**Charity registration number 1185770**
## **FRIENDS OF BETHLEHEM UK**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 OCTOBER 2021**
## **FRIENDS OF BETHLEHEM UK**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** M Scott M Brown (Appointed 22 January 2022) N Dillon Hatcher I Van Loo **Charity number** 1185770 **Principal address** 29 Sedgeford Road London W12 0NA **Independent examiner** David Walker FCA Langton House 124 Acomb Road Holgate York YO24 4EY
## **FRIENDS OF BETHLEHEM UK**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7 - 13|
## **FRIENDS OF BETHLEHEM UK**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
The trustees present their annual report and financial statements for the year ended 31 October 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
## **Objectives and activities**
To promote Palestinian arts and culture for the public benefit by supporting A lr owwad Cultural & Arts Society in Aida refugee camp, Bethlehem , as well as other cultural institutions and artists in Bethlehem and Palestine - through the Bethlehem Cultural Festival of arts and culture of the Eastern Mediterranean and other activities organised throughout the year.
S upport ing the Al r owwad Cultural & Arts Society in Bethlehem and produc ing the Bethlehem Cultural Festival .
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The principal activity is to hold the annual Bethlehem Cultural Festival which promotes all aspects of Palestinian culture.
In addition, the trustees offer support and assistance to related cultural activities in the UK and in Palestine.
The Charity makes grants to Al r owwad for its regular work in Aida camp and to support occasional specific fundraising activities, including Al r owwad's annual Tekeyat campaign which supports people of Bethlehem during Ramadan with food, medicine and clothing aid. In addition, grants may be made to support or commission activities in the Bethlehem Cultural Festival.
The trustees do not accept or consider unsolicited applications for grants .
The Charity has no employees. It relies significantly on voluntary work by the trustees and artistic directors and curators of the festival .
The Charity could not achieve its objectives without such voluntary support.
- 1 -
## **FRIENDS OF BETHLEHEM UK**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **Achievements and performance**
The trustees have worked to highlight the work of different types of artist and a variety of persons who provide insight into the cultural life of Palestinians.
Online Arabic classes were offered which were taught by representatives of Al r owwad for students in the UK.
A series of online cookery classes, taught by representatives of Al r owwad, were offered.
The first Bethlehem Cultural Festival (BCF) was, because of the pandemic, held entirely online in December 2020 and was a mixture of panel discussions, theatre and music shows as well as collaborative events between the U.K. and Palestine.
The Festival highlighted a variety of work of artists and cultural practitioners in Palestine as well as forging partnerships between the U.K. and Palestine.
Following BCF2020, considerable fundraising and preparation began for BCF2021 which was planned to take place in London, Glasgow and online.
The Charity also initiated and facilitated connections through collaboration, including a bagpiping partnership between Glasgow and Bethlehem and an Arabic language project with Scotland’s National Centre for Languages at the University of Strathclyde.
## **Financial review**
As at 31 October 2021 unrestricted reserves stood at £ 6,561 (2020 £ 4,423 )
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Charity depends on grants and individual donations for funding – income is always more than sufficient - but not assured.
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation Registered at the Charity Commission under number 1185770. The charity constitution was adopted on 11th October 2019. The objects and name were amended on 2nd February 2021.
The trustees who served during the year and up to the date of signature of the financial statements were: M Scott
M Brown N Dillon Hatcher I Van Loo
(Appointed 22 January 2022)
- 2 -
## **FRIENDS OF BETHLEHEM UK**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
New Trustees may be recruited to the Board at any time by the Trustees. Candidates are identified from the longterm, active supporters of Friends of Bethlehem UK and supporters of similar charitable objectives. The Trustees seek to maintain a balance of knowledge and experience relevant to particular aspects of the Charity’s activities; for example: Finance, Governance, Arts, Palestine, Education, etc. Candidates are invited by the Chair to consider participation. Those who accept, attend a meeting with trustees to see and hear how the Charity operates. Once they decide to accept the invitation, they are encouraged to attend as many of the meetings as possible. Inevitably not everyone can attend every meeting. Trustees then confer on the suitability of the candidate and decide whether to appoint.
The Chair spends time with new trustees explaining procedures, objectives and achievements. A buddy trustee is assigned to assist with any questions Meeting dates are agreed a year in advance, with some four meetings each year.
Minutes and review notes are circulated to all members of the Board on a regular basis.
The Charity is small so has a flat structure – most business is dealt with by the trustees – a considerable amount by email or online discussions.
The Charity has a strong relationship with the Palestinian cultural organisation Al Rowwad and other organisations with similar interests in Britain, Europe and Palestine.
The Trustees shall manage the affairs of the CIO and may exercise all the powers of the CIO.
Any meeting of the Trustees at which a quorum is present at the time the relevant decision is made may exercise all the powers exercisable by the Trustees.
## It is the duty of each Trustee:
(a) to exercise his or her powers as a Trustee in the way he or she considers to be in the best interests of the CIO’s Objects and beneficiaries; and
(b) to exercise such care and skill as is reasonable in the circumstances having regard in particular to any special knowledge or experience that he or she has or claims to have.
The Trustees may act regardless of any vacancy in their body but, if and so long as their number is less than 3, the remaining Trustees may act for the purposes of increasing the number of Trustees or winding up the CIO, but for no other purpose.
The trustees' r eport was approved by the Board of Trustees.
M Scott **Trustee**
9 September 2022
- 3 -
## **FRIENDS OF BETHLEHEM UK**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRIENDS OF BETHLEHEM UK**
I report to the trustees on my examination of the financial statements of Friends of Bethlehem UK (the charity) for the year ended 31 October 2021.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
## **David Walker FCA**
Langton House 124 Acomb Road Holgate York YO24 4EY
Dated: 9 September 2022
- 4 -
## **FRIENDS OF BETHLEHEM UK**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
26,031
2,700
Charitable activities
**4**
5,033
-
**Total income**
31,064
2,700
**Expenditure on:**
Raising funds
**5**
31
-
Charitable activities
**6**
28,895
-
**Total expenditure**
28,926
-
**Net income for the year/**
**Net movement in funds**
2,138
2,700
Fund balances at 1 November 2020
4,423
-
**Fund balances at 31 October 2021**
6,561
2,700|**Total Unrestricted**
**funds**
**2021**
**2020**
**£**
**£**
28,731
15,679
5,033
-
33,764
15,679
31
-
28,895
11,256
28,926
11,256
4,838
4,423
4,423
-
9,261
4,423|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 5 -
## **FRIENDS OF BETHLEHEM UK**
## **BALANCE SHEET**
## _**AS AT 31 OCTOBER 2021**_
|**Notes**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Income funds**
Restricted funds
**15**
Unrestricted funds|**2021**
**£**
-
13,067
13,067
(3,806)|**£**
9,261
2,700
6,561
9,261|**2020**
**£**
5,240
4,703
9,943
(5,520)|**£**
4,423
-
4,423
4,423|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 9 September 2022
M Scott **Trustee**
- 6 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **1 Accounting policies**
## **Charity information**
Friends of Bethlehem UK is a Charitable Incorporated Organisation.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's constitution , the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 7 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.7 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
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.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans 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 p aymen ts 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
- 8 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.8 Creditors and provisions**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
18,531
-
Grants receivable
7,500
2,700
26,031
2,700
**Donations and gifts**
supporting Al Rowwad
14,793
-
supporting Bethlehem Cultural Festival
2,238
-
Amos Trust supporting Bethlehem Cultural Festival
1,500
-
18,531
-
**Grants receivable for core activities**
British Council
-
-
Van Neste
7,500
-
University of Strathclyde
-
2,700
7,500
2,700|**Total**Unrestricted
funds
**2021**
2020
**£**
£
18,531
10,439
10,200
5,240
28,731
15,679
14,793
10,439
2,238
-
1,500
-
18,531
10,439
-
5,240
7,500
-
2,700
-
10,200
5,240|
|---|---|
- 9 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **4 Charitable activities**
|Bethlehem Cultural Festival ticket sales
**Raising funds**
Fundraising and publicity
Other fundraising costs
**Charitable activities**
**Alrowwad**
**Cultural &**
**Arts Society**
**Bethlehem**
**Cultural**
**Festival**
**2021**
**2021**
**£**
**£**
Production Costs
-
2,140
Grant funding of activities
(see note 8)
14,109
3,289
Share of support costs
(see note 9)
338
8,299
Share of governance costs
(see note 9)
360
360
14,807
14,088|**Bethlehem**
**Cultural**
**Festival**
**2021**
**£**
5,033
**Unrestricted**
**funds**
**2021**
**£**
31
31
**Total**
**2021**
**Alrowwad**
**Cultural &**
**Arts Society**
**Bethlehem**
**Cultural**
**Festival**
**2020**
**2020**
**£**
**£**
**£**
2,140
-
3,270
17,398
7,773
-
8,637
213
-
720
-
-
28,895
7,986
3,270|**2020**
**£**
-
Total
2020
£
-
-
**Total**
**2020**
**£**
3,270
7,773
213
-
11,256|
|---|---|---|
## **5 Raising funds**
## **6 Charitable activities**
- 10 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **7 Description of charitable activities**
## Alrowwad Cultural & Arts Society
Supporting Alrowwad Cultural & Arts Society in Aida refugee camp, Bethlehem, as well as other cultural institutions and artists in Bethlehem and Palestine.
## Bethlehem Cultural Festival
Producing the Bethlehem Cultural Festival of arts and culture of the Eastern Mediterranean and other activities organised throughout the year.
## **8 Grants payable**
||**Alrowwad**|**Bethlehem**|
Alrowwad|
|---|---|---|---|
||**Cultural &**|**Cultural**|
Cultural &|
||**Arts Society**|**Festival**|
Arts Society|
||**2021**|**2021**|
2020|
||**£**|**£**|
£|
|Grants to institutions (4 grants):||||
|Alrowwad|14,109|-|
7,773|
|Bethlehem Cultural Festival|-|3,289|
-|
||14,109|3,289|
7,773|
-
## **9 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Office costs
597
-
PR and marketing
2,400
-
Website costs
5,015
-
Travel and subsistence
325
-
Bank charges
300
-
Accountancy
-
720
8,637
720
Analysed between
Charitable activities
8,637
720|**2021**
Support
costs
Governance
costs
**£**
£
£
597
7
-
2,400
-
-
5,015
-
-
325
-
-
300
206
-
720
-
-
9,357
213
-
9,357
213
-|2020
£
7
-
-
-
206
-
213
213|
|---|---|---|
Governance costs includes payments to the auditors of £ 720 (2020- £ nil ) for independent examination fees.
- 11 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **11 Employees**
The average monthly number of employees during the year was:
|||**2021**|**2020**|
|---|---|---|---|
|||**Number**|**Number**|
||Total|-|-|
||There were no employees whose annual remuneration was more than £60,000.|||
|**12**|**Debtors**|||
|||**2021**|**2020**|
||**Amounts falling due within one year:**|**£**|**£**|
||Trade debtors|-|5,240|
|**13**|**Loans and overdrafts**|||
|||**2021**|**2020**|
|||**£**|**£**|
||Other loans|3,000|5,520|
||Payable within one year|3,000|5,520|
|**14**|**Creditors: amounts falling due within one year**|||
|||**2021**|**2020**|
|||**£**|**£**|
||Borrowings|3,000|5,520|
||Trade creditors|86|-|
||Accruals and deferred income|720|-|
|||3,806|5,520|
- 12 -
## **FRIENDS OF BETHLEHEM UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2021**_
## **15 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||**Movement**||**Movement**||
|---|---|---|---|---|
||**in funds**||**in funds**||
||**Incoming**|**Balance at**|**Incoming**|**Balance at**|
||**resources**|**1 November**|**resources**|**31 October**|
|||**2020**||**2021**|
||**£**|**£**|
**£**|**£**|
|Arabic language project|-|-|
2,700|2,700|
Grants were received for an Arabic language project for 2021 Bethlehem Cultural Festival in association with Scotland’s National Centre for Languages.
## **16 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31 October 2021 are
represented by:
Current assets/(liabilities)
6,561
2,700
6,561
2,700|**Total**Unrestricted
funds
**2021**
2020
**£**
£
9,261
4,423
9,261
4,423|
|---|---|
## **17 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none) .
- 13 -