DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

Annual report and Financial statements 

For the year ended 31 December 2022 

Charity Number: 298375 (England and Wales) 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## Annual Report and Financial Statements 

For the Year Ended 31 December 2022 

|**CONTENTS**|**PAGE**|
|---|---|
|Reference and Administrative details|1|
|Trustees’ Annual Report|2 – 10|
|Independent Examiners Report|11|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Statement of cash flows|14|
|Notes to the financial statements|15 - 26|





DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Reference and Administrative Details 

Chairman Bassem Ziade Trustees Bassem Ziade, Chairman Dalia Salaam Rishani Edward Asseily Ghias El Yafi (resigned July 2023) James Watt (appointed July 2023) Youssef Khlat (resigned July 2023) Governors Alexandra Asseily Andrew Arsan Bassem Ziade Dalia Salaam Rishani Edward Asseily Ghias El Yafi Gilbert Doumit Haneen Sayed (appointed July 2023) Izzat Darwazeh James Watt Leila Buheiry (resigned July 2023) Mouhammed Choukeir (resigned in 2022) Peter El Hajj (appointed July 2023) Vida Hamd (resigned January 2022) Youssef Khlat (resigned July 2023) Senior Management Team Dr. Maha Shuayb, Director Prof. Cathrine Brun, Deputy Director for Research Rachel Saliba, Director of Operations 

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 

Page | 2 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

The Trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2022. The Trustees confirm that the Annual Report and financial statements comply with the current statutory requirements, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). 

## **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 continues its focus on 4 main research themes: Education, refugees, disability, and social movements. In terms of **education** , CLS has finalised its fourth wave of data collection for a comparative and longitudinal study in Lebanon, Turkey and Australia, to examine the impact of settlement and education provisions in different settings on the education progression of refugee children over a five-year period, funded by the Spencer Foundation. Several reports have already been published and a few more are in the process of being finalised and published. A no-cost extension was granted for 2023. 

The Open Society Foundations funded project, which is part of the “Integrity and Accountability in the Lebanese Educational System” initiative, was finalised. The overarching goal of this project was 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 researchers published the report and a workshop to present the results of the research was conducted with policy-makers, activists, researchers, and representatives from (I)NGO’s. 

During this year, CLS was granted funding by the European Union Commission for a duration of one year in order to develop a blended approach for teacher professional development, particularly for educators working with Syrian refugees and Lebanese children from marginalised backgrounds. A MOOC was co-designed with educators from Lebanon focusing on teaching pedagogies, inclusive  education, alternative assessment methods and teachers’ well-being. Various face-to-face workshops were also conducted with some of the participants of the MOOC. 

Page | 3 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

The British Academy Bi-Lateral Chair was launched in October 2022. The project aims at analysing the evolution of the education response, the rationales, and interests of the different local and international parties including UN agencies and donors and the impact on the schooling outcomes of refugees and host communities through a “policy ethnography”. The event was hybrid whereby participants in the UK and Lebanon were able to livestream simultaneously presentations in each country. Additionally, two fellows were recruited and a PhD retreat was conducted in the UK with a focus on theorising in PhD research. 

On the theme of **refugees** , CLS in partnership of a consortium with eight universities and research centers in Europe and Canada have been awarded Horizon 2020 grant to examine 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. A three-year comparative research project, investigates the implementation of the concept of the vulnerability of protection seekers in Lebanon. Including a legal and empirical study, the project documents, evaluates and reflects on how vulnerabilities of protection seekers are being assessed and addressed in Lebanon’s protection regime. In 2022, the second report of the project was finalised and published. The researchers on the project took part in various webinars and conferences and presented the results of the research so far. 

Decolonising Knowledge Systems: Towards a new Southern-Led approach is a project that seeks to deconstruct the concepts of decolonisation/localisation of knowledge production and understand the dynamics of how these concepts have been applied by multiple actors in the last decade, including institutions of higher learning, research for development organisations, researchers, and funders. In 2022, the research team launched the project and began data collection. 

Granted in 2021, “Supporting Knowledge Translation, Cross-Portfolio, Learning & Communication for Impact” is a project that entails an analytical synthesis of projects focused on youth issues globally and across regions and programs. The aim is to help identify a solid research agenda on the links between civic engagement and better governance, greater accountability and transparency of policy processes. In 2022, data collection was completed and a final report was published. 

In Jordan, CLS completed the 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. In Jordan, CLS was also granted phase II of a project on the journeys of refugees and national in Jordan through the labour market. 

On the theme of **disability** , the Disability Research and Advocacy Hub continues its work to advocate for the rights of persons with disabilities. Through the four-year project funded by the Arts and Humanities Research Council (AHRC) various activities were conducted. For example, a project on media training was conducted, which aims to advocate and raise awareness on the disability notion as well as provide training to media production organisations, TV reporters, producers, journalists.  etc. to produce inclusive media content that uses inclusive language, correct disability terminologies based on the social model of disability. A series of workshops were delivered to different Lebanese media organisations, and media education program coordinators to train them to deliver their media content inclusively by using one of the Disability Hub guidelines. 

Page | 4 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

Within the **social movements** theme, 2022 was dedicated to building the social movements archive for the second half of the 1980s in Lebanon. The researchers collected, coded and analysed articles from two Lebanese newspapers, Annahar and Assafir, covering the financial crisis and the labour, teachers, women, and people with disabilities movements during the years 1985-89. Additionally, we drew a comprehensive outline showing tactics and methods of resistance, what worked and didn’t, and the state’s responses to protest movements during the civil war. 

Finally, the Centre awarded one research bursary in Lebanon and five higher education scholarships in Lebanon. 

## _**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. In addition, the Centre separately receives donations for scholarships and bursaries from CLS trustees. 

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 deficit for the year of $446,327 (2021: Surplus of $131,023), in line with expectations. The Centre continues to grow and is financially stable as reflected in the balance sheet, with income received in advance 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 $36,640, of which $32,572 were restricted (2021: $113,814). Unrestricted funds were in a surplus of $4,068 (2021: $369,153). The Centre has no fixed reserve requirement, but Trustees regularly review the balance of funds. 

Page | 5 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

## _**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: 

- 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. 

- 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 governed 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: 

- Trust deed of the Centre for Lebanese Studies 

- Charity Governance Code for larger charities 

- Organisational Chart of the CLS 

- Strategy, aims and objectives of CLS 

- 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 organisation and have a shared governance structure and policies as well as an integrated management, research and operational team. 

Page | 6 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

## _**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. A Project Coordinator leads on the administrative and logistical tasks with the assistance of an Administration Assistant. The Senior Media and Communications Specialist is assisted by a Communications Officer and a Graphic designer. 

Most of the researchers are contractors recruited for the term of the relevant project. They are all high-quality academic researchers that are recruited for their domain expertise. 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: 

- Comply with CLS’s governing document and the law 

- Act in the charity’s best interests 

- Manage the charity’s resources responsibly 

- Act with reasonable care and skill 

- Ensure the charity is accountable 

- 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: 

- Convening the necessary meetings 

- Chairing them 

- Ensuring they are properly minuted 

- 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. 

Page | 7 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

The Treasurer (who is also a Trustee) is responsible for reporting to the Board on financial matters.  He/she is also a bank signatory. 

The Treasurer is responsible at Board level for leading on: 

- Making sure the charity keeps proper accounts 

- Reviewing the charity’s financial performance 

- Ensuring that the charity has robust and effective financial controls in place 

- 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:** 

- Appointment or variation in terms of Director and Senior Managers 

- Changes and material deviations from strategy 

- Policies and material exceptions to policies 

- Creation or closing of offices, branches, legal entities 

- New and material changes to existing institutional partnerships or close collaborations 

- Financial commitments outside of approved project budgets that are greater than 10,000$ 

- Anything that could reasonably conflict with the Centre’s purpose or adversely affect its reputation 

- 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. 

Page | 8 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Trustees’ Annual Report For the Year Ended 31 December 2022 

## **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** 

As part of the board meetings, CLS continues its research on the themes of education, refugees, disability and social movement. The directors based in the UK will be visiting Lebanon more often (at least 3 times a year) in order to support the research and work conducted in the country. 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. 

Page | 9 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Statement of Trustees’ Responsibilities For the Year Ended 31 December 2022 

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 of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles in the Charities SORP 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 

Date: 30 October 2023 

Page | 10 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

Independent Examiner’s Report For the Year Ended 31 December 2022 

## **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 2022. 

## **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; 

1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or 

2. the accounts do not accord with those records; or 

3. 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: 


Date: 30 October 2023 

**M Hewett FCA DChA Peters Elworthy and Moore** Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA 

Page | 11 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Statement of Financial Activities For the Year Ended 31 December 2022 

|**Notes**<br>**Income from:**<br>Donations and<br>legacies<br>2<br>Charitable activities<br>3<br>Investment income<br>4<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>5, 6<br>**Total expenditure**<br>**Net income /**<br>**(expenditure)**<br>Transfers between<br>funds<br>**Net movement in**<br>**funds**<br>**16**<br>**Reconciliation of**<br>**funds:**<br>Total funds brought<br>forwards<br>16<br>**Total funds carried**<br>**forward**<br>**16**|**Restricted**<br>**funds**<br>**2022**<br>**$**<br>-<br>481,707<br>-<br>**481,707**<br>562,949<br>**562,949**<br>**(81,242)**<br>-<br>**(81,242)**<br>113,814<br>**32,572**|**Unrestricted**<br>**funds**<br>**2022**<br>**$**<br>119,452<br>541,890<br>-<br>**661,342**<br>1,026,427<br>**1,026,427**<br>**(365,085)**<br>-<br>**(365,085)**<br>369,153<br>**4,068**|**Total**<br>**2022**<br>**$**<br>**119,452**<br>**1,023,597**<br>**-**<br>**1,143,049**<br>**1,589,376**<br>**1,589,376**<br>**(446,327)**<br>-<br>**(446,327)**<br>**482,967**<br>**36,640**|Total<br>2021<br>$ 58,133<br>1,198,368<br>69|
|---|---|---|---|---|
|||||1,256,570|
|||||1,125,547|
|||||1,125,547|
|||||131,023<br>-|
|||||131,023<br>351,944|
|||||482,967|



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 15 to 26 form part of these financial statements 

Page | 12 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Balance Sheet As at 31 December 2022 

|**Notes**<br>**FIXED ASSETS**<br>Intangible fixed assets<br>11<br>Tangible fixed assets<br>12<br>**CURRENT ASSETS**<br>Debtors<br>13<br>Cash at bank<br>**CREDITORS:**Amounts falling<br>due within one year<br>14<br>**NET CURRENT ASSETS**<br>**NET ASSETS**<br>**FUNDS**<br>Restricted funds<br>16<br>Unrestricted funds<br>16<br>**TOTAL FUNDS**|<br>**$**<br>21,310<br>294,698<br>316,008<br>(279,368)|**2022**<br>**$**<br>**-**<br>-<br>**-**<br>**36,640**<br>**36,640**<br>32,572<br>4,068<br>**36,640**|**$**<br>21,185<br>675,512<br>696,697<br>(213,730)|**2021**<br>**$**<br>-<br>-|
|---|---|---|---|---|
|||||-<br>482,967|
|||||482,967|
|||||113,814<br>369,153|
|||||482,967|



These financial statements were approved by the trustees and authorised for issue and signed on their behalf by: 

……………………………….. 

Bassem Ziade Chairman and Trustee Date: 30 October 2023 

The notes on pages 15 to 26 form part of these financial statements 

Page | 13 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Statement of Cash Flows For the Year Ended 31 December 2022 

|**CASH FLOWS FROM OPERATING ACTIVITIES**<br>**Notes**<br>Net cash used in operating activities<br>**18**<br>**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Dividends, interest, and rents from investments<br>**NET CASH USED IN INVESTING ACTIVITIES**<br>**CASH FLOWS FROM FINANCING ACTIVITIES**<br>**NET CASH PROVIDED BY FINANCING ACTIVITIES**<br>**CHANGE IN CASH AND CASH EQUIVALENTS IN THE**<br>**YEAR**<br>Cash and cash equivalents at the beginning of the year<br>**CASH AND CASH EQUIVALENTS AT THE END OF THE**<br>**YEAR**<br>The notes on pages 15 to 26 form part of these financial statements|**2022**<br>**$**<br>**(380,814)**|2021<br>$ **255,795**|
|---|---|---|
||**-**|69|
||**-**|**69**|
||||
||**-**|**-**|
||**(380,814)**<br>675,512|**255,864**<br>419,648|
||**294,698**|**675,512**|
||||



Page | 14 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

**Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **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 USDs. The accounts were previously prepared in GBP, this change has therefore been applied retrospectively in order to bring comparatives in line. 

## **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. 

Page | 15 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## _**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 Depreciation method and rate** Furniture and equipment 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. 

## **Funds** 

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. 

Page | 16 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts 

## For the Year Ended 31 December 2022 

## **2. INCOME FROM DONATIONS AND LEGACIES** 

|Donations and gifts<br>Trusts, foundations, and grants<br>Gift Aid|**Restricted**<br>**funds**<br>**2022**<br>**$**<br>-<br>-<br>-<br>-|**Unrestricted**<br>**funds**<br>**2022**<br>**$**<br>119,452<br>-<br>-<br>119,452|**Total**<br>**Funds**<br>**2022**<br>**$**<br>119,452<br>-<br>-<br>119,452|Total<br>Funds<br>2021<br>$ 58,133<br>-<br>-|
|---|---|---|---|---|
|||||58,133|



In 2021 all income was to unrestricted funds. 

## **3. INCOME FROM CHARITABLE ACTIVITIES** 

|Research grants<br>Other charitable activities|**Restricted**<br>**funds**<br>**2022**<br>**$**<br>481,707<br>-<br>481,707|**Unrestricted**<br>**funds**<br>**2022**<br>**$**<br>529,682<br>12,208<br>541,890|**Total**<br>**Funds**<br>**2022**<br>**$**<br>1,011,389<br>12,208<br>1,023,597|Total<br>Funds<br>2021<br>$ 1,198,368<br>-|
|---|---|---|---|---|
|||||1,198,368|



## **4. INVESTMENT INCOME** 

||**Restricted**||**Unrestricted**|**Total**||Total|
|---|---|---|---|---|---|---|
||**funds**||**funds**|**Funds**||Funds|
||**2022**||**2022**|**2022**||2021|
||**$**||**$**|**$**||$|
|Investment income||-|-||-|69|
|||-|-||-|69|



Page | 17 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts 

## For the Year Ended 31 December 2022 

## **5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES – BY FUND** 

|Research<br>Total 2021|**Unrestricted**<br>**Funds**<br>**2022**<br>**$**<br>1,026,427<br>1,026,427<br>827,959|**Restricted**<br>**Funds**<br>**2022**<br>**$**<br>562,949<br>562,949<br>297,588|**Total Funds**<br>**2022**<br>**$**<br>1,589,376<br>1,589,376<br>1,125,547|Total<br>Funds<br>2021<br>$ 1,125,547|
|---|---|---|---|---|
|||||1,125,547|
||||||



## **6. ANALYSIS OF EXPENDITURE BY ACTIVITIES** 

|Research<br>Total 2021|**Grant**<br>**funding (note**<br>**7)**<br>**2022**<br>**$**<br>114,238<br>114,238<br>73,286|**Direct costs**<br>**2022**<br>**$**<br>1,452,058<br>1,452,058<br>974,571|**Support**<br>**costs**<br>**2022**<br>**$**<br>23,080<br>23,080<br>77,690|**Total**<br>**Funds**<br>**2022**<br>**$**<br>1,589,376<br>1,589,376<br>1,125,547|Total<br>Funds<br>2021<br>$ 1,125,547|
|---|---|---|---|---|---|
||||||1,125,547|
|||||||



Page | 18 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **6. ANALYSIS OF EXPENDITURE BY ACTIVITIES (continued)** 

## **ANALYSIS OF DIRECT COSTS** 

|Staff costs (Note 10)<br>Research fees<br>Project costs<br>Translation and editing<br>Travel<br>Communications<br>Other direct costs<br>Foreign exchange (gain) / loss<br>**ANALYSIS OF SUPPORT COSTS**<br>Depreciation<br>Office and workshop<br>Rent<br>Other miscellaneous expenses<br>Subscriptions, advertising and website<br>Travel and accommodation<br>Accountancy and audit<br>Legal and consulting<br>Bank charges|**2022**<br>**$**<br>247,695<br>120,810<br>961,198<br>12,173<br>6,288<br>3,581<br>16,578<br>83,735<br>1,452,058<br>**2022**<br>**$**<br>-<br>-<br>-<br>265<br>4,336<br>10,895<br>4,248<br>-<br>3,336<br>23,080|**2021**<br>**$**<br>130,183<br>202,305<br>643,587<br>3,289<br>-<br>-<br>160<br>(4,953)|
|---|---|---|
|||974,571|
|||**2021**<br>**$**<br>10,151<br>1,656<br>22,239<br>474<br>7,526<br>5,414<br>12,596<br>15,094<br>2,540|
|||77,690|



Included in support costs are governance costs of $4,248 (2021: $4,697), which represent fees payable to the Charity’s independent examiner for the independent examination and preparation of the annual accounts. 

Page | 19 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts 

## For the Year Ended 31 December 2022 

## **7. GRANTS PAYABLE** 

|Scholarships<br>Total 2021|**Grants to**<br>**institutions**<br>**2022**<br>**$**<br>63,468<br>63,468<br>-|**Grants to**<br>**individuals**<br>**2022**<br>**$**<br>50,770<br>50,770<br>73,286|**Total**<br>**Funds**<br>**2022**<br>**$**<br>114,238<br>114,238<br>73,286|Total<br>Funds<br>2021<br>$ 73,286|
|---|---|---|---|---|
|||||73,286|
||||||



Grants to individuals consists of scholarship grants paid out to four individuals. 

Grants to institutions consist of scholarship grants and living expenses paid to individuals via their academic institution. During the year, the following payments were made to institutions: 

Kings College University: $41,309 University College of London: $22,159 

## **8. TRUSTEES REMUNERATION AND EXPENSES** 

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year (2021: $Nil). 

No trustees have received any reimbursed expenses or any other benefits from the charity during the year (2021: $Nil). 

## **9. TAXATION** 

The Charity is a registered charity and is therefore exempt from taxation. 

Page | 20 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **10. EMPLOYEES** 

The payroll costs were as follows: 

|Wages and salaries<br>Social security costs<br>Pension costs|**2022**<br>**$**<br>211,081<br>27,211<br>9,402<br>247,695|**2021**<br>**$**<br>112,383<br>14,107<br>3,693<br>130,183|
|---|---|---|



The average monthly number of full time and part time employees during the year was: 

||**2022**|**2021**|
|---|---|---|
||**No.**|**No.**|
|UK staff|2|1|



The number of employees whose employee benefits (including redundancy costs but excluding employer’s pension costs) was £60,000 or more was: 

||**2022**|**2021**|
|---|---|---|
||**No.**|**No.**|
|£60,001 to £70,000|1|-|
|£70,001 to £80,000|-|1|
|£100,001 to £101,000|1|-|



Key management personnel are defined as the Senior Management Team, incorporating the Managing Director, Director of Operations, and Deputy Director for Research. 

The total employment benefits paid to key management personnel (including pension contributions) during the year were $201,149 (2021: $94,506). 

Page | 21 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **11. INTANGIBLE ASSETS** 

||**2022**|
|---|---|
||**$**|
||_Archives_|
|**Cost**||
|At 1 January 2022|17,307|
|Additions|**-**|
|Disposals|**-**|
|**At 31 December 2022**|**17,307**|
|**Accumulated amortisation**||
|At 1 January 2022|17,307|
|Charge for the year|**-**|
|Disposals|-|
|**At 31 December 2022**|**17,307**|
|**Net Book Value**||
|At 1 January 2022|-|
|**At 31 December 2022**|-|



## **12. TANGIBLE ASSETS** 

||**2022**|
|---|---|
||**$**|
||_Furniture &_|
||_equipment_|
|**Cost**||
|At 1 January 2022|63,079|
|Additions|-|
|Disposals|-|
|**At 31 December 2022**|63,079|
|**Accumulated amortisation**||
|At 1 January 2022|63,079|
|Charge for the year|-|
|Disposals|-|
|**At 31 December 2022**|**63,079**|
|**Net Book Value**||
|At 1 January 2022|-|
|**At 31 December 2022**|**-**|



Page | 22 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **13. DEBTORS** 

|Other debtors<br>Prepayments and accrued income<br>**Total debtors**|**2022**<br>**$**<br>784<br>20,526<br>**21,310**|**2021**<br> **$**<br>3,273<br>17,912|
|---|---|---|
|||**21,185**|



## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Accruals<br>Deferred income (note 15)<br>**Total creditors**|**2022**<br>**$**<br>4,248<br>275,120<br>**279,368**|**2021**<br>**$**<br>4,697<br>209,033|
|---|---|---|
|||**213,730**|



## **15. DEFERRED INCOME** 

|At 1 January 2022<br>Deferred in the year<br>Amounts used<br>**At 31 December 2022**|**$**<br>209,033<br>275,120<br>(209,033)|
|---|---|
||**275,120**|



Deferred income represents unrestricted grant income received in advance. 

Page | 23 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **16. FUNDS AND RESERVES** 

|CURRENT YEAR<br>Restricted funds –<br>Research projects<br>Unrestricted funds<br>PRIOR YEAR<br>Restricted funds –<br>Research projects<br>Unrestricted funds|**Balance at 1**<br>**January 2022**<br>**$**<br>113,814<br>369,153<br>**482,967**<br>**Balance at 1**<br>**January 2021**<br>**$**<br>-<br>351,944<br>**351,944**|**Incoming**<br>**resources**<br>**$**<br>481,707<br>661,342<br>**1,143,049**<br>**Incoming**<br>**resources**<br>**$**<br>408,675<br>847,895<br>**1,256,570**|**Resources**<br>**expended**<br>**$**<br>(562,949)<br>(1,026,427)<br>**(1,589,376)**<br>**Resources**<br>**expended**<br>**$**<br>(297,588)<br>(827,959)<br>**(1,125,547)**|**Transfers**<br>**$**<br>-<br>-<br>**-**<br>**Transfers**<br>**$**<br>2,727<br>(2,727)<br>**-**|**Balance at 31**<br>**December 2022**<br>**$**<br>32,572<br>4,068|
|---|---|---|---|---|---|
||||||**36,640**|
||||||**Balance at 31**<br>**December 2021**<br>**$**<br>113,814<br>369,153|
||||||**482,967**|



**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. 

Page | 24 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts For the Year Ended 31 December 2022 

## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|**Unrestricted funds**<br>**2022**<br>**$**<br>Tangible assets<br>-<br>Current assets<br>63,436<br>Current liabilities<br>(59,368)<br>**4,068**<br>**Unrestricted funds**<br>**2021**<br>**$**<br>Tangible assets<br>-<br>Current assets<br>582,883<br>Current liabilities<br>(213,730)<br>369,153|**Restricted funds**<br>**2022**<br>**$**<br>-<br>252,572<br>(220,000)<br>**32,572**<br>**Restricted funds**<br>**2021**<br>**$**<br>-<br>113,814<br>-<br>113,814|**Total**<br>**2022**<br>**$**<br>-<br>316,008<br>(279,368)|
|---|---|---|
|||**36,640**|
|||**Total**<br>**2021**<br>**$**<br>-<br>696,697<br>(213,730)|
|||482,967|



## **18. RECONCILIATION OF NET MOVEMENTS IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|Net income for the year<br>**ADJUSTMENTS FOR:**<br>Depreciation charges<br>Dividends, interest, and rents from investments<br>(Increase) / decrease in debtors<br>Increase / (decrease) in creditors<br>**NET CASH USED IN INVESTING ACTIVITIES**|**2022**<br>**$**<br>**(446,327)**|2021<br>$ 131,023|
|---|---|---|
||**-** <br>**-**<br>**(125)**<br>**65,638**|<br>10,163<br>(69)<br>(9,286)<br>127,544|
||**(380,814)**|259,375|



Page | 25 



DocuSign Envelope ID: 8A831C3F-2D50-4B17-A8EA-DD3C3DD0F6D6 

## **Centre for Lebanese Studies** 

## Notes to the accounts 

## For the Year Ended 31 December 2022 

## **19. ANALYSIS OF CHANGES IN NET DEBT** 

|Cash at bank and in<br>hand|**At 1**<br>**January**<br>**2022**<br>**$**<br>675,512<br>675,512|**Cashflows**<br>**$**<br>(380,814)<br>(380,814)|**At 31**<br>**December**<br>**2022**<br>**$**<br>**294,698**|
|---|---|---|---|
||||**294,698**|



## **20. RELATED PARTY TRANSACTIONS** 

During the year, transfers amounting to $869,794 (2021: $589,937) were paid to an affiliated NGO entity Education Dev. Center in Lebanon, established to hire local staff and enable CLS to fulfil its objectives. 

During the year, donations amounting to $119,452 were received from two trustees to then be paid out as scholarships (2021: one trustee amounting to $52,773). 

Page | 26