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2023-08-31-accounts

Charity registration number 1080849

AZHAR ACADEMY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

AZHAR ACADEMY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr I Gangat MBE
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 4 - 6
Statement of financial activities 7 - 8
Balance sheet 9
Statement of cash flows 10
Notes to the financial statements 11 - 19

AZHAR ACADEMY

TRUSTEES REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their annual report and financial statements for the year ended 31 August 2023.

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

Azhar Academy is a charitable organisation founded in 1996 under the instruction and guidance of Shaykh al-Hadith Hazrat Maulana Yusuf Motala (Rahmatullah Alayh). The purpose of our charity is to provide Islamic and educational services and other charitable 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 has specifically designed a school curriculum which provides a sound and comprehensive education for our students and aims to instil in them good moral conduct, sound comprehension of their faith and an unwavering commitment to succeed.

We continue to provide a stimulating and holistic approach to learning, we are able to offer each student the opportunity to learn and achieve their true potential. We teach a wide range of subjects, both National Curriculumbased and Islamic, aimed to fully equip our students with the best knowledge, skills and understanding to participate positively in today’s challenging and diverse society. We expect our students to leave the school equipped with the correct tools for the next stage of their education with a confident, responsible and tolerant outlook on life.

Our schools are well established and are consistently rated high in the Borough and in London. The Trustees believe the schools provides education of the highest standard and nurture students to become responsible individuals and citizens. The schools have very good working relationships with outreach programmes that benefit the students and wider communities.

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.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

To receive, administer and distribute funds to preserve and teach the principles of Islam, perpetuate the social, moral and religious standards of Indonesian Muslims in the United Kingdom.

Achievements and performance

Significant activities and achievements against objectives

The trustees are pleased with the expansion of the school and the continuing success of providing education to students.

Leadership within the school continues to work towards putting in systems and structures to allow us to provide a seamless education and learning experience for our students. The school continues to provide an outstanding provision for staff and students.

AZHAR ACADEMY

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Financial review

At the balance sheet date, the charity had net assets of £3,106,329 (2022: £3,088,872) . 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.

Reserves policy

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The 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 normal 3 months spend is circa £480k and currently the trust has circa £483k cash at bank, which is sufficient to cover this. The main liabilities are gifted loans which are only called upon if the Charity has the ability to repay. The actual unrestricted reserve at the end of the year is £3,106,329 (2022 - £3,088,872) , 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.

Major risks

Risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

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.

Structure, governance and management

The charity is an 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 MBE Mr F Bobat Mr I Amla

The The trustees report was approved by the Board of Trustees. trustees r@port was approved by the Board of Trustees. Mr | Gangat MBE Mr I Gangat MBE Trustee Trustee

28 June 2024

AZHAR ACADEMY

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2023

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:

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.

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 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

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

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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:

AZHAR ACADEMY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AZHAR ACADEMY

Responsibilities of trustees

As explained more fully in the statement of trustees responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained and understanding of the legal and regulatory framework applicable to the Charity and the industry in which it operates, drawing on our sector experience and considered the risk of acts by the Charity that could be contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including but not limited to, the Charity Commission, The Independent Schools Standards and the equivalent local laws and regulations.

We made enquiries of trustees and school management, with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the trustee meetings. legal reports provided to the Charity and correspondence between the Charity and its solicitors. Audit procedure performed by the engagement team included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

AZHAR ACADEMY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF AZHAR ACADEMY

Other matters

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.

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 auditor's 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.

Forhad Ahmed (Senior Statutory Auditor) for and on behalf of AGP Consulting

28 June 2024

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 section 1212 of the Companies Act 2006.

AZHAR ACADEMY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023

Current financial year

Unrestricted
funds
2023
Notes £
Income from:
Donations and legacies 3 341,804
Charitable activities 4 1,948,852
Total income 2,290,656
Expenditure on:
Charitable activities 5 2,273,199
Net income for the year/
Net movement in funds 17,457
Fund balances at 1 September 2022 3,088,872
Fund balances at 31 August 2023 3,106,329

The statement of financial activities includes all gains and losses recognised in the year.

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
2022
Notes
£
Income from:
Donations and legacies
3
355,602
Charitable activities
4
1,599,744
Total income
1,955,346
Expenditure on:
Charitable activities
5
1,913,977
Net income for the year/
Net movement in funds
41,369
Fund balances at 1 September 2021
3,047,503
Fund balances at 31 August 2022
3,088,872		 Total
2022
£
355,602
1,599,744
1,955,346
1,913,977
41,369
3,047,503
3,088,872

The statement of financial activities includes all gains and losses recognised in the year.

AZHAR ACADEMY

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

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

AZHAR ACADEMY

BALANCE SHEET

AS AT 31 AUGUST 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 12 5,330,540 5,286,267
Current assets
Debtors 13 33,110 51,669
Cash at bank and in hand 482,999 510,480
516,109 562,149
Creditors: amounts falling due within 15
one year (58,503) (50,098)
Net current assets 457,606 512,051
Total assets less current liabilities 5,788,146 5,798,318
Creditors: amounts falling due after
more than one year 16 (2,540,300) (2,591,300)
Deferred income 17 (141,517) (118,146)
Net assets excluding pension liability 3,106,329 3,088,872
Net assets 3,106,329 3,088,872
The funds of the charity
Unrestricted funds 3,106,329 3,088,872
3,106,329 3,088,872

The financial statements were approved by the trustees on 28 June 2024

Mr I Gangat MBE Trustee

AZHAR ACADEMY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
21
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Financing activities
Proceeds from borrowings
Net cash generated from financing
activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
2022
£
£
£
£
(2,476)
1,678,440
(225,005)
(2,860,174)
(225,005)
(2,860,174)
200,000
1,300,000
200,000
1,300,000
(27,481)
118,266
510,480
392,214
482,999
510,480

The notes on pages 11 to 19 form part of these financial statements.

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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 or grantors 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.

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

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 are allocated on the portion of the asset’s use.

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 2% straight line Freehold improvements 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 the statement of financial activities.

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.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Private Loans: "Qard Hasnah" is an interest free loans from the Charity's beneficiaries, which only have a moral obligation to repay as per agreement Qard Haanah is recognised when received / paid and recorded under liabilities due after more than one year.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The Charity is an exempt charity within the meaning of schedule 3 of the Charities Act2011 and is considered to pass the tes1s set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation lax purposes.

1.10 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.

1.11 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.

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3 Income from donations and legacies

Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 341,804 355,602
4 Income from charitable activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Education
School fees 1,796,999 1,538,924
Other income 151,853 60,820
1,948,852 1,599,744
5 Charitable activities
Charitable
Charitable
Expenditure Expenditure
2023 2022
£ £
Staff costs 1,699,777 1,446,626
Educational resources 142,258 112,646
Telephone 3,272 3,057
Light and heat 115,418 70,449
Sundries 11,617 66,790
Insurance 30,761 32,006
Legal and professional 3,322 1,506
Repairs and maintenance 32,341 26,983
Staff training 11,202 -
Rates and water 33,899 37,395
Depreciation on property 169,667 101,853
Depreciation on Fixtures and fittings 11,065 6,066
2,264,599 1,905,377
Share of governance costs (see note 6) 8,600 8,600
2,273,199 1,913,977

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

6
Support costs allocated to activities
Governance costs
Analysed between:
Charitable Activities
7
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
8
Auditor's remuneration
Fees payable to the charity's auditor and associates:
For audit services
Audit of the financial statements of the charity		 2023
£
8,600
8,600
2023
£
5,000
180,732
2023
£
5,000		 2022
£
8,600
8,600
2022
£
5,000
107,919
2022
£
5,000

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Teachers
Assistants
Administration
Total		 2023
Number
77
27
7
111		 2022
Number
79
28
7
114

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

10
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2023
2022
£
£
1,601,726
1,356,597
85,175
77,982
12,876
12,047
1,699,777
1,446,626		 (Continued)
2023
2022
£
£
1,601,726
1,356,597
85,175
77,982
12,876
12,047
1,699,777
1,446,626
1,446,626

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

12 Tangible fixed assets

Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 September 2022
6,791,621
112,686
Additions
193,944
31,061
At 31 August 2023
6,985,565
143,747
Depreciation and impairment
At 1 September 2022
1,529,616
88,424
Depreciation charged in the year
169,667
11,065
At 31 August 2023
1,699,283
99,489
Carrying amount
At 31 August 2023
5,286,282
44,258
At 31 August 2022
5,262,005
24,262
13
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
33,110		 Total
£
6,904,307
225,005
7,129,312
1,618,040
180,732
1,798,772
5,330,540
5,286,267
2022
£
51,669

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

14 Loans and overdrafts

Loans and overdrafts
Other loans
Payable after one year		 2023
£
1,500,000
1,500,000		 2022
£
1,300,000
1,300,000

The long-term loans are secured by fixed charges over one of the school premises which was acquired during the year. There are no set repayment plan, this loan was under Islamic terms based on trust and no interest being charged. During the year a new loan of £1 million was taken under the same terms, of this £800k was utilised to repay the initial loan, leaving a balance of £0.5 million.

15 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Borrowings
Qard Hasanah
17
Deferred income
Arising from Fees paid in advance
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Shown as deferred income on the face of the balance sheet
Movements in the year:		 2023
£
-
44,608
13,895
58,503
2023
£
1,500,000
1,040,300
2,540,300
2023
£
141,517
2023
£
141,517		 2022
£
194
44,609
5,295
50,098
2022
£
1,300,000
1,291,300
2,591,300
2022
£
118,146
2022
£
118,146

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

17
Deferred income
Deferred income at 1 September 2022
Resources deferred in the year
Deferred income at 31 August 2023
18
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 (Continued)
118,146
-
23,371
118,146
141,517
118,146
2023
2022
£
£
12,876
12,047		 (Continued)
118,146
-
23,371
118,146
141,517
118,146
2023
2022
£
£
12,876
12,047
118,146
2022
£
12,047

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.

19 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 Incoming Resources At 31 August
September resources expended 2023
2022
£ £ £ £
General funds 3,088,872 2,290,656 (2,273,199) 3,106,329
Previous year: At 1 Incoming Resources At 31 August
September resources expended 2022
2021
£ £ £ £
General funds 3,047,503 1,955,346 (1,913,977) 3,088,872

20 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

AZHAR ACADEMY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

21
Cash generated from operations
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease)/increase in creditors
Increase in deferred income
Cash (absorbed by)/generated from operations
22
Analysis of changes in net (debt)/funds
At 1 September
2022
£
Cash at bank and in hand
510,480
Loans falling due after more than one year
(1,300,000)
(789,520)		 2023
2022
£
£
17,458
41,368
180,731
107,919
18,559
1,348,331
(242,595)
62,676
23,371
118,146
(2,476)
1,678,440
Cash flows
At 31 August
2023
£
£
(27,481)
482,999
(200,000)
(1,500,000)
(227,481)
(1,017,001)