A Company limited by guarantee, Number 05137118 Registered Charity Number 1107723
Khidmat Centres
Annual Report and Financial Statements
For the year ended
31 March 2022
Khidmat Centres
Report and accounts for the year ended 31 March 2022
| Contents | Page |
|---|---|
| Charity and Company information | 1 |
| Statement of Directors'/Trustees' responsibilities | 2 |
| Independent Auditor's report | 3-4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the accounts | 7-10 |
| Schedule to the Statement of Financial Activities | 11-12 |
Khidmat Centres Charity and Company Information
| Trustees/Directors | Sher Azam MBE |
|---|---|
| Yousoof Mohammed Sidat | |
| Liaqat Hussain | |
| Khadim Hussain | |
| Javed Ashraf | |
| Secretary | Yousoof Mohammed Sidat |
| Auditors | Adam & Co Accountancy Limited |
| Chartered Certified Accountants | |
| First Floor, 1 Edmund Street | |
| Bradford | |
| West Yorkshire | |
| BD5 0BH | |
| Bankers | UBL |
| Unit 4, Cheetham Hill Shop, Centre | |
| 40 Bury Old Road | |
| Manchester | |
| M8 5EL | |
| Lloyds Bank | |
| Blackheath London | |
| Blackheath | |
| London | |
| SE3 9LH | |
| Registered office | 36 Spencer Road |
| Bradford | |
| West Yorkshrie | |
| BD7 2EU | |
| Charity number | 1107723 |
| Registered as a charity on 20 January 2005 | |
| Company number | 05137118 |
| Incorporated in England & Wales on 25 May 2004 |
1
Khidmat Centres
Statement of Directors/ Trustees' Responsibilities for the year ended 31 March 2022
The directors/ trustees are responsible for preparing the report and accounts in accordance with applicable law and regulations.
Company law requires the directors/trustees to prepare accounts for each financial year. Under that law the directors/trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors/trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors/trustees are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors/trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors/trustees are also responsible for the contents of the directors/trustees report, and the responsibility of the auditor in relation to the directors/trustees report is limited to examining the report and ensuring that, on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
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so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
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he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board of directors/trustees on ………..
……………………………. Mr Sher Azam MBE Director and Trustee
2
Khidmat Centres Independent auditor's report to the members of Khidmat Centres
We have audited the financial statements of Khidmat Centres for the year ended 31 March 2022 which comprise the Income and Expenditure Account, the Balance Sheet, the Statement of Total Recognised Gains and Losses and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard For Smaller Entities (FRS 102) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).
Opinion on the financial statements
In our opinion the financial statements:
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give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its profit for
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the year then ended;
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●have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and
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●have been prepared in accordance with the requirements of the Companies Act 2006.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the directors' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or
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the directors have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.
Other information
- The other information comprises the information included in the report and accounts, other than the accounts and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the directors’ report for the financial year for which the accounts are prepared is consistent with the accounts; and
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●the directors’ report has been prepared in accordance with applicable legal requirements.
3
Khidmat Centres Independent auditor's report to the members of Khidmat Centres
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the accounts are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the directors were not entitled to prepare the accounts in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
…………………………………. Mr S Munir FCCA First Floor (Senior Statutory Auditor) 1 Edmund Street for and on behalf of Bradford Adam & Co Accountancy Limited West Yorkshire Statutory Auditors BD5 0BH
Date: ………………
4
Khidmat Centres Statement of Financial Activities for the year ended 31 March 2022
| 2022 Unrestricted Notes £ Income resources Income and resources from generated funds Total Grants,Legacies & Donations Receiv 1 397,642 Other incoming resources Other income - Bank interest - Total incoming resources 397,642 cost of generating funds Fundraising trading - cost of goods and other costs Cost of charitable activities 391,062 Governance costs 1,550 Total resources expended 392,612 Net outgoing resources before transfers between funds 5,030 Gross transfers between funds - Net outgoing resources before Other recongnised gains and lossses 5,030 Other recognised gains and losses - Net movement in funds for the year 5,030 Net fixed assets carried forward 7 409,206 Net current assets carried forward 8 & 9 141,772 Total carried forward (including fixed assets) 550,978 |
2022 Restricted £ - - - - - - - - - - - - - - - - |
2022 Total £ 397,642 - - 397,642 - 391,062 1,550 392,612 5,030 - 5,030 - 5,030 409,206 141,772 550,978 |
2021 Total £ 326,732 - - 326,732 - 304,684 1,435 306,119 20,613 - 20,613 - 20,613 409,206 136,742 545,948 |
|---|---|---|---|
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 Commission 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.
Please see schedule to statement of financial activities for the analysis of income and expenditure.
The notes from page 9 form an integral part of these accounts.
5
Khidmat Centres Balance sheet as at 31 March 2022
| Notes Tangible assets Total fixed assets 7 Current assets Debtors and prepayments 8 Cash at bank and in hand Total current assets Current liabilities: amounts falling due within one year Creditors and accruals 9 Total current liabilities Net current assets / (liabilities) Total assets less current liabilities Creditors: amounts falling due after one year Net assets Capital and reserves account Capital (fixed assets) Restricted funds 10 Designated funds Unrestricted funds 10 |
2022 Unrestricted £ 409,206 61,098 116,578 177,676 35,904) ( 35,904) ( 141,772 550,978 - 550,978 409,206 - - 141,772 550,978 |
2022 Restricted £ - - - - - - - - - - - - - - - |
2022 Total £ 409,206 61,098 116,578 177,676 35,904) ( 35,904) ( 141,772 550,978 - 550,978 409,206 - - 141,772 550,978 |
2021 Total £ 409,206 3,445 139,328 142,773 6,031) ( 6,031) ( 136,742 545,948 - 545,948 409,206 32,620 - 104,122 545,948 |
|---|---|---|---|---|
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
The financial statements were approved at a meeting of the trustees and signed on their behalf by:
……………………………………….. Mr Sher Azam MBE Date: ………………
6
Khidmat Centres Notes to the Accounts for the year ended 31 March 2022
1 Accounting policies
Basis of accounting
The financial statements have been prepared in accordance with the Financial Reporting Standard 102 for Smaller Entities, and all other applicable accounting standards, as modified by the Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales, (revised June 2008). The accounts have been drawn up in accordance with the provisions of the Charities Act 2011 and the Companies Act 2006, and include the results of the charity's operations which are described in the Director/ Trustees' Report, all of which are continuing.
Insofar as the Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales, (revised June 2008) requires compliance with specific Financial Reporting Standards. The specific Financial Reporting Standards 102 have been followed.
Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP.
The charity has taken advantage of the exemption from the requirement to produce a cash flow statement.
The particular accounting policies adopted are set out below.
Accounting convention
The financial statements are prepared on a going concern basis, under the historical cost convention.
The charity is entirely dependent on continuing grant aid and as a consequence the going concern
Income
Donations and legacies are accounted for when received by the charity. Other income is accounted for on an accruals basis as far as is prudent to do so.
Grants
Revenue grants are recognised in the Statement of Financial Activities on receipt, subject to any required conditions being met or services being provided. Capital grants are recognised on receipt in the Statement of Financial Activities. This policy has been adopted to give a true and fair view as recommended by the SORP.
Taxation
As a registered charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
Depreciation
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings Nil % Office equipment 20% straight line
7
Khidmat Centres Notes to the Accounts for the year ended 31 March 2022
1 Fund accounting
Funds held by the charity are either:
Unrestricted general funds
These are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds
These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Designated funds
These are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
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 Surplus/ Deficit for the financial year
| Surplus/ Deficit for the financial year This is stated after crediting: Revenue turnover from ordinary activities and after charging: Depreciation of owned fixed assets Auditors' and accountants remuneration |
2022 £ 397,642 - 1,550 |
2021 £ 326,732 - 1,435 |
|---|---|---|
4 Statement that no expenses were paid to trustees or connected persons.
No expenses were paid to trustees or persons connected with them.
| 5 Staff Costs and Emoluments 2022 £ Gross Salaries 249,752 Employer's National Insurance 12,640 262,392 There were no fees or other remuneration paid to the trustees. There were no employees with emoluments in excess of £60,000 per annum. Total number of staff full time and part time 29 |
2021 £ 211,075 12,780 223,855 26 |
|---|---|
6 Trustees' remuneration
Neither the trustees nor any persons connected with them have received any remuneration, either in the current year or the prior year.
8
Khidmat Centres
Notes to the Accounts for the year ended 31 March 2022
| 7 Tangible fixed assets Asset cost, valuation or revalued amount At 1 April 2020 Additons At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Office Equipment £ - - - - - - - - |
Freehold Land and Builidngs £ 409,206 - 409,206 - - - 409,206 409,206 |
Total £ 409,206 - 409,206 - - - 409,206 409,206 |
|---|---|---|---|
This value is based on the buildings only because the land is owned by the local council. The trustees believe that the market value of the building is greater than cost and therefore have a policy of not to depreciate buildings.
IT Equipment and furniture are written of through the profit and loss 100% and therefore the charity does not include such items on the balance sheet.
| 8 Debtors Trade debtors and prepayments Accrued income 9 Creditors due within one year Trade creditors Accrued expenses (accounts and audit) Other creditors 10 Analysis of the Net Movement in Funds Net movement in funds from Statement of Financial Activities Net movement in funds available for current period Fixed assets balance for the period Current assets after current liabilities balance for the period |
2022 £ 51,941 9,157 61,098 2022 £ 11,856 1,550 22,498 35,904 2022 £ 5,030 5,030 409,206 141,772 550,978 |
2021 £ 3,445 - 3,445 2021 £ 1,869 1,435 2,727 6,031 2021 £ 20,613 20,613 409,206 136,742 545,948 |
|---|---|---|
9
Khidmat Centres Notes to the Accounts for the year ended 31 March 2022
11 Share Capital
The charity was incorporated under the Companies Act and is limited by guarantee, each member having undertaken to contribute such amounts not exceeding one pound as may be required in the event of the company being wound up whilst he or she is still a member or within one year thereafter.
12 Schedule to the Statement of Financial Activities
Please see next page for analysis of unrestricted and restricted income and expenditure. to comply with Charities Act 2011 and SORP.
13 Ultimate Control and Related Parties
The directors/ trustees are the ultimate controlling parties by virtue of charity's constitution. There were no related parties.
14 Going Concern
The directors/trustees expect the charity to continue trading for the next 12 months from the date of signing.
15 The registered office is located at:
36 Spencer Road Bradford BD7 2EU
16 The audit report is unqualified.
Senior statutory auditor: Mr S Munir (FCCA) Firm: Adam & Co Accountancy Ltd
10
Khidmat Centres
Schedule to the Statement of Financial Activities for the year ended 31 March 2022
| for the year ended 31 March 2022 | ||||
|---|---|---|---|---|
| **Unrestricted ** | Restricted | Total | Prior Period | |
| Funds | Funds | Funds | Total Funds | |
| 2022 | 2022 | 2022 | 2021 | |
| Income | £ | £ | £ | £ |
| Incoming Resources | ||||
| Day Care | 23,924 | - | 23,924 | 24,740 |
| Halal Food Project | 11,834 | - | 11,834 | 4,093 |
| Grant | 15,000 | - | 15,000 | 35,000 |
| MWIP / Penny Appeal | 45,884 | - | 45,884 | 10,880 |
| MHA | - | - | 7,030 | |
| QED | 23,613 | 23,613 | 19,303 | |
| HF Trust | - | - | 17,000 | |
| Learning Disability Project (LDP) | 167,399 | 167,399 | 148,988 | |
| Lloyds Bank Foundation | 33,664 | 33,664 | 33,004 | |
| Room / Hall Hire | 64,710 | - | 64,710 | 10,746 |
| Other income Total Grants,Legacies & Donations Received Expenditure Direct support costs of charity Gross wages and salaries Employers' NI/ PAYE/ pension contributions Travel, motoring and subsistence Marketing, promotion of services Total support costs of charity Management and administration costs |
11,614 397,642 203,942 12,640 6,134 3,960 226,676 |
- - - - - |
11,614 397,642 203,942 12,640 6,134 3,960 226,676 |
15,948 326,732 192,021 12,780 4,238 - 209,039 |
| Staff costs | ||||
| Salaries - Administrative staff | 45,810 | - | 45,810 | 19,054 |
| Book-keeping and Administrative support | 240 | - | 240 | 4,745 |
| 46,050 | - | 46,050 | 23,799 | |
| Other employee costs | ||||
| Training and welfare | 2,009 | - | 2,009 | - |
| 2,009 | - | 2,009 | - | |
| Premises Costs | ||||
| Rates, water and service charges | 4,383 | - | 4,383 | 2,352 |
| Lettings | - | - | 200 | |
| Insurance | 10,958 | - | 10,958 | 8,574 |
| Light and heat | 23,079 | - | 23,079 | 20,296 |
| Cleaning and waste services | 2,704 | - | 2,704 | 1,061 |
| Premises repairs and renewals | 11,747 | - | 11,747 | 10,854 |
| Security Costs | - | - | 870 | |
| 52,871 | - | 52,871 | 44,207 |
Continued to next page…...............
11
Khidmat Centres Schedule to the Statement of Financial Activities for the year ended 31 March 2022
| General administrative expenses: | ||||
|---|---|---|---|---|
| Telephone and internet | 7,661 | - | 7,661 | 4,565 |
| Stationery, printing and postage | 5,088 | - | 5,088 | 5,586 |
| Subscriptions | 3,025 | - | 3,025 | 2,619 |
| Equipment hire/ leasing | 1,215 | - | 1,215 | 5,657 |
| Computers and software | 4,481 | - | 4,481 | 235 |
| Bank charges | 264 | - | 264 | - |
| Sundry expenses | 1,070 | - | 1,070 | - |
| 22,804 | - | 22,804 | 18,662 | |
| Professional fees Legal and solicitors fees Consultancy fees |
10,419 10,570 |
- - |
10,419 10,570 |
1,440 - |
| 20,989 | - | 20,989 | 1,440 | |
| Other support costs Day care and LDP projects Events |
19,663 - |
- - |
19,663 - |
7,537 - |
| 19,663 | - | 19,663 | 7,537 | |
| Total administration costs of charity | 164,386 | - | 164,386 | 95,645 |
| Total Support costs | 391,062 | - | 391,062 | 304,684 |
| Governance costs, not direct management functions inherent in funds, service delivery and programme or project work Auditors and accountants remuneration 1,550 Other governance costs - |
generating - - |
1,550 - |
1,435 - |
|
| Total governance costs | 1,550 | - | 1,550 | 1,435 |
| Net Surplus/ (deficit) for the year | 5,030 | - | 5,030 | 20,613 |
12