## _**MADNI TRUST**_ 





## **ANNUAL REPORT** 

**For The Year Ended 31 August 2022** 

**REGISTERED CHARITY NUMBER: 1022471** 



## _**Inside this Report**_ 

## Table of Contents 

**HIGHLIGHTS OF 2021-2022 .............................................................................................................................................................. 1 REPORT OF THE TRUSTEES .......................................................................................................................................................... 2 Mission statement ......................................................................................................................................................................... 2 Aims ............................................................................................................................................................................................... 2 Barriers ......................................................................................................................................................................................... 2 OUR ACHIEVEMENTS ...................................................................................................................................................................... 3 JAMIA AL-HUDAA – NOTTINGHAM ............................................................................................................................................. 3 Aims ............................................................................................................................................................................................... 3 Successful GCSE Results at Jamia Al Hudaa ............................................................................................................................ 4 Progress Monitoring Inspection .................................................................................................................................................. 4 GENERAL MASAJID UPDATE ........................................................................................................................................................ 4 ACQUISITION OF A NEW MASJID IN WROSE, BRADFORD: ADDRESSING A COMMUNITY NEED ........................... 4 MASJID IBRAHIM .............................................................................................................................................................................. 5 ASPLEY ISLAMIC CENTRE ............................................................................................................................................................. 7 PLANS FOR THE FUTURE ..............................................................................................................................................................11 FINANCIAL REVIEW .......................................................................................................................................................................11 VOLUNTEER SUPPORT ...................................................................................................................................................................12 RISKS ....................................................................................................................................................................................................12 RESERVES POLICY ..........................................................................................................................................................................12 FUTURE FUNDING ............................................................................................................................................................................12 RELATED PARTIES ..........................................................................................................................................................................12 RECRUITMENT, APPOINTMENT AND TRAINING OF TRUSTEES ......................................................................................12 ARRANGEMENTS FOR SETTING PAY AND REMUNERATION OF KEY MANAGEMENT .............................................12 PUBLIC BENEFIT ..............................................................................................................................................................................13 REFERENCE AND ADMINISTRATIVE INFORMATION ..........................................................................................................14 STATEMENT OF TRUSTEES’ RESPONSIBILITIES ...................................................................................................................15 INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MADNI TRUST ................................................................16 STATEMENT OF FINANCIAL ACTIVITIES ................................................................................................................................18 BALANCE SHEET ..............................................................................................................................................................................19 STATEMENT OF CASH FLOWS .....................................................................................................................................................20 NOTES TO THE FINANCIAL STATEMENTS ........................................................................................................................ 21-33** 



Madni Trust Annual Report 2021-22 

## **Highlights of 2021-2022** 


I am pleased to present you Madni Trust’s Annual Report for 2021-2022. I hope that you will find this report useful and hope that it provides some insight into the charitable work that Madni Trust has delivered in this last financial year. 

I am really pleased to see the ongoing progress and community engagement in the Masjid Ibrahim and Aspley Masjid projects. The community events have ensured that users continue to grow in number and the impact is evident. 

I am very excited regarding the acquisition of the new community centre and masjid in Bradford. There has been a pressing and strong demand in that particular area and we are forever grateful for having the opportunity to serve the community. 

I was very touched by another powerful graduation ceremony and pray for the future success and felicity of all our new and previous graduating students. 

I would like to thank the members of the community, our service users, donors, volunteers and above all our dedicated and committed staff who are helping Madni Trust achieve its objectives **.** 

As the work of Madni Trust has expanded significantly, we are working towards establishing Jamia Al-Hudaa as a separate entity as it requires dedicated and specialist attention in the nature of services it delivers. 

The report that you are presented with, covers the period 1 September 2021 to 31 August 2022. 

## **Dr A Zaman, Chairman** 


We are proud to present another annual report with more news of success in various Madni trust projects. 

Jamia Al-Hudaa had another great graduation ceremony and event where we came together to celebrate our achievements. The leadership team deserves praise for their consistent hard work and the latest progress monitoring report not only depicted the prior standards that were maintained but also the additional standards that were met. We have a bit more work to do and I believe we will be in a very strong position in the near future. 

Special thanks go to our students and parents who consistently support wholeheartedly throughout all the challenges we face. Our activities and delivery of education to students is improving all the time and we work vigilantly to maintain this. 

As you will also notice in this report, the Masajid work is always expanding and improving in line with the demands from our local and wider communities. We feel there is so much more to do and feel a genuine sense of excitement in relation to what the future holds for us. 

As the secretary, the   role   requires   me to constantly encourage staff and make them feel appreciated at all time 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 position and will continue to serve the Trust with my full commitment and pray that Madni Trust succeeds in its work. 

## **Raza Ul Haq, Secretary** 

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Madni Trust Annual Report 2021-22 

## **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**_ 

- To remove barriers to education. 

- To provide and raise awareness of education and training in diverse areas of United Kingdom. 

- To ensure that each student develops a good and humble character. 

- Madni Trust’s vision is that every individual needs to be educated without having any difficulties. This can only be achieved by providing facilities that a student will be comfortable in. 

- Provide different educational programmes running throughout the year around the UK. 

- To ensure that parents living on low income have the opportunity to provide their children with quality education. 

- Ensure that graduating students make a positive impact whilst working in their communities. 

- To engage the youth who are falling into various forms of anti-social behaviours due to lack of skills and opportunities and provide them relevant education and training facilities. 

- All the work that Madni Trust has done and continues to do is only possible through working with and interacting with the local and national community on a regular basis. 

- To establish centres where we can provide the facilities for the above aims to be fulfilled. 

## _**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: 

- English, not being primary language for the majority of Asian Muslims; 

- Lack of specialist training; 

- Lack of adequate skills and qualifications in the youth essential for jobs; 

- There is a low representation of the ethnic minorities in the managerial positions and Asian women who are employed, there are no suitable childcare facilities for their children under-fives. 

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Madni Trust Annual Report 2021-22 

## **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: 

- Early learning provisions for the under 5’s and bilingual staff. 

- Single sex schooling to achieve in both national curriculum and faith education. 

- Supplementary classes for school-aged children who study in mainstream schools. 

- Establishing community facilities in various areas. 

- Nursery / Crèche facilities for staff and the local community. 

## **Our achievements** 

- Producing excellent graduates who work for the betterment of the community. 

- Increased intake in the number of both day and residential students. 

- Liase closely with community organisations at local, regional and national level for the propagation of educational needs. 

- Working closely with voluntary organisations with similar aims and objectives to find ways of reducing unemployment and increasing awareness and benefits of education and training. 

- Organising various community events to promote community relations and cohesion. 

- Establishing the Kettlebridge site (Al-Huda Academy) to provide the local community with a centre for community activities & other training and educational programmes for the local community. 

- Establishing the centre in Aspley to provide the local community with a centre for community activities and other training and educational programmes for the local community. 

- Establishing a Masjid and community centre in Wrose, Bradford. This significant milestone has provided our organization with a dedicated space to serve the spiritual, educational, and social needs of the community. The new facility enables us to expand our reach and impact, fostering a stronger sense of unity and offering a wide range of services to enrich the lives of individuals in the local area. 

- Achieving ‘Good’ for Jamia Al-Hudaa in the social care full inspection. 

- Multi-faith community cohesion events. 

## **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**_ 

- To provide quality education for 11-16-year-old girls and 16+ girls with residential facilities. 

- To maintain the number of students. 

- Offer a range of study programmes focusing on Islamic Sciences to complement the National Curriculum. 

- Liaise with relevant Universities, educational bodies & other education providers to recognise the Madni Trust Aalimah course as being equivalent to a Degree in Islamic Studies. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Successful GCSE Results at Jamia Al Hudaa** 

Jamia Al-Hudaa celebrates excellent GCSE results this year. Students have achieved outstanding academic success, showcasing their hard work and dedication. These impressive results reflect the high standards of education and the supportive learning environment at our institution. Congratulations to all the students and the dedicated teaching staff for their remarkable achievements. Jamia al Hudaa remains committed to providing a nurturing educational environment that fosters academic excellence and character development. 

## **Progress Monitoring Inspection** 

We recently underwent an Ofsted inspection from the 30th November to 2nd December 2021, which highlighted several areas where our Jamia has excelled and met the required standards. This is a testament to the hard work and dedication of our team. Although there were a few areas that need further improvement, we are committed to addressing these issues and making the necessary changes to ensure we surpass the expectations in the next inspection. We view this feedback as an opportunity for growth and are confident in our ability to meet and exceed the standards set by Ofsted in the near future. 

## **General Masajid Update** 

## **Acquisition of a New Masjid in Wrose, Bradford: Addressing a Community Need** 

Madni Trust is pleased to announce the recent acquisition of a new Masjid in Wrose, Bradford, fulfilling a critical need within the local community. The purchase of this masjid represents a significant milestone in our mission to provide a dedicated space for worship, community activities, and Islamic education in the Wrose and Bradford area. 

The decision to acquire the masjid was driven by a thorough assessment of the community's needs and the growing demand for a centralized location for congregational prayers and religious gatherings in Wrose, Bradford. This strategic move will greatly benefit the community by providing a permanent and accessible facility to support their spiritual and communal aspirations. 

The new masjid will serve as a focal point for individuals and families seeking a space to come together, strengthen their faith, and engage in educational and social programs. It will foster a sense of unity, offering a welcoming environment for worshipers of all ages and backgrounds. 

The acquisition of the masjid in Wrose, Bradford reflects Madni Trust's commitment to serving the broader community by providing the necessary infrastructure for spiritual growth, learning, and community engagement. We acknowledge the generous support and contributions from community members, whose dedication and donations made this milestone possible. 

Moving forward, we are dedicated to optimizing the potential of the newly acquired masjid, ensuring its facilities and services meet the evolving needs of the community in Wrose, Bradford. We will strive to create an inclusive and vibrant space that fosters spiritual development, community engagement, and the preservation of Islamic values and teachings. 

In conclusion, the acquisition of the masjid in Wrose, Bradford is a significant step in fulfilling the aspirations and needs of the local community. Madni Trust remains committed to its mission of providing a nurturing environment for worship, education, and community development in Wrose, Bradford. We look forward to the positive impact this new masjid will have on the lives of community members and the broader Wrose, Bradford community as a whole. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Masjid Ibrahim** 

## **Work, Activities & Building Improvements** 

Developments and Achievements at Masjid Ibrahim: Enhancing Facilities, Activities, and Programs: 

1. **Ongoing Programs:** The masjid has been actively organizing and hosting a range of programs that cater to the spiritual, educational, and social needs of the community. These programs have been well-received and have provided valuable opportunities for individuals to connect, learn, and grow together. 

2. **Completion of Upper Floor:** The construction of the upper floor has reached its completion stage. This spacious area is now fully operational and serves as a regular venue for classes and various programs. It has become an invaluable asset for accommodating the growing needs of the community in terms of educational and religious activities. 

3. **Pending Minor Works:** Although the main construction tasks have been accomplished, there are some remaining minor works to be addressed. Notably, attention is still required for the entrance corridor area designated for women. As an interim measure, an alternative entrance has been arranged to facilitate their access and ensure a welcoming environment for all attendees. 


4. **Replacement of Collapsed External Drains:** The project necessitated the excavation and replacement of the old external drains, which had collapsed and were no longer functional. The drainage system was successfully replaced, ensuring proper water flow and preventing any further issues. 

5. **Completion of Toilets and Ablution Area for Sisters:** Extensive work was undertaken to construct and equip new toilets and ablution facilities specifically for sisters. This involved the installation of a comprehensive drainage system, complete piping, and all necessary components to ensure the provision of clean and functional amenities. These newly finished facilities contribute to creating a welcoming and convenient environment for female worshippers, addressing their specific needs within the Masjid premises. 

6. **Completion of Women's Hall:** The dedicated women's hall has been successfully completed and furnished with carpeting, making it a comfortable and inviting space for sisters. This well-appointed hall is now ready for immediate use, offering a conducive environment for women to participate in religious and community activities. 

This report provides an overview of the progress made and activities undertaken at Masjid Ibrahim. The completed works, including the replacement of external drains, completion of the upper floor and women's hall, and the organization of community events and programs, demonstrate the ongoing efforts to enhance the facilities and services offered by the masjid for the benefit of the community. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 






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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Aspley Islamic Centre** 


## **nd New expansion of 2 floor** 

The Aspley Masjid is currently undergoing a significant expansion project to construct a new second floor dedicated to facilitating youth activities. The objective of this expansion is to engage and attract young community members by providing a designated space for their recreational and social needs. The second floor will be 

equipped with amenities such as a pool table, table tennis, and other recreational facilities. This addition aligns with the masjid's commitment to nurturing the youth and promoting their active involvement within the community. By expanding its services and addressing the specific needs and interests of the youth, Aspley Masjid aims to attract a wider demographic and strengthen its position as a community hub. The construction is progressing well, with a diligent focus on high-quality craftsmanship and attention to detail to create a safe and welcoming environment for the youth. Upon completion, the second-floor expansion is expected to have a positive impact on the community, enhancing youth engagement, fostering positive development, and enriching the overall services provided by Aspley Masjid. 



## **Main Hall Completion** 

The main hall of Aspley Masjid is on the verge of completion, pending the finishing of major construction works in the remaining parts of the building. Once these essential tasks are finalized, the installation of carpets in the main hall will commence, offering a polished and inviting space for congregational prayers and community events. 

## **Project Overview:** 

Aspley Masjid has undertaken extensive renovations and construction efforts to enhance the main hall, aiming to create a comfortable and aesthetically pleasing environment for worshippers and community members. The main hall serves as a central gathering place for congregational prayers, religious lectures, and various social and educational activities. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Remaining Construction Works:** 

To ensure a seamless integration of the main hall within the broader structure, extensive construction works are currently underway in other areas of the building. These significant tasks play a vital role in completing the overall project and creating a cohesive and harmonious atmosphere throughout the masjid. It is worth mentioning that this endeavour has been a community-driven effort, with various individuals offering their support in different ways. 

The community has demonstrated remarkable solidarity by contributing their time, skills, and resources to facilitate the construction process. Many community members have actively participated in physically demanding tasks, such as moving floorboards and installing them in the main hall. Their dedicated efforts and hands-on involvement have been instrumental in bringing this project closer to fruition. 

The spirit of collective collaboration and shared responsibility within the community has been invaluable in ensuring the successful progression of the construction works. The selfless contributions of community members exemplify their commitment to the masjid's growth and development, and their involvement serves as a testament to the strong bonds and sense of unity within the Aspley Masjid community. 

## **Anticipated Completion:** 

The completion of the main hall is contingent upon the finishing of the major construction works in the remaining parts of the building. Aspley Masjid is committed to ensuring that all necessary tasks are diligently carried out to meet the highest standards of quality and craftsmanship. Once the construction works are finalized, the installation of carpets in the main hall will promptly follow, contributing to the final touches of the project. 

## **Benefits of Completion:** 

The full completion of the main hall will bring several benefits to Aspley Masjid and its community members: 

1. **Enhanced Atmosphere:** The installation of carpets in the main hall will significantly improve the overall ambiance, creating a warm and inviting space for worshippers and attendees. 

2. **Functional Space:** With the main hall fully completed, Aspley Masjid will have a versatile and functional space that can accommodate larger congregations and a wide range of events, facilitating a more inclusive and vibrant community experience. 

3. **Aesthetically Pleasing Environment:** The finishing touches in the form of carpets will enhance the visual appeal of the main hall, providing a serene and dignified setting for prayers and gatherings. 

## **Conclusion:** 

Aspley Masjid eagerly anticipates the completion of the major construction works in the remaining parts of the building, which will pave the way for the installation of carpets in the main hall. This final phase of the project will signify the fulfilment of the masjid's vision to create a welcoming and harmonious space for worshippers and community members. The main hall will serve as a centrepiece for spiritual, educational, and social activities, fostering a sense of unity and providing a serene atmosphere for all who visit Aspley Masjid. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 



## **Aspley Masjid - Sister Side Progress and Accommodation** 

In conjunction with the ongoing second floor expansion project, Aspley Masjid is making significant progress in developing the sister side of the masjid. This dedicated space for women will be completed simultaneously with the second-floor construction, offering a relatively large hall that can accommodate a greater number of sisters compared to other masajid. The sister side aims to provide an inclusive and empowering environment for women's activities and worship. 

## **Project Overview:** 

The sister side development at Aspley Masjid aims to create a welcoming and inclusive space for women within the masjid premises. It encompasses a spacious hall designed to cater specifically to the needs of the sisters in the community. The construction of this hall is progressing well and will complement the existing facilities, offering an enhanced experience for women who visit the masjid. 

## **Accommodation Capacity:** 

The hall within the sister side has been thoughtfully designed to accommodate a larger number of sisters compared to traditional masajid. Its relatively larger size allows for a comfortable and spacious environment where women can actively participate in various activities, including religious worship, educational programs, and community gatherings. Aspley Masjid recognizes the importance of providing ample space to meet the growing needs of the community. 

## **Completion Timeline:** 

The sister side project will be finalized upon the completion of the second-floor expansion. As both projects are progressing simultaneously, the masjid is committed to ensuring a cohesive integration of the sister side with the overall structure. The completion timeline aligns with the masjid's dedication to providing a comprehensive and inclusive space for all members of the community, including women. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Impact and Benefits:** 





The completion of the sister side will have several positive impacts on the community and the masjid itself: 

1. **Inclusivity:** The dedicated space for women reflects the masjid's commitment to inclusivity and providing equal opportunities for women to engage in religious, educational, and social activities. 

2. **Enhanced Experience:** The relatively large hall will offer a comfortable and accommodating environment for sisters, allowing them to fully participate in activities and worship. 

3. **Community Engagement:** The sister side will foster stronger community connections among women, providing opportunities for support, networking, and a sense of belonging within the masjid. 

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Madni Trust Annual Report 2021-22 

## **Report of the Trustees – Continued** 

## **Plans for the Future** 

- Continue services in all centres according to expansion of community. 

- Arrange more programmes and events focusing on important community issues e.g., drugs, gangs, knife crime etc. 

- Increase in the variety of classroom-based courses available at Madni Trust/Jamia Al- Hudaa 

- Establish Jamia Al-Hudaa as a separate entity to provide more focus to the provisions at Jamia. 

- To provide educational and training courses across various communities locally and nationally where possible. 

- Widening participation of the local community and community groups in furthering the aims and objectives 

- Funeral car & funeral services provided at cost level including refrigerator for storage of body 

- Re-pay loans taken for purchase of premises to expand community activities. 

- Investment in people through work experience and training in ways to acquire outstanding results 

- Completion of all building and renovation projects to provide an excellent place to learn, research and enjoy 

- To work with different external bodies to allow Madni Trust to run different training and educational programmes. 

## **Financial Review** 

|**Income**<br>Donations & legacies<br>Charitable activities<br>Investments<br>Other income<br>**Total Income**<br>**Total Expenditure**<br>**Surplus**<br>**Total Funds**|**2022**<br>**£**<br>269,585<br>601,916<br>141,622<br>16,399<br>1,029,522<br>879,623<br>149,899<br>**5,577,728**|**2021**<br>**£**<br>283,295<br>596,139<br>126,038<br>157,215<br>1,162,687<br>939,698<br>222,989<br>**5,427,829**|**Change**<br>**£**<br>(13,710)<br>5,777<br>15,584<br> (140,816)|
|---|---|---|---|
||||(133,165)<br>(60,075)<br>(73,090)|
||||**149,899**|



In the current financial year, the charity's total income has decreased by £133,165. However, the charity has effectively maintained its operations at an optimal level by reducing its total expenditure by £60,075. 

The charity has also managed to generate interest income of £11 and income from investment properties of £141,611. Other income amounting to £16,399 primarily consists of Government support for Corona Virus Job Retention Scheme. 

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Madni Trust Annual Report 2021-22 

## **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 2022 the charity had funds of £ 5,577,728 (2021: 5,427,829). 

The trustee’s 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 & 21 of the accounts. 

## **Recruitment, Appointment and Training of Trustees** 

The Board of Trustees will consist of not less than five and no more than 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. 

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Madni Trust Annual Report 2021-22 

## **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 are directed at those individuals and communities identified in the objectives of the charity. 

   - 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. 

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Madni Trust Annual Report 2021-22 

## **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: 

Dr 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 Ali Raza (Finance Manager) Miss Suffia Raza (Head of Curriculum/ DSL) 

Approved by the board of Trustees and signed on its behalf 


------------------------------------------------------------- 

Mr Raza ul Haq Trustees Date: ___________________ 28/11/2023 

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Madni Trust Annual Report 2021-22 

## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK 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 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: 



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Mr Raza ul Haq 

Trustee 

Date: 28/11/2023 

15 



**Madni Trust Independent Auditor’s Report For The Year Ended 31 August 2022** 

## **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 2022 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: 

- give a true and fair view of the state of the charity's affairs as at 31 August 2022 and of its incoming 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 Charities Act 2011. 

## **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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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 other information comprises the information included in the trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

16 



**Madni Trust Independent Auditor’s Report For The Year Ended 31 August 2022** 

## **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: 

- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or 

- the charity has not been kept adequate records; or 

- the financial statements are not in agreement with the accounting records and returns: or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the statement of trustees' responsibilities on page 15, 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 auditor’s 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 Khattak (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: 28/11/2023 

17 



## **Madni Trust Statement of Financial Activities For The Year Ended 31 August 2022** 

|**Notes**<br>**Income from:**<br>Donations & legacies<br>**2**<br>Charitable activities<br>**3**<br>Investments<br>**4**<br>Other income<br>**5**<br>**Total income**<br>**Expenditure:**<br>Charitable activities<br>**6**<br>**Net income**<br>**Net movement in funds**<br>**Fund balances at 1 September 2021**<br>**16**<br>**Fund balances at 31 August 2022**|**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>266,405<br>601,916<br>141,622<br>16,399<br>**1,026,342**<br>876,443<br>**149,899**<br>**149,899**<br>5,427,829<br>**5,577,728**|**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>3,180<br>**-**<br>**-**<br>**-**<br>**3,180**<br>3,180<br>-<br>**-**<br>**-**<br>-|**Total**<br>**2022**<br>**£**<br>269,585<br>601,916<br>141,622<br>16,399<br>**1,029,522**<br>879,623<br>**149,899**<br>**149,899**<br>5,427,829<br>**5,577,728**|**Total**<br>**2021**<br>**£**<br>283,295<br>596,139<br>126,038<br>157,215|
|---|---|---|---|---|
|||||**1,162,687**|
|||||939,698|
|||||**222,989**|
|||||**222,989**<br>5,204,840|
|||||**5,427,829**|



The notes on pages 21 to 33 form part of these financial statements. 

18 



## **Madni Trust Balance Sheet As at 31 August 2022** 

|**Notes**<br>**FIXED ASSETS**<br>Tangible assets<br>**11**<br>Investment properties<br>**12**<br>**CURRENT ASSETS**<br>Stock<br>**13**<br>Debtors<br>**14**<br>Cash at bank and in hand<br>**Creditors: Amounts Falling Due Within One**<br>**Year**<br>**15**<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**NET ASSETS**<br>**INCOME FUNDS**<br>Unrestricted funds<br>**16**<br>**TOTAL FUNDS**|**2022**<br>**£**<br>**£**<br>3,031,259<br>1,720,173<br>4,751,432<br>1,008,292<br>87,825<br>168,343<br>1,264,460<br>(438,164)<br>826,296<br>5,577,728<br>**5,577,728**<br>5,577,728<br>**5,577,728**|**2022**<br>**£**<br>**£**<br>3,031,259<br>1,720,173<br>4,751,432<br>1,008,292<br>87,825<br>168,343<br>1,264,460<br>(438,164)<br>826,296<br>5,577,728<br>**5,577,728**<br>5,577,728<br>**5,577,728**|**2021**<br>**£**<br>**£**<br> <br>2,699,080<br> <br>1,720,173<br> <br>4,419,253<br>1,008,292<br>156,771<br>375,798<br>1,540,861<br>(532,285)<br> <br>1,008,576<br> <br>5,427,829<br> <br>**5,427,829**<br> <br>5,427,829<br> <br>**5,427,829**|**2021**<br>**£**<br>**£**<br> <br>2,699,080<br> <br>1,720,173<br> <br>4,419,253<br>1,008,292<br>156,771<br>375,798<br>1,540,861<br>(532,285)<br> <br>1,008,576<br> <br>5,427,829<br> <br>**5,427,829**<br> <br>5,427,829<br> <br>**5,427,829**|
|---|---|---|---|---|
|||4,751,432<br> <br> <br> <br> <br> <br>826,296||4,419,253<br> <br> <br> <br> <br> <br>1,008,576|
||1,264,460<br>(438,164)||1,540,861<br>(532,285)||
||||<br> <br> <br> <br>||
|||5,577,728||5,427,829|
|||**5,577,728**||**5,427,829**|
|||5,577,728||5,427,829|
|||**5,577,728**||**5,427,829**|



These financial statements were approved by the Board of Trustees on 28/11/2023 and were signed on its behalf by; 


Mr Raza ul Haq Trustee 

The notes on pages 21 to 33 form part of these financial statements. 

19 



## **Madni Trust Statement of Cash flows For The Year Ended 31 August 2022** 

|**Notes**<br>**Cash flows from operating activities:**<br>Cash generated from operations<br>**18**<br>**Cash flows from investing activities:**<br>Purchase of tangible fixed assets<br>**11**<br>Interest and rents from investments<br>**4**<br>**Net cash used in investing activities**<br>**Net (decrease) / increase in cash and cash equivalents**<br>Cash and cash equivalents at beginning of year<br>**Cash and cash equivalents at end of year**|**2022**<br>**£**<br>80,224<br>(429,301)<br>141,622<br>(287,679)<br>(207,455)<br>375,798<br>**168,343**|**2021**<br>**£**<br>138,574|
|---|---|---|
|||(47,809)<br>126,038|
|||78,229|
|||216,803<br>158,995|
|||**375,798**|



The notes on pages 21 to 33 form part of these financial statements. 

20 



**Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **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 operation of educational institutes. 

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. 

21 



**Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **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** 

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: 

|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: 

- Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure. 

- Investment properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the statement of financial activities and accumulated in the unrestricted reserve where the gain derived from revaluation of investment property held as an unrestricted funds unless a deficit below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the statement of financial activities for the year. 

## **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. 

22 



**Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **1. ACCOUNTING POLICIES – CONTINUED** 

## **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. 

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. 

23 



**Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **1. ACCOUNTING POLICIES – CONTINUED** 

## **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. 

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. 

24 



**Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **2. INCOME FROM DONATIONS AND LEGACIES** 

|Donations<br>**Analysis by fund**<br>Unrestricted funds<br>Restricted funds<br>**. INCOME FROM CHARITABLE ACTIVITIES – Unrestricted funds**<br>Operation of Islamic Educational<br>Institutes||**2022**<br>**£**<br>269,585<br>**269,585**<br>266,405<br>3,180<br>**269,585**<br>**2022**<br>**£**<br>601,916<br>**601,916**||**2021**<br>**£**<br>283,295|
|---|---|---|---|---|
|||||**283,295**|
|||||281,030<br>2,265|
|||||**283,295**|
|||||**2021**<br>**£**<br>596,319|
|||||**596,319**|



## **3. INCOME FROM CHARITABLE ACTIVITIES – Unrestricted funds** 

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

## **4. INVESTMENT INCOME – Unrestricted funds** 

|Rental income<br>Interest income<br>**5. OTHER INCOME – Unrestricted funds**<br>Government support – Coronavirus Job Retention Scheme|**2022**<br>**£**<br>141,611<br>11<br>**141,622**<br>**2022**<br>**£**<br>16,399<br>**16,399**|**2021**<br>**£**<br>126,033<br>5|
|---|---|---|
|||**126,038**|
|||**2021**<br>**£**<br>157,215<br>**157,215**|



**Madni Trust** 

25 



**Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **6. CHARITABLE ACTIVITIES** 

|**Notes to the Financial Statements**<br>**For The Year Ended 31 August 2022**<br>**. CHARITABLE ACTIVITIES**|||||
|---|---|---|---|---|
|Wages and salaries<br>Rates and water<br>Insurance<br>Light and heat<br>Other property expenses<br>Services<br>Advertising, printing and postage<br>Food and supplies<br>Education and training supplies<br>Depreciation<br>Charity expense<br>Pension<br>Allowance for doubtful debts<br>Share of support costs (see note 7)<br>**Analysis by fund**<br>Unrestricted funds<br>Restricted funds<br>**. SUPPORT COSTS**<br>Management<br>Finance<br>Governance costs||**2022**<br>**£**<br>426,710<br>44,058<br>6,350<br>72,668<br>68,303<br>28,387<br>7,511<br>40,716<br>10,385<br>97,122<br>1,120<br>6,228<br>22,830<br>832,388<br>47,235<br>**879,623**<br>876,443<br>3,180<br>**879,623**<br>**2022**<br>**£**<br>32,903<br>7,132<br>7,200<br>**47,235**||**2021**<br>**£**<br>458,468<br>44,077<br>11,606<br>43,955<br>83,089<br>26,377<br>6,197<br>28,378<br>16,831<br>106,832<br>7,191<br>3,799<br>38,174|
|||||874,974<br>64,724|
|||||**939,698**|
|||||937,433<br>2,265|
|||||**939,698**|
|||||**2021**<br>**£**<br>50,691<br>6,833<br>7,200|
|||||**64,724**|



## **7. SUPPORT COSTS** 

Support costs include auditors’ remuneration of £7,200 (2021: £7,200) 

## **8. THE CONTRIBUTION OF VOLUNTEERS** 

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

**Madni Trust** 

26 



**Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **9. TRUSTEES’ REMUNERATION AND BENEFITS** 

Transactions with Trustees 

During the year ended 31 August 2022 the charity paid a salary of £24,960 (2021: £20,860) to the trustee Ali Raza and £11,400 (2021: £11,400) 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**<br>The average monthly number of employees during the year was:|||
|---|---|---|
|Employment costs<br>Wages and salaries<br>Social security costs<br>Other pension costs|**2022**<br>42<br>**2022**<br>**£**<br>424,702<br>2,008<br>6,228<br>**432,938**|**2021**<br>45|
|||**2021**<br>**£**<br>443,888<br>14,580<br>3,799|
|||**462,267**|



No employees received emoluments in excess of £60,000 in the year ended 31 August 2022 or in the year ended 31 August 2021. 

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 £54,869 (2021: £64,974). 

27 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

|**11. TANGIBLE ASSETS**<br>Cost<br>At 1 September 2021<br>Additions<br>At 31 August 2022<br>**Depreciation**<br>At 1 September 2021<br>Depreciation charged in the year<br>At 31 August 2022<br>**Carrying amount**<br>At 31 August 2022<br>At 31 August 2021|**Freehold land**<br>**and buildings**<br>**£**<br>3,678,688<br>414,894<br>**4,093,582**<br>1,021,678<br>69,700<br>**1,091,378**<br>**3,002,204**<br>**2,657,010**|**Leasehold**<br>**land and**<br>**Buildings**<br>**£**<br>260,876<br>**-**<br>**260,876**<br>257,265<br>3,611<br>**260,876**<br>-<br>**3,611**|**Plant and**<br>**Equipment**<br>**£**<br>149,420<br>6,750<br>**156,170**<br>146,344<br>2,689<br>**149,033**<br>**7,137**<br>**3,076**|**Fixture**<br>**and**<br>**Fittings**<br>**£**<br>177,263<br>2,293<br>**179,556**<br>154,461<br>9,883<br>**164,344**<br>**15,212**<br>**22,802**|**Computer**<br>**equipment**<br>**£**<br>100,051<br>5,364<br>**105,415**<br>95,518<br>7,215<br>**102,733**<br>**2,682**<br>**4,533**|**Motor**<br>**vehicles**<br>**£**<br>33,489<br>**-**<br>**33,489**<br>25,441<br>4,024<br>**29,465**<br>**4,024**<br>**8,048**|**Total**<br>**£**<br>4,399,787<br>429,301|
|---|---|---|---|---|---|---|---|
||||||||**4,829,088**|
||||||||1,700,707<br>97,122|
||||||||**1,797,829**|
||||||||**3,031,259**|
||||||||**2,699,080**|



28 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **12. INVESTMENT PROPERTIES** 

|**Cost or Valuation**<br>As at 1 September 2021<br>Revaluation<br>As at 31 August 2022|**2022**<br>**£**<br>1,720,173<br>**-**<br>**1,720,173**|**2021**<br>**£**<br>1,720,173<br>**-**<br>**1,720,173**|
|---|---|---|



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

- making enquiries with the local property agents 

- taking into consideration the rental yields generated by the properties, and; 

- taking into consideration the current economic conditions, and; 

- taking into consideration of the current and historical prices in the local area 

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

## **13. STOCK** 

|**13. STOCK**|||
|---|---|---|
|Property development<br>**14. DEBTORS**<br>**Note**<br>Trade debtors<br>**14.1**<br>Other debtors<br>Accrued income<br>**14.1. TRADE DEBTORS**<br>Trade debtors<br>Less: Allowance for doubtful debts|**2022**<br>**£**<br>**1,008,292**<br>**2022**<br>**£**<br>32,291<br>7,753<br>47,781<br>**87,825**<br>**2022**<br>**£**<br>93,295<br>(61,004)<br>**32,291**|**2021**<br>**£**<br>**1,008,292**|
|||**2021**<br>**£**<br>20,905<br>8,689<br>127,177|
|||**156,771**|
|||**2021**<br>**£**<br>59,079<br>(38,174)<br>**20,905**|



29 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **15. CREDITORS** 

|**Madni Trust**<br>**Notes to the Financial Statements**<br>**For The Year Ended 31 August 2022**<br>**5. CREDITORS**|||
|---|---|---|
|Community loans<br>Trade creditors<br>Other creditors<br>Accruals and deferred income|**2022**<br>**£**<br>309,696<br>10,736<br>70,591<br>47,141<br>**438,164**|**2021**<br>**£**<br>395,696<br>46,192<br>71,202<br>19,195|
|||**532,285**|



Accruals and deferred income include parental contributions received in advance amounting to £38,740 (2021: NIL). 

## **16. MOVEMENT IN FUNDS - 2022** 

|**INCOME AND ENDOWMENTS**<br>Donation and legacies<br>Charitable activities<br>Investment Income<br>Other income<br>**Total Income**<br>**EXPENDITURE ON CHARITABLE**<br>**ACTIVITIES**<br>Operation of Islamic Educational<br>Institutes<br>Direct Costs<br>Support costs<br>**Total expenditure**<br>**Net income**<br>**Net movement in funds for the year**<br>**RECONCILIATION OF FUNDS**<br>At 31 August 2021<br>At 31 August 2022|**General**<br>**Unrestricted**<br>**Funds**<br>**£**<br>266,405<br>601,916<br>141,622<br>16,399<br>**1,026,342**<br>829,208<br>47,235<br>**876,443**<br>149,899<br>**149,899**<br>**5,427,829**<br>**5,577,728**|**Total**<br>**Unrestricted**<br>**Funds**<br>**£**<br>266,405<br>601,916<br>141,622<br>16,399<br>**1,026,342**<br>829,208<br>47,235<br>**876,443**<br>149,899<br>**149,899**<br>**5,427,829**<br>**5,577,728**|**Qurbani**<br>**Restricted**<br>**Funds**<br>**£**<br>3,180<br>**-**<br>**-**<br>**-**<br>**3,180**<br>3,180<br>**-**<br>**3,180**<br>**-**<br>-<br>-<br>-|**Total**<br>**Restricted**<br>**Funds**<br>**£**<br>3,180<br>**-**<br>**-**<br>**-**<br>**3,180**<br>3,180<br>**-**<br>**3,180**<br>**-**<br>-<br>-<br>-|**Total**<br>**Funds**<br>**2022**<br>**£**<br>269,585<br>601,916<br>141,622<br>16,399|
|---|---|---|---|---|---|
||||||**1,029,522**|
||||||832,388<br>47,235|
||||||**879,623**|
||||||149,899|
||||||**149,899**|
||||||**5,427,829**|
||||||**5,577,728**|



30 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **16.1 MOVEMENT IN FUNDS - 2021** 

|**INCOME AND ENDOWMENTS**<br>Donation and legacies<br>Charitable activities<br>Investment Income<br>Other income<br>**Total Income**<br>**EXPENDITURE ON CHARITABLE**<br>**ACTIVITIES**<br>Operation of Islamic Educational<br>Institutes<br>Direct Costs<br>Support costs<br>**Total expenditure**<br>**Net income**<br>**Net movement in funds for the year**<br>**RECONCILIATION OF FUNDS**<br>At 31 August 2020<br>At 31 August 2021|**General**<br>**Unrestricted**<br>**Funds**<br>**£**<br>281,030<br>596,139<br>126,038<br>157,215<br>**1,160,422**<br>872,709<br>64,724<br>**937,433**<br>222,989<br>**222,989**<br>**5,204,840**<br>**5,427,829**|**Total**<br>**Unrestricted**<br>**Funds**<br>**£**<br>281,030<br>596,139<br>126,038<br>157,215<br>**1,160,422**<br>872,709<br>64,724<br>**937,433**<br>222,989<br>**222,989**<br>**5,204,840**<br>**5,427,829**|**Qurbani**<br>**Restricted**<br>**Funds**<br>**£**<br>2,265<br>**-**<br>**-**<br>**-**<br>**2,265**<br>2,265<br>**-**<br>**2,265**<br>-<br>**-**<br>**-**<br>**-**|**Total**<br>**Restricted**<br>**Funds**<br>**£**<br>2,265<br>**-**<br>**-**<br>**-**<br>**2,265**<br>2,265<br>**-**<br>**2,265**<br>-<br>**-**<br>**-**<br>**-**|**Total**<br>**Funds**<br>**£**<br>283,295<br>596,139<br>126,038<br>157,215|
|---|---|---|---|---|---|
||||||**1,162,687**|
||||||874,974<br>64,724|
||||||**939,698**|
||||||222,989|
||||||**222,989**|
||||||**5,204,840**|
||||||**5,427,829**|



31 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **17. ANALYSIS OF NET ASSETS BY FUND** 

|**7. ANALYSIS OF NET ASSETS BY FUND**||||
|---|---|---|---|
|Fund balances at 31 August 2022 are represented by:<br>Tangible assets<br>Investment properties<br>Net current assets|**Unrestricted**<br>**Funds**<br>**£**<br>3,031,259<br>1,720,173<br>826,296<br>**5,577,728**|**Restricted**<br>**Funds**<br>**£**<br>**-**<br>**-**<br>**-**<br>-|**Total**<br>**£**<br>3,031,259<br>1,720,173<br>826,296|
||||**5,577,728**|



## **18. CASH GENERATED FROM OPERATIONS** 

|Surplus For the Year<br>Adjustments for:<br>Investment income recognised in statement of financial<br>activities<br>Allowance for doubtful debts<br>Depreciation charged<br>Movement in working capital<br>Decrease / (increase) in debtors<br>(Decrease) in creditors<br>**Cash generated from operations**|**2022**<br>**£**<br>149,899<br>(141,622)<br>22,830<br>97,122<br>46,116<br>(94,121)<br>**80,224**|**2021**<br>**£**<br>222,989<br>(126,038)<br>38,174<br>106,832<br>(20,829)<br>(82,554)|
|---|---|---|
|||**138,574**|



## **19. 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 £6,228 (2021: £3,799). 

32 



## **Madni Trust Notes to the Financial Statements For The Year Ended 31 August 2022** 

## **20. 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**<br>Trade debtors<br>Other debtors<br>Accrued income<br>**Financial liabilities measured at amortised cost**<br>Trade creditors<br>Other taxes and social security<br>Other creditors<br>Community loans<br>Accruals and deferred income|**2022**<br>**£**<br>32,291<br>7,753<br>47,781<br>**87,825**<br>**2022**<br>**£**<br>10,736<br>12,026<br>58,565<br>309,696<br>8,431<br>**399,454**|**2021**<br>**£**<br>20,905<br>8,689<br>127,177|
|---|---|---|
|||**156,771**|
|||**2021**<br>**£**<br>46,192<br>12,369<br>58,833<br>395,696<br>19,195|
|||**532,285**|



## **21. RELATED PARTY TRANSACTIONSs** 

During the year under review a total amount of NIL (2021: NIL) was loaned to the charity by the trustees. As at the year end, £65,640 (2021: £65,640) was owed to trustees in respect of loans and during the year charity returned loan of £NIL (2021: £10,000). The total amount owed to trustees includes amounts loaned of £31,880 (2021: £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. 

33