CHARITY REGISTRATION NUMBER: 1085713
ALULBAYT FOUNDATION Unaudited Financial Statements
31 March 2021
FAIRMAN DAVIS
Chartered accountants 6 Exhibition House Addison Bridge Place London W14 8XP
ALULBAYT FOUNDATION
Financial Statements
Year ended 31 March 2021
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 3 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 |
ALULBAYT FOUNDATION
Trustees' Annual Report
Year ended 31 March 2021
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.
Reference and administrative details
Registered charity name ALULBAYT FOUNDATION Charity registration number 1085713
Principal office
The trustees
Fadhil Mehdi Mr Mohsen Mousavi Mr Hamid Asmail Independent examiner Fairman Davis 6 Exhibition House Addison Bridge Place London W14 8XP
Structure, governance and management
Governing Documents
The organisation was registered as charity on 21st March 2001 and is governed by its Trust Deed dated 19th March 2000.
Organisation Structure
Alulbayt Foundation has a Management Committee which meets quarterly and is responsible for the strategic direction and policy of the charity.
Risk Management
The Management Committee has conducted a review of the major risks to which the charity is exposed to and continues to monitor this on an ongoing basis. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety off volunteers, clients and visitors to the centre. The procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
Objectives and activities
The charity's objective and its principal activity continue to be that of providing relief of poverty, sickness, distress and the advancement of education in particular amongst people who are of Islamic Faith.
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ALULBAYT FOUNDATION Trustees. Annual Report (CDnUnuedl Year ended 31 March 2021 Achl8vements and performanc• The Trustees consider thal the performance of the charity this year has been satisfactory. Financlal revlew Against the backdrop of limited resources the charity has continued lo plan or develop ils services. With the aid of sound financial management and the support of both ils staff and volunteers, the charity has achieved a satisfactory outcome for the year. wlh sutricienl resources lo continue its norfflal activities in the forthcoming years. Plans for future periods The Charity intends lo continue its activities in pursuance of ts defined objectives. The Iruslees, annual report wa$ 8pproved on ..i.gl.eiia .J2. and signed on behalf of the board of Iru$lees by.. Mr Mohsen Moijsavi Trustee
ALULBAYT FOUNDATION
Independent Examiner's Report to the Trustees of ALULBAYT FOUNDATION
Year ended 31 March 2021
I report to the trustees on my examination of the financial statements of ALULBAYT FOUNDATION ('the charity') for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Chari ties Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements 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
Since the charity ’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
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 the charity as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable 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.
Fairman Davis Independent Examiner
6 Exhibition House Addison Bridge Place London W14 8XP
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ALULBAYT FOUNDATION
Statement of Financial Activities
Year ended 31 March 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 4 | 221,277 | 176,797 | 398,074 | 298,094 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 221,277 | 176,797 | 398,074 | 298,094 | |
| ================================ | ================================ | ================================ | ================================ | ||
| Expenditure | |||||
| Expenditure on charitable activities | 5,6 | 216,795 | 188,848 | 405,643 | 309,331 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 216,795 | 188,848 | 405,643 | 309,331 | |
| ================================ | ================================ | ================================ | ================================ | ||
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| Net expenditure and net movement | in | ||||
| funds | 4,482 | (12,051) | (7,569) | (11,237) | |
| ================================ | ================================ | ================================ | ================================ | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 10,417 | 346,202 | 356,619 | 367,856 | |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 14,899 | 334,151 | 349,050 | 356,619 | |
| ================================ | ================================ | ================================ | ================================ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 6 to 13 form part of these financial statements.
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ALULBAYT FOUNDATION Statement of Financial Position 31 March 2021 2021 2020 Not• Flxed asset$ Tangible fixed assets 12 204,336 240.801 Current ass•ts Debtors Cash at bank and in hand 13 4,524 145.516 5,900 113,198 150.040 119,098 Credltors: amounts falllng duè wlthln on• year Ngt Current assgts 14 5,326 3,280 144,714 349.050 115,818 Total as$•ts less currènt liabilities 356,619 Not assets 349,050 356,619 Funds ¢f the charity Reslricled funds Unre51ricted funds 334,151 14,899 349,050 339,137 17,482 Total charlty funds 17 356.619 These financial statements were approved by the board of Iruslees and 8uthorised for issue on 28 January 2022, and are signed on behalf of the board by.. Mr Mohsen Mousavi TTUStee The notes on pages 6 to 13 fom part of the$* financial statements.
ALULBAYT FOUNDATION
Notes to the Financial Statements
Year ended 31 March 2021
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 75 Brondesbury Park, London, NW6 7AX.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It included both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the charity's constitutional and statutory requirements as well as costs linked to the strategic management of the charity.
Tangible assets
All fixed assets are initially recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
| Leasehold Property | - | 10% straight line |
|---|---|---|
| Fixtures & Fittings | - | 25% straight line |
| Motor Vehicles | - | 25% straight line |
| Equipment | - | 25% straight line |
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Impairment of fixed assets (continued)
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Financial instruments (continued)
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 163,322 | 176,797 | 340,119 |
| Grants | |||
| Government grant income | 57,955 | – | 57,955 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 221,277 | 176,797 | 398,074 | |
| ================================ | ================================ | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 195,475 | 102,619 | 298,094 |
| Grants | |||
| Government grant income | – | – | – |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| 195,475 | 102,619 | 298,094 | |
| ================================ | ================================ | ================================ |
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
5. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Charitable activity | 66,248 | 188,848 | 255,095 | |
| Support costs | 150,547 | – | 150,548 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| 216,795 | 188,848 | 405,643 | ||
| ================================ | ================================ | ================================ | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Charitable activity | 45,206 | 109,684 | 154,890 | |
| Support costs | 154,441 | – | 154,441 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| 199,647 | 109,684 | 309,331 | ||
| ================================ | ================================ | ================================ | ||
| Expenditure on charitable activities by activity type | ||||
| Activities | ||||
| undertaken | Support |
Total funds | Total fund | |
| directly | costs |
2021 | 2020 | |
| £ | £ | £ | £ | |
| Charitable activity | 255,095 | 147,672 |
402,767 | 307,591 |
| Governance costs | – | 2,876 | 2,876 | 1,740 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 255,095 | 150,548 |
405,643 | 309,331 | |
| ================================ | ================================ | ================================ | ================================ | |
| Analysis of support costs | ||||
| Analysis of | ||||
| support costs | ||||
| activity 1 | Total 2021 | Total 2020 | ||
| £ | £ | £ | ||
| Staff costs | 78,703 | 78,703 | 78,151 | |
| Premises | 61,235 | 61,235 | 67,244 | |
| General office | 7,734 | 7,734 | 7,065 | |
| Governance costs | 2,875 | 2,875 | 1,740 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| 150,547 | 150,547 | 154,200 | ||
| ================================ | ================================ | ================================ | ||
| Net expenditure | ||||
| Net expenditure is stated after charging/(crediting): | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 49,829 | 49,461 | ||
| ============================ | ============================ |
6. Expenditure on charitable activities by activity type
7. Analysis of support costs
8. Net expenditure
Net expenditure is stated after charging/(crediting):
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
9. Independent examination fees
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the independent examiner for: | ||
| Independent examination of the financial statements | 1,740 | 1,740 |
| ======================= | ======================= |
10. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2021 2020 £ £ Wages and salaries 75,600 74,000 Social security costs 1,584 2,747 Employer contributions to pension plans 1,519 1,404 ------------------------------------------------------- 78,703 78,151 ============================ ============================
The average head count of employees during the year was 4 (2020: 4).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
11. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
12. Tangible fixed assets
| Land and | Fixtures and | Motor | |||
|---|---|---|---|---|---|
| buildings | fittings | vehicles | Equipment | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 April 2020 | 479,877 | 3,948 | 5,900 | 15,863 | 505,588 |
| Additions | 10,000 | – | – | 3,364 | 13,364 |
| -------------------------------- | ----------------------- | ----------------------- | ---------------------------- | -------------------------------- | |
| At 31 March 2021 | 489,877 | 3,948 | 5,900 | 19,227 | 518,952 |
| ================================ | ======================= | ======================= | ============================ | ================================ | |
| Depreciation | |||||
| At 1 April 2020 | 239,079 | 3,946 | 5,899 | 15,863 | 264,787 |
| Charge for the year | 48,988 | – | – | 841 | 49,829 |
| -------------------------------- | ----------------------- | ----------------------- | ---------------------------- | -------------------------------- | |
| At 31 March 2021 | 288,067 | 3,946 | 5,899 | 16,704 | 314,616 |
| ================================ | ======================= | ======================= | ============================ | ================================ | |
| Carrying amount | |||||
| At 31 March 2021 | 201,810 | 2 | 1 | 2,523 | 204,336 |
| ================================ | ======================= | ======================= | ============================ | ================================ | |
| At 31 March 2020 | 240,798 | 2 | 1 | – | 240,801 |
| ================================ | ======================= | ======================= | ============================ | ================================ | |
| Debtors | |||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Other debtors | 4,524 | 5,900 | |||
| ======================= | ======================= |
13. Debtors
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
14. Creditors: amounts falling due within one year
2021 2020 £ £ Accruals and deferred income 1,620 1,620 Social security and other taxes 3,706 1,660 --------------------------------------------- 5,326 3,280 ======================= =======================
15. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £1,519 (2020: £1,404).
16. Government grants
The amounts recognised in the financial statements for government grants are as follows:
| 2021 | 2020 | 2020 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| Recognised in income from donations | and legacies: | ||||
| Government grants income | 57,955 | – | |||
| ============================ | ============== | ||||
| Analysis of charitable funds | |||||
| Unrestricted funds | |||||
| At | |||||
| At | 31 March | 20 | |||
| 1 April 2020 | Income | Expenditure | 21 | ||
| £ | £ | £ | £ | ||
| General funds | 10,417 | 221,277 | (216,795) | 14,899 |
|
| ============================ | ================================ | ================================ | ============================ | ||
| At | |||||
| At | 31 March | 20 | |||
| 1 April 2019 | Income | Expenditure | 20 | ||
| £ | £ | £ | £ | ||
| General funds | 21,654 | 195,475 | (199,647) | 17,482 |
|
| ============================ | ================================ | ================================ | ============================ | ||
| Restricted funds | |||||
| At | |||||
| At | 31 March | 20 | |||
| 1 April 2020 | Income | Expenditure | 21 | ||
| £ | £ | £ | £ | ||
| Restricted Funds | 346,202 | 176,797 | (188,848) | 334,151 |
|
| ================================ | ================================ | ================================ | ================================ | ||
| At | |||||
| At | 31 March | 20 | |||
| 1 April 2019 | Income | Expenditure | 20 | ||
| £ | £ | £ | £ | ||
| Restricted Funds | 346,202 | 102,619 | (109,684) | 339,137 |
|
| ================================ | ================================ | ================================ | ================================ |
17. Analysis of charitable funds
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ALULBAYT FOUNDATION
Notes to the Financial Statements (continued)
Year ended 31 March 2021
18. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 204,336 | 204,336 |
| Current assets | 20,225 | 129,815 | 150,040 |
| Creditors less than 1 year | (5,326) | – | (5,326) |
| ---------------------------- | -------------------------------- | -------------------------------- | |
| Net assets | 14,899 | 334,151 | 349,050 |
| ============================ | ================================ | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets | – | 240,801 | 240,801 |
| Current assets | 20,762 | 98,336 | 119,098 |
| Creditors less than 1 year | (3,280) | – | (3,280) |
| ---------------------------- | -------------------------------- | -------------------------------- | |
| Net assets | 17,482 | 339,137 | 356,619 |
| ============================ | ================================ | ================================ |
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