2021-08-31-accounts

CHARITY REGISTRATION NUMBER: 1079528

Al Islah School Unaudited Financial Statements 31 August 2021

KAROLIA LIMITED

Chartered Certified Accountants Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ

Al Islah School

Financial Statements

Year ended 31 August 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	4
Statement of financial activities	5
Statement of financial position	6
Notes to the financial statements	7

Al Islah School

Trustees' Annual Report

Year ended 31 August 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 August 2021.

Reference and administrative details

Registered charity name Al Islah School Charity registration number 1079528 Principal office 108 Audley Range Blackburn Lancashire BB1 1TF

The trustees

Mr M H Chotia (Appointed 4 December 2021) Mr G Gulam (Appointed 4 December 2021) Mr H Desai (Resigned 4 December 2021) Mr Y Sidat (Resigned 4 December 2021) Mr M S Karolia Accountants Karolia Limited Chartered Certified Accountants Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ

Structure, governance and management

The trustee named under 'Charity Information' have served during the year. Appointment of trustees is governed by the Trust Deed of the charity. The Board of Trustees is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing trustee and remove existing trustees.

Objectives and activities

The Charitable Trust is constituted by Trust Deed, and its objects are to provide education and training to children of 11 to 16 years old (up to G.C.S.E.), following the national curriculum and implementing good educational practices within the teachings of Islam which are open to all sections of the community.

1

Trustees' Annual Report (continued)

Al Islah School

Year ended 31 August 2021

Achievements and performance

Al Islah Girls' High School continues to provide a high-quality, comprehensive and meaningful education for all our students. We have once again achieved above national average results for gaining 5 or more GCSE's as each student has succeeded within the bounds of their abilities and all have chosen educational goals.

Our Summer 2021 results have once again been superb. All the Year 11 cohort who were entered for their GCSE's have achieved 5 GCSEs or more in all the EBacc subjects. The school was very proud to proclaim that we achieved a 100% pass rate, Grade 5 and above, for many of the subjects including Triple Science and Mathematics. This means that our Attainment 8 Score for this academic year is very high and above the national average. We hope to achieve a further set of fantastic results in this coming academic year.

The school has offered a broad and balanced curriculum, delivered by dedicated and committed teachers to students in an environment, whereby behaviour and personal development is linked to an Islamic ethos to develop the students' spiritual, moral, social and cultural aspects.

Ofsted have reported from our latest inspection that 'the leadership and management of Al Islah are firmly focused and committed. We have been graded a 'good' in this aspect and we are working towards a school which will provide an exceptional quality of education by significantly exceeding minimum requirements. Ofsted have said that 'our premises and accommodation are well maintained and the facilities are good' and we ensure parents are well informed about their child's progress with reports and parents' consultation evenings.

Strong governance, focus on meeting legal, policy and regulation requirements and with a continuous improvement approach; the governing body forms a backbone to the leadership and management of Al Islah Girls' High School. The school's SLT has recently made a huge investment towards the teaching and learning at the school. With the recent purchase of a set of laptops to use in addition with the computers in the IT suite has enabled many of our learners, especially those that come from disadvantaged backgrounds to have access to digital resources and complete their learning. As the school is continuously signing up to new, more up to date digital resources for the children, this investment is a great benefit for our learners.

The school has also heavily invested in touchscreens for each classroom throughout the school. This has proven to be highly successful in engaging the students within the lesson and has shown a vast improvement in the level of learning and progress made. Teachers are able to make their lessons much more interactive and engaging and students can also take an active role in their learning.

Financial review

The budget is strictly monitored, as the main source of income has been the fees paid by parents whose children attend our school. With regards to the financial aspect of management, monthly reports are produced in order that order that the school remains on a firm financial footing. Monthly management accounts are reviewed by the board of trustees every month. Financially the school is viable due to good house management and this has enabled to survive on the numbers of the students that the school attracts.

Trustees' responsibilities statement

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).

2

Al Islah School

Trustees' Annual Report (continued)

Year ended 31 August 2021

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each 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 period.

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

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

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 applicable Charities (Accounts and Reports) Regulations, 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.

The trustees' annual report was approved on 15 June 2022 and signed on behalf of the board of trustees by:

Mr M S Karolia Trustee

3

Al Islah School

Independent Examiner's Report to the Trustees of Al Islah School

Year ended 31 August 2021

I report to the trustees on my examination of the financial statements of Al Islah School ('the charity') for the year ended 31 August 2021.

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 Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the financial statements do not accord with those records; or

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 accounts to be reached.

Ahmed Adam Karolia Independent Examiner Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ

4

Al Islah School

Statement of Financial Activities

Year ended 31 August 2021

		2021	2021	2020
		Unrestricted
		funds	Total funds	Total funds
	Note	£	£	£
Income and endowments
Donations and legacies	4	123,571	123,571	91,451
Investment income	5	3	3	27
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
Total income		123,574	123,574	91,478
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶
Expenditure
Expenditure on charitable activities	6,7	105,883	105,883	74,972
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
Total expenditure		105,883	105,883	74,972
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
Net income and net movement in funds		17,691	17,691	16,506
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶
Reconciliation of funds
Total funds brought forward		191,303	191,303	174,797
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total funds carried forward		208,994	208,994	191,303
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 13 form part of these financial statements.

5

Al Islah School

Statement of Financial Position

31 August 2021

		2021	2020
	Note	£	£
Fixed assets
Tangible fixed assets	13	173,471	164,543
Current assets
Debtors	14	611	584
Cash at bank and in hand		51,404	26,871
		ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
		52,015	27,455
Creditors: amounts falling due within one year	15	8,617	695
		ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
Net current assets		43,398	26,760
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total assets less current liabilities		216,869	191,303
Creditors: amounts falling due after more than one year	16	7,875	–
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net assets		208,994	191,303
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Funds of the charity
Unrestricted funds		208,994	191,303
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total charity funds	18	208,994 ৶৶৶৶৶৶৶৶৶	191,303 ৶৶৶৶৶৶৶৶৶

These financial statements were approved by the board of trustees and authorised for issue on 15 June 2022, and are signed on behalf of the board by:

Mr M S Karolia Trustee

The notes on pages 7 to 13 form part of these financial statements.

6

Al Islah School

Notes to the Financial Statements

Year ended 31 August 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 108 Audley Range, Blackburn, Lancashiree, BB1 1TF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

No cash flow statement has been presented for the charity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

7

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

8

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 15% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

9

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

4. Donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Donations
School fees	105,802	105,802	72,819	72,819
Other income	2,483	2,483	1,353	1,353
Rent received	9,637	9,637	9,681	9,681
Donations received	5,649	5,649	7,598	7,598
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
	123,571	123,571	91,451	91,451
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶

5. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Bank interest receivable	3	3	27	27
	৶৶৶৶	৶৶৶৶	৶৶৶৶	৶৶৶৶
Expenditure on charitable activities by fund type
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Education costs	97,528	97,528	67,182	67,182
Support costs	8,355	8,355	7,790	7,790
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
	105,883	105,883	74,972	74,972
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶
Expenditure on charitable activities by activity type
	Activities
	undertaken		Total funds	Total fund
	directly Support costs		2021	2020
	£	£	£	£
Education costs	97,528	–	97,528	67,182
Governance costs	–	8,355	8,355	7,790
	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ
	97,528	8,355	105,883	74,972
	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶

6. Expenditure on charitable activities by fund type

7. Expenditure on charitable activities by activity type

10

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

8. Analysis of support costs

		Analysis of
		support costs	Total 2021	Total 2020
		£	£	£
	Staff costs	5,000	5,000	5,000
	Premises	2,002	2,002	1,568
	General office	–	–	742
	Governance costs	480	480	480
	Subscriptions	587	587	–
	Legal and professional fees	286	286	–
		ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ
		8,355	8,355	7,790
		৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶
9.	Net income
	Net income is stated after charging/(crediting):
			2021	2020
			£	£
	Depreciation of tangible fixed assets		3,183	1,608
			৶৶৶৶৶৶৶	৶৶৶৶৶৶৶
10.	Independent examination fees
			2021	2020
			£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial statements		480 ৶৶৶৶	480 ৶৶৶৶

11. Staff costs

The average head count of employees during the year was 11 (2020: 9).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

12. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

11

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

13. Tangible fixed assets

		Freehold	Fixtures and
		property	fittings	Total
		£	£	£
	Cost
	At 1 September 2020	155,436	32,120	187,556
	Additions	–	13,860	13,860
	Disposals	–	(5,000)	(5,000)
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	At 31 August 2021	155,436	40,980	196,416
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
	Depreciation
	At 1 September 2020	–	23,013	23,013
	Charge for the year	–	3,183	3,183
	Disposals	–	(3,251)	(3,251)
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	At 31 August 2021	–	22,945	22,945
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
	Carrying amount
	At 31 August 2021	155,436	18,035	173,471
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
	At 31 August 2020	155,436	9,107	164,543
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
14.	Debtors
			2021	2020
			£	£
	Prepayments and accrued income		611	584
			৶৶৶৶	৶৶৶৶
15.	Creditors: amounts falling due within one year
			2021	2020
			£	£
	Bank loans and overdrafts		–	215
	Accruals		6,516	480
	Obligations under finance leases and hire purchase contracts		2,101	–
			ৄৄৄৄৄৄৄ	ৄৄৄৄ
			8,617	695
			৶৶৶৶৶৶৶	৶৶৶৶
16.	Creditors: amounts falling due after more than one year
			2021	2020
			£	£
	Obligations under finance leases and hire purchase contracts		7,875	–
			৶৶৶৶৶৶৶	৶৶৶৶

12

Al Islah School

Notes to the Financial Statements (continued)

Year ended 31 August 2021

17. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2021	2020
	£	£
Not later than 1 year	2,101	–
Later than 1 year and not later than 5 years	7,875	–
	ৄৄৄৄৄৄৄ	ৄৄৄৄ
	9,976	–
	৶৶৶৶৶৶৶	৶৶৶৶

18. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At			At
1	September		31 August 20
	2020	Income	Expenditure	21
	£	£	£	£
General funds	191,303	123,574	(105,883)	208,994
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
	At			At
1	September			31 August 20
	2019	Income	Expenditure	20
	£	£	£	£
General funds	174,797	91,478	(74,972)	191,303
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Analysis of net assets between funds
			Unrestricted	Total Funds
			Funds	2021
			£	£
Tangible fixed assets			173,471	173,471
Current assets			52,015	52,015
Creditors less than 1 year			(8,617)	(8,617)
Creditors greater than 1 year			(7,875)	(7,875)
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net assets			208,994	208,994
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
			Unrestricted	Total Funds
			Funds	2020
			£	£
Tangible fixed assets			164,543	164,543
Current assets			27,455	27,455
Creditors less than 1 year			(695)	(695)
Creditors greater than 1 year			–	–
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net assets			191,303	191,303
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

19. Analysis of net assets between funds

13