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2020-08-31-accounts

REGISTERED COMPANY NUMBER: 04740215 (England and Wales) REGISTERED CHARITY NUMBER: 1108141

Report of the Trustees and

Unaudited Financial Statements

for the Period 1 September 2019 to 29 August 2020

for

Ebrahim Community College

Ebrahim Community College

Contents of the Financial Statements for the Period 1 September 2019 to 29 August 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Statement of Financial Position 8 to 9
Statement of Cash Flows 10
Notes to the Statement of Cash Flows 11
Notes to the Financial Statements 12 to 18
Detailed Statement of Financial Activities 19 to 20

Ebrahim Community College

Reference and Administrative Details for the Period 1 September 2019 to 29 August 2020

TRUSTEES Dr M M Ali University – Lecturer (resigned
22.10.19)
M Badrudduza – Teacher
(resigned 25.10.19)
M S Uddin – Manager
M M Uddin – Manager
Amjadur Rahman (appointed 21.12.20)
COMPANY SECRETARY M M Uddin
REGISTERED OFFICE 1A Turkey Street
Enfield
EN3 5TT
REGISTERED COMPANY 04740215 (England and Wales)
NUMBER
REGISTERED CHARITY 1108141
NUMBER
INDEPENDENT EXAMINER Quilfords Limited
Chartered Certified Accountants
113 Romford Road
London
E15 4LY

Page 1

Ebrahim Community College

Report of the Trustees

for the Period 1 September 2019 to 29 August 2020

EBRAHIM COMMUNITY COLLEGE

Report of the Directors and Trustees For the year ended 29th August 2020.

The trustees are pleased to present their annual directors' report for the year ending 29th August 2020 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Ebrahim Community College (EC) is a charitable company and is a leading provider of Traditional Islamic Sciences and Arabic language as well as providing a wide range of valuable community services.

EC aims and objectives are: -

1) To advance education, including education in the Islamic religion and such other courses for the benefit of the community as the trustees shall think fit.

2) To promote such other charitable purposes as may from time to time be determined.

STRATEGIC REPORT

Funds in deficit

The charity received income of £460,752 (2019: £934,593) during the year. After outgoing expenses of £440,082 (2019: £880,740), the charity was left with a surplus of £20,670 (2019: £53,853) for the year.

Page 2

Ebrahim Community College

Report of the Trustees

for the Period 1 September 2019 to 29 August 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

In April 2003 EC became a company limited by guarantee (number 4740215) governed by its Memorandum and Articles and registered as a charity on 17th February 2005. The overall management of finance is the responsibility of all the Directors/Trustees acting on the recommendations of the College Director and the senior management team. The Trustees and Management Committee meet regularly.

Public Benefit

The Trustees confirm that they have complied with their duty under the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Risk management

The trustees have a risk management strategy which comprises:

The Trustees constantly review risks relevant to the charity. Any risks identified are reported to the Trustees and decisions made on how to minimise risk. This year the charity has reviewed the main risk to its viability and operations due to the Covid 19 Pandemic.

The main risks considered this year are;

Covid 19 Pandemic

The Covid 19 Pandemic has had a big impact on the college in its ability to deliver on campus classes and host events. It has also had an impact on the rental income the college generated from subletting some of the premises to other tenants. There has also been an initial drop in student recruitment for the specialised full-time courses.

On Campus learning has now been replaced with online classes via zoom. Seminars have been replaced with webinars. Plans are in place to introduce a blended hybrid learning provision for the full-time courses where students will have the flexibility of attending face to face classes as well participating online via zoom/video conferencing. There will be some on campus learning

Qard Hasana (Interest Free) Loans

These are interest free unsecured loans from donors and well wishers who want to support the work of the college. Over the years the college has been taking on new loans and repaying old loans at the same time. Lenders typically lend anything from £1000.00 up to £50,000.00. Some charities also lend money in this way to other charities.

The outstanding loan book and debts of Ebrahim College are the main concern for the College as a going concern and its long-term viability. The trustees working on a long term strategy over the next ten years to repay all outstanding Qard Hasana Loans (currently around £1.28 million). The trustees have written to creditors who have requested urgent repayment of their loans. A verification process is being carried out to confirm all existing loans and to effectively manage communication and repayments with the lenders.

Page 3

Ebrahim Community College

Report of the Trustees

for the Period 1 September 2019 to 29 August 2020

The trustees have started raising money specifically for repayment of loans and have a target of raising around £50,000.00 this year. So far more than 50% of this target has been raised and a repayment plan has been set in place for some of the urgent loan repayment requests. Over the next 3 years a total of £200,000.00 is planned to be repaid subject to the trustees raising the target funds. No new loans will be taken on for operational shortfalls or other expenditure. This will start bringing the loan balance over the next few years.

Going Concern

COVID 19 has had an impact on the College being able to hold face-to-face classes/tuition, in-house events and rental income from tenants. All external events including fundraising have been postponed or cancelled during the pandemic, but the college continues to pursue its core work of delivering and providing high quality education to its students whilst ensuring the safety and wellbeing of its staff and students. COVID-19 had an initial financial impact on the college due to the drop in enrolments and students dropping out from courses. The college is now recovering from this impact as recruitment is improving and students are returning to courses.

Estates and Property

The College had been renting three separate premises on Greenfield Road. Due to the cancellation of face to face classes and operations moving online during the pandemic the trustees made the decision to negotiate surrendering and terminating the leases for these premises. This has significantly reduced the colleges annual operational deficit.

Achievements and performance

EC has achieved its aims and objectives and targets set for this year. Projects which have been running are; Arabic Intensive and Alimiyah - despite the pandemic and restructuring there were over sixty students on the specialised programmes.

The Dawrah programme has been postponed for this year due to the pandemic. Flexible Learning - Student numbers for flexible and part time classes are running at 70% capacity and recruitment is slowly starting to pick up to pre-covid levels.

Future plans

The trustees and management will focus in the coming year on increasing student numbers and introducing a hybrid delivery model. The trustees are looking to rent or lease smaller affordable premises in the E1 area in time for the launch of the new hybrid teaching model.

The qard hasan loans will be manage through a new system and the trustees will work with existing donors to increase the amount of loans that will be repaid.

Statement of Trustees' and Directors' Responsibilities

The charity trustees (who are also the directors of Ebrahim Community College for the purposes of company law) are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to: - Select suitable accounting policies and then apply them consistently;

Page 4

Ebrahim Community College

Report of the Trustees

for the Period 1 September 2019 to 29 August 2020

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small Company Provisions

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

On behalf of all trustees,

Mr M S Uddin (Chairperson and Director) Date:15/10/2021

Page 5

Independent Examiner's Report to the Trustees of Ebrahim Community College

Independent examiner's report to the trustees of Ebrahim Community College ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the period 1 September 2019 to 29 August 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Askir Ali ACCA Quilfords Limited Chartered Certified Accountants 113 Romford Road London E15 4LY

15 October 2021

Page 6

Ebrahim Community College

Statement of Financial Activities

for the Period 1 September 2019 to 29 August 2020

Period
1.9.19
to
29.8.20
Unrestricted Restricted
Total
fund
fund
funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
143,208
-
143,208
Other trading activities
3
317,544
-
317,544
Total
460,752
-
460,752
EXPENDITURE ON
Education and teaching
4
437,896
-
437,896
Governance costs
2,186
-
2,186
Total
440,082
-
440,082
NET INCOME
20,670
-
20,670
RECONCILIATION OF FUNDS
Total funds brought forward
(1,450,534)
-
(1,450,534)
TOTAL FUNDS CARRIED FORWARD
(1,429,864)
-
(1,429,864)		 Year Ended

31.8.19
Total
funds
£
264,835
669,758
934,593
832,581
48,159
880,740
53,853
(1,504,387)
(1,450,534)

The notes form part of these financial statements

Page 7

Ebrahim Community College

Statement of Financial Position 29 August 2020

Notes
CURRENT ASSETS
Cash at bank
CREDITORS
Amounts falling due within one year
9
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year
10
NET ASSETS/(LIABILITIES)
FUNDS
13
Unrestricted funds
TOTAL FUNDS		 29.8.20
£
11,303
(147,287)
(135,984)
(135,984)
(1,293,880)
(1,429,864)
(1,429,864)
(1,429,864)
31.8.19
£
-
(232,255)
(232,255)
(232,255)
(1,218,279)
(1,450,534)
(1,450,534)
(1,450,534)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 29 August 2020.

The members have not required the company to obtain an audit of its financial statements for the period ended 29 August 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

Page 9

The financial statements were approved by the Board of Trustees and authorised for issue on 1 September 2021 and were signed on its behalf by:

Mr M S Uddin (Chairperson and Director)

The notes form part of these financial statements

Page 9

Ebrahim Community College

Statement of Cash Flows

for the Period 1 September 2019 to 29 August 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating
activities
Cash flows from financing activities
New loans in year
Bounce back loan
Net cash provided by/(used in) financing
activities
Change in cash and cash
equivalents in the reporting
period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the
end of the reporting period
2		 Period
1.9.19
to
Year Ended
29.8.20
31.8.19
£
£
(74,380)
276,190
(74,380)
276,190
25,601
-
50,000
-
-
(286,108)
75,601
(286,108)
1,221
(9,918)
(9,918)
-
(8,697)
(9,918)

The notes form part of these financial statements

Page 10

Ebrahim Community College

Notes to the Statement of Cash Flows

for the Period 1 September 2019 to 29 August 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
(Decrease)/increase in creditors
Net cash (used in)/provided by operations
2.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due
within one year
Total cash and cash equivalents
3.
ANALYSIS OF CHANGES IN NET DEBT
At 1.9.19
£
Net cash
Cash at bank
-
Bank overdraft
(9,918)
(9,918)
Debt
Debts falling due after 1 year
(1,218,279)
(1,218,279)
Total
(1,228,197)

The notes form part of these financial statements

Page 11

Ebrahim Community College

Notes to the Financial Statements

for the Period 1 September 2019 to 29 August 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. In making this assessment, the trustees have considered the foreseeable future, a period in excess of 12 months. The charity has net liabilities of £1,441,167 and has made only a small surplus over the last two years (2020: £20,671, 2019: £53,853). Due to the net liabilities, there is a material uncertainty regarding the going concern status of the charity. However, the charity is in the process of engaging with creditors who have supported the charity through loans to request for the loans to be waived. In order to keep afloat, the charity have also ceased taking on any further debt and have increased fundraising efforts and appeals to donors to assist with the settlement of any outstanding debts.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 12

continued...

Ebrahim Community College

Notes to the Financial Statements - continued for the Period 1 September 2019 to 29 August 2020

2.
DONATIONS AND LEGACIES
Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
Other grants
3.
OTHER TRADING ACTIVITIES
Fees
Rental income		 Period
1.9.19
to
Year Ended
29.8.20
31.8.19
£
£
95,698
191,903
7,594
14,442
39,916
58,490
143,208
264,835
Period
1.9.19
to
Year Ended
29.8.20
31.8.19
£
£
39,916
58,490
Period
1.9.19
to
Year Ended
29.8.20
31.8.19
£
£
287,584
517,473
29,960
152,285
317,544
669,758

Page 13

continued...

Ebrahim Community College

Notes to the Financial Statements - continued

for the Period 1 September 2019 to 29 August 2020

4. EDUCATION AND TEACHING

Support costs Period
1.9.19
to
Year Ended
29.8.20
31.8.19
£
£
437,896
832,581

5. SUPPORT COSTS

Management
£
Raising donations and legacies
283,797
Other resources expended
-
283,797		 Administrative
Finance
expenses
£
£
-
154,099
686
-
686
154,099
Totals
£
437,896
686
438,582

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the period ended 29 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the period ended 29 August 2020 nor for the year ended 31 August 2019.

7. STAFF COSTS

STAFF COSTS
Period
1.9.19
to Year Ended
29.8.20
31.8.19
£ £
Wages and salaries 210,335 293,277
210,335 293,277
The average monthly number of employees during the period was as follows:
Period
1.9.19
to Year Ended
29.8.20
31.8.19
Support staff 30 33

No employees received emoluments in excess of £60,000.

Page 14

continued...

Ebrahim Community College

Notes to the Financial Statements-continued
for the Period 1 September 2019 to 29 August 2020
8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted
Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 206,345 58,490 264,835
Other trading activities 669,758 - 669,758
Total 876,103 58,490 934,593
EXPENDITURE ON
Education and teaching 774,091 58,490 832,581
Governance costs 48,159 - 48,159
Total 822,250 58,490 880,740
NET INCOME 53,853 - 53,853
RECONCILIATION OF FUNDS
Total funds brought forward (1,504,387) - (1,504,387)
TOTAL FUNDS CARRIED
FORWARD (1,450,534) - (1,450,534)
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.8.20 31.8.19
£ £
Bank loans and overdrafts (see note 11) 20,000 9,918
Trade creditors 50,000 102,000
Social security and other taxes 3,390 941
Accruals and deferred income 73,897 119,396
147,287 232,255

Page 15

continued...

Ebrahim Community College

Notes to the Financial Statements-continued to the Financial Statements-continued
for the Period 1 September 2019 to 29 August 2020
10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
29.8.20
31.8.19
£ £
Bank loans (see note 11) 50,000 -
Other loans (see note 11) 1,243,880 1,218,279
1,293,880 1,218,279
11. LOANS
An analysis of the maturity of loans is given below:
29.8.20
31.8.19
£ £
Amounts falling due within one year on demand:
Bank overdrafts 20,000 9,918
Amounts falling due between two and five years:
Bank loans - 2-5 years 50,000 -
Other loans - 2-5 years 1,243,880 1,218,279
1,293,880 1,218,279
12. ANALYSIS OF NET ASSETS BETWEEN FUNDS
29.8.20
31.8.19
Unrestricted Restricted
Total		 Total
fund fund funds funds
£ £ £ £
Current assets 11,303 - 11,303 -
Current liabilities (147,287) - (147,287) (232,255)
Long term liabilities (1,293,880) - (1,293,880) (1,218,279)
(1,429,864) - (1,429,864) (1,450,534)
13. MOVEMENT IN FUNDS
Net
movement
At
At 1.9.19
in funds
29.8.20
£ £ £
Unrestricted funds
General fund (1,450,534) 20,670 (1,429,864)
TOTAL FUNDS (1,450,534) 20,670 (1,429,864)

Page 16

continued...

Ebrahim Community College

Notes to the Financial Statements - continued for the Period 1 September 2019 to 29 August 2020

13. MOVEMENT IN FUNDS - continued

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

Incoming
Resources		 Movement
resources
expended
in funds
£ £ £
Unrestricted funds
General fund 460,752 (440,082) 20,670
TOTAL FUNDS 460,752 (440,082) 20,670
Comparatives for movement in funds
Net
movement
At
At 1.9.18
in funds
31.8.19
£ £ £
Unrestricted funds
General fund (1,504,387) 53,853 (1,450,534)
TOTAL FUNDS (1,504,387) 53,853 (1,450,534)
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources		 Movement
resources
expended
in funds
£ £ £
Unrestricted funds
General fund 876,103 (822,250) 53,853
Restricted funds
Restricted 58,490 (58,490) -
TOTAL FUNDS 934,593 (880,740) 53,853

Page 17

continued...

Ebrahim Community College

Notes to the Financial Statements - continued

for the Period 1 September 2019 to 29 August 2020

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 29 August 2020.

Page 18

Ebrahim Community College

Detailed Statement of Financial Activities for the Period 1 September 2019 to 29 August 2020



INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Grants
Other trading activities
Fees
Rental income
Total incoming resources
EXPENDITURE
Governance costs
Accountancy fee
Support costs
Management
Wages
Insurance
Repairs & maintenance
Telephone
Postage and stationery
Consultancy fees
Finance
Bank charges
Administrative expenses
Subscription
Venue hire
Light and heat
Carried forward		 Period
1.9.19
to
29.8.20
£
95,698
7,594
39,916
143,208
287,584
29,960
317,544
460,752
1,500
210,335
4,537
9,257
4,675
2,297
52,696
283,797
686
7,695
-
6,831
14,526		 Year
Ended
31.8.19
£
191,903
14,442
58,490
264,835
517,473
152,285
669,758
934,593
1,200
293,277
4,928
12,338
5,641
3,586
197,414
517,184
1,264
3,813
5,000
11,422
20,235

This page does not form part of the statutory financial statements

Page 19

Ebrahim Community College

Detailed Statement of Financial Activities

for the Period 1 September 2019 to 29 August 2020



Administrative expenses
Brought forward
Sundries
Event expenses
Premises costs
Educational resources
Project activity costs
Office & general running costs
Software licences
Total resources expended
Net income		 Period
1.9.19
to
29.8.20
£
14,526
3,014
5,221
116,569
9,737
-
5,032
-
154,099
440,082
20,670		 Year
Ended
31.8.19
£
20,235
3,412
-
295,664
16,673
13,131
6,673
5,304
361,092
880,740
53,853

This page does not form part of the statutory financial statements

Page 20