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2020-08-31-accounts

REGISTERED CHARITY NUMBER: 1096585

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

ASH SHIFA

SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

ASH SHIFA

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

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

ASH SHIFA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report with the financial statements of 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 Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

  1. To advance the religion of Islam through the dissemination of knowledge to Muslims and Non-Muslims.

  2. The advancement of education, in particular for young people of all religions and ethnic backgrounds.

  3. To help young people develop their physical, mental, spiritual and moral capacities so they mature as individuals with opportunities to excel in society.

Volunteers

Many volunteers give up their time to help out the charity, particularly at the weekends and the evenings to help with improving the school in all areas. We are greatly indebted to these volunteers for their commitment and support.

ACHIEVEMENT AND PERFORMANCE

Main activities

Over this year we were engaged in the following activities:

Seminars

We organised 20 seminars on various topics. These were open to all members of the community and attracted just over 2000 attendees. These seminars were focused on educating the attendees on specific aspects of faith and allowed them to ask questions. The topics varied to maximise interest however there was always an attempt to link the topics and the prevalent discussion points in the community, thus providing clarification on such matters and an opportunity to ask questions regarding contemporary matters.

Burdah Nights

These events allowed participants to engage with the Islamic traditions of poetry, singing and praise. As part of an attempt to diversify our provision, we organised such events that moved away from academic pursuits towards the artistic. This important facet of Islamic spirituality appealed to people of all ages and allowed them to engage in a much more relaxed environment.

Visit to Islamic Religious Sites

Our aim is to take a group of students to visit Islamic religious sites at least once in the year. This is to educate interested students in Islamic history. We understand field trips can help students to appreciate the history they study in the class room better and ignite further interest. This year we visited sites of interest in Istanbul, including historic Mosques, shrines, relics, palaces, historic artefacts and much more.

Retreats

We offer religious retreats to help with spiritual as well as academic achievement, typically lasting 5-7 days. The retreat allows students to disconnect from the distractions of everyday life and focus efforts on learning the Islamic sciences as well as working on spiritual development. Our provision aims to facilitate for all in the community, so sometimes the retreat is local and other times it is further away. There is also variety in terms of teaching staff, we tend to have a number of teachers with different teaching styles and variant backgrounds.

FINANCIAL REVIEW

Reserves policy

The General fund represents funds arising from past operating results. The trustees are satisfied that the balance of the fund will enable the charity to meet its objectives and will be able to look into possible other venues in regards to possible permanent replacement premises. The trustees have also examined the requirement to maintain reserves for the on going work of the charity and concluded that the most appropriate level is between 3 to 6 months of operational expenditure.

Page 1

ASH SHIFA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW Statement of Trustees' Responsibilities

The law 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 financial activities during the year and of its financial position at the year-end. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping 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 applicable law, regulations and trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention of fraud and other irregularities.

FUTURE PLANS

We plan to consolidate our current success and make our services available to a wider range of people. We also plan to look into further projects which will help us to fulfil our aims and objectives.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

Ash-Shifa Trust is constituted under a Trust Deed adopted on the 7th February 2003. Ash-Shifa Trust was registered as a charity with the charity commission on the 19th March 2003. (No : 1096585)

Organisational structure

The charity is managed by the trustees. The details of the current trustees are below:

S.Hussain (General Secretary) N.Rashid (Chairman) A.Ahmed

The appointment of trustees is governed by the trust deed.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1096585

Principal address

12 Country Mews Blackburn Lancashire BB2 7FJ

Trustees

S Hussain N Rashid A Ahmed

Page 2

ASH SHIFA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Independent Examiner

SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ N Rashid - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ASH SHIFA

Independent examiner's report to the trustees of Ash Shifa

I report to the charity trustees on my examination of the accounts of Ash Shifa (the Trust) for the year ended 31 August 2020.

Responsibilities and basis of report

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

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

  1. accounting records were not kept in respect of the Trust as required by section 130 of the 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.

Shamim Mahomed SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

Date: .............................................

Page 4

ASH SHIFA

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
28,359
Other income
3,515
Total
31,874
EXPENDITURE ON
Charitable activities
3
Provision of Services
55,978
Management & Administration
6
Total
55,984
NET INCOME/(EXPENDITURE)
(24,110)
RECONCILIATION OF FUNDS
Total funds brought forward
39,955
TOTAL FUNDS CARRIED FORWARD
15,845
Restricted
funds
£
-
-
-
-
-
-
-
-
-
2020
Total
funds
£
28,359
3,515
31,874
55,978
6
55,984
(24,110)
39,955
15,845
2019
Total
funds
£
142,592
-
142,592
136,329
9
136,338
6,254
33,701
39,955

The notes form part of these financial statements

Page 5

ASH SHIFA

BALANCE SHEET 31 AUGUST 2020

Unrestricted
Restricted
fund
funds
Notes
£
£
FIXED ASSETS
Tangible assets
6
144
-
CURRENT ASSETS
Debtors
7
99
-
Cash at bank and in hand
16,600
-
16,699
-
CREDITORS
Amounts falling due within one year
8
(998)
-
NET CURRENT ASSETS
15,701
-
TOTAL ASSETS LESS CURRENT
LIABILITIES
15,845
-
NET ASSETS
15,845
-
FUNDS
9
Unrestricted funds
TOTAL FUNDS
2020
Total
funds
£
144
99
16,600
16,699
(998)
15,701
15,845
15,845
15,845
15,845
2019
Total
funds
£
206
7,978
32,780
40,758
(1,009)
39,749
39,955
39,955
39,955
39,955

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

.............................................

N Rashid - Trustee

The notes form part of these financial statements

Page 6

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

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.

Administrative expenditure

Administrative expenditure comprises all costs incurred in running the charity, which can not be directly allocated, to the charity's projects or to fund-raising.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 10% on reducing balance Motor vehicles - 25% on reducing balance Computer equipment - 30% on reducing balance

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

General Funds

General Funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated Funds

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds, which are used in accordance with specific restrictions imposed by donors, or which have been raised by the charity for particular purposes. The cost of raising and administrating such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to financial statements.

Endowment Funds

Endowment Funds represent those assets, which must be held permanently by the charity, principally investments. Income arising from endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against part of the fund.

continued...

Page 7

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Gifts
Gift aid donations
2020
£
90
28,269
28,359
2019
£
-
142,592
142,592

continued...

Page 8

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

3. CHARITABLE ACTIVITIES COSTS

TOTAL RESOURCES EXPENDED

Generati
ng
Generati
ng
Provision
of
Support Management
Funds Services Costs & Administration
Total Total
2020 2019
£ £ £ £ £ £
Purchases 40,189 40,189 98,040
Rates & Water
Insurance
Light & Heat
Wages & Social Security 12,707 12,707 17,836
Rent
Telephone
Postage & Stationery
Advertising 1,067
Repairs & Renewals
Room Hire 2,012 2,012 18,561
Independent Examiners Fee 960 960 960
Legal & Professional
Travel & Subsistence
Motor Expenses 384
Cleaning
Training Costs
Subcontractors
Depreciation 56 6 62 89
Loss on sale of tangible fixed assets
Sundry Expenses 54 54 144
Bank Charges
55,978 6 55,984 137,107

continued...

Page 9

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
142,592
EXPENDITURE ON
Charitable activities
Provision of Services
136,329
Management & Administration
9
Total
136,338
NET INCOME
6,254
RECONCILIATION OF FUNDS
Total funds brought forward
33,701
TOTAL FUNDS CARRIED FORWARD
39,955
Restricted
funds
£
-
-
-
-
-
-
-
Total
funds
£
142,592
136,329
9
136,338
6,254
33,701
39,955

continued...

Page 10

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

6. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£ £ £ £
COST
At 1 September 2019 and 31 August 2020 - - 805 805
DEPRECIATION
At 1 September 2019 1 (1) 599 599
Charge for year - - 62 62
At 31 August 2020 1 (1) 661 661
NET BOOK VALUE
At 31 August 2020 (1) 1 144 144
At 31 August 2019 (1) 1 206 206
7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2020 2019
£ £
Tax reclaim 99 7,978
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2020 2019
£ £
Trade creditors (1) -
Social security and other taxes 148 162
Other creditors 131 127
Accrued expenses 720 720
998 1,009
9. MOVEMENT IN FUNDS
Net
movement At
At 1/9/19 in funds 31/8/20
£ £ £
Unrestricted funds
General fund 39,955 (24,110) 15,845
TOTAL FUNDS 39,955 (24,110) 15,845

continued...

Page 11

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 31,874 (55,984) (24,110)
TOTAL FUNDS 31,874 (55,984) (24,110)
Comparatives for movement in funds
Net
movement At
At 1/9/18 in funds 31/8/19
£ £ £
Unrestricted funds
General fund 33,701 6,254 39,955
TOTAL FUNDS 33,701 6,254 39,955

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
142,592
142,592
Resources
Movement
expended
in funds
£
£
(136,338)
6,254
(136,338)
6,254
Resources
Movement
expended
in funds
£
£
(136,338)
6,254
(136,338)
6,254
6,254

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1/9/18 in funds 31/8/20
£ £ £
Unrestricted funds
General fund 33,701 (17,856) 15,845
TOTAL FUNDS 33,701 (17,856) 15,845

continued...

Page 12

ASH SHIFA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 174,466 (192,322) (17,856)
TOTAL FUNDS 174,466 (192,322) (17,856)

10. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2020.

Page 13

ASH SHIFA

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

INCOME AND ENDOWMENTS
Donations and legacies
Gifts
Gift aid donations
Other income
Sundry Receipts
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Pensions
Advertising
Purchases
Room Hire
Sundry Expenses
Accountancy
Motor Expenses
Computer equipment
Total resources expended
Net (expenditure)/income
2020
£
90
28,269
28,359
3,515
31,874
12,532
175
-
40,189
2,012
54
960
-
62
55,984
55,984
(24,110)
2019
£
-
142,592
142,592
-
142,592
16,985
110
1,066
98,040
18,561
144
960
384
88
136,338
136,338
6,254

This page does not form part of the statutory financial statements

Page 14