Charity number 1103493
Dar Ul Hadith
Unaudited Report and Financial Statements for the year ended 31 December 2021
Contents Page Page 1 to 3 The report of the Trustees Page 4 Report of the Independent Examiner to the Trustees Page 5 to 6 Statement of Financial Activities Page 7 Balance Sheet Page 8 to 10 Notes to the Accounts Page 11 Schedule to the Statement of Financial Activities
Registered Office
2 Dudley Street, Manchester, M8 9DA
Dar Ul Hadith The report of the trustees
The trustees present their report and accounts for the year ended 31 December 2021.
Name, registered office and constitution of the organisation
The full name of the unincorporated charity is Dar Ul Hadith.
The non-profit organisation was formed on: 28/04/2004 The organisation is a registered charity. Number 1103493 The registered office is: 2 Dudley Street, Manchester, M8 9DA The telephone number is: 1613171481
The Objects of the organisation and how it is attempting to achieve the objectives
The charity is governed by a written constitution in which its objects are set out . The objectives and restrictions in the activities of the charity imposed by its governing documents are:
(a) to promote the furtherance of the knowledge of Allah (God) as portrayed in the authentic sources of Islam via structured teachings and education.
(b) to providing facilities for the local community in practicing Islam and improving mental health. (c) to provide charitable support by donating to other organisations or communities (national and international) in the furtherance of islamic education and fighting poverty.
Objectives achieved in the year, a review of activities and significant changes and developments and plans for the future
The board of trustees are satisfied with the performance of the organisation during the year and the position at 31st December 2021 and consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations.
The particular ways in which objectives have been achieved are describe below
Achievement of objectives and review of activities
The charity has achieved its objective of continuing to highlight the importance of sports and health education to the Community by:
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Addressing the under performance of education in youths.
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Encouraging activities and delivering food to the poorer members of the community.
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Carried out information sessions on immigration and legal matters. * Continued to operate "drop in information centre" for the local community.
Significant changes and developments and plans for the future
Important developments during the period included the support from local community.
The charity will continue to support the community and children who require education and help improve their environment through various activities advocated by Islam.
The organisational structure and how decisions are made
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. The charity constituted by the Trust Deed dated 26 December 2013
Trustees and local community meet regularly (the intention is quarterly) to discuss and plan objectives and implementation thereof. Matters of general concern are raised with all members .
Method of election of the members of the board of trustees
The members, who are Trustees are elected and co-opted each year under the terms of the Trust Deed.
Relationships with other groups, charities and individuals
The organisation works closely with the local authorities and Partnership Agencies around Manchester in order to address under representation and support the retention of ethnic minorities.
Details of related parties and transactions with related parties
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There were no transactions with related parties.
Transactions and Financial position
The financial accounts are set out on pages 6 to 11.
The financial statements have been prepared implementing the Charities Act 2011 issued by the Charity Commission for England and Wales and in accordance with the Financial Reporting Standard 102 and Charities SORP.
The trustees consider the financial performance by the organisation during the year has been satisfactor The Statement of Financial Activities show net outgoing resources for the year of a revenue expenditure nature of £404,696 (expenses) and net realised incoming resources of a £391,148 (income). The total reserves at the year end stand at £123,197 (accumulated funds c/f).
Availability and adequacy of assets of each of the funds
The board of trustees is satisfied that the organisation's assets are available and adequate to fulfil its obligations
Policies on reserves, investment policies and investment performance
The trustees have resolved to establish reserves to provide for future activities, and the trustees estimate the reserves shall cover any emergency for three to six months.
The grant making policies
The intention is to utilise the income from the funds to make grants and donations to various charities and causes known to the Trustees or in respect of which Trustees may receive specific applications. In certain cases capital sums may be distributed as well to good causes.
The major risks to which the organisation is exposed and reviews and systems to mitigate risks
The organisation is exposed to risks involved in fundraising because its activities are supported by the local community, grants and donations. There are no investment risks.
1. Financial
The organisation is open to the usual financial risks of any organisation, and it has introduced controls to minimise these risks, such as two signatures being required for payments from the bank account. In addition, the accounts are regularly explained to members of the charity and are open for member's inspection at any time.
2. Other
Work with the public is open to risks . The policy is that visits and counselling is done in pairs or
Legal Status
The organisation is an unincorporated charity governed by a written constitution adopted by its members. There are restrictions in the way it is governed and operates.
The members of the Board of Trustees during the year ended were:
1) David Anthony Stonehouse 2) Imadeddeen Almenghawi 3) Paul Richard M Maiden
We wish to thank all committee members and staff team who served the charity during the year.
Bankers
LloydsBarclays PLC, Bank, Manchester
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Independent Examiners under the Charities Act and details of their qualifications
Shahbaz Munir (FCCA) Adam & Co Accountancy Ltd Chartered Certified Accountants
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The trustees are required 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 these financial statements, the trustees are required to:
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Select suitable accounting policies and then apply them consistently; * make judgements and estimates that are reasonable and prudent; * observe the methods and principles in the Charities SORP;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the organisation will continue to operate.
The trustees are also responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the organisation and which enable them to acertain the financial position of the organisation and enable them to ensure that the financial statements comply with the requirements of applicable law and regulations (Charities Act 2011 and SORP). They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the provisions in the Charities Act 2011 and SORP applicable to charities subject to the small entities regime.
This report was approved by the board of trustees on
14/10/2022
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Dar Ul Hadith Independent Examiner's Report
Report of the Independent Examiner to the Trustees
on the accounts of the Charity for the year ended 31 December 2021
Respective responsibilities of trustees and examiner
The trustees (who are also the administrators of the charity for the purposes of charity law) are responsible for the preparation of the accounts.
The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities
Basis of independent examiner’s statement
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records.
It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters.
The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the
Independent Examiner's Statement
In connection with my examination, no matter has come to my attention to indicate that:
• accounting records have not been kept in accordance with Charities Act 2011
• the accounts do not accord with such records:
• where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements and, or are not consistent with the Charities SORP (FRS102)
• any matter which the examiner believes should be drawn to the attention of the reader to gain a proper understanding of the accounts.
Mr Shahbaz Munir (FCCA) Adam & Co Accountancy Ltd Chartered Certified Accountants This report was approved by the Independent Examiner on…........... 14/10/2022
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Dar Ul Hadith Statement of Financial Activities for the year ended 31 December 2021
| Notes Incoming Resources Grants,Legacies and Donations Total Incoming Resources Less: Costs of raising and generating funds Net Incoming Resources available for charitable applications A Less: Resources expended Management and administration of the charity Total Resources expended B Net Incoming Resources before C Transfers ( ie Total A minus Total B ) Gross Transfers between funds :- 13 Net Incoming Resources before revaluations and investment asset disposals Net Movement in funds (deficit)/surplus Total funds brought forward (previous years) Total funds carried forward (current years) |
Unrestricted Restricted Total Funds Funds Funds 2021 2021 2021 £ £ £ 391,148 - 391,148 391,148 - 391,148 353,632 - 353,632 37,516 - 37,516 51,064 - 51,064 51,064 - 51,064 (13,548) - (13,548) - - - (13,548) - (13,548) (13,548) - (13,548) 136,745 - 136,745 123,197 - 123,197 - - - |
Prior Period Total Funds 2020 £ 378,866 378,866 248,322 130,544 43,818 43,818 86,726 - 86,726 86,726 50,019 136,745 - |
|---|---|---|
The net movement in funds referred to above is the net incoming resources as defined in the Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales and is reconciled to the total funds as shown in the Balance Sheet as required by the said Statement.
All activities derive from continuing operations
The notes and schedule to the Statement of Financial Activities on pages 8 to 11 form an integral part of these accounts
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Dar Ul Hadith Statement of Financial Activities for the year ended 31 December 2021
Statement of Total Recognised Gains and Losses for the year ended 31 December 2021
| Excess of Expenditure over income before realisation of assets Net Movement in funds before taxation |
2021 2020 £ £ (13,548) 86,726 (13,548) 86,726 |
|---|---|
There were no recognised gains or losses for the year or the prior year that are not included above.
Movements in revenue and capital funds for the year ended 31 December 2021
| Revenue accumulated fund Accumulated fund brought forward Recognised gains and losses |
Unrestricted Restricted Total Last year Funds Funds Funds Total Funds 2021 2021 2021 2020 £ £ £ £ 136,745 - 136,745 50,019 (13,548) - (13,548) 86,726 |
|---|---|
| Closing Accumulated fund | 123,197 - 123,197 136,745 |
| Summary of funds Designated Funds 2021 £ Revenue funds - |
Unrestricted Restricted Total Last year Funds Total Funds 2021 2021 2021 2019 £ £ £ £ 123,197 - 123,197 136,745 |
| Total funds - |
123,197 - 123,197 136,745 |
IfThe funds transferred to capiupon winding up or dissolu ion t al reserve represent thoseof the company there rema nrestr i ctedanyfunds expendedassets , after the csatisfactionnumberof all debtsThe st a nd liabilities,tement of changes in resouthe assets rep r esentedces applied for fixed assets for organisation's usby the accumulated fund shall be transf e is shrred t o wn in thesome other charitable body or bodies notes to the accounts having objects similar to the objects of the charity.
The notes and schedule to the Statement of Financial Activities on pages 8 to 11 form an integral part of these accounts
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Dar Ul Hadith Balance Sheet as at 31 December 2020
| Notes Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand 11 Creditors: amounts due within one year 10 Net current assets Net assets Capital and reserves 12 Unrestricted revenue reserves Accumulated Funds |
2021 £ 38,262 6,093 84,954 91,047 (6,112) (6,112) 84,935 123,197 123,197 123,197 - |
2020 £ 35,911 8,636 93,498 102,134 (1,300) (1,300) 100,834 136,745 136,745 136,745 - |
|---|---|---|
The Board of Trustees are satisfied that the organisation is not required to have an audit by virtue of its level of turnover or by virtue of any requirement under its constitution or otherwise.
The Board of Trustees also acknowledge their responsibility for ensuring the organisation keeps proper accounting records in accordance with the requirements of the Charities Act 2011 as more fully set out under 'Trustees' Responsibilities' in the Report of the Trustees.
Approved for signature by the Management Committee on: 14/10/2022
The notes and schedule to the Statement of Financial Activities on pages 8 to 11 form an integral part of these accounts
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Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2021
1 Accounting policies
Accounts preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities Act 2011. The charity is entirely dependent on continuing donations and as a consequence the going concern basis is also dependent on the continuing donations.
The particular accounting policies adopted are set out below.
Accounting convention
The financial statements are prepared, on a going concern basis, accrual basis under the historical cost convention as modified by the revaluation of freehold land and buildings and fixed asset investments
Incoming Resources
Incoming resources are accounted for on a receivable basis deferred as described below where appropriate.
Charitable expenditure
Charitable expenditure includes all expenditure directly related to the objects of the charity and comprises the following :-
Costs of raising and generating funds
The costs of raising and generating funds includes fees incurred in respect of management fees.
Grants and donations payable in furtherance of the charity's objectives
Although there is no legal liability to pay any grant or donation to any organisation , and after approval, it is open to the board to withdraw an approval already granted , either before or after payment of a grant or donation,
Activities in furtherance of the charity's objectives
The costs of activities in furtherance of the charity's objectives represents the cost of goods and services and ancillary trading costs that have been incurred in charitable activities.
Management and administration of the charity
Management and administration costs represent expenditure incurred in the management of the charity's assets, organisational administration and compliance with charitable and statutory requirements.
2 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
3 Analysis of incoming resources and analysis of management and administration costs
The details required by the Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales (effective March 2005), are shown in the Statement of Financial Activities and also analysed on page 11.
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Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2021
| 4 Donations and income generated in connection with the Char 2021 £ Included in the various categories of incoming resources- SOFA 391,148 (See page 11 for analysis of sources of income). 5 Costs of activities in furtherance of the charity's objectives 2021 £ Total per analysis by expenditure in the schedule to the SOFA 404,696 (See page 11 for analysis of sources of expenditure). 6 Staff Costs and Emoluments 2021 Included in Costs of goods and services -books £ Gross salaries and wages 180,336 Pension contributions 1,457 181,793 Numbers of full time employees or full time equivalents 2021 Engaged on charitable activities 25 There were no employees with emoluments in excess of £50,000 per annum 7 Cost of Independent Examiner and accounting services 2021 £ Independent Examiner fees 650 |
2020 £ 378,866 2020 £ 378,866 2020 £ 119,225 641 119,866 2020 14 2020 £ 650 |
|---|---|
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Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2021
| 8 Tangible functional fixed assets Cost or valuation At 1 Jan.2021 Additions At 31 Dec.2021 Depreciation At 1 Jan.2021 Charge for the year At 31 Dec.2021 Net book value At 31 Dec.2021 At 31 Dec.2020 |
Leasehold improvement and building £ 64,255 2,585 66,840 34,198 6,344 40,542 26,298 30,057 |
Computer and office equipment £ 6,110 8,449 14,559 4,965 1,397 6,362 8,197 1,145 |
Plant and machinery £ 8,570 - 8,570 3,861 942 4,803 3,767 4,709 |
Total £ 78,935 11,034 89,969 43,024 8,683 51,707 38,262 35,911 |
|---|---|---|---|---|
All assets are used for direct charitable purposes and there are no inalienable or historic assets.
| 9a Analysis of assets and liabilities representing each of the charity's funds At 31 Dec.2021 Unrestricted Designated Restricted (Current year as per statements) funds funds funds £ £ £ Current Assets (Debtors + Bank) 84,954 - - Current Liabilities (Accruals) (6,112) - - 78,842 - - At 31 Dec.2020 Unrestricted Designated Restricted (Previous year as per statements) funds funds funds £ £ £ Current Assets (Debtors + Bank) 93,498 - - Current Liabilities (Accruals) (1,300) - - 92,198 - - 9b Debtors 2021 £ Trade debtors 6,093 10 Creditors: amounts falling due within one year 2021 £ Accruals and sundry creditors 652 PAYE/Salaries 5,460 6,112 11 Bank balance 2021 £ Balance as per bank statements and cash account 84,954 12 Capital and reserves 2021 £ Unrestricted revenue reserves 123,197 |
Total Funds £ 84,954 (6,112) 78,842 Total Funds £ 93,498 (1,300) 92,198 2020 £ 8,636 2020 £ 1,300 - 1,300 2020 £ 93,498 2020 £ 136,745 |
|---|---|
13 Related pary
The trustess confirm that there were no related party transactions during the period.
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Dar Ul Hadith
Schedule to the Statement of Financial Activities for the year ended 31 December 2021
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Unrestricted Restricted Total Unrestricted
Funds Funds Funds Total Funds
Incoming Resources 2021 2021 2021 2020
Grants,Legacies and Donations £ £ £ £
Donations 76,931 - 76,931 90,761
Quran School 48,224 - 48,224 43,567
Tuition Club 143,092 - 143,092 101,814
Saturday School 25,318 - 25,318 15,980
Zakatul Maal 14,405 - 14,405 8,081
Interest, books, Islamic studies and kids ramadan 5,488 - 5,488 989
Zakatul Fitr 2,018 - 2,018 1,786
Fidya 412 - 412 817
Adult Quran/Arabic class 29,895 - 29,895 24,514
Other revenue - - - 20,988
Government grants (furlough) 45,365 - 45,365 69,569
Total Grants,Legacies & Donations Received 391,148 - 391,148 378,866
Costs of activities in furtherance of the charity's objectives
Cost of fundraising activities - direct expenses 129,060 - 129,060 109,654
Grants payable in furtherance of the charity's objectiv 28,768 - 28,768 7,814
Support costs (salaries and wages) 180,336 - 180,336 119,225
Costs of goods and services -books 6,735 - 6,735 3,355
Depreciation of assets used for charitable purposes 8,733 - 8,733 8,274
353,632 - 353,632 248,322
Support costs of activities
Marketing of services - - - 544
Employee costs:
Pension contributions 1,457 - 1,457 641
Travel and subsistence - - - 282
Motor Expenses 2,793 - 2,793 766
Employer's NI - Admininstration 2,732 - 2,732 -
6,982 - 6,982 2,233
Premises costs:
Rates and water 646 - 646 370
Rents and room hire - - - 4,800
Light, Heat, and other Utilities 9,726 - 9,726 8,669
Cleaning 1,834 - 1,834 1,969
12,206 - 12,206 15,808
General administrative expenses:
Telephone and Fax 1,022 - 1,022 1,000
Postage, freight and courier 25 - 25 88
Stationery, subs. and printing 8,732 - 8,732 8,524
Software and IT consumables 3,325 - 3,325 4,130
Repairs and maintenance 13,049 - 13,049 5,856
Sundry expenses 307 - 307 411
Bank charges, stripe and paypal fees 3,795 - 3,795 2,808
30,255 - 30,255 22,817
Legal and professional costs:
Insurance - - - 1,947
Legal expenses/ transfers 971 - 971 363
Independent examiner's fee 650 - 650 650
1,621 - 1,621 2,960
Total spent on all activities 404,696 - 404,696 292,140
Surplus / (deficit) for the year (13,548) - (13,548) 86,726
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