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2020-08-31-accounts

Charity number: 1090525

Markazul Uloom

Report of the Trustees and Unaudited Financial Statements

For the year ended 31 August 2020

Markazul Uloom Contents Page For the year ended 31 August 2020

Report of the Trustees 1 to 3
Independent Examiner's Report to the Trustees 4
Statement of Financial Activities 5
Statement of Financial Position 6
Notes to the Financial Statements 7 to 12
Detailed Statement of Financial Activities 13 to 14

Markazul Uloom Report of the Trustees

For the year ended 31 August 2020

The Trustees have pleasure in presenting their report and the financial statements for the charity for the year ended 31 August 2020. 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Blackburn is a large town in Lancashire, England. It lies to the north of the West Pennine Moors on the southern edge of the Ribble Valley, 9 miles (14 km) east of Preston, 20.9 miles (34 km) NNW of Manchester and is 9 miles (14 km) north of the Greater Manchester border.

Blackburn is bounded to the south by Darwen, with which it forms the unitary authority of Blackburn with Darwen.

Markazul Uloom accepts students from the age of eleven to twenty-three, providing a secondary and FE education for younger students as well as Islamic education at an advanced level. This financial year there was 142 girls and 40 boys at the institution.

In setting our objectives, and planning our activities, we have given careful consideration to Charity Commission's guidelines on public benefit. The trust runs the Markazul Uloom, an independent education institute for boys and girls, which is registered with the Department of Education and Skills (DfES). It combines a college of Higher Islamic Education and a secondary school. It offers secondary (GCSE)as well as Higher Islamic Education and caters for the 12 to 23 age group.

Students are increasingly encouraged to pursue education at A Level and British Universities. In view of this, the institution has built effective progression opportunities to Higher Education Institutes where former students of the Institution have completed Honours, Master's and Doctorate degrees in a wide range of disciplines. The trust aims to foster an awareness within students about their surroundings and society in an environment that is both conducive to their learning and moral welfare. The institution also aims to give students a sense of citizenship and a concern for human welfare and its values multi-culturalism within society. The school timetable provides subjects reflecting Islamic and secular education. Students study General Certificate of Secondary Education (GCSE).

At the moment there are no pupils with any special needs or learning difficulties. As education providers, the trust endeavours to provide all its pupils as many opportunities to experience and equip themselves with the seven areas of learning and essentials or any well considered curriculum, linguistic, mathematical, scientific, human and social skills, aesthetic, technological and physical education. The school prides itself in being an institute that offers a comprehensive Islamic Theology Course which equips its pupils to assume scholarly roles with their communities upon its completion. The school aims to connect the curricula as much as possible within the school, such that the teaching of the secondary curriculum is not divorced from Islamic concepts rather it is enhanced by introducing Islamic concepts. The school aims to ensure that the years spent at the school, facilitate pupils to attain primarily the highest levels of spiritual, moral, cultural and Islamic awareness and, in close conjunction with this, the highest levels of physical and intellectual achievement of which they are capable.

Objectives and aims

The trustees have considered the Charity Commision's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.

ACHIEVEMENTS AND PERFORMANCE

The trustees believe that there is always room for improvement in terms of the performance /education standard of the school.

Markazul Uloom is a unique community and an environment in which pupils can learn and experience a vast array of social and academic skills in a safe and highly organised school and endeavours to make pupils schooling highly fruitful and memorable. The school day is structured such that pupils utilise their time well and in a balanced manner. We are confident once the teaching standards are improved that the education provided equips our pupils to deal with the demand of adult life in a mature and responsible manner.

The Board has a current plan to maintain the current standard of acedemic achievements as measured by the external public examinations and independent value added criteria. The plans include collaboration and sharing of good practice between departments and to improve internal communications and management information systems, to continue to develop the curriculum facilities alongside many others.

The academic performance of the institution was fantastic this financial year with percentage range from 74% to 100%..

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Markazul Uloom Report of the Trustees Continued

For the year ended 31 August 2020

FINANCIAL REVIEW

The school's principal funding source is from school fees which amounted to £241,995 (2019: £276,696) a decrease from previous years as the school experienced COVID-19 impacts and a higher number of lower fee paying local students. The secondary source of income is from donations which amounted to £15,172 (2019: 72,451). The substantial decrease in donations is due to donor fatigue from higher previous years donations and COVID-19 impacts. The institution is actively engaging in fund raising for a proposed £3 million project to increase the school facilities. The Charity received £42,761 in government furlough and grant payments.

In terms of overheads, the current year costs are pretty consistent to last year with some expenses expected increases in line with general day to day management and minimum wage increases.

Overall there is a financial deficit of £28,345 in comparison to previous years surplus of £28,997 which in the main is an impact of reduction of school fees in the current financial year.

Reserves

It is the policy of the charity to maintain unrestricted funds at a level which equates to approximately 12 months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs. Unrestricted funds are maintained at above this level throughout the year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The trust is an unincorporated trust, constituted under a trust deed dated 5 October 2001 and is a registered charity, number 1090525.

The trust was established to promote the advancement of education and the advancement of Islamic faith particularly by establishing and operating an institution.

Recruitment and appointment of trustees

The trustees are appointed by the board of trustees. The principal for the time being of the institution if not otherwise a trustee shall be additional trustee ex-officio. The appointment of trustees is vested in the continuing trustees (excluding any retiring Trustees). The appointment of teacher's administrators and other persons required for the running of the Institution is in the hands of the principal. The trustees have responsibility for appointing a principal.

There are informal procedures for induction and training of new trustees. Trustees are also encouraged to attend external briefings and training courses.

The trustees may from time to time make such rules and regulations in their absolute discretion think fit for the management of the institution and may at any time vary such rules and regulations. At trustees meetings each term the trustee agree the area of activity for the trust, policies and performance.

REFERENCE AND ADMINISTRATIVE INFORMATION

Name of Charity Markazul Uloom Charity registration number 1090525 Principal address Park Lee Road Blackburn Lancashire BB2 3NY

Trustees

The trustees and officers serving during the year and since the year end were as follows:

Mr Mohammed Hanif Amla Mr Muhammad Bilal Bawa Mr Muhammad Yousuf Bawa Mr Salim H Sidat Mr Yunus Yakub Ravat Mr Muhammad Salman Bawa

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Markazul Uloom Report of the Trustees Continued For the year ended 31 August 2020

Independent examiners Adam & Co Accountants Adamson House 251 Derby Street Bolton Lancashire BL3 6LA Bankers Al Rayan Bank Plc 44 Hans Crescent Knightsbridge London SW1X 0LZ

Approved by the Board of Trustees and signed on its behalf by ............................................................................. 14 May 2021 Mr Muhammad Bilal Bawa

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Markazul Uloom

Independent Examiners Report to the Trustees

For the year ended 31 August 2020

I report to the trustees on my examination of the accounts of the charity for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity’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 examiners 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 by virtue of my membership of , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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.

Adam & Co Accountants Adamson House 251 Derby Street

Bolton Lancashire BL3 6LA

14 May 2021

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Markazul Uloom

Statement of Financial Activities

For the year ended 31 August 2020

Notes
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Investments
4
Other income
5
Total
Expenditure on:
Raising funds
6
Charitable activities
7/8
Total
Net income/expenditure
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Unrestricted
funds
£
15,172
256,164
6,029
42,761
320,126
(345,481)
(2,986)
(348,467)
(28,341)
1,967,071
1,938,730
2019
£
72,451
292,181
6,281
-
370,913
(339,287)
(2,629)
(341,916)
28,997
1,938,074
1,967,071

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Markazul Uloom Statement of Financial Position

As at 31 August 2020

Notes
Fixed assets
Tangible assets
13
Current assets
14
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
16
Net assets
The funds of the charity
Unrestricted income funds
17
Total funds
£
2020
1,857,425
1,857,425
14,253
565,829
580,082
(54,900)
525,182
2,382,607
(443,885)
1,938,722
1,938,730
1,938,730
£
2019
1,805,714
1,805,714
13,244
651,925
665,169
(44,927)
620,242
2,425,956
(458,885)
1,967,071
1,967,071
1,967,071

The financial statements were approved and authorised for issue by the Board and signed on its behalf by:

Mr Muhammad Bilal Bawa Trustee

14 May 2021

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Markazul Uloom Notes to the Financial Statements For the year ended 31 August 2020

1. Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets and 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 (FRS 102), and the Charities Act 2011.

Markazul Uloom 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 note(s).

Tangible fixed assets

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Land and buildings 40% Straight line Plant and machinery 15% Reducing balance Motor vehicles 15% Reducing balance

2. Income from donations and legacies

Unrestricted funds
Donations received
ncome from charitable activities
Unrestricted funds
Chartiable Activity 1
School Fees
Other Income
2020
£
15,172
15,172
2020
£
241,995
14,169
256,164
256,164
2019
£
72,451
72,451
2019
£
276,696
15,485
292,181
292,181

3. Income from charitable activities

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Markazul Uloom Notes to the Financial Statements Continued

For the year ended 31 August 2020

4. Investment income
Unrestricted funds
Income from investment
properties
5. Other income
Unrestricted funds
Other income 1
6. Expenditure on generating donations and legacies
Unrestricted funds
Support costs
7. Costs of charitable activities by fund type
Unrestricted funds
Support costs
8. Costs of charitable activities by activity type
Chartiable Activity 1
2020
£
6,029
6,029
2020
£
42,761
42,761
2020
£
345,481
345,481
2020
£
2,986
2020
£
2,986
2019
£
6,281
6,281
2019
£
-
-
2019
£
339,287
339,287
2019
£
2,629
2019
£
2,629

8 of 14

Markazul Uloom Notes to the Financial Statements Continued

For the year ended 31 August 2020

9. Analysis of support costs

Voluntary Income
Staff Wages
Premises Cost
Computer Cost
Telephone
Postage and Stationery
Books & School Trips
Repairs
Canteen
Cleaning
Governance costs
2020
£
242,676
48,802
5,347
1,933
6,307
16,076
661
199
1,158
25,308
348,467
2019
£
245,625
47,732
2,684
1,312
5,612
10,948
654
353
1,736
25,260
341,916

10. Net income/(expenditure) for the year

This is stated after charging/(crediting):

This is stated after charging/(crediting):
2020 2019
£ £
Depreciation of owned fixed assets 22,322 22,631

11. Staff costs

Total staff costs for the year ended 31 August 2020 were:

Salaries and wages
Social security costs
Admin Staff
Maintenance Staff
School Staff
2020
£
254,722
(12,046)
242,676
2020
5
1
50
56
2019
£
245,431
194
245,625
2019
4
1
53
58

9 of 14

Markazul Uloom Notes to the Financial Statements Continued

For the year ended 31 August 2020

12. Comparative for the Statement of Financial Activities

The comparative year values on the Statement of Financial Activites are for unrestricted funds.

13. Tangible fixed assets

Cost or valuation
At 01 September 2019
Additions
At 31 August 2020
Depreciation
At 01 September 2019
Charge for year
At 31 August 2020
Net book values
At 31 August 2020
At 31 August 2019
Land and
buildings
£
1,983,572
73,954
2,057,526
216,606
16,502
233,108
1,824,418
1,766,966
Plant and
machinery
£
65,675
80
65,755
52,683
1,957
54,640
11,115
12,992
Fixtures and
fittings
£
230,930
-
230,930
205,174
3,863
209,038
21,892
25,755
Total
£
2,280,177
74,034
2,354,211
474,463
22,322
496,786
1,857,425
1,805,714

14. Debtors

Amounts due within one year:
Prepayments and accrued income
Other debtors
2020
2019
£
£
5,678
9,118
8,575
4,126
14,253
13,244

15. Creditors: amounts falling due within one year

Trade creditors
Other creditors
2020
£
57,653
(2,753)
54,900
2019
£
51,102
(6,175)
44,927

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Markazul Uloom Notes to the Financial Statements Continued For the year ended 31 August 2020

16. Creditors: amounts falling due after more than one year

Other creditors 2020
£
443,885
443,885
2019
£
458,885
458,885

17. Movement in funds

Unrestricted Funds

General
General
Unrestricted Funds - Previous year
General
General
Balance at
01/09/2019
£
1,967,071
1,967,071
Balance at
01/09/2018
£
1,938,074
1,938,074
Incoming
resources
£
320,126
320,126
Incoming
resources
£
370,913
370,913
Outgoing
resources
£
(348,467)
(348,467)
Outgoing
resources
£
(341,916)
(341,916)
Balance at
31/08/2020
£
1,938,730
1,938,730
Balance at
31/08/2019
£
1,967,071
1,967,071

Purpose of unrestricted Funds

General

It provides the resources necessary to sustain the day-to-day activities and thus pays for all administrative and operating expenses.

18. Analysis of net assets between funds

Unrestricted funds
General
General
Tangible
fixed assets
Net current
assets /
(liabilities)
Creditors >
one year
Net Assets
£
£
£
£
1,857,425
525,182
(443,885)
1,938,722
1,857,425
525,182
(443,885)
1,938,722

11 of 14

Markazul Uloom Notes to the Financial Statements Continued

For the year ended 31 August 2020

Previous year
Unrestricted funds
General
General
Tangible
fixed assets
Net current
assets /
(liabilities)
Creditors >
one year
Net Assets
£
£
£
£
1,805,714
620,242
(458,885)
1,967,071
1,805,714
620,242
(458,885)
1,967,071

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Markazul Uloom Detailed Statement of Financial Activities For the year ended 31 August 2020

INCOME AND ENDOWMENT
Donations and legacies
Donations
Charitable activities
School Fees
Other Income
Investments
Investment Income - Al Rayyan
Other income
Government Grant
Total incoming resources
SUPPORT COSTS
Staff Wages
Staff costs - wages & salaries
Staff costs - social security costs
Premises Cost
Rates & Water
Insurance
Light and Heat
Computer Cost
Computer Cost
Telephone
Telephone
Postage and Stationery
Postage and Stationery
Books & School Trips
Books & School Trips
Repairs
Repairs
£
2020
15,172
15,172
241,995
14,169
256,164
6,029
6,029
42,761
42,761
320,126
(254,722)
12,046
(242,676)
(9,557)
(2,581)
(36,664)
(48,802)
(5,347)
(5,347)
(1,933)
(1,933)
(6,307)
(6,307)
(16,076)
(16,076)
(661)
(661)
£
2019
72,451
72,451
276,696
15,485
292,181
6,281
6,281
-
-
370,913
(245,431)
(194)
(245,625)
(7,664)
(2,619)
(37,449)
(47,732)
(2,684)
(2,684)
(1,312)
(1,312)
(5,612)
(5,612)
(10,948)
(10,948)
(654)
(654)

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This page does not form part of the statutory financial statements

Markazul Uloom

Detailed Statement of Financial Activities Continued

For the year ended 31 August 2020

Canteen
Canteen
Cleaning
Cleaning
Governance costs
Depreciation of owned assets
Legal fees
Total resources expended
Net Expenditure
(199)
(199)
(1,158)
(1,158)
(22,322)
(2,986)
(25,308)
(348,467)
(28,341)
(353)
(353)
(1,736)
(1,736)
(22,631)
(2,629)
(25,260)
(341,916)
28,997

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This page does not form part of the statutory financial statements