**Charity Registration No. 1077 482** ## **SPIRITUAL FOUNDATION** # **ANNUAL REP ORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 20 AUGUST 2020** ## **SPIRITUAL FOUNDATION** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Majibur Rahman Ashrafi| |---|---| ||Sayyad Mohammad Jilani Ashrafi| ||Mohamed Husaini Sayyad| ||Abdoel Rashied| ||lmtiaz Nourmohammad| |**Charity number**|1077482| |**Principal address**|44 Highfield Street| ||Leicester| ||LE2 1AD| |**Accountants**|Figure Fact| ||1 St Floor| ||182-184 E dgware Road| ||London| ||W22DS| ## **SPIRITUAL FOUNDATION** ## **CONTENTS** ||**Page**| |---|---| |Trustees report|1 - 2| |Accountants' report|3| |Statement of financial activities|4| |Balance sheet|5| |Notes to the financial statements|6 - 10| ## **SPIRITUAL FOUNDATION** ## **TRUSTEES REPORT** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ The Trustees presents it's report and financial statements for the year ended 20 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 [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 1 January 2019)". ## **Objectives and activities** The Charity's objects are to engages in advancing the Islamic religion in particular the spiritual and moral values of Sufism based on the strict principles of Sharia and Tariqat. To relieve poverty, to promote human brotherhood, love and national integration. The policies adopted in furtherance of these objects are through public education, mass communication symposiums, seminars, conference, media publicity and to celebrate national festivals. To advance education for the benefit of public and there has been no change in these during the year. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. ## **Achievements and performance** The main achievement of the charity in the year has been to raise sufficient funds to acquire premises for the purposes of the charity. In the current year the premises were being renovated hence very little activity took place. ## **Financial review** The trustees are confident that the charity will be able to secure sufficient funding in future years to carry out its objectives. 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, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. 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. ## **Structure, governance and management** The Charity was established by a charitable trust deed on 20 September 1999. The members of the Trustees who served during the year and up to the date of signature of the financial statements were: Majibur Rahman Ashrafi Sayyad Mohammad Jilani Ashrafi Mohamed Husaini Sayyad Abdoel Rashied lmtiaz Nourmohammad The power of appointment of new or additional trustees is vested in the trustees. The governing document provides for a minimum of 3 directors, but does not provide for a maximum number. The power to appoint new directors is vested in the board of trustees. - 1 - ## **SPIRITUAL FOUNDATION** ## **TRUSTEES REPORT (CONTINUED)** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ The Trustees report was approved by the Board of Trustees. **Abdoel Rashied** Trustee Dated: .2.1.-:0R::20Z.1.. .. - 2 - ## **SPIRITUAL FOUNDATION** ## **ASSOCIATION OF INTERNATIONAL ACCOUNTANTS. ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SPIRITUAL FOUNDATION FOR THE YEAR ENDED 20 AUGUST 2020** In order to assist you to fulfil your duties under the Charities Act 2011, we have prepared for your approval the accounts of Spiritual Foundation for the year ended 20 August 2020, which comprise and the related notes from the charity's accounting records and from information and explanations you have given us. As a practising member firm of the Association of International Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.aiaworldwide.com. It is your duty to ensure that Spiritual Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Spiritual Foundation. You consider that Spiritual Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report. We have not been instructed to carry out an audit or a review of the financial statements of Spiritual Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. ## **Association Of International Accountants. Accountants** 1 St Floor 182-184 Edgware Road London W22DS - 3 - ## **SPIRITUAL FOUNDATION** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2020**|2019| ||**Notes**|
£|£| |**Income and endowments from:**|||| |Donations and legacies|**3**|14,344|47,800| |Donations and Gifs|||| |Gif aid|||| |||32,048|| |**Total income**||46,392|47,800| |**Expenditure on:**|||| |Centre running costs|||| |||5,800|11,877| |**Net income for the year/**|||| |**Net movement in funds**||40,592|35,923| |Fund balances at 21 August 2019||376,161|340,238| |**Fund balances at 20 August 2020**||416,753|376,161| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 4 - ## **SPIRITUAL FOUNDATION** ## **BALANCE SHEET** ## _**AS AT 20 AUGUST 2020**_ |**Fixed assets**
Tangible assets
**Current assets**
Cash at bank and in hand
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds - general
**Notes**
**8**|**2020**
**£**
10,176|**£**
406,577
10,176
416,753
416,753
416,753
**2019**
**£**
4,182|**£**
371,979
4,182| |---|---|---|---| ||||376,161
376,161| ||||376,161| The financial statements were approved by the Trustees on ..21-06-2021...................... . Abdoel Rashied **Trustee** - 5 - ## **SPIRITUAL FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ ## **1 Accounting policies** **Charity information** Spiritual Foundation is a unincorporated Registered Charity in England and Wales. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the Charity'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 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102. The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the 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. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees has a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity. ## **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. - 6 - ## **SPIRITUAL FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ ## **1 Accounting policies** **(Continued)** 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. ## **1.5 Expenditure** Expenditure is accounted for on an accruals 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: Land and buildings Not depreciated Freehold land and assets in the course of construction are 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. ## _**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. - 7 - ## **SPIRITUAL FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 20 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. ## **2 Critical accounting estimates and judgements** In the application of the Charity's accounting policies, the Trustees is 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 gifs|14,344|47,800| |**4**|**Gif aid**||| ||**Unrestricted**|Ttal| |---|---|---| ||**funds**|| ||**general**|| ||**2020**|2019| ||**£**|£| |Gif aid||| ||32,048|| - 8 - ## **SPIRITUAL FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ ## **5** ## **Centre running costs** Rates Travelling Light and heat Repairs and maintenance Telephone Advertising |**2020**|**2019**| |---|---| |**£**|**£**| |3,678|2,031| |100|| |1,997|1,359| ||8,061| ||30| ||396| |25|| |5,800|11,877| |5,800|11,877| ## **6 Trustees** None of the Trustees (or any persons connected with them) received any remuneration during the year. ## **7 Employees** There were no employees during the year. - 9 - ## **SPIRITUAL FOUNDATION** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 20 AUGUST 2020**_ |**8**
**Tangible fixed assets**
**Cost**
At 21 August 2019
Additions
At 20 August 2020
**Carrying amount**
At 20 August 2020
At 20 August 2019
**Land and**|**buildings**
£
371,979
34,598
406,577
406,577
371,979| |---|---| ## **9 Related party transactions** There were no disclosable related party transactions during the year (2019 - none). - 10 -