**Registered number: 10039687 Charity number: 1203840** ## **THE LOTUS FLOWER** ## **(A CHARITABLE COMPANY LIMITED BY GUARANTEE)** **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2024** ## **THE LOTUS FLOWER** ## **COMPANY INFORMATION** **TRUSTEES** Peri-Khan Aqrawi-Whitcomb Sayran Barzani Pegah Manteghi Daniele Mazzone Ruth Szabo Khalastchi (Chair) Hannah Wheatley (Secretary) **COMPANY NUMBER** 10039687 **CHARITY NUMBER** 1203840 **REGISTERED OFFICE** 28 White Rock Hastings TN34 1JY **WEBSITE** www.thelotusflower.org.uk **INTERNATIONAL REGISTRATIONS** Kurdistan no. 4054-F; Iraq no. 1O2109035 **LEADERSHIP TEAM** Taban Shoresh OBE (Founder & CEO) **INDEPENDENT EXAMINERS** Triple Bottom Line Accounting Ltd The Enterprises Centre University of East Anglia Norwich NR4 7TJ **Bankers** HSBC Hastings Page | 2 ## **THE LOTUS FLOWER** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|4 - 9| |CEO’s report|10| |Independent Examiner’s Report|11| |Statement of financial activities|12| |Balance sheet|13| |Notes to the financial statements|14 - 27| Page | 3 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2024** The trustees present their report with the financial statements of The Lotus Flower for the year ended 31 December 2024. ## **Objectives and activities** - **Charitable purposes (per governing document):** Provide humanitarian relief to displaced women and girls by offering safe shelter, health and wellbeing support, and education. - **Vision and mission:** Vision: support women and girls build sustainable futures beyond conflict and displacement. Mission: help vulnerable women and girls to heal, learn and grow. - **Strategy to achieve these aims:** Operate safe centres and mobile teams; deliver livelihoods and skills training, small-business support, educational classes, mental-health therapy; raise awareness on women’s rights and GBV; pilot UK programmes via a new hub. - **Main activities undertaken for the public benefit:** Protection and wellbeing services, education, livelihoods and enterprise, advocacy and community engagement in the Kurdistan Region of Iraq and in the UK. - **Beneficiaries:** Displaced and conflict-affected women and girls, and their families, primarily in the Kurdistan Region of Iraq and in the UK communities where we operate. - **Grant-making policy:** The Lotus Flower UK funds charitable programmes delivered by its separately registered partner, The Lotus Flower Iraq. Both organisations share the same charitable objectives and operate under a common brand. Grants are governed by a written agreement covering approved purposes, budgets, reporting requirements and oversight. UK trustees retain overall responsibility for ensuring funds are applied for charitable purposes and receive regular financial and narrative reports from the Iraq team. ## **Public benefit statement** The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit in planning the charity’s activities and in reviewing the extent to which those activities further the charity’s purposes for the public benefit. Page | 4 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **Achievements and Performance – The Lotus Flower UK** ## **Overview** During 2024, The Lotus Flower UK continued to raise and manage funds to deliver programmes supporting displaced and conflict-affected women and girls through its partner organisation, The Lotus Flower Iraq. Together, the two entities form the Lotus Flower Network, sharing the same mission, leadership and brand. The UK charity focuses on fundraising, governance and strategic oversight, while The Lotus Flower Iraq is responsible for programme implementation on the ground across the Kurdistan Region of Iraq (KRI). Throughout 2024, the organisation reached over 14,000 individuals, strengthened partnerships and achieved a key milestone with the opening of its UK Hub and the launch of direct UK-based programming for the first time. ## **UK-Based Programmes** The Lotus Flower UK began delivering activities directly within the UK in 2024, broadening its mission to include refugee and displaced women rebuilding their lives in the UK. ## **Key highlights:** - **Swimming Sisters UK (November 2024)** – Supported by Ancient + Brave, providing swimming and wellbeing support to 72 women in Hastings, building on the successful model first launched in Iraq. - **UK Hub** – Opened in 2024, bringing The Lotus Flower’s ethos of empowerment, healing and community-building to local contexts. Talks and workshops reached 198 community members. - **Partnership Development** – Collaborated with The Links Project and Hastings Resettlement Project to develop wellbeing, integration and awareness initiatives for refugee and asylumseeking women in 2025. These initiatives demonstrate that The Lotus Flower’s mission remains both globally relevant and locally impactful. ## **Wider Impact – The Lotus Flower Network (Iraq)** Through our sister organisation in the Kurdistan Region of Iraq, over 14,107 women, girls and young people benefited in 2024 from programmes in protection, education, livelihoods and wellbeing. £150,242 raised in the UK was granted to The Lotus Flower Iraq to support projects aligned to our charitable objectives, alongside additional local and international grants secured independently by the Iraq team. Page | 5 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** Headline achievements included enhanced psychosocial support, women’s business incubation, and community-led awareness on GBV and child protection. UK trustees receive reports and monitor due diligence to ensure funds are used responsibly. These locally funded projects are not included in the UK charity’s financial statements but form a vital part of the Lotus Flower Network’s collective impact. ## **Global Advocacy and Awareness** Advocacy and public engagement remained central to The Lotus Flower’s mission, with representation at global forums including TEDxMontmartre, UNHCR Consultations, and CSW68, and recognition through multiple awards including an OBE for the CEO and “Charity of the Year” at the IMpower FundForum. This work strengthened visibility, partnerships and donor engagement, raising awareness of women’s rights in conflict zones. ## **Regional and Global Context** The year presented significant challenges, including the closure of IDP camps, proposed legal changes affecting women’s rights, and a shifting humanitarian landscape following the withdrawal of major actors. These factors underscore the importance of The Lotus Flower’s locally led model and adaptive approach. ## **Looking Ahead – 2025** In 2025, The Lotus Flower UK will: - Focus UK efforts on **peacebuilding and fundraising** while maintaining delivery in Iraq. - **Strengthen partnerships** and diversify fundraising to sustain programmes and manage key risks. - **Expand UK-based activities** around wellbeing, integration and awareness. - **Monitor key risks** , including funding concentration, security and delivery disruption, to protect impact. Despite global and regional challenges, The Lotus Flower remains deeply committed to its mission — empowering displaced women and girls through local leadership, partnership and innovation. Page | 6 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **Financial review** - **Financial result for the year:** - Total income received for 2024 was £405,525, (2023: £395,074). Total expenditure totalled £425,110, (2023: £337,587). Net movement in funds was a deficit of £19,585, (2023: surplus £57,487) resulting in year-end funds of £82,935, (2023: £102,520) of which £64,528 were restricted and £18,407 were unrestricted, (2023: £92,686 restricted, £9,834 unrestricted). ## **Principal funding sources:** • Grants and donations of £405,525 are broken down as follows; Corporate Organisations £68,208; Trusts and Foundations £322,500; Private Donations £14,817 - ## **Reserves policy:** The charity holds reserves to manage income volatility and working-capital needs. “Free reserves” are unrestricted funds excluding designated amounts, the net book value of fixed assets, and other non-liquid items. The board targets three months of core operating costs (approximately £65,000). At 31 December 2024, free reserves were £18,407 (1 month), below target. This reflects timing differences on income and expenditure and the use of unrestricted funds to support core operations. Unrestricted income due early in 2025 is expected to increase the unrestricted reserves position. The reserves policy is monitored quarterly and reviewed at least annually. - ## **Going concern:** The trustees have reviewed forecasts and liquidity and consider the charity a going concern for at least 12 months from the date of approval. No material uncertainties - **External scrutiny:** The trustees determined that an independent examination, not an audit, is required for the year ended 31 December 2024 under the statutory thresholds. - **Related party transactions:** Grants to The Lotus Flower Iraq £150,242; year-end balance £Nil due to that NGO. See related-party note. - ## **Principal risks and uncertainties:** Funding and liquidity. Risk of shortfalls as grants end. Controls: monthly cash-flow, 3–4 months reserves, pipeline reviews. Operating environment (KRI/Iraq). Access, security, camp changes. Controls: context monitoring, security protocols, flexible community delivery. Safeguarding and PSEA. Harm to beneficiaries or staff. Controls: policy, vetting, training, reporting pathways, survivor-centred response. Compliance (sanctions/AML, data protection). Breach risk. Controls: partner due diligence, sanctions/PEP screening, dual approvals, DPIA and retention rules. Partner delivery and fraud. Mis-spend or weak evidence. Controls: grant agreements, milestone payments, spot checks, segregation of duties. Key person and capacity. Dependency on small teams. Controls: delegation matrix, succession planning, cross-training. FX and banking. GBP–USD–IQD volatility and transfer routes. Controls: scheduled conversions, multiple providers, budget buffers. Page | 7 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **Structure, governance and management** - **Legal structure:** Charitable company limited by guarantee (company no. 10039687). Memorandum and Articles incorporated 3 March 2016; updated Articles adopted by special resolution 18 May 2023. Registered as a charity in England and Wales on 4 July 2023. - **Trustee appointment, induction and training:** Trustees are appointed from among our members, following the constitution and Board approval. New trustees receive a concise induction (governing document, latest accounts, _The Essential Trustee_ ) and meet the Chair/CEO to understand our work in the UK and Iraq. We encourage ongoing learning through sector briefings and targeted training to keep governance sharp and practical. - **Decision-making and delegation:** Decisions are made by consensus of all trustees present and voting at Board meetings. The Board meets regularly to review strategy, oversee finances, and monitor the charity’s activities. Day-to-day management is delegated to the CEO and senior team, with trustees retaining overall responsibility and oversight. - **Pay policy for senior staff:** Senior roles sit within published salary bands aligned to local labour markets and donor context, with modest annual uplifts only where funding and donor approvals allow. Oversight is formal: appointments/acting-up pay require Regional Director sign-off, HR documentation, and—where relevant—donor approval for reassignments. - **Related parties and conflicts of interest:** The Lotus Flower Iraq is a separately registered NGO. The UK charity does not control it. Trustees and staff with roles there declare interests and are recused from decisions. Related-party grants and services are approved under the conflicts policy. See the related-party note in the financial statements. - **Safeguarding and serious incident reporting:** Survivor-centred framework: code of conduct; safer recruitment/DBS; annual training; named leads; partner due diligence; clear routes in KRI and UK. Concerns logged and escalated within 24 hours; reportable incidents notified to the Charity Commission. 2024: 0 reportable incidents. - **Data protection:** - UK GDPR/DPA 2018 compliant. Lawful basis, minimisation and retention in place. MFA/encryption used. DPIAs for higher-risk processing and processor contracts in place. Rights answered within one month. Breach response incl. 72-hour ICO reporting where required. Safeguards for transfers to KRI/Iraq. Page | 8 ## **THE LOTUS FLOWER** ## **TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **Plans for future periods** ## **• Next year priorities:** Deliver core protection, wellbeing and livelihoods programmes in KRI and the UK. Strengthen organisational resilience, safeguarding and compliance. Improve monitoring, evaluation and learning to evidence impact. Measures: people reached, sessions delivered, satisfaction, safeguarding incidents, and basic cost per beneficiary. ## **• Pipeline funding and capacity:** Secured income 2025: £500,000. Targeted: £50,000 in active proposals and renewals. Scenarios: Base maintain current scale; Upside expand cohorts and grants; Downside protect core services and pause non core pilots within the reserves policy. Capacity: modest hires and tooling subject to funding. ## **Funds held as custodian trustee on behalf of others.** The charity held no funds or assets as custodian trustee for others during the year ## **Statement of trustees’ responsibilities** The trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards and for safeguarding the assets of the charity. The trustees are satisfied that they have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the charity’s auditor/independent examiner is aware of that information. ## **Approval** Approved by the trustees on 24 October 2025 and signed on their behalf by: Ruth Szabo Khalastchi Chair of trustees Hannah Wheatley Secretary Page | 9 ## **THE LOTUS FLOWER** ## **CEO’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024** ## **Overview** 2024 was a year of growth, resilience and reflection for The Lotus Flower. We strengthened our governance, diversified our funding base, and expanded our reach to over 14,000 women and girls through our programmes in Iraq and the UK. Despite operating in an increasingly complex humanitarian environment, our focus on local leadership, women’s empowerment, and communitydriven change remained unwavering. ## **Programme Delivery** In Iraq, our team continued to provide life-changing support for displaced and conflict-affected women and girls. Our work spanned protection, wellbeing, education, and livelihoods — helping communities to rebuild with dignity and hope. Across all centres, the Lotus Flower model continues to demonstrate that when women are given the tools and space to lead, entire communities benefit. In the UK, 2024 marked the launch of our first direct delivery programmes. Our new UK Hub in Hastings and the Swimming Sisters UK initiative brought The Lotus Flower’s ethos of empowerment and healing to refugee and asylum-seeking women rebuilding their lives here. These early programmes laid the groundwork for a stronger UK presence, rooted in inclusion, wellbeing, and peacebuilding. ## **Partnerships and Advocacy** Partnerships continued to be central to our impact — from long-standing collaborations with UN agencies and INGOs in Iraq to new UK-based community and corporate partners. Advocacy remained a defining thread, with The Lotus Flower contributing to global discussions at UNHCR Consultations, CSW68, and TEDx events, while our CEO was honoured with an OBE for services to refugees. ## **Challenges and Context** We navigated significant challenges in 2024: the closure of IDP camps in Iraq, uncertainty in the humanitarian funding landscape, and the growing polarisation seen both regionally and in the UK. These realities reinforced the need for locally led, flexible approaches and ongoing investment in women’s leadership and resilience. ## **Looking Ahead** In 2025, The Lotus Flower will focus on strengthening peacebuilding and fundraising within the UK, sustaining delivery in Iraq, and deepening partnerships that protect and empower displaced women and girls. We will continue to manage risks proactively, diversify funding streams, and uphold strong governance and accountability across the organisation. I am deeply proud of what our teams, trustees and partners have achieved together. Our work continues to prove that when women lead recovery, communities thrive. I also want to extend my heartfelt thanks to our donors and supporters — from foundations and corporate partners to individual contributors — whose belief in our mission makes this possible. Your continued generosity and trust enable The Lotus Flower to empower women and girls to rebuild their lives with dignity, purpose and hope for the future. Taban Shoresh Chief Executive Officer The Lotus Flower Page | 10 ## **THE LOTUS FLOWER** ## **INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024** I report to the Directors on my examination of the accounts of the charitable company for the year ended 31 December 2024. ## **Responsibilities and basis of report** As the charity Trustees, who are also 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 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 examiners 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 Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the 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 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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. Peter Ellington FAIA Triple Bottom Line Accounting Limited The Enterprise Centre Norwich NR4 7TJ Page | 11 ## **THE LOTUS FLOWER** ## **STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2024** |**Notes**
**Income from:**
Grants and donations
4
**Total income**
**Expenditure on:**
Charitable objectives
5
Governance costs
6
**Total expenditure**
**Net income / (expenditure)**
**before tax for the year**
Taxation
**Net income / (expenditure)**
**after tax for the year**
Transfers between funds
11
**Net income / (expenditure)**
**and net movement in funds**
**for the year**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Fund**
**Restricted**
**Fund**
**Total**
**Funds**
**2024**
**Total**
**Funds**
**2023R**
**£**
**£**
**£**
**£**
75,800
329,725
405,525
405,074| |---|---| ||75,800
329,725
405,525
405,074
(64,561)
(357,883)
(422,444)
(327,501)
(2,666)
-
(2,666)
(10,086)| ||(67,227)
(357,883)
(425,110)
(337,587)
8,573
(28,158)
(19,585)
67,487
-
-
-
-
8,573
(28,158)
(19,585)
67,487
-
-
-
-| ||8,573
(28,158)
(19,585)
67,487
9,834
92,686
102,520
35,033| ||18,407
64,528
82,935
102,520| The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended relate to continuing activities. The notes on pages 14 to 27 form part of these financial statements. Page | 12 ## **THE LOTUS FLOWER** ## **(REGISTERED NUMBER: 10039687) BALANCE SHEET** ## **AS AT 31 DECEMBER 2024** |**Notes**
**Total Fixed Assets**
8
**Current Assets**
Debtors
9
Cash at bank and in hand
**Total Current Assets**
**Liabilities**
Creditors falling due within one year
10
**Net Current Assets/(Liabilities)**
**Total Assets less Current Liabilities**
**Net (Liabilities)/Assets**
**Charity Funds**
Restricted Income Funds
11
Unrestricted Funds – General Funds
11
**Total Charity Funds**|**2024**
**£**
**£**
2,375
177
97,747
97,924
(17,364)
80,560
82,935
82,935
64,528
18,407
82,935|**2024**
**£**
**£**
2,375
177
97,747
97,924
(17,364)
80,560
82,935
82,935
64,528
18,407
82,935|**2023R**
**£**
**£**
3,166
1,311
115,452
116,763
(17,409)
99,354
102,520
102,520
53,644
48,876
102,520|**2023R**
**£**
**£**
3,166
1,311
115,452
116,763
(17,409)
99,354
102,520
102,520
53,644
48,876
102,520| |---|---|---|---|---| |||80,560||



99,354| ||97,924
(17,364)||116,763
(17,409)|| |||||| |||82,935||102,520| |||||| |||82,935||102,520| |||64,528
18,407||53,644
48,876| |||82,935||102,520| For the year ending 31 December 2024, the company was entitled to exemption under section 477 of the Companies Act 2006. 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 responsibility for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The financial statements were approved by the Trustees on 24 October 2025. Ruth Szabo Khalastchi Hannah Wheatley **Chair of trustees** **Secretary** The notes on pages 14 to 27 form part of these financial statements. Page | 13 ## **THE LOTUS FLOWER** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024** ## **1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## **BASIS OF PREPARATION** The charity constitutes a public benefit entity as defined by FRS 102. 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) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **CHANGE OF ACCOUNTING POLICY** ## **TRANSITION TO FRS 102 AND THE CHARITIES SORP (FRS 102)** This is the first year that the charity has presented its financial statements under FRS 102 and the Charities SORP (FRS 102). The date of transition was 1 January 2024. The prior year comparative figures for the year ended 31 December 2023 have been restated where necessary to comply with the requirements of FRS 102 and the Charities SORP (FRS 102). ## **Transition adjustments** In the prior year, certain grant income was recognised on a deferred basis and credited to income in line with related expenditure. Under FRS 102 and the Charities SORP (FRS 102), income is recognised when the charity is entitled to the income, receipt is probable, and the amount can be measured reliably. Restrictions on the purposes for which income may be applied do not affect the timing of income recognition, but are instead presented as part of restricted funds within reserves. Accordingly, deferred income balances that did not meet the definition of a liability have been reclassified as restricted funds. This has resulted in an increase in total funds at both the opening and closing balance sheet dates. ## **RECONCILIATION OF FUNDS** |Total funds previously reported
Reclassification of deferred income to restricted funds
Total funds restated|**1 Jan**
**2023R**
**31 Dec**
**2023R**
**£**
**£**
47,426
47,209
(12,393)
55,311| |---|---| ||35,033
102,520| Page | 14 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **RECONCILIATION OF NET INCOME/(EXPENDITURE)** |Net income previously reported
Release of deferred income recognised under SORP
Net income restated|**2023R**
**£**
55,094
12,393| |---|---| ||67,487| ## **INCOME RECOGNITION** Income is recognised in the Statement of Financial Activities when the charity is entitled to the income, receipt is probable, and the amount can be measured reliably. ## **DONATIONS AND LEGACIES** Donations are recognised when the charity has confirmation of the donation, the amount can be reliably measured, and there is probability of receipt. Legacies are recognised when probate has been granted, the executors have established that sufficient assets exist to settle all liabilities, and the amount can be reliably measured. ## **GRANTS RECEIVABLE** Income from grants is recognised when the charity has entitlement to the income, receipt is probable, and the amount can be reliably measured. Where a grant is subject to performance conditions, income is recognised only as those conditions are satisfied. Where a grant is received in advance of entitlement, it is carried forward as a liability (deferred income) until such time as the conditions are met. Where a grant has restrictions as to its use but no performance conditions, the income is recognised on entitlement and presented within restricted funds. ## **CHARITABLE ACTIVITIES** Income from charitable activities is recognised as earned as the related goods are provided or services delivered. ## **OTHER TRADING ACTIVITIES** Income from fundraising events and trading activities is recognised when earned. ## **INVESTMENT INCOME** Investment income is recognised when receivable and is allocated to restricted and unrestricted funds as appropriate. Page | 15 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ## **TAX RECLAIMS ON DONATIONS AND GIFTS** Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. ## **DONATED GOODS** Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so. The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution. Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'. Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the Statement of Financial Activities as incoming resources when receivable. Gifts in kind use by the charity are included in the Statement of Financial Activities as income from donations when receivable. ## **DONATED SERVICES AND FACILITIES** Donated services and facilities are included in the Statement of Financial Activities when received at the value of the gift to the charity provided the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the Statement of Financial Activities. ## **INVESTMENT GAINS AND LOSSES** This includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year. ## **EXPENDITURE AND LIABILITIES** ## **LIABILITY RECOGNITION** Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. Page | 16 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ## **GOVERNANCE AND SUPPORT COSTS** Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## **VOLUNTEER HELP** The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. ## **REDUNDANCY COST** The charity made no redundancy payments during the reporting period. ## **DEFERRED INCOME** No material item of deferred income has been included in the accounts. ## **CREDITORS** The charity has creditors which are measured at settlement amounts less any trade discounts. ## **PROVISIONS FOR LIABILITIES** A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. ## **FUND ACCOUNTING** ## **UNRESTRICTED FUNDS** These are funds available for use at the discretion of the trustees in furtherance of the charitable objectives and which have not been designated for other purposes. The trustees may designate part of the unrestricted funds to be used for particular purposes where this is considered to be helpful in furthering the charitable objects. ## **RESTRICTED FUNDS** Restricted funds are funds subject to specific trusts or restrictions imposed by the donor or grantor, or by the nature of the appeal through which they were raised. Expenditure that meets these restrictions is charged to the relevant fund. Where a grant has restrictions as to its purpose but does not impose performance conditions, the income is recognised on entitlement, and the balance is held within restricted funds until spent in accordance with the restriction. Page | 17 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **2 LEGAL STATUS OF THE CHARITY** The Lotus Flower is a private charitable company limited by guarantee in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are explained in the Directors’ Report. ## **3 NET INCOME / EXPENDITURE FOR THE YEAR** |Net income / (expenditure) is stated after charging / (crediting):
Depreciation
Independent Examiner’s Fee|**2024**
**2023R**
**£**
**£**
792 1,087
750
750| |---|---| ## **4 INCOME FROM GRANTS AND DONATIONS** During the period the trust received grants from the following: |Choose Love
Clarksons
Joffe Trust
Elleros
Migrate Art
TK Foundation
If Foundation
Big Give
Ancient & Brave
Zarok
CAF
Charities Trust
Private Donors
Other Donations
**Total income from grants and donations**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**2024**
**Total**
**2023R**
**£**
**£**
**£**
**£**
-
109,473
109,473
145,728
-
95,000
95,000
45,000
-
-
-
33,000
-
-
-
601
-
-
-
10,000
-
-
-
30,884
-
1,670
1,670
-
4,957
5000
9,957
-
-
60,000
60,000
-
-
1,670
-
-
10,880
-
10,880
-
1,024
-
1,024
-
2,000
-
2,000
20,572
56,939
56,912
175,521
119,289| |---|---| ||75,800
329,725
405,525
405,074| Page | 18 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **5 DIRECT CHARITABLE EXPENDITURE** |**Project Costs**
Project Running Costs
**Overhead Costs**
Overheads
Other costs
**Support costs**
Salaries
Finance costs
**Allocated as follows:**
Unrestricted Funds
Restricted Funds
**6**
**GOVERNANCE COSTS**
Financial and administration
Legal and professional
Independent Examiner’s Fee
**Allocated as follows:**
Unrestricted Funds
Restricted Funds||**2024**
**2023R**
**£**
**£**
150,242
153,627
16,718
8,426
123,807
109,051
131,677
56,397
-
-| |---|---|---| |||422,444
327,501| |||64,561
115,932
357,883
211,569| |||422,444
327,501| |||**2024**
**2023R**
**£**
**£**
1,916
9,336
-
-
750
750| |||2,666
10,086| |||2,666
10,086
-
-| |||2,666
10,086| Page | 19 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **7 STAFF COSTS** |The cost of employing staff was:
Wages and salaries
Employers’ Social security costs
Employers’ contribution to defined contribution pension scheme
he average number of employees during the year was 3 (2023: 2).
he parts of the charity in which the employees work:
Fundraising
Charitable Activities
Governance
Other
Total|**2024**
**2023R**
**£**
**£**
122,557
55,167
7,018
1,230
2,102
-| |---|---| ||131,677
56,397| ||**2024**
**2023R**
-
-
3
2
-
-
-
-| ||3
2| The average number of employees during the year was 3 (2023: 2). The parts of the charity in which the employees work: One employee received total employee benefits (excluding employer pension costs) of more than £60,000 The trustees neither received nor waived any remuneration during the current or previous year. The trustees did not have any expenses reimbursed during the current or previous year. The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the year was £2,102 (2023: £Nil). |**Allocated as follows:**
Unrestricted Funds
Restricted Funds|**2024**
**2023R**
**£**
**£**
1,770
-
332
-| |---|---| ||2,102
-| Page | 20 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **8 FIXED ASSETS** |**Cost**
As of 1 January 2024
Additions
Disposals
As of 31 December 2024
**Depreciation**
As of 1 January 2024
Charge for the year
As of 31 December 2024
**Net book value**
As of 31 December 2024
As of 31 December 2023|**Fixtures &**
**Fittings**
**£**
3,958
-
-
3,958
792
791
1,583
2,375
3,166|**Computer**
**Equipment**
**£**
526
-
-
526
526
-
526
-
-|**Total**
**£**
4,484
-
-| |---|---|---|---| ||||4,484| ||||1,318
791| ||||2,109| ||||2,375| ||||3,166| ## **9 DEBTORS** |Trade debtors
Other debtors|**2024**
**2023R**
**£**
**£**
-
200
177
1,111| |---|---| ||177
1,311| ## **10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade creditors
Other creditors
Taxation and social security|**2024**
**2023R**
**£**
**£**
1,929
12,250
-
364
15,435
4,795| |---|---| ||17,364
17,409| Page | 21 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **11 FUND RECONCILIATION 2024:** |Fund balance as at
31 December 2023
Movements in year
Transfer between funds
Fund balance as at
31 December 2024
**2023:**
Fund balance as at
31 December 2022
Movements in year
Transfer between funds
Fund balance as at
31 December 2023|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2024**
**Total**
**2023R**
**£**
**£**
**£**
**£**
9,834
92,686
102,520
35,033
8,573
(28,158)
(19,585)
67,487
-
-
-
-| |---|---| ||18,407
64,528
82,935
102,520| ||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023R**
**Total**
**2022R**
**£**
**£**
**£**
**£**
35.033
-
35,033
-
13,843
53,644
67,487
-
-
-| ||| ||48,876
53,644
102,520
35,033| Page | 22 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **12 ANALYSIS OF NET ASSETS BETWEEN FUNDS** ## **2024:** |Tangible fixed assets
Current asset less creditor|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2024**
**Total**
**2023R**
**£**
**£**
**£**
**£**
2,375
-
2,375
3,166
16,032
64,528
80,560
99,354| |---|---| ||18,407
64,528
82,935
102,520| ## **2023:** |Tangible fixed assets
Current asset less creditor|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023R**
**Total**
**2022R**
**£**
**£**
**£**
**£**
3,166
-
3,166
295
45,710
53,644
99,354
44,738| |---|---| ||48,876
53,644
102,520
45,033| Page | 23 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **13 MOVEMENT IN FUNDS** ## **2024:** |**Restricted**
Choose Love 2023-24
TK Foundation
Ancient & Brave
Choose Love 2024
Clarksons £50k
Clarksons £45k
Big Give
If Foundation
Zarok
**Unrestricted**
Donations
**Reserves**|**Fund**
**balance**
**1**
**January**
**2024R**
**Income**
**Expenditure**
**Transfers**
**in/(out)**
**general fund**
**Fund**
**balance**
**31 December**
**2024**
**£**
**£**
**£**
**£**
**£**
22,760
-
(22,760)
-
**-**
30,884
-
(30,884)
-
**-**
-
60,000
(12,000)
-
**48,000**
-
109,473
(109,476)
-
**-**
-
50,000
(50,000)
-
**-**
-
45,000
(45,000)
-
**-**
-
5,000
(5,000)
-
**-**
-
58,582
(42,054)
-
**16,528**
-
1,670
(1,670)
-
**-**| |---|---| ||53,644
329,725
(318,844)
-
**64,528**| ||| ||48,876
75,800
(106,266)
-
**18,407**| ||-
-
-
-
**-**| ||| ||**102,520**
**405,525**
**(425,110)**
**-**
**82,935**| Page | 24 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **MOVEMENT IN FUNDS (CONTINUED)** ## **Details of Restricted Funds** **Choose Love** Choose Love is funding to support core staff. The funding will continue to support key salaries for its CEO, Finance and Operations Manager, and Fundraising and Comms Manager. **TK Foundation** The TK Foundation Grant is to support the Swimming Sisters project for women and girls aged 18-25 from refugee and IDP communities to learn to swim for the first time. **Ancient & Brave** The project goal is to empower marginalised women and girls by teaching them essential swimming skills, ensuring their safety around water, enhancing their physical and mental well-being, and promoting social integration. **Clarksons** The Clarksons fund (£50k) 90% is to fund the running costs of the two centres in Kurdistan (two women’s camp-based centres in Rwanga and Essyan) and 10% to go towards the salary costs of the UK based Lotus Flower team. The Clarksons fund (£45k) is to provide funding for the Rise and Thrive project, Hastings Hub sustainability, and for the Women’s Business incubator programme in Kudistan. **Big Give** Rise and Thrive accelerates local economic growth by equipping undersupported community members with essential job-ready skills and empowering small businesses to expand their market reach, fostering sustainable economic stability and supporting an empowered Hastings community to grow and thrive. **If Foundation** Funding provided for the recruitment of the Partnership and Development Manager and delivery of external evaluation report **Zarok** Grant funding provided for funding Domiz Empowerment Center for Girls and Women Page | 25 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **MOVEMENT IN FUNDS (CONTINUED)** **2023:** |**Restricted**
Choose Love 2023-24
Clarksons
Choose Love 2023
Choose Love 2023
Joffe Trust
Elleros
Migrate Art
TK Foundation
**Unrestricted**
Donations
**Reserves**|**Fund**
**balance**
**January**
**2023**
**Income**
**Expenditure**
**Transfers**
**to/(from)**
**general fund**
**Fund**
**balance**
**December**
**2023**
**£**
**£**
**£**
**£**
**£**
-
75,000
(52,240)
-
**22,760**
-
45,000
(45,000)
-
**-**
-
20,758
(20,758)
-
**-**
-
49,970
(49,970)
-
**-**
-
33,000
(33,000)
-
**-**
-
601
(601)
-
**-**
-
10,000
(10,000)
-
**-**
-
30,884
-
-
**30,884**| |---|---| ||-
265,213
(211,569)
-
**53,644**
35,033
139,861
(126,018)
-
**48,876**| ||-
-
-
-
**-**| ||| ||**35,033**
**405,074**
**(337,587)**
**-**
**102,520**| ## **14 RELATED PARTY TRANSACTIONS** The Lotus Flower Iraq is a non-governmental organisation registered in the Kurdistan Region of Iraq. It shares the same mission, leadership, and brand identity as The Lotus Flower UK but operates as a separate legal entity responsible for programme delivery in Iraq. During the year, The Lotus Flower UK made grants totalling £150,242 to The Lotus Flower Iraq to support charitable programmes in protection, wellbeing, education, and livelihoods. These transfers were made under a formal grant agreement and in furtherance of the charity’s objectives. At the year end, there were no funds held by The Lotus Flower UK pending transfer to The Lotus Flower Iraq. No other related party transactions took place during the year. No trustee received remuneration or expenses from the charity. Page | 26 ## **THE LOTUS FLOWER** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024** ## **15 STATEMENT OF FINANCIAL ACTIVITIES – 2023 COMPARATIVES** |**Income from:**
Grants and donations
**Total income**
**Expenditure on:**
Charitable objectives
Governance costs
**Total expenditure**
**Net income / (expenditure)**
**before tax for the year**
Taxation
**Net income / (expenditure)**
**after tax for the year**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Fund**
**Restricted**
**Fund**
**Total**
**Funds**
**2023R**
**£**
**£**
**£**
139,861
265,213
405,074| |---|---| ||139,861
265,213
405,074
(115,932)
(211,569)
(327,501)
(10,086)
-
(10,086)| ||(126,018)
(211,569)
(337,587)
13,843
53,644
67,487
-
-
-
13,843
53,644
67,487
-
-
-| ||13,843
53,644
67,487
35,033
-
35,033| ||**48,876**
**53,644**
**102,520**| Page | 27