**REGISTERED CHARITY NUMBER: 1113836** **REPORT OF THE TRUSTEES AND** **AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022** **FOR** **KASHMIR ORPHAN RELIEF TRUST** **KASHMIR ORPHAN RELIEF TRUST** **CONTENTS OF THE FINANCIAL STATEMENTS For The Year Ended 31 October 2022** ||**Page**| |---|---| |**Reference and Administrative Details**|1| |**Report of the Trustees**|2 to 8| |**Statement of Trustees' Responsibilities**|9| |**Report of the Independent Auditors**|10 to 12| |**Statement of Financial Activities**|13| |**Balance Sheet**|14| |**Cash Flow Statement**|15| |**Notes to the Cash Flow Statement**|16| |**Notes to the Financial Statements**|17 to 22| |**Detailed Statement of Financial Activities**|23| **KASHMIR ORPHAN RELIEF TRUST** ## **REFERENCE AND ADMINISTRATIVE DETAILS For The Year Ended 31 October 2022** **TRUSTEES** Mr A A Latif Mr M Akhtar Mr M M Afzal Mr M R Bashir Mr M Yaqoob Mr N Farooq Mr Z Hussain Mr M Nisar **PRINCIPAL ADDRESS** Leicester Business Centre 111 Ross Walk Leicester Leicestershire LE4 5HH **REGISTERED CHARITY NUMBER** 1113836 **AUDITORS** TC Group Chartered Accountants & Statutory Auditor 31 High View Close Hamilton Office Park Leicester Leicestershire LE4 9LJ Page 1 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** The trustees present their report with the financial statements of the charity for the year ended 31 October 2022. 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** The key objective of the charity is to raise funds for the purpose of providing relief to the poor, disabled, widows, and orphans of Azad Jammu Kashmir-Pakistan. With the assistance of the charity, these categories of people are provided with (depending on their need) necessities such as food, shelter, clothes, medicines, education, wheelchairs, and sewing machines. ## **Public benefit** The Trustees have reviewed the general guidance provided by the Charity Commission with regard to a statement of public benefit. The Trustees have ensured that the charity remains focussed on our charitable aims and continue to deliver benefits to the public. ## **Grantmaking** KORT does not provide grants to any individuals or organisations. Funds are used for our own selected projects i.e., sustainability of our own orphanage in Mirpur, Azad Kashmir and distribution of food relief packages, wheelchairs, and sewing machines for the poor & needy people of Azad Kashmir - once the need has been verified by our own local teams. ## **ACHIEVEMENT AND PERFORMANCE** ## **Charitable activities** ## **Orphans Sponsorship and Sustainability Program** During the period YE2022, The KORT Sponsorship Program catered for 440 orphan children based in our purpose-built home for orphans: namely The KORT Educational Complex, Akhtarabad, Mirpur, Azad Kashmir. At KORT, the children are safeguarded from the scourge of poverty and provided with fresh meals, safe and secure environment, living accommodation, recreational facilities, casual clothing, school uniforms, medical care, and quality education. ## **October 2022** ## **2005 Earthquake Remembrance Walk and 17th Anniversary of KORT** On 8th October 2022, KORT remembered the victims of the 2005 earthquake by holding a remembrance walk and prayers for the martyrs in the city of Mirpur AJK. Later that evening, the students of KORT organised a celebratory event to mark our 17th anniversary with amazing performances by the children in the presence of esteemed guests from around the world including the former Prime Minister of Pakistan and current Speaker of Pakistan National Assembly: Honourable Raja Pervaiz Ashraf. ## **Pakistan Floods Relief Project** The floods of 2022 left a third of Pakistan under water, with at least 1,400 dead and more than 33 million people affected, the country was ravaged by monsoon-triggered floods washing away bridges, roads, livestock, and people. Pakistan's worst climate-induced natural disaster in years was caused by record torrential rainfall and melting glaciers in the country's northern mountains. Overflowing sewage and floating rubbish also triggered a rise in waterborne diseases including cholera and dengue. Working with Pakistan's National Disaster Management Agency, Team KORT was on the ground providing warm meals, food packs, blankets, and medical aid in the affected areas of Gilgit-Baltistan, Khyber Pakhtunkhwa, Balochistan, Sindh, Punjab, and southern Pakistan. We are also building houses for the neediest families who lost theirs during the floods. Thank you to all our donors and amazing volunteers for your generosity, time and efforts raising much needed funds and supporting the suffering humanity across Pakistan. Page 2 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** ## **KORT Hospital Project Update** In October 2022, the government of Azad Jammu & Kashmir signed over 100 kanals of land to KORT to build a hospital in the city of Mirpur which will provide free quality healthcare for all. Thank you to the Prime Minister of AJK: Sardar Tanveer Ilyas Khan, SMBR Fayyaz Ali Abbasi, and Ch Khalid Yousaf for trusting KORT to deliver another asset for the people of AJK. ## **KORT Swabi Islamic Studies and Residential Complex Update** The construction of the new complex is going according to schedule with inauguration of the complex planned for summer 2023. Work on all 3 buildings has been progressing well with roof work on the final Hostel block nearing completion while interior building work is underway in the Islamic block. Work on the main Admin block is also in its final stage. At its peak, the complex will be able to accommodate up to 300 orphan children. Thank you to all our donors and Muskorteers who have supported this project. ## **First Ever Burn Centre to Be Built by KORT In AJK** A burn injury can be one of the most severe forms of trauma requiring specialised treatment. Due to a lack of specialised burns facilities in AJK, KORT will be building a specialised Burn Centre at The DHQ Hospital in Kotli to meet these critical needs. Construction will take place during 2023-24 and we pray that this will become another important and useful asset for the public in AJK. ## **September 2022** ## **Education for All Project Update** As part of our project 'Education for All', five schools were built and handed over to the local education authorities in various locations across AJK with construction underway in many other locations. Chief guests at the inauguration ceremonies included Minister of Education: Dewan Ali Khan Chugtai, Ch Yasir Sultan MLA-LA3, Ch Mansha DG-MDHA, and Brigadier Sajid Amin Sahib. All guests commended the leadership and passion of our chairman: Ch Mohammed Akhtar (TI) and called upon people in authority to do more to improve the standards of education in AJK. ## **Clean Water Project Update** As per our commitment with our donors, thousands of people can now access clean and safe to drink water in more locations of Pakistan and AJK. Due to other emergency relief projects being prioritised, there has been a delay in completing more water filtration plants, however, work is underway in many locations now and over 20 more plants will be built within the next 6-9 months. ## **August 2022** ## **10 KORT Students Memorise the Holy Quran** The Holy Quran is a source of guidance and mercy for all humanity. Memorising and reciting the Quran makes the person worthy of reward and blessings in this worldly life as well as the Hereafter. Praise be to the Almighty, 10 KORT students completed memorisation of the Holy Quran in August 2022. May the Almighty bless all our donors who sponsor towards the students at KORT. ## **The First Weddings at KORT** Following the 2005 Azad Kashmir Earthquake, many orphaned children came to KORT who had lost their parents and other close family members. These children have been raised as one of our own for the past 17 years and now some of them have completed their studies, have a job, and are of marriageable age. In August 2022, two weddings took place at KORT for two young adult females who joined KORT in 2006 as orphans. The management of KORT made every effort to ensure that these individuals did not feel the loss of their parents and celebrated the occasion as one big family with all the students and staff at KORT. Please continue to support KORT so we can help provide a brighter future for the orphans in our care. ## **July 2022** ## **Sustainability Project** KORT took a big step to become a self-sustainable organisation by laying the foundation to build a shopping mart in the centre of Mirpur city fully owned by KORT. This project will provide huge benefits to KORT and create career opportunities for the orphans of KORT as well as locals and will be a base for our relief projects for AJK and Pakistan. The DG of the Mirpur Development Authority was invited to lay the foundation of the KORT Mart, and we pray that the Almighty makes this a big success for KORT. Page 3 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** ## **Turning Disability into Ability & Women's Empowerment Project** As promised, KORT is continuing to empower women and turn disability into ability for the people of AJK and Pakistan. Hundreds of wheelchairs and sewing machines including unstitched cloth and accessories were provided to people in need in AJK and Swabi KPK. The President of AJK & Chief Patron of KORT: Barrister Sultan Mahmood Chaudhry was also present during a wheelchair and sewing machines distribution in Mirpur AJK earlier this year and praised the donors of KORT. Other distributions were also attended by Mr Hassan Ibrahim (MLA for the government of AJK), Sardar Shazaib Khan (CEO Gulf Empire), and Ch Ali Shan Soni (Minister of Food AJK). With the generosity of our donors, KORT has also collaborated with CDA Islamabad to provide wheelchair accessible washrooms at over 50 locations in Islamabad for people with mobility issues. Previously there were no such public facilities for wheelchair users in Islamabad making it difficult for people with mobility issues to enjoy a day out in the capital. Praise be to Allah; the first group of females sewing class students also completed their sewing course which has enabled them to gain a skill for life. This skill will help empower them to earn a living and help towards the positive development of the country. ## **Qurbani Meat** Praise be to the Almighty, KORT carried out another successful Qurbani project this year, supporting needy people in over 20 different locations of Azad Kashmir. 210 large animals were sacrificed for the sake of the Almighty on behalf of our generous donors benefiting over 12,000 needy families. Thank you to our Muskorteers and staff across Azad Kashmir for their hard efforts in delivering a successful Qurbani project. A big thank you also to our generous donors who donated their Qurbani for the needy communities in Azad Kashmir. ## **June 2022** ## **Lifesaving Aid for Earthquake Hit Afghanistan** A 6.1 magnitude earthquake hit eastern Afghanistan in June 2022, killing over 1,000 people, with millions already suffering in the war-ravaged country stricken by an economic crisis. With the support of our donors, the Government of AJK, and Pakistan's National Disaster Management Authority, KORT collaborated with the Pak-Afghan Cooperation Forum to dispatch an aid convoy of 29 trucks consisting of essential food items to help the neediest. With accountability and transparency high on the agenda for KORT, an Aid Handover Ceremony was held at Kashmir House in Islamabad in the presence of The Honourable President of AJK: Barrister Sultan Mahmood Choudhary, before the convoy made its way to the Pakistan-Afghanistan border where the aid was handed over to the local authority by our chairman: Ch Mohammed Akhtar (TI). Thank you to our amazing donors who always share the pain and burden of the suffering humanity and donate generously to our appeals. ## **May 2022** ## **Umrah for Orphans** 20 students of KORT had the honour of performing Umrah in May 2022 thanks to the generosity of our donors. These students were part of 2 groups that were had their trip postponed since 2020 due to Covid-19 enforced travel restrictions. God willing the remaining sponsored students will perform Umrah during early 2023. Thank you to the lucky donors who took the opportunity of sponsoring towards this blessed trip. Duas were made for the donors throughout the journey and both in Makkah and Madinah, and the students were extremely grateful and thankful to the donors for the trip. ## **April 2022** ## **Cakes 4 Orphans Campaign** Praise be to the Almighty, we are blessed to have an amazing team of volunteers in the UK and AJK-Pakistan who we call Muskorteers due to their passion for serving humanity, and their sacrifice of time and money to support and raise funds for those in need. Thank you to all the UK Muskorteers for raising an amazing £167,500 for orphans during Ramadhan 2022 as part of our Cakes & Dates 4 Orphans fundraising campaign. May the Almighty accept your efforts and reward you and your loved ones immensely. Page 4 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** ## **Fitrana Distribution** Every Ramadan, we also encourage our donors to donate their Fitrana to us by mid-Ramadan to give us enough time to distribute it among the deserving needy families. Praise be to the Almighty, over £20,000 worth of Fitrana was distributed to needy people before Eid-ul-Fitr 2022. Over 600 widows and needy families received 8,000 rupees each to enjoy and celebrate the festival of Eid. The Fitrana funds were provided with respect and honour in the presence of the Honourable Commissioner of Mirpur Division: Ch Raqeeb sahib, DIG Khalid Chauhan sahib, Deputy Commissioner Ch Amjad sahib, SSP Kamran Ali sahib, and Collector of Mangal Dam: Ch Ayub sahib. Thank you to all our donors who donated their Fitrana to KORT AND supported our Ramadan appeals to bring relief and joy to thousands of needy families during the month of blessings. ## **Food Relief for Thousands of Needy Families** With the generosity of our donors, KORT again provided food packs to thousands of needy families across Azad Kashmir and parts of Pakistan during Ramadan 2022. Each food pack contained essential food items to feed a family of 5 for 1 month. The President of AJK and Chief Patron of KORT: Barrister Sultan Mahmood Chaudhry, Khawaja Farook Ahmed MLA AJK, and Ms Shama Malik former MLA AJK also attended a food pack distribution and commended the efforts of KORT. ## **February-March 2022** ## **Fundraising Events for New KORT Hospital Project in Mirpur, AJK** With a population of around 4.5million people, Azad Kashmir is desperately in need of a hospital which is accessible for all, and most importantly, provides 'free' quality healthcare. Most of the people in Azad Kashmir live below the poverty line and must travel to the Pakistani capital of Islamabad for specialist treatment. A journey and expense that the poor simply cannot afford. To alleviate the pain of the suffering humanity in Azad Kashmir, KORT will be building the largest free-of-cost hospital in Mirpur Azad Kashmir to provide free quality healthcare for all. 7 fundraising events were held across England to raise funds for the project whilst our local team in AJK is working with the government, architects, and engineers to work on the best and cost-effective way of delivering this special project. ## **February 2022** ## **Every Child Deserves to Smile** Not having the correct equipment and clothing can have an impact on the morale and confidence of children in school. KORT gifted uniforms and stationery to needy children at a school in Rajanpur, Pakistan, which helped boost the morale of the students and staff at the school. ## **January 2022** ## **Our Pride Our Muskorteers** Praise be to the Almighty, KORT has been blessed with many dedicated and passionate Muskorteers (volunteers) around the world who sacrifice their time to help with fundraising and assist with relief distributions across AJK and Pakistan. An awards ceremony was held in Bradford to recognise and acknowledge the support of those volunteers who went above and beyond what was expected of them for the purpose of supporting those in need. Thank you to all our amazing donors, supporters, and volunteers for helping to bring relief to thousands of needy and vulnerable people across AJK and Pakistan. ## **December 2021** ## **Essential Winter Clothing for the Crisis Affected People of Afghanistan** Cold weather brings new challenges, fear, and panic for millions of people living without proper shelter or clothing. With the support of our donors, essential winter clothing was provided to the crisis affected people of Afghanistan to help bring relief during the winter months. ## **Relief for needy families in Rawalpindi** KORT is always on hand to support humanity in need regardless of their faith or beliefs. KORT distributed essential food packs to 100 needy Christian families at the First Presbyterian Church in Raja Bazar, Rawalpindi. Thank you to our donors for their generosity to support humanity in need. ## **November 2021** ## **Standing with Our Afghan Brothers and Sisters in Need.** Page 5 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** In collaboration with the Pak-Afghan Cooperation Forum, KORT delivered 21 trucks carrying 202 tons of humanitarian aid to Afghanistan due to the ongoing struggles of the poverty afflicted people in the country. The aid was supervised and handed over personally by our chairman Ch. Mohammed Akhtar (TI). ## **Blankets for the Earthquake affected people of Balochistan** An earthquake in Balochistan destroyed thousands of houses and left most of the people at the mercy of others. To help our fellow country men and women in need, KORT distributed thousands of blankets to help the affected people keep warm during the winter. ## **Fundraising activities** Here are KORT's main fundraising methods and activities: o Charity Fundraising Dinners - The charity holds charity fundraising events throughout the year in different cities across England to provide feedback to our donors of how and where their donations have been used and share plans of future projects for the sustainability of KORT and to ease the pain of the suffering humanity in Azad Kashmir and Pakistan. 7 charity dinners were held during this accounts period. o TV & Radio Appeals - A total of 5 Live Radio Appeals and 6 Live TV Appeals were broadcasted during this accounting period. o Online Fundraising Platforms - Several of our Musketeers (volunteers) from across England raised funds for KORT by setting up fundraising pages on Justgiving.com. ## **FINANCIAL REVIEW** ## **Financial position** During the year ended 31st October 2022, the charity received an income totalling £4,358,080 (2021: £3,223,678). This included Gift Aid of £263,558 of which was received from the HMRC. An expenditure of £3,453,418 was incurred to meet the charity's prime objectives in Azad Kashmir. £2,940,421 of the total expenditure went towards the running of the orphanage in Mirpur Azad Kashmir and towards providing relief to the suffering humanity in Azad Kashmir and Pakistan. The total amount of funds carried forward was £3,090,628 (2021: £2,185,966). After being restricted to deliver our charitable projects in AJK & Pakistan during the Covid-19 pandemic, 2022 was a year of normality with no more lockdowns or curfews, and health restrictions being lifted. However, as people went about embracing the 'New Normal Life', the cost of living soared which increased the cost of our charitable projects and the running cost of KORT. These problems were exacerbated with the political turmoil in Pakistan. The tough two years of Covid-19 had caused a backlog of our charitable projects, and we have had to postpone some projects further due to prioritising relief and rehabilitation projects for earthquake hit Afghanistan and flood affected Pakistan. However, despite the challenges brought by the Covid-19 pandemic and the uncertainties caused by inflation, KORT has shown great resilience by delivering on our strategic objectives for 2022. 2023 will see further progress of some key projects including the KORT Burn Centre, the KORT Hospital, and we shall also be opening our 2nd orphanage in Swabi, KPK Pakistan. ## **Principal funding sources** Funds received via direct debit and standing order remains a key source of income for KORT. This maintains a constant flow of income to sustain our orphans' home and deliver our charitable objectives. Gift Aid is also an important source of income for KORT, and we make effective use of this additional money. Gift Aid helps to cover our essential operating and administration costs, ensuring donations have maximum impact and reach those in need. Page 6 **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** ## **FINANCIAL REVIEW Reserves policy** ## **Purpose** The purpose of the Reserve Policy is for KORT UK to build and maintain an adequate level of unrestricted funds to support KORT AK's day-to-day operations in the event of unforeseen shortfalls. The reserve may also be used for one-time, nonrecurring expenses that will build long-term capacity, such as staff development and investment in infrastructure. Reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget gap. The charity intends for the reserves to be used and replenished periodically as necessary. This Reserve Policy will be implemented in conjunction with the other financial policies of the charity and is intended to support the goals and strategies contained in those related policies and in strategic and operational plans. ## **Definitions and Goals** The Reserve is defined as the designated fund set aside by action of the Board of Trustees. The minimum amount to be designated as reserve will be established in an amount adequate to maintain ongoing administrative costs for a set period measured in months. The reserve serves a dynamic role and will be reviewed and adjusted in response to internal and external changes. The intention of KORT UK is to build a minimum Reserve fund equal to 3 years of average recurring operating costs. This is calculated by KORT AK's monthly running costs multiplied by 36 months. In addition to calculating the actual reserve at the fiscal year-end, the reserve fund minimum will be calculated each year after approval of the annual budget. These reserves will be reported to the Board of Trustees and included in the regular financial reports. ## **Funding of Reserves** The Reserve Fund will be funded by KORT UK with surplus unrestricted operating funds. The Board of Trustees may, from time to time, direct that a specific source of revenue be set aside for reserves. For example, special appeals. The Board of Trustees will identify the need for access to reserve funds and confirm that the use is consistent with the purpose of the reserves as described in this Reserve Policy. ## **Authority to use Reserves** KORT AK will submit a request to use reserves to the Board of Trustees. The request will include the analysis and determination of the use of funds and plans for replenishment. The charity's goal is to replenish the funds used within a reasonable amount of time as necessary to restore the Reserve Fund to the target minimum amount. The Board of Trustees will either approve or modify the request and authorise transfer from the Reserve Fund. ## **Reporting and Monitoring** The Board of Trustees are responsible for ensuring that the Reserve Fund is maintained and used only as described in this Policy. Upon approval of the use of reserve funds, the KORT AK's accounts department will maintain records of the use of funds and plan for replenishment of the reserve fund account. KORT AK's accounts department will provide regular periodic reports to the Board of Trustees of progress to restore the fund to the target minimum amount. The Board of Trustees will annually discuss what additional risk factors might be considered for the organisation and the impact of budgeting on reserve levels. ## **Review of Policy** This Policy will be reviewed by the Board of Trustees annually at minimum, or sooner if warranted by internal or external events or changes. Changes to the Policy will be recommended by the accounts department to the Board of Trustees. This policy, upon every revision hereof, must be distributed by the Office Manager to the following individuals/entities: Internal Accounts department, relevant managers. Page 7 ## **KASHMIR ORPHAN RELIEF TRUST** ## **REPORT OF THE TRUSTEES For The Year Ended 31 October 2022** ## **FINANCIAL REVIEW** The Internal Accounts department is established by the KORT Board of Trustees to recommend financial policies, strategies, and budgets that support the mission, values, and strategic plan of the charity. Its purpose is to ensure the financial health and integrity of the charity in pursuit of its mission to focus on alleviating poverty for those in dire need of humanitarian aid - via critical emergency aid, and/or social sustainable projects. ## **Going concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. The charity is constituted by a Trust Deed dated 10 April 2006 and is registered with the Charity Commission in England. ## **Recruitment and appointment of new trustees** The recruitment and selection of new members of the Board of Trustees is the responsibility of the Board. The selection process includes inviting selected individuals who have been affiliated with KORT over the years and are respected in their own communities to a meeting with senior trustees to assess their suitability for the role. Following this, the Trustees meet to discuss each applicant, and those who are felt to fulfil their criteria are invited to join the Board subject to appropriate checks and references. ## **Organisational structure** KORT has 8 trustees, 3 full-time admin staff, and a graphic designer in the UK. ## **Induction and training of new trustees** Trustees that are selected are already aware of the ways of working of KORT. Once on board, the senior trustees explain to them their roles and responsibilities, an introduction to other trustees, an overview of recent activities, an explanation of the Board format, processes, and our projects. ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 21 July 2023 Approved by order of the board of trustees on ............................................. and signed on its behalf by: .................................................................... Mr M Akhtar - Trustee Page 8 ## **KASHMIR ORPHAN RELIEF TRUST** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES For The Year Ended 31 October 2022** The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 9 ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF KASHMIR ORPHAN RELIEF TRUST** ## **Opinion** We have audited the financial statements of Kashmir Orphan Relief Trust (the 'charity') for the year ended 31 October 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). - In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 October 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. Page 10 ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF KASHMIR ORPHAN RELIEF TRUST** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. We understood how the charity is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. We assess the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the charity has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Page 11 ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF KASHMIR ORPHAN RELIEF TRUST** ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. TC Group Chartered Accountants & Statutory Auditor 31 High View Close Hamilton Office Park Leicester Leicestershire LE4 9LJ Date: ............................................. 25 August 2023 Page 12 ## **KASHMIR ORPHAN RELIEF TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 October 2022** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
Investment income
3
**Total**
**EXPENDITURE ON**
Raising funds
4
**Charitable activities**
5
Donations paid to beneficiaries
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
4,347,643
4,300
4,351,943
505,687
2,927,134
7,310
3,440,131
911,812
2,178,816
3,090,628|Restricted
fund
£
6,137
-
6,137
-
13,287
-
13,287
(7,150)
7,150
-|2022
Total
funds
£
4,353,780
4,300
4,358,080
505,687
2,940,421
7,310
3,453,418
904,662
2,185,966
3,090,628|2021
Total
funds
£
3,220,432
3,246
3,223,678
313,275
3,708,500
7,140
4,028,915
(805,237)
2,991,203
2,185,966| |---|---|---|---|---| The notes form part of these financial statements Page 13 ## **KASHMIR ORPHAN RELIEF TRUST** ## **BALANCE SHEET** ## **31 October 2022** |Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Cash at bank
**CREDITORS**
Amounts falling due within one year
12
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
13
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
13,111
3,095,202
(17,685)
3,077,517
3,090,628
3,090,628|Restricted
fund
£
-
-
-
-
-
-|2022
Total
funds
£
13,111
3,095,202
(17,685)
3,077,517
3,090,628
3,090,628
3,090,628
-
3,090,628|2021
Total
funds
£
16,295
2,189,206
(19,535)
2,169,671
2,185,966
2,185,966
2,178,816
7,150
2,185,966| |---|---|---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 21 July 2023 ............................................. Mr M Akhtar - Trustee The notes form part of these financial statements Page 14 ## **KASHMIR ORPHAN RELIEF TRUST** ## **CASH FLOW STATEMENT For The Year Ended 31 October 2022** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash provided by investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|2022
£
901,985
901,985
(289)
4,300
4,011
905,996
2,189,206
3,095,202|2021
£
(784,569)
(784,569)
(1,100)
3,246
2,146
(782,423)
2,971,629
2,189,206| |---|---|---| The notes form part of these financial statements Page 15 ## **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE CASH FLOW STATEMENT For The Year Ended 31 October 2022** |**1.**
**RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM**
**Net income/(expenditure) for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Decrease in debtors
(Decrease)/increase in creditors
**Net cash provided by/(used in) operations**
**2.**
**ANALYSIS OF CHANGES IN NET FUNDS**|**OPERATING ACTIVITIES**
2022
2021
£
£
904,662
(805,237)
3,473
4,311
(4,300)
(3,246)
-
12,962
(1,850)
6,641
901,985
(784,569)| |---|---| |**Net cash**
Cash at bank and in hand
**Total**|At 1.11.21
£
2,189,206
2,189,206
2,189,206|Cash flow
£
905,996
905,996
905,996|At 31.10.22
£
3,095,202
3,095,202
3,095,202| |---|---|---|---| The notes form part of these financial statements Page 16 **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31 October 2022** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, 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 Charities Act 2011. 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. Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. ## **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. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Raising funds** Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. ## **Charitable activities** Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## **Governance costs** These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed expenses. ## **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 Motor vehicles - 20% on reducing balance Office equipment - 25% on reducing balance ## **Taxation** The charity is exempt from tax on its charitable activities. continued... Page 17 **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 October 2022** ## **1. ACCOUNTING POLICIES - continued** ## **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 charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **2. DONATIONS AND LEGACIES** ## **3.** ## **4.** |Donations
Gift aid
**INVESTMENT INCOME**
Deposit account interest
**RAISING FUNDS**
**Raising donations and legacies**
Staff costs
Rent, service charges and rates
Insurance
Telephone
Postage and stationery
Sundries
Subscriptions
Fundraising event costs
Advertising
TV channels and radio appeal costs
Travelling and subsistence
Bank and credit card charges
Service charges
Depreciation|2022
£
4,090,222
263,558
4,353,780
2022
£
4,300
2022
£
102,373
10,437
792
1,118
15,665
420
1,746
233,309
17,648
61,794
33,251
19,421
4,240
3,473
505,687|2021
£
2,988,236
232,196
3,220,432
2021
£
3,246
2021
£
67,411
10,340
776
1,275
9,184
-
1,610
97,436
2,927
77,320
18,073
18,445
4,167
4,311
313,275| |---|---|---| |||| continued... Page 18 **KASHMIR ORPHAN RELIEF TRUST** **NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 October 2022** ## **5. CHARITABLE ACTIVITIES COSTS** |Donations paid to beneficiaries
**6.**
**GRANTS PAYABLE**
Donations paid to beneficiaries
The total grants paid to institutions during the year was as follows:
Donations|2022
£
2,940,421
2022
£
2,940,421|Grant
funding of
activities
(see note
6)
£
2,940,421
2021
£
3,708,500
2021
£
3,708,500| |---|---|---| |**7.**|**SUPPORT COSTS**|| |---|---|---| |||Governance| |||costs| |||£| ||Other resources expended|7,310| ## **8. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 October 2022 nor for the year ended 31 October 2021. ## **Trustees' expenses** Trustees' expenses paid were £70 for the year ended 31 October 2022 and £2,603 for the year ended 31 October 2021. ## **9. STAFF COSTS** |Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Staff|2022
£
101,572
801
102,373
2022
5|2021
£
67,300
111
67,411
2021
4| |---|---|---| No employees received emoluments in excess of £60,000. continued... Page 19 ## **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 October 2022** |**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
Investment income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Donations paid to beneficiaries
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**11.**
**TANGIBLE FIXED ASSETS**
Fixtures
and
fittings
£
**COST**
At 1 November 2021
2,129
Additions
-
At 31 October 2022
2,129
**DEPRECIATION**
At 1 November 2021
1,523
Charge for year
121
At 31 October 2022
1,644
**NET BOOK VALUE**
At 31 October 2022
485
At 31 October 2021
606|
Unrestricted
fund
£
3,220,432
3,246
3,223,678
313,275
3,708,500
7,140
4,028,915
(805,237)
2,984,053
2,178,816
Motor
vehicles
£
25,100
-
25,100
12,249
2,570
14,819
10,281
12,851|Restricted
fund
£
-
-
-
-
-
-
-
-
7,150
7,150
Office
equipment
£
13,264
289
13,553
10,426
782
11,208
2,345
2,838|Total
funds
£
3,220,432
3,246
3,223,678
313,275
3,708,500
7,140
4,028,915
(805,237)
2,991,203
2,185,966
Totals
£
40,493
289
40,782
24,198
3,473
27,671
13,111
16,295| |---|---|---|---| ||||| continued... Page 20 ## **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 October 2022** ## **12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Social security and other taxes
Other creditors
Accrued expenses|2022
£
746
9,889
7,050
17,685|2021
£
371
12,024
7,140
19,535| |---|---|---| ## **13. MOVEMENT IN FUNDS** |**Unrestricted funds**
General fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|At
1.11.21
£
2,178,816
7,150
2,185,966|Net
movement
in funds
£
911,812
(7,150)
904,662|At
31.10.22
£
3,090,628
-
3,090,628| |---|---|---|---| Net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|Incoming
resources
£
4,351,943
6,137
4,358,080|Resources
expended
£
(3,440,131)
(13,287)
(3,453,418)|Movemen
in funds
£
911,812
(7,150)
904,662| |---|---|---|---| ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
**Restricted funds**
Restricted
**TOTAL FUNDS**|At
1.11.20
£
2,984,053
7,150
2,991,203|Net
movement
in funds
£
(805,237)
-
(805,237)|At
31.10.21
£
2,178,816
7,150
2,185,966| |---|---|---|---| continued... Page 21 **KASHMIR ORPHAN RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 October 2022** ## **13. MOVEMENT IN FUNDS - continued** Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**
**RELATED PARTY DISCLOSURES**
**Transactions with Trustees**
Trustees' expenses
Donations from Trustees'|Incoming
resources
£
3,223,678
3,223,678|Resources
expended
£
(4,028,915)
(4,028,915)
2022
£
70
-|Movement
in funds
£
(805,237)
(805,237)
2021
£
2,603
164| |---|---|---|---| ## **14. RELATED PARTY DISCLOSURES** Page 22 ## **KASHMIR ORPHAN RELIEF TRUST** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 October 2022** |**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
Gift aid
**Investment income**
Deposit account interest
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Wages
Pensions
Rent, service charges and rates
Insurance
Telephone
Postage and stationery
Sundries
Subscriptions
Fundraising event costs
Advertising
TV channels and radio appeal costs
Travelling and subsistence
Bank and credit card charges
Service charges
Depreciation of fixtures and fittings
Depreciation of motor vehicles
Depreciation of office equipment
**Charitable activities**
Grants to institutions
**Support costs**
**Governance costs**
Auditors' remuneration
Accountancy fees
Total resources expended
**Net income/(expenditure)**|2022
£
4,090,222
263,558
4,353,780
4,300
4,358,080
101,572
801
10,437
792
1,118
15,665
420
1,746
233,309
17,648
61,794
33,251
19,421
4,240
121
2,570
782
505,687
2,940,421
5,040
2,270
7,310
3,453,418
904,662|2021
£
2,988,236
232,196
3,220,432
3,246
3,223,678
67,300
111
10,340
776
1,275
9,184
-
1,610
97,436
2,927
77,320
18,073
18,445
4,167
152
3,213
946
313,275
3,708,500
4,800
2,340
7,140
4,028,915
(805,237)| |---|---|---| This page does not form part of the statutory financial statements Page 23