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2020-12-31-accounts

Company Registration No. 01215037 (England and Wales) Registered charity number: 801026

THE ARAB BRITISH CENTRE (A Not For Profit Company Limited By Guarantee)

DIRECTORS' AND TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CHANTER, BROWNE & CURRY

Chartered Accountants

1 Plato Place 72-74 St Dionis Road London SW6 4TU.

THE ARAB BRITISH CENTRE

CONTENTS

Page
Report of the trustees and directors 1 - 9
Report of the independent auditors 10 - 12
Statement of financial activities 13
Balance sheet 14
Notes to the financial statements 15 - 22

THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees who are also directors of the charity for the purposes of the Companies Act, present their report and the financial statements for the year ended 31 December 2020 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition - October 2019) - (Charity SORP (FRS 102) Revised).

Objectives and Activities

The charity's objects are to advance the education of the British public in the culture, art, science, religion, economy and contemporary history of the Arab world including by providing and maintaining a centre (hereafter referred to as "The Centre") for the dissemination of such information.

The charity owns and maintains a six-storey property at 1 Gough Square, off Fleet Street in central London, which houses The Centre. A number of organisations having objects similar to the The Arab British Centre are housed at The Centre, and contribute towards the costs related to the office space they occupy and the facilities they use.

The Arab British Centre has a specialised library - mainly in English - about the history, politics, arts and culture of the Arab World. The library has been compiled over many years and includes an extensive collection of Arabic fiction titles in English Translation as well as essential out of print books rarely available elsewhere. The library is a public borrowing library.

The charity organises and promotes Arab-related arts and cultural events in the UK. It hosts a regular programme of activities including Arabic language courses, Arabic calligraphy and oud music courses. The Centre houses permanent and temporary collections of contemporary art inspired by the Arab world and recognises individuals and organisations working in similar fields through its Award for Culture. In addition to the charity’s regular on-site activities, it has produced a number of one-off projects in external locations and supports other organisations through its grants programme.

In planning its activities for the year, the charity's trustees have considered the Charity Commission's general guidance on public benefit.

Achievements and Performance

The Arab British Centre continued to expand its programme reach across the United Kingdom and support Arab artists and organisations based in the UK and the Arab world. The Covid-19 pandemic forced the Centre to close its doors to the public for the first time in 43 years, however the team quickly devised an online programme of events to stay connected to its audiences and continued its mission to disseminate arts and culture from the Arab world throughout the year. The Executive Director went on maternity leave in August, a new staff member was hired on a 12-month contract to support the team in the Director’s absence.

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THE ARAB BRITISH CENTRE REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance (continued)

Cultural Programme

In January, the year began with the continuation of London’s Theatre of The East (LTOTE), an exhibition in collaboration with Dr Johnson’s House. LTOTE was an exploration of the historical connections between London, the Middle East and North Africa, and the Eastern Mediterranean from the 16th century onwards. A public programme of events accompanied the exhibition with commissioned artists Nour Hage, Hannah Khalil, Lena Naassana and Saeida Rouass discussing their work and artistic and creative process behind each commission. The exhibition closed to the public on 15 February with over 3,500 visitors. The project was funded by the City of London Corporation.

In February, the Arab British Centre collaborated with Belfast Exposed to present ‘Murmur’ by Ben Malcolmson, an artist in the Belfast Exposed Futures programme. Ben was one the four UK artists nominated to take part in Making Marks in 2019. ‘Murmur’ is an exhibition that delves into the connection of migration and selfhood, looking at the subtle changing relationship within one’s identity and nature. The exhibition ran from 6-29 February.

In March, due to the Covid-19 pandemic, the Centre closed its door to the public and resumed all cultural activities online. The ‘Friday Hangout’ was rapidly devised by the Arab British Centre days after the UK went into lockdown. The Hangouts were created to encourage a sense of cultural community during the Covid-19 outbreak, and offer a platform for guests to reflect on the lockdown and talk about their work in a time when for many it had been severely uprooted. Over 12 weeks, hundreds of people attended the weekly programme with guests that included film maker Saeed Taji Farouky, chef Sami Tamimi, artists Manal AlDowayan, Amado Alfadni and Ghadah Alkandari, actor Youssef Kerkour, organisations Liverpool Arab Arts Festival and MARSM, writer Selma Dabbagh, and many more. Over 550 people attended the Hangouts over the 12 episodes which ran until June.

The Arab British Centre team had also planned to travel to Kuwait to deliver an exhibition in Kuwait City to showcase the works of eight artists who took part in the 2019 programme Making Marks. Making Marks was a collaboration with the British Council and ran as an exchange programme between young creatives and artists in the UK and Kuwait. The programme encouraged artists to consider the positive impact of international working and exchange, and the ways in which this shapes our own societies. The programme actively challenged stereotypes of our respective cultures and highlighted the similarities, differences, and universal challenges facing emerging creatives the world over. Working in partnership with arts institutions in Kuwait and the four UK regions, Making Marks facilitated group visits for nominated artists to Kuwait and the UK, and offered funding for artistic, creative and community engagement programmes under the project’s themes.

As the world went into sudden lockdown and all activity had to cease, the team devised a strategy to build a website that would become the home of all the Making Marks commissions. In lieu of a physical exhibition, the works now have a permanent digital exhibition platform (www.makingmarks.uk).

Additionally, the Centre developed a new strand of the Making Marks programme called Connect ME, a collaborative digital residency programme focused on connecting artists aged 18-30 based in the GCC countries (Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, Saudi Arabia) and the United Kingdom. It was devised by the Arab British Centre as a way to stimulate international connections and creativity despite the restrictions on movement that the COVID-19 pandemic enforced throughout 2020.

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THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance (continued)

Making Marks artist Emii Alrai took part in an online panel on Artist Support Structures at The Hepworth Wakefield, along with artists Rosanne Robertson and Connor Shields and Helen Pheby from Yorkshire Sculpture Park, where she discussed her experience in the Making Marks programme. Additionally, Making Marks artist Sïan Rees-Astley presented and discussed her work generated from ‘Making Marks: Creating Connections from Britain to Kuwait’, in an online artist talk with MOSTYN Director Alfredo Cramerotti. A conceptual artist, Sïan has produced gilded sculptural work in response to the project’s themes and her trip to Kuwait, and has also delivered workshops at MOSTYN in gilding.

Other programmes in March included a partnership with Arts Canteen’s Women Artists Now Festival (AWAN). Two online workshops took place: Data Visualisation with information designer Amina Salama and Art Writing with Aimee Dawson, journalist at The Arts Newspaper.

In April, the Centre collaborated with Modern Films to present Haifa Al Mansour’s online release of her latest feature film The Perfect Candidate. Al Mansour also took part in an online Q&A with author and journalist Malu Halasa. The event was attended by 65 people via Zoom.

In May, the Centre invited Jacob Halpin to present his new book Thirteen Ways to Make a Plural: Preparing to Learn Arabic, designed to help new students make a success of learning Arabic. During the live online session, Halpin talked about issues that new Arabic learners typically grapple with. Halpin is a British diplomat who learned Arabic with the British Foreign and Commonwealth Office, studying at the School of Oriental and African Studies and at language centres in Jordan and Lebanon. Over 60 people joined the event via Zoom.

In June, the Arab British Centre launched an open call for the Connect ME digital residency programme and received over 60 applications. The artists selected were Rawan AlMahrouqi (Oman) and Alexis Maxwell (UK), and Alaa Tarabzouni (KSA) and Ellie Niblock (UK). The Residency mentor was Dr Alfredo Cramerotti, director of MOSTYN Gallery in North Wales.

Over a four-week digital “residency”, Connect ME paired an artist based in the UK with an artist based in the GCC to create new, collaborative work that considers how digital tools can encourage connectivity across borders. The results could be anything from an augmented reality experience to a short film, a zine, a live performance – the only stipulation was that it had to be delivered to the public through digital channels.

The selected artists worked collaboratively in pairs to create digital work. Ellie Niblock and Alaa Tarabzouni created With Love From Nowhere , a project exploring both the digital and physical environment through the lens of sculpture and architecture. Alexis Maxwell and Rawan AlMahrouqi created Hair, Poetry, a beautiful piece that combined spoken word and animation around the role of hair, identity and autonomy.

All participating artists were surveyed about their experience of the residency:

“This residency was unique in allowing me to explore my culture in parallel to another artist. The open theme allowed us to find the roots of our individual practices and explore the way these narratives could tangle. The mentorship was relaxed but encouraging, making the project feel like a platform to try work that felt truly intercultural; carrying less of the colonial appropriation that sometimes occurs in work spread through British platforms. Having been the first digital residency I’ve been apart of, I found it easier to communicate with my partnered artist and it was refreshing to be encouraged to work closely instead of making separate pieces in response to each other.” - Alexis Maxwell

“I really loved meeting and working with Alexis, it’s a really special thing to create an artwork with someone. I feel like the online aspect of it kind of makes you feel more comfortable somehow... I am very grateful to have been part of [Connect ME], it has been a great learning experience and I enjoyed it very much.” - Rawan AlMahrouqi

“[My favourite part of the residency was] Connecting with another artist, the blind pairing was interesting.” - Alaa Tarabzouni

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THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance (continued)

I was surprised to work so well with another artist online. I did not expect to work on such an ambitious project. Working one on one with another artist was a great experience for me. I know now that it suits my style of working and would definitely be eager to do it again.

I learnt how to work with new software such as Rhino. I also improved my skills in working with site building (SquareSpace). Discussing the project with Alfredo helped me to build on my communication skills.” - Ellie Niblock

Throughout the summer, the Centre also hosted a programme of live events under the Making Marks programme:

14 July 2020: Exploring Creative Exchange (45 attendees)

Seven of the artists who took part in the Making Marks Kuwait exchange programme came together to showcase their creative responses and discuss the impact of the exchange on their creative practices. Speakers included Emii Alrai, Sarah Ismail Alsayed, Sheikha Al Habshi, Ben Malcolmson, Faye Al Mansour, Staneslas, and Sïan Rees Astley, chaired by Becky Harrison, Communications and Events Manager at the Arab British Centre.

21 July 2020: Why Digital Matters Workshop (42 attendees)

Workshop for young emerging artists led by artist Hydar Dewachi and dedicated to disseminating work online like a pro, through websites, mailing lists, and social media. The session concluded with a Q&A for attendees seeking advice on taking their own projects online.

22 July 2020: Digital Art Law (55 attendees)

This event was a workshop for a crash course in digital art law, covering the basics that emerging artists in the UK and the Gulf need to know when sharing their work online. This session was led by Fionnuala Rogers, an art and cultural heritage lawyer, founder of Canvas Art Law, a specialist law firm dedicated to supporting those in art and culture. Rogers is also a Trustee at the Arab British Centre.

2 September 2020: Connect ME Artist Talk (59 attendees)

Connect ME artists Alaa Tarabzouni, Ellie Niblock, Rawan AlMahrouqi and Alexis Maxwell offered their insight into their commissions and their experiences of the residency in a virtual Artist Talk. The discussion was chaired by Becky Harrison, Communications and Events Manager at the Arab British Centre.

Although plans had been well underway since the start of 2020 for the 5th edition of the SAFAR Film Festival, the programme had to change its course due to the Covid-19 pandemic. Most cinema venues and long-time partners of the festival remained closed to the public during the festival period, so the team devised an online programme of films and talks exclusively available online for free for audiences across the whole of the UK. The 2020 edition of SAFAR was curated by Berlin-based curator Rabih El Khoury and a new website was developed to host the digital edition: www.safarfilmfestival.co.uk.

SAFAR From Home , the 2020 festival’s theme, invited viewers to travel to and throughout the Arab World but also beyond, through their screens at home. The SAFAR From Home programme was composed of a multitude of distinct journeys. That of Réda, accompanying his father on a long pilgrimage to Mecca. That of Rabih, crisscrossing his country to retrieve his true identity. That of Zaineb, attempting to find a balance between her Canadian present and her Tunisian past.

The following films were selected as part of the final SAFAR From Home programme:

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THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance (continued)

Shorts Programme:

The following online discussions were delivered:

The festival attracted over 1,700 attendees and over £2,000 in donations were received. The festival was supported by the BFI Fan Covid-19 Resilience Fund and The Council of Arab Ambassadors.

In addition to the SAFAR Film Festival, The Arab British Centre ran a workshop for six early-career filmmakers. The Arab Film Development Workshop, hosted by SAFAR co-founder, Saeed Taji Farouky is a two-day project development workshop bringing together early career Arab filmmakers or filmmakers working on projects connected to the Arab world. Created as an intensive and collaborative experience, participants receive in-depth mentorship exploring all aspects of a film project from the idea, to execution, to funding and distribution.

In November, The Arab British Centre collaborated once again with Modern Films to present Zeina Durra’s online UK release of Luxor, her latest fiction film. Zeina then took part in an online Q&A with journalist and writer Malu Halasa. The event was attended by 60 people who joined via Zoom.

Courses

The Arab British Centre continued to run its courses in Arabic Language with tutor Ibrahim Othman and Music with the Taqasim Music School. In March however, the courses had to resume online as the Centre closed its doors to the public and access to the building was restricted. Although the majority of courses easily transitioned to online learning, Calligraphy and History of Islamic Art & Architecture were temporarily on hold. Despite this difficult transition, over 312 students joined our online courses throughout the year.

Residents

One of the Arab British Centre’s founding mission is to support like-minded organisations and individuals working in Arab culture. Over the past 40 years, the Centre has supported more than thirty resident organisations by providing subsidised workspace. Today, resident and associate resident organisations continue to have the opportunity to grow and develop their work alongside like-minded individuals.

The residents contribute to quarterly service charges to support building maintenance costs. As the UK went into lockdown, the residents’ main activities were drastically affected by the pandemic. In light of the situation, the Arab British Centre increased their financial support and provided a further 50% reduction on their services charges over two quarters in 2020.

The following organisations and individuals are residents at the Arab British Centre: The Council for Arab British Understanding (CAABU), The Centre for Transnational Development and Collaboration (CTDC), The Friends of Edward Said Foundation (Pal Music), Shubbak Festival, Zaytoun, The Barakat Trust and Iraqi filmmaker Ashtar Al Khirsan. The Centre also hosts the following associate residents and supports them by providing a postal address and meeting room access; Arts Cabinet, BANIPAL Magazine, Friends of Birzeit University, the Saudi British Society, The British Tunisian Society and The Arab Puppet Theatre Foundation.

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THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial Review

The attached financial statements summarise the charity's transactions for the year ended 31 December 2020. Total funds for the year show a surplus of expenditure over income of £125,836. Adding the gain on the investments of £1,996 gives a net deficit for the year of £123,840. Total funds at 31 December 2020 amounted to £2,524,332, comprising £14,742 unrestricted income funds, and £2,509,590 endowment funds.

Principal funding sources

The charity's principal sources of funding are:-

Investment policy

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds. The charity has investments with Investec Wealth & Investment. The remainder of the charity's funds are held on bank deposit. The performance of the investments during the year has been satisfactory.

Reserves policy

The trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission.

The expendable endowment fund is a restricted capital fund which is held to ensure the long-term survival of the charity, with the Centre as a physical hub for those working to promote understanding of the Arab world and its culture.

Transfers from expendable endowment fund are made to income funds at the discretion of the trustees. The trustees aim only to make transfers to income funds sufficient to cover the running costs of the Centre for the forthcoming quarter.

The charity is hoping to continue to build on its success in increasing the range of events and other activities with which it is involved. The charity’s policy is to organise events and activities which meet the following criteria:-

1) Their direct costs are fully or substantially paid for out of sponsorship, donations or receipts; and 2) A risk assessment is carried out to ensure that any anticipated deficit on the event or activity is fully affordable out of the income fund.

Plans for future periods

The charity has adapted well to the impact of the Covid-19 pandemic. It has continued running its music and language courses on-line. It has also been able to continue many of its other activities.

The Board is constantly monitoring the ongoing impact of the Covid-19 pandemic and is taking appropriate steps to mitigate the effect on the charity's activities going forward.

When the Covid-19 pandemic passes, the trustees hope to continue to increase the number of lectures, talks, art displays and artistic performances that the charity will organise.

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THE ARAB BRITISH CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Reference and administrative details

Registered charity number 801026
Company number 1215037
Registered office and 1 Gough Square
principal place of business London
EC4A 3DE.
Our advisers
Auditors Chanter, Browne & Curry
Chartered Accountants
1 Plato Place
72-74 St Dionis Road
London SW6 4TU.
Bankers Santander
Business Banking Centre
Clarence House, Clarence Place
Newport, Gwent NP19 7UP.
Solicitors Russell-Cooke LLP
2 Putney Hill
London SW15 6AB.
Investment fund managers Investec Wealth & Investment Limited

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Sir Derek Plumbly KCMG (Chairman)

Mr Brian Constant C.B.E. (retired 31 January 2020) Ms Laila El Baradei (resigned 31 January 2020) Mr Saeed Taji Farouky Ms Randa Adel Ashmawi Mr Haroun Al-Mishwit Mrs Elizabeth Moriarty Mr Maher Maksoud Ms Fionnuala Rogers (appointed 1 June 2020)

Company Secretary

Mrs Nadia El-Sebai

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THE ARAB BRITISH CENTRE REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, Governance and Management

Governing document

The Arab British Centre is a charitable company limited by guarantee, incorporated on 5 June 1975 and registered as a charity on 17 February 1989. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. By a written resolution dated 28 June 2011, the trustees adopted new Articles of Association in order to reflect current legislation including the Companies Act 2006. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of the Council

The directors of the company are also charity trustees for the purpose of charity law and under the company's Articles are known as members of the Council. Under the requirements of the Articles of Association, the first board meeting of each calendar year shall be known as the retirement board meeting. At the third retirement board meeting since their last appointment, a trustee shall retire. They shall be eligible for re-appointment if they have served less than six years in office. A trustee who has served six or more years in office at the relevant retirement board meeting must retire and cannot be re-appointed until they have had a period of at least two years out of office, unless on the recommendation of the majority of the board the trustee is reappointed for one further consecutive term of duration to be determined by the trustees.

Unless otherwise determined by a General Meeting, the number of the members of the Council shall not be less than five nor more than twelve. Currently the only members of the charity are the members of the Council.

The Council seeks to ensure that only persons with an interest and knowledge of the Arab world are appointed as trustees. Extensive measures are in place to ensure that only trustworthy persons are appointed. These include taking up references and carrying out due diligence checks.

Trustee induction

The trustees receive documents relating to the rules and obligations of trustees as set out by the Charity Commission.

Organisational structure

The Arab British Centre has a Council of between 5 and 12 members who meet six times per year and are responsible for the strategic direction and policy of the charity. At present the Council has six members from a variety of backgrounds relevant to the work of the charity.

Risk management

The trustees actively review the major risks which the charity faces on a regular basis, especially now that the charity is seeking to expand its range of activities. The trustees believe that by ensuring that the investment funds are restricted to expenditure on the charity's core function of operating and maintaining The Centre, in line with the wishes of the original fund donors, adequate resources will be available to secure the charity's long term survival.

The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risks.

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THE ARAB BRITISH CENTRE REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Responsibilities of the Council

Company law requires the Council to prepare financial statements for each financial year. Under that law the Council have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Council must not approve the financial statements unless the trustees are satisfied that the financial statements give a true and fair view of the financial activities of the charity and of its financial position at the end of the year. In preparing these financial statements, the Council are required to:-

The Council is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006.

The Council is 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.

Auditors

A resolution proposing that Chanter, Browne & Curry be re-appointed as the charity's auditors, will be put to the Annual General Meeting.

Statement of Disclosure of Information to Auditors

As far as each of the trustees are aware, there is no relevant audit information of which the charity's auditors are unaware, and each trustee has taken all the steps that ought to have been taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Small company exemption

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

This report was approved by the board of directors and trustees on 16 June 2021 and is signed on its behalf.

……………………………………… Sir Derek Plumbly KCMG Chairman

Page 9

THE ARAB BRITISH CENTRE REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ARAB BRITISH CENTRE

Opinion

We have audited the financial statements of The Arab British Centre ("the charitable company") for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards for Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 18 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE ARAB BRITISH CENTRE

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ARAB BRITISH CENTRE (CONTINUED)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement "Responsibilities of the Council" set out on page 10, the trustees, who are also the directors of the charitable company for company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. We obtain an understanding of the legal and regulatory frameworks that are applicable to the entity, having determined that the most significant are those that relate to the financial reporting framework SORP (FRS 102) revised, the Companies Act 2006 and the Charities Act 2011. We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

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THE ARAB BRITISH CENTRE REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ARAB BRITISH CENTRE (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

...........................................................

Peter Browne (Senior Statutory Auditor) for and on behalf of Chanter, Browne & Curry 16 June 2021 Chartered Accountants Statutory Auditor

1 Plato Place 72-74 St Dionis Road London SW6 4TU.

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THE ARAB BRITISH CENTRE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

SUMMARY INCOME AND EXPENDITURE ACCOUNT

Notes
Income
1.3
Donations and grants
3
Charitable activities
4
Investments
5
Total incoming resources
Expenditure
1.4
Raising funds
Investment management costs
6
Charitable activities
6
Total expenditure
Net income/(expenditure) before gains/(losses) on
investments
Gains/(losses) on investments
7
Net income/(expenditure)
Transfers
Gross transfers between funds
9
Net movement in funds for the year
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
income funds
£
73,127
113,739
325		 2020
Endowment
funds
£
-
-
20,387		 Total funds
£
73,127
113,739
20,712		 2019
Total
funds
£
89,729
123,909
30,999
187,191 20,387 207,578 244,637
-
312,045		 14,926
6,443		 14,926
318,488		 17,416
377,188
312,045 21,369 333,414 394,604
(124,854)
-		 (982)
1,996		 (125,836)
1,996		 (149,967)
241,681
(124,854)
120,000		 1,014
(120,000)		 (123,840)
-		 91,714
-
(4,854)
19,596		 (118,986)
2,628,576		 (123,840)
2,648,172		 91,714
2,556,458
14,742 2,509,590 2,524,332 2,648,172

The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.

Page 13

THE ARAB BRITISH CENTRE

BALANCE SHEET AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors:amounts falling due within one year
13
Net current assets
Net assets
Funds of the charity
Endowment funds
15, 16
Unrestricted income funds
15, 16
Total charity funds		 Income funds
£
-
30,000		 2020
Endowment
funds
£
858,468
1,409,433		 Total funds
£
858,468
1,439,433
2,297,901
6,176
254,451
260,627
34,196
226,431
2,524,332
2,509,590
14,742
2,524,332		 2019
Total
funds
£
864,977
1,773,781
30,000 2,267,901 2,638,758
6,176
12,762		 -
241,689		 5,974
36,463
18,938
34,196		 241,689
-		 42,437
33,023
(15,258) 241,689 9,414
14,742 2,509,590 2,648,172
2,628,576
19,596
2,648,172

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and trustees on 16 June 2021.

…………………………….. …………………………….. Sir Derek Plumbly KCMG Mr Maher Maksoud Chairman Trustee

Company Registration Number: 01215037

Page 14

THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year, except where noted.

1.1 Basis of accounting

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) - (Charity SORP (FRS 102) Revised), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The company meets the definition of a public benefit entity under FRS102.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of listed investments.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

1.2 Fund accounting

The company has two separate funds:-

(1) An expendable endowment. Transfers to income funds can be made at the discretion of the trustees.

(2) General unrestricted income fund available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

1.3 Incoming resources

These are included in the Statement of Financial Activities when:-

Donations are recorded as income in the accounting period in which they are received, except where the donor specifies that they should be used for a specific period.

Investment income is included in the financial statements when receivable.

1.4 Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Costs of generating funds comprise the investment funds management charges.

Governance costs represents auditors' remuneration.

All other expenditure is included under charitable expenditure. It comprises the cost of operating The Centre.

Page 15

THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1.5 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost on a straight line basis over the expected useful lives, as follows:-

Freehold building - 100 years Fixtures and fittings - 5 years Computers - 3 years

No depreciation is provided on freehold land.

1.6 Investments

Fixed asset investments are revalued at mid-market value at the balance sheet date and the gain or loss on revaluation is taken to the Statement of Financial Activities.

1.7 Debtors

Debtors are recognised at the settlement amount due after any discount offered.

1.8 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

2 Legal status

The charity is a private company limited by guarantee and has no share capital. The company is registered in England and Wales. 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.

Page 16

THE ARAB BRITISH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and grants received

Donations and grants received
Donations received
Grants received
Income from charitable activities
Contributions from users
Income from Arabic calligraphy classes
Income from Arabic classes
Income from music classes
Income from Islamic Art and Architecture
classes
Income from events and functions
Hire of boardroom
Library memberships		 2020 Total
funds
£
960
72,167
73,127
Total
funds
£
57,956
3,690
27,330
22,640
-
2,113
-
10
113,739		 2019
Income
funds
£
960
72,167		 Endowment
funds
£
-
-		 Total
funds
£
1,028
88,701
73,127 - 89,729
2020 2019
Income
funds
£
57,956
3,690
27,330
22,640
-
2,113
-
10		 Endowment
funds
£
-
-
-
-
-
-
-
-		 Total
funds
£
73,358
3,300
15,663
26,597
3,200
820
911
60
113,739 - 123,909

4 Income from charitable activities

A number of organisations with similar objects to the charity, occupy the majority of the charity's property, and their presence is financially underwritten by the charity. The organisations contribute towards the costs related to the office space and facilities which they use.

5 Investment income

Investment income
Bank interest received
Dividends received from listed investments:-
- UK investments
- overseas investments
Interest received from UK listed investments		 2020 Total
funds
£
325
16,889
3,157
341
20,712		 2019
Income
funds
£
325
-
-
-		 Endowment
funds
£
-
16,889
3,157
341		 Total
funds
£
90
24,887
5,693
329
325 20,387 30,999

Page 17

THE ARAB BRITISH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Expenditure on charitable activities

Costs of raising funds
Investment management costs
Charitable activities
Cost of operation of the Centre:-
Depreciation
Repairs and maintenance
Staff costs:-
- gross wages and salaries
- employers' NICs
- pension contributions
Office and other costs
Events, festivals and functions
Governance costs
Auditors' remuneration		 2020 Total
funds
£
14,926
6,509
14,426
133,742
10,177
8,040
77,861
62,513
313,268
5,220
318,488		 2019
Income
funds
£
-		 Endowment
funds
£
14,926		 Total
funds
£
17,416
66
14,426
133,742
10,177
8,040
77,861
62,513		 6,443
-
-
-
-
-		 7,775
22,797
125,008
9,517
7,500
83,224
116,387
306,825
5,220		 6,443
-		 372,208
4,980
312,045 6,443 377,188

No trustees received any remuneration. No trustees were reimbursed for expenses during the year.

No employee was paid more than £60,000 in the year. The average number of employees during the year was 4 (2019: 3).

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension contributions charge represents contributions payable by the company to the fund.

7 Gains/(losses) on investments

Gains/(losses) on sale of investments
Gains/(losses) on revaluation of investments		 2020 Total
funds
£
259,363
(257,367)
1,996		 2019
Income
funds
£
-
-		 Endowment
funds
£
259,363
(257,367)		 Total
funds
£
71,603
170,078
- 1,996 241,681

8 Taxation

As a charity, The Arab British Centre is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the two years ended 31 December 2020.

Page 18

THE ARAB BRITISH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Transfers between funds

Net transfers from investment
funds to cover costs of operation
of The Centre
10 Tangible fixed assets
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
On disposals
Charge for the year
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019		 Freehold
land and
buildings
£
1,288,633
-
-		 Unrestricted
income funds
£
120,000		 2020
Endowment
funds
£
(120,000)		 Total funds
£
-
Fixtures and
fittings
£
11,867
-
-		 Computers
£
9,030
-
-		 Total
£
1,309,530
-
-
1,288,633 11,867 9,030 1,309,530
423,722
-
6,443		 11,801
-
66		 9,030
-
-		 444,553
-
6,509
430,165 11,867 9,030 451,062
858,468 - - 858,468
864,911 66 - 864,977

The trustees have reviewed the value of the freehold land and buildings. They are of the opinion that the market value at 31 December 2020 was not less than the net book value shown above.

Page 19

THE ARAB BRITISH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

11 Fixed asset investments

Investec Wealth & Investment
At 1 January 2020 at valuation
Additions at cost
Disposals at cost
Net gain/(loss) on revaluation
At 31 December 2020 (cost = £1,324,730)
Total investments
Total value of investments at 31 December 2020
Less: cash at brokers (included under current assets)
Fixed asset investments at 31 December 2020
The above investments are held to provide an investment return for the charity.
UK assets comprise 100% of the value of the fixed asset investments as at
31 December 2020.		 £
1,773,781
1,568,512
(1,645,493)
(257,367)
1,439,433
Total
£
1,681,122
241,689
1,439,433
12 Debtors
Contributions receivable
Prepayments		 2020
£
3,660
2,516		 2019
£
5,974
-
6,176 5,974

Page 20

THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Creditors: amounts falling due within one year
Taxation and social security
Accruals
Deferred income (see note 14)
Other creditors		 2020
£
2,969
6,110
11,187
13,930		 2019
£
3,550
5,765
9,725
13,983
34,196 33,023

14 Deferred income

Deferred income comprises contributions from users received in advance.

Balance at 1 January 2020
Amount released to income earned from charitable activities
Amount deferred in year
Balance at 31 December 2020		 2020
£
9,725
(9,725)
11,187		 2019
£
2,701
(2,701)
9,725
11,187 9,725

15 Analysis of net assets between funds

Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 December 2020
Movement in funds
Balance at 1 January 2020
Incoming resources
Resources expended
Gains/(losses) on investments
Transfers
Balance at 31 December 2020		 Income funds
£
30,000
-
18,938
(34,196)		 Expendable
endowment
funds
£
828,468
1,439,433
241,689
-		 Total funds
£
858,468
1,439,433
260,627
(34,196)
14,742 2,509,590 2,524,332
Income funds
£
19,596
187,191
(312,045)
-
120,000		 Expendable
endowment
funds
£
2,628,576
20,387
(21,369)
1,996
(120,000)		 Total funds
£
2,648,172
207,578
(333,414)
1,996
-
14,742 2,509,590 2,524,332

16 Movement in funds

Page 21

THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17 Related party disclosures

There were no related party transactions for the year ended 31 December 2020.

18 Auditors' ethical standards

In common with many companies of our size and nature we use our auditors to assist with the preparation of the financial statements.

Page 22