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2020-08-31-accounts

Charity Registration No. 1056468

IRSHAD TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

IRSHAD TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr I Jahangir
Dr A H Rafsanjani
Mr M Raza
Mr A Rashid (Appointed 26 February
2020)
Charity number 1056468
Principal address 133 High Road
Willesden
London
England
NW10 2SW
Auditor FLS Accounting Solutions Limited T/A SP Vinshaw
36 The Metro Centre
Dwight Road
Watford
WD18 9SB
Accountants Seymour K Limited
35 - 37 Brent Street
London
NW4 2EF
Bankers Al Rayan Bank
PO Box 12461
Birmingham
B16 6AQ

IRSHAD TRUST

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 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 - 23

IRSHAD TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their annual report and financial statements for the year ended 31 August 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The Charity's objective and its principal activity is to introduce and promote education in an Islamic environment in the United Kingdom and abroad by establishing colleges, with branches in London and elsewhere.

The Charity also aims to further its objectives by giving financial assistance to institutions involved in Islamic research and other similar educational activities.

In addition, the Charity aims to provide appropriate assistance to other educational institutions with aims and objectives similar to those of its own. Donations are raised through contacts the trustees have with potential donors and the public.

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

The college established by the Charity offers various full time and part time courses to its students in partnership with Middlesex University. Some of the courses offered to students are outlined below:

A full list of courses offered by the college is available at https://www.islamic-college.ac.uk/study/.

Public benefit

The trustees have had due regard to the Charity Commission guidance on public benefit and confirm that the Charity's objectives benefit the public in a number of ways i.e. the provision of scholarships and discounted courses to students, regular public worship and sacred space for private prayer and/or contemplation. Activities for all ages including conferences, Iftaar Dinner in Holy Ramadhan, monthly lectures, workshops, Taster courses etc. are held throughout the year.

Scholarships are awarded to high-quality students, at either undergraduate or post-graduate level undertaking courses at The Islamic College with the aim of encouraging more students to the Islamic educational programmes.

Achievements and performance

During the academic year 2019-20, a total of 181 students were enrolled on the above mentioned courses. In addition, short courses were also run with a total of 621 students enrolled. The education team at The Islamic College continuously seeks to improve its learning resources by expansion of its library facilities and continued investment in its IT infrastructure. These assist the college in delivering the programmes effectively and efficiently, thus enabling the Charity in achieving its objectives. The improvement in delivering courses is evident by the rise in pass rates and outstanding achievers over the years.

IRSHAD TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Islamic College is inspected on an annual basis by external monitoring organisations such as The Quality Assurance Agency for Higher Education (QAA), Office for Students (OFS) and The Department of Business, Innovation and Skills (BIS).

The College had its most recent QAA visit completed in November 2017. During its visit, the QAA review team made an assessment and confirmed that the academic standard of awards and the quality of student learning opportunities offered by The Islamic College met their expectations and the provider is making acceptable progress. The QAA review team also made some recommendations which have been implemented by The Islamic College.

The performance of the College is also reviewed by OFS and BIS who provide a full clearance for Designated courses offered by the College which enables some students to obtain loans from The Students' Loan Company for the Undergraduate programmes.

The future plans of the Charity are to increase the number of students enrolled on their courses through investment in their IT infrastructures enabling them improve the means of delivering education.

Financial review

The total funds received during the year were £981,365 (2019: £1,042,590) and represent a decrease of 5.87% on the 2019 income. The total funds expended were £928,543 (2019: £986,611) which mainly reflects the cost control measures taken by the Charity.

During the year under review, the unrestricted funds of the Charity had a surplus of £52,822 (2019: £55,979). The total funds held by the Charity at the balance sheet date stand at £13,781,909 (2019: £13,729,087).

Reserves policy

The perpetual nature of the Charity's existence means that it will never cease to exist and therefore reserves are carried forward at the end of each financial year. It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, the Charity will be able to continue its current activities while consideration is given to the ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Where deficits occur, these are carried forward to the following year.

Going Concern

The trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The trustees regard the foreseeable future as no less than twelve months following the publication of the Charity’s annual financial statements. The trustees have considered the Charity’s balance sheet position and reserves as at the year end, the future plans for the Charity and the impact of the current Covid-19 crisis, taking account of reasonably possible changes in the income of the Charity and are satisfied that the Charity has sufficient resources to remain in operational existence. Accordingly, they have adopted going concern basis in preparing these financial statements.

IRSHAD TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

The charity was established by a charitable trust deed on 1st July 1996.

The trustees who served during the year and up to the date of signature of the financial statements were: The trustees who served during the year and up to the date of signature of the financial statements were:
Dr S H Kirmani (Resigned 26 September 2019)
Dr I Jahangir
Dr A H Rafsanjani
Mr M Raza
Mr A Rashid (Appointed 26 February 2020)

Additional trustees may be appointed at the discretion of the trustees in accordance with the trust deed. At any one time there must be a minimum of three trustees and a maximum of seven trustees.

During the year, Mr Ayub Rashid was appointed as a Trustee and Dr S H Kirmani (an existing trustee) resigned from the Charity.

The Charity is administered in accordance with the powers invested in the trustees, as documented in the trust deed. There are no specific restrictions with regard to the way in which the Charity may operate provided that the objects of the Charity as documented are met. The Charity has no specific investment powers. Its general investment powers are as documented in the trust deed. The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to major risks.

Dr Isa Jahangir has maintained his role as the Principal of The Islamic College and has been undertaking the day to day business of the educational activities of The Islamic College.

Dr Syed Naqi Hassan Kirmani holds title to the property belonging to the Trust at the report approval date and served as trustee in holding title in the reporting period. He resigned as trustee on 26 September 2019.

The trustees of the Charity collectively manage the affairs of the Charity in line with the governing document and the decisions are made in regular meetings held by the trustees throughout the year.

Training is provided to new trustees as required. However, most trustees are already familiar with the practical

work of the Charity when they are appointed.

The Trustees consider the board of trustees and the senior management team comprise the key personnel of the Trust in charge of directing and controlling, running and operating the Trust on a day to day basis. Details of trustees' and key management personnel remuneration and expenses are disclosed in note 7 to the accounts. The remunerations of the senior staff are normally reviewed annually.

The Trust has relationship with The Lady Fatemah (A.S) Charitable Trust, a charity which shares the Trust's passion for education. Both organisations take an active interest in the educational programmes for the benefit of young people.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Key risks at present are assessed as being associated with decline in student numbers and reduction in donations. Considering that The Islamic College has a robust marketing strategy, a reduction in student enrolments is not anticipated. Additionally, the fund-raising of the Charity is community based which enables it to attract a range of support thereby assisting in its continuity.

IRSHAD TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Funds held as custodian trustee

No funds are held as custodian trustee on behalf of others.

The trustees' report was approved by the Board of Trustees and signed on their behalf.

Dr I Jahangir

Managing Trustee Dated: 12 April 2021

IRSHAD TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2020

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

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

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

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

IRSHAD TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF IRSHAD TRUST

Opinion

We have audited the financial statements of Irshad Trust (the ‘charity’) for the year ended 31 August 2020 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).

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 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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

IRSHAD TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF IRSHAD TRUST

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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 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.

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

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

IRSHAD TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF IRSHAD TRUST

Sadikali Gulamabas Premji FCCA (Senior Statutory Auditor) for and on behalf of FLS Accounting Solutions Limited T/A SP Vinshaw

for and on behalf of FLS Accounting Solutions Limited T/A SP 12 April 2021 Vinshaw Chartered Accountants Statutory Auditor 36 The Metro Centre Dwight Road Watford WD18 9SB

FLS Accounting Solutions Limited T/A SP Vinshaw is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

IRSHAD TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted Unrestricted
funds funds
2020 2019
Notes £ £
Income and endowments from:
Donations and legacies 3 108,747 200,210
Charitable activities 4 801,491 842,380
Other income 5 71,127 -
Total income 981,365 1,042,590
Expenditure on:
Charitable activities 6 928,543 986,611
Net income for the year/
Net movement in funds 52,822 55,979
Fund balances at 1 September 2019 13,729,087 13,673,108
Fund balances at 31 August 2020 13,781,909 13,729,087

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

All income and expenditure derive from continuing activities.

IRSHAD TRUST

BALANCE SHEET

AS AT 31 AUGUST 2020

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds-general
General unrestricted funds
Revaluation reserve		 2020
£
£
13,422,726
317,881
145,556
463,437
(104,254)
359,183
13,781,909
4,056,234
9,725,675
13,781,909
13,781,909		 2019
£
£
13,341,591
313,587
123,625
437,212
(49,716)
387,496
13,729,087
4,003,412
9,725,675
13,729,087
13,729,087		 2019
£
£
13,341,591
313,587
123,625
437,212
(49,716)
387,496
13,729,087
4,003,412
9,725,675
13,729,087
13,729,087
13,729,087
13,729,087
13,729,087

The financial statements were approved by the Trustees on 12 April 2021

Dr I Jahangir Trustee

IRSHAD TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

2020
Notes
£
£
Cash flows from operating activities
Cash generated from operations
17
225,331
Investing activities
Purchase of tangible fixed assets
(203,400)
Net cash used in investing activities
(203,400)
Financing activities
Payment of obligations under finance
leases
-
Net cash used in financing activities
-
Net increase in cash and cash equivalents
21,931
Cash and cash equivalents at beginning of year
123,625
Cash and cash equivalents at end of year
145,556		 2019
£
-
(2,203)		 £
122,174
-
(2,203)
119,971
3,654
123,625

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Charity information

Irshad Trust is a charitable trust registered in England and Wales with registration number 1056468. The principal address is 133 High Road, London, NW10 2SW. The principal objects of the charity is to introduce and promote education in an Islamic environment as governed by the charity's trust deed.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity 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 charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Irshad Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Going concern

The trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The trustees regard the foreseeable future as no less than twelve months following the publication of the Charity’s annual financial statements. The trustees have considered the Charity’s balance sheet position and reserves as at the year end, the future plans for the Charity and the impact of the current Covid-19 crisis, taking account of reasonably possible changes in the income of the Charity and are satisfied that the Charity has sufficient resources to remain in operational existence. Accordingly, they have adopted going concern basis in preparing these financial statements.

The principal accounting policies, which have been applied consistently, are set out below:

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.4 Income

Income is recognised when the charity 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 charity 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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grant income is deferred only where the donor has specified that it may only be used for a future period or has imposed conditions that must be met before the charity has unconditional entitlement to the grant.

Tuition fee income is recognised in the year it becomes receivable with a provision against any tuition fee not received.

Trade debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.5 Expenditure

Liabilities

Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

The costs of generating funds are those costs of seeking potential funders and applying for funding.

The expenditure relating to charitable activities represents all costs incurred by the Trust in meeting its charitable objectives.

The cost of additions to the library and archives is written off in the year of purchase.

Governance costs are incurred in connection with the management and administration of the charity. These include central management and administration costs, organisational costs and costs incurred to ensure compliance with constitutional and statutory requirements.

Indirect costs are those costs incurred in support of the charitable objectives. These have been allocated to the resources expended on a basis that fairly reflects the true use of those resources within the organisation.

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

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:

Freehold land and buildings Over 50 years Improvements to buildings Over 50 years Fixtures and fittings 33% Reducing balance basis Computers 33% Reducing balance basis Motor vehicles 25% Straight line basis

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 Impairment of fixed assets

At each reporting end date, the charity 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).

1.8 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.

1.9 Financial instruments

The charity 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 charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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 charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies

Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Donations and gifts 108,747 200,210

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

4 Charitable activities

Tuition fees Tuition fees
2020 2019
£ £
Tuition fees 675,710 651,921
Other income 125,781 190,459
801,491 842,380
5 Other income
Unrestricted Total
funds
general
2020 2019
£ £
Coronavirus Job Retention Scheme Grants 71,127 -
6 Charitable activities
Charitable
Charitable
Expenditure
Expenditure
Heading 1 Heading 1
2020 2019
£ £
Staff costs 541,658 592,190
Education 102,213 64,741
Publication 22,172 23,817
666,043 680,748
Share of support costs (see note 7) 247,694 287,845
Share of governance costs (see note 7) 14,806 18,018
928,543 986,611

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

7 Support costs

Depreciation
Printing and stationery
Computer support
Insurance
Equipment
Telephone
Other
Audit fees
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
122,265
-
5,035
-
10,506
-
21,573
-
-
-
9,473
-
78,842
-
-
5,280
-
9,526
247,694
14,806
247,694
14,806		 2020
£
122,265
5,035
10,506
21,573
-
9,473
78,842
5,280
9,526
262,500
262,500		 Support
costs
Governance
costs
£
£
126,742
-
10,184
-
13,765
-
21,359
-
3,240
-
9,467
-
103,088
-
-
3,900
-
14,118
287,845
18,018
287,845
18,018		 2019
£
126,742
10,184
13,765
21,359
3,240
9,467
103,088
3,900
14,118
305,863
305,863

Governance costs include payments to the auditors of £5,280 (2019- £3,900) for statutory audit fees.

8 Trustees' and key management personnel remuneration and expenses

During the year, Mr M Raza received a gross remuneration of £8,601 (2019: £15,710) of which £1,601 (2019: £3,710) was received as fees for lecturing students.

Also during the year, Dr I Jahangir received a gross remuneration of £15,319 (2019: £37,000) and was privy to the use of vehicle owned by the Charity with a cash equivalent value of £Nil (2019: £24).

There were no disclosable transactions undertaken with the trustees during the year ended 31 August 2020 except as stated above.

The aggregate remuneration of key management personnel was £52,800 (2019: £52,800).

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
25
2020
£
498,319
31,839
11,500
541,658		 2019
Number
27
2019
£
543,970
37,948
10,272
592,190

There were no employees whose emoluments exceeded £60,000 in this year or in the previous year.

Computers Motor vehicles
Total		 £
£
£		 255,922
20,100 13,975,435		 -
-
203,400		 255,922
20,100 14,178,835		 233,893
14,400
633,844		 7,269
5,025
122,265		 241,162
19,425
756,109		 14,760
675 13,422,726		 22,029
5,700 13,341,591
Fixtures and fittings £ 172,941 - 172,941 168,572 1,442 170,014 2,927 4,369
Improvements to buildings £ 26,472 203,400 229,872 979 529 1,508 228,364 25,493
Freehold land and buildings £ 13,500,000 - 13,500,000 216,000 108,000 324,000 13,176,000 13,284,000

Tangible fixed assets Cost or valuation At 1 September 2019 At 1 September 2019 Additions At 31 August 2020 At 31 August 2020 Depreciation and impairment At 1 September 2019 At 1 September 2019 Depreciation charged in the year At 31 August 2020 At 31 August 2020 Carrying amount At 31 August 2020 At 31 August 2020 At 31 August 2019 At 31 August 2019
10

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

10 Tangible fixed assets (Continued)
The carrying value of land included in land and buildings comprises:
2020 2019
£ £
Freehold 8,100,000 8,100,000

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £5,025 (2019 - £5,025) for the year.

£5,025 (2019 - £5,025) for the year.
2020 2019
£ £
Motor vehicles 675 5,700

Land and buildings with a carrying amount of £13,404,364 were revalued at 16 April 2018 by Empire Estates, independent valuers not connected with the charity on the basis of market value. The valuation was based on recent market transactions on arm's length terms for similar properties.

At 31 August 2020, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £3,636,948 (2019 - £3,682,740).

11 Debtors

11 Debtors
2020 2019
Amounts falling due within one year: £ £
Tuition fees receivable 296,299 294,426
Other debtors 73 -
Prepayments and accrued income 21,509 19,161
317,881 313,587
12 Creditors: amounts falling due within one year
Creditors: amounts falling due within one year
2020 2019
£ £
Other taxation and social security 29,682 9,401
Trade creditors 28,476 13,666
Other creditors 9,619 2,395
Accruals and deferred income 36,477 24,254
104,254 49,716

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

13 Deferred Income included in creditors due within one year

2020 2019
£ £
As at 1 September 20,354 14,663
Additions during the year 31,197 20,354
Amounts released to income (20,354) (14,663)
───── ─────
As at 31 August 31,197 20,354
═════ ═════

Balance at 31 August 2020 £ 13,781,909
Movement in funds Incoming
Resources		 resources
expended		 £
£		 981,365
(928,543)
Balance at 1 September 2019
£		 13,729,087
Transfers £ -
Unrestricted funds - General These are unrestricted funds which are material to the charity's activities made up as follows: Movement in funds Balance at
Incoming
Resources		 1 September
resources
expended		 2018
£
£
£		 Unrestricted funds
13,673,108
991,479
(986,611)

IRSHAD TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

15 Events after the reporting date

The Covid-19 pandemic hit during the Charity's year end. The trustees have reviewed the Charity’s position and reserves as at the year end having considered the future plans for the Charity, and are of the opinion that the Charity is in a position to continue in operational existence for the foreseeable future and that the impact of Covid-19 will not have a substantial effect on the Charity.

16 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

17
Cash generated from operations
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from operations
18
Analysis of changes in net funds
The charity had no debt during the year.		 2020
£
52,822
122,265
(4,294)
54,538
225,331		 2019
£
55,979
126,742
(33,739)
(26,808)
122,174