**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:
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.
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