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2021-08-29-accounts

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

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 29 August 2021

for Ebrahim Community College

Ebrahim Community College

Contents of the Financial Statements for the Year Ended 29 August 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Cash Flow Statement 10
Notes to the Cash Flow Statement 11
Notes to the Financial Statements 13 to 19
Detailed Statement of Financial Activities 20 to 21

Ebrahim Community College

Reference and Administrative Details for the Year Ended 29 August 2021

TRUSTEES M S Uddin Manager
M M Uddin Manager
Amjadur Rahman (appointed 21.12.20)
COMPANY SECRETARY M M Uddin
REGISTERED OFFICE 80 Greenfield Road
London
E1 1EJ
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 Year Ended 29 August 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 29 August 2021. The trustees have adopted the provisions of 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

Objectives and aims

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 £196,701 (2020: £460,752) during the year. After outgoing expenses of £160,685 (2020: £440,082), the charity was left with a surplus of £36,016 (2020: £20,670) for the year.

Page 2

Ebrahim Community College

Report of the Trustees

for the Year Ended 29 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

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 sub-letting 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 Year Ended 29 August 2021

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 hasana 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:

Page 4

Ebrahim Community College

Report of the Trustees

for the Year Ended 29 August 2021

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.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 09 May 2022 and signed on the board's behalf by:

Mr M S Uddin (Chairperson and Director)

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 year ended 29 August 2021.

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

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

09 May 2022

Page 6

Ebrahim Community College

Statement of Financial Activities for the Year Ended 29 August 2021

Period
1.9.19
Year Ended
to
29.8.21 29.8.20
Unrestricted Restricted
Total		 Total
fund fund funds funds
Notes
£		 £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 106,231 - 106,231 143,208
Other trading activities 3 90,470 - 90,470 317,544
Total 196,701 - 196,701 460,752
EXPENDITURE ON
Education and teaching 4 160,685 - 160,685 440,082
NET INCOME 36,016 - 36,016 20,670
RECONCILIATION OF FUNDS
Total funds brought forward (1,429,863) - (1,429,863) (1,450,533)
TOTAL FUNDS CARRIED FORWARD (1,393,847) - (1,393,847) (1,429,863)

The notes form part of these financial statements

Page 7

Ebrahim Community College

Balance Sheet

29 August 2021

Notes
CURRENT ASSETS
Cash at bank and in hand
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		 29.8.21
£
26,531
(152,664)
(126,133)
(126,133)
(1,267,714)
(1,393,847)
(1,393,847)
(1,393,847)
29.8.20
£
11,303
(147,288)
(135,985)
(135,985)
(1,293,878)
(1,429,863)
(1,429,863)
(1,429,863)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 29 August 2021 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 8

continued...

Ebrahim Community College

Balance Sheet - continued

29 August 2021

The financial statements were approved by the Board of Trustees and authorised for issue on 09 May 2022 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

Cash Flow Statement

for the Year Ended 29 August 2021

Year Ended
29.8.21
Notes
£
Cash flows from operating activities
Cash generated from operations
1
41,459
Interest paid
(67)
Net cash provided by operating activities
41,392
Cash flows from financing activities
New loans in year
-
Loan repayments in year
(26,164)
Net cash (used in)/provided by financing
activities
(26,164)
Change in cash and cash
equivalents in the reporting
period
15,228
Cash and cash equivalents at the
beginning of the reporting period
2
(8,697)
Cash and cash equivalents at the
end of the reporting period
2
6,531		 Period
1.9.19
to
29.8.20
£
147,958
-
147,958
75,600
-
75,600
223,558
-
(8,697)

The notes form part of these financial statements

Page 10

Ebrahim Community College

Notes to the Cash Flow Statement for the Year Ended 29 August 2021

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:
Interest paid
Increase in creditors
Net cash provided by operations
2.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
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 30.8.20
£
Net cash
Cash at bank and in hand
11,303
Bank overdraft
(20,000)
(8,697)
Debt
Debts falling due after 1 year
(1,293,878)
(1,293,878)
Total
(1,302,575)		 Period
1.9.19
Year Ended
to
29.8.21
29.8.20
£
£
36,016
20,670
67
-
5,376
127,288
41,459
147,958
29.8.21
29.8.20
£
£
5,361
-
21,170
11,303
(20,000)
(20,000)
6,531
(8,697)
Cash flow
At 29.8.21
£
£
15,228
26,531
-
(20,000)
15,228
6,531
26,164
(1,267,714)
26,164
(1,267,714)
41,392
(1,261,183)

The notes form part of these financial statements

Page 11

Ebrahim Community College

Notes to the Financial Statements for the Year Ended 29 August 2021

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.

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 13

continued...

Ebrahim Community College

Notes to the Financial Statements - continued for the Year Ended 29 August 2021

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Year Ended
29.8.21
£
Donations
53,530
Gift aid
792
Grants
26,912
Job retention scheme grant
24,997
106,231		 Period
1.9.19
to
29.8.20
£
95,698
7,594
39,916
-
143,208

Grants received, included in the above, are as follows:

Year Ended
29.8.21
£
Other grants
26,912
OTHER TRADING ACTIVITIES
Year Ended
29.8.21
£
Fees
90,470
Rental income
-
90,470		 Period
1.9.19
to
29.8.20
£
39,916
Period
1.9.19
to
29.8.20
£
287,584
29,960
317,544

3. OTHER TRADING ACTIVITIES

Page 14

continued...

Ebrahim Community College

Notes to the Financial Statements - continued

for the Year Ended 29 August 2021

4. EDUCATION AND TEACHING

Raising donations and legacies

Year Ended
29.8.21
£
Support costs
160,685		 Period
1.9.19
to
29.8.20
£
440,082

5. SUPPORT COSTS

Management
£
Raising donations and
legacies
139,892		 Administrative
Finance
expenses
£
£
352
18,441		 Governance
costs
£
2,000		 Totals
£
160,685

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 29 August 2021 nor for the period ended 29 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 29 August 2021 nor for the period ended 29 August 2020.

7. STAFF COSTS

Year Ended
29.8.21
£
Wages and salaries
101,317
101,317		 Period
1.9.19
to
29.8.20
£
210,335
210,335

The average monthly number of employees during the year was as follows:

Period
1.9.19
Year Ended to
29.8.21 29.8.20

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

Page 15

continued...

Ebrahim Community College

Notes to the Financial Statements - continued for the Year Ended 29 August 2021

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted
Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 143,208 - 143,208
Other trading activities 317,544 - 317,544
Total 460,752 - 460,752
EXPENDITURE ON
Education and teaching 440,082 - 440,082
NET INCOME 20,670 - 20,670
RECONCILIATION OF FUNDS
Total funds brought forward (1,450,533) - (1,450,533)
TOTAL FUNDS CARRIED
FORWARD (1,429,863) - (1,429,863)
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.8.21 29.8.20
£ £
Bank loans and overdrafts (see note 11) 20,000 20,000
Trade creditors 50,000 50,000
Social security and other taxes 3,390 3,390
Accruals and deferred income 75,774 71,198
Accrued expenses 3,500 2,700
152,664 147,288

Page 16

continued...

Ebrahim Community College

Notes to the Financial Statements-continued to the Financial Statements-continued
for the Year Ended 29 August 2021
10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
29.8.21
29.8.20
£ £
Bank loans (see note 11) 47,404 50,000
Other loans (see note 11) 1,220,310 1,243,878
1,267,714 1,293,878
11. LOANS
An analysis of the maturity of loans is given below:
29.8.21
29.8.20
£ £
Amounts falling due within one year on demand:
Bank overdrafts 20,000 20,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 47,404 50,000
Other loans - 2-5 years 1,220,310 1,243,878
1,267,714 1,293,878
12. ANALYSIS OF NET ASSETS BETWEEN FUNDS
29.8.21
29.8.20
Unrestricted Restricted
Total		 Total
fund fund funds funds
£ £ £ £
Current assets 26,531 - 26,531 11,303
Current liabilities (152,664) - (152,664) (147,288)
Long term liabilities (1,267,714) - (1,267,714) (1,293,878)
(1,393,847) - (1,393,847) (1,429,863)
13. MOVEMENT IN FUNDS
Net
At movement
At
30.8.20
in funds
29.8.21
£ £ £
Unrestricted funds
General fund (1,429,863) 36,016 (1,393,847)
TOTAL FUNDS (1,429,863) 36,016 (1,393,847)

Page 17

continued...

Ebrahim Community College

Notes to the Financial Statements - continued for the Year Ended 29 August 2021

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 196,701 (160,685) 36,016
TOTAL FUNDS 196,701 (160,685) 36,016
Comparatives for movement in funds
Net
movement
At
At 1.9.19
in funds
29.8.20
£ £ £
Unrestricted funds
General fund (1,450,533) 20,670 (1,429,863)
TOTAL FUNDS (1,450,533) 20,670 (1,429,863)
Comparative 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

Page 18

continued...

Ebrahim Community College

Notes to the Financial Statements - continued

for the Year Ended 29 August 2021

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 29 August 2021.

Page 19

Ebrahim Community College

Detailed Statement of Financial Activities for the Year Ended 29 August 2021

Year Ended
29.8.21
£
INCOME AND ENDOWMENTS
Donations and legacies
Donations
53,530
Gift aid
792
Grants
26,912
Job retention scheme grant
24,997
106,231
Other trading activities
Fees
90,470
Rental income
-
90,470
Total incoming resources
196,701
EXPENDITURE
Support costs
Management
Wages
101,317
Insurance
532
Repairs & maintenance
1,850
Telephone
1,060
Postage and stationery
2,455
Consultancy fees
32,678
139,892
Finance
Bank charges
352
Administrative expenses
Subscription
3,147
Light and heat
1,466
Sundries
2,570
Event expenses
-
Carried forward
7,183		 Period
1.9.19
to
29.8.20
£
95,698
7,594
39,916
-
143,208
287,584
29,960
317,544
460,752
210,335
4,537
9,257
4,675
2,297
52,696
283,797
686
7,695
6,831
3,014
5,221
22,761

This page does not form part of the statutory financial statements

Page 20

Ebrahim Community College

Detailed Statement of Financial Activities for the Year Ended 29 August 2021

Year Ended
29.8.21
£
Administrative expenses
Brought forward
7,183
Premises costs
9,500
Educational resources
1,290
Travel & subsistence
-
Card machine charges
-
Website costs
401
Bank loan interest
67
18,441
Governance costs
Accountancy and legal fees
2,000
Total resources expended
160,685
Net income
36,016		 Period
1.9.19
to
29.8.20
£
22,761
116,569
9,737
83
4,949
-
-
154,099
1,500
440,082
20,670

This page does not form part of the statutory financial statements

Page 21