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 2023
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 - 7 |
| Report of the independent examiner | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 - 18 |
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
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 2023 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
This year the programme of activities focussed on scaling projects under the Arab Britain and SAFAR Film Festival, and deepening community and partnership relationships nationwide.
The first quarter focussed on developing and planning the activities for the "Kheit" project and exhibition and the SAFAR Film Festival, our largest festival to date, alongside a concerted effort on fundraising.
Early in the year, we commenced with the "Square Kufic Calligraphy" course, an online programme that ran from February to March. This course introduced 12 participants to the intricate art of Kufic script, an essential element of Islamic artistic tradition.
Page 1
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and Performance (continued)
In the spring, from April 28 to July 16, the Arab British Centre, in collaboration with Leighton House, hosted the "Kheit" exhibition. This project is the result of funding from the Barakat Trust’s ‘Hands On Islamic Art’ initiative that is supported by the Heritage Lottery Fund. The final showcase of the project exhibited work by textile artist Nour Hage and featured three main artworks inspired by the ornate tiles of the Arab Hall and the staircase hall at Leighton House. The exhibition also included "Her Rays" and "Sukun", pieces that drew from mosaic friezes by Walter Crane, and "Our Garden", a collaborative piece made with local residents. These artworks explored the threads connecting Britain and the Arab world during the 19th and early 20th centuries.
Complementing the exhibition was a robust programme of public events, including a "Stitch & Bitch" panel discussion on the role of women in textile creation, workshops on Palestinian embroidery, and a session titled "Rewriting History". This session allowed participants to engage with archival materials to explore the Arab presence in Victorian Britain. The exhibition attracted over 13,000 visitors and was supported by a comprehensive marketing campaign, reaching over a million people.
May saw the launch of the online course "Introduction to the History of Modern Iraqi Art". Led by Mysa Kafil-Hussain, this course delved into the evolution of Iraqi art from its early 20th-century roots to contemporary expressions, examining the significant socio-political impacts on Iraqi artists. The course featured discussions on early modern artists, influential artist collectives like the Baghdad Group for Modern Art, and the impact of political changes on the art scene. An optional field trip to the Ashmolean Museum further enriched the participants' understanding. This course saw the participation of 20 students.
In June, we conducted "The Musawwir's Palette", an in-person course by Jumana Medlej focusing on traditional and contemporary Arab painting techniques, which was attended by five students.
The highlight of July was the eighth edition of the SAFAR Film Festival, now the UK's largest celebration of Arab cinema, and our biggest festival to date. The 2023 edition, themed "A Journey Through Space and Time", featured 45 screenings of 28 films from 14 Arab countries across 12 venues in 9 cities (including London, Glasgow, Liverpool, Manchester, Plymouth, Cardiff, Oxford, Birmingham and Hull). The festival included 11 UK premieres and hosted 22 filmmakers and artists, attracting 3016 attendees and surpassing the previous year's audience by 72%. The festival’s thematic strands, such as 'City Tours' and a focus on contemporary Moroccan cinema, offered audiences unique insights into diverse Arab geographies and historical narratives. SAFAR ran in partnership with the Shubbak Festival, Cinema Akil (UAE), Gulf Photo Plus, Zaytoun and more. It was generously supported by the Bagri Foundation, the British Council, London Film Hub and the Council of Arab Embassies.
August marked the beginning of our Freelands Foundation funding period, during which we recruited Jessica El Mal as the Arab Britain curator. Jessica, a British-Moroccan curator, began her role in June and quickly immersed herself in developing her curatorial framework, commissioning and undertaking research, and building partnerships for the Arab Britain exhibition which is planned to take place in 2026. As early development of the Arab Britain exhibition, she delivered workshops as part of the "Kheit" project including "Rewriting History" held on 12 July at Leighton House Musuem.
Page 2
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and Performance (continued)
This workshop began with a self-guided tour of the ‘Kheit’ exhibition, followed by an interactive session where participants delved into scans of old newspapers, texts, and images sourced by artist Chahine Fellahi during a research residency at the Portico Library in Manchester. Using these materials, participants employed low-fi methods such as collage, embroidery, and annotation to create new artworks that critically engaged with historical narratives. This workshop, attended by 14 people, exemplified our approach to the Arab Britain project by making historical research accessible and creatively engaging for the communities it represents.
In quick response to the devastating war on Gaza following the October 7 Hamas attack on Israel, we organised the "Gather For Gaza" event at Grand Junction on 26 October. Over 375 people gathered for an evening of spoken word, music, and shared emotions, raising £8,722 for Medical Aid for Palestinians. This event, organised in collaboration with Arts Canteen and Shubbak Festival, not only raised funds but also reinforced community solidarity and support for Gaza.
Throughout the year, our educational programmes continued. The Taqasim Music School, with its three terms and a summer intensive course, catered to a significant number of students, providing comprehensive music education. Term 1, running from January to April, had 52 students; Term 2, from May to August, had 38 students; and Term 3, from September to December, saw 43 students. The summer intensive course in August had three participants.
In total, our courses for 2023 reached 173 students across various disciplines. These included the "Introduction to the History of Modern and Contemporary Iraqi Art" with 20 students, "Square Kufic Calligraphy" with 12 students, "The Musawwir's Palette" with five students, and the Taqasim Music School with a cumulative 136 students. These courses played a crucial role in promoting Arab culture and heritage, providing participants with in-depth knowledge and hands-on experience in their respective fields.
The year concluded with a focus on developing artist commissions by Ali Al Jamri and Sarah Sarraj for Arab Britain, submitting funding applications, and building further partnerships for all projects. Despite the challenges posed by ongoing events in Gaza, our commitment to cultural programming and community engagement remained steadfast, ensuring that our work continued to make a meaningful impact.
Financial Review
The attached financial statements summarise the charity's transactions for the year ended 31 December 2023. Total funds for the year show a deficit of expenditure over income of £96,282. Deducting the gain on the investments of £17,614 gives a total deficit for the year of £78,668. Total funds at 31 December 2023 amounted to £2,296,103, comprising £10,911 unrestricted funds, £35,471 restricted funds and £2,249,721 endowment funds.
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.
Page 3
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 effectively to the challenges posed by the Covid-19 pandemic. Throughout 2022 and 2023, we maintained our programme activities and courses. We also provided essential support to Centre residents.
Our business plan for 2022 – 2023 was established to define our priorities and counteract any negative repercussions. In 2023, we prioritized expanding the reach of the SAFAR Film Festival and bolstering the Arab Britain programme, and we are committed to continuing to build our audiences across the UK for both programmes.
The trustees have been actively running courses and events both online and in-person. Furthermore, we have intensified our fundraising initiatives, especially targeting trusts, foundations, and sources of unrestricted income. As we move forward into 2024, we remain committed to adapting and innovating in response to the changing landscape, ensuring the charity's continued growth and impact.
Page 4
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
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 | |
| Independent examiner | P.G. Browne FCA CTA |
| 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:
Mr Haroun Al-Mishwit (Interim Chairman) Sir Derek Plumbly KCMG (resigned 01/11/2023) Mr Saeed Taji Farouky Ms Randa Adel Ashmawi Mrs Elizabeth Moriarty Mr Maher Maksoud Ms Fionnuala Rogers Ms Imogen Ware (appointed 27/09/2023) Ms Venetia Porter (appointed 11/12/2023)
Company Secretary
Mrs Nadia El-Sebai
Page 5
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 eight 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 6
THE ARAB BRITISH CENTRE
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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 18 July 2024 and is signed on its behalf.
………………………………………
Mr Haroun Al-Mishwit Interim Chairman
Page 7
THE ARAB BRITISH CENTRE
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
I report to the charity's trustees on my examination of the financial statements of The Arab British Centre ("the company") for the year ended 31 December 2023 which are set out on pages 9 to 18.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the financial statements of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of The Arab British Centre's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1) accounting records were not kept in accordance with section 386 of the 2006 Act; or
2) the financial statements do not accord with such records; or
3) the financial statements do not comply with relevant accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
4) the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
……………………………..
P.G. Browne FCA CTA
Chanter, Browne & Curry
Chartered Accountants 1 Plato Place 72-74 St Dionis Road London SW6 4TU.
Date: 18 July 2024
Page 8
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023
THE ARAB BRITISH CENTRE
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 Transfers between funds Net movement in funds for the year Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 25,684 118,617 284 |
2023 Restricted income funds Endowment funds £ £ 110,230 - 10,816 - - 73,937 |
2023 Restricted income funds Endowment funds £ £ 110,230 - 10,816 - - 73,937 |
Total funds £ 135,914 129,433 74,221 |
2022 Total funds £ 110,600 103,159 78,625 |
|---|---|---|---|---|---|
| 144,585 | 121,046 | 73,937 | 339,568 | 292,384 | |
| - 328,698 |
- 85,575 |
15,134 6,443 |
15,134 420,716 |
15,989 403,486 |
|
| 328,698 | 85,575 | 21,577 | 435,850 | 419,475 | |
| (184,113) - |
35,471 - |
52,360 17,614 |
(96,282) 17,614 |
(127,091) (161,466) |
|
| (184,113) 180,000 |
35,471 - |
69,974 (180,000) |
(78,668) - |
(288,557) - |
|
| (4,113) 15,024 |
35,471 - |
(110,026) 2,359,747 |
(78,668) 2,374,771 |
(288,557) 2,663,328 |
|
| 10,911 | 35,471 | 2,249,721 | 2,296,103 | 2,374,771 |
The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
Page 9
THE ARAB BRITISH CENTRE
BALANCE SHEET AT 31 DECEMBER 2023
| Notes Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank and in hand Creditors:amounts falling due within one year 12 Net current assets Net assets Funds of the charity Endowment funds 14, 15 Restricted funds 14, 15 Unrestricted funds 14, 15 Total charity funds |
£ £ 839,809 1,447,916 2,287,725 8,652 54,681 63,333 54,955 8,378 2,296,103 2,249,721 35,471 10,911 2,296,103 Total funds 2023 |
£ £ 839,809 1,447,916 2,287,725 8,652 54,681 63,333 54,955 8,378 2,296,103 2,249,721 35,471 10,911 2,296,103 Total funds 2023 |
£ £ 846,923 1,495,556 2,342,479 3,480 77,499 80,979 48,687 32,292 2,374,771 2,359,747 - 15,024 2,374,771 Total funds 2022 |
£ £ 846,923 1,495,556 2,342,479 3,480 77,499 80,979 48,687 32,292 2,374,771 2,359,747 - 15,024 2,374,771 Total funds 2022 |
|---|---|---|---|---|
| 2,287,725 | 2,342,479 | |||
| 8,378 | 32,292 | |||
| 63,333 54,955 |
||||
| 2,296,103 | 2,374,771 | |||
| 2,249,721 35,471 10,911 |
2,359,747 - 15,024 |
|||
| 2,296,103 | 2,374,771 |
The Trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act.
The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 18 July 2024.
……………………………..
Mr Haroun Al-Mishwit Interim Chairman
Company Registration Number: 01215037
Page 10
THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
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 Arab British Centre is a charitable company limited by guarantee registered in England and Wales and registered as a charity. It is governed under its Articles of Association.
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 the following funds:-
(1) An expendable endowment. Transfers to income funds can be made at the discretion of the trustees.
(2) General unrestricted fund available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
(3) Restricted income funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
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.
Page 11
THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 independent examiner's' remuneration.
All other expenditure is included under charitable expenditure. It comprises the cost of operating the Centre.
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 12
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
3 Donations and grants received
| Donations and grants received | |||||
|---|---|---|---|---|---|
| Donations received Grants received |
2023 | Total funds £ 7,234 128,680 135,914 |
2022 | ||
| Unrestricted funds £ 2,234 23,450 |
Restricted income funds 5,000 105,230 |
Endowment funds £ - - |
Total funds £ 2,550 108,050 |
||
| 25,684 | 110,230 | - | 110,600 |
4 Income from charitable activities
| 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 Income from Story Telling Workshop Hire of boardroom Library memberships |
2023 | Total funds £ 69,779 2,720 - 32,935 3,815 17,074 3,100 - 10 129,433 |
2022 | ||
| Unrestricted funds £ 69,779 2,720 - 32,935 3,815 7,258 2,100 - 10 |
Restricted income funds £ - - - - - 9,816 1,000 - - |
Endowment funds £ - - - - - - - - |
Total funds £ 65,556 3,605 3,683 23,675 1,260 4,476 - 884 20 |
||
| 118,617 | 10,816 | - | 103,159 |
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 | |||||
|---|---|---|---|---|---|
| Unrestricted funds £ Bank interest received 284 Dividends received from listed investments:- - UK investments - - overseas investments - Interest received from UK listed investments - 284 |
2023 | Total funds £ 284 73,769 - 168 74,221 |
2022 | ||
| Restricted income funds £ - - - - |
Endowment funds £ - 73,769 - 168 |
Total funds £ 21 78,422 - 182 |
|||
| 284 | - | 73,937 | 78,625 |
Page 13
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 Independent examination fees |
2023 | 2023 | Total funds £ 15,134 7,114 26,747 149,268 10,726 8,991 87,839 125,231 415,916 - 4,800 420,716 |
2022 | |
|---|---|---|---|---|---|
| Unrestricted funds £ - |
Restricted income funds £ - |
Endowment funds £ 15,134 |
Total funds £ 15,989 |
||
| 671 26,747 149,268 10,726 8,991 75,246 52,249 |
- - - - - 12,593 72,982 |
6,443 - - - - - |
7,114 14,988 166,738 13,552 9,514 67,973 117,607 |
||
| 323,898 - 4,800 |
85,575 - - |
6,443 - - |
397,486 6,000 - |
||
| 328,698 | 85,575 | 6,443 | 403,486 |
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 (2022: 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 investments | |||||
|---|---|---|---|---|---|
| Gains/(losses) on sale of investments Gains/(losses) on revaluation of investments |
2023 | Total funds £ 81,411 (63,797) 17,614 |
2022 | ||
| Unrestricted funds £ - - |
Restricted income funds £ - - |
Endowment funds £ 81,411 (63,797) |
Total funds £ 51,068 (212,534) |
||
| - | - | 17,614 | (161,466) |
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 2023.
Page 14
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
9 Tangible fixed assets
| Tangible fixed assets | ||||
|---|---|---|---|---|
| Cost At 1 January 2023 Additions Disposals At 31 December 2023 Depreciation At 1 January 2023 On disposals Charge for the year At 31 December 2023 Net book values At 31 December 2023 At 31 December 2022 |
Freehold land and buildings £ 1,288,633 - - |
Fixtures and fittings £ 11,867 - - |
Computers £ 2,012 - - |
Total £ 1,302,512 - - |
| 1,288,633 | 11,867 | 2,012 | 1,302,512 | |
| 443,051 - 6,443 |
11,867 - - |
671 - 671 |
455,589 - 7,114 |
|
| 449,494 | 11,867 | 1,342 | 462,703 | |
| 839,139 | - | 670 | 839,809 | |
| 845,582 | - | 1,341 | 846,923 |
The trustees have reviewed the value of the freehold land and buildings. They are of the opinion that the market value at 31 December 2023 was not less than the net book value shown above. The freehold land and buildings was purchased in 2002.
Page 15
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
10 Fixed asset investments
| Investec Wealth & Investment At 1 January 2023 at valuation Additions at cost Disposals at cost Net gain/(loss) on revaluation At 31 December 2023 (cost = £1,442,121) Total investments Total value of investments at 31 December 2023 Less: cash at brokers (included under current assets) Fixed asset investments at 31 December 2023 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 2023. 11 Debtors 2023 £ Contributions receivable 4,002 Prepayments 4,650 8,652 12 Creditors: amounts falling due within one year 2023 £ Trade creditors 4,469 Taxation and social security (1,599) Accruals 4,800 Deferred income (see note 13) 30,624 Other creditors 16,661 54,955 |
Investec Wealth & Investment At 1 January 2023 at valuation Additions at cost Disposals at cost Net gain/(loss) on revaluation At 31 December 2023 (cost = £1,442,121) Total investments Total value of investments at 31 December 2023 Less: cash at brokers (included under current assets) Fixed asset investments at 31 December 2023 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 2023. 11 Debtors 2023 £ Contributions receivable 4,002 Prepayments 4,650 8,652 12 Creditors: amounts falling due within one year 2023 £ Trade creditors 4,469 Taxation and social security (1,599) Accruals 4,800 Deferred income (see note 13) 30,624 Other creditors 16,661 54,955 |
£ 1,495,556 262,263 (246,106) (63,797) |
|---|---|---|
| 1,447,916 | ||
| Total £ 1,480,582 32,666 |
||
| 1,447,916 | ||
| 2022 £ 490 2,990 |
||
| 8,652 | 3,480 | |
| 2023 £ 4,469 (1,599) 4,800 30,624 16,661 |
2022 £ - 4,091 7,080 21,210 16,306 |
|
| 54,955 | 48,687 |
Page 16
THE ARAB BRITISH CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
13 Deferred income
Deferred income comprises contributions from users received in advance.
| Balance at 1 January 2023 Amount released to income earned from charitable activities Amount deferred in year Balance at 31 December 2023 |
2023 £ 21,210 (21,210) 30,624 |
2022 £ 18,171 (18,171) 21,210 |
|---|---|---|
| 30,624 | 21,210 |
14 Statement of funds
Statement of funds - current year
| Restricted income funds SAFAR Film Festival Kickstarter Scheme Unrestricted income funds Endowment funds Total funds |
Balance at 1 January 2023 £ - - |
Income £ 121,046 - |
Expenditure £ (85,575) - |
Gains/(losses) on investments £ - - |
Transfer in/ (out) £ - - |
Balance at 31 December 2023 £ 35,471 - |
|---|---|---|---|---|---|---|
| - 15,024 2,359,747 |
121,046 144,585 73,937 |
(85,575) (328,698) (21,577) |
- - 17,614 |
- 180,000 (180,000) |
35,471 10,911 2,249,721 |
|
| 2,374,771 | 339,568 | (435,850) | 17,614 | - | 2,296,103 |
| Statement of funds - prior year Restricted income funds Unrestricted income funds Endowment funds Total funds |
Balance at 1 January 2022 £ - - |
Income £ 79,139 15,777 |
Expenditure £ (96,224) (15,323) |
Gains/(losses) on investments £ - - |
Transfer in/ (out) £ 17,085 (454) |
Balance at 31 December 2022 £ - - |
|---|---|---|---|---|---|---|
| - 28,287 2,635,041 |
94,916 118,864 78,604 |
(111,547) (285,496) (22,432) |
- - (161,466) |
16,631 153,369 (170,000) |
- 15,024 2,359,747 |
|
| 2,663,328 | 292,384 | (419,475) | (161,466) | - | 2,374,771 |
Restricted income funds comprise the following:
1) SAFAR Film Festival - grants received towards the Centre's costs in staging the film festival.
2) Kickstarter Scheme - grants received under the UK Government's Kickstarter Scheme to cover the cost of two employees' salaries.
Page 17
THE ARAB BRITISH CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
15 Analysis of net assets between funds
| Current year Tangible fixed assets Investments Current assets Current liabilities Net assets at 31 December 2023 Prior year Tangible fixed assets Investments Current assets Current liabilities Net assets at 31 December 2022 |
Unrestricted income funds £ 670 30,000 (4,804) (14,955) |
2023 Restricted income funds Endowment funds £ £ - 839,139 - 1,417,916 35,471 32,666 - (40,000) 35,471 2,249,721 2022 Restricted income funds Endowment funds £ £ - 845,582 - 1,465,556 - 48,609 - - - 2,359,747 |
2023 Restricted income funds Endowment funds £ £ - 839,139 - 1,417,916 35,471 32,666 - (40,000) 35,471 2,249,721 2022 Restricted income funds Endowment funds £ £ - 845,582 - 1,465,556 - 48,609 - - - 2,359,747 |
Total funds £ 839,809 1,447,916 63,333 (54,955) |
|---|---|---|---|---|
| 10,911 | 35,471 | 2,249,721 | 2,296,103 | |
| Unrestricted income funds £ 1,341 30,000 32,370 (48,687) |
Total funds £ 846,923 1,495,556 80,979 (48,687) |
|||
| 15,024 | - | 2,359,747 | 2,374,771 |
16 Related party disclosures
There were no related party transactions for the year ended 31 December 2023.
Page 18