Charity number 1103493
## Dar Ul Hadith Unaudited Report and Financial Statements for the year ended 31 December 2023
## **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 2023.
## **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 _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 2023 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:
* Addressing the under performance of education in youths.
* Encouraging activities and delivering food to the poorer members of the community.
- Carried out information sessions on immigration and legal matters.
## _**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**
There were no transactions with related parties.
1
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## **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 satisfactory The Statement of Financial Activities show net outgoing resources for the year of a revenue expenditure nature of £440,255 (expenses) and net realised incoming resources of a £461,620 (income). The total reserves at the year end stand at £102,503 (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
_We wish to thank all committee members and staff team who served the charity during the year._
## **Bankers**
LloydsBarclays PLC, Bank, Manchester
2
## **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:
- 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;
* state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
- 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
26/09/2024
3
**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 2023**
## **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 Act, and to state whether particular matters have come to my attention.
## **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
## **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…............ 26/09/2024
4
## **Dar Ul Hadith Statement of Financial Activities for the year ended 31 December 2023**
|**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**
**2023**
**2023**
**2023**
**£**
**£**
**£**
461,620
-
461,620
**461,620**
**-**
**461,620**
366,604
-
366,604
95,016
-
95,016
73,651
-
73,651
73,651
-
73,651
**21,365**
**-**
**21,365**
-
-
-
21,365
-
21,365
21,365
-
21,365
81,138
-
81,138
**102,503**
**-**
**102,503**
-
-
-|**Prior Period**
**Total Funds**
**2022**
**£**
395,501
**395,501**
368,881
26,620
68,679
68,679
**(42,059)**
-
(42,059)
(42,059)
123,197
**81,138**
-|
|---|---|---|
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**
5
**Dar Ul Hadith Statement of Financial Activities for the year ended 31 December 2023**
## **Statement of Total Recognised Gains and Losses for the year ended 31 December 2022**
|Excess of Expenditure over income before realisation of assets
**Net Movement in funds before taxation**|**2023**
**2022**
£
£
21,365
(42,059)
21,365
(42,059)|
|---|---|
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 2022**
|**Revenue accumulated fund**
Accumulated fund brought forward
Recognised gains and losses|**Unrestricted**
**Restricted**
**Total**
**Last year**
**Funds**
**Funds**
**Funds**
**Total Funds**
**2023**
**2023**
**2023**
**2022**
**£**
**£**
**£**
**£**
81,138
-
81,138
123,197
21,365
-
21,365
(42,059)|
|---|---|
|**Closing Accumulated fund**|**102,503**
**-**
**102,503**
**81,138**|
|**Summary of funds**
**Designated**
**Funds**
**2023**
**£**
Revenue funds
-|**Unrestricted**
**Restricted**
**Total**
**Last year**
**Funds**
**Total Funds**
**2023**
**2023**
**2023**
**2019**
**£**
**£**
**£**
**£**
102,503
-
102,503
81,138|
|**Total funds**
-|102,503
-
102,503
81,138|
IfThe funds transferred to capiupon winding up or dissolu ion **t** al reservof th **e** represent those restrcompany there rema n **i** ctedanyfunds expendedassets , after the csatisfactionnumberof all debts andThe statement of changes in resources applied for fixed assets for organisation's use is shown in theliabilities, the assets represented by the accumulated fund shall be transferred to some other charitable notes to the accountsbody or bodies 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**
6
## **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**|**2023**
**£**
25,754
6,871
70,751
77,622
(873)
(873)
76,749
102,503
102,503
102,503
-|**2022**
**£**
30,609
7,328
44,834
52,162
(1,633)
(1,633)
50,529
81,138
81,138
81,138
-|
|---|---|---|
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: 26/09/2024
**The notes and schedule to the Statement of Financial Activities on pages 8 to 11 form an integral part of these accounts**
7
**Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2023**
## **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.
8
**Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2023**
|**4**
**Donations and income generated in connection with the Charit**
**2023**
**£**
Included in the various categories of incoming resources- SOFA
461,620
_(See page 11 for analysis of sources of income)._
**5**
**Costs of activities in furtherance of the charity's objectives**
**2023**
**£**
Total per analysis by expenditure in the schedule to the SOFA
440,255
_(See page 11 for analysis of sources of expenditure)._
**6**
**Staff Costs and Emoluments**
**2023**
_Included in Costs of goods and services -books_
**£**
Gross salaries and wages
179,268
Pension contributions
110
179,378
**Numbers of full time employees or full time equivalents**
**2023**
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**
**2023**
**£**
Independent Examiner fees
650
650|**2022**
**£**
395,501
**2022**
**£**
395,501
**2022**
**£**
212,178
468
212,646
**2022**
25
**2022**
**£**
650
650|
|---|---|
9
## **Dar Ul Hadith Notes to the Accounts for the year ended 31 December 2023**
|**8**
**Tangible functional fixed assets**
**Leasehold**
**improvement**
**and building**
**Computer**
**and office**
**equipment**
**Plant and**
**machinery**
**Total**
**Cost or valuation**
**£**
**£**
**£**
**£**
At 1 Jan.2023
66,840
14,559
8,570
89,969
Additions
1,378
-
-
1,378
**At 31 Dec.2023**
**68,218**
**14,559**
**8,570**
**91,347**
**Depreciation**
At 1 Jan.2023
45,332
8,001
6,027
59,360
Charge for the year
4,790
1,311
132
6,233
**At 31 Dec.2023**
**50,122**
**9,312**
**6,159**
**65,593**
**Net book value**
**At 31 Dec.2023**
**18,096**
**5,247**
**2,411**
**25,754**
At 31 Dec.2022
21,508
6,558
2,543
30,609
**9a**
**Analysis of assets and liabilities representing each of the charity's funds**
**At 31 Dec.2023**
**Unrestricted**
**Designated**
**Restricted**
**Total**
_(Current year as per statements)_
**funds**
**funds**
**funds**
**Funds**
**£**
**£**
**£**
**£**
Current Assets (Debtors + Bank)
77,622
-
-
77,622
Current Liabilities (Accruals/ paye)
(873)
-
-
(873)
76,749
-
-
76,749
**At 31 Dec.2022**
**Unrestricted**
**Designated**
**Restricted**
**Total**
_(Previous year as per statements)_
**funds**
**funds**
**funds**
**Funds**
**£**
**£**
**£**
**£**
Current Assets (Debtors + Bank)
52,162
-
-
52,162
Current Liabilities (Accruals/ paye)
(1,633)
-
-
(1,633)
50,529
-
-
50,529
**9**
**Debtors**
**2023**
**2022**
**£**
**£**
Trade debtors
6,871
5,801
**9b**
**Debtors**
**2023**
**2022**
**£**
**£**
Trade and sundry debtors
6,871
7,328
**10**
**Creditors: amounts falling due within one year**
**2023**
**2022**
**£**
**£**
PAYE/NI and wages unpaid
293
983
Accruals and sundry creditors
580
650
873
1,633
**11**
**Bank balance**
**2023**
**2022**
**£**
**£**
Balance as per bank statements and cash account
70,751
44,834
**12**
**Capital and reserves**
**2023**
**2022**
**£**
**£**
Unrestricted revenue reserves
102,503
81,138
All assets are used for direct charitable purposes and there are no inalienable or historic
assets.|**Leasehold**
**improvement**
**and building**
**£**
66,840
1,378
**68,218**
45,332
4,790
**50,122**
**18,096**
21,508|**Computer**
**and office**
**equipment**
**£**
14,559
-
**14,559**
8,001
1,311
**9,312**
**5,247**
6,558|
**Plant and**
**machinery**
**£**
8,570
-
**8,570**
6,027
132
**6,159**
**2,411**
2,543|**Total**
**£**
89,969
1,378
**91,347**
59,360
6,233
**65,593**
**25,754**
30,609|
|---|---|---|---|---|
|||and there are no inalienable or historic|||
|||||**Total**
**Funds**
**£**
77,622
(873)
76,749
**Total**
**Funds**
**£**
52,162
(1,633)
50,529
**2022**
**£**
5,801
**2022**
**£**
7,328
**2022**
**£**
983
650
1,633
**2022**
**£**
44,834
**2022**
**£**
81,138|
## **13 Related pary**
The trustess confirm that there were no related party transactions during the period. 10
## **Dar Ul Hadith**
## **Schedule to the Statement of Financial Activities for the year ended 31 December 2022**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted
Funds Funds Funds Total Funds
Incoming Resources 2023 2023 2023 2022
Grants,Legacies and Donations £ £ £ £
Donations 108,861 - 108,861 75,553
Quran School 56,655 - 56,655 51,597
Tuition Club 172,902 - 172,902 160,216
-
Saturday School 40,043 40,043 38,455
Zakatul Maal 23,208 - 23,208 13,673
-
Interest, books, Islamic studies and kids ramadan 4,401 4,401 3,498
Zakatul Fitr 2,113 - 2,113 1,361
Fidya 988 - 988 583
Adult Quran/Arabic class 20,841 - 20,841 20,726
- - -
Other revenue (summer school) 1,400
-
Government grants (furlough and gift aid) 31,608 31,608 28,439
-
Total Grants,Legacies & Donations Received 461,620 461,620 395,501
Costs of activities in furtherance of the charity's objectives
-
Commissions payable (Stripe and paypal fees) 2,727 2,727 4,295
Fundraising publicity 19 - 19 -
-
Cost of fundraising activities - direct expenses 155,116 155,116 126,137
-
Grants payable in furtherance of the charity's objective 14,829 14,829 10,056
-
Support costs (salaries and wages) 179,268 179,268 212,178
-
Costs of goods and services -books 8,410 8,410 8,563
-
Depreciation of assets used for charitable purposes 6,235 6,235 7,652
-
366,604 366,604 368,881
Employee costs:
-
Employer's NI - Administration 5,038 5,038 6,274
Pension contributions 110 - 110 468
Travel and subsistence 29 - 29 845
-
Motor Expenses 6,330 6,330 7,701
-
11,507 11,507 15,288
Premises costs:
Rates and water 476 - 476 777
-
Light, Heat, and other Utilities 14,134 14,134 10,181
-
Cleaning 2,085 2,085 1,434
-
16,695 16,695 12,392
General administrative expenses:
-
Telephone and Fax 1,087 1,087 1,041
Postage, freight and courier 132 - 132 18
-
Printing, subs. and stationery 11,704 11,704 12,149
Software and IT consumables 5,516 - 5,516 4,331
-
Repairs and maintenance 26,323 26,323 13,978
Bank charges 37 - 37 -
-
44,799 44,799 31,517
Legal and professional costs:
Independent examiner's fee 650 - 650 650
- - -
Bookkeeping and other accounting costs 7,644
- - -
Legal expenses/ transfers 1,188
650 - 650 9,482
-
Total spent on all activities 440,255 440,255 437,560
-
Surplus / (deficit) for the year 21,365 21,365 (42,059)
**----- End of picture text -----**
11