DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
**Charity Registration No. 1007090**
## **DAR ALHEKMA TRUST**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Dr S Shehabi Mr A Alomran Mr M Ali **Charity number** 1007090 **Principal address** 45 Chalton Street London NW1 1HY **Independent examiner** Mohamedkazim S Bhaloo, FCCA 2nd Floor, Congress House Lyon Road Harrow Middlesex HA1 2EN **Bankers** The Royal Bank of Scotland Plc Paisley Chief Office 1 Moncrieff Street Paisley PA3 2AW
DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Statement of financial position|6|
|Notes to the financial statements|7 - 17|
DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The Trustees present their report and unaudited financial statements for the year ended 31 December 2020. The legal and administrative information accompanying these financial statements forms a part of this report.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing trust deed , the Charities Act 2011 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) (effective 1 January 2019)".
## **Objectives and activities**
The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
The charity's objects are
1. The advancement of Islam in accordance with the tenets of the Muslim Shia Ithna-Ashari Faith.
2. The advancement of education, particularly but not exclusively in relation to Islam and the tenets of Muslim Shia Ithna-Asheri Faith.
3. The relief of poverty and sickness amongst adherents of the Muslim Shia Ithna-Asheri Faith.
4. To further or benefit the residents of London and the surrounding area, without distinction of sex, sexual orientation, race or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the resident.
## **Achievements and performance**
When planning the activities for the year, t he trustees have considered the Charity Commission's general guidance on public benefit and , in particular , the supplementary guidance on the advancement of religion for the benefit of the public and on charities for the eradication of poverty.
Throughout the year the charity undertook to fulfil its aims through various activities, as follows:
1. Monthly seminars on topical issues such as interfaith, religious and intellectual debates and current affairs. When Covid-19 situation developed during the reporting period, the Trust closed its doors but continued its activities online. Weekly meetings were also held online between March 2020 and April 2021.
2. Commemoration of the martyrdom of Imam Hussein was held for 10 days in August 2020. They were held mainly online as the Covid-19 pandemic was still prevalent. The Ramadan functions were also held online to avoid the spread of the pandemic.
3. Managing the properties which yield the main income of the Trust. Despite a sharp drop in income, due to tenants unable to pay their rents fully, the charity managed to get through that difficult period.
4. The charity provided financial assistance towards the education and welfare of individuals in need, consistent with the objectives of the charity.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Financial review**
The charity’s principal activity for generating funds continued to be the letting of property. Incoming resources from generated funds is lower than previous years as a result of the effects of the pandemic on certain tenants. The rental income is expected to increase to previous levels in the forthcoming year. The charity was able to give grants to support those in need during the pandemic. The trustees are pleased with the financial management and staff support during the year. The results of the charity’s operations are on page 5 to the financial statements.
The Statement of Financial Activities shows how the charity's funds have been applied during the year. The gross receipts of the charity were £ 97,553 (201 9 : £ 117,080 ). The investment properties increased in value by a total of £60,000 during the year. Total funds carried forward amounted to £4,645,393 (2019: £4,625,137), comprising a general income fund for charitable activities amounting to £3,050,916 (2019: £3,002,204) and a land and buildings revaluation reserve. All funds are unrestricted funds.
The assets of the charity are held in the names of the holding trustees. The Trust Deed authorises the trustees to make capital investment in furtherance of the charity ' s objectives.
## **Reserves policy**
The trustees consider that the charity's reserves are adequate to meet its day to day expenditure and in the event of a shortfall they have access to sufficient resources to meet any deficit. For this reason the trustees do not require a minimum level of reserves to be maintained. The adequacy of the reserves policy is reviewed on a monthly basis.
## **Investment policy**
Under the constitution document, the charity has power to invest funds which are not immediately required for its purpose and which the managing trustees see fit in furtherance of the charity’s objectives.
## **Risk management**
The Trustees recognise that effective risk management is essential in achieving the charity's objectives. Risk management is considered as an integral element of all decision making and identifying appropriate procedures to ensure that risk levels are acceptable in each case. The Trustees believe that it is important to develop and enhance the approach in risk management, to ensure it remains fit for purpose . The charity will formalise the risk management and create a risk register which will be reviewed on regular basis. The identified risks presented by the Covid-19 pandemic are being monitored and mitigated on an ongoing basis.
## **Future plans**
In addition to the objectives outlined above, the charity has additional objectives over the forthcoming 12 months period:
1. To improve the quality of the services offered to the community. Attendance of the youth is much needed in order to create responsible attitudes towards life and society, and resist extremism.
2. To empower women to enable them to take more interactive part in the Trust’s activities. Throughout the year some activities for women were held.
3. To enhance the management of the investment part of the Trust. To consider managing the properties ourselves in order to improve the yield.
4. One of the lessons from the pandemic is the use of technology as a means of communication, interaction and delivery. The Trust will endeavour to update its ability to use it and allocate a small investment in equipment to be able to use effectively the new platforms such as Zoom and Youtube.
## **Structure, governance and management**
The charity is a an unincorporated charity formed under a constitution under a deed dated 26 November 19 91 as amended on 15 October 2018 as amended by scheme dated 3 December 2019 as amended by resolution dated 24 January 2020. It has been registered with the Charit y Commission under reference 1007090 .
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The Trustees who served during the year were:
Dr S Shehabi Mr A Alomran Mr M Ali
## **Recruitment of new trustees:**
The process or recruiting a trustee is as follows:
1. The Trustees of the Trust shall number not more than seven and not less than three and unless any trustee ceases to be a Trustee under the provisions following, he shall hold the office of Trustee for his lifetime.
2. The power to appoint new Trustees who shall hold office for life as aforesaid shall be exercisable by the remaining Trustees.
## **Statement of Trustees' responsibilities**
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees' r eport was approved by the Board of Trustees.
**Dr S Shehabi** Trustee Dated: 29 October 2021
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DAR ALHEKMA TRUST**
I report to the Trustees on my examination of the financial statements of Dar Alhekma Trust (the charity) for the year ended 31 December 2020.
## **Responsibilities and basis of report**
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that 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 respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Mohamedkazim S Bhaloo, FCCA**
2nd Floor, Congress House Lyon Road Harrow Middlesex HA1 2EN
Dated: 29 October 2021
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|
**funds**|
|||**2020**|
**2019**|
||**Notes**|
**£**|
**£**|
|**Income from:**||||
|Donations and legacies|**3**|4,066|
1,000|
|Investments|**4**|93,487|
116,080|
|**Total income**||97,553|
117,080|
|**Expenditure on:**||||
|Raising funds|**5**|27,433|
28,403|
|Charitable activities|**6**|110,104|
117,704|
|**Total resources expended**||137,537|
146,107|
|Net gains on investments|**10**|60,000|
-|
|**Net income/(expenditure) for the year/**||||
|**Net movement in funds**||20,016|
(29,027)|
|Fund balances at 1 January 2020||4,625,137|
4,654,164|
|**Fund balances at 31 December 2020**||4,645,153|
4,625,137|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **STATEMENT OF FINANCIAL POSITION** _**AS AT 31 DECEMBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
Investment properties
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current liabilities
**Total assets less current liabilities**
**Income funds**
Unrestricted funds
General unrestricted funds
Revaluation reserve|**2020**
**£**
**£**
1,892,490
2,760,000
4,652,490
4,325
11,625
15,950
(23,287)
(7,337)
4,645,153
3,052,146
1,593,007
4,645,153
4,645,153|**2019**
**£**
**£**
1,928,653
2,700,000
4,628,653
-
14,724
14,724
(18,240)
(3,516)
4,625,137
2,995,455
1,629,682
4,625,137
4,625,137|
|---|---|---|
The financial statements were approved by the Trustees on 29 October 2021
Dr S Shehabi
**Trustee**
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Dar Alhekma Trust is a is an unincorporated charity registered in England and Wales governed by a trust deed. The Charity is a public benefit entity. The charity's address is 45 Chalton Street, London, NW1 1HY.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the Charities SORP (FRS102) (2019) not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the applicable edition of the Statement of Recommended Practice for charities rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
## **1.2 Going concern**
At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the accounts.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity.
## **1.4 Income**
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.
Income from investments is included in the year in which it is receivable.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Raising funds comprise s the costs associated with the management of the investment properties.
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.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings 50 years straight line Furniture and equipment 25% per annum reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
The element of depreciation charged on the revalued amount of an asset is transferred to the revaluation reserve at the end of each financial year.
## **1.7 Investment properties**
Investment properties held as fixed assets are included at open market value as at the balance sheet date. Gains and losses on the annual revaluation are taken to the statement of financial activities.
## **1.8 Financial instruments**
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Derecognition of financial assets**_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Donations and gifts|4,066|1,000|
## **Donated goods and services**
A reliable estimate of the cost of the time and effort donated by volunteers in assisting the charity is not possible to quantify.
## **4 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Rental income|93,485|116,075|
|Interest receivable|2|5|
||93,487|116,080|
|**Raising funds**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Fundraising and publicity|||
|Support costs|27,433|27,731|
|Investment management|-|672|
||27,433|28,403|
## **5 Raising funds**
Support costs comprises those support costs relating to the charity's investment properties.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **6 Charitable activities**
|Religious and cultural activities
Grants to support needy individuals
Share of support costs (see note 7)
Share of governance costs (see note 7)|**2020**
**£**
12,872
3,770
90,582
2,880
110,104|**2019**
**£**
20,115
-
84,251
13,338
117,704|
|---|---|---|
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **7 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
29,343
-
Depreciation
36,163
-
Light & heat
16,477
-
Cleaning
5,250
-
IT expenses
3,596
-
Repairs
7,598
-
Insurance
4,281
-
Rates
12,563
-
Sundry expenses
1,526
-
Telephone
1,218
-
Legal and professional
-
-
Independent examination fee
-
2,880
118,015
2,880
Analysed between
Fundraising
27,433
-
Charitable activities
90,582
2,880
118,015
2,880|**2020**
**£**
29,343
36,163
16,477
5,250
3,596
7,598
4,281
12,563
1,526
1,218
-
2,880
120,895
27,433
93,462
120,895|Support
costs
Governance
costs
£
£
19,443
-
36,219
-
13,602
-
6,010
-
-
-
19,835
-
4,173
-
7,145
-
3,794
-
1,761
-
-
10,818
-
2,520
111,982
13,338
27,731
-
84,251
13,338
111,982
13,338|2019**Basis of allocation**
£
19,443 Directly attributable
36,219 Directly attributable
13,602 Directly attributable
6,010 Directly attributable
- Directly attributable
19,835 Directly attributable
4,173 Directly attributable
7,145 Directly attributable
3,794 Directly attributable
1,761 Directly attributable
10,818 Governance
2,520 Governance
125,320
27,731
97,589
125,320|
|---|---|---|---|
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **9 Employees**
The average monthly number of employees during the year was:
||**2020**|**2019**|
|---|---|---|
||**Number**|**Number**|
||2|2|
|**Employment costs**|**2020**|**2019**|
||**£**|**£**|
|Wages and salaries|28,851|19,170|
|Other pension costs|492|273|
||29,343|19,443|
There were no employees whose annual remuneration was £60,000 or more.
There were no employees whose annual remuneration was more than £60,000.
## **10 Net gains/(losses) on investments**
||**Unrestricted**|Total|
|---|---|---|
||**funds**||
||**2020**|2019|
||**£**|£|
|Revaluation of investment properties|60,000|-|
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **11 Tangible fixed assets**
|**Cost or valuation**
At 1 January 2020
At 31 December 2020
**Depreciation and impairment**
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019|**Land and**
**buildings**
**Furniture and**
**equipment**
**£**
**£**
2,000,000
33,243
2,000,000
33,243
72,000
32,590
36,000
163
108,000
32,753
1,892,000
490
1,928,000
653|**Total**
**£**
2,033,243
2,033,243
104,590
36,163
140,753
1,892,490
1,928,653|
|---|---|---|
Land and buildings with a carrying amount of £323,964 were revalued on 25 June 2018 by SN Estates , independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
At 31 December 2020, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £298,993 (2019: £305,067). The revaluation surplus is disclosed in note 15 to the financial statements.
## **12 Investment property**
|**Cost and fair value**
At 1 January 2020
Net gains or losses through fair value adjustments
At 31 December 2020|**2020**
**£**
2,700,000
60,000
2,760,000|
|---|---|
Investment property comprises 32 Bucklebury, Stanhope Street, London and 57 Chalton Street, London. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the Trustees. The valuation was made on an open market value basis by reference to market evidence and transaction prices for similar properties. The most recent external valuation was made on 26 June 2018.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**13**
**Debtors**
**Amounts falling due within one year:**
Prepayments and accrued income
**14**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2020**
**£**
4,325
**2020**
**£**
3,570
1,520
15,218
2,979
23,287|**2019**
**£**
-
**2019**
**£**
2,144
1,000
12,513
2,583
18,240|
|---|---|---|
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **15 Unrestricted funds**
|**Balance at**
**1 January 2019**
**£**
General fund
3,001,305
Land and buildings revaluation
reserve
1,652,859
4,654,164|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Balance at**
**1 January 2020**
**£**
**£**
**£**
**£**
117,080
(146,107)
29,926
3,002,204
-
-
(29,926)
1,622,933
117,080
(146,107)
-
4,625,137|
**Incoming**
**resources**
**£**
97,553
-
97,553|**Movement in funds**
**Resources**
**expended**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**31 December**
**2020**
**£**
**£**
**£**
**£**
(137,297)
29,926
60,000
3,052,386
-
(29,926)
-
1,593,007
(137,297)
-
60,000
4,645,393|
|---|---|---|---|
## **Purpose of unrestricted funds:**
General funds are funds which can be used in accordance with the charitable objectives at the discretion of the trustees and management committee.
The land and buildings revaluation reserve is an unrestricted fund relating to the revaluation surplus on revaluation of property classified as tangible fixed assets. The element of depreciation charged each year on the revalued amount of an asset is transferred to the revaluation reserve at the end of the financial year.
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DocuSign Envelope ID: 83B74291-7218-42F0-90DD-3B111D5EE7E0
## **DAR ALHEKMA TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **16 Related party transactions**
There were no related party transactions during the year (2019- none) .
## **17 Events after the reporting date**
On 30 January 2020, the World Health Organisation announced Coronavirus as a global health emergency. On 11 March 2020, it announced that Coronavirus was a global pandemic. This has had the effect of temporarily disrupting after the reporting date a significant part of the charity's charitable activities. This was anticipated by the Trustees before the year end and there is continuing ongoing evaluation by the Trustees to mitigate risks and enable the charity to continue to provide charitable activities in the current climate. In the opinion of the Trustees, it is not practicable to make a reliable estimate of the future financial effect on the net assets of the charity however there has been no significant adverse financial effect on the charity's results for the period to the date of approval of the accounts.
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