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2021-08-31-accounts

MADNI TRUST

ANNUAL REPORT

For The Year Ended 31 August 2021

REGISTERED CHARITY NUMBER: 1022471

Inside this Report

Report of the Trustees

Highlights of 2020-2021 .................................................................................................................................... 1 Report of the Trustees ....................................................................................................................................... 2 Mission statement .......................................................................................................................................... 2 Aims .............................................................................................................................................................. 2 Barriers .......................................................................................................................................................... 2 Our Achievements ............................................................................................................................................. 3 Jamia Al-Hudaa – Nottingham .......................................................................................................................... 3 Aims .............................................................................................................................................................. 3 Recommencement of Education after Covid ................................................................................................. 4 Network Upgrades / E-safety ........................................................................................................................ 4 Other News .................................................................................................................................................... 4 General Masajid Update .................................................................................................................................... 5 Masjid Ibrahim - Work, Activities & Building Improvements ......................................................................... 5 Aspley Islamic Centre ....................................................................................................................................... 7 Plans for the Future ........................................................................................................................................... 8 Financial review ................................................................................................................................................ 8 Volunteer Support ............................................................................................................................................. 9 Risks .................................................................................................................................................................. 9 Reserves Policy ................................................................................................................................................. 9 Future Funding .................................................................................................................................................. 9 Related Parties ................................................................................................................................................... 9 Recruitment, Appointment and Training of Trustees ........................................................................................ 9 Arrangements for Setting Pay and Remuneration of Key Management ........................................................... 9 Public Benefit .................................................................................................................................................. 10 Reference and administrative information ...................................................................................................... 11 Statement of trustees’ responsibilities ............................................................................................................. 12 Independent Auditor’s Report ........................................................................................................................ 13 Statement of Financial Activities . .................................................................................................................. 15 Balance Sheet …. ............................................................................................................................................ 16 Statement of Cashflows … .............................................................................................................................. 17 Notes to the Financial Statements … ......................................................................................................... 18-30

Madni Trust Annual Report 2020-21 Highlights of 2020-2021

I am pleased to present to you Madni Trust’s Annual Report for 2020-2021. I hope that you will find this report useful and it gives you a good understanding of the nature of charitable work that Madni Trust performs.

The last few years have been challenging for Madni Trust and for Jamia Al-Hudaa. I am pleased to see the progress of renovation work and upgrades at Jamia Al-Hudaa. I hope these will help create a better environment to provide quality education.

I am really grateful and pleased to see the advancement and community support in the Masjid Ibrahim and Aspley Masjid projects. The renovation work in these projects was a challenge and has taken immense effort and dedication, which can be seen in the form of substantial progress.

In May 2021, a social care Ofsted Inspection was conducted and I am pleased to share that we received “Good” rating. I would like to personally thank our members of the community, donors, volunteers, students and above all our dedicated staff who worked extremely hard over the years to assist us continue this challenging journey and achieve Madni Trust’s desired objectives.

Over the years, we have witnessed significant growth and expansion in Madni Trust’s operations. We are now working towards establishment of a separate entity for Jamia Al-Hudaa, which will help us provide improvised and quality education by deploying separate dedicated and professional team.

The presented report covers the period from 1 September 2020 to 31 August 2021.

Dr A Zaman, Chairman

We are pleased to receive “Good” rating for Jamia Al-Huda in Ofsted’s social care report of May 2021. The inspection team acknowledged and praised the efforts done by the management and also showed its confidence in the management team.

I would like to specially thank our students and parents who believed in us and provided continuous support and trust through these challenging times. We are committed to our main objective of providing good quality education to our students and we work vigilantly to further improvise our standards.

The global pandemic Covid-19 has created havoc in the entire world and all communities have been severely affected. Our Trust was not an exception and was also affected severely especially as we serve a broader community. This resulted in disruption to our chartable work, education and donor funding. We are working hard to overcome the challenges imposed by the pandemic, which is expected to take some time and effort.

As our other services were suspended due to the lock down, we took this as an opportunity and focused to utilise this time to renovate our Masajids, which can be witnessed by substantial progress in the Masajid work.

As the secretary, my role requires me to constantly encourage staff and make them feel appreciated at all times as they have made many sacrifices to help Madni Trust become successful.

It has been an honour to serve as a secretary for Madni Trust. I see this as a challenging role and will continue to serve the Trust with my full commitment and hope to see the Madni Trust succeed in its mission.

Raza Ul Haq, Secretary

1

Madni Trust Annual Report 2020-21

Report of the Trustees

Madni Trust was established in 1993 as a result of the low achievement levels in education within mainly the Muslim and BAME (Black, Asian Minority and Ethnic) Community. Its Board of Trustees is made up of several key members from local and national community organisations that represent and serve the community. The Trust has a strong team of dedicated volunteers and employees who are committed to provide the community with the skills, experience and knowledge that are essential for the community’s betterment and improvement.

The Trust is governed by the Trust Deed, executed on 16th May 1993, which does not contain any restrictions that would affect the aims or day to day running of the Trust.

Mission statement

“To provide a positive framework for education, training and employment opportunities for those members of the community that it represents that may be disadvantaged due to cultural and religious reasons ”

Aims

Barriers

Many people who have come to Madni Trust have lacked confidence to study at a traditional college or unemployed mainly because of language and cultural barriers. Major factors include:

2

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

In order to alleviate some of the above problems, Madni Trust caters for all aspects of employment and education by including the following:

Our Achievements

Jamia Al-Hudaa – Nottingham

Jamia Al-Hudaa was established in 1996 with an objective to provide Islamic Science Syllabus along with the national curriculum to the girls of Asian Muslim Community. In order to ensure quality, as part of the enrolment process, all prospective students are required to pass an entrance examination.

Aims

3

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Recommencement of Education after Covid

The operations of the Jamia Al-Hudaa were resumed after the first wave of Covid-19. However, major disruptions were observed in the forms of further lockdowns imposed by the Government due to further waves. In order to cover the syllabus, we had to reduce the scheduled vacations of the students.

Network Upgrades / E-safety

During the year, we upgraded the existing IT and telecommunication infrastructure with new fibre optic connections. We also replaced computer systems for IT lab and other departments with the cloud enabled systems. We worked on data safety and security by installing latest software with added security updates. During this process, we also planned and improvised on upgrading the infrastructure for the CCTV system; whereby the new system is expected to be linked to the cloud network which will bring added security and safety which is a very crucial for all stake holders.

Other News

In May 2021, we had a successful social care Ofsted Inspection in which we received “Good” rating. We would like to personally thank our staff, students and stakeholders who have worked extremely hard over the years to help us continue this great work.

4

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

General Masajid Update

During the difficult times of the pandemic, our Masajids served great role in supporting the community and provided funeral and ancillary services for the deceased’s families. Our Imams also stayed continually involved with the community and provided their support as needed. We also provided financial support to deserving community members. The community also displayed amazing support in arranging the funeral rites and burial in accordance to the will of the deceased.

We try to set examples to promote our faith and values in our community. For this purpose, during the Holy month of Ramadan, we initiated a food distribution drive, whereby the food was distributed amongst the neighbours of all our centres. This will help in bringing the community together and set an example of caring for our neighbours.

Masjid Ibrahim - Work, Activities & Building Improvements

Due to substantial growth of the community and need for another centre for prayer and education, the Madni Trust acquired former Methodist church on Aspley Lane in 2019 with the support of the local and wider community. It was a significant financial commitment, but the community’s demand and support provided confidence to the trustees that this will be a successful initiative.

5

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

The trust conducted substantial renovation and improvement activities, summary of which is stated below:

Trustees are pleased to explain further progress made during this financial year. An experienced carpenter was hired to design and install a new staircase along with the upstairs frame from where the main hall can be seen. Few other renovation activities were also conducted in the main hall to enhance the beauty of the Masjid.

The main entrance has been revamped in accordance with the community and masjid needs. This was made possible with the community’s help and support.

Madni Trust is honoured to provide special facilities for ladies just as in our other centres. The work for the ladies ablution and bathroom area has been initiated.

The wudhu/ablution area is almost completed and is expected to be hope this will be very beneficial for the community.

6

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Aspley Islamic Centre

work, the walls were also given a fresh coat of paint to compliment the new coving. The door level was raised for the proposed new floor level. This will allow installation of insulation and concealment of heating pipes. This work is expected to play an effective role in energy and cost efficiency in the long run and has added aesthetic value and improved the environment of the main hall.

During the year, further work was carried out in the ladies’ ablution & bathroom areas. The new tiles have added a quality finish to these facilities which is an essential part of the centre.

In recent years, the demand of the growing community meant that we must acquire a bigger site to accommodate the activities taking place in Aspley. Previously, a lot of progress had been made in terms of dedicated toilet & ablution facilities for all visitors/attendees of the centre. This financial year, there was a good progress with the heating installation with new boiler and water heater systems and piping.

The coving of the main hall ceiling was completed with gold paint which required expert and intricate work. During this

The two ongoing projects have major financial implications but we are confident that with the community help and support, these projects will be sustainable and beneficial for the local and wider community.

7

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Plans for the Future

Financial review

Income
Donations & legacies
Charitable activities
Investments
Other income
Total Income
Total Expenditure
Surplus
Total Funds		 2021
£
283,295
596,139
126,038
157,215
1,162,687
939,698
222,989
5,427,829		 2020
£
156,144
490,537
105,790
106,382
858,853
818,937
39,916
5,204,840		 Change
£
127,151
105,602
20,248
50,833
303,834
120,761
183,073
222,989

The operations of the charity were resumed after the first wave of Covid-19. However, major disruptions were observed in the forms of further lockdowns imposed by the Government due to further waves. Despite these disruptions faced by the charity during the year, the charity has managed to increase its total income by £303,834 and also successfully managed to carry out its operations at an optimum level by increasing the total expenditure only by £120,761.

The charity has also managed to generate income from investment properties of £126,038. Other income amounting to £157,215 primarily consists of Government support for Corona Virus Job Retention Scheme. Covid19 did not have a significant impact on the overall performance in the current year.

8

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Volunteer Support

Madni Trust started its ground work when it was first established by the help of volunteers. This volunteer support has helped Madni Trust to achieve its aims and objectives. Without their continuous support, it would not be possible to continue with its activities with such quality and dedication. Over the years Madni Trust has had the help of committed volunteers. These volunteers have been used for various projects that Madni Trust has undertaken. In all the projects that volunteer help was given, Madni trust is thankful and appreciates the help.

Risks

The major risks, to which that charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks.

Reserves Policy

At 31 August 2020 the charity had funds of £ 5,427,829 (2019: 5,204,840).

The trustees plan is to endeavour to achieve a position where recurring revenue expenditure is met from recurring income and to try to maintain unrestricted funds at a minimum of £500,000 to meet unexpected needs.

Future Funding

The trustees are exploring all possible avenues for fund raising but in the meantime the charity remains dependent upon the support of individual donors and of the community.

The trustees are grateful to all those who have provided their support to the charity in cash or in kind and express the sincere hope that they (and others) will continue to support the important work of the charity.

Related Parties

In pursuit of its charitable objectives, the Trust has entered into transactions with Trustees and related parties. These are detailed in notes 9 & 20 of the accounts.

Recruitment, Appointment and Training of Trustees

The Board of Trustees will consist of a minimum and maximum nine trustees and shall meet at least six times per annum.

Trustees are recruited in line with our Trust Deed and may be appointed by resolution of a meeting of the Trustees by a majority of 75%.

All trustees are required to be updated immediately on our current policies as part of the induction, and training courses are made available and done as soon as possible.

Arrangements for Setting Pay and Remuneration of Key Management

Key management have given up their right to a salary based on market conditions. They are therefore paid a reduced salary as it is accepted that some of their time is treated as voluntary.

As a result, there isn’t a policy, as such, to remunerate key management in accordance with market conditions.

9

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Public Benefit

Charity Trustees have a duty to report in the Annual Report on their Charity’s contribution to public benefit. They are required to demonstrate that:

  1. They are clear about what benefits are generated by the activities of the Charity. This report sets out some of the activities undertaken by Madni Trust in pursuit of the Charity’s strategic objectives.

  2. The benefits must be related to the objectives of the Charity. All activities of the Charity are undertaken in furtherance of its charitable objectives of providing education and training opportunities to disadvantaged individuals from ethnic minority communities, to raise awareness of education and training opportunities available to these people, to assist in the economic regeneration of the Asian community and to support the training of employees of small and medium sized enterprises operated by the Asian community.

  3. The people assisted by the Charity must be entitled to do so in accordance with the Charity's objectives. The benefits provided by the Charity and directed at those individuals and communities identified in the objectives of the Charity.

  4. The trustees are therefore confident that the Charity meets the requirement of Public Benefit and they confirm that they have taken into account the guidance contained in the Charity Commissions General Guidance on Public Benefit.

10

Madni Trust Annual Report 2020-21

Report of the Trustees – Continued

Reference and administrative information

Charity Number 1022471 Registered Office The Lodge Berkeley Avenue Mapperley Park Nottingham NG3 5TT

Trustees

The trustees and officers serving during the year and since the year end were as follows:

Mr Akhtar uz Zaman Ghouri (Chair) Mr Raza ul Haq (Secretary) Mr Hassan Din Mr Mohammad Akram Mr Ali Raza Mr Mohammad Qasim (appointed 1 September 2021) Mr Abdullah Ditta (appointed 1 September 2021) Mr Nasser Ali Zaman (appointed 1 September 2021) Auditors Accountax (UK) Limited 22-25 Portman Close Marylebone London England W1H 6BS Bankers Natwest Bank Plc Basford Branch 536 Valley Road Basford Nottingham NG5 1FL Key Management Personnel Mr Raza ul Haq (Secretory) Mr Maha Abu-Taha (Head teacher) Mr Mohammad Mehfooz (Maintenance Manager) Mr Ali Raza (Finance Manager) Miss Suffia Raza (Head of Curriculum/ DSL) Miss Dua Younis (Senior Lead)

Approved by the board of Trustees and signed on its behalf

Mr Raza ul Haq Trustees Date: _______ 11/08/2022

11

Madni Trust Annual Report 2020-21

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 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.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees and signed on its behalf by:

Mr Raza ul Haq

Trustee

Date: 11/08/2022

12

Madni Trust Independent Auditor’s Report For The Year Ended 31 August 2021

Independent Auditor’s Report to the Trustees of Madni Trust

Opinion

We have audited the financial statements of Madni Trust (the 'charity') for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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 auditor's report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

13

Madni Trust Independent Auditor’s Report For The Year Ended 31 August 2021

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities on page 12, the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that act.

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 an auditor's report 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.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

---------------------------------------------------Ghafoor Ahmad (Senior Statutory Auditor) For and on behalf of Accountax (UK) Limited, Statutory Auditor

Chartered Certified Accountant and Registered Auditors 22-25 Portman Close, Marylebone Road, London, England, W1H 6BS

Date: 11/08/2022

14

Madni Trust Statement of Financial Activities For The Year Ended 31 August 2021

Notes
Income from:
Donations & legacies
2
Charitable activities
3
Investments
4
Other income
5
Total income
Expenditure:
Charitable activities
6
Net income
Other recognised gains:
Gains on revaluation of investment
properties
11
Net movement in funds
Fund balances at 1 September 2020
15
Fund balances at 31 August 2021		 Unrestricted
Funds
2021
£
281,030
596,139
126,038
157,215
1,160,422
937,433
222,989
-
222,989
5,204,840
5,427,829		 Restricted
Funds
2021
£
2,265
-
-
-
2,265
2,265
-
-
-
-
-		 Total
2021
£
283,295
596,139
126,038
157,215
1,162,687
939,698
222,989
-
222,989
5,204,840
5,427,829		 Total
2020
£
156,144
490,537
105,790
106,382
858,853
818,937
39,916
831,403
871,319
4,333,521
5,204,840

The notes on pages 18 to 30 form part of these financial statements.

15

Madni Trust Balance Sheet As at 31 August 2021

Notes
FIXED ASSETS
Tangible assets
11
Investment properties
11
CURRENT ASSETS
Stock
12
Debtors
13
Cash at bank and in hand
Creditors: Amounts Falling Due Within One
Year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
INCOME FUNDS
Unrestricted funds
15
TOTAL FUNDS		 2021
£
£
2,699,080
1,720,173
4,419,253
1,008,292
156,771
375,798
1,540,861
(532,285)
1,008,576
5,427,829
5,427,829
5,427,829
5,427,829		 2021
£
£
2,699,080
1,720,173
4,419,253
1,008,292
156,771
375,798
1,540,861
(532,285)
1,008,576
5,427,829
5,427,829
5,427,829
5,427,829		 2020
£
£

2,758,103

1,720,173

4,478,276
1,008,292
174,116
158,995
1,341,403
(614,839)

726,564

5,204,840

5,204,840

5,204,840

5,204,840		 2020
£
£

2,758,103

1,720,173

4,478,276
1,008,292
174,116
158,995
1,341,403
(614,839)

726,564

5,204,840

5,204,840

5,204,840

5,204,840
4,419,253





1,008,576		 4,478,276





726,564
1,540,861
(532,285)		 1,341,403
(614,839)




5,427,829 5,204,840
5,427,829 5,204,840
5,427,829 5,204,840
5,427,829 5,204,840

These financial statements were approved by the Board of Trustees on 11/08/2022 and were signed on its behalf by;

Mr Raza ul Haq Trustee

The notes on pages 18 to 30 form part of these financial statements.

16

Madni Trust Statement of Cash flows For The Year Ended 31 August 2021

Notes
Cash flows from operating activities:
Cash generated from operations
17
Cash flows from investing activities:
Purchase of tangible fixed assets
11
Sale of tangible fixed assets
Interest received
4
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
264,607
(47,809)
-
5
(47,804)
216,803
158,995
375,798		 2020
£
107,293
(16,962)
11,500
42
(5,420)
101,873
57,122
158,995

The notes on pages 18 to 30 form part of these financial statements.

17

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

1. ACCOUNTING POLICIES

1.1. Basis of preparing the financial statements

The financial statements of the charity have been prepared in accordance with the Charities SORP (FRS102) '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) – (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost of transaction value unless otherwise stated in the relevant accounting policy or note.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The charity meets the definition of a public benefit entity under FRS 102.

1.2. Income

Gross income represents the value of donations received from donors.

Income recognition

Income, whether from exchange or non-exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other events results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.

Income subject to terms and conditions which must be met before the charity the charity is entitled to the resources is not recognised until the conditions have been met.

All income is accounted for gross, before deducting any related fees or costs.

Donations and legacies: These comprise all incoming resources from donations and gifts collected directly from individuals or organisations.

Charitable activities: These comprise income generated from the religious educational school, sales of books and boarding and lodging.

Investment Income: These comprise rental income from investment properties and interest receivable and similar charges.

Other Income: These comprise receipts from government support in relation to corona virus job retention scheme and realised gains/losses on tangible assets.

1.3. Expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reserved if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

18

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

1. ACCOUNTING POLICIES - CONTINUED

1.4. Allocation and apportionment of costs

Resources expended are allocated to the particular activity where a cost relates directly to that activity. However, the costs of administration and support are of necessity apportioned between the activities of the charity.

The charity has no material costs of raising funds and so all support costs are apportioned to expenditure on charitable activities.

1.5. Volunteers

In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.

However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in note 8.

1.6. Tangible fixed assets

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

Freehold 2% on Cost
Leasehold In accordance with the property
Plant & Machinery 20% on Cost
Motor Vehicles 25% on Cost
Fixtures & Fittings 20% on Cost
Computer Equipment 50% on Cost

1.7. Investment Properties

Investment properties are accounted for as follows:

1.8. Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.9. Financial Instruments

i. Financial assets

Basic financial assets, including debtors and other receivables and cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

19

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

1. ACCOUNTING POLICIES – CONTINUED

i. Financial assets - Continued

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii. Financial liabilities

Basic financial liabilities, including creditors and other payables are classified as debt, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless they are included in a hedging arrangement.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

1.10. Taxation

The charity is exempt from tax on its charitable activities.

1.11. 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.

20

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

1. ACCOUNTING POLICIES – CONTINUED

1.11. Fund accounting - Continued

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.12. Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme to the National Employment Savings Trust (NEST). It was set up to facilitate automatic enrolment as part of the government's workplace pension reforms under the Pensions Act 2008. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

1.13. Donated gifts, services and facilities

Donated gifts, professional services and facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity is probable and the economic benefit arising can be measured reliably. In accordance with the Charities SORP (FRS102) time given by volunteers is not recognised. Details of the contribution made by volunteers is given elsewhere in the annual report.

On receipt, donated gifts, professional services or facilities are recognised on the basis of the value of the gift to the charity; a corresponding amount is then recognised as expenditure in the period of receipt.

1.14. Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

1.15. Critical accounting estimates and assumptions

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(a) Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property plant and equipment, and note 1.6 for the useful economic lives for each class of assets.

1.16. Provision

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

21

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2020

2. INCOME FROM DONATIONS AND LEGACIES

Donations
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
283,295

283,295
281,030
2,265
283,295		 2020
£
156,144
156,144
154,294
1,850
156,144

3. INCOME FROM CHARITABLE ACTIVITIES – Unrestricted funds

Activity
Income from school
Operation of Islamic schools and
Islamic religious and community
centres
Income from book
sales		 2021
£
572,196
23,943
596,139		 2020
£
461,722
28,815
490,537

The education provided in the school is subsidised, and the parents contribute according to their financial condition.

4. INVESTMENT INCOME – Unrestricted funds

Rents received
Deposit account interest
. OTHER INCOME – Unrestricted funds
Net loss on disposal of tangible assets
Government Support – Coronavirus Job Retention Scheme		 2021
£
126,033
5
126,038
2021
£
-
157,215
157,215		 2020
£
105,748
42
105,790
2020
£
(2,227)
108,609
106,382

5. OTHER INCOME – Unrestricted funds

22

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

6. CHARITABLE ACTIVITIES

Madni Trust
Notes to the Financial Statements
For The Year Ended 31 August 2021
. CHARITABLE ACTIVITIES
Wages and salaries
Rates and water
Insurance
Light and heat
Other property expenses
Services
Advertising, printing and postage
Food and supplies
Education and training supplies
Depreciation
Charity expense
Pension
Bad debts
Allowance for doubtful debts
Share of Support costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds
. SUPPORT COSTS
Management
Finance
Governance costs		 2021
£
458,468
44,077
11,606
43,955
83,089
26,377
6,197
28,378
16,831
106,832
7,191
3,799
-
38,174
874,974
64,724
939,698
937,433
2,265
939,698
2021
£
50,691
6,833
7,200
64,724		 2020
£
364,035
50,837
28,074
66,234
73,652
25,161
9,736
24,735
10,322
99,252
4,640
3,863
15,007
-
775,548
43,389
818,937
723,654
95,283
818,937
2020
£
30,854
5,335
7,200
43,389

7. SUPPORT COSTS

Support costs include auditors’ remuneration of £7,200 (2020: £7,200)

8. THE CONTRIBUTION OF VOLUNTEERS

The volunteers work tirelessly to achieve the goals of the charity and their contribution cannot be measured.

23

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

9. TRUSTEES’ REMUNERATION AND BENEFITS

Transactions with Trustees

During the year ended 31 August 2021 the charity paid a salary of £20,860 (2020: £12,100) to the trustee Ali Raza and £11,400 (2020: £10,296) to the trustee Mohammad Akram. These trustees were employed by the charity before they became trustees of the charity.

No expenses were incurred by the trustees on behalf of the charity during the year.

10. EMPLOYEES

Number of employees

The average monthly number of employees during the year

was:

Number of employees
The average monthly number of employees during the year
was:
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
45
2021
£
443,888
14,580
3,799
462,267		 2020
39
2020
£
354,827
9,208
3,863
367,898

No employees received emoluments in excess of £60,000 in the year ended 31 August 2021 or in the year ended 31 August 2020.

Details of remuneration paid to the trustees is included at Note 9.

The aggregate employee benefits paid to key management personnel during the year was £64,974 (2020: £37,964).

24

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

11. TANGIBLE ASSETS

Cost
At 1 September 2020
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Depreciation charged in the year
At 31 August 2021
Carrying amount
At 31 August 2021
At 31 August 2020		 Freehold land
and buildings
£
3,659,231
19,457
3,678,688
948,104
73,574
1,021,678
2,657,010
2,711,127		 Leasehold
land and

Buildings
£
260,876
-
260,876
246,434
10,831
257,265
3,611
14,442		 Plant and
Equipment
£
148,425
995
149,420
145,005

1,339
146,344
3,076
3,420		 Fixture
and
Fittings
£
158,972
18,291
177,263
143,295
11,166
154,461
22,802
15,677		 Computer
equipment
£
90,985
9,066
100,051
90,985
4,533
95,518
4,533
-		 Motor
vehicles
£
33,489
-
33,489
20,052
5,389
25,441
8,048
13,437		 Total
£
4,351,978
47,809
4,399,787
1,593,875
106,832
1,700,707
2,699,080
2,758,103

25

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

11. TANGIBLE ASSETS (Continued)

Madni Trust
Notes to the Financial Statements
For The Year Ended 31 August 2021
1. TANGIBLE ASSETS (Continued)
Cost or Valuation
As at 1 September 2020
Revaluation
As at 31 August 2021		 Investment
Properties
£
1,720,173
-
1,720,173		 Total
£

1,720,173

-

1,720,173

The investment properties were assessed for fair value by the trustees of the trust by performing the following steps:

Based on the above, the trustees conclude that the current carrying value of investment properties reflects the fair value of the investment properties.

12. STOCK

2. STOCK
Property development
3. DEBTORS
Trade debtors
13.1
Other debtors
Accrued income
13.1. TRADE DEBTORS
Trade debtors
Less: Allowance for doubtful debts		 2021
£
1,008,292
2021
£
20,905
8,689
127,177
156,771
2021
£
59,079
(38,174)
20,905		 2020
£
1,008,292
2020
£
40,986
5,953
127,177
174,116
2020
£
40,986
-
40,986

13. DEBTORS

26

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

14. CREDITORS

Madni Trust
Notes to the Financial Statements
For The Year Ended 31 August 2021
4. CREDITORS
Community loans
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
395,696
46,192
71,202
19,195
532,285		 2020
£
520,090
23,708
47,396
23,645
614,839

Deferred income includes rent paid in advance of NIL (2020: £1,833) represents paid in advance.

15. MOVEMENT IN FUNDS - 2021

INCOME AND ENDOWMENTS
Donation and legacies
Charitable activities
Investment Income
Other income
Total Income
EXPENDITURE ON CHARITABLE
ACTIVITIES
Operation of Islamic Schools and Islamic
religious and community centres
Direct Costs
Support costs
Total expenditure
Net income
Net movement in funds for the year
RECONCILIATION OF FUNDS
At 31 August 2020
At 31 August 2021		 General
Unrestricted
Funds
£
281,030
596,139
126,038
157,215
1,160,422
872,709
64,724
937,433
222,989
222,989

5,204,840
5,427,829		 Total
Unrestricted
Funds
£
281,030
596,139
126,038
157,215
1,160,422
872,709
64,724
937,433
222,989
222,989
5,204,840
5,427,829		 Qurbani
Restricted
Funds
£
2,265
-
-
-
2,265
2,265
-
-
-
-

-
-		 Total
Restricted
Funds
£
2,265
-
-
-
2,265

2,265
-
2,265
-
-
-
-
 Total
Funds
2021
£
283,295
596,139
126,038
157,215
1,162,687
874,974
64,724
939,698
222,989
222,989
5,204,840
5,427,829

27

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2020

15.1 MOVEMENT IN FUNDS - 2020

INCOME AND ENDOWMENTS
Donation and legacies
Charitable activities
Investment Income
Other income
Total Income
EXPENDITURE ON CHARITABLE ACTIVITIES
Operation of Islamic Schools and Islamic religious
and community centres
Direct Costs
Support costs
Total expenditure
Net income
Gain on revaluation of investment properties
Net movement in funds for the year
RECONCILIATION OF FUNDS
At 31 August 2019
At 31 August 2020		 General
Unrestricted
Funds
£
154,294
490,537
105,790
106,382
857,003
680,265
43,389
723,654
133,349
831,403
964,752
4,240,088
5,204,840		 Total
Unrestricted
Funds
£
154,294
490,537
105,790
106,382
857,003
680,265
43,389
723,654
133,349
831,403
964,752
4,240,088
5,204,840		 Qurbani
Restricted
Funds
£
1,850
-
-
-
1,850
1,850
-
1,850
-
-
-
-
-		 Beechdale
Court
Total
Restricted
Restricted
Funds
Funds
£
£
-
1,850
-
-
-
-
-
-
-
1,850
93,433
95,283
-
-
93,433
95,283
(93,433)
(93,433)
-
-
(93,433)
(93,433)
93,433
93,433
-
-		 Total
Funds
£
156,144
490,537
105,790
106,382
858,853
775,548
43,389
818,937
39,916
831,403
871,319
4,333,521
5,204,840

28

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

16. ANALYSIS OF NET ASSETS BY FUND

6. ANALYSIS OF NET ASSETS BY FUND
Fund balances at 31 August 2021 are represented by:
Tangible assets
Investment properties
Net current assets		 Unrestricted
Funds
£
2,699,080
1,720,173
1,008,576
5,427,829		 Restricted
Funds
£
-
-
-
-		 Total
£

2,699,080
1,720,173
1,008,576
5,427,829

17. CASH GENERATED FROM OPERATIONS

Surplus For the Year
Adjustments for:
Investment income recognised in statement of financial
activities
Revaluation gain on investment properties
Bad debts
Allowance for doubtful debts
Depreciation charged
Loss on disposal of tangible assets
Movement in working capital
(Increase) /decrease in debtors
Decrease in creditors
Cash generated from operations		 2021
£
222,989


(5)
-
-
38,174
106,832
-


(20,829)
(82,554)
**264,607 **		 2020
£
871,319
(42)
(831,403)
15,007
-
99,252
2,227
32,604
(81,671)
107,293

18. RETIREMENT BENEFIT SCHEMES

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund (NEST).

The charge in respect of defined contribution schemes was £3,799 (2020: £3,863).

29

Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2021

19. Financial Instruments

The Charity has the following financial instruments:

Financial assets at fair value through profit or loss

Financial assets that are debt instruments measured at amortised cost
Trade debtors
Other debtors
Accrued income
Financial liabilities measured at amortised cost
Trade creditors
Other creditors
Community Loan
Accruals and deferred income		 2021
£

20,905
8,689
127,177
156,771
2021
£
46,192
71,202
395,696
19,195
532,285		 2020
£


40,986

5,953

127,177

174,116
2020
£

23,708

47,396

520,090

21,812

613,006

20. RELATED PARTY TRANSACTIONS

During the year under review a total amount of NIL (2020: £6,010) was loaned to the charity by the trustees. As at the year end, £65,640 (2020: £75,640) was owed to trustees in respect of loans and during the year charity returned loan of £10,000 (NIL:2020). The total amount owed to trustees includes amounts loaned of £31,880 (2020: £31,880) from c/o the trustees.

The other related party transactions include trustees and key management personnel remuneration which are disclosed in note 9 and note 10 respectively.

30