**Mona Hatoum Foundation** Charity Registration No:1190151
**Trustees' report and audited accounts**
**For the period from 29 June 2020 to 31 March 2021**
## **Mona Hatoum Foundation**
## **Legal and administrative information**
|**Trustees**|Mona Hatoum|
|---|---|
||George Richard Riley|
||Dr Andrea Hanne Lisa Schlieker|
||Timothy Adam Maxwell|
||Gerald Glen Collins|
|**Charity number**|1190151|
|**Principal address**|70-72 Kingsland Road|
||London|
||E2 8DP|
|**Auditor**|Nexia Smith & Williamson|
||Chartered Accountants|
||Onslow House|
||Onslow Street|
||Guildford|
||Surrey|
||GU1 4TL|
## **Mona Hatoum Foundation**
## **Contents**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Balance sheet|8|
|Cash flow statement|9|
|Notes to the accounts|10 - 13|
**Trustees' report for the period ended 31 March 2021**
## **Mona Hatoum Foundation**
The trustees present their report and accounts for the period from incorporation to 31 March 2021.
The accounts comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019).
## **Structure, governance and management**
## _**Governance**_
The charity was incorporated on 29 June 2020. The charity is a charitable incorporated organisation and is registered with the Charity Commission, charity number 1190151.
## _**Trustees**_
The trustees who served during the period were: Mona Hatoum (appointed 1 June 2020) George Richard Riley (appointed 1 June 2020) Dr Andrea Hanna Lisa Schlieker (appointed 1 June 2020) Timothy Adam Maxwell (appointed 1 June 2020) Gerald Glen Collins (appointed 1 June 2020)
There must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the charity trustees, or appoint a new charity trustee. There is no maximum number of charity trustees that may be appointed to the CIO. Apart from the first charity trustees, every trustee must be appointed by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
## _**Risk factors**_
The trustees have reviewed the risks to the charity's assets and income and are satisfied that adequate controls are in place.
## _**Objects and activities**_
The charity's objects are to further the education of the public in the appreciation of art and in particular, but not limited to, contemporary art, in such way and in such manner as shall be exclusively charitable, including preserving and documenting the collections, archives and works created by Mona Hatoum and other artists for the public benefit and for public exhibitions of the same; and such other charitable purposes as the trustees of the charity may in their absolute discretion determine.
The Foundation provides yearly bursaries to three Central Saints Martins postgraduate students, safe keeps and conserves the artworks belonging to the Foundation, makes loans of the artworks to public institutions in the UK and abroad and maintains the artist's physical archive and aims to digitise it.
## _**Public benefit**_
The trustees confirm that they have paid due regard to the Charity Commission's guidance on public benefit.
- 1 -
## **Mona Hatoum Foundation**
## **Trustees' report for the period ended 31 March 2021**
## **Achievements, performance and financial review**
## _**Financial review**_
The financial activities are summarised on page 7 of the accounts. During the period the charity received donations of £275,965 and it was gifted assets valued at £3,162,782. The gifted assets comprised heritage assets valued at £1,830,107 and artwork donated to the Foundation for resale with a value of £1,332,675. Income for the year also includes Gift Aid to be claimed on the donations of £62,500 and proceeds due from arts sales totalling £52,264.
Three grants were made during the period in furtherance of the charity's objects, valued at £23,150.
## _**Reserves policy**_
It is the policy of the charity to hold reserves which are sufficient to allow future grants and donations to be made at the discretion of the trustees. At 31 March 2021, total reserves held amounted to £3,444,612.
- 2 -
## **Mona Hatoum Foundation**
## **Trustees' report for the period ended 31 March 2021**
## **Trustees' responsibilities**
The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and regulations.
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting standards and applicable regulations). Under that law the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the income and expenditure of the trustees for that year.
In preparing the accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP;
- make judgements 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 accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which are sufficient to show and explain the trustees' transcations and disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity's governing document. 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.
Signed on behalf of the board of trustees:
## mona hatoum
mona hatoum (Feb 10, 2022 14:01 GMT)
.............................
## **Mona Hatoum**
Trustee
## 10/02/2022
Date: ......................
- 3 -
## **Mona Hatoum Foundation**
## **Independent auditor's report to the trustees of the Mona Hatoum Foundation**
## **Opinion**
We have audited the accounts of the Mona Hatoum Foundation (the ‘charity’) for the period ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and the notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the accounts:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its income and expenditure for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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 other information comprises the information included in Trustees’ report and audited accounts, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ report and audited accounts. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts 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.
- 4 -
## **Mona Hatoum Foundation**
## **Independent auditor's report to the trustees of the Mona Hatoum Foundation**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- sufficient accounting records have not been kept; or
- the information given in the accounts is inconsistent in any material respect with the trustees’ report; or
- the accounts are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees’ Responsibilities Statement set out on page 3, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditors' responsibilities for the audit of accounts**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
We obtained a general understanding of the charity’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations and the entity’s policies and procedures regarding compliance.
We understand that the charity complies with the framework through:
- Outsourcing accounts preparation and tax complaince to external experts
- Subscribing to relevant updates from external experts, and making changes to internal prodcedures and controls as necessary
In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the charity’s ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the charity’s activities:
- the Charities Act 2011
- 5 -
## **Mona Hatoum Foundation**
## **Independent auditor's report to the trustees of the Mona Hatoum Foundation**
Based on our understanding we performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:
- making enquiries of management and those charged with governance to understand their awareness of any non-compliance of laws and regulations
- inquiring about the policies that have been established to prevent non-compliance with laws and regulations by officers of the charity
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s accounts to material misstatement, including how fraud might occur. The areas identified in this discussion were:
- Manipulation of the accounts via fraudulent journal entries
These areas were communicated to the other members of the engagement team not present at the discussion. The procedures we carried out to gain evidence in the above areas included:
- Testing journal entries in the accounts
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## Nexia Smith & Williamson
Nexia Smith & Williamson (Feb 10, 2022 14:13 GMT)
## **Nexia Smith & Williamson**
Chartered Accountants Statutory Auditor Onslow House Onslow Street Guildford Surrey GU1 4TL
Date: 10/02/2022
Nexia Smith & Williamson is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 6 -
## **Mona Hatoum Foundation**
## **Statement of financial activities for the period from 29 June 2020 to 31 March 2021**
|**Note**
**Income:**
Donations and gifts of heritage assets
**2**
Income from donated artwork for sale
**3**
**Total**
**Expenditure:**
Charitable activities - grants
**5**
Charitable activities - support costs
**6**
**Total**
**4**
**Net movement in funds**
**Total reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**2021**
**£**
**2,168,572**
**1,343,683**|
|---|---|
||**3,512,255**|
||**23,150**
**44,493**|
||**67,643**|
||**3,444,612**
**-**|
||**3,444,612**|
All income and expenditure derives from continuing activities.
- 7 -
## **Mona Hatoum Foundation**
## **Balance sheet as at 31 March 2021**
|**Notes**
**Fixed assets**
Heritage assets
**9**
**Current assets**
Debtors
**10**
Stock of artwork
**11**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**12**
**Net current assets**
**Net assets**
**Income funds**
Unrestricted funds|**£**
**98,527**
**1,308,525**
**239,703**
**1,646,755**
**(14,750)**|**2021**
**£**
**1,812,607**|
|---|---|---|
|||**1,812,607**
**1,632,005**|
|||**3,444,612**|
|||**3,444,612**|
|||**3,444,612**|
The accounts were approved by the board, authorised for issue and signed on their behalf by:
mona hatoum mona hatoum (Feb 10, 2022 14:01 GMT) .............................. **Mona Hatoum** Trustee 10/02/2022 Date: ..............................
- 8 -
## **Mona Hatoum Foundation**
## **Cash flow statement for the period ended 31 March 2021**
||**2021**|
|---|---|
||**£**|
|**Net movement in funds (as per Statement of financial activities)**|**3,444,612**|
|Increase in creditors|**14,750**|
|Increase in debtors|**(98,527)**|
|Donations gifted by way of heritage assets|**(1,812,607)**|
|Increase in stock of artwork|**(1,308,525)**|
|**Increase in cash**|**239,703**|
|**Cash and cash equivalents at the beginning of the period**|**-**|
|**Cash and cash equivalents at the end of the period**|**239,703**|
|**Analysis of net funds**|**At 29 June**|**Cash At 31 March**|**Cash At 31 March**|
|---|---|---|---|
||**2020**|**flows**|**2021**|
|Cash at bank and in hand|**-**|**239,703**|**239,703**|
- 9 -
## **Mona Hatoum Foundation**
## **Notes to the accounts for the period ended 31 March 2021**
## **1 Accounting policies**
## **1.1 General information**
The Mona Hatoum Foundation is a charitable incorporated organisation, registered with the Charity Commission in England & Wales (No. 1190151). The address of the registered office is 70-72 Kingsland Road, London, E2 8DP.
## **1.2 Basis of preparation**
The accounts 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).
The accounts have been prepared under the historical cost convention, as modified to include gifts to the Foundation at fair value on the date they were gifted.
The trustees confirm that the charity is a public benefit entity as defined by FRS 102.
The charity's presentational currency is GBP.
## **1.3 Going concern**
The trustees have reviewed the financial position of the Foundation and consider that the going concern basis of accounting is appropriate. There are no material uncertainties in relation to the going concern status of the Foundation.
## **1.4 Income**
Donations and gifts are credited to the Statement of financial activities in the period in which the charity becomes entitled to the respective asset, receipt is probable and the value can be measured.
## **1.5 Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates.
Grants payable are payments made to third parties in furtherance of the charitable objects of the charity. The grants are accounted for where the trustees have paid or committed to the grant without condition.
## **1.6 Heritage assets**
The Foundation's heritage assets comprise artwork by Mona Hatoum and have been included at fair value as determined by the trustees.
The heritage assets were acquired by way of gifts from Mona Hatoum. The trustees' policy is to retain, manage and preserve these heritage assets for the benefit of the public and future generations.
Heritage assets are considered to have an indefinite useful life and have therefore been capitalised at their original valuation when gifted to the Foundation, and are not depreciated.
## **1.7 Stock of artwork**
Stock of artwork is included in the accounts initially at fair value as determined by the trustees and subsequently at the lower of that initial value and net realisable value.
- 10 -
## **Mona Hatoum Foundation**
## **Notes to the accounts for the period ended 31 March 2021**
## **1 Accounting policies**
## **(Continued)**
## **1.8 Key sources of estimation uncertainty**
Determining the fair value of artworks received as gifts requires the trustees to use estimates of market value. The market value is decided in consultation with Mona Hatoum and third party galleries, by comparing each individual piece of art to similar works that have previously been sold by a gallery or at auction.
## **2 Donations and gifts of heritage assets**
|Cash donations
Donations in kind
Gift Aid recoverable
Heritage assets donated
**3**
**Income from donated artwork for sale**
Donations of artwork for resale
Sale of donated artwork
Value of artwork sold
Associated cost of sales
**4**
**Expenditure**
**Charitable activities - grants**
Grants payable (see note 5)
**Charitable activities - support costs**
Support costs (see note 6)|**2021**
**£**
**250,000**
**25,965**
**62,500**
**1,830,107**
**2,168,572**
**2021**
**£**
**1,332,675**
**52,264**
**(21,000)**
**(20,256)**
**1,343,683**
**2021**
**£**
**23,150**
**44,493**
**67,643**|
|---|---|
- 11 -
## **Mona Hatoum Foundation**
## **Notes to the accounts for the period ended 31 March 2021**
|**5**|**Grants payable**||
|---|---|---|
|||**2021**|
|||**£**|
||Grants to institutions:||
||Book Aid International|**2,500**|
||Lebanese American University|**3,150**|
||Massachusetts Museum of Contemporary Art|**17,500**|
|||**23,150**|
||**Reconciliation of grants payable**||
||Grants payable for the year|**23,150**|
||Grants paid during the year|**(23,150)**|
||**Commitments at 31 March 2021**|**-**|
|**6**|**Support costs**||
|||**2021**|
|||**£**|
||Accountancy fees|**950**|
||Audit fees|**13,800**|
||Insurance|**1,340**|
||Storage costs|**2,374**|
||Rent|**9,000**|
||Wages & salaries|**16,965**|
||Bank charges|**64**|
|||**44,493**|
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the period.
## **8 Employees**
There were no employees during the period.
- 12 -
## **Mona Hatoum Foundation**
## **Notes to the accounts for the period ended 31 March 2021**
|**9**
**Heritage assets**
Carrying value at 29 June 2020
Assets gifted at trustees' valuation
Disposals - grant to Mass MoCA (note 5)
Carrying value at 31 March 2021
**10**
**Debtors**
Gift Aid recoverable
Insurance prepaid
Proceeds due from art sales
**11**
**Stock**
Donated artwork at trustees' valuation
**12**
**Creditors**
Accruals|**2021**
**£**
**-**
**1,830,107**
**(17,500)**
**1,812,607**
**2021**
**£**
**62,500**
**4,019**
**32,008**
**98,527**
**2021**
**£**
**1,308,525**
**1,308,525**
**2021**
**£**
**14,750**
**14,750**|
|---|---|
## **13 Related parties**
During the period, cash donations of £250,000 were received from Mona Hatoum. There were donations in kind of £25,965 and non cash donations of artwork received during the period at a value determined by the trustees of £3,162,782 from companies controlled by Mona Hatoum.
- 13 -