REGISTERED COMPANY NUMBER: 05246602 (England and Wales) REGISTERED CHARITY NUMBER: 1112513
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 August 2020
for
Darussunnah Foundation
SKN Services Ltd Chartered Accountants SKN Business Centre 1 Guildford Street Birmingham West Midlands B19 2HN
Darussunnah Foundation
Contents of the Financial Statements for the Year Ended 31 August 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 to 6 |
| Notes to the Financial Statements | 7 to 12 |
| Detailed Statement of Financial Activities | 13 |
Darussunnah Foundation
Report of the Trustees
for the Year Ended 31 August 2020
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 31 August 2020. 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
1) The advancement of education within the local Bengali Community, In particular, but not exclusively, the study, of Bengali, Arabic, religious studies and any other related subjects. 2) The promotion of good relations between peoples of different races and faiths within the community.
ACHIEVEMENT AND PERFORMANCE
The Charity has successfully advanced their activities for education classes in the current financial year. Various classes have been running successfully throughout the period. Also the facilities at the building have also been enhanced significantly in the period under review.
FINANCIAL REVIEW
Reserves policy
The trustees have established a policy whereby the unrestricted funds held by the charity should be between 3 and 6 months of the resources expended. At this level, the management committee feel that they would be able to continue the current activities of the charity in the event of a significant drop in the funding. At present the free reserves do not reach this target level and the trustees are looking at various options to improve this situation.
The total incoming resources for the period amounted £26,060 (2019: £47,825) with a net deficit of £3,865 (2019: surplus £19,617).
FUTURE PLANS
The charity plans to continue with its activities and provide services as detailed in the Memorandum and Articles of Association. It will also concentrate on clearing the loans received from individuals who have kindly helped the organisation when most needed.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The organisation is a charitable company limited by guarantee, incorporated on 30 September 2004 and registered as a charity on 13 December 2005.
Organisational structure
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles the initial subscribers to the Memorandum are the first Trustees of the Charity. One third of the Trustees must retire at each AGM subject to reappointment by the members.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
05246602 (England and Wales)
Page 1
Darussunnah Foundation
Report of the Trustees
for the Year Ended 31 August 2020
Registered Charity number 1112513
Registered office
127 Frederick Road Aston Birmingham B6 6BP
Trustees
Khusru M Khan Muhammed T Islam M Abdul Wodud Mohammed A Kadir Anwarul Hoque Mobossir Ali Syed M Ahmed Khalil Ahmed Miss Shajna A Begum LLB Kabir Khan Faruk Miah Trustee
Company Secretary
Khusru M Khan
Independent Examiner
Mr Shalim Uddin FCA, JP SKN Services Ltd Chartered Accountants SKN Business Centre 1 Guildford Street Birmingham West Midlands B19 2HN
Approved by order of the board of trustees on 24 May 2021 and signed on its behalf by:
Khusru M Khan - Trustee
Page 2
Independent Examiner's Report to the Trustees of Darussunnah Foundation
Independent examiner's report to the trustees of Darussunnah Foundation ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 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
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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.
Mr Shalim Uddin FCA, JP SKN Services Ltd Chartered Accountants SKN Business Centre 1 Guildford Street Birmingham West Midlands B19 2HN
24 May 2021
Page 3
Darussunnah Foundation
Statement of Financial Activities
for the Year Ended 31 August 2020
| 31.8.20 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 22,460 Investment income 2 3,600 Total 26,060 EXPENDITURE ON Charitable activities Education & support 29,925 NET INCOME/(EXPENDITURE) (3,865) RECONCILIATION OF FUNDS Total funds brought forward 194,171 TOTAL FUNDS CARRIED FORWARD 190,306 |
31.8.19 Total funds £ 44,526 3,300 |
|---|---|
| 47,826 28,209 |
|
| 19,617 174,554 |
|
| 194,171 |
The notes form part of these financial statements
Page 4
Darussunnah Foundation
Balance Sheet
31 August 2020
| 31.8.20 Unrestricted fund Notes £ FIXED ASSETS Tangible assets 6 221,661 CURRENT ASSETS Debtors 7 412 Cash at bank and in hand 3,022 3,434 CREDITORS Amounts falling due within one year 8 (2,409) NET CURRENT ASSETS 1,025 TOTAL ASSETS LESS CURRENT LIABILITIES 222,686 CREDITORS Amounts falling due after more than one year 9 (32,380) NET ASSETS 190,306 FUNDS 11 Unrestricted funds 190,306 TOTAL FUNDS 190,306 |
31.8.19 Total funds £ 222,439 412 7,862 8,274 (1,970) 6,304 228,743 (34,572) 194,171 194,171 194,171 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 5
continued...
Darussunnah Foundation
Balance Sheet - continued
31 August 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 24 May 2021 and were signed on its behalf by:
Khusru M Khan - Trustee
The notes form part of these financial statements
Page 6
Darussunnah Foundation
Notes to the Financial Statements for the Year Ended 31 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.
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.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings
- 20% on reducing balance
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.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 7
Darussunnah Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
2. INVESTMENT INCOME
| 31.8.20 | 31.8.19 | |
|---|---|---|
| £ | £ | |
| Rents received | 3,600 | 3,300 |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Depreciation - owned assets | 778 | 972 |
3. NET INCOME/(EXPENDITURE)
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL | ACTIVITIES |
|---|---|
| Unrestricted | |
| fund | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Donations and legacies | 44,526 |
| Investment income | 3,300 |
| Total | 47,826 |
| EXPENDITURE ON | |
| Charitable activities | |
| Education & support | 28,209 |
| NET INCOME | 19,617 |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward | 174,554 |
continued...
Page 8
Darussunnah Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| TOTAL FUNDS CARRIED FORWARD 6. TANGIBLE FIXED ASSETS Freehold property £ COST At 1 September 2019 and 31 August 2020 218,549 DEPRECIATION At 1 September 2019 - Charge for year - At 31 August 2020 - NET BOOK VALUE At 31 August 2020 218,549 At 31 August 2019 218,549 7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors |
Unrestricted fund £ 194,171 Fixtures and fittings Totals £ £ 13,375 231,924 9,485 9,485 778 778 10,263 10,263 3,112 221,661 3,890 222,439 31.8.20 31.8.19 £ £ 412 412 |
|---|---|
continued...
Page 9
Darussunnah Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
| 8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.20 £ Trade creditors 1,250 Social security and other taxes 546 Other creditors 13 Accrued expenses 600 2,409 9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.8.20 £ Bank loans (see note 10) - Other creditors 32,380 32,380 10. LOANS An analysis of the maturity of loans is given below: 31.8.20 £ Amounts falling due in more than five years: Repayable by instalments: Bank loans more then 5 yr - 11. MOVEMENT IN FUNDS Net movement At 1/9/19 in funds £ £ Unrestricted funds General fund 194,171 (3,865) TOTAL FUNDS 194,171 (3,865) |
31.8.19 £ 703 530 137 600 1,970 31.8.19 £ 192 34,380 34,572 31.8.19 £ 192 At 31/8/20 £ 190,306 |
31.8.19 £ 703 530 137 600 1,970 31.8.19 £ 192 34,380 |
|---|---|---|
| 34,572 | ||
| 190,306 |
continued...
Page 10
Darussunnah Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
11. 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 | 26,060 | (29,925) | (3,865) |
| TOTAL FUNDS | 26,060 | (29,925) | (3,865) |
| Comparatives for movement in funds | |||
| Net | |||
| movement | At | ||
| At 1/9/18 | in funds | 31/8/19 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 174,554 | 19,617 | 194,171 |
| TOTAL FUNDS | 174,554 | 19,617 | 194,171 |
| Comparative net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 47,826 | (28,209) | 19,617 |
| TOTAL FUNDS | 47,826 | (28,209) | 19,617 |
| A current year 12 months and prior year 12 months | combined position is as | follows: | |
| Net | |||
| movement | At | ||
| At 1/9/18 | in funds | 31/8/20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 174,554 | 15,752 | 190,306 |
| TOTAL FUNDS | 174,554 | 15,752 | 190,306 |
continued...
Page 11
Darussunnah Foundation
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
11. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 73,886 | (58,134) | 15,752 |
| TOTAL FUNDS | 73,886 | (58,134) | 15,752 |
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2020.
13. COMPANY LIMITED BY GUARANTEE
Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of a winding up. The total number of such guarantees at 31 August 20 was 11 (2019: 11).
Page 12
Darussunnah Foundation
| Detailed Statement of Financial Activities | ||
|---|---|---|
| for the Year Ended 31 August 2020 | ||
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 17,694 | 29,926 |
| Gift aid | - | 14,600 |
| Grants | 4,766 | - |
| 22,460 | 44,526 | |
| Investment income | ||
| Rents received | 3,600 | 3,300 |
| Total incoming resources | 26,060 | 47,826 |
| EXPENDITURE | ||
| Charitable activities | ||
| Wages | 17,111 | 19,422 |
| Rates and water | 659 | 653 |
| Insurance | 732 | 790 |
| Light and heat | 3,813 | 3,737 |
| Postage and stationery | 636 | 133 |
| Sundries | - | 76 |
| Temp & Recruitment | 170 | - |
| Foods & Refreshment | 4 | - |
| Repairs and maintenance | 4,840 | 940 |
| Telephone | 403 | 390 |
| Equipment expensed | - | 46 |
| Depreciation of tangible fixed assets | 778 | 972 |
| 29,146 | 27,159 | |
| Support costs | ||
| Management | ||
| Pensions | 96 | - |
| Governance costs | ||
| Accountancy fees | 600 | 600 |
| Bank Charges | 83 | 450 |
| 683 | 1,050 | |
| Total resources expended | 29,925 | 28,209 |
| Net (expenditure)/income | (3,865) | 19,617 |
This page does not form part of the statutory financial statements
Page 13