DocuSign Envelope ID: 8B4AC6D1-03A1-4496-AC52-9B29071DB8FE
Centre for Lebanese Studies
Annual report and Financial statements
For the year ended 31 December 2021
Charity Number: 298375 (England and Wales)
DocuSign Envelope ID: 8B4AC6D1-03A1-4496-AC52-9B29071DB8FE
Annual Report and Financial Statements
For the Year Ended 31 December 2021
| CONTENTS | PAGE |
|---|---|
| Reference and Administrative details | 1 |
| Trustees’ Annual Report | 2 – 9 |
| Independent Examiners Report | 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 23 |
DocuSign Envelope ID: 8B4AC6D1-03A1-4496-AC52-9B29071DB8FE
Centre for Lebanese Studies
Reference and Administrative Details
Chairman Bassem Ziade Trustees Edward Asseily Youssef Khlat Dalia Salaam Rishani Ghias El Yafi Bassem Ziade Governors Alexandra Asseily Edward Asseily Leila Bouheiry Youssaf Khlat Dalia Salaam Rishini Ghias El Yafi Vida Hamd (resigned 27[th] January 2022) Gilbert Doumit James Watt Bassem Ziade Izzat Darwazeh (appointed 27[th] January 2022) Andrew Arsan (appointed 27[th ] January 2022)
Senior Management Team
Dr Maha Shuayb, Managing Director Rachel Saliba, Director of Operations Dr Cathrine Brun, Deputy Director for Research
Principal Office
Faculty of Education, 184 Hills Road, Cambridge, CB2 8PQ
Charity Registration Number 298375 Independent Examiner Michael Hewett FCA DChA Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA
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DocuSign Envelope ID: 8B4AC6D1-03A1-4496-AC52-9B29071DB8FE
Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
The Trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2021.
OBJECTIVES AND ACTIVITIES
Objects and aims
The Centre for Lebanese Studies is an independent academic research institution, which seeks to promote international understanding of Lebanon and the issues facing it, by undertaking high quality independent research and encouraging discussion and learning through lectures, conferences, workshops, and publications. The Centre also seeks to inform policymakers and make recommendations based on research findings in connection with issues facing Lebanon.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its two key principles, that there must be identifiable benefit and that the benefit must be to the public or a section of the public. The Trustees are satisfied that the activities and purpose of the Centre, as described above and in the accompanying financial statements, fully meet the public benefit requirements.
Achievements and performance
The Centre for Lebanese Studies continued its work in the fields of education, refugees, and disability despite the challenges and difficulties that occurred in Lebanon and worldwide in 2021.
On the theme of education, CLS conducted a rapid assessment to examine the impact of COVID-19 on education and employment in Lebanon, Jordan, and Palestine. This study aimed to examine the education provisions during the COVID-19 crisis and the impact of the crisis on the schooling of children in Lebanon, Jordan and Palestine. The study focused on the education provisions offered by public, private and NGOs sectors. More specifically, it aimed to understand the impact on access and quality of teaching and learning for national as well as refugee children. The study focused on primary and secondary education as well as on vocational education.
Similarly, an Open Society funded project, carried out qualitative ethnographic research with teachers and students from selected public and private formal schools as well as informal schools and education spaces ran by (I)NGOs in Lebanon. It used a collaborative process to develop teachers’ support MOOC delivering quality teaching and learning training and courses for distance learning. The project examined various teaching and learning models provided by the government, private institutions, and (I)NGOs during the COVID-19 pandemic. It also explored opportunities and challenges of distance education amid COVID-19. The project also develops teacher trainings, resources, and community-based solutions and initiatives.
An ongoing project funded by Global Partnership to End Violence against Children and led by Alert international aims to develop new approaches for integrated non-formal education and child protection services that address Violence Against Children continued. Throughout 2021, a Child Protection Policy was updated within CLS and disseminated among its staff. Two learning papers on positive discipline and teachers’ wellbeing were finalised. Several videos were developed and disseminated in order to create awareness against violence against children.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
The Open Society Foundations funded project, which is part of the “Integrity and Accountability in the Lebanese Educational System” initiative, was implemented over the whole year. Research was conducted on the legal and financial areas related to the Lebanese educational system. Additionally, semi-structured interviews were conducted with decision makers and experts within the education sector.
Additionally, CLS is conducting a study on transparency in education (or its lack thereof), funded by the Open Society Foundation. The overarching goal of this project is to push for a transparent and effective reform of the educational sector in Lebanon through an advocacy campaign that aims at disseminating the result of the research project, so as to affect decision makers, and lobby for integrity in education.
The Centre finalized the third wave of data collection for a comparative and longitudinal study in Lebanon, Turkey and Australia in a project titled “Towards an Inclusive Education for Refugees: A Comparative Longitudinal Study”, to examine the impact of settlement and education provisions in different settings on the education progression of refugee children over a five-year period. This was funded by the Spencer Foundation.
CLS was recently granted a British Academy Bi-Lateral Chair funding. Through a “policy ethnography”, this study analyses the evolution of the education response, the rationales, and interests of the different local and international parties including UN agencies and donors and impact on the schooling outcomes of refugees and host communities. The research aims to provide much needed evidence that can inform our thinking and understanding around effective and sustainable education policies and provisions in contexts of emergency and conflict. Additionally, two further projects that focus on civic engagement in Lebanon received grants from IDRC in late 2021.
In 2020, CLS in partnership of a consortium with eight universities and research centers in Europe and Canada was awarded a Horizon 2020 grant. The project examines how protection seekers experience their vulnerabilities and how these experiences are continuously shaped and produced in interaction with the legal and policy frameworks and implementation practices of the relevant decision-makers. More than half-way through the three-year comparative research project that investigates the implementation of the concept of the vulnerability of protection seekers in Lebanon, data collection was finalised and the second year report is being written.
One other major theme in CLS’s work education is curriculum reform. A major conference was held early 2021 with the aim to rethink and re-center the debate around curriculum reform in the Arab world by addressing both the social, cultural, and political underpinnings of curriculum as well as the processes of curriculum development.
On the theme of disability, the Disability Research and Advocacy Hub continued its work on addressing the main issues related to disability in Lebanon. Following the Beirut Blast in 2020, a series of educational and awareness material were established and disseminated to create awareness and advocate for the rights of persons with disabilities. Furthermore, CLS continued its work as part of the four-year project funded by Arts and Humanities Research Council (AHRC) and a development funding for the project by Global Challenges Research Fund (GCRF) with a purpose to investigate research needs on disability and education, and to then provide intellectual, financial, and logistical resources required by local practitioners to deliver a transformational change in education provision for children with disabilities in conflict affected states, primarily Lebanon, Jordan, and Palestine. Also, within the research theme of disability, CLS moved forward with the project funded by the U.S.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
embassy in Lebanon, which aims at empowering women with disabilities. While the MOOC was aimed to be launched in 2022, research and content preparation took place in 2021.
CLS in Jordan has been working on a project on the evaluation of refugee-led organisations, that aims to understand the factors that influence the impact of refugee-led organisations as service-delivery providers in humanitarian settings in the Middle East and East Africa. Also, CLS in Jordan was granted a project at the end of 2021 on the journeys of refugees and national in Jordan through the labour market.
Finally, the Centre also awarded one research bursaries in Lebanon and one Masters’ scholarship in the UK in 2021. All the bursaries, grants and other assistance provided by the Centre are awarded on an objective basis in accordance with advertised selection criteria.
Grant-raising
The Centre’s main income is from grants received from various funding organisations such as charities, academic institutions, think-tanks, and national and international development agencies.
The Director of the Centre pinpoints funding opportunities and works with a potential grantee to explore and develop a funding proposal. The trustees are informed of such proposals as well as new grants at regular intervals.
Based on the Centre’s strategy that is formulated with the trustees, the CLS currently focuses on four major themes: education, migration/refugees, social movements, and disability. Proposals for grants are aligned to these themes and include activities such as research, publications, seminars, policy briefs, among others.
Financial Review
Review of charity’s financial position at the end of the reporting period
The Centre made a surplus for the year of £97,075, in line with expectations. The Centre continues to grow and is financially stable as reflected in the balance sheet, with an accumulated surplus available in cash, which allows current financial obligations and committed projects to be completed as planned.
Reserves
The Centre manages its cashflows very closely. A rolling 12-month forward looking forecast is conducted and revised on a quarterly basis, and a detailed budget review is conducted once every year. With that, we ensure that all commitments to grantees, contractors, and employees are within a good level of confidence.
At the year end the Centre had total reserves of £357,832, of which £84,326 were restricted (2020: £Nil), and £273,506 were unrestricted (2020: £260,757). While the Centre does not currently have a specific reserve requirement, the reserves policy is currently under review.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
Significant events that have affected the financial performance and financial position of the charity during the reporting period:
Lebanon’s financial crisis: the Lebanese pound exchange rate continues to collapse to less than 85% of its value. Given the Centre has been prudent in keeping all grants and income in foreign currency, the financial crisis has not directly affected the Centre’s financial condition.
Principal risks and uncertainties
The main risks facing the charity are:
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Banking system and financial instability in Lebanon. Likelihood: High – Trustees and the Operations team are keeping a very close eye on new laws and decrees. Risk is substantially mitigated by grants being received in foreign currency and maintaining a maximum of one-month of local expenditures in Lebanon.
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Retention of core staff. Likelihood: Medium – Core staff are usually budgeted and hired on project basis, and until new funding is awarded, they are not receiving pay. The trustees took a decision to ensure that core staff are retained for short bridging periods in-between projects.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Nature of governing document
The Centre is a registered charity, number 298375 governed by a trust deed dated 22nd December 1987. It is managed by the trustees through regular meetings.
Trustees must be appointed by a majority vote of the governors, from the existing pool of governors. At every annual general meeting, existing trustees may either be reappointed or retire. Furthermore, the Board of Trustees elect from their number a Chairman and a Treasurer.
Once appointed, new trustees are inducted and receive a set of the trust’s governance documents as well as guidance on the role of the trustee:
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Trust deed of the Centre for Lebanese Studies
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Charity Governance Code for larger charities
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Organisational Chart of the CLS
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Strategy, aims and objectives of CLS
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Bi-annual report that the Operation Team at CLS prepares for the trustees.
Relation between charity and related parties
The CLS operates in Lebanon through a local NGO called “Education Development Centre in Lebanon” (EDC). EDC was established in 2019 to enable the CLS to operate legally and to hire local research and administrative staff in Lebanon. EDC and CLS operate as one organization and have a shared governance structure and policies as well as an integrated management, research and operational team.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
Organisational structure
The Centre is managed by the Director, Dr. Maha Shuayb. She has two direct reports, 1) Director of Operations, Rachel Saliba, who is responsible for managing all operational activities of the Centre in all its locations, and 2) Deputy Director for Research, Dr. Cathrine Brun, who oversees all the research activities within the Centre. Dr. Shuayb reports directly to the Chairman, acting on behalf of the Trustees and Board of Governors.
Each project is managed by a project manager/Senior researcher who reports to the Director of Operations for administrative, financial, and communication matters and to the Director of Research for research and academic matters. He/she leads their respective team of junior researchers, research consultants, and research assistants.
The core operational team consists of 3 main departments: Finance, Administrative, and Communication. The Finance department consists of a part-time Finance Manager who oversees the work of the full-time Finance Officer. The Finance Officer oversees the work of the Finance and Admin Assistant. A Project Coordinator leads on the administrative and logistical tasks. The Senior Media and Communications Specialist is assisted by a Communications Officer and a part-time Graphic designer.
Most of the researchers are contractors recruited for the term of the relevant project. The majority of the staff of CLS and all the researchers hired to work on the ground in Lebanon are employed or contracted by EDC, which is an affiliate of CLS registered in Lebanon, for local legal, tax, and regulatory reasons.
Decision making
Trustees have independent control over, and legal responsibility for, a charity’s management and administration. Under UK law, they have a duty to:
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Comply with CLS’s governing document and the law
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Act in the charity’s best interests
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Manage the charity’s resources responsibly
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Act with reasonable care and skill
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Ensure the charity is accountable
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Ensure the charity is carrying out its purposes for the public benefit
The Chairman of the Trustees of CLS and EDC is responsible for ensuring the proper operation of the Board of Trustees, including:
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convening the necessary meetings
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chairing them
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ensuring they are properly minuted
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overseeing compliance with reporting requirements.
He/she is a bank signatory. He/she will maintain direct personal contact with the Director and serve as her/his line manager.
The Treasurer (who is also a Trustee) is responsible for reporting to the Board on financial matters. He/she is also a bank signatory.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
The Treasurer is responsible at Board level for leading on:
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making sure the charity keeps proper accounts
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reviewing the charity’s financial performance
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ensuring that the charity has robust and effective financial controls in place
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liaising with finance staff, the Accountant and the auditors
The Secretary (who is also a Trustee) is responsible at Board level for matters concerning staff employment, welfare and discipline. He/she may also be a bank signatory.
Other Trustees may also be appointed, one of whom could serve as Vice-Chairman.
Collectively, the Trustees are responsible for Board decisions.
The Trustees will normally meet with the Director taking part in the meeting, but on occasions will meet on their own.
Decisions reserved for approval by the Board of Trustees:
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Appointment or variation in terms of Director and Senior Managers
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Changes and material deviations from strategy
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Policies and material exceptions to policies
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Creation or closing of offices, branches, legal entities
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New and material changes to existing institutional partnerships or close collaborations
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Financial commitments outside of approved project budgets that are greater than 10,000$
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Anything that could reasonably conflict with the Centre’s purpose or adversely affect its reputation
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Appointment of auditors and legal advisors
The Role of the Director of CLS and EDC
Subject to the decisions reserved by the Board of Trustees, the Director has full executive and operational responsibility for the charities, in both management and academic terms, reporting to the Board and seeking advance approval of major changes of activity, policy or structure. He/she is supported by a Director of Operations and Deputy Directors of Research.
Meetings
The board of governors meet twice a year.
The board of trustees meet two to four times a year with the Director of the Centre, the Director of Operations, and the Deputy Director of Research. A quarterly forecast is submitted to the Chairman and Treasurer, and an update on progress is submitted to the Board of Trustees every 6 months.
Two-year strategy
A two-year strategy has been developed by CLS team, in consultation with the Research Committee and Board of Trustees.
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Centre for Lebanese Studies
Trustees’ Annual Report For the Year Ended 31 December 2021
Arrangements for setting the pay and remuneration of the charity’s key management personnel and any benchmarks in setting pay
A salary scale is in place, which is reviewed from time to time, and used to guide the pay of all staff at CLS. Salaries and contractor rates are benchmarked to those of academic researchers, universities and thinktanks by taking into account the position (level of seniority), years of experience, location, and educational level of employees. We also take into account length of contract, and whether it is a full time or short term contract. The Centre aims to attract among the best academic researchers in their field, and this is reflected within its competitive compensation.
Plans for future period
The Centre’s focus and strategy was revised in 2021. While the themes of education, refugees, and disability remain unchanged, CLS has added a new theme that focuses on social movements. Moreover, given that the COVID-19 travel restrictions have decreased, CLS plans to conduct more face-to-face meetings and conferences, and this requires a higher budget for travel and accommodation. Finally, we will continue to review closely the revolving situation in Lebanon and the wider region and respond accordingly both in terms of research and operations.
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Statement of Trustees’ Responsibilities For the Year Ended 31 December 2021
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and pf the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
Additionally, trustees acknowledge their responsibility to identify, assess, and manage risks. The major risks related to the Centre that include the current uncertain and unstable financial situation in Lebanon as been reviewed and assessed and the necessary internal processes have been set up to manage those risks.
Approved by the trustees of the charity and signed on its behalf by:
Bassem Ziade Chairman and Trustee
19 October 2022 Date:
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Centre for Lebanese Studies
Independent Examiner’s Report For the Year Ended 31 December 2021
Independent Examiner's Report to the Trustees of Centre for Lebanese Studies ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2021.
Responsibilities and Basis of Report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Accountants, which is one of the listed bodies.
I have completed by examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect;
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accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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the accounts 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 accounts to be reached.
Signed:
19 October 2022 Date:
M Hewett FCA DChA Peters Elworthy and Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA
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Centre for Lebanese Studies
Statement of Financial Activities For the Year Ended 31 December 2021
| Notes Income from: Donations and legacies 2 Charitable activities 3 Investment income 4 Total income Expenditure on: Charitable activities 5, 6 Total expenditure Net income / (expenditure) Transfers between funds Net movement in funds 16 Reconciliation of funds: Total funds brought forwards 16 Total funds carried forward 16 |
Restricted funds 2021 £ - 296,674 - 296,674 214,328 214,328 82,346 1,980 84,326 - 84,326 |
Unrestricted funds 2021 £ 42,201 573,268 50 615,519 600,790 600,790 14,729 (1,980) 12,749 260,757 273,506 |
Total 2021 £ 42,201 869,942 50 912,193 815,118 815,118 97,075 - 97,075 260,757 357,832 |
Total 2020 £ 9,634 791,310 299 |
|---|---|---|---|---|
| 801,243 | ||||
| 684,939 | ||||
| 684,939 | ||||
| 116,304 - |
||||
| 116,304 144,453 |
||||
| 260,757 |
The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.
All of the above amounts relate to continuing activities.
The notes on pages 14 to 22 form part of these financial statements
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Centre for Lebanese Studies
Balance Sheet As at 31 December 2021
| Notes FIXED ASSETS Intangible fixed assets 11 Tangible fixed assets 12 CURRENT ASSETS Debtors 13 Cash at bank CREDITORS:Amounts falling due within one year 14 NET CURRENT ASSETS NET ASSETS FUNDS Restricted funds 16 Unrestricted funds 16 TOTAL FUNDS |
£ 15,695 500,491 516,186 (158,354) |
2021 £ - - - 357,832 357,832 84,326 273,506 357,832 |
£ 8,906 308,338 317,244 (63,857) |
2020 £ - 7,370 |
|---|---|---|---|---|
| 7,370 253,387 |
||||
| 260,757 | ||||
| - 260,757 |
||||
| 260,757 |
These financial statements were approved by the trustees and authorised for issue and signed on their behalf by:
………………………………..
Bassem Ziade
Chairman and Trustee
Date: 19 October 2022
The notes on pages 14 to 22 form part of these financial statements
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Centre for Lebanese Studies
Statement of Cash Flows For the Year Ended 31 December 2021
| CASH FLOWS FROM OPERATING ACTIVITIES Notes Net cash used in operating activities 18 CASH FLOWS FROM INVESTING ACTIVITIES Dividends, interest, and rents from investments NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES NET CASH PROVIDED BY FINANCING ACTIVITIES CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR Cash and cash equivalents at the beginning of the year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR |
2021 £ 192,103 |
2020 £ 174,833 |
|---|---|---|
| 50 | 299 |
|
| 50 | 299 |
|
| - | - |
|
| 192,153 308,338 |
175,132 133,206 |
|
| 500,491 | 308,338 |
The notes on pages 14 to 22 form part of these financial statements
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
1. Accounting policies
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
Basis of preparation
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) (Second edition October 2019 - effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Centre for Lebanese Studies meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Functional and presentational currency
The charity’s functional currency is USDs and the presentational currency is GBPs.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received, and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable, and the amount can be reliably measured.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £1,000 or more are initially recorded at cost. Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class
Furniture and equipment
Depreciation method and rate 33% Reducing balance
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund Structure
Unrestricted income funds are general funds that are available for use at the trustee’s discretion in furtherance of the objectives of the charity.
Restricted income funds are subject to specific conditions by the donor as to how they may be used.
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
2. INCOME FROM DONATIONS AND LEGACIES
| Donations and gifts Trusts, foundations and grants Gift Aid |
Restricted funds 2021 £ - - - - |
Unrestricted funds 2021 £ 42,201 - - 42,201 |
Total Funds 2021 £ 42,201 - - 42,201 |
Total Funds 2020 £ 9,634 - - |
|---|---|---|---|---|
| 9,634 |
In 2020 all income was to unrestricted funds.
3. INCOME FROM CHARITABLE ACTIVITIES
| Research grants | Restricted funds 2021 £ 296,674 296,674 |
Unrestricted funds 2021 £ 573,268 573,268 |
Total Funds 2021 £ 869,942 869,942 |
Total Funds 2020 £ 791,310 |
|---|---|---|---|---|
| 791,310 |
In 2020 all income was to unrestricted funds.
4. INVESTMENT INCOME
| Investment income | Restricted funds 2021 £ - - |
Unrestricted funds 2021 £ 50 50 |
Total Funds 2021 £ 50 50 |
Total Funds 2020 £ 299 |
|---|---|---|---|---|
| 299 |
In 2020 all income was to unrestricted funds.
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES – BY FUND
| Research Total 2020 |
Unrestricted Funds 2021 £ 600,790 600,790 684,939 |
Restricted Funds 2021 £ 214,328 214,328 - |
Total Funds 2021 £ 815,118 815,118 684,939 |
Total Funds 2020 £ 684,939 |
|---|---|---|---|---|
| 684,939 | ||||
6. ANALYSIS OF EXPENDITURE BY ACTIVITIES
| Research Total 2020 |
Grant funding (note 7) 2021 £ 53,201 53,201 - |
Direct costs 2021 £ 710,959 710,959 652,745 |
Support costs 2021 £ 50,958 50,958 32,194 |
Total Funds 2021 £ 815,118 815,118 684,939 |
Total Funds 2020 £ 684,939 |
|---|---|---|---|---|---|
| 684,939 | |||||
In 2020 all expenditure was to unrestricted funds.
ANALYSIS OF DIRECT COSTS
| Research and project costs Total 2020 |
Activities 2021 £ 710,959 652,745 |
Total Funds 2021 £ 710,959 652,745 |
Total Funds 2020 £ |
|---|---|---|---|
| 652,745 | |||
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
6. ANALYSIS OF EXPENDITURE BY ACTIVITIES (continued)
ANALYSIS OF SUPPORT COSTS
| Depreciation Office and workshop Rent Other miscellaneous expenses Subscriptions, advertising and website Travel and accommodation Accountancy and audit Legal and consulting Bank charges Foreign exchange gain |
2021 £ 7,369 1,202 16,144 425 5,498 3,930 9,144 10,957 1,844 (5,555) 50,958 |
2020 £ 7,369 10,699 3,068 7,605 6,543 14,878 2,070 2,381 2,445 (24,864) |
|---|---|---|
| 32,914 |
In 2020 all expenditure was to unrestricted funds.
Included in support costs are governance costs of £3,480 (2020: £3,240), which represent fees payable to the Charity’s independent examiner for the independent examination and preparation of the annual accounts.
7. GRANTS PAYABLE
| Scholarships Total 2020 |
Grants to institutions 2021 £ - - - |
Grants to individuals 2021 £ 53,201 53,201 - |
Total Funds 2021 £ 53,201 53,201 - |
Total Funds 2020 £ - |
|---|---|---|---|---|
| - | ||||
Grants to individuals consists of scholarship grants paid out to two individuals.
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
8. TRUSTEES REMUNERATION AND EXPENSES
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year (2020: £Nil).
No trustees have received any reimbursed expenses or any other benefits from the charity during the year (2020: £Nil).
9. TAXATION
The Charity is a registered charity and is therefore exempt from taxation.
10. EMPLOYEES
The Charity had no employees during the year (2020: £Nil).
11. INTANGIBLE ASSETS
| 11. INTANGIBLE ASSETS | |
|---|---|
| 2021 | |
| £ | |
| Archives | |
| Cost | |
| At 1 January 2021 | 12,823 |
| Additions | - |
| Disposals | - |
| At 31 December 2021 | 12,823 |
| Accumulated amortisation | |
| At 1 January 2021 | 12,823 |
| Charge for the year | - |
| Disposals | - |
| At 31 December 2021 | 12,823 |
| Net Book Value | |
| At 1 January 2021 | - |
| At 31 December 2021 | - |
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
12. TANGIBLE ASSETS
| 12. TANGIBLE ASSETS | |
|---|---|
| 2021 | |
| £ | |
| Furniture & | |
| equipment | |
| Cost | |
| At 1 January 2021 | 46,735 |
| Additions | - |
| Disposals | - |
| At 31 December 2021 | 46,735 |
| Accumulated amortisation | |
| At 1 January 2021 | 39,366 |
| Charge for the year | 7,369 |
| Disposals | - |
| At 31 December 2021 | 46,735 |
| Net Book Value | |
| At 1 January 2021 | 7,369 |
| At 31 December 2021 | - |
13. DEBTORS
| 13. DEBTORS | |
|---|---|
| 2021 £ Prepayments 2,425 Accrued income 13,270 Total debtors 15,695 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 £ Other creditors - Accruals 3,480 Deferred income (note 15) 154,874 Total creditors 158,354 |
2020 £ 8,906 - |
| 8,906 2020 £ 7,997 55,860 - |
|
| 63,857 |
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
15. DEFERRED INCOME
| At 1 January 2021 Deferred in the year Amounts used At 31 December 2021 |
£ - 154,874 - |
|---|---|
| 154,874 |
Deferred income represents unrestricted grant income received in advance.
16. FUNDS AND RESERVES
| CURRENT YEAR Restricted funds – Research projects Unrestricted funds PRIOR YEAR Unrestricted funds |
Balance at 1 January 2021 £ - 260,757 260,757 Balance at 1 January 2020 £ 144,453 144,453 |
Incoming resources £ 296,674 615,519 912,193 Incoming resources £ 801,243 801,243 |
Resources expended £ (214,328) (600,790) (815,118) Resources expended £ (684,939) (684,939) |
Transfers £ 1,980 (1,980) - Transfers £ - - |
Balance at 31 December 2021 £ 84,325 273,506 |
|---|---|---|---|---|---|
| 357,832 | |||||
| Balance at 31 December 2020 £ 260,757 |
|||||
| 260,757 |
Restricted funds - Research projects represent individual grants received for restricted projects. Amounts unspent on these grants are carried forward to be spent in line with the restrictions in future years.
Transfers – transfers between funds represent overspends on restricted grant funded projects met by unrestricted funds.
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
17. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted funds 2021 £ Tangible assets - Current assets 431,860 Current liabilities (158,354) 273,506 Unrestricted funds 2020 £ Tangible assets 7,370 Current assets 317,244 Current liabilities (63,857) 260,757 |
Restricted funds 2021 £ - 84,326 - 84,326 Restricted funds 2020 £ - - - - |
Total 2021 £ - 516,186 (158,354) |
|---|---|---|
| 357,832 | ||
| Total 2020 £ 7,370 317,244 (63,857) |
||
| 260,757 |
18. RECONCILIATION OF NET MOVEMENTS IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the year ADJUSTMENTS FOR: Depreciation charges Dividends, interest, and rents from investments (Increase) / decrease in debtors Increase / (decrease) in creditors NET CASH USED IN INVESTING ACTIVITIES |
2021 £ 97,075 |
2020 £ 116,304 7,369 (299) (8,906) 60,365 174,833 |
|---|---|---|
| 7,369 (50) (6,789) 94,498 |
||
| 192,103 |
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Centre for Lebanese Studies
Notes to the accounts For the Year Ended 31 December 2021
19. ANALYSIS OF CHANGES IN NET DEBT
| Cash at bank and in hand | At 1 January 2021 £ 308,338 308,338 |
Cashflows £ 192,153 192,153 |
At 31 December 2021 £ 500,491 |
|---|---|---|---|
| 500,491 |
20. RELATED PARTY TRANSACTIONS
During the year transfers amounting to £428,259 (2020 £252,391) were paid to an affiliated NGO entity Education Dev. Center in Lebanon, established to hire local staff and enable CLS to fulfil its objectives.
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