A Company limited by guarantee, Number 05137118 Re9iStered Charity Numbèr 1107723 Khldmat Centres Annual Report and Flnancial Statements For the year ended 31 March 2023 Khidmat Centres Report and accounts for the year ended 31 March 2023 Contents Page Charity and Company Information Statemgnl of Directors.￿rUstees, rè$ponsiJilities Ind8pendenl AL¢dilorfs rewjrt 34 Slaternent of financial 8¢b"Vil￿3 Balance sheet Notes to the 8ccounls 7-10 Schedule lo the Stat8menl of Flnanci81 Activitses 11-12 Khidmat Centres Charity and Company Infomiatlon TrustèoslDlr•¢tors Sher Azam MBE Yousoof Moh8mmed Sidal Ltaqat Hussain Khadim Hussain Javed Ashfaf Secretary Yousool Mohamme(I Sthl Audltor8 Adam & Co Accountancy Limited Chartered Certified Accountsnts First Floor. 1 Edmund Street Bradford W&st Yorkshlfe BD5 OBH Bankern UBL Unil 4. Ch8ethom Hill Shcy. Cfrnlro 40 8tJry Old Road Man¢hesler M8 SEL Uoyjs Bank Bla¢khealh London Blackheath London SE3 9LH R•glstèr•d offle• 36 Spencer Road Bradford Wesl Yorkshri8 BD7 2EU Charlty number 1107723 Registered as a charty on 20 January 2C(15 Company number 05137118 Incorporated in Engl8nd & Wales on 25 May 2004 Khidmat Centres statement of Directorsl Trustees. Responsibilities for the year ended 31 March 2023 The director51 trustees arè resp(M)sible for preparing the rewt and 8ccknunts in accordance with applic8ble18w and regulations. Company law requires the directorshrusiees ￿ pxep8re accounts for each financi81 year. Under that law the directorsltrustges have elected to prepare the accounts in accordance Uniled Kingdtsm Generally Accepted Accounting Pr￿tICè (United Kingdom Accounting Standards and applicable lawl. Under company law the direclorsltruslees must nDt approve the accounts unless they arè satisfied that they give a true and fair view of the state of affairs ol the company and of Ihe profit or loss of th8 company for that period. In prepariThJ thesè ￿￿nts. the direclorsllrustees arè r8quirèd select suilable accounting pol￿18$ and Ihen ap￿Y them consistenlly, • mak& judgements and 851ima¢es that are reasonable and pwdent. prepare thè accounts on the going corKem basis unless il is inappropriate to presumè that thè company will continuè in business. The dire¢lorsltruslees are responsible lor ke•pirrfJ adequ8le accounting records that are sufficiènt lo Show and explain the companls trarssactions and disch)se wllh reasonablè ac¢uracy at any time the financial position of the company and &nable them lo ensure that the accounls comply wlth th& Companies Act 2006. They ar8 also responsible lor saleguaiding the 855e15 of the company and hence for taking reasonable steps thè preVtrnli￿ and deiectKJn ol Iraud and other irregvlarilies. The directorsltrustees ar8 also r8srAwsible for thè conienls of t￿ dir8¢¢orsllruslees report. and Ihg responsibility ol the audilor in relation lo thè dir*ctor￿lruSteès repori is limited to examining the report and ensuring th81. on Ihe face of tha rèwl. Ihwe 8r8 no inconsistencies wlth thè figLJr85 disclosed In the financial slalements. Dl$¢lo$urè of Informatlon to audltors Each person who was a director al the lime Ihis report Was 8pproved c￿firmS that.. • so far as he is awa￿, Ihere is no relèvant audil intsmabon ol which the companls auditor is unaware., and he has taken all the steps that h& ought to havtr laken as a director in order lo makè himsè aw8r$ ol any rtrl¥vanl 8udit information and to eslablish Ihat thts compar¢¥s auditor is aware of that inforrnatron. Sm•ll ¢ompany provlslons This report has been prepared in accordancè wrfh the provisions in Part 15 01 the Companias Act 2006 appli¢abltr to companies subjecl to the small comp8niès regime. This report was apwoved by the board of directorsltrustee5 on ... Mry idat Director and Trustee Khidmat Centres Independent auditor's ￿pOrt to the members of Khidmat Centr•s We have audited the financial statements ol Khidmat Centres lor the year ended 31 March 2023 whlch ¢Otnprise the Income and Expenditure Account, the 8alance Sheet, Ine Statement ol Total Recognised Gains 8nd Losses and the related notes. The financTral reporting framework that has been applied In their preparation is applicable law and the Financial Reporting StaThJard For Small8r Entibes IFRS 1021 Iunited Klngdom Generally Accepte(l Accounting Practice applicable to Smaller Entits"esl. Oplnion on the flnancial statements In our opinion Ihe financ￿1 stslèments.. glve a truè and fair view of Ihe statè of the companys affaits as at 31 March 2023 and of ils profit for the year then enijed: . have bèen proporty prepared in a¢¢ordance with Ur4led KIWOM Generally Accepted Accounting Practice applicable lo srnal￿r Entit￿9,. and • h8ve been prepared In ac¢ord8nce wlh the requtrém￿ts of Compan*s Ad 20Ci8. B•sls ol oplnlon We conducted our audit in accordance vthh Inlémational Standards on Auditing IUKI IISAS IUKII and 8pplicable law. Our rèsponsibilities under Ihostr standards are furthèr described in the Auditor'$ responsibililies for the audil of the accounts S8cbon ol our ￿pOrt. We arè independent of the company In Bceordancè wilh the ethical reouirtrments that ar& relevant its our audit ol Ihe accounts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responSi￿1￿1es in accordance wth Ihesg requirements. W& bellw thal the audil evidencè w* hav8 obtained is sulfi¢i¢nt and appropriate lo provid8 8 basis for our opinion. Concluslons rèlating to golng cone•m Wo have nothing lo report In rèspect of the lo1￿1r￿j mattws in rela1￿n lo which thè ISAS {UKI require us to rtrport 19 you wher8.. Ihts direc¢ors' use of Ihe gCMn9 Concown basis ol ac￿ntity in the preparation ol tho accoun¢B is not appropriat8', or th& dirèctors have not disclosed in thè ¥ccounls any ￿￿tIfIed material uncertainties that may cast signiflcant doubl about the company's ability lo continu& to adopi the going concem basis ol aceounli for a period ol al least h¥8fve months from Ihe dale when the accounts are authorised lor issue. Other Informatlon Th8 Other informalH)n comprIs￿ th• information includ8d in thè report and accounts. olhèr Ihan the 8ccounl$ and our auditor's report th8r80n. The direclors are reskYJnsible lor the other Infortnation. Our opinion <)n the accounts not tovèr the other infomalH)n and. except to the extent otherwise trxplicitly stated in our rèport, we do not express any form of 8ssurance conclusitin Ihereon. In connection with our audit of the accounls. our ￿Sponsi￿"11fy is to read the other Infonnation and, in doing so, consider whèther the other informatson is matenally Inconsistenl wlh the account5 or ¢)ur kn￿edge obtained In the audit or otherwists 8ppears lo be malenally missl8led. 11 we Klentify such material inconsistencies or apparent material misstatements. we a￿ required to determine vthelher there is a malerial misslalement in the accounts or 8 materi81 misstatement ol the olher infomialion. If, based on Ihe work we have performèd, we conclude that thwe is a material misstatém8nl ol this other information, we are wuired to r&port that fact. We have nothlng to ￿[￿￿ in Ihrs reg8rd. Oplnlon on othèr matters prescrlbed by thè Companies kt 2006 In our opinion, based on the work undertaken in the Course of the audit.. the information given in the directors, report for Ihe financkil year for vthich Ihe accOu￿ts are prepared is onslstent wth the accounts," and the directtsrs, r8port has been prepared in ac(xJrdance wih appl￿ble legal requirements. Khidmat Centres Independent auditor's report to the members of Khldmat Centre$ Matters on which we a￿ required to report by exception In the ligh¢ ol the knowledge and understanding ol the company and ils environment obtained in the course of the audit, we have not identifie¢J material misslatements in the directors. report. We have nothing io report in respecl ol the m8tters in relation to vknich the Companiès Act 2006 requires us lo report io you if, in our opinion-. adequate accounting records havè not been kept. or ￿tUrnS adequatè for fAJr audit have not been received liom branches not visited by us,. or • the accounts are not in agreèmtrnl with Ihe acwjnling Teccrfds and rètvms,. or certaln dlsclosures of dIreCt￿S. remuneration specif*d by ar8 rot made. or • we havè not received all lh& infcmtion and explana11c￿ we wuire for audlt.. or tha diraclors wefe not enlilled to prepare the acc(MJnts in 8¢cordance with the small companiès regime and take advantagè of the small CoMpan￿s, exempiwffi5 in preparing the directors, rèport and from thè requirement to prepar& a strategic report. Re$ponslbllltles of directors As explained more fully In the directors. responsits'lilies slalemgnt, Ihe directors are responsible for the preparation ol the accounts and lor L*ing 5alisfied Ihat they give a truè 8nd fair view, and for such internal control as the directors dèteimlnè is necessary lo enable Ihe preporatstrn of accounts Ihat are free from material misslalemenl, whethèr duè to fraud or eThor. In preparing the accounts, the dire¢lors are responsible f￿ ass•sslng thÈ ¢omp8nYs ability to contlnue as a gtyng concern, disclosing. a6 applieablè, mait8rs reL8t8d lo wing concem ond using the goin9 concern basis of accounting unless the directors either Int￿d lo IMwid8te the c￿MpanY or lo caa$& opèration8, or have no alislic alternative bLrt to do so. Audllor's responslbiliti•$ lor thè audit ol the accounts Our objectives are lo obtain reasonable assurance about %thèth8r the 8¢¢wnts as a whole are free from material misstalemenl, vh*ther due lo Iraud or errof. and to 1$sutr an auditor's report that includes our opinion. Reasonable assurance is a high level ol assuranc&, but is rK)l 8 gvarantee that an audil conductèd in aeeord8nce with ISAS IUKI wll aNYays delect a material rnisslalerrent when il exists. Missl8ttrrnentS Can arisè frorn fraud or èrror and are c4)n$￿ere{j material il, indiwdually or in the aggregate, they coulj rèasonably be expgcted lo Influgnce the economic decisions ol users laktrn on the basis of these accounts. A furthar dèscriptIc￿ of our respon#ibililies for the audit ol the accounts is localed on the Financial Reporting Council's website al Www.fTC.org.uklauditorsrespc￿SIbIIIIies. This description forrns part ol our audilor's report. Mr S Munir FCCA (Senior Statutory Avditorl for and on behalf of Adam & Co Arxountancy Limiled ststutory Audibrs Firsl Fk¥x 1 Edmund Street Bradlord Wesl yo￿$hire BD5 {￿H Date.. 3110311 Khidmat Centres Statement of Financial Activities lor the year ended 31 March 2023 2023 2023 Unrestricted Restricted 2023 Total 2022 Totsl Note5 In¢omt ￿SOurceS Income and resour¢e$ g•norat•d funds Total Grants,Legacies & Donations Rece Other Incomlng tr&sour¢es Other income Bank intèrest Total In¢omlng resource8 298.979 .758 395,737 397.642 298.979 .758 395,737 397,642 ¢08t of gÈnÈratlng lundty Fundraising trading- cost of gcme and expenditure. The notes from page 9 form an integral part of these a¢x(xJnts. Khldmat Centres Balance sheet as at 31 March 2023 2023 2023 Unrestricted Rtstrficted 2023 To¢al 2022 Total Notes Tangible assets Total fixed 855els 409.206 409,206 409.206 Currgnt a$sets Debtors and prepayments Cash al bank and in han Totsl current aBBets 42,5(XJ 84,039 126.539 42,500 92,039 134.539 61.098 116,578 177,676 8,000 Current 11ablll￿e$. omounls fglllng due wlthln on• y•*r Creditors and accruals 14.202 14,202 1 14,2021 35,904 135,9041 Total ¢urrtrnt Il•bllltles 14.2021 Net Gurr•nt assèts I Illabllltles) 112.337 120,337 141,772 Total •ss•t$1oss ¢urrent Ilabllltles 521.543 8.(X)O 529.543 550,978 Crtrdltors.. •mount$ falllng due aft•r onè yèAr N•t 44$•ts 521.543 8,000 529.543 550.978 Capltal and r•s•rv•s •¢¢ount Capital Ilixed assetsl Rèstricled funds Design8ted funds Unreslricted funds 409.X 409,208 B,000 409.206 10 10 112.337 521,543 112,337 529.543 141,772 550,978 8.000 The 8¢counls have been prepareil in accordan￿ with the provi8ions in Part 15 of thè Cornp8nies Acl 2006 8ppIic8blè lo comp8nie5 Subject to Ihe small compan￿$ regine. The fin8nci818talemenls were approv¢d at a nwting ol Ihe Irustees and signed on their behalf by". Sidat Date: ,I,,{VL Khidmat Centres Notes to the Accounts for the year ended 31 March 2023 1 Accounting policies Basis of accounting The finaneL41 statements have been prepared in accordance wlh the Ftnancial Reporting Standard 102 for Smaller Entities, and all olher appluble a¢¢ounts"ng standards, as modified by the Statement of Recommended Practice for Accounting and Rewrbng issued by the Charity CommissK>nèrs for England & Wales, (revised June 2(X)81. The accounts have been drawn up in accordance with the provlsions of the Charities Act 2011 and the Compan*s Act 2006, and include the results ol the charitys operations which are described in the Directorl Trustees. Report, all of which are continuing. Insofar as the Statemènt ol Reeommèn(led Pwlice lor Acc￿nting and Reporting issued by the Charity Commissioners for England & Wales. Irevised June 21XJ81 requires compliance with specific Financial Reporting Standards. The S￿¢if1C Financial ReFK)rting Slandards 102 have been followed. Ailv8ntsge h8s been laken of Section 3%IS) of Th¢ Cornp8nies Acl 2C(6 to alh)w the formal ol the flnancial stalements lo be adapted lo reflecl the speckal naturè ol thè charftys operalksn and in order to comply with th& requir8menls of the SORP. The charity ha5 taken advantage of thè exempt￿• from the requirement to prc*Juce a cash flow slatement. The particular accounting poli&s ad¢¥led are sel out below. Accounting conventKJn Th¢ linancial stalemwls are prepared on a g￿ThJ concem bask%. under thè h￿torICal co81 Convention. The charity 18 èntirely dependent on continuing grant 8n¢J 88 a Consequence the going conrhm Incomè Donations and legacies are accounted lor vth&n by Ihe charity. Olher income is accounted for on an accruals basis as far as is pnjdenl lo (Jo so. Grants Revenue grants are recognised ststem8nl ol Fffiancial Aclivilies on feceipt, subject to any required conditions being mèt (x services being provided. Capital grants are recognised on receipt In the Ststem&nl of Fin8ncial Activities. This policy has b8•n Adgpted Io give a true and fair view as recommended by Ihe SORP. Taxatlon As a r&gistÈr8d ¢h8rity Ihe organF5alh)n benefils from rates ￿lef aThY 15 generally exempt from income tsx and capital gains tax bLtt nol from VAT. Irrecoverable VAT is induded in the cost ol thos8 items to which il ￿lat&s. D•pr•ciatlon Tangible fixed assets are Measu￿ at cost less ae¢umu181ive depreciat￿Tr and any accumulative impairment losses. Depreciation is provmjed on all iangible fixed assets. other than freehold land, al rates calculaled to write off the cosl. less estsmated residual value. ol each assel trvenly over its èxpèct8d uséful lrfe. as folh)ws'. Freehold buildings oirice equipment Nil% 20.￿ straight line Khidmat Centres Notes to the Accounts for the year ended 31 March 2023 1 Fund •ecountlng Funds hdd by the charity are either.. Unrestrict•d g•n•ral funds These are funds which can be use(1 in 8(tordarKe the charitsble objects al the discretion of Ihe trustees. R￿trIcted fund• These are funds that can only be used for partkular r¢s￿¢tell kxJfp08es wlhin the objects of Ihè charity. RestnctK)n$ arise when Sk)8cfif*d by Ihe dO￿r or when funds are raised lor particular restricted purposes. Dgslgnated funds These are funds sel aside by the trustees out of unrgstricte(I general fun¢Js lor specific future purposes or prO1￿tS. Further explanal¢on of the nature and purpose of &a¢h lund is ￿e￿Jded in the r￿te5 to the accL•unts. 2 Wlndlng up or dlssolutlon of th• eh•rlty 11 upon winding up or dissolulion ol the charity there remain any assets. after the satisfaction ol all d&bls and liablliti$s. Ihè assets rtrpresenied by Ihe accumulated fund shall be transferred lo some other charitsble body or bodies ha￿ThJ simiLar obJ'8Cts to the ¢harity. 3 Surplull D&flc5t for the flnanclal y•ar 2023 2022 redilin Rèvènue ILJrnover from ordinary activities 395,737 397.642 nd 8ft8r eh Depreciation ol owned lixed assèts Auditors. and accountants remuneration 1,785 1,550 4 Statement that no •xp•nstt w•r• poid to truste￿ or connected p•r80n8. No expenses were paid to trnste8s or persons connected them. S Staff Costs •nd Emoluments 2023 2022 Gross Saladès Employer's National Insurance 254.077 15,$50 269,627 249,752 12,640 262.392 There were rK) fees OT Other femuneralion paMI to the trust￿$. There were Th) employees wlh emoluments in excess of £60.IXK) annum. Total number of staff fvll time and part tsme 19 26 6 Trustees. rnmun•ratlon Nèither thè trustees nor any persons connected with them have r8(*ived any remuneration. eilher in the Current year or the prior year. Khidmat Centres Notes to the Accounts for the year ended 31 March 2023 7 Tanglble f5xed ass•ts Freehold Lènd and 8uilidngs Equipment Total Assèt cost. valu8tion or revalued amount Al 1 April 2022 Additons At 31 March 2023 409.206 409,206 409,206 409,206 Aeeumulat•d d¥pTrclatlon At 1 April 2022 Charge for the year Al 31 March 2023 Nèt book value At 31 March 2023 409,206 409,206 At 31 March 2022 409,206 409,206 This value is based on the buildings only be￿￿Se the land is ovm&d by thè loeal ￿UncIl. Th8 trustees beliève thai the market value of th& building is greater than cnst and Iherefore have a policy ol not lo d•prèci8tè bulk11r￿. IT Equipment and furnitur& a￿ written of Ihfough the profil and loss 1LX)% al￿ Iherelore Ihe charity doès not I￿aude such items ￿ the b8larts $he6t. 8 Debtors 2023 2022 Trade dabt￿S and prepayments Accrued Incoma 42.500 51,941 9.157 61,098 42.$00 9 Cr•dltor8 du• wlthln on• year 21123 2022 Tradè Creditors Accrued expens&s laccounts and 8udil) Other cre(litors 6,503 1.785 5,914 14,202 11,856 1,550 22,498 35,904 10 Analysls of tho Nèt Mov•m•nt in Fund$ 2023 2022 Met movement in funds Stslemenl of Financial Adfvili6s { 19,8551 19,855 5,030 Nel movement in funds avaiLable for ¢urrenl pefiod 5,030 Fixed asseis balance fix the ￿￿1(￿1 Current assets after current liabllities b8lance for the peric#J 409,206 120,337 409,206 141,772 529,543 550.978 Khidmat Centres Notes to the Accounts for the year ended 31 March 2023 11 Sharè Capltal The charity was incorporated under Iho Companies Acl and is limited by guarantee. each member having undertaken lo conlribute 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 memtxr ￿ wthin one year Ihereafl&r. 12 Schedule to thè Statom•nt of Flnanelal Actbvltl•s Please see ￿xI page for analFis ol unrèslrictéd and restricted Inccffie and exp8ndilur8. to comply wilh Charities Act 2011 and SORP. 13 UltSmat• Cantrol and R*l•t•d Part￿$ The dlr8¢tors/ trustees arè Ihe ultlmate ¢ontrollirrfJ parties by virtu& of ¢haWs constitution. There were no r81aled partiès. 14 Golng Conc•rn The director￿rusteeS expect the charlty to C(￿t￿￿O lrndltvJ lor Ihè n¢xt 12 months from th& dale of slgnlng. 15 Thè reglstered offlee l• lo¢•t•d #l: 36 Spencer Ro8d Bradford BD7 2EU 16 Th? audit report Is unquallfièd. Senior stslulory 8uditor'. Firm.. Mr S Munir IFCCA} Ad8m & Co Accr￿n￿ncY Ltd 10 Khidmat Centres Schedule to the Statement of Financial Activities for the year ended 31 March 2023 Unrestrictèd Restricted Funds Funds 2023 2023 Totsl Prior Period Funds Total Funds 2023 2022 Incomg Incomln Day Care Halal Food Project Grant DWP QED Barrow Cadbury Learning Disability Project ILDPI Lloyds Bank Foundation Room l Hall Hire Olher Income Resource 20.999 10.565 20,999 10,565 23,924 11,834 15,000 45,884 23,613 49,504 49,504 28,535 12.000 167,339 35,254 63,702 7.B39 96.758 395,737 28.535 12.OC(s 167.339 167,399 33,664 64,710 11,614 397,642 35,254 63.702 7.839 298.979 Total Grants.Legacles & Oonatlons Rèe•lv•d Expendllure Dlrect su Gros5 wages and Salaries Employers. Nll PAYEI p6n$ion conlrlbullons Travel. moioring and subsistence Morkating, promoilon ol sèrvlces Total BUPPOrt costs ol charlty 135.140 11.541 8.￿5 9.115 79.495 214,635 4,009 15,SSO 8,905 9,115 83.504 248,205 203,942 12,640 6,134 3,960 226.676 164,701 na Staff co$t8 Salaries- AdmlnLstralive staff Book-k88plro and Admini$traiNe support tlon costs 39,442 3,222 42.664 39,442 3,222 42,664 45,810 240 46.050 Oth•r •mploy•• Costs Training and welfare $46 546 546 S46 2,009 2,009 Premlses Costs Ratès. watèr 8nd saNl¢& chargtts Lellings Insurance Light and haat Cleaning and waste services Premises repairs and renewa18 Security Costs 3,719 3,719 4.383 15.405 23,697 2,164 16,127 15,405 23.697 2,164 16,127 10,958 23,079 2,704 11,747 61.112 61,112 52.871 Continued to next page.................. Khidmat Centres Schedule to the Ststement of Financial Activities for the year ended 31 March 2023 General admlnlstratlve expenses: Tèlephon8 and inlernèt Slalionery. printing and postage Subscriptions Equipment hirel leasing Cornpulers and 50ftware Bank charo8$ Sundry expense3 6.940 4,401 2.396 1,280 3.745 473 815 20,050 6,940 4,401 2,396 1.280 3,745 473 815 20,050 7,661 5,088 3,025 1.215 4.481 264 1.070 22.804 Prof•$$lon•l fees Legal and solicitors fees Consult8ncy fetrs 4.763 8,580 13,343 4,763 8,580 13,343 10,419 10,57 20.989 Other support Cost8 Day care. LDP and other prolects Other project costs 22.633 5.254 27,887 19.663 22.633 5.254 27,887 19,663 Total admlnlstratlon costs of charlty 160,348 5,254 185,602 164,386 Total Support costs 325,049 88,758 413,e07 391,062 Gtsvernance costs, not dlrect management functlons Inh•r•nt Sn g•n•rntlng funds, s•rvlc• (lèllvery and programmè or proJÈet work Auditors and accountants remuneration Other governance costs Total govfrrnanefr costs 1,785 1,785 1,785 1,785 N•t Surplusl {deflcFt} for th• yèar 27.8551 8.000 1 19,8551 5,030 12