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REGISTERED COMPANY NUMBER: 04927787 (England and Wales)
REGISTERED CHARITY NUMBER: 1103290
























STRATEGIC REPORT, REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

EUROPE TRUST
(A COMPANY LIMITED BY GUARANTEE)

EUROPE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023










Page

Reference and Administrative Details 1

Strategic Report 2

Report of the Trustees 3 to 5

Report of the Independent Auditors 6 to 8

Statement of Financial Activities 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13 to 21

EUROPE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS
For The Year Ended 31 December 2023



TRUSTEES Dr. F Alaoui Bouarraqui (Chairman)
Dr. A Abushwaima
A J Koubaisy
S Bouabdallah
M Ibrahim
I Kady (resigned 1.2.24)
T Aydarus
S Almahdawi
Dr N Al-Kaddo
S Shiref (appointed 13.6.24)


COMPANY SECRETARY R Al Rawi


REGISTERED OFFICE MCC
Ratby Lane
Markfield
LE67 9SY


REGISTERED COMPANY NUMBER 04927787 (England and Wales)


REGISTERED CHARITY NUMBER 1103290


AUDITORS TC Group
31 High View Close
Hamilton Office Park
Leicester
Leicestershire
LE4 9LJ

EUROPE TRUST

STRATEGIC REPORT
For The Year Ended 31 December 2023


The trustees present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The trust was able to generate sufficient incoming resources during the year to make donations in kind estimated to around £180,000 (2022: £170,000), by providing community based organisations in different European countries either rent free or reduced rate lease of the Trust's properties, in furtherance of its objects.

POLICY ON RESERVES
Europe Trust has total funds of £9,280,846 (2022: £8,913,995), the majority of which is represented by investment and mixed motive properties.

The properties are used to advance the objects of the charity, by providing a sustainable income to cover the charity's annual operational costs as well for the use of the beneficiaries of the charity.

The charity maintains sufficient liquid reserves to meet the day to day running costs of the charity. Net current assets at 31 December 2023 were £970,166 (2022: £1,570,706).

PRINCIPAL FUNDING SOURCES
The Trust generates income from a combination of rentals from investment properties and donations from other organisations and individuals.

The Trust has grown its property portfolio by acquiring donated properties over many years. No properties were donated to the charity during the year ended 31 December 2023.

INVESTMENT POLICY
The Trustees' stated investment policy is to invest in low to medium risk properties and real estate.

Approved by order of the board of trustees on 23 October 2024 and signed on its behalf by:





Dr. F Alaoui Bouarraqui - Trustee

EUROPE TRUST (REGISTERED NUMBER: 04927787)

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 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES
Objectives and aims
The objectives of the charity are:

- The advancement of religion and in particular the Islamic Religion in Europe.
- The establishment of facilities for recreation and other leisure time occupation in the interests of social welfare of deprived communities in Europe and elsewhere with the object of improving the conditions of life of such communities.
- The promotion of any charitable purpose amongst Muslims in Europe and elsewhere and in particular the relief of poverty, the advancement of education and the relief and prevention of suffering caused by mental health, social and or economic circumstances, or by emotional, personal or family problems by the provision of a counselling service or other services as appropriate.
- The establishment of religious, educational, social and recreational institutions by such means as are exclusively charitable.

As part of its strategy, the Charity invests its donations in property so that projects can be funded by a sustained level of income. Income earned from these properties is used to makes grants to organisations that further its objectives.

Public benefit
The section above entitled 'Objectives and activities' sets out the objects and aims of the Charity. The Trustees have considered this, in conjunction with the guidance contained in the Charity Commission's general guidance on Public Benefit and have concluded that the aims of the Charity continue to be charitable and are for the public benefit.

The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Grantmaking
The Trust makes grants as per its criteria following an application process by appropriate bodies as long as the application meets those criteria and as long as they abide by the laws and regulations of the land.

STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Charity, being a company limited by guarantee, is governed by its Articles of Association. The objects of the Company are contained in the Memorandum of Association. The Articles of Association include matters such as the election of members, appointment/ removal/ disqualification of Trustees and the powers held by the Trustees.

Recruitment and appointment of new trustees
The Board of Trustees is responsible for the recruitment of new trustees.

In seeking new trustees, the Trust seeks to identify people who are experienced individuals in the charity sector and/or businessmen who contribute in identifying/introducing the Trust and its projects and/or individuals that served in well-known organisations.


EUROPE TRUST (REGISTERED NUMBER: 04927787)

REPORT OF THE TRUSTEES
For The Year Ended 31 December 2023


STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
The Board appoints an Executive Committee, headed by the Chairman of Europe Trust, consisting of trustees to manage the affairs of the Charity. The Committee meets at least twice a year to consider the performance of the charity and respond to emerging issues and risks. The Committee also considers grant applications to the charity and approves them accordingly.

The Executive Manager is accountable to the Executive Committee and is responsible for implementing the decisions of the Committee and the Board of Trustees.

Induction and training of new trustees
Trustees are introduced to their new role upon their appointment. The resources available at Charity Commission's website are introduced to them so that they can familiarise themselves in relation to their duties and responsibilities.

Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Income uncertainty due to potential reduced rental income resulting from fluctuations in the rental market or empty properties/rooms.

The trustees have spread their income-yielding property investments across different locations and property types. The properties are independently marketed and managed to maintain maximum occupancy and income recovery.

STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Europe Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-select suitable accounting policies and then apply them consistently;
-observe the methods and principles in the Charity SORP;
-make judgements and estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.


AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.


EUROPE TRUST (REGISTERED NUMBER: 04927787)

REPORT OF THE TRUSTEES
For The Year Ended 31 December 2023


Approved by order of the board of trustees on 23 October 2024 and signed on its behalf by:





Dr. F Alaoui Bouarraqui - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EUROPE TRUST


Opinion
We have audited the financial statements of Europe Trust (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 2023 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 on 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 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 trustees' 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Trustees has been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EUROPE TRUST


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Report of the Trustees.

We have nothing to report in respect of the following matters where 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 take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of 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 is 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 charitable 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 charitable 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 Independent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the charitable company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the charitable company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EUROPE TRUST

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Independent 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.




Dilun Mistry FCA (Senior Statutory Auditor)
for and on behalf of TC Group
31 High View Close
Hamilton Office Park
Leicester
Leicestershire
LE4 9LJ

24 October 2024

EUROPE TRUST

STATEMENT OF FINANCIAL ACTIVITIES
For The Year Ended 31 December 2023

2023 2022
Unrestricted Total
fund funds
Notes £    £   
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 17,558 13,175

Investment income 3 1,376,166 1,147,950
Total 1,393,724 1,161,125

EXPENDITURE ON
Raising funds
Raising donations and legacies 4 18,424 14,861
18,424 14,861

Charitable activities 5
Charitable activities 954,759 781,353

Other 623,690 -
Total 1,596,873 796,214

Net gains on investments 570,000 -

NET INCOME 366,851 364,911


RECONCILIATION OF FUNDS
Total funds brought forward 8,913,995 8,549,084

TOTAL FUNDS CARRIED FORWARD 9,280,846 8,913,995

EUROPE TRUST (REGISTERED NUMBER: 04927787)

BALANCE SHEET
31 December 2023

2023 2022
Unrestricted Total
fund funds
Notes £    £   
FIXED ASSETS
Tangible assets 14 1,669 1,963
Investments
Investment property 15 5,937,535 4,983,742
Social investments 16 2,386,408 2,386,408
8,325,612 7,372,113

CURRENT ASSETS
Debtors 17 1,071,500 737,414
Cash at bank and in hand 575,295 876,999
1,646,795 1,614,413

CREDITORS
Amounts falling due within one year 18 (676,629 ) (43,707 )

NET CURRENT ASSETS 970,166 1,570,706

TOTAL ASSETS LESS CURRENT LIABILITIES 9,295,778 8,942,819

CREDITORS
Amounts falling due after more than one
year

19

(14,932

)

(28,824

)

NET ASSETS 9,280,846 8,913,995
FUNDS 22
Unrestricted funds 9,280,846 8,913,995
TOTAL FUNDS 9,280,846 8,913,995

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


The financial statements were approved by the Board of Trustees and authorised for issue on 23 October 2024 and were signed on its behalf by:





F Alaoui Bouarraqui - Trustee

EUROPE TRUST

CASH FLOW STATEMENT
For The Year Ended 31 December 2023

2023 2022
Notes £    £   

Cash flows from operating activities
Cash generated from operations 1 (523,043 ) 44,233
Interest paid (10,228 ) (10,228 )
Tax paid 623,315 -
Net cash provided by operating activities 90,044 34,005

Cash flows from investing activities
Purchase of investment property (383,793 ) -
Interest received 5,937 812
Net cash (used in)/provided by investing activities (377,856 ) 812

Cash flows from financing activities
Loan repayments in year (13,892 ) (13,893 )
Net cash used in financing activities (13,892 ) (13,893 )

Change in cash and cash equivalents in
the reporting period

(301,704

)

20,924
Cash and cash equivalents at the
beginning of the reporting period

876,999

856,075
Cash and cash equivalents at the end of
the reporting period

575,295

876,999

EUROPE TRUST

NOTES TO THE CASH FLOW STATEMENT
For The Year Ended 31 December 2023


1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2023 2022
£    £   
Net income for the reporting period (as per the Statement of
Financial Activities)

366,851

364,911
Adjustments for:
Depreciation charges 294 346
Losses on investments (570,000 ) -
Interest received (5,937 ) (812 )
Interest paid 10,228 10,228
Increase in debtors (334,086 ) (336,997 )
Increase in creditors 9,607 6,557
Net cash (used in)/provided by operations (523,043 ) 44,233


2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 876,999 (301,704 ) 575,295
876,999 (301,704 ) 575,295

Debt
Debts falling due within 1 year (13,892 ) - (13,892 )
Debts falling due after 1 year (28,824 ) 13,892 (14,932 )
(42,716 ) 13,892 (28,824 )
Total 834,283 (287,812 ) 546,471

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023


1. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Government grants
Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model.

Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.


Fixtures and fittings - 15% on reducing balance
Computer equipment - 15% on reducing balance

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


1. ACCOUNTING POLICIES - continued


Investment property and social investments
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Social investments are made in furtherance of the Charity's objects and any investment return is secondary to the charitable purpose supported by the investment. Currently all such investments represent property; the valuation policy applied to social investments is the same as for investment property.

Taxation
The charity is exempt from corporation tax on its charitable activities.

Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

In the opinion of the trustees there are no activities giving rise to restricted funds.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Borrowings
Interest bearing borrowings are initially recorded at fair value, net of transaction costs. Interest bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount of the redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.


EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. DONATIONS AND LEGACIES
2023 2022
£    £   
Donations 17,558 13,175

3. INVESTMENT INCOME
2023 2022
£    £   
Rents received 1,370,229 1,147,138
Interest receivable 5,937 812
1,376,166 1,147,950

Income from investments comprises the rental income receivable for the period from the Trust's properties located in the UK and in Europe.

4. RAISING DONATIONS AND LEGACIES
2023 2022
£    £   
Insurance 3,122 1,839
Telephone 938 476
Postage and stationery 1,519 960
Bank charges 328 193
Depreciation 277 326
Interest payable and similar charges 10,228 10,228
Support costs 2,012 839
18,424 14,861

5. CHARITABLE ACTIVITIES COSTS
Grant
funding of
activities Support
Direct (see note costs (see
Costs 6) note 7) Totals
£    £    £    £   
Charitable activities 867,104 47,112 40,543 954,759

6. GRANTS PAYABLE
2023 2022
£    £   
Charitable activities 47,112 28,311



EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


7. SUPPORT COSTS
Governance
Management costs Totals
£    £    £   
Raising donations and legacies - 2,012 2,012
Other resources expended - 623,690 623,690
Charitable activities 6,900 33,643 40,543
6,900 659,345 666,245

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023 2022
£    £   
Auditors' remuneration 10,080 9,300
Depreciation - owned assets 294 346
Other operating leases 9,600 7,800

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.


Trustees' expenses
2023 2022
£    £   
Trustees' expenses 22,165 12,635

10. STAFF COSTS
2023 2022
£    £   
Wages and salaries 63,032 57,904
Social security costs 519 722
Other pension costs 616 616
64,167 59,242

The average monthly number of employees during the year was as follows:

2023 2022
Fundraising, marketing, administration 3 3

No employees received emoluments in excess of £60,000.


EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


11. EXCEPTIONAL ITEMS

The Greece Tax Authority issued a report on a tax inspection of Europe Trust on 10/8/2020 for the years 2010, 2011, 2012 and 2013, and the report concluded that Europe Trust fall under the Offshore company law. The Greece Tax Authority have put a charge on the properties in Greece with taxes, fines and interests for each of the four years totalling 719,243.13 Euros.

As at the year end this amount has been accrued for at a year end rate of 1.1539 equating to £623,315 as the final sum has been communicated by the Greece Tax authorities.

The Trust has sought legal advice on the matter and has objected to the Tax Authority's decision, and has lodged a complaint with the court against the Tax Authority.

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£   
INCOME AND ENDOWMENTS FROM
Donations and legacies 13,175

Investment income 1,147,950
Total 1,161,125

EXPENDITURE ON
Raising funds
Raising donations and legacies 14,861
14,861

Charitable activities
Charitable activities 781,353
Total 796,214

NET INCOME 364,911


RECONCILIATION OF FUNDS
Total funds brought forward 8,549,084

TOTAL FUNDS CARRIED FORWARD 8,913,995


EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


13. PRIOR YEAR ADJUSTMENT

The comparative figures for the year ended 31 December 2022 have been restated to gross up income and expenses from properties included within investment properties, this amounted to £125,401.

14. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2023 and
31 December 2023

21,387

2,584

23,971

DEPRECIATION
At 1 January 2023 19,540 2,468 22,008
Charge for year 277 17 294
At 31 December 2023 19,817 2,485 22,302
NET BOOK VALUE
At 31 December 2023 1,570 99 1,669
At 31 December 2022 1,847 116 1,963

15. INVESTMENT PROPERTY
£   
FAIR VALUE
At 1 January 2023 4,983,742
Additions 383,793
Revaluation 570,000
At 31 December 2023 5,937,535
NET BOOK VALUE
At 31 December 2023 5,937,535
At 31 December 2022 4,983,742

The trustees are of the opinion that a number of the properties should be classed as mixed motive properties; these are disclosed in note 14.

Investment properties and mixed motive investment properties are included at a combination of historic cost and revaluation on a property by property basis.

The properties have been valued by the trustees based on their research of similar properties. Following their assessment the trustees are of the opinion that the value shown in the accounts is materially fair.

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2023 570,000
Cost 5,367,535
5,937,535

EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


16. SOCIAL INVESTMENTS
Mixed
motive
properties
£   
MARKET VALUE
At 1 January 2023 and
31 December 2023

2,386,408

NET BOOK VALUE
At 31 December 2023 2,386,408
At 31 December 2022 2,386,408

The charity holds a number of properties in the UK and overseas. The trustees are of the opinion that a number of the properties should be classed as mixed motive properties and therefore £4,604,438 (2022: £4,604,438) of the overall investments has been classified as such.

The charity furthers its objects via mixed motive investments as these are variously rented out at nil or below market rates to Mosques, Islamic Community Centres and Educational Institutions. Mixed motive investments include properties held by the charity with a value of £2,386,408 (2022: £2,386,408) where no investment income is received. The remaining £2,218,030 (2022: £2,218,030) mixed motive investments includes properties where some investment income is received. The trustees have assessed that the proportion of these properties yielding a gross rental income is approximately 23%.

The trustees have reviewed the value of the remaining properties included as social investments. Taking account of their usage, condition and local market for such properties they consider that the value included within the financial statements is materially fair.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Accrued income 1,070,563 736,562
Prepayments 937 852
1,071,500 737,414

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 20) 13,892 13,892
Tax 623,315 -
Social security and other taxes 2,203 -
Other creditors 803 621
Accrued expenses 36,416 29,194
676,629 43,707


EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 20) 14,932 28,824

20. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year on demand:
Bank loan 13,892 13,892
Amounts falling between one and two years:
Bank loan 1-2 13,892 13,892
Amounts falling due between two and five years:
Bank loan 2-5 yrs 1,040 14,932

21. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 28,824 42,716

Bank loans are secured by way of charges against the assets to which they relate.

22. MOVEMENT IN FUNDS
Net
movement At
At 1.1.23 in funds 31.12.23
£    £    £   
Unrestricted funds
General fund 8,913,995 366,851 9,280,846

TOTAL FUNDS 8,913,995 366,851 9,280,846

Net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£    £    £    £   
Unrestricted funds
General fund 1,393,724 (1,596,873 ) 570,000 366,851

TOTAL FUNDS 1,393,724 (1,596,873 ) 570,000 366,851


EUROPE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.1.22 in funds 31.12.22
£    £    £   
Unrestricted funds
General fund 8,549,084 364,911 8,913,995

TOTAL FUNDS 8,549,084 364,911 8,913,995

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£    £    £   
Unrestricted funds
General fund 1,161,125 (796,214 ) 364,911

TOTAL FUNDS 1,161,125 (796,214 ) 364,911

23. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the financial statements - 380,000

24. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.