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 2021
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 - 10 |
| Report of the independent auditors | 11 - 13 |
| Statement of financial activities | 14 |
| Balance sheet | 15 |
| Notes to the financial statements | 16 - 22 |
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021 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 continued well into the first quarter of 2021 with a government lockdown extended until April. The Centre kept its doors closed to the public during that time, however the team continued to carry out the majority of its cultural programme digitally via online platforms, enabling them to stay connected to its audiences and continue its mission to disseminate arts and culture from the Arab world throughout the year.
Page 1
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and Performance (continued)
January- February- March
Making Marks Digital Residency
The year began with the second iteration of the Making Marks Digital Residency 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 and 2021. Over a four-week digital “residency”, Connect ME pairs 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 is it must be delivered to the public through digital channels.
The Winter Residency ran from February – March 2021. Following an open call, the artists selected were Dina Khatib (UAE) and Ollie Cameron (UK), and Meshal Al-Obaidallah (KSA) and Carolin Schnurrer (UK). This edition of the Connect ME residency was led by mentor Manal AlDowayan, a multi-media artist from Saudi Arabia who is equally recognised for her work in sound, video, neon, and sculpture. Each artwork created as part of Connect ME was hosted on the Making Marks website, either as an embedded video or as a platform to visit a specially created website by the artists.
The following commissioned works were created as part of the programme:
- FAREWELL ARABIA: A Bold New Vision by Carolin Schnurrer and Meshal Al-Obaidallah
With 4,500 kilometres separating them, during their collaboration Meshal AlObaidallah (SA) and Carolin Schnurrer (UK) were only able to perceive each other’s cultures through lenses. This led to a digital exchange of memories, rituals, ideas, and anecdotes.
Meshal’s practice is very much grounded in his own geographic locale, by archiving current affairs of his region. Carolin’s practice is at a more primal sensory level, establishing connections tha surpass the limits of borders, culture, language, and other categories of exclusion. Together, they sought to recalibrate perceptions of ‘the other’ culture. In their work, FAREWELL ARABIA: A Bold New Vision, they explored the Arabian Peninsula through the lenses of orientalism (externally) and provincialism (internally). How is ‘the other’ perceived from a distance?
FAREWELL ARABIA: A Bold New Vision is centred around an old post-colonial British documentary, set in the Arabian Peninsula of the previous century. In the documentary, the narrator tells of the sudden development of Arabia, in the wake of the oil boom, its impact on society, and the uncertain future. Similarly, FAREWELL ARABIA: A Bold New Vision recycles history to tell of the current changing landscape, urban rezoning, and the colossal giga-projects. Who does this culture belong to? Who is it changing for? What kind of culture will be left?
Page 2
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and Performance (continued)
Through their exchange, Meshal and Carolin collected found footage, sound bites, quotes, symbols, and other fragments. These reappropriated fragments were processed, destroyed, accelerated, decelerated, and rearranged. This mishmash of fact and fiction prompted a not-so-new understanding of the region. With a focus on audio and text, the collage is presented as a story on an experimental website, narrated by an inhuman voice.
• Articles of Exceptional Value by Dina Khatib and Ollie Cameron
What does distance look like? Articles of Exceptional Value is a collaborative effort by two artists to document the 5,597 km distance between them. In a time where physical forms of communication are heavily restricted, Dina and Ollie explored how visualising the unseen space between them could become a means for connection and exchange. Over the course of a month, they posted a series of packages to each other between the UK and Dubai, each one containing an unusual drawing device that gathered intricate data of its journey. In both countries the postal services have long lists of prohibited items, including sending art. In response to this, each artwork’s title is inspired by a different prohibited item from these lists.
The postal services also include the prohibition of sending “articles of exceptional value”. Every time a package was mailed, the artists were required to declare the monetary value of each box. Dina and Ollie chose this to be the title for the body of work, as they found that with every mark generated over time, the packages gained an alternative form of value; an unrepeatable recording of the 5,597km distance connecting them.
Closing programme: online talk (81 attendees)
Connect ME Winter Residency artists Meshal Al-Obaidallah, Carolin Schnurrer, Dina Khatib, and Ollie Cameron were joined by mentor Manal AlDowayan for a presentation of their works created and a discussion on digital collaboration.
February – March
Friday Hangouts: MENA Arts UK Takeover
The first series of the Friday Hangouts ran from March – August in 2020. Rapidly devised days after the UK went into lockdown in March 2020, 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.
In 2021, the Arab British Centre collaborated with MENA Arts UK to bring the Hangouts back in a brand new series of four online episodes, focusing on platforming MENA+ professionals (Middle East, North Africa and surrounding area) working in the live and recorded arts.
The programme welcomed to the Hangouts:
5 February: Sally El Hosaini, a feature film writer/director whose acclaimed debut feature, My Brother The Devil, picked up major prizes at Sundance, Berlin and London Film Festivals. (62 attendees)
19 February: Abi Zakarian, an award-winning British-Armenian writer whose plays include Perfect Myth Allegory, produced by Jermyn Street Theatre; I am Karyan Ophidian, produced by Shakespeare’s Globe Theatre; and Fabric, produced by Tremers for Edinburgh Fringe Festival 2016, winning a Fringe First Award. (54 attendees)
Page 3
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and Performance (continued)
5 March: Amir El-Masry, an award winning British Egyptian actor who has most recently been named a BAFTA Breakthrough Brit and earned a Best Actor nomination for his lead performance in the critically acclaimed feature film, Limbo. (77 attendees)
19 March: Khyam Allami, an Iraqi-British multi-instrumentalist musician, composer, researcher and founder of Nawa Recordings. (62 attendees)
April
Online Event - We Wrote in Symbols
We Wrote in Symbols , published by Saqi Books, celebrates the works of 75 female writers of Arab heritage who articulate love and lust with artistry and skill. For the online event, a sensational line up of writers read and discussed their work, sharing how they convey the complexities and intrigues of desire. Speakers included Selma Dabbagh, Joumana Haddad, Lisa Luxx, Saeida Rouass, Yasmine Seale and Hanan alShaykh.
April - October
Jarda Project - Arab Britain
Jarda is a visual arts project led by artist and curator Jessica El Mal. It was created as part of the Arab British Centre’s Arab Britain programme which explores the history, achievements and experiences of Arabs in Britain, past and present. El Mal’s practice regularly centres around ecology, the environment and migration. Her inspiration for Jarda came when the UK was still in lockdown and when parks, fields and forests became our only outing. Following a call out in May for women to take part as co-producers in the project, across June and July El Mal led 6 workshops, 5 of which were outdoors in Manchester and Salford’s green spaces including The Royal Horticultural Society’s Garden Bridgewater, Peel Park and We Are Mud’s allotment.
Co-producers Maryam Alsaeid, Hibah Ali, Sanaa Sedaki, Hana Masaarane, Reem Alazemi and Soraya Agaoglu created artwork at these gardens using photography, collage, self-portraiture, screen-printing and more.
The installation they created to display their work at the People’s History Museum in Manchester invited visitors on an immersive walk in nature through Arab British eyes. The exhibition ran from 21 July-10 October 2021 attracted over 10,000 visitors.
June - July
SAFAR Film Festival 1-17 July
The SAFAR Film Festival is the only festival in the UK dedicated to cinema from the Arab world. Founded in 2012 and running biennially since then, SAFAR offers a unique space for audiences to connect with, explore, and celebrate the diversity of Arab cinema past, present, and future.
In 2021, SAFAR collaborated with the Shubbak Festival to present their film programme. 2020 should have seen the fifth edition of the SAFAR Film Festival return to cinemas however, due to the pandemic, a digitalonly offer brought audiences together online instead. The 6th hybrid edition of SAFAR offered film lovers the opportunity to enjoy a curated programme of Arab cinema both on the big screen and at home.
Page 4
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and Performance (continued)
The 2021 edition of SAFAR was curated by Rabih El-Khoury around the theme of Generational Encounters in Arab Cinema, showcasing contemporary and classic films with emergent youth, familial disparities and societal tensions at their centre. 10 years ago popular revolts took over the Arab region and thousands headed to the streets to instigate change in their respective societies. Generational Encounters reflected on the legacy of these protests by focussing on stories of personal revolution, the kind that unfold daily in households across the region and beyond: ordinary people pushing back against patriarchy, challenging social inequality, and dreaming of change.
An online events programme further illuminated the theme, inviting directors, industry leaders, and other creatives for Q&As and panel discussions accessible globally. Total festival attendance 1,100.
The programme included the following films:
Feature Films and Documentaries
Souad directed by Ayten Amin + Q&A Adam directed by Maryam Touzani The Dream directed by Mohamad Malas +Q&A A Son directed by Mehdi M. Barsaoui The Blessed directed by Sofia Djama +Q&A We Are From There directed by Wissam Tanios +Q&A Their Algeria directed by Lina Soualem +Q&A Let’s Talk directed by Marianne Khoury +Q&A You Will Die At Twenty directed by Amjad Abu Alala Lift Like A Girl directed by Mayye Zayed +Q&A 200 Meters directed by Ameen Nayfeh +Q&A
Short Films Programme
I Am Afraid to Forget Your Face directed by Sameh Alaa Maradona’s Legs directed by Firas Khoury So What If The Goats Die directed by Sofia Alaoui Al-Sit directed by Suzannah Mirghani
Online Programme
Sugar Cage directed by Zeina Alqahwaji My English Cousin directed by Karim Sayad The Swing directed by Cyril Aris Little Wars directed by Maroun Bagdadi Room For A Man directed by Anthony Chidiac
Online Programme of Talks
11 July: Focus on Sudanese Cinema with guests Talal Afifi, Abu Alala and Suzannah Mirghani in conversation with Rabih El Khoury
15 July: There’s No Place Like Home with guests Zeina Alqahwaji, Anthony Chidiac and Cyril Aris in conversation with Rabih El Khoury 17 July: Chronicle of An Exile with guest Karim Sayyad in conversation with Rabih El Khoury
Page 5
THE ARAB BRITISH CENTRE REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and Performance (continued)
September
Arab Film Development Workshop
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. Participants were Walid Elgadi, Leith Elzubaidi, Natali Khalili Tari, Olivia Melkonian, Zeina Saleh and Ayeesha Starkey.
Courses
Throughout the year, the Arab British Centre continued to run its courses in Arabic Language with tutor Ibrahim Othman, Music with the Taqasim Music School, Calligraphy with Joumana Medlej and Art History with Roberta Marin. Courses ran online with some music courses also running at the centre. A new short course titled: Cairo in the Roaring 20s based on the book by author Raphael Cormack ran online for four weeks in May. Over 370 students registered for our 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 residents with further reductions on their quarterly service charges.
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.
Financial Review
The attached financial statements summarise the charity's transactions for the year ended 31 December 2021. Total funds for the year show a deficit of expenditure over income of £42,346. Adding the gain on the investments of £181,342 gives a net surplus for the year of £138,996. Total funds at 31 December 2021 amounted to £2,663,328, comprising £28,287 unrestricted income funds, and £2,635,041 endowment funds.
Page 6
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Principal funding sources
The charity's principal sources of funding are:-
(1) Charges for classes run by the charity:
(2) Contributions from resident organisations to the running costs of the Arab British Centre;
(3) Sponsorship and donations;
(4) Income from endowment funds and bank balances, including bank interest, dividends and interest on investments;
(5) Capital growth in investments.
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 adapted well to the impact of the Covid-19 pandemic. In 2021 it continued running its programme activities and courses on-line (and in hybrid fashion, when Covid restrictions eased) and gave necessary support to Centre residents.
The Board continues to monitor closely the impact of ongoing changes resulting from the pandemic and events since. A business plan for 2022 – 2023 has been drafted to outline priorities and mitigate negative impacts. For 2022 priority areas include expanding the reach of the SAFAR Film Festival and strengthening the Arab Britain programme. The trustees plan to continue to run courses and events online and in person, and to increase fundraising efforts particularly from trusts and foundations and sources of unrestricted income.
Page 7
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
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 Saeed Taji Farouky Ms Randa Adel Ashmawi Mr Haroun Al-Mishwit Mrs Elizabeth Moriarty Mr Maher Maksoud Ms Fionnuala Rogers
Company Secretary
Mrs Nadia El-Sebai
Page 8
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 seven 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.
Page 9
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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:-
-
select suitable accounting policies and then apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 14 September 2022 and is signed on its behalf.
……………………………………… Sir Derek Plumbly KCMG Chairman
Page 10
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 2021 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:
-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Page 11
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:
-
information given in the trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
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:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received
-
from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the trustees' report and from the requirement to prepare a strategic report.
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.
Page 12
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 noncompliance. 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 14 September 2022 Chartered Accountants Statutory Auditor
1 Plato Place 72-74 St Dionis Road London SW6 4TU.
Page 13
THE ARAB BRITISH CENTRE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
SUMMARY INCOME AND EXPENDITURE ACCOUNT
| Notes Income 1.4 Donations and grants 3 Charitable activities 4 Investments 5 Total incoming resources Expenditure 1.5 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 £ 68,001 125,035 6 |
2021 Endowment funds £ - - 86,626 |
Total funds £ 68,001 125,035 86,632 |
2020 Total funds £ 73,127 113,739 20,712 |
|---|---|---|---|---|
| 193,042 | 86,626 | 279,668 | 207,578 | |
| - 299,497 |
16,074 6,443 |
16,074 305,940 |
14,926 318,488 |
|
| 299,497 | 22,517 | 322,014 | 333,414 | |
| (106,455) - |
64,109 181,342 |
(42,346) 181,342 |
(125,836) 1,996 |
|
| (106,455) 120,000 |
245,451 (120,000) |
138,996 - |
(123,840) - |
|
| 13,545 14,742 |
125,451 2,509,590 |
138,996 2,524,332 |
(123,840) 2,648,172 |
|
| 28,287 | 2,635,041 | 2,663,328 | 2,524,332 |
The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
Page 14
THE ARAB BRITISH CENTRE
BALANCE SHEET AT 31 DECEMBER 2021
| 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 |
2021 Endowment funds £ 852,025 1,654,475 |
Total funds £ 852,025 1,684,475 2,536,500 4,496 168,000 172,496 45,668 126,828 2,663,328 2,635,041 28,287 2,663,328 |
2020 Total funds £ 858,468 1,439,433 |
|---|---|---|---|---|
| 30,000 | 2,506,500 | 2,297,901 | ||
| 4,496 39,459 |
- 128,541 |
6,176 254,451 |
||
| 43,955 45,668 |
128,541 - |
260,627 34,196 |
||
| (1,713) | 128,541 | 226,431 | ||
| 28,287 | 2,635,041 | 2,524,332 | ||
| 2,509,590 14,742 |
||||
| 2,524,332 |
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 14 September 2022.
…………………………….. …………………………….. Sir Derek Plumbly KCMG Mr Maher Maksoud Chairman Trustee
Company Registration Number: 01215037
Page 15
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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.
1.2 Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
1.3 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.
1.4 Incoming resources
These are included in the Statement of Financial Activities when:-
-
the charity becomes entitled to the resources;
-
the trustees are virtually certain they will receive the resources; and
-
the monetary value can be measured with sufficient reliability.
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.
1.5 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 fund's management charges.
Governance costs represents auditors' remuneration.
All other expenditure is included under charitable expenditure. It comprises the cost of operating the Centre.
Page 16
THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
1.6 Tangible fixed assets
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.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
1.7 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.
1.8 Debtors
Debtors are recognised at the settlement amount due after any discount offered.
1.9 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 17
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 Library memberships |
2021 | Total funds £ 960 67,041 68,001 Total funds £ 59,639 6,910 24,338 22,692 7,020 4,426 10 125,035 |
2020 | |
| Income funds £ 960 67,041 |
Endowment funds £ - - |
Total funds £ 960 72,167 |
||
| 68,001 | - | 73,127 | ||
| 2021 | 2020 | |||
| Income funds £ 59,639 6,910 24,338 22,692 7,020 4,426 10 |
Endowment funds £ - - - - - - - |
Total funds £ 57,956 3,690 27,330 22,640 - 2,113 10 |
||
| 125,035 | - | 113,739 |
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 |
2021 | Total funds £ 6 86,626 - - 86,632 |
2020 | |
| Income funds £ 6 - - - |
Endowment funds £ - 86,626 - - |
Total funds £ 325 16,889 3,157 341 |
||
| 6 | 86,626 | 20,712 |
Page 18
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 |
2021 | Total funds £ 16,074 6,443 17,623 130,450 8,938 6,889 57,431 72,646 300,420 5,520 305,940 |
2020 | |
|---|---|---|---|---|
| Income funds £ - |
Endowment funds £ 16,074 |
Total funds £ 14,926 |
||
| - 17,623 130,450 8,938 6,889 57,431 72,646 |
6,443 - - - - - |
6,509 14,426 133,742 10,177 8,040 77,861 62,513 |
||
| 293,977 5,520 |
6,443 - |
313,268 5,220 |
||
| 299,497 | 6,443 | 318,488 |
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 (2020: 4).
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 |
2021 | Total funds £ 13,919 167,423 181,342 |
2020 | |
|---|---|---|---|---|
| Income funds £ - - |
Endowment funds £ 13,919 167,423 |
Total funds £ 259,363 (257,367) |
||
| - | 181,342 | 1,996 |
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 2021.
Page 19
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 2021 Additions Disposals At 31 December 2021 Depreciation At 1 January 2021 On disposals Charge for the year At 31 December 2021 Net book values At 31 December 2021 At 31 December 2020 |
Unrestricted income funds £ 120,000 |
2021 Endowment funds £ (120,000) |
Total funds £ - |
|---|---|---|---|
| Freehold land and buildings £ 1,288,633 - - |
Fixtures and fittings £ 11,867 - - |
Total £ 1,300,500 - - |
|
| 1,288,633 | 11,867 | 1,300,500 | |
| 430,165 - 6,443 |
11,867 - - |
442,032 - 6,443 |
|
| 436,608 | 11,867 | 448,475 | |
| 852,025 | - | 852,025 | |
| 858,468 | - | 858,468 |
The trustees have reviewed the value of the freehold land and buildings. They are of the opinion that the market value at 31 December 2021 was not less than the net book value shown above.
Page 20
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
11 Fixed asset investments
| Investec Wealth & Investment At 1 January 2021 at valuation Additions at cost Disposals at cost Net gain/(loss) on revaluation At 31 December 2021 (cost = £1,402,349) Total investments Total value of investments at 31 December 2021 Less: cash at brokers (included under current assets) Fixed asset investments at 31 December 2021 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 2021. 12 Debtors 2021 £ Contributions receivable 1,830 Prepayments 2,666 4,496 13 Creditors: amounts falling due within one year 2021 £ Taxation and social security 6,881 Accruals 6,576 Deferred income (see note 14) 18,171 Other creditors 14,040 45,668 |
Investec Wealth & Investment At 1 January 2021 at valuation Additions at cost Disposals at cost Net gain/(loss) on revaluation At 31 December 2021 (cost = £1,402,349) Total investments Total value of investments at 31 December 2021 Less: cash at brokers (included under current assets) Fixed asset investments at 31 December 2021 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 2021. 12 Debtors 2021 £ Contributions receivable 1,830 Prepayments 2,666 4,496 13 Creditors: amounts falling due within one year 2021 £ Taxation and social security 6,881 Accruals 6,576 Deferred income (see note 14) 18,171 Other creditors 14,040 45,668 |
£ 1,439,433 183,353 (105,734) 167,423 |
|---|---|---|
| 1,684,475 | ||
| Total £ 1,813,016 128,541 |
||
| 1,684,475 | ||
| 2020 £ 3,660 2,516 |
||
| 4,496 | 6,176 | |
| 2021 £ 6,881 6,576 18,171 14,040 |
2020 £ 2,969 6,110 11,187 13,930 |
|
| 45,668 | 34,196 |
Page 21
THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
14 Deferred income
Deferred income comprises contributions from users received in advance.
| Balance at 1 January 2021 Amount released to income earned from charitable activities Amount deferred in year Balance at 31 December 2021 |
2021 £ 11,187 (11,187) 18,171 |
2020 £ 9,725 (9,725) 11,187 |
|---|---|---|
| 18,171 | 11,187 |
15 Analysis of net assets between funds
| Tangible fixed assets Investments Current assets Current liabilities Net assets at 31 December 2021 Movement in funds Balance at 1 January 2021 Incoming resources Resources expended Gains/(losses) on investments Transfers Balance at 31 December 2021 |
Income funds £ 852,025 30,000 43,955 (45,668) |
Expendable endowment funds £ - 1,654,475 128,541 - |
Total funds £ 852,025 1,684,475 172,496 (45,668) |
|---|---|---|---|
| 880,312 | 1,783,016 | 2,663,328 | |
| Income funds £ 14,742 193,042 (299,497) - 120,000 |
Expendable endowment funds £ 2,509,590 86,626 (22,517) 181,342 (120,000) |
Total funds £ 2,524,332 279,668 (322,014) 181,342 - |
|
| 28,287 | 2,635,041 | 2,663,328 |
16 Movement in funds
17 Related party disclosures
There were no related party transactions for the year ended 31 December 2021.
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