2023-04-30-accounts

Charity Registration No, 1038679

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K. ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr Sirajuddin Manzoor Munshi Mr Zubair Moosa Mr llyas Molvi

Mr Abdul Rehman Yunus Ghadiali Mr Mohamed Musa Mr Mohamed Saied Maljee Mr Mohammed Hanif Patel Mr Yakub Ibrahim Nanji Mr Iqbal Patel Mr Ayub Zumla Mr Ahmed Ali Adam Patel

Charity number

Principal address

Accountants

1038679

Willows Lane Bolton Lancashire BL3 4HF

SND Accountants & Business Advisors

9 Prescott Street Bolton BL3 3LZ

Auditors

Zia & co Chartered Certified Accountants & Registered Auditors 825A Stockport Road Manchester M19 3PN

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

CONTENTS

Page Trustees' report 1-5 Independent auditor's report 6-8 Statement of financial activities 9 Balance sheet 10 Statement of cash flows 11

Notes to the financial statements

12-18

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 APRIL 2023

The Trustees present their annual report and the financial statements for the year ended 3C April 2023. The Trustees confirm that the annual report and financial statements of the trust comply with the current statutory requirements of the trust's governing document and the provisions of the Statement of Recommended Practice (SORP), appEcab4e to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the IJK and Republic of Ireland (FRS 102).

Objectives and activities

The trust's objects are as per the trust deed of education and the advancement of the religion of Islam. The trusts shall try to achieve the above objects by:

• establishing a college of further education for the teaching of the Holy Quran and other related subjects to Muslim students.

• establishing a Mosque as a place of worship and facilitate other activities allied to promotion of knowledge and understanding of the beliefs and institutions of Islam.

• establishing a school for secular education at secondary level up to the age of sixteen years.

The trust runs the Al Jamiyah Al Islamiyah, an independent Muslim boarding school which is registered with the Department for Education & Skills (DFES). The school provides educational facilities for 170 boys ages 11 to 21 years. The pupils undertake various levels of study of Islamic instruction. All students according to the appropriate age group also follow the secondary school syllabus leading to GCSE's and undertake courses in the sixth form. The school provides alternative education with an Islamic ethos to boys who otherwise would have been in the state sector, many coming from ethnic backgrounds with low expectations and classed as academic under achievers.

The Charity provides faith-based education for 11 year olds and over in accordance with the principals and tenets of Islamic faith, tradition and curriculum. It also provides mainstream studies in line with the National Curriculum. The Charity provides educational advancement, including the provision of boarding and/or day school for children. It is our policy to attain the highest academic levels as well as providing an extra-curricular programme, for our students which aims to develop life-long leisure interests and help build self-confidence and a desire to be good ambassadors of their faith and contribute to a cohesive community. The charity is established for the furtherance of education in accordance with the Sunni Muslim faith.

Public benefit

The Darul Uloom develop strategic plans to make certain that they deliver maximum public benefit and achieve their strategic objectives, which fall under purposes defined by the charities act 2011. The trustees have carefully considered the Charity Commission's general guidance on public benefit in setting our objectives and planning our activities.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

AL-JAMIATUL ISLAMIYAH DARUL UI-OOM LANCASHIRE U.K.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

Achievements and performance

The trustees can see the performance of the Darul Uloom has been good considering the transition of the institute. GCSE, AS levels and B-Tech courses continue to be delivered at the institute, positive steps have been taken to widen the opportunity available to the students. The staff of Darul Uloom are passionate and keen to work tirelessly with the available resources to deliver a high level of nurturing/guidance education. Regular meetings with the management and staff continue to enhance the development of the school.

This reporting year Darul Uloom had the joy of celebrating the graduation ceremony of 15 Hifz students and 12 Alim students, of those some Hifz students have progressed onto the Alim course and others have left to pursue further studies at college. The Alim course has provided a valuable grounding for graduates to further their Islamic and Academic aspirations, some of whom have gone onto Universities to study Degree courses.

The trust has maintained its duty to undertake and arrange of workplace assessments to ensure that hazards are being properly identified and appropriate protective measures are in place to assist in minimizing the possibility of loss from risks. Periodic reviews take place to assess the performance of the systems implemented.

Financial review

The school's principal funding source is from school fees, which is amounted to E218,166 (2022: 2279,942). Overheads have remained fairly consistent. The financial situation of the school continues to be satisfactory. The present level of funding is adequate to support the continuation of the school and the trustees consider the financial position of the charity to be satisfactory.

It is the policy of the charity to maintain the unrestricted funds at a level which equate to approximately six months unrestricted expenditure.

Reserves policy

The charity has considered the resentes required and have taken into account their current and future liabilities. The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure. The trustees consider that this level will provide sufficient funds to ensure that support and governance costs are covered.

The charity holds sufficient reserves to meet the operating expenses of the charity in the event of a downturn in income and / or unforeseen increases in costs.

The trustee's review the reserve policy each year, assessing the risks and reflecting changes in factors such as investment income and also financial obligations and commitments.

The trustees have assessed the year-end reserves position and can conclude that it is within the policy target reserve for covering next year's core operational budget.

Investment policy

The overall objectives are to create sufficient income and capital growth to enable the charity to carry out its purposes consistently year by year with due and proper consideration for future needs and the maintenance of, and if possible, enhancement of the value of the invested funds while they are retained.

Both capital and income may be used at any time for the funherance of the charity's aims and therefore the portfolio should be managed on a total return basis.

Future plans

The board has a current plan to maintain and improve upon the current standards of academic achievements as measured by extemal public examinations and independent value added criteria. The plans include collaboration and sharing of good practice between academic departments, improve internal communications and management information systems, to continue to develop the curriculum facilities alongside many others.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The Al-Jamiatul Islamiyah Darul Uloom Lancashire UK is constituted under a Trust Deed dating 8th June 1994 and registered with Charity commission under charity number 1038679.

The trustees who served during the year and up to the date of signature of the financial statements were:

Mr Ahmed Ali Adam Patel

Mr Mohammed Hanif Patel

Mr Yakub Ibrahim Nanji Mr Iqbal Patel Mr Ayub Zumla Mr Mohamed Musa Mr Abdul Rehman Yunus Ghadiali Mr Mohmed Saied Malgee Mr Sirajuddin Manzoor Munshi Mr llyas Molvi Mr Zubair Moosa

Recruitment and appointment of new trustees

Trustees are appointed by the board of trustees. The board of trustees comprises members from a variety of backgrounds. The procedure to appoint or withdraw a trustee is in accordance to the trust deed. There are informal procedures in place for the induction and training of new trustees. The trustees also encouraged to attend relevant extemal briefing training courses.

The trust runs Al Jamiah Al Islamiyah, an independent Muslim boarding school. The day to day management of the school is delegated to the Darul Uloom Academic Board headed by the chair of the academic board and by the head of the school and the sixth form. All major decisions are ratified by the board of trustees.

The board of trustees and Darul Uloom Academic Board are responsible for the management of the risks faced by the charity. Risks are identified, assessed and controls established throughout the year.

U.K. LANCASHIRE AL-JAMIATUL ISLAMIYAH DARUL ULOOM

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

The their charity time freely trustee and are receive responsible no remuneration for the general or other control financial and management benefits. of the charity. The trustees give

The committees running number trustees of of the sub-committees are meet Darul currently together Uloom. set that as To up a assist help for body finance them in monthly the oversee and smooth and for certain day are running responsible to day aspects of management the Darul of for the all Uloom Darul decisions of the Uloom's the building taken trustees work. in and relation have Sub-report set to up backthea with their recommendations to the full meeting of the trustees.

The of by the the trust school head runs of is Al delegated the Jamiah school Al to and the Islamiyah, the Darul sixth Uloom an form. independent Academic All major Board Muslim decisions headed boarding are by ratified the school. chair by The the of the board day academic to of day trustees.managementboard and

Induction and training of new trustees

guide Commission Following to the appointment, policies are also and provided new procedures trustees including adopted are the introduced guidance by our to charity. on their charities new A number role and and public of given publications benefit copies and from of the the the trust advancement Charitydeed and ofa religion for the public benefit.

This ensures that the new trustees are aware of the scope of their responsibilities under the Charities Act. Darul Initially IJloom. new trustees After satisfactory work with an feedback existing from trustee existing assisting trustees, on particular they are activities then given and the projects task of run leading by thea particular activity or project, reporting progress at trustees' meetings.

Key management remuneration

The trustees consider the board of trustees and the chief executive as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year.

Risk management

The Trustees review the major risks which the charity faces on a regular basis.

Risks are assessed, identified, managed and constantly reviewed. A set of policies and procedures are developed to manage risks, which form the internal controls framework. The policies are set by the trustees and the management team and implementation is delegated to the management team. The relevant policies and procedures are communicated to all staff and training given where applicable. Periodic policy reviews are undertaken to seek to ensure the internal controls framework remains relevant.

The Trustees regularly consider the Compliance Toolkit issued by the Charity Commission, Protecting Charities from Harm. The charity has established systems which continue to mitigate the significant risks.

The Trustees are committed to and are continuously striving to have stronger and more robust systems and controls which all provide even more transparency and accuracy and ensure the assets of the charity are safeguarded.

The organisatjon has both employer liability and public liability insurance policies in place. All employees are put through appropriate Disclosure and Barring Service checks.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

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

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources of the trust for that Year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

'- state whether disclosed and explained applicable in the accounting financial statements; standards andhave been followed, subject to any material departures

• charity prepare will the continue financial in operation.statements on the going concern basis unless it is inappropriate to presume that the

trust steps with at The any trustees the deed. for time the Charities They the prevention are financial are responsible Act also 2011, and position responsible detection the for Charity keeping of the of for fraud trust (Accounts safeguarding sufficient and and other enable accounting and the irregularities.Reports) them assets records to Regulations of ensure the that trust that disclose and the 2008 financial hence with and for the reasonable statements taking provisions reasonableaccuracycomplyof the

The trustees' report was approved by the Board of Trustees and signed on its behalf by:

Mr AA Patel Trustee

Dated: 22 January 2024

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

Opinion

We have audited the financial statements of Al-Jamiatul Islamiyah Darul Uloom Lancashire U.K. (the 'trust) for the Year ended 30 April 2023 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 FRS 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 30 April 2023 and of its incoming resources and application of resources, 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's responsibilities for the audit of the financial statements section of our report. We are independent of the trust 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 are responsible for concluding on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concem.

In our evaluation of the trustees' conclusions, we considered the inherent risks associated with the charitable company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company's financial resources or ability to continue operations over the going concern period.

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem 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 concem are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, including the trustees' 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.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

Our responsibility is to read the other information and, in doing so, consider whether the other informa%on 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audrt, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 20087 require us to report to you if, in our opinion:

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

sufficient accounting records have not been kept; or

the financial statements are not in agreement with the accounting records; 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, 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 trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend 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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable trust and the sector in which it operates. We determined that the following laws and regulations were most significant: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), Charities SORP (FRS 102), Charities Act 2011, Data Protection Act 2018 and The Charities (Protection and Social Investment) Act 2016;

We understood how the charitable trust is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of board and other minutes and through our legal and professional expenses review;

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

• We assessed the susceptibility of the charitable trust's financial statements to material misstatement, including how fraud might occur and the risk of material override of controls. Audit procedures performed by the engagement team included:

  • Identifying and assessing the design effectiveness of certain controls management has in place to prevent and detect fraud Challenging assumptions and judgements made by management in its significant accounting policies Identifying and testing journal entries, with a focus on unusual journals with specific risk characteristics and large value journals Identifying and testing related party transactions Inspecting the board and other committee minutes

  • Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item

• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;

• Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's:

  • understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation knowledge of the charity sector

  • understanding of the legal and regulatory requirements specific to the charitable company including: the provisions of the applicable legislation

    • guidance issued by the Charity Commission

• The team communications in respect of potential non-compliance with relevant laws and regulations included the potential for fraud in revenue through manipulation of income and management override of controls; and

• In assessing the potential risks of material misstatement, we obtained an understanding of: the charitable company's operations, including the nature of its income and expenditure and its services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. the charitable company's control environment, including: the policies and procedures implemented by the charitable company to ensure compliance with the requirements of the financial reporting framework and relevant laws and regulations the adequacy of procedures for authorisation of transactions and review of management accounts procedures to ensure that possible breaches of laws and regulations are appropriately resolved.

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

This description forms part of our auditor's report.

AL-JAMIATUL ISLAMIYAH DARI-JL ULOOM LANCASHIRE U.K.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF AL-JAMIATUL ISLAMIYAH DARI-JL ULOOM LANCASHIRE U.K.

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.

Muhammad Saeed Zia (Senior Statutory Auditor) for and on behalf of Zia & Co

22 January 2024

Chartered Certified Accountants

& Registered Auditors

825A

Stockport Road Manchester M19 3PN

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 APRIL 2023

							Unrestricted	Unrestricted
							funds	funds
							2023	2022
						Notes
Incpme and endowments					from:
HMRC JRS Grants								148,124
Donations and legacies Charitable activities						3 4	218,166	279,942
Investments						5	174,380	203,610
Other income						6	11,194	33,547
Total income							403,741	665,223
Charitable activities						7	540,633	762,827
Gross transfers from funds
Net expenditure for	the		year/
Net movement in funds							(136,892)	(97,604)
Fund balances at 1 May		2022					5,823,178	5,920,782
Fund balances at 30 April				2023			5,686,286	5,823,178

The statement of financial activities includes all gains and losses recognised in the Year.

All income and expenditure derive from continuing activities.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

BALANCE SHEET

AS AT 30 APRIL 2023

						2023		2022	2022
					Notes
Fixed assets
Tangible assets					11	3,709,824			3,773,499
Investment properties					12	2,052,439			2,052,439
						5,762,262			5,825,938
Current assets
Debtors					13
Cash at bank and	in	hand				21,121		13,923
						21,121		13,923
Creditors: amounts		falling	due	within
one year					14	(97,097)		(16,683)
Net current (liabilities)/assets							(75,976)		(2,760)
Total assets less	current liabilities					5,686,286			5,823,178
Income funds
Unrestricted funds						5,686,286			5,823,178
						5,686,286			5,823,178

The financial statements were approved by the Trustees on 22 January 2024.

MrAA Patel Trustee

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 APRIL 2023

				2023			2022
		Notes
Cash flows from operating activities Cash absorbed by operations		15			(326,115)			(295825)
Investing activities
Investment income received			174,380			203,610
Net cash generated from investing activities					174,380			203,610
Net cash used in financing activities
Net (decrease)/increase in cash and equivalents	cash				(151,735)			(92,215)
Cash and cash equivalents at beginning		of Year			13,922			106,137
Cash and cash equivalents at end of	Year				(137,813)			13,922

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust's [governing document), the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I January 2019)". The trust is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is possible that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category.

Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

2% per annum on buildings

Freehold buildings

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The trust has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

3

AL-JAMIATUL ISLAMIYAH DARUL UI-OOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recogniged at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust's contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charity is exempt from tax on its charitable activities.

2 Critical accounting estimates and judgements

In the application of the trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Donations and legacies

Total	Unrestricted
	funds
	general
2023	2022

Donations and gifts

AL-JAMIATUL ISLAMIYAH DARUL UI-OOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

	4	Charitable	Charitable	Charitable	Charitable	activities
								Charitable	Charitable
								Income	Income
								2023	2022
		Services			provided under		contract	218,166	279,942
	5	Investments
								Unrestricted	Unrestricted
								funds	funds
								general	general
								2023
		Rental		income				174,380	203,610
6	Other		income
								Unrestricted	Unrestricted
								funds	funds
								general	general
								2023	2022
	Other income							11,194	33,547

8

9

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

7 Charitable activities

			Direct	Costs	Costs	Support	Support	Support	Total	Direct	Direct	Support	Support	Total	Total
						Costs			Costs		2023	Costs
				2023			2023				2022	2022
Depreciation and
impairment						63,676			63,676			64,769		64,769
Staff Costs - teaching			285,616						285,616		430,024			430,024
Canteen, Books		&
Resources			35,113						35,113		70,048			70,048
Insurance						43,331			43,331			46,374		46
Light and Heat						72,022			72,022			82,673		82,673
Telephone Repairs & Maintenance						144 9,699			144 9,699			5,194 2,632		5,194 2,632
General Expenses						8,469			8,469			14,271		14,271
Health & Safety						2,717			2,717			15,760		15,760
Bank Charges							439		439			1,134		1,134
Interest payable similar charges	and					4,123			123			4,097		4,097
Audit Fees						2,000			2,000			2,000		2,000
Bookkeeping Fees						1 ,ooo			1 ,ooo			1000		1000
Other legal and professional			fees			5,497			5,497			16,630		16,630
Rates & Water						6,787			6,787			6,221		6,221
			320,729			219,904			540,633		500,072	262,757	762,827
			320,729		219,902			540,633			500,072	262,757	762,827

Governance costs includes payments to the auditors of E2,000 (2022: 2,000) for audit fees.

Net	movement	movement	in funds						2023	2022
Net	movement	in funds is		stated		after		charging/(crediting)
Depreciation of		owned tangible			fixed		assets		63,676	64,769

Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the Year.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

10 Employees

The average monthly number of employees during the Year was:

														2023
														Number	Number
														43	43
	No employee received					emoluments		of	more	than	€60,000	(2022:	60,000).
11	Tangible fixed	assets
														Freehold	buildings
	Cost
	At 1 May 2022													4,628,624
	At 30 April 2023													4,628,624
	Depreciation and			impairment
	At 1 May 2022													855,125
	Depreciation charged				in	the Year									63,676
	At 30 April 2023													918,801
	Carrying amount
	At 30 April 2023													3,709,824
	At 30 April 2022													3,773,499
12	Investment property
															2023
	Fair value
	At 1 May 2022 and		30 April				2023							2,052,439

Investment property comprises of freehold land and buildings. Investment properties are included within the financial statements at historical cost. The trustees are of the opinion that historical cost of investment property is not materially different from fair value.

AL-JAMIATUL ISLAMIYAH DARUL ULOOM LANCASHIRE U.K.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

		13 Debtors
															2023		2022
		Amounts falling due within				one		year:
		Other debtors
		14 Creditors: amounts falling		due			within			one			year
															2023		2022
		Other taxation and social security													2,656		5,999
		Other creditors													91 ,441		7,684
		Accruals and deferred income													3,000		3,000
															97,097		16,683
15		Cash generated from operations													2023		2022
		Surplus / (Deficit) for the Year													(295,825)		(97,604)
		Adjustments for:
		Investment income recognised	in		statement					of		financial		activities	(174,380)	(203,610)
		Depreciation and impairment of		tangible					fixed		assets				63,676		64, 769
		Movements in working capital:
	Decrease in debtors
	Decrease in creditors														80,414	(59,380)
	Cash absorbed by operations														(326,115)	(295,825)

The trust had no debt during the year.

16 Analysis of changes in net funds