Charity Registration No. 1079416
ABU-HANEEFA EDUCATIONAL TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
ABU-HANEEFA EDUCATIONAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Aqeel Lone Abdul Hamid Hanif Khan Abu Haneefa Educational Trust Charity number 1079416 Principal address 339-341 Bath Road Slough Berkshire SL1 5PR Independent examiner MAH Accountants 40 Elliman Avenue SLOUGH Berkshire SL2 5BG
ABU-HANEEFA EDUCATIONAL TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
ABU-HANEEFA EDUCATIONAL TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their report and financial statements for the year ended 31 December 2022.
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
Our objectives
Our objectives are set out to reflect our faith and community aims. Our dual aims remain to provide a facility where Muslims can worship and to provide a community facility for all the inhabitants of Slough. Our long-term ambition is to build the self-confidence of Slough's Muslims in their faith, and through our community facilities and activities help make our area a peaceful, vibrant and harmonious community.
Use of volunteers
Volunteers are an important resource in both our faith and community work. Volunteers are involved in most of our faith and community activities. We encourage all members of our centre to be involved in voluntary activities and to share their skills with others.
Donation-making policy
Those attending our Centre have given generously to disaster appeals arising from natural calamities affecting various countries around the world. We administered the receipt and distribution of Zakat and Fitrana, which is collected and distributed in accordance with the teachings of Islam for the relief of those in poverty and the destitute.
Our aims
The objects of the charity are set out in the charity's trust deed and are summarised as follows:
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To advance the education of children and young people, in particular Muslims, through the establishment and maintenance of a school or schools based in Slough.
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To advance the Islamic faith in the Slough area for the benefit of the public in particular through the holding of prayer meetings, lectures, the public celebration of religious festivals and the distribution of literature on the Islamic faith to enlighten others.
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ABU-HANEEFA EDUCATIONAL TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Achievements and performance
The Reception Area works were completed in October 2022, including the installation of the KONE platform lift for the use of Disabled and Elderly members.
The AL-Madani Independent Grammar School(AMIGS) for Boys delivered a successful start to its GCSE campaign with 100% achieving 9-4 grades. The total number of pupils was 75.
AL-Madani Girls Secondary school run by the trust continued its remarkable success with its 7th Batch of GCSE results of 100% achieving 9-4 grades – a fantastic achievement. The total number of pupils was 70.
The number of children attending the MAKTAB (After school Quran club) was up to 175 with as many on the waiting list.
We had 15 students graduating from the Maktab and 2 students had their HIFZ completion ceremony.
The Full-time Alamiyyah course progressed into its final year with 5 students.
A Monthly youth Event for Teenagers (11-19year Olds) was commenced in the year attracting up to 90 youngsters.
Financial review
The financial results of the charity are set out on page 4.
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 considers 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.
Structure, governance and management
Abu-Haneefa Educational Trust is a UK registered charitable trust established in 2000 and is based in Slough. The charity is managed by 3 trustees and operates with the support of volunteers who are responsible for the operations of the charity.
The Trustees who served during the year and up to the date of signature of the financial statements were: Aqeel Lone Abdul Hamid Hanif Khan Abu Haneefa Educational Trust
The Trustees' report was approved by the Board of Trustees.
Aqeel Lone
Trustee Dated:
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ABU-HANEEFA EDUCATIONAL TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF ABU-HANEEFA EDUCATIONAL TRUST
I report to the Trustees on my examination of the financial statements of Abu-Haneefa Educational Trust (the Charity) for the year ended 31 December 2022.
Responsibilities and basis of report
As the Trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Muhammad Ahsan Hafeez MAH Accountants 40 Elliaman Avenue SLOUGH Berkshire SL2 5BG
Dated:
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ABU-HANEEFA EDUCATIONAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and other incoming resources | 3 | 411,102 | 319,505 |
| Charitable activities | 4 | 476,665 | 410,035 |
| Other income | 5 | 8,226 | 4,000 |
| Total income | 895,993 | 733,540 | |
| Expenditure on: | |||
| Raising funds | 6 | 272,486 | 200,511 |
| Charitable activities | 7 | 479,508 | 425,709 |
| Total resources expended | 751,994 | 626,220 | |
| Net income for the year/ | |||
| Net movement in funds | 143,999 | 107,320 | |
| Fund balances at 1 January 2022 | 774,883 | 667,563 | |
| Fund balances at 31 December 2022 | 918,882 | 774,883 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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ABU-HANEEFA EDUCATIONAL TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2022
| Notes Fixed assets Tangible assets 11 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current (liabilities)/assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets Income funds Unrestricted funds |
2022 £ £ 2,008,267 79,630 (56,783) 22,847 2,031,114 (1,112,232) 918,882 918,882 918,882 |
2021 £ £ 1,972,551 85,556 (94,192) (8,636) 1,963,915 (1,189,032) 774,883 774,883 774,883 |
2021 £ £ 1,972,551 85,556 (94,192) (8,636) 1,963,915 (1,189,032) 774,883 774,883 774,883 |
|---|---|---|---|
| 1,963,915 (1,189,032) |
|||
| 774,883 | |||
| 774,883 | |||
| 774,883 |
The financial statements were approved by the Trustees on
Aqeel Lone Abdul Hamid Trustee Trustee
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
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 have 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.
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.
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.
1.5 Expenditure
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage as set out in the notes to the accounts.
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 variable rate Plant and machinery 20% reducing balance method
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.
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
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.
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.
1.9 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.
1.10 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.
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 3 4 5 6 |
Donations and other incoming resources 2022 2021 £ £ Donations and gifts 399,229 308,529 Zakat & fitrana 11,873 10,976 411,102 319,505 Charitable activities Donations Donations 2022 2021 £ £ School income 476,665 410,035 Other income 2022 2021 £ £ Employer allowance 4,726 4,000 Job retention Scheme - - Funeral Services 3,500 - 8,226 4,000 Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising and publicity Subcontractors 235,681 164,775 Support costs 36,805 35,736 Fundraising and publicity 272,486 200,511 272,486 200,511 |
2021 £ 308,529 10,976 |
|---|---|---|
| 319,505 | ||
| 200,511 | ||
| 200,511 |
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7 Charitable activities
| Governance costs Charitable Expenditure Heading 6 £ £ Staff costs - 355,230 Depreciation and impairment - 29,749 Rent & rates 20,622 - Insurance 1,393 - Light & heat 20,188 - Repair and maintenance 28,816 - Postage and stationery 6,992 - Telephone cost 1,793 - Legal fee 300 - Sundry expenses 2,600 - Charitable expenditure heading 10 1,415 - 84,118 384,979 Zakat & fitrana 10,411 - 94,529 384,979 8 Grants payable Grants to institutions: Zakat & fitrana |
Total 2022 £ 355,230 29,749 20,622 1,393 20,188 28,816 6,992 1,793 300 2,600 1,415 469,097 10,411 479,508 2022 £ 11,873 11,873 |
Total 2021 £ 321,281 22,897 41,774 1,260 16,931 5,864 1,601 1,602 1,165 180 178 |
|---|---|---|
| 414,733 10,976 |
||
| 425,709 | ||
| 2021 £ 10,976 |
||
| 10,976 |
9 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10 Employees
Number of employees
The average monthly number of employees during the year was:
| Employee Employment costs Wages and salaries Social security costs Other pension costs |
2022 Number 43 2022 £ 344,483 10,747 - 355,230 |
2021 Number 40 |
|---|---|---|
| 2021 £ 314,371 6,910 - |
||
| 321,281 |
| There were no employees whose annual remuneration was £60,000 or more. | |
|---|---|
| 11 | Tangible fixed assets |
| Cost At 1 January 2022 Additions At 31 December 2022 Depreciation and impairment At 1 January 2022 Depreciation charged in the year At 31 December 2022 Carrying amount At 31 December 2022 At 31 December 2021 12 Financial instruments Carrying amount of financial liabilities Other creditors |
Land and buildings £ 2,070,870 57,416 2,128,286 108,316 26,140 134,455 1,993,831 1,962,556 |
Plant and machinery £ 69,083 8,050 77,133 59,088 3,609 62,697 14,436 9,995 2022 £ 1,169,016 |
Total £ 2,139,954 65,466 |
|---|---|---|---|
| 2,205,420 | |||
| 167,404 29,749 |
|||
| 197,153 | |||
| 2,008,267 | |||
| 1,972,551 | |||
| 2021 £ 1,283,225 |
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ABU-HANEEFA EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income 14 Creditors: amounts falling due after more than one year Karze Hassna |
2022 £ 6,999 49,784 - 56,783 2022 £ 1,112,232 |
2021 £ 6,532 30,151 57,509 |
|---|---|---|
| 94,192 | ||
| 2021 £ 1,189,032 |
15 Retirement benefit schemes
Defined contribution schemes
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was Nil (2021 - Nil).
16 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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