Al Kalima
(A Company Limited by Guarantee)
UNAUDITED REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023 CHARITY NUMBER: 1079965
REGISTERED COMPANY NUMBER: 03693242
Al Kalima (A Company Limited by Guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Company, its trustees and advisers | 3 |
| Trustees’ report | 4-5 |
| Independent examiner’s report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9-14 |
| Income and expenditure account | 15 |
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Al Kalima (A Company Limited by Guarantee)
LEGAL AND ADMINISTRATIVE INFORMATION
31 DECEMBER 2023
TRUSTEES AND DIRECTORS:
Dr J B Evans E J Greening D Peters M Tinawi
SECRETARY: REGISTERED OFFICE:
E J Greening 7 Westbourne Gardens Trowbridge BA14 9AW
REGISTERED COMPANY NUMBER: REGISTERED CHARITY NUMBER INDEPENDENT EXAMINER:
03693242 (England and Wales) 1079965
Ginny Santer Monetaire Accountants Limited Sovereign House 22 Shelley Road Worthing BN11 1TU
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Al Kalima (A Company Limited by Guarantee)
REPORT OF THE TRUSTEES for the year ended 31 December 2023
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report and financial statements for the year ended 31 December 2023.
The trustees have adopted the provisions of 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 (FRS102) (effective 1 January 2019).
Structure, governance and management
The charity is a company limited by guarantee without a share capital. The limit of the members’ liability under the terms of the company’s Memorandum and Articles is £1.00 each.
Trustees meet at least quarterly to agree the broad strategy and areas of activity for the charity. The charity has no employees so the trustees share the responsibilities of fundraising and day-to-day administration. All trustees give of their time freely and no trustee received remuneration or expenses during the year. There are currently no formal induction or training programmes for directors.
Risk assessment and management
The trustees have considered the major risks to which the charity is exposed and seek to manage them on an ongoing basis.
Our major operational risk is the security situation in the Arab world, which sometimes hinders our ability to print and distribute books
Financially, the charity relies mainly on private donations and grants from funding partners for specific projects. Most of this funding comes from the USA.
Objectives and activities for the public benefit
Al Kalima seeks to advance a clear understanding of Christian belief among Muslims by the publishing and distribution of culturally relevant Christian literature and digital media.
The charity's strategic objectives are:
-
To make available a translation of Scripture in Arabic understandable to Muslims and faithful to the original text
-
To publish Christian books which will help Muslims understand Christian beliefs
-
To place our titles in the commercial mainstream of Arabic publishing and distribution
-
To use other forms of media to disseminate more widely the message of our books
-
To partner with other like-minded organisations to achieve our objectives
Review of activities
The main activities of the charity in 2023 were printing books for distribution in Syria. There is a very active group of believers who have been giving out copies of True Meaning over the last few years. In the future we may look at publishing smaller Scripture portions to enable us to distribute more copies. Moreover, a smaller book will be more portable.
Our Luke Arabic/English diglot was published in India at the beginning of 2024, as print-on-demand. We would like to find ways of promoting this, through the participation of partners in the region. Al Kalima does not have the resources to expand distribution directly there.
Digital publishing has continued, both in standard Arabic, based on our True Meaning translation, and in Arabic dialects of North Africa through the Tanara-Jazara project.
We are glad to welcome Duncan Peters as a trustee. Duncan has been involved with ministry to Muslims and in publishing for several years and shares our goal of trying to build bridges of understanding. The board is actively looking for more new trustees. The charity is also reviewing it charitable objects with the purpose of better reflecting our aims and activities.
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Al Kalima (A Company Limited by Guarantee)
Financial review
Al Kalima has continued to benefit from the generosity of a small number of donors. The Seed Company has also continued funding of the Tanara-Jazara project, with additional funding from Ascend Partners. In order to pay general expenses, we have begun to deduct 10% from project gifts to cover administration. We anticipate conducting further fundraising for Syria distribution in 2024.
Reserves policy
Our reserves policy is such that the charity normally pays its expenses in cash and has no long-term liabilities. We aim to keep a reserve of $4,000 (US dollars) which is equivalent to three months’ unrestricted expenditure.
Approved by the trustees and signed on its behalf by:
………………………………………………… Edmund Greening
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Al Kalima (A Company Limited by Guarantee)
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF AL KALIMA (the Company)
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity’s trustees, of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no material matters have come to my attention which give me cause to believe that:
-
accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
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the accounts do not accord with such records; or
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the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 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; or
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the accounts have not been prepared in accordance with Charities SORP (FRS 102).
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.
Signed:
22 August 2024 Ginny Santer FCCA Monetaire Accountants Limited Sovereign House 22 Shelley Road Worthing West Sussex BN11 1TU
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Al Kalima (A Company Limited by Guarantee)
Statement of Financial Activities for the year ended 31 December 2023
| Notes Income and endowments from Donations and legacies 2 Charitable activities 3 Total Incoming Resources Expenditure on Charitable activities 4 Total expenditure Net income/(expenditure) Transfers between funds 10 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted $ 7,647 957 8,604 14,811 14,811 (6,207) 48 (6,158) 10,709 (6,158) 4,551 |
Restricted $ 62,825 - 62,825 79,249 79,249 (16,424) (48) (16,473) 43,324 (16,473) 26,851 |
2023 Total funds $ 70,472 957 71,429 94,060 94,060 (22,631) - (22,631) 54,033 (22,631) 31,402 |
2022 Total funds $ 159,096 401 |
|---|---|---|---|---|
| 159,497 | ||||
| 138,022 | ||||
| 138,022 | ||||
| 21,475 - |
||||
| 21,475 | ||||
| 32,558 21,475 |
||||
| 54,033 |
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 9 to 14 form part of these accounts.
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Al Kalima (A Company Limited by Guarantee)
Balance Sheet as at 31 December 2023
| Note Fixed assets Current assets Cash at bank and in hand 9 31,233 Accrued income 3,830 Prepayments 1,035 Creditors: amounts falling due within one year 8 (4,696) Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Unrestricted funds 10 Restricted funds 10 Total funds |
2023 $ - 54,152 (119) 31,402 31,402 31,402 31,402 4,896 26,506 31,402 |
2022 $ |
|---|---|---|
| - 54,033 |
||
| 54,033 | ||
| 54,033 | ||
| 54,033 | ||
| 10,709 43,324 |
||
| 54,033 |
The company is entitled to exemption from audit under Section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies’ regime.
The financial statements were approved for issue by the Trustees on:
and signed on their behalf by
………………………………………………..
The notes on pages 9 to 14 form part of these accounts.
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Al Kalima (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Al Kalima 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.
1.2 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
1.3 Expenditure
Expenditure is 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
1.4 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.5 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
1.6 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
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Al Kalima (A Company Limited by Guarantee)
1.7 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. Income from donations and legacies
| Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Donations 7,647 62,825 70,472 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Donations 34,497 124,599 159,096 . Income from charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Income from charitable activities - Direct costs - Activities 957 - 957 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Income from charitable activities - Direct costs - Activities 401 - 401 . Analysis of expenditure on charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Direct costs - Activities 14,811 79,249 94,060 2022 2022 2022 $ $ $ Direct costs - Activities 16,374 121,648 138,022 |
Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Donations 7,647 62,825 70,472 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Donations 34,497 124,599 159,096 . Income from charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Income from charitable activities - Direct costs - Activities 957 - 957 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Income from charitable activities - Direct costs - Activities 401 - 401 . Analysis of expenditure on charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Direct costs - Activities 14,811 79,249 94,060 2022 2022 2022 $ $ $ Direct costs - Activities 16,374 121,648 138,022 |
Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Donations 7,647 62,825 70,472 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Donations 34,497 124,599 159,096 . Income from charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Income from charitable activities - Direct costs - Activities 957 - 957 Unrestricted funds Restricted funds Total funds 2022 2022 2022 $ $ $ Income from charitable activities - Direct costs - Activities 401 - 401 . Analysis of expenditure on charitable activities Unrestricted funds Restricted funds Total funds 2023 2023 2023 $ $ $ Direct costs - Activities 14,811 79,249 94,060 2022 2022 2022 $ $ $ Direct costs - Activities 16,374 121,648 138,022 |
|---|---|---|
| Total funds 2022 $ 401 |
||
| Total funds 2023 $ 94,060 2022 $ 138,022 |
||
3. Income from charitable activities
4. Analysis of expenditure on charitable activities
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Al Kalima
(A Company Limited by Guarantee)
5. Analysis of expenditure by activities
| 5. | Analysis of expenditure by activities | |||
|---|---|---|---|---|
| Activities | Support |
Total | ||
| undertaken | costs |
funds | ||
| directly | ||||
| 2023 | 2023 |
2023 | ||
| $ | $ |
$ | ||
| Direct costs - Activities | 77,324 | 16,735 |
94,060 | |
| Activities | Support |
Total | ||
| undertaken directly | costs |
funds | ||
| 2022 | 2022 |
2022 | ||
| $ | $ |
$ | ||
| Direct costs - Activities | 124,049 | 13,973 |
138,022 | |
| 6. | Independent examiner’s remuneration | |||
| 2023 | 2022 | |||
| $ | $ | |||
| Fees payable to the Company’s independent examiner for the | ||||
| independent examination of the Company’s annual accounts | 796 | - | ||
| 7. | Trustees’ remuneration and expenses | |||
| During the year ended 31 December 2023 no trustees received any remuneration or benefits_(2022 -_ | ||||
| £NIL). | ||||
| During the year ended 31 December 2023 no trustee expenses have been | incurred_(2022 - £NIL)._ |
| 8. Creditors: Amounts falling due within one year Accruals and deferred income 9. Cash at bank and in hand Financial assets Financial assets measured at fair value through income and expenditure |
2023 $ 2022 $ 4,696 119 2023 2022 $ $ 31,233 54,152 |
|---|---|
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Al Kalima (A Company Limited by Guarantee)
10. Statement of funds
Statement of funds – current year
| Balance as at 1 January 2023 $ Unrestricted funds General funds 10,709 Restricted funds Chanting - Distribution 39,646 Tanara-Jazara 3,678 Total restricted 43,324 Total of funds 54,033 Statement of funds – prior year Balance as at 1 January 2022 $ Unrestricted funds General funds – all funds (7,391) Restricted funds Restricted funds – all funds 39,949 Total of funds 32,558 |
Income $ 8,604 8,000 21,872 32,953 62,825 71,429 Income $ 34,898 124,599 159,497 |
Expenditure $ (13,989) (8,000) (45,463) (26,131) (79,594) (93,583) Expenditure $ (16,374) (121,648) (138,022) |
Transfers in/out $ 48 - - (48) (48) - Transfers in/out $ (424) 424 - |
Balance as at 31 December 2023 $ 5,372 |
|---|---|---|---|---|
| - 16,055 10,452 |
||||
| 26,603 | ||||
| 31,975 | ||||
| Balance as at 31 December 2022 $ 10,709 |
||||
| 43,324 | ||||
| 54,033 |
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Al Kalima (A Company Limited by Guarantee)
11. Description of funds
Chanting: Funds received to adapt Scripture passages into rhyming prose and make audio recordings of the same.
Distribution: Funds received to print and transport Scripture books for free distribution in certain Arab countries.
Tanara-Jazara: Funds received to translate Scripture into Tunisian and Algerian Arabic and to produce audio-visual materials from the translated portions.
12. Analysis of net assets between funds
Analysis of net assets between funds- current year
| Unrestricted funds 2023 $ Current assets 4,896 Creditors due within one year - Total of funds 4,896 Analysis of net assets between funds- prior year Unrestricted funds 2022 $ Current assets 10,709 Creditors due within one year - Total 10,709 |
Restricted funds 2023 $ 30,406 3,900 26,506 Restricted funds 2022 $ 43,443 119 43,324 |
Total funds 2023 $ 35,302 3,900 |
|---|---|---|
| 31,402 | ||
| Total funds 2022 $ 54,152 119 |
||
| 54,033 |
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Al Kalima
(A Company Limited by Guarantee)
13. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Net cash provided by/(used in) operating activities 14. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 15. Analysis of changes in net debt At 1 January 2023 $ Cash at bank and in hand 54,152 Total of funds 54,152 |
2023 $ 2022 $ (22,631) 21,475 (22,631) 21,475 2023 $ 2022 $ 31,233 54,152 31,233 54,152 Cash inflows $ At 31 December 2023 $ (22,919) 31,223 (22,919) 31,223 |
2023 $ 2022 $ (22,631) 21,475 (22,631) 21,475 2023 $ 2022 $ 31,233 54,152 31,233 54,152 Cash inflows $ At 31 December 2023 $ (22,919) 31,223 (22,919) 31,223 |
2022 $ 21,475 |
|---|---|---|---|
| 21,475 | |||
| 2022 $ 54,152 |
|||
| 54,152 | |||
| 31,223 |
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Al Kalima (A Company Limited by Guarantee)
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023
| Income Donations Sales Gross income in the reporting period Less: Charitable Activities Translation Recording Digital media Book production Carriage Support costs Travel Computer equipment Accountancy Consultancy Sundries Advertising Web hosting Finance Bank charges Forex gains/losses Total expenditure Net income/(expenditure) before taxation for the reporting period Net income/(expenditure) for the reporting period |
2023 $ 70,472 957 16,836 8,535 2,783 46,357 2,815 3,377 2,033 796 5,031 139 4,304 278 302 477 |
2023 $ 71,429 71,429 77,324 15,957 778 94,060 (22,631) (22,631) |
2022 $ 159,096 401 20,822 1,079 704 97,361 4,083 5,715 - - 3,600 16 327 731 166 3,418 |
2022 $ 159,497 |
|---|---|---|---|---|
| 159,497 | ||||
| 124,049 10,389 3,584 |
||||
| 138,022 | ||||
| 21,475 | ||||
| 21,475 |
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Al Kalima (A Company Limited by Guarantee)
| Surplus/(deficit) for the reporting period Surplus brought forward Surplus carried forward |
(22,631) 54,033 31,402 |
21,475 32,558 |
|---|---|---|
| 54,033 |
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