DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Charity registration number: 1082410
Rabia Educational Trust
Annual Report and Financial Statements for the Year Ended 31 August 2022
DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 14 |
DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Reference and Administrative Details
Trustees Mr Zafar Iqbal Khan Mr Raja Mageed Khan Mr Samsul Haque Mr U Khan Naeem Khan (appointed 11 February 2023) Muzamal Hussain (appointed 06 May 2023) Mohammad Arfan Anwar (appointed 06 May 2023) Principal Office 12-16 Portland Road Luton Bedfordshire LU4 8AX Charity Registration Number 1082410 Bankers Barclays Bank PO Box 48 28 George Street Luton LU1 2AE Independent Examiner Nasir Rafiq Dua Governance 123-131 Bradford Street Bradford Court Birmingham B12 0NS
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2022.
Objectives and activities
Objects and aims
The objectives of the Trust as set by the Trust deed continue to be to advance the single sex faith based education of girls and boys and to advance the academic as well as Islamic education in accordance with the Holy Quran and Hadith within the bounds of Ahle Sunnah Wal Jamaat.
The primary aim of the Charity is to provide an Islamic based education of children. However, the public are welcome to seek knowledge and education of the Islamic faith should they so wish.
Objectives, strategies and activities
The main activities during the year were:
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Provision of both academic and religious education to girls and boys in accordance with the Islamic faith.
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Further enhancement of teaching materials and library resources to maximising learning.
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Further enhancement of learning facilities.
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Increasing awareness of the trust and the services it provides.
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Provision of field trips to farms, camping trips to develop social and interpersonal skills of students.
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Facilitate community counselling and advice on local issues and needs.
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helping local/national charities.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Use of volunteers
The charity uses the services of volunteers in a number of ways;
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To assist in raising the profile of the charity.
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To assist with maintaining the records of the charity.
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To assist with the development of the charity.
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To provide teachings support.
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To maintain the buildings.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Trustees' Report
Achievements and performance
Providing evening Quran classes for 137 children between 5-16 years of age. 15 children are on our Quran memorisation course. The charity opened up its facilities i.e., Science & IT labs to the community to aid children with home schooling & tuition. The charity is subject to Charity Commission intervention and is being supported by an Interim Manager.
Financial review
During the year, the Trust income was £121k (2021: £211k) and after spend of £121k (2021: £235k), the carry forward reserves stood at £505k (2021: £505k).
The Trust Qard e Hassan interest free loan stood at £471k (2021: £475k).
Policy on reserves
The Trustees have resolved to establish over the next few years reserves to provide for future activities, and to provide funding for the expected expenditure for four months ahead.
Current reserves are adequate based on our knowledge and experience.
Principal funding sources
The principal income was generated through the provision of education in accordance with the objectives of the charity. The principal expenditure related to the cost of providing education.
Going concern
During the year, although the charity showed a loss of £0.6k (2021: £24k) –This suggests the charity was able to breakeven after a significant deficit in the prior year. Although the school has now closed, the charity is still operating and generating income from children attending evening Islamic classes and for a tuition service. The charity has plans to provide Aalimiyah courses (a course for female Islamic scholars). The charity continues to receive rental income from charity properties.
Structure, governance and management
Nature of governing document
The Charity is an unincorporated association created by a trust deed dated 12th September 2000. This was amended an the 25th October 2013.
Recruitment and appointment of trustees
New Trustees are appointed by invitation based upon the specific requirements and the skill set needed by the charity to help advance the charitable objectives.
Induction and training of trustees
We have at the moment no policy or procedure for the training of trustees, other than the "do's and don'ts" publication provided by the charity.
Organisational structure
Trustees meet regularly on a half termly basis to discuss and plan objectives and implementation thereof. Matters of general concern are raised with all members. Day to day management and responsibility for implementing policies is carried out by the Head Teacher. There are 12 full time and 6 part time employees plus a number of volunteers and employment trainees.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Trustees' Report
Relationships with related parties
Other than the Trustees and those persons connected with them there are no individuals who are related parties. Details of transactions with related parties are shown in the notes to the accounts. This includes remuneration and expenses paid to the Trustees.
Major risks and management of those risks
The trustees acknowledge their responsibilities for establishing a risk management system and are satisfied that appropriate systems and procedures are under development and continue to keep the strategic, business and operational risk under review with view to introducing, where necessary, additional procedures to mitigate these risks.
27 June 2023
The annual report was approved by the trustees of the charity on ........................ and signed on its behalf by:
......................................... Mr Samsul Haque Trustee
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 proper 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Independent Examiner's Report to the trustees of Rabia Educational Trust
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2022 which are set out on pages 7 to 14.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Rabia Educational Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Rabia Educational Trust's accounts 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:
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accounting records were not kept in respect of Rabia Educational Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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.
...................................... Nasir Rafiq ICAEW
Dua Governance 123-131 Bradford Street Bradford Court Birmingham B12 0NS 27 June 2023
Date:.............................
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Statement of Financial Activities for the Year Ended 31 August 2022
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Other income 4 Total Income Expenditure on: Charitable activities 5 Total Expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 Note Income and Endowments from: Donations and legacies Charitable activities Other income Total income Expenditure on: Charitable activities Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 |
Unrestricted funds £ 8,357 55,348 56,836 120,541 (121,195) (121,195) (654) 137,645 136,991 Unrestricted funds £ 29,637 74,794 107,014 211,445 (234,823) (234,823) (23,378) (23,378) 161,023 137,645 |
Restricted funds £ - - - - - - - 367,811 367,811 Restricted funds £ - - - - - - - - 367,811 367,811 |
Total 2022 £ 8,357 55,348 56,836 120,541 (121,195) (121,195) (654) 505,456 504,802 Total 2021 £ 29,637 74,794 107,014 211,445 (234,823) (234,823) (23,378) (23,378) 528,834 505,456 |
|---|---|---|---|
All of the charity's activities derive from continuing operations during the above two periods.
The funds breakdown for 2021 is shown in note 17.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
(Registration number: 1082410) Balance Sheet as at 31 August 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand 14 Creditors: Amounts falling due within one year 15 Net current liabilities Total assets less current liabilities Creditors: Amounts falling due after more than one year 16 Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 17 |
2022 £ 1,001,605 14,170 100 14,270 (40,275) (26,005) 975,600 (470,798) 504,802 367,811 136,991 504,802 |
2021 £ 1,024,890 - 81 |
|---|---|---|
| 81 (44,137) |
||
| (44,056) | ||
| 980,834 (475,378) |
||
| 505,456 | ||
| 367,811 137,645 |
||
| 505,456 |
The financial statements on pages 7 to 14 were approved by the trustees, and authorised for issue on .......................... and signed on their behalf by:
......................................... Mr Samsul Haque Trustee
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Rabia Educational Trust 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 notes.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
During the year, although the charity showed a loss of £24k – this equal to the yearly depreciation charge. This suggests the charity was able to breakeven from a cash inflow and outflow point of view. Although the school has now closed, the charity is still operating and generating income from children attending evening Islamic classes and for a tuition service. The charity has plans to provide Aalimiyah courses (a course for female Islamic scholars). The charity continues to receive rental income from charity properties.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Freehold Property - 2% straight line Plant & Machinery - 20% reducing balance
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
2 Income from donations and legacies
| Donations and legacies; Donations from individuals |
Unrestricted funds General £ 8,357 8,357 |
Total 2022 £ 8,357 8,357 |
Total 2021 £ 29,637 |
|---|---|---|---|
| 29,637 |
3 Income from charitable activities
| School 4 Other income Rental Income HMRC JRS Grant Other Income 5 Expenditure on charitable activities School Governance Cost |
Unrestricted funds General £ 56,800 - 36 56,836 Activity undertaken directly £ 118,197 2,998 121,195 Unrestricted funds General £ 55,348 |
Total 2021 £ 56,800 - 36 56,836 Total 2022 £ 118,197 2,998 121,195 Total 2022 £ 55,348 |
Total 2021 £ 74,794 |
||
|---|---|---|---|---|---|
| Total 2020 £ 64,160 42,811 43 |
|||||
| 107,014 | |||||
Total 2021 £ 201,479 33,344 |
|||||
| 234,823 |
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
6 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Other professional fees |
Unrestricted funds General £ 2,340 658 2,998 |
Total 2022 £ 2,340 658 2,998 |
Total 2021 £ 2,340 31,004 |
|---|---|---|---|
| 33,344 |
7 Net incoming/outgoing resources
Net outgoing resources for the year include:
Depreciation of fixed assets
| 2022 £ 23,285 |
2021 £ 23,285 |
|---|---|
8 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries |
2022 £ 16,610 |
2021 £ 124,657 |
|---|---|---|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Employee No No employee received emoluments of more than £60,000 during the year 10 Independent examiner's remuneration Examination of the financial statements |
2022 No 17 2022 £ 2,340 |
2021 No 20 |
|---|---|---|
| 2021 £ 2,340 |
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
12 Tangible fixed assets
| 12 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Cost At 1 September 2021 At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 13 Debtors Trade debtors 14 Cash and cash equivalents Cash at bank 15 Creditors: amounts falling due within one year Trade creditors Other creditors Accruals 16 Creditors: amounts falling due after one year Other loans |
Land and buildings £ 1,269,800 1,269,800 246,625 22,856 269,481 1,000,319 1,023,175 |
Plant & Machinery £ 56,471 56,471 54,756 429 55,185 1,286 1,715 2022 £ 100 2022 £ 35,596 - 4,679 40,275 2022 £ 470,798 |
Total £ 1,326,271 1,326,271 301,381 23,285 324,666 1,001,605 1,024,890 2022 £ 14,170 |
||
| 2022 £ 100 2022 £ 35,596 - 4,679 40,275 2022 £ 470,798 |
|||||
2021 £ 81 |
|||||
| 2021 £ 38,605 2,829 2,703 |
|||||
| 44,137 | |||||
2021 £ 475,378 |
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DocuSign Envelope ID: 3C741DE5-3CC5-4FF5-85D7-D28271A0E1F3
Rabia Educational Trust
Notes to the Financial Statements for the Year Ended 31 August 2022
17 Funds
| 17 Funds | ||||
|---|---|---|---|---|
| Unrestricted funds Unrestricted general funds Restricted funds Total funds |
Balance at 1 September 2021 £ (137,645) (367,811) (505,456) |
Incoming resources £ (120,541) - (120,541) |
Resources expended £ 121,195 - 121,195 |
Balance at 31 August 2022 £ (136,991) (367,811) |
| (504,802) |
18 Related party transactions
Trustee Z I Khan is also a director of Treetop Nursery Ltd which rents premises at commercial rates of £24,000 per annum (2021: £24,000)
Trustee Z I Khan is also a director of Luton Dawah Academy which rents premises at commercial rates of £24,000 per annum (2021: £24,000)
During the year Trustee Z I Khan gave £4,500 (2021: £16,500) qard e hasan.
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