’s invested funds are held in an actively managed, medium risk multi-asset discretionary portfolio. The Trustees are not presently requiring investments to adhere to any specific social, environmental or ethical considerations.
At present, the Charity’s policy is to maintain a minimum reserve for the continued maintenance of the Foundation’s online publishing platforms, including funds to contribute to annual electronic book fees. Current reserves total £6,034,784. There are currently no restricted funds.
> 2 For further details see the Charity’s Investment Policy document
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## **HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **RISK MANAGEMENT STATEMENT**
While the Hindawi Foundation operates within the recognised publishing sphere, the Trustees have identified a number of specific and ongoing risks:
## 1. Restriction of publishing platforms
The most immediately severe risk to the Charity’s ability to fulfil its stated Objectives is the external risk of a restriction of our publishing platforms, which would prevent beneficiaries from accessing our content. This is a Major risk and one which the Foundation has already had to navigate. The primary mitigation is to make every effort to ensure our content is a) visibly legal and b) politically and religiously neutral – within the bounds of the Charity’s objectives of enabling access to knowledge. The Foundation also release all non-licenced works under a Creative Commons licence to enable wider access and use. The Charity is also, where possible, looking to establish relationships with government censorship bodies. While these efforts appear to have had a positive impact, restriction of our publishing platforms remains a Major risk.[3]
## 2. Adverse government policy
Adverse government policy in relation to the operation of foreign charities within the territory where the Charity’s subsidiary is located presents a Moderate potential risk. Ensuring Trustees and senior management are aware of political developments within countries in which the Charity operates and ongoing monitoring of proposed legal and regulatory changes have been identified as the main mitigations. Continued strengthening of the Hindawi Foundation’s brand – alongside openly publishing the Charity’s aims and objectives, motivations, funding sources and Trustee and Staff details – may also reduce the likelihood of adverse government policy affecting the Foundation’s work.
## 3. Dependency on income sources
The Charity is presently in a strong funding position in the medium term and is actively diversifying its income sources. However, as Trustees have identified the long-term outlook of the Foundation as “50 years plus to achieve its objectives”, dependency on income sources presents a Moderate future risk to the Charity’s activities, if current project expenditure remains unchanged without an increase in income.[4 ]
> 3 The Risk Impact Descriptors used in this Annual Report are taken from _Charities and Risk Management (CC26)_ 4 An assessment of the broader risks faced by the Charity can be found in the Charity’s full Risk Management Statement document
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## **HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, the Articles of Association adopted on 12 December 2018, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006
## **Management and Organisational Structure**
The Trustees guide the overall direction of the charity to ensure that activities align with the Foundation's aims and objectives. Unless decisions are deemed to relate to long-term financial management, or relate to the Charity’s objectives, or staff have specifically requested Trustee input, then they are delegated to staff. Production and printing of titles is undertaken by the Hindawi for Print and Distribution (Cairo-registered company) which is a wholly owned subsidiary of Hindawi Foundation.
The Trustee body seeks to utilise the Board’s varied expertise and skills as part of internal improvement and training. Informal meetings to share expertise and are encouraged, while Charity staff assist with Trustee induction. The Charity’s Chair of Trustees, in discussion with Charity staff, regularly assesses the capabilities of the Trustee body and recommends any training thought to be of value.
The Foundation does not have any formal benchmarking process for setting pay and remuneration. However, staff salary offers are broadly comparable to similar industry roles. At present, no employees have total benefits over £60k.
## **Recruitment and appointment of new trustees**
The existing Trustees are responsible for the recruitment of new Trustees. Selection of new Trustees is a collaborative process with particular emphasis placed on individuals who will bring a different perspective, as well as relevant skills and experience to the board. Potential Trustees can be suggested by any existing Trustee and are then discussed internally, before a formal invitation is extended. Potential Trustees are given details of the Foundation's charitable aims and activities. If they agree, they are then proposed at the subsequent Trustees' meeting.
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**HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
10585970 (England and Wales)
## **Registered Charity number**
1181788
## **Registered office**
York House 41 Sheet Street Windsor Berkshire SL4 1DD
## **Trustees**
Dr Ahmed Hindawi Dr Nagwa Abdelmottaleb Mr Paul Peters Dr Nadia Oweidat Dr Andrew Kitchin Dr Khaled Hroub
## **Senior management personnel**
CEO: Dr Ahmed Hindawi
## **Banking services and investment advisors**
Barclays Bank Level 15 1 Churchill Place London E14 5HP
## **Independent Examiner**
FLB Audit LLP Chartered Accountants & Registered Auditors 1010 Eskdale Road Winnersh Triangle Berkshire RG41 5TS
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## **HINDAWI FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees 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).
The law applicable to charities in England & Wales 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 of the charity for that year. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable 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 inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions and 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **PUBLIC BENEFIT REQUIREMENT**
The Trustees have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to guidance published by the Charity Commission concerning the public benefit requirement.
26/9/2023 | 07:00 PDT Approved by order of the board of trustees on ................................. and signed on its behalf by:
................................................................... Ahmed Hindawi – Trustee
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## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HINDAWI FOUNDATION**
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2022, which are set out on pages 8 to 21.
## **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 REPORT**
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:
- (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 accounting 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
- (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.
## **Daniel Faust (FCCA) FLB Audit LLP**
1010 Eskdale Road Winnersh Triangle Berkshire RG41 5TS
26/9/2023 | 17:16 BST
………………………
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## **HINDAWI FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Notes**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
Investment income
3
**Total income**
**EXPENDITURE ON**
Raising funds
4
Charitable activities
5
**Total expenditure**
**NET INCOME**
(Losses)/gains on investments
11
**NET INCOME/EXPENDITURE**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
16|**2022**
**Unrestricted**
**fund**
**£**
38,443
76,861
**115,304**
(32,514)
(556,146)
**(588,660)**
**(473,356)**
(623,300)
(1,096,656)
**(1,096,656)**
7,131,440
**6,034,784**|**2021**
**Unrestricted**
**fund**
**£**
7,653,837
11,248|
|---|---|---|
|||**7,665,085**
(5,773)
(440,122)|
|||**(445,895)**
**7,219,190**|
|||(4,722)|
|||**7,214,468**|
|||**7,214,468**|
|||(83,028)
**7,131,440**|
All activities derive from continuing operations during the above two periods.
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## **HINDAWI FOUNDATION (COMPANY NUMBER: 10585970) BALANCE SHEET AS AT 31 DECEMBER 2022**
|**Notes**
**FIXED ASSETS**
Investments
11
**CURRENT ASSETS**
Debtors
12
Cash at bank
13
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS/(LIABILITIES)**
**FUNDS**
Unrestricted funds
**Total Funds**
16|**2022**
**Unrestricted**
**fund**
**£**
6,182,906
5,146
215,192
220,338
(368,460)
**(148,122)**
**6,034,784**
**6,034,784**
6,034,784
**6,034,784**|**2021**
**Unrestricted**
**fund**
**£**
6,444,670
5,049
837,292|
|---|---|---|
|||842,341
(155,571)|
|||**686,770**|
|||**7,131,440**|
|||**7,131,440**|
|||7,131,440
**7,131,440**|
For the year ending 31 December 2022 the company was entitled to exemption from audit under section 477of 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,
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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
26/9/2023 | 07:00 PDT ............................................. and were signed on its behalf by:
............................................. Ahmed Hindawi – Trustee
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## **HINDAWI FOUNDATION**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Notes**
**CASH FLOWS FROM OPERATING ACTIVITIES**
_Net cash provided by operating activities_
18
**CASH FLOWS FROM INVESTING ACTIVITIES**
Dividends, interest & rents from investments
Proceeds from sale of investments
Purchase of investments
Investment in subsidiary
**_Net cash (used)/provided by investing activities_**
**Change in cash and cash equivalents in the**
**reporting period**
Cash and cash equivalents at the beginning of the
reporting period
Change in cash and cash equivalents due to
exchange rate movements
**Cash and cash equivalents at the end of the**
**reporting period**
13|**2022**
**Unrestricted**
**fund**
**£**
(380,628)
76,861
1,542,229
(1,461,983)
(441,782)
**(284,675)**
**(665,302)**
837,292
43,202
**215,192**|**2021**
**Unrestricted**
**fund**
**£**
7,075,714
11,248
217,602
(6,551,140)
(60,000)|
|---|---|---|
|||(6,382,290)
693,424
10,756
133,112
837,292|
All of the cash flows are derived from continuing operations during the above two periods.
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**HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. ACOUNTING POLICIES**
## **General information**
Hindawi Foundation is a private charitable company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Two of the trustees are liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The registered company number is 10585970 and the registered charity number is 1181788.
The registered office is York House, 41 Sheet Street, Windsor, Berkshire, SL4 1DD
## **Basis of preparing the financial statements**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.
The charity meets the definition of public benefit entity under FRS 102.
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
## **Functional and presentation currency**
The Charity's functional and presentation currency is GBP.
Monetary amounts in these financial statements are rounded to the nearest £.
## **Exemption from preparing group accounts**
The charity has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements on the grounds that it is a small sized group.
## **Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
It is the opinion of the trustees that due to the nature of the entity there are no assumptions or judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
## **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.
Donation income is recognised when received.
Gift Aid receivable is recognised in income when there is a valid Gift Aid declaration and the donation has been received.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## **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.
## **Expenditure on charitable activities**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs incurred are apportioned across the charitable activities based on use of resource.
## **Governance costs**
Governance costs include the costs attributable to the charity's compliance with constitutional and statutory requirements and have been included as support costs.
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## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the statement of financial position date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **Investments in Subsidiaries**
Investments in subsidiaries are included at cost less impairment value at the balance sheet date.
## **Debtors**
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
## **Cash and cash equivalents**
Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due.
## **Creditors**
Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. They are allocated to activities based on staff time.
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## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Foreign Currencies**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the SOFA for the period.
## **Financial Instruments**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets: Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
## **2. INCOME FROM DONATIONS AND LEGACIES**
|Donations and gifts|**Unrestricted**
**Funds**
**2022**
**£**
**38,443**
**38,443**|**Unrestricted**
**Funds**
**2021**
**£**
7,653,837
7,653,837|
|---|---|---|
## **3. INVESTMENT INCOME**
|Interest receivable
Dividend income from listed investments|**Unrestricted**
**Funds**
**2022**
**£**
**44,225**
**32,636**
**76,861**|**Unrestricted**
**Funds**
**2021**
**£**
9,636
1,612
11,248|
|---|---|---|
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## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **4. EXPENDITURE ON RAISING FUNDS** _**By Fund**_
||**Unrestricted**|**Total**|**Total**|
|---|---|---|---|
||**fund**|**2022**|**2021**|
||**£**|**£**|**£**|
|Portfolio management fees|32,514|**32,514**|5,773|
**5. EXPENDITURE ON CHARITABLE ACTIVITIES** _**By Fund**_
||**Unrestricted**|**Total**|**Total**|
|---|---|---|---|
||**fund**|**2022**|**2021**|
||**£**|**£**|**£**|
|Translation and publication|556,146|**556,146**|440,122|
## _**By Activity**_
|Wages & Salaries
Employers National Insurance
Pension costs
Pension admin costs
Translation expenses
Translation & Publication & Technology
Subscriptions
Copyrights
E-book fees
Web Hosting
Audio Book Fees
Freelance Developers
Printing Expense
Book Fair Expense
Graphic Fees
Advertising
Support costs
Governance costs|**Translation**
**and**
**publication**
**£**
29,042
2,905
871
396
14,851
82,227
2,005
352,604
27,301
31,594
652
5,305
6,408
263
333
740
(17,204)
15,853
556,146|**Total**
**2022**
**£**
**29,042**
**2,905**
**871**
**396**
**14,851**
**82,227**
**2,005**
**352,604**
**27,301**
**31,594**
**652**
**5,305**
**6,408**
**263**
**333**
**740**
**(17,204)**
**15,853**
**556,146**|**Total**
**2021**
**£**
30,000
2,922
900
396
188
-
1,312
448,889
23,040
30,605
269
-
-
-
-
-
(118,600)
20,261
440,122|
|---|---|---|---|
Page 15
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6. ANALYSIS OF SUPPORT COSTS**
|**Support costs**
Bank charges
Foreign exchange
(gains)/losses
Telephone & internet
Insurance
Medical fee
**Governance costs**
Audit & accountancy fees
Legal fees
Total|**Charitable**
**activities**
**£**
2,103
(22,232)
216
2,710
-
(17,204)
10,046
5,807
15,853
(1,351)|**Total**
**2022**
**£**
**2,103**
**(22,232)**
**216**
**2,710**
**-**
**(17,204)**
**10,046**
**5,807**
**15,853**
**(1,351)**|**Total**
**2021**
**£**
**Basis of**
**Allocation**
**1,654**
Direct allocation
**(121,667)**
Direct allocation
**218**
Direct allocation
**1,116**
Direct allocation
**19**
Direct allocation
**(118,660)**
**12,821**
Direct allocation
**7,440**
Direct allocation
**20,261**
**(98,399)**|
|---|---|---|---|
## **7. TRUSTEES REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the period ended 31 December 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the period ended 31 December 2021.
## **8. STAFF COSTS**
|**Staff costs during the year were:**
Wages & Salaries
Employers National Insurance
Pension costs|**2022**
**£**
**29,042**
**2,905**
**871**
**32,818**|**2021**
**£**
30,000
2,922
900
33,822|
|---|---|---|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
||**2022**||**2021**||
|---|---|---|---|---|
|Translation and publishing||**1**||1|
No employees received emoluments in excess of £60,000 (2021: 0)
The charity considers its key management personnel comprise the trustees. The total employee benefits of the key management personnel of the charity, including employer pension contributions, were £Nil (2021 - £Nil).
Page 16
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **9. PENSION AND OTHER SCHEMES**
## **Defined contribution pension scheme**
The charity operates a defined contribution pension scheme. The pension costs charge for the year represents contributions payable by the charity to the scheme and amounted to £871 (2021: £900).
## **10. INDEPENDENT EXAMINER’S REMUNERATION**
|Independent examination of the financial statements
Audit of the financial statements
All other non-audit services|**2022**
**£**
**5,000**
**-**
**5,046**
**10,046**|**2021**
**£**
**-**
9,000
3,821
12,821|
|---|---|---|
## **11. FIXED ASSET INVESTMENTS**
|Investments in subsidiary undertakings
Listed investments|**2022**
**£**
**557,636**
**5,625,270**
**6,182,906**|**2021**
**£**
115,854
6,328,816
6,444,670|
|---|---|---|
## **Investments in subsidiary undertakings**
|**nvestments in subsidiary undertakings**||
|---|---|
|**COST LESS IMPAIRMENT**
At 1 January 2022
Additions
**At 31 December 2022**
**NET BOOK VALUE**
**At 31 December 2022**
At 31 December 2021|**Investments in**
**subsidiary**
**undertakings**
**£**
115,854
441,782|
||**557,636**|
||**557,636**|
||115,854|
Page 17
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FIXED ASSET INVESTMENTS (continued)**
The company's investments at the balance sheet date in the share capital of companies include the following:
## **Hindawi For Print & Distribution**
Registered office: Egypt Nature of Business: Print & Distribution Class of share: Ordinary % holding: 100% **31 Dec 2022 31 Dec 2021 £ £** Aggregate capital & reserves 134,962 142,644 Profit for the year 21,307 5,674
## **Hindawi Technologies**
Registered office: Egypt Nature of Business: Publishing & Distribution Class of share: Ordinary % holding: 100% **31 Dec 2022 31 Dec 2021 £ £** Aggregate capital & reserves 441,516 - Profit for the year 1,805 -
## **Listed investments**
|**VALUATION**
Brought forward
Additions
Disposals
Revaluation
(Loss)/gain on foreign exchange
**At 31 December 2022**
**NET BOOK VALUE**
**At 31 December 2022**
At 31 December 2021|**Listed**
**investments**
**£**
**6,328,816**
**1,461,983**
**(1,542,229)**
**(1,421,082)**
**798,782**|
|---|---|
||**5,625,270**|
||**5,625,270**|
||**6,328,816**|
All listed investments are carried at their fair value. These investments are all traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market value.
Page 18
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **12. DEBTORS**
|Amounts owed by subsidiary undertakings
Prepayments
Accrued income
**13. CASH AND CASH EQUIVALENTS**
Cash on hand
**14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other loans due to related parties
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
**15. LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Other loans due to related parties
**16. MOVEMENT IN FUNDS**
**At**
**1 Jan 22**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Unrestricted funds**
General
funds
7,131,440
115,304
(588,660)
**Total Funds**
**7,131,440**
**115,304**
**(588,660)**|**2022**
**£**
**2,714**
**1,598**
**834**
**5,146**
**2022**
**£**
**215,192**
**2022**
**£**
**130,000**
**134,706**
**790**
**176**
**102,787**
**368,459**
**2022**
**£**
**130,000**
**Other**
**recognised**
**gains/(losses)**
**£**
(623,300)
**(623,300)**||**2021**
**£**
**2,710**
**1,568**
**771**
**5,049**
**2021**
**£**
**837,292**|
|---|---|---|---|
||||**2021**
**£**
130,000
4,909
758
168
19,736
155,571
**2021**
**£**
130,000|
||||**At**
**31 Dec 22**
**£**
6,034,784|
||||**6,034,784**|
Page 19
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Comparatives for movement in funds**
|**At**
**1 Jan 21**
**£**
**Unrestricted funds**
General
funds
(83,028)
**Total Funds**
**(83,028)**|**Incoming**
**resources**
**£**
7,665,085
**7,665,085**|**Resources**
**expended**
**£**
(445,895)
**(445,895)**|**Other**
**recognised**
**gains/(losses)**
**£**
(4,722)
**(4,722)**|**At**
**31 Dec 21**
**£**
7,131,440|
|---|---|---|---|---|
|||||**7,131,440**|
## **17. RELATED PARTY DISCLOSURES**
Included within creditors amounts falling due within one year are interest free loans repayable on demand, due to Ahmed Hindawi (Trustee), of £130,000 (2021: £130,000). These loans were provided to the entity prior to its change in status from Community Interest Company to a Charity, limited by guarantee, on 12 December 2018.
This loan was forgiven post year end – see note 21 for further details.
During the year the charity received total donations without conditions of £Nil from its trustees (2021: £6,120,000)
## **18. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**NET INCOME FOR THE REPORTING PERIOD**
**_Adjustments for:_**
(Gains)/losses on foreign exchange
(Gains)/losses on investments
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**_Net cash provided by operating activities_**|**Year ending**
**31 Dec 2022**
**Unrestricted**
**fund**
**£**
(1,096,657)
(841,585)
1,421,685
(76,861)
(98)
212,888
**(380,628)**|**Year ending**
**31 Dec 2021**
**Unrestricted**
**fund**
**£**
7,214,468
(113,647)
(14,743)
(11,248)
(5,049)
5,933|
|---|---|---|
|||7,075,714|
Page 20
DocuSign Envelope ID: 8AB3FDBF-8104-4041-A1A4-77B781B5AF23
## **HINDAWI FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **19. ANALYSIS OF NET DEBT**
|**At**
**1 Jan 22**
**£**
**Cash**
**Flows**
**£**
Cash
837,292
(665,302)
Loans falling due within 1 year
(130,000)
-
**Net Debt**
**707,292**
**(665,302)**
**FINANCIAL INSTRUMENTS**
**Financial assets measured at amortised cost**
Investments in subsidiaries
Amounts owed by subsidiary undertakings
Cash at bank
**Financial liabilities measured at amortised cost**
Other loans due to related parties
Trade creditors
Other creditors
Accruals
**Financial assets measured at fair value through income &**
**expenditure**
Other investments||**Foreign**
**Exchange**
**Movements**
**£**
43,202
-
**43,202**
**2022**
**£**
557,636
2,714
215,192
**776,262**
130,000
134,706
176
102,787
**367,670**
**5,625,270**||**At**
**31 Dec 22**
**£**
215,192
(130,000)
**85,192**
**2021**
**£**
115,854
2,710
837,292|
|---|---|---|---|---|
|||||**955,856**|
|||||130,000
4,909
168
19,736|
|||||**154,813**|
|||||6,328,816|
## **20. FINANCIAL INSTRUMENTS**
## **21. POST BALANCE SHEET EVENTS**
Following the year end, Ahmed Hindawi waived the loan of £130,000 due from the charity.
Page 21