**Charity Registration No. 1080849**
## **AZHAR ACADEMY**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2020**
## **AZHAR ACADEMY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr I Gangat|
|---|---|
||Mr F Bobat|
||Mr I Amla|
|**Charity number**|1080849|
|**Auditor**|AGP Consulting|
||Q West|
||Great West Road|
||Brentford|
||TW8 0GP|
|**Bankers**|Al Rayan Bank Plc|
||97 - 99 Whitechapel Road|
||London|
||E1 1DT|
||Natwest Bank Plc|
||PO Box 2027 Parklands|
||De Havilland|
||Horwich|
||Bolton|
||BL6 4YU|
## **AZHAR ACADEMY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 2|
|Statement of trustees responsibilities|3|
|Independent auditor's report||
|Statement of financial activities|7|
|Balance sheet|8|
|Statement of cash flows|9|
|Notes to the financial statements|10 - 15|
## **AZHAR ACADEMY**
## **TRUSTEES REPORT**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The trustees present their 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 [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 advancement of education and furtherance of the religion of Islam and of Islamic Education. Azhar Academy runs nursery, primary and secondary schools in the London Borough of Waltham Forest and Newham. The main objective for the year was the continued operation of the schools and investment in education.
The school s are well established and are consistently rated high in the Borough and in London. The Trustees believe the school s provides education of the highest standard and nurture students to become responsible individuals and citizens.
The charity's activities are dedicated to students' academic, spiritual, moral, social, and cultural development, and the charity considers the success of these activities to be for the public benefit. The trustees have given due consideration to the charity commission published guidance on the public benefit requirement under Charities Act 2011. 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 trustees are pleased with the expansion of the school and the continuing success of providing education to girls.
Overall, the trustees believe that they have met their objectives for the yea r, particularly given a new set of circumstances that schools nationally have faced, where we were all required to switch to remote learning following government instructions to close schools in March 2020. In light of the pandemic and the effect it has had on the country at large. Leadership within the school worked towards putting in systems and structures to allow us to provide a seamless education and learning experience for our students.
## **Financial review**
At the balance sheet date, the charity had net assets of £2,531,795 (2019: £2, 376,890) . The trustees consider the financial performance of the charity during the year to be satisfactory. The objective is for the charity and its school operations to be self-sufficient.
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.
The main objective of the reserve policy is to ensure that the Charity is able to meet its short term operational costs in a situation where income fall below a sustainable level. The actual free reserve at the end of the year is £104k, The board of Trustees consider that the reserve policy is adequate, given the level of performance of the school and based on the premise that the giving nature is generous in a faith based organisation.
The trustees has 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.
- 1 -
## **AZHAR ACADEMY**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
The trustees acknowledge their responsibility to manage the risks faced by the charity. They have identified and given due consideration to the risks to which the charity may be exposed and are satisfied that systems are in place to mitigate exposure to those risks. The principal risks being a significantly reduced student intake which would directly impact on fee income, the school buildings becoming uninhabitable (e.g. due to damage) and fraud and error. These risks are managed through a concerted programme of media advertising to attract students to the schools. Regular independent fire and risk assessments are carried out of the premises and a disaster recovery plan is in place in the event the buildings are unavailable so that tuition can continue elsewhere. Appropriate financial controls and reporting systems are in place to provide reasonable assurance against fraud and error.
## **Going Concern**
The Trustees have reviewed the forecast of cashflows and student numbers, and considered budgets at least for the 12 months after the date of approval of these financial statements. As part of their review, the Trustees along with the Headmistress, have considered the impact of the Covid 19 pandemic and this is continually being reviewed on an ongoing basis. Consideration has been given to the fact that our schools rely on the payment of fees from families who could potentially be faced with a real impact on their financial situation over the coming months. The school will be implementing cost saving measures. Additionally to facilitate in easing the financial burden on parents, the school has had to take a more flexible approach to fee collection. In the event that future cashflow projections show potential shortfalls, the charity will seek to obtain additional fundraising through initiatives with its Trustees and other patrons.
## **Structure, governance and management**
The charity is a n unincorporated charity and it is controlled by its governing document, a deed of trust.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr I Gangat Mr F Bobat Mr I Amla
The trustees r eport was approved by the Board of Trustees.
## **Mr I Gangat**
Trustee Dated: 22 June 2021
- 2 -
## **AZHAR ACADEMY**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
- 3 -
## **AZHAR ACADEMY**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF AZHAR ACADEMY**
## **Opinion**
We have audited the financial statements of Azhar Academy (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) .
- In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 August 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- the trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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.
- 4 -
## **AZHAR ACADEMY**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AZHAR ACADEMY**
## **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:
- the information given in the financial statements is inconsistent in any material respect with the trustees r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, 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: http s ://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
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.
- 5 -
## **AZHAR ACADEMY**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AZHAR ACADEMY**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **AGP Consulting**
## **Chartered Accountants Statutory Auditor**
Q West Great West Road Brentford TW8 0GP
AGP Consulting 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
- 6 -
## **AZHAR ACADEMY**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **Current financial year**
|||**Unrestricted**|
|---|---|---|
|||**funds**|
|||**2020**|
||**Notes**|
**£**|
|**Income from:**|||
|Donations and legacies|**3**|189,593|
|Charitable activities|**4**|1,566,536|
|**Total income**||1,756,129|
|**Expenditure on:**|||
|Charitable activities|**5**|1,601,224|
|**Net income/(expenditure) for the year/**|||
|**Net movement in funds**||154,905|
|Fund balances at 1 September 2019||2,376,890|
|**Fund balances at 31 August 2020**||2,531,795|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
## **Prior financial year**
|**Unrestricted**
**funds**
**2019**
**Notes**
**£**
**Income from:**
Donations and legacies
**3**
170,729
Charitable activities
**4**
1,384,194
**Total income**
1,554,923
**Expenditure on:**
Charitable activities
**5**
1,579,613
**Net income/(expenditure) for the year/**
**Net movement in funds**
(24,690)
Fund balances at 1 September 2018
2,401,580
**Fund balances at 31 August 2019**
2,376,890|**Total**
**2019**
**£**
170,729
1,384,194
1,554,923
1,579,613
(24,690)
2,401,580
2,376,890|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **AZHAR ACADEMY**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**9**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**10**
**Net assets**
**Income funds**
Unrestricted funds|**2020**
**£**
**£**
2,515,059
579,159
(70,123)
509,036
3,024,095
(492,300)
2,531,795
2,531,795
2,531,795|**2019**
**£**
**£**
2,563,426
399,630
(99,866)
299,764
2,863,190
(486,300)
2,376,890
2,376,890
2,376,890|
|---|---|---|
The financial statements were approved by the Trustees on 22 June 2021
Mr I Gangat **Trustee**
- 8 -
## **AZHAR ACADEMY**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**12**
**Investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
(46,111)|**£**
225,640
(46,111)
-
179,529
399,630
579,159|**2019**
**£**
(40,973)|**£**
24,181
(40,973)
-
(16,792)
416,422
399,630|
|---|---|---|---|---|
- 9 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
## **Charity information**
Azhar Academy is a public benefit entity, it is an unincorporated charity and is a registered charity registered with the Charity Commission for England and Wales. The charity currently has three Trustees. The principle location of the Charity is 235a Romford Road, London E7 9HL.
## **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 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 a mounts 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. School fees are recognised in the period the fees are paid.
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.
- 10 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.5 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 15% reducing balance Fixtures and fittings 25% reducing balance
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.
## **1.6 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 ) .
## **1.7 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.
## _**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 p aymen ts 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.
- 11 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.8 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.
## **1.9 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|
||**2020**|2019|
||**£**|£|
|Donations and gifts|189,593|170,729|
|**Charitable activities**|||
||**Charitable**|
**Charitable**|
||**Income**|
**Income**|
||**2020**|
**2019**|
||**£**|
**£**|
|Sales within charitable activities|1,356,294|
1,302,194|
|Other income|210,242|
82,000|
||1,566,536|
1,384,194|
## **4 Charitable activities**
- 12 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|5||Charitable activities|Charitable activities|
|---|---|---|---|
|||**Charitable**|
**Charitable**|
|||**Expenditure**|
**Expenditure**|
|||**2020**|
**2019**|
|||**£**|
**£**|
||Staff costs|1,225,212|
1,116,362|
||Educational resources|138,957|
150,277|
||Telephone|4,679|
6,697|
||Light and heat|38,303|
36,316|
||Sundries|21,797|
33,458|
||Insurance|28,489|
21,698|
||Legal and professional|8,942|
30,208|
||Repairs and maintenance|15,004|
34,768|
||Rates and water|25,363|
27,027|
||Donations|-|
20,000|
||Depreciation on property|91,388|
100,429|
||Depreciation on Fixtures and fittings|3,090|
2,373|
|||1,601,224|
1,579,613|
|||1,601,224|
1,579,613|
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **7 Employees**
The average monthly number of employees during the year was:
|Teachers
Assistants
Administration
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
42
54
8
104
**2020**
**£**
1,149,726
65,668
9,818|**2019**
**Number**
46
26
8
80
**2019**
**£**
1,044,173
66,165
6,024|
|---|---|---|
- 13 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**7**
**Employees**
There were no employees whose annual remuneration was £60,000 or more.
**8**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 September 2019
3,795,917
Additions
40,152
At 31 August 2020
3,836,069
**Depreciation and impairment**
At 1 September 2019
1,241,981
Depreciation charged in the year
91,388
At 31 August 2020
1,333,369
**Carrying amount**
At 31 August 2020
2,502,700
At 31 August 2019
2,553,936
**9**
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income
**10**
**Creditors: amounts falling due after more than one year**
Other creditors|**(Continued)**
1,225,212
1,116,362
**Fixtures and**
**fittings**
**Total**
**£**
**£**
85,191
3,881,108
5,959
46,111
91,150
3,927,219
75,701
1,317,682
3,090
94,478
78,791
1,412,160
12,359
2,515,059
9,490
2,563,426
**2020**
**2019**
**£**
**£**
17,412
17,812
48,416
77,759
4,295
4,295
70,123
99,866
**2020**
**2019**
**£**
**£**
492,300
486,300|
|---|---|
## **11 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
- 14 -
## **AZHAR ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2020**_
|**12**
**Cash generated from operations**
Surplus/(deficit) for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Decrease) in creditors
**Cash generated from operations**|**2020**
**£**
154,905
94,478
(23,743)
225,640|**2019**
**£**
(24,690)
102,802
(53,931)
24,181|
|---|---|---|
13 **Analysis of changes in net funds** The charity had no debt during the year.
- 15 -