ED
EL
DITED',FINANCIAL
A*EMENTS 2020-21
## CONTENTS
|About Us|05|
|---|---|
|MWF Wordwide|06|
|Report of the Trustees|10|
|Report of the Independent Auditors to||
|the Trustees of MWF|16|
|Statement of the Financial Activities|20|
|Statement of the Financial Position|21|
|Statement of the Cash Flows|22|
|Notes to the Statement of Cash Flows|23|
|Notes to the Financial Statements|24|
Inspired by our faith and guided by our values, we envisage a peaceful world where communities are empowered, social obligations are fulfilled and people respond to the needs and suffering of others.
Minhaj Welfare Foundation takes the principle view that there is no greater priority in life than to lift the poor out of poverty.
## ABOUT US
Minhaj Welfare Foundation was founded in 1989 as a compassionate response to the rise of inequaliy and poverty in Pakistan. Since then it has been serving and striving to make the world a better and fairer place.
One of the key and foremost reasons for the establishment of Minhaj Welfare Foundation was to establish a network of schools that will provide a quality education that is accessible to the economically deprived communities of Pakistan.
MWF strongly believes that education is the most crucial foundation stone of any society; without which the development and progress of any nation is not achievable.
Since our establishment, we have built 640 educational institutions including schools, colleges, libraries and a University catering for well over 150,000 students and through this we are contributing to the livelihoods of over 7000 families hrough the employment of our academic and administrative staff.
MWF strongly adheres to the philosophy that education should be supplemented with rigorous moral and ethical training so that the students make a positive contribution to the development of their communities.
Based on this our Education program provides a holistic education that empowers children to lead productive and successful lives.
Today, through its worldwide network Minhaj Welfare Foundation is growing as a leading international grassrootled organisation. We are proud of the achievements made by MWF so far and know that there is still much to do.
We thank all of our supporters, volunteers and MWF staff for their continuous support and endevours in saving lives around the world.
Dr Muhammad Tahir-ul-Qadri Founder Minhaj Welfare Foundation
5
**TURKEY Emergency Relief Food Packages Orphan Care Home**
## **BOSNIA**
**Emergency Relief Food Packages**
## **IRAQ**
**Food Program Eid Gifts Seasonal Programs**
## **PALESTINE**
**Student Sponsorship Medical Aid Eid Gifts Qurbani**
**SUDAN Education Water & Sanitation Health Care Sustainable Living**
## **HAITI**
**Emergency Relief Education Food & Shelter**
## **MWF Worldwide**
## **NIGERIA**
**Education Water & Sanitation Health Care Sustainable Living Qurbani**
## **KENYA**
**Education Health Care Qurbani**
6
## **KYRGYZSTAN**
**Emergency Relief Food Packages Medical Aid**
## **SYRIA**
**Emergency Relief Student Sponsorship Food Packs Medical Aid Qurbani**
## **PAKISTAN**
**Education Water & Sanitation Sustainable Living Orphan Care Home Bait-uz-Zahra Congregational Marriages Emergency Relief Ambulance Service Free Eye Surgery Help Feed Health Care Qurbani**
**JAPAN Emergency Relief**
## **BANGLADESH**
## **NEPAL**
**Emergency Relief Education Food Packs Medical Aid Qurbani**
**SOMALIA Education Water & Sanitation Health Care Sustainable Living INDIA Qurbani Education**
**Food Programs Healthcare Poverty Relief Qurbani**
**TANZANIA Education Eradicating Poverty**
**Aid for Rohingya Clean Water Education Medical Care Qurbani**
**INDONESIA Sustainable Living Water Purification Orphan & Widows**
## **on**
7
Since 1989 We thank our supporters for their growing trust in our organisation: sharing peace, love and harmony with the less fortunate worldwide, regardless of race, relgion, language or sect.[;]
## BANK TRANSFER
For UK (GBP - £) Bank Name: HSBC Sort Code: 40-15-17 Account No.: 21 65 18 03 IBAN No.: GB35 HBUK 401517 2165 1803 SWIFT: HBUKGB411 4H
For EUROPE (EURO - € ) Bank Name: HSBC Sort Code: 40-12-76 Account No.: 74 27 39 64 IBAN No.: GB39 HBUK 401276 7427 3964 SWIFT: HBUKGB4B
For US (DOLLAR - $) Bank Name: HSBC Sort Code: 40-12-76 Account No.: 74 27 22 49 IBAN No.: GB79 HBUK 401276 7427 2249 SWIFT: HBUKGB4B
## TELEPHONE DONATIONS
## CHEQUES BY POST
## ONLINE DONATIONS
To make a donation over the phone using your debit/credit card, please call us directly on:
0300 30 30 777 (UK) +44 20 3375 4730 (INT.) 1-888-9-646425 (US/CA)
Please make cheques payable to MWF and post to
Minhaj Welfare Foundation, 30 Brindley Road, Manchester, M16 9HQ
Visit our website minhajwelfare.org
Registered Charity Numbers: England & Wales 1084057 Scotland SC043566
Implemented Projects on behalf of
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
**_____________________________________________**
The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## OBJECTIVES AND ACTIVITIES
## OBJECTIVES AND AIMS
The organisation, Minhaj-ul-Quran Welfare Foundation ‘MWF’ is a registered charity and was established by a Trust Deed made on the 10th May 2000, which was first amended on the 7th December 2000 and registered with the Charity Commission on the 11th December 2000. The Trust Deed was then amended in October 2012. The charity is governed under the Trust Deed.
Minhaj Welfare Foundation (MWF) is a Worldwide Humanitarian Development organisation helping to support the poor and needy in marginalised communities working for their basic human rights, providing children access to Education, providing the poor access to Basic Health Care and the means for Social Economic & Welfare support for the deprived within the developing world.
It aims to work in removing short term difficulties and is committed to work to its long term and sustainable goals in South Asia, The Middle East, Africa, UK, Europe and North America.
The core objectives of Minhaj Welfare Foundation can be summarised into the following:
- a. The relief of poverty, sickness, distress and suffering of any persons who are in need irrespective of their nationality, race, ethnic origin and religious beliefs.
- b. The advancement of other charitable purposes for the benefit of the public to provide recreational facilities and activities in the interests of social welfare with the objective of providing the conditions of life for those persons in need of such facilities.
- c. The advancement of research & development and education for the public benefit concerning the teachings of Islam.
## SIGNIFICANT ACTIVITIES
The charity invested heavily its time and resources in the advancement of all its purposes mentioned above. Its most significant activities were focused around providing the needy with life’s necessities, such as clean water and food, and education through its institutes and sponsorships.
The charity also supported Minhaj College Manchester in furtherance of its educational objectives and FMRI in furtherance of its Research and Development goals.
36
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
**_____________________________________________**
## VOLUNTEERS
Volunteers are an important resource in both faith and community work. Volunteers are involved in most of our community activities, and we have volunteers regularly giving their time. All our trustees also give their time freely. We encourage all members of our organisation to be involved in voluntary activities and to share their skills with others.
## ACHIEVEMENT AND PERFORMANCE
## CHARITABLE ACTIVITIES
Over the past year MWF has been extensively working to improve its administrative procedures and ensure a more efficient and effective aid/project delivery procedure.
Over the year, we have worked on development of a new Fundraising and Donor Relationship Department. Our focus has been to improve our digital presence through a revamped website and more holistic and consistent Digital Marketing.
Our media campaign was run through social media, google advertising, various private TV channels and community radio stations across the UK to help promote all our campaigns including our seasonal Ramadan and Qurbani campaigns.
## CAMPAIGN OF PROJECTS DURING THE YEAR:
## WATER FOR ALL
As part of its vision to provide clean and safe drinking water to the poor and needy in the third world, Minhaj Welfare Foundation has built more than 1430 clean water facilities during the year in rural and marginalised areas of the world reaching out to the poorest communities and ensuring people in those regions have long term access to clean drinking water.
In addition to MWF’s small and medium sized water projects, MWF is enhancing its way of ensuring more and more people have easy access to clean drinking water. Through the solar water project, high numbers of community members in poor areas will be able to benefit from simply opening the tap and filling their buckets with clean water.
MWF believes that by providing the source to clean drinking water via a safe water supply, health risks will be reduced, and it will be easier for people to engage in more productive activities like securing an income for their families and growing food.
## PAKISTAN PROJECTS: SUPPORTING A NUMBER OF PROJECTS IN THE YEAR
One of the main thematic and focus areas of Minhaj Welfare Foundation’s humanitarian and development work is in Pakistan. With donors’ help, MWF delivers a continual supply of lifesaving emergency aid (which includes Zakat, Sadqah and General donations) as well as
37
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **_____________________________________________**
supporting families with education, healthcare and livelihoods. The key programme sectors that Minhaj Welfare Foundation has covered over the year are:
1. CHILD SPONSORSHIP: Minhaj Welfare Foundation is aiding orphan and needy children through its child sponsorship programme (which includes financial, educational and living support). In addition, it is also supporting a number of Orphan care homes.
2. HELPFEED (FOOD SECURITY): providing food parcels, Iftar, hot meals during Ramadan, Rabiul-Awwal and other programmes throughout the year.
3. EDUCATION FOR ALL: Providing scholarships to students at schools and universities.
4. OUR FAMILIES: Rehabilitation and support for poor and needy families.
5. EMERGENCY RELIEF: Minhaj Welfare Foundation is always responding to all major disasters and crises in Pakistan, including the Covid-19 pandemic, for which a global campaign was launched in March 2020
6. INFRASTRUCTURE DEVELOPMENT (BUILDING): Establishing schools, dispensaries, halls, mosques, vocational training centres and safe spaces of learning.
7. HEALTHCARE: Supporting dispensaries, carrying out mobile clinics, covering the surgical costs for needy patients.
8. The FMRI Pakistan has a team of scholars who work on research and development of both traditional and contemporary books written in Urdu, Arabic and English. The books are then used by schools, Islamic seminaries, universities, students and teachers alike all over the world.
## MWF’S GLOBAL RESPONSE TO COVID19
In March 2020, we launched a global response to the Covid-19 pandemic. We provided food and relief packages to regions affected by the pandemic, with a focus on Pakistan and the third world. We could see that the need for aid in those poorer regions would increase greatly as those who could no longer work due to the pandemic slipped below the poverty line. Minhaj Welfare Foundation was there to help them in these turbulent times.
We also helped with the Covid-19 Response in the UK, taking calls from the vulnerable and those in self-isolation and fulfilling their needs. Our volunteers made shopping rounds for those who were unable to acquire essentials due to the pandemic. This effort began in March 2020 and continued into the next fiscal year (April 2020 onward).
During the Lockdown when there was a shortage of PPE especially with GP surgeries and smaller walk-in centres, MWF sourced PPE from local schools, colleges and distributors, MWF then donated the PPE to GP surgeries and smaller walk-in centres where there was a shortage.
## LET’S REVIVE: UK PROJECTS
Through the Let’s Revive project, MWF has been supporting various UK based educational, youth and research initiatives over the year. The two flagship projects include the Minhaj College
38
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
**_____________________________________________**
Manchester (MCM) and the Fareed-e-Millat Research Institute UK (FMRI).
We are a sponsor for Minhaj College Manchester (MCM). MCM is an accredited independent further education institution in Manchester providing access to formal college level qualifications alongside religious education. MWF has donated a member of their staff and provide facilities to MCM as well as donating towards the project.
The FMRI UK has a team of UK and Egypt based scholars who work on research and development of both traditional and contemporary books written in Urdu, Arabic and English. The books are then used by schools, Islamic seminaries, universities, students and teachers alike all over the world.
## HOPE FOR ROHINGYA
With more than a million Rohingya refugees settled in the world’s largest displacement camps in Cox’s Bazaar, Bangladesh, life for the Rohingya people is becoming difficult. The majority of these refugees, mainly women, children and the elderly are sleeping in the open air without shelter and basic essentials (such as food, water and sanitation).
MWF is committed in supporting the ongoing emergency relief efforts in Cox’s Bazaar through mobilising its local team that is currently assessing the situation. Our focus is to provide clean drinking water, food, medical supplies, and other essentials, as well as providing shelter to the refugees.
## BANGLADESH HELP FEED COMMUNITY KITCHEN
MWF set up a community kitchen in Bangladesh to help feed meals to thousands of families in need.
## QURBAANI - JUNE / AUGUST 2020
As part of its seasonal campaigns, to provide food to the poor and needy during the festive days of Eid (Hajj), MWF, through its network of volunteers and programme teams, supports with the distribution of food to families in need. More than 250,000 people benefitted from this HelpFeed programme.
## BAKERS CHALLENGE
In Ramadan MWF launched an activity, Bakers Challenge. The purpose was to bake a cake and sell the cake for charity. Through this activity MWF engaged numerous volunteers during the pandemic and raised funds for our HelpFeed Project.
39
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
**_____________________________________________**
## OUR GIRLS, OUR FUTURE PROJECT - APRIL 2020 - MARCH 2021
This initiative was to provide support to girls and young women from poor and deprived backgrounds in Pakistan in a safe and secure environment. The project is divided into phases, which includes a college which will facilitate 500 girls in more than 15 classrooms, providing them with accommodation, prayer area, mosque, and water and sanitation facilities. In addition, the project will include classes for older women to provide them training and skill sets to develop business ideas for them to become empowered.
## LEBANON: SUPPORTING ORPHAN AND NEEDY CHILDREN (SYRIAN AND PALESTINIAN CHILDREN)
On 4th August 2020 an explosion took place at the port in Beirut taking the lives of over 200 and injuring over 5000. Homes were demolished and livelihoods were destroyed. MWF set up a community kitchen to ensure people did not go hungry in the crisis.
## MWF T10 BLAST
In September 2020 MWF held a cricket tournament in London to raise funds for the ‘Change Lives with Clean Water – a Muharram Appeal’. MWF engaged 6 cricket teams to play in the tournament and volunteers to support us for food and drinks. This enabled us to reach a grassroot level audience.
## MILAD DESSERTS
In Rabi ul Awwal MWF launched an activity, Milad Desserts. The purpose was to make desserts and sell them for charity. Through this activity MWF engaged numerous volunteers during the pandemic and raised funds for our HelpFeed Project.
## EMBRACE THEIR CHILL 2020 UK
Across the UK volunteers collected food and donated to local food banks in the winter months as the usage of foodbanks increased exponentially due to the pandemic. MWF had collected food in over 10 cities and donated to numerous food banks and homeless shelters across the UK.
## WEIGH2GO
MWF hosted a challenge in the month of March in honour of Women Empowerment month. The purpose was to show our support towards ‘Our Girls Our Future’. MWF engaged over 50 volunteers and raised funds for the project.
40
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
**_____________________________________________**
## FINANCIAL REVIEW
## RESERVES POLICY
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equate to approximately three to five months unrestricted expenditure. This provides sufficient funds to cover management and administrative and other related costs. Unrestricted funds were maintained at approximately this level throughout the year.
## STRUCTURE, GOVERNANCE AND MANAGEMENT
## **GOVERNING DOCUMENT**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## RELATED PARTIES
The charity has a close relationship with its sister charity Minhaj-ul-Quran International, which is also a registered charity. Two of the charity’s trustees were also trustees of the Minhaj-ul-Quran International although both charities are independent in their activities and financial matters.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Registered Charity number 1084057 England & Wales, SC043566 Scotland
## **Principle Address**
30 Brindley Road City Park Manchester M16 9HQ
## **Trustees**
M Naveed M Q Rauf R A Raza S Mursaleen M K Mahmood (appointed 17.5.20)
41
## **Bankers**
Natwest Piccadilly Circus Branch PO Box 4QQ 19 Shaftesbury Avenue London W1A 4QQ
## **Auditors**
Hadleys & Co. Ground Floor Import Building 2 Clove Crescent London E14 2BE
## STATEMENT OF TRUSTEES RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:
- E select suitable accounting policies and then apply them consistently;
- E observe the methods and principles in the Charity SORP;
- E make judgements and estimates that are reasonable and prudent;
- E state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- E 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 which disclose with reasonable accuracy at any time the financial position of the charity and to 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.
Approved by order of the board of trustees on 23 December 2021 and signed on its behalf by:
.............................................
M K Mahmood - Trustee
## OPINION
We have audited the financial statements of Minhaj-Ul-Quran Welfare Foundation (the ‘charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
In our opinion the financial statements:
- E give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
- E have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and
- E 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 Auditors’ 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- E the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- E sufficient accounting records have not been kept; or
- E the financial statements are not in agreement with the accounting records and returns; or
- E we have not received all the information and explanations we require for our audit.
## RESPONSIBILITIES OF TRUSTEES
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## OUR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
We have been appointed as auditors 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 a Report of the Independent Auditors 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:
- E Enquiry of entity staff in tax and compliance functions to identify any instances of noncompliance with laws and regulations.
- E Reviewing minutes of meetings of those charged with governance.
- E Reviewing internal audit reports.
- E Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- E Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors, including “APB Ethical Standard - Provisions Available for Small Entities (Revised)”, in the circumstances set out in note 19 to the financial statements.
## USE OF OUR REPORT
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the 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, and also the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. 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.we have formed.
## Hadleys & Co.
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Ground Floor
Import Building 2 Clove Crescent London E14 2BE
Date: 22.12.2021
**STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 _____________________________________________**
|Notes
Unrestricted
funds (£)
Restricted
funds (£)
INCOME AND ENDOWMENTS FROM||||2021|2020|
|---|---|---|---|---|---|
||Notes|Unrestricted
funds (£)|Restricted
funds (£)|Total funds
(£)|Total funds
(£)|
|||||||
|Donations and legacies|2|2,765,715|-|2,765,715|2,652,326|
|Other trading activities|3|43,625|-|43,625|-|
|Investment income|4|136,266|-|136,266|156,263|
|**Total**||2,945,606|-|2,945,606|2,808,589|
|EXPENDITURE ON||||||
|Raising funds|5|235,817|-|235,817|247,177|
|CHARITABLE ACTIVITIES
6||||||
|Orphanages & Schools||227,314|-|227,314|251,304|
|Donations||179,126|-|179,126|270,003|
|Zakat||212,225|-|212,225|220,911|
|Qurbani||395,000|-|395,000|330,013|
|Water pumps||155,464|-|155,464|135,043|
|Emergency relief||143,965|-|143,965|87,931|
|Education||205,385|-|205,385|282,966|
|Staff costs||186,415|-|186,415|210,698|
|Date sales||67,611|-|67,611|-|
|Other||120,756|-|120,756|97,522|
|**Total Expenditure**||2,129,078|-|2,129,078|2,133,568|
|||||||
|NET INCOME||816,528|-|816,528|675,021|
|RECONCILIATION OF FUNDS||||||
|Total funds brought forward||4,946,537|-|4,946,537|4,271,516|
|TOTAL FUNDS CARRIED FORWARD||5,763,065|-|5,763,065|4,946,537|
**STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2021**
**_____________________________________________**
|FIXED ASSETS||||2021|2020|
|---|---|---|---|---|---|
||Notes|Unrestricted
funds (£)|Restricted
funds (£)|Total funds
(£)|Total funds
(£)|
|||||||
|Tangible Assets|12|429,984|-|429,984|440,927|
|Investment property|13|1,529,201||1,529,201|1,484,763|
|||1,959,185|-|1,959,185|1,925,690|
|CURRENT ASSETS||||||
|Debtors|14|378,896|-|378,896|384,427|
|Cash at bank and in Hand||3,558,627||3,558,627|2,899,005|
|||3,937,523|-|3,937,523|3,283,432|
|CREDITORS||||||
|Amount falling due within one year|15|(133,643)|-|(133,643)|(262,585)|
|||||||
|NET CURRENT ASSETS||3,803,880|-|3,803,880|3,020,847|
|TOTAL ASSETS LESS CURRENT||5,763,065|-|5,763,065|4,946,537|
|NET ASSETS||5,763,065|-|5,763,065|4,946,537|
|FUNDS|16|||||
|Unrestricted funds||||||
|General funds||||5,763,065|4,946,537|
|Total Funds||||5,763,065|4,946,537|
The financial statements were approved by the Board of Trustees and authorised for issue on 23 December 2021 and were signed on its behalf by:
______________ M K Mahmood - Trustee
**STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021**
## **_____________________________________________________**
|CASH FLOWS FROM OPERATING ACTIVITIES:||2021|2020|
|---|---|---|---|
||Notes|Total funds (£)|Total funds (£)|
|||||
|Cash generated from operations|1|712,796|876,491|
|Interest paid||(3,770)|(4,865)|
|Net cash provided by (used in) operating activities||709,026|871,626|
|CASH FLOWS FROM INVESTING ACTIVITIES:||||
|Purchase of tangible fxed assets||(5,368)|(9,604)|
|Purchase of investment property||(44,438)|(18,600)|
|Interest received||402|2,725|
|Net cash used in investing activities||(49,404)|(25,479)|
|||||
|Change in cash and cash equivalents in the reporting period||659,622|846,147|
|Cash and cash equivalents at the beginning of the reporting period||2,899,005|2,052,858|
|Cash and cash equivalents at the end of the reporting period||3,558,627|2,899,005|
**NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 March 2021**
**_____________________________________________________**
## 1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
||2021|2020|
|---|---|---|
||Total funds (£)|Total funds (£)|
|Net income for the reporting period
(asper the statement of fnancial activities)|816,528|675,021|
|Adjustments for:|||
|Depreciation charges|16,311|16,932|
|Interest received|(402)|(2,725)|
|Interestpaid|3,770|4,865|
|Decrease in debtors|5,531|77,927|
|(Decrease)/increase in creditors|(128,942)|104,471|
|Net cash provided by (used in) operating activities|712,796|876,491|
## 2. ANALYSIS OF CHANGES IN NET FUNDS
|2. ANALYSIS OF CHANGES IN NET FUNDS||||
|---|---|---|---|
||At 1.4.20 (£)|Cash Flow (£)|At 31.3.21(£)|
|Net Cash|2,899,005|659,622|3,558,627|
|Cash at bank and in hand|2,899,005|659,622|3,558,627|
|Total|2,899,005|659,622|3,558,627|
**NOTE TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2021**
**_____________________________________________________**
## 1. ACCOUNTING POLICIES
## BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## INCOME
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## EXPENDITURE
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
|Depreciation is provided at the
estimated useful life.|following annual rates in order to writ|
|---|---|
|Long leasehold|- 2% on cost|
|Fixtures and fttings|- 25% on reducing balance|
|Computer equipment|- 25% on reducing balance|
## INVESTMENT PROPERTY
Investment properties, for which fair value can be measured reliably without undue cost or effort, are measured at intervals with changes in fair value recognised in ‘net gains/(losses) on investments in the SoFA.
## TAXATION
The charity is exempt from tax on its charitable activities.
**NOTES TO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 March 2021**
**_____________________________________________________**
## FUND ACCOUNTING
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
## CREDITORS AND ACCRUALS
Creditors payable within one year and /or more than one year are recognised at the transactional price. Accruals are valued at the net cost, less any discounts offered.
## DEBTORS AND PREPAYMENTS
Debtors are receivable within one year and/or more than one year recognised at the transactional price. Prepayments are valued at the amount prepaid net of any discounts due.
## 2. DONATIONS AND LEGACIES
|2. DONATIONS AND LEGACIES|||
|---|---|---|
||2021 (£)|2020 (£)|
|Donations|2,703,369|2,522,806|
|Gift Aid|62,346|129,520|
||2,746,994|2,652,326|
|3.
OTHER TRADING ACTIVITIES
Dates Project
4.
INVESTMENT INCOME|||
||43,625
-||
||||
||2021 (£)|2020 (£)|
|Rents received|135,864|153,538|
|Deposit account interest|167|514|
|Gift Aid Interest|235|2,211|
||136,266|156,263|
## 5. RAISING FUNDS
## RAISING DONATIONS AND LEGACIES
||2021 (£)|2020 (£)|
|---|---|---|
|Fundraising and events costs|47,505|125,458|
|Advertising and postage costs|128,315|91,597|
|Staff costs|59,997|30,122|
||235,817|247,177|
## **6. CHARITABLE ACTIVITIES COSTS**
|**6. CHARITABLE ACTIVITIES COSTS**||||
|---|---|---|---|
||Direct Cost (£)|Support costs
(See note 6)|Total (£)|
|Orphan Care Home|227,314|-|227,314|
|Donations|179,126|-|179,126|
|Zakat|212,225|-|212,225|
|Qurbani|395,000|-|395,000|
|Water pumps|155,464|-|155,464|
|Emergency relief|143,965|-|143,965|
|Education|205,385|-|205,385|
|Staff costs|99,152|87,263|186,415|
||1,685,242|87,263|1,772,505|
## 7. SUPPORT COSTS
|7.
SUPPORT COSTS||||||
|---|---|---|---|---|---|
|||Finance (£)|Other (£)|Governance
costs (£)|Total (£)|
|Others resources expended|94,925|3,770|16,311|5,750|120,756|
|Staff costs|87,263|-|-|-|87,263|
||182,188|3,770|16,311|5750|208,019|
## 8. TRUSTEES’ REMUNERATION AND BENEFITS
Except for those already disclosed in the related party note, there were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
## Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31 March 2021 nor for the year ended
## 31 March 2020
## 9. STAFF COSTS
|9.
STAFF COSTS|||
|---|---|---|
||2021 (£)|2020 (£)|
|Wages and salaries|232127|221872|
|Social Securitycosts|14,194|14,966|
|Otherpension costs|4,657|4,288|
||250,978|241,126|
The average monthly number of employees during the year was as follows:
||2021|2020|
|---|---|---|
|Direct charitable operations|5|6|
|Fundraising and advertising|3|4|
|Administration|4|4|
||12|14|
No employees received emoluments in excess of £60,000.
## 10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
|INCOME AND ENDOWMENTS FROM|Unrestricted Fund (£)|Restricted Funds (£)|Total Funds (£)|
|---|---|---|---|
|||||
|Donations and legacies|2,652,326|-|2,652,326|
|Investment income|156,263|-|156,263|
|Total|2,808,589|-|2,808,589|
|EXPENDITURE ON||||
|Raising funds|247,177|-|247,177|
|CHARITABLE ACTIVITIES||||
|Orphanages & Schools|251,304|-|251,304|
|Donations|270,003|-|270,003|
|Zakat|220,911|-|220,911|
|Qurbani|330,013|-|330,013|
|Water pumps|135,043|-|135,043|
|Emergency relief|87,931|-|87,931|
|Education|282,966|-|282,966|
|Staff costs|210,698|-|210,698|
|Other|97,522|-|97,522|
|**TOTAL EXPENDITURE**|2,133,568|-|2,133,568|
|---|---|---|---|
|NET INCOME|675,021|-|675,021|
|RECONCILIATION OF FUNDS||||
|Total funds brought forward|4,271,516|-|4,271,516|
|TOTAL FUNDS CARRIED FORWARD|4,946,537|-|4,946,537|
## 11. DONATION DISCLOSURE BY PARTNER
During the year, the charity received the following sums from other partnering charities in the following countries. Each partner is a separate entity reporting locally in its respective country. The amount transmitted to the charity is to be applied to the charity’s projects.
|COUNTRY|2021 (£)|
|---|---|
|Norway|268,092|
|Netherlands|207,614|
|France|171,282|
|USA|96,236|
|Italy|80,890|
|Canada|75,741|
|Denmark|71,127|
|Other|96,859|
|**Total**|**1,067,840**|
## 12. TANGIBLE FIXED ASSETS
|12. TANGIBLE FIXED ASSETS|||||
|---|---|---|---|---|
|COSTS|Long Leasehold
(£)|Fixture &
Sittings (£)|Computer
Equipment (£)|Total (£)|
|At 1 April 2020|1,653,147|12,240|116,533|1,781,920|
|Additions|-|-|5,368|5,368|
|At 31 March 2021|1,653,147|12,240|121,901|1,787,288|
|DEPRECIATION|||||
|At 1 April 2020|1,235,820|4,745|100,428|1,340,993|
|Charge for year|9,066|1,876|5,369|16,311|
|At 31 March 2021|1,244,886|6,621|105,797|1,357,304|
|NET BOOK VALUE|||||
|At 31 March 2021|408,261|5,619|16,104|429,984|
|At 31 March 2020|417,327|7,495|16,105|440,927|
## 13. INVESTMENT PROPERTY
|13. INVESTMENT PROPERTY|13. INVESTMENT PROPERTY|
|---|---|
|FAIR VALUE||
|At 31 March 2020|1,484,763|
|Additions|44,438|
|At 31 March 2021|1,529,201|
|NET BOOK VALUE|NET BOOK VALUE|
|---|---|
|At 31 March 2021|1,529,201|
|At 31 March 2020|1,484,763|
## 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR|||
|---|---|---|
||2021 (£)|2020 (£)|
|Trade debtors|284,841|338,152|
|Other debtors|29,102|23,902|
|Prepayments and accrued income|64,953|22,373|
||378,896|384,427|
|15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR|||
||378,896|384,427|
|---|---|---|
|15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR|||
||2021 (£)|2020 (£)|
|Trade creditors|107,950|234,625|
|Other creditors|25,693|27,960|
||133,643|262,585|
||||
|||133,643|262,585|
|---|---|---|---|
|||||
|||Net movement||
|16. MOVEMENT IN FUNDS|At 1.4.20 (£)|in funds (£)|At 31.3.21 (£)|
|UNRESTRICTED FUNDS||||
|General Funds|4,946,537|816,528|5,763,065|
|TOTAL FUNDS|4,946,537|816,528|5,763,065|
|Net movement in funds, included in the above are as follows:||||
|TOTAL FUNDS
4,946,537|TOTAL FUNDS
4,946,537|816,528|5,763,065|
|---|---|---|---|
|Net movement in funds, included in the above are as follows:||||
|UNRESTRICTED FUNDS|Incoming
Resources (£)|Resources
expended (£)|Movement
in funds (£)|
|General Funds|2,945,606|(2,129,078)|816,528|
|TOTAL FUNDS|2,945,606|(2,129,078)|816,528|
|COMPARATIVES FOR MOVEMENT IN FUNDS
UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS|At 1.4.19 (£)|Net movement
in funds (£)|At 31.3.20
(£)|
|---|---|---|---|
|||||
||4,271,516|675,021|4,946,537|
||4,271,516|675,021|4,946,537|
Comparative net movement in funds, included in the above are as follows:
|UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS|Incoming
Resources (£)|Resources
expended (£)|Movement
in funds (£)|
|---|---|---|---|
|||||
||2,808,589|(2,133,568)|675,021|
||2,808,589|(2,133,568)|675,021|
A current year 12 months and prior year 12 months combined position is as follows:
|UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS|At 1.4.19 (£)|Net movement
in funds (£)|At 31.3.21
(£)|
|---|---|---|---|
|||||
||4,271,516|1,491,549|5,763,065|
||4,271,516|1,491,549|5,763,065|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|
are as follows:||||
|---|---|---|---|
|UNRESTRICTED FUNDS
General Funds
TOTAL FUNDS|Incoming
Resources (£)|Resources
expended (£)|Movement
in funds (£)|
|||||
||5,754,195|(4,262,646)|1,491,549|
||5,754,195|(4,262,646)|1,491,549|
## 17. CONTINGENT LIABILITIES
The Charity had no contingent liabilities as at 31 March 2021 nor at 31 March 2020.
## 18. RELATED PARTY DISCLOSURES
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard
102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.
The charity has a close relationship with its sister charity Minhaj-ul-Quran International, which is also a registered charity. Two of the charity’s trustees were also trustees of the Minhaj-ul-Quran International, although both charities are independent in their activities and financial matters.
Minhaj College Manchester is an Academy, which has been incorporated as a private company limited by guarantee. The charity is the foundation/sponsor for this Academy and has congruent objectives which assist in the educational charitable activities. During the year, the charity provided use of the Charity’s long leasehold property as offices for the Academy, as a donation in kind.
## 19. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
Minhaj
MINHAJWELFARE.ORC
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