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2022-09-30-accounts

MIRZA SHARIF AHMAD FOUNDATION

Annual Report for the year ended 30th September 2022

Company Number: 5689730 (England & Wales) Charity Number: 1115258

MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees and advisors

Board of Trustees

Dr C N Ahmad - Chairman M M Ahmad Z A Choudhry F A K Dahri S A Farooqi FCA

Company Secretary

S A Farooqi FCA

Registered/Principal Office

Tahir House, 22 Deer Park Road, London SW19 3TL Tel: +44 (0) 208 544 7602 / 7627-8 Fax: +44 (0) 208 542 8896 Email: info@msaf.org.uk Web: www.msaf.org.uk

Registered Charity Number: 1115258 Company Registration Number: 5689730

Independent Auditor

RSM UK Audit LLP Chartered Accountants and Statutory Auditor Davidson House, Forbury Square, Reading, Berkshire RG1 3EU

Solicitors

Bishop & Sewell LLP 59-60 Russell Square, London, WC1B 4HP, United Kingdom

Bankers

National Westminster Bank plc. 2[nd] Floor G3, 2 Cathedral Hill, Guilford, GU1 32R, United Kingdom

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report

The trustees (who are also directors of the Charity for the purpose of the Companies Act) are pleased to present their report together with the financial statements of the Charity for the year. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity's governing document, the Companies Act 2006, the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (2019).

Mirza Sharif Ahmad Foundation (MSAF) is a charitable company limited by guarantee, incorporated on 27[th] January 2006 and governed by its Memorandum and Articles of Association of the same date.

The trustees are solely responsible for the decision making process. Based on this, they are considered to be the Charity's key management personnel.

Under the terms of the guarantee, each member has agreed to contribute £1 in the event that the Charity is wound up.

Our Objectives

The objects for which the Charity is established are:

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

Our Activities

Our activities are as follows:

Public Benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives (as set out above) and in planning future activities and setting appropriate policies for the year.

Financial Review

The Charity has been reliant on income from Ahmadiyya Muslim Jamaat International, which amounted to £1,925k during the year to 30[th] September 2022 (30[th] September 2021, £1,398k). £1,767k was expended on the charitable objectives during the year 2022 (30[th] September 2021, £1,431k). The Charity has had a reduction in borrowing to £1,913k (30[th] September 2021, £34,544k) from Ahmadiyya Muslim Jamaat International as a social investment which was invested mainly in the Islamabad redevelopment project and in 11 other properties (30[th] September 2021, 11 properties). On 1st January 2022, Mirza Sharif Ahmad Foundation signed a lease agreement with Ahmadiyya Muslim Jamaat International to dispose of Islamabad property. Under this agreement, Mirza Sharif Ahmad Foundation acted as the landlord, while Ahmadiyya Muslim Jamaat International is the tenant for a 99-year lease for a premium of 33 million GBP. This reduced the loan from Ahmadiyya Muslim Jamaat International to 1.9 million.

Achievements and Performance

The Board is proud to announce that the Charity has successfully achieved its objective of advancement of the Muslim faith by providing free residential accommodation to ministers of religion through 25 properties acquired so far.

The main objectives for future periods are to continue supporting the advancement of the Muslim faith by providing residence to religious scholars and scholarships for higher education.

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

Corporate Governance

The governing body of MSAF is the Board of Trustees, which comprises five members. The Board formally meets at least three times a year, but the trustees often meet informally. Potential Board members are selected from the worldwide Ahmadiyya Muslim Community. The existing Board then considers its existing skill and experience requirements to ensure that potential trustees are recruited to maintain a balanced range of professional, academic and necessary skills and experience.

The induction process for any newly-appointed trustee comprises an initial meeting with the trustees, followed by a review of the grantmaking process, powers and responsibilities of the Board. Information supplied as part of the introduction process includes copies of the latest Board minutes, a copy of the latest annual report and financial statements, a copy of the Memorandum and Articles of Association and a copy of the Charity Commission's guidance "The Essential Trustee: What you need to know, what you need to do". On an ongoing basis, trustees are encouraged to attend seminars and conferences about sector issues and matters relevant to the Charity.

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

Statement of Trustees' Responsibilities

Trustees' responsibilities in relation to the financial statements

The charity trustees (who are also the directors of the company 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 (the 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:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the Charity's financial position and enabling 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 maintaining the integrity of the corporate and financial information 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.

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

Risk and internal control

The trustees are responsible for ensuring that the Charity has an appropriate system of controls, financial and otherwise. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reassurance that:

As part of the Charity's risk management process, the trustees acknowledge their responsibility for the Charity's system of internal control and review its effectiveness. The trustees also recognise that such a system is designed to manage rather than eliminate the risk of failure to achieve the Charity's objectives and can only provide reasonable, not absolute, reassurance against material misstatement or loss.

The trustees have set policies on risk and internal controls, which cover the following:

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

A summary of the trustees' consideration of the major risks to which the Charity is exposed, together with the management of those risks, is as follows:

RISK APPROACH

Income is not available from funding.

MSAF to provide properties to Ahmadiyya Muslim Community, and in return, the Community would ensure any related costs are met.

Properties in the portfolio may get MSAF has taken out full insurance cover – damaged. the properties are maintained and supervised to a high standard and regularly reviewed.

Reserves

At present, any excess of income over expenditure is retained as unrestricted funds unless received as part of a specific grant or designated to a specific purpose by the trustees.

The balance on undesignated reserves as at 30[th] September 2022 is £100k (30[th] September 2021, £109k).

The balance on designated social investment funds as at 30[th] September 2022, is £9,310k (30[th] September 2021, £8,695k). This balance has been designated to reflect the external investment by a third party.

The restricted reserves of £Nil (30[th] September 2021, £Nil) are those allocated explicitly to particular property purchases.

It is the trustees' policy to establish a level of reserves sufficient to enable the Charity to operate as a going concern. This objective is specifically to ensure the Charity could cover one year's worth of grants payable from reserves, which for 2022 would equate to £218k.

Investments

Investment decisions are taken by the Board of Trustees, and funds are invested in properties.

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Trustees’ Report (continued)

Social Investments

The Charity has borrowed funds from Ahmadiyya Muslim Jamaat International for objectives similar to those of MSAF. This is to help the poor and needy and provide a reasonable standard of accommodation.

Grantmaking policies

The trustees award grants to other charities with similar objectives and the Ahmadiyya Muslim Community both in the UK, where they are most needed, having first been assessed by the trustees on a case-by-case basis. As a result, grants are made to institutions and individuals to ensure that work is done on all our objectives throughout the period.

The grant application process is designed to be as easy as possible whilst still drawing out the key information needed for a decision.

Auditor

RSM UK Audit LLP has indicated its willingness to continue in office.

Statement as to disclosure of information to the auditor

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees has confirmed that they have taken all the steps they should have taken as trustees to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

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

Approved and authorised for issue by the Board of Trustees and signed on its behalf on ____ by: 17th July 2023

Shajar Ahmad Farooqi FCA Trustee

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Independent Auditor’s Report to the members of Mirza Sharif Ahmad Foundation

Opinion on financial statements

We have audited the financial statements of Mirza Sharif Ahmad Foundation (MSAF) (the 'charitable company') for the year ended 30th September 2022 which comprise the Statement of Financial Activities (incorporating an income and expenditure account), the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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.

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Independent Auditor’s Report to the members of Mirza Sharif Ahmad Foundation

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 other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the Annual Report. 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.

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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Independent Auditor’s Report to the members of Mirza Sharif Ahmad Foundation

Responsibilities of trustees

As explained more fully in the Statement of Trustees' responsibilities set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 an auditor's report 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 the audit was considered capable of detecting

irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Independent Auditor’s Report to the members of Mirza Sharif Ahmad Foundation

in the financial statements, to perform audit procedures to help identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company's governing document and tax legislation. We performed audit procedures to detect noncompliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees' Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual

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MIRZA SHARIF AHMAD FOUNDATION (MSAF) for the year ended 30 September 2022

Independent Auditor’s Report to the members of Mirza Sharif Ahmad Foundation

transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council's website at http://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kerry Gallagher (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Davidson House, Forbury Square, Reading, Berkshire RG1 3EU

Date 19 July 2023

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Mirza Sharif Ahmad Foundation (MSAF) Statement of Financial Activities (incorporating Income and Expenditure Account) for the year ended 30 September 2022

----- Start of picture text -----
Total Funds Total Funds
to 30 to 30
Unrestricted September September
Funds 2022 2021
Note
INCOME FROM: £ '000 £ '000 £ '000
Donations and legacies 2 1,925 1,925 1,407
Other trading activities 3 448 448 394
TOTAL INCOME 2,373 2,373 1,801
EXPENDITURE ON:
Charitable activities 4 1,767 1,767 1,431
TOTAL EXPENDITURE 1,767 1,767 1,431
-
NET INCOME BEFORE
TRANSFERS 606 606 370
GROSS TRANSFERS BETWEEN FUNDS - - -
NET MOVEMENT IN FUNDS 606 606 370
RECONCILIATION OF FUNDS
Total funds at 1 October 8,804 8,804 8,434
Total funds at 30 September 9,410 9,410 8,804
----- End of picture text -----

14

Company number 5689730

Mirza Sharif Ahmad Foundation (MSAF) Statement of Financial Position for the year ended 30 September 2022

----- Start of picture text -----
As at As at
30 September 30 September
2022 2021
Note £ '000 £ '000
FIXED ASSETS
Tangible assets 8 12,098 44,186
CURRENT ASSETS
Debtors 9 95 104
Cash at bank and in hand 52 7
147 111
CREDITORS: amounts falling due
within one year 10 (139) (131)
NET CURRENT ASSETS 8 (20)
TOTAL ASSETS LESS CURRENT LIABILITIES 12,106 44,166
CREDITORS: amounts falling due
after more than one year 11 (2,696) (35,362)
NET ASSETS 9,410 8,804
FUNDS
Unrestricted Funds
Undesignated general funds 13 100 109
Designated property assets funds 13 9,310 8,695
9,410 8,804
----- End of picture text -----

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and have been approved on_______17th July 2023 and signed on their behalf by:

Ch. Nasir Ahmad Chairman

S. A. Farooqi FCA Trustee and Secretary

15

Mirza Sharif Ahmad Foundation (MSAF) Statement of Cash Flows for the year ended 30 September 2022

----- Start of picture text -----
2022 2021
Notes £'000 £'000
Cash inflow from operating activities:
Net cash used in operating activities 14 695 206
Interest paid (24) (18)
671 188
Cash flow from investing activities:
Purchase of tangible fixed assets (960) (1,787)
Net cash used in investing activities (960) (1,787)
Cash flow from financing activities:
Proceeds of new borrowings (social investment) 369 1,635
Proceeds of new borrowings (Other loans) -
Proceeds of new borrowings (bank loan) (35) (52)
Net cash used in financing activities 334 1,583
Net decrease in cash and cash equivalents 45 (16)
Cash and cash equivalents brought forward 7 23
Cash and cash equivalents carried forward 52 7
Relating to:
Cash at bank and in hand 52 7
Total 52 7
----- End of picture text -----

16

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

1 LEGAL STATUS

The charity is a company limited by guarantee and incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per voting member of the Charity .

The Charity 's objectives and aims are disclosed in the Trustees' report on page 2.

ACCOUNTING CONVENTION

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the requirements of the Companies Act 2006 and under the historical cost convention. The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the Charity 's governing document and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland published on October 2019 (the FRS 102 Charities SORP 2019).

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The Charity meets the definition of a public benefit entity under FRS 102.

GOING CONCERN

The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts. The trustees are satisfied that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about its ability to continue as a going concern. This conclusion has been formed as a result of the strong net assets position of the Charity at the year-end of £9,410k and from the continued support from Ahmadiyya Muslim Jamaat International by means of grants provided and the social investment funding for the Islamabad project. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

TANGIBLE FIXED ASSETS AND DEPRECIATION

Items of a capital nature are reviewed for their purpose and are capitalised where they are considered to provide an ongoing use to the Charity. Freehold property is valued at cost or on a valuation carried out at the initial date of transfer to MSAF.

Depreciation is charged against fixed assets commencing with the year of acquisition at rates estimated to write off their cost or valuation less any residual value over the expected useful lives which are as follows:

Fixtures, fittings and equipment 1 year Motor vehicles 4 years

Assets under construction are currently not being depreciated, due to the assets not being in use at the year end.

Any assets which are impaired in value are written down to their recoverable amount.

No depreciation is provided on freehold land.

Depreciation is not provided on freehold buildings as the residual value is deemed to render any depreciation charge immaterial.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments under section 11 of FRS 102. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument.

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument, and are offset only when the charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

17

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

Financial assets

Trade and other debtors which are receivable within one year and which do not constitute a financing transaction initially measured at the transaction value and subsequently measured at settlement value.

Financial liabilities

Basic financial liabilities, including trade and other payables are initially recognised at transaction value unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently measured at settlement value.

DONATIONS AND GIFTS

Donations and gifts are recognised in the Statement of Financial Activities when the charity has entitlement to the funds and it is probably that the income will be received and the amount can be measured reliably. Gifts in kind are recognised at market value.

RENTAL INCOME

Rental income is included in the Statement of Financial Activities when receivable.

GRANTS PAYABLE

Grants payable are expensed when events have created a valid expectation in other parties that the Charity will discharge its liabilities.

EXPENDITURE

Expenditure is recognised on an accruals basis as a liability is incurred.

APPORTIONMENT OF EXPENDITURE

Expenditure (including irrecoverable VAT) is apportioned under the guidance of SORP and analysed between costs of generating funds, charitable activities and governance costs:

Expenditure is recognised on an accruals basis as a liability is incurred.

The method of apportionment is as follows:

  1. Costs attributable solely to one activity are allocated to that activity;

  2. Costs which contribute directly to the output of more than one activity are apportioned on a reasonable, justifiable and consistent basis;

  3. Support costs are apportioned based on the following criteria:

General Management Total cost of activity
PR & Communication Total cost of activity
Administration Total cost of activity
Finance Total cost of activity
Currency translation gains Total cost of activity
Governance Total cost of activity

FOREIGN CURRENCIES

Transactions in foreign currency are recorded at the rate of exchange prevailing at the time of transaction. Foreign currency balances are translated into sterling at the exchange rates prevailing at the balance sheet date. Any gains or losses are included in the Statement of Financial Activities.

FUND ACCOUNTING

Unrestricted funds are donations and other incoming resources receivable or generated in furtherance of the charity ’s objectives without further specified purpose and are available as general funds. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for specific purposes.

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

18

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property plant and equipment, and the corresponding accounting policy for the useful economic lives for each class of assets.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The trustees do not consider any of these judgements or estimations to have any significant effect on the financial statements.

2
DONATIONS AND LEGACIES
Unrestricted
Restricted
Funds
Funds
£'000
£'000
Donations from institutions and individuals
1,925
-
In the year to 30 September 2022, £Nil donations (2021: £Nil) from institutions and individuals were restricted.
Donations and legacies are split as follows:
Income from UK sources
3
OTHER TRADING ACTIVITIES
Rent receivable		 Total Funds
2022
£'000
1,925
2022
£'000
1,925
2022
£'000
448		 Total Funds
2021
£'000
1,407
2021
£'000
1,407
2021
£'000
394

19

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

4
CHARITABLE ACTIVITIES
1. Propagation of Islam worldwide
2. Building of Mosques, Hospitals & Schools
3. Scientific Research & Development
4. Scholarships for Higher Education
5. Emergency Relief - Natural Disasters
6. Assistance to deserving and needy
Total charitable expenditure
Activity 1
£'000
Central properties
320
320
1,070
Activity 1
£'000
Ahmadiyya Muslim Jamaat International
965
Ahmadiyya Muslim Association, United Kingdom
214
Grants to individuals
-
1,179
76
Activity 1
£'000
General Management
128
Administration
136
264
281
Total payable for the year ended 30 September 2021
Total payable for the year ended 30 September 2021
Support costs
Grant funding of activities
Total payable for the year ended 30 September 2022
Total payable for the year ended 30 September 2022
Total payable for the year ended 30 September 2021
Activities undertaken directly
Total payable for the year ended 30 September 2022		 Activity 2
£'000
-
-
-
Activity 2
£'000
-
-
-
-
-
Activity 2
£'000
-
-
-
-		 Activities
undertaken
directly
£'000
320
-
-
-
-
-
320
Activity 3
£'000
-
-
-
Activity 3
£'000
-
-
-
-
-
Activity 3
£'000
-
-
-
-		 Grant
funding of
activities
£'000
1,179
-
-
-
-
4
1,183
Activity 4
£'000
-
-
-
Activity 4
£'000
-
-
-
-
-
Activity 4
£'000
-
-
-
-		 Support
costs
£'000
264
-
-
-
-
-
264
Activity 5
£'000
-
-
-
Activity 5
£'000
-
-
-
-
-
Activity 5
£'000
-
-
-
-		 Total
cost
2022
£'000
1,763
-
-
-
-
4
1,767
Activity 6
£'000
-
-
-
Activity 6
£'000
-
-
4
4
4
Activity 6
£'000
-
-
-
-		 Total
cost
2021
£'000
1,427
-
-
-
-
4
1,431
Total
£'000
320
320
1,070
Total
£'000
965
214
4
1,183
80
Total
£'000
128
136
264
281

Of the total charitable expenditure in the year to 30 September 2022, £802,000 was attributable to unrestricted funds and £nil to restricted funds.

Included within support costs are governance costs amounting to £9,000 (2021: £9,000) . These costs are apportioned on the total cost of each activity.

5 AUDITOR'S REMUNERATION

The auditor's remuneration amounted to £21,000 (2021: £17,000). The remuneration received for non audit services amounted to £ 2,484 (2021: £ 4,041).

20

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL
Wages and salaries
National Insurance
Pension		 2022
£'000
123
4
1
128		 2021
£'000
90
4
1
95

The average number of employees during the year was 4 (2021: 4). During the year 3 (2021: 3) employees were engaged in the propagation of Islam worldwide with 1 employee engaged in administration. No employees received emoluments in excess of £60,000 during either year.

The charity considers its Board of Trustees as its key management personnel. No members of the key management personnel received remuneration in the current or previous year.

The trustees did not receive any emoluments or reimbursed expenses during either year.

7 TAXATION

The company is a registered charity and as such its income and gains falling within Section 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

8
TANGIBLE FIXED ASSETS
COST
At 1 October 2021
Additions
Disposal
At 30 September 2022
DEPRECIATION
At 1 October 2021
Depreciation charge
At 30 September 2022
NET BOOK VALUE
At 1 October 2021
At 30 September 2022		 Freehold
land &
buildings
£'000
44,562
949
(33,000)
12,511
505
-
505
44,057
12,006		 Plant &
machinery
£'000
119
-
-
119
22
30
52
97
67		 Fixtures,
fittings &
equipment
£'000
238
11
-
249
238
8
246
-
3		 Motor
vehicle
£'000
53
-
-
53
21
10
31
32
22		 Total
£'000
44,972
960
(33,000)
12,932
786
48
834
44,186
12,098

The net book value of fixture, fittings & equipment at 30 September 2022 represents fixed assets used for administration purposes.

9 DEBTORS

Other debtors
Advance to staff
Advance to Centenary Construction
Prepayments
Loan repayable in more than one year		 2022
£'000
4
1
-
40
45
50
95		 2021
£'000
22
-
1
31
54
50
104

21

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

10 CREDITORS - amounts falling due within one year

Other Creditors
Other tax and social security
Payroll due to employees
Accruals
Bank Loan due less than 1 year
CREDITORS - amounts falling due in more than one year
Loan from Ahmadiyya Muslim Jamaat International
Bank Loans		 2 - 5
YEARS
724
724
DU		 MORE THAN
5 YEARS
1,913
1,913
E		 2022
£'000
10
4
3
63
59
139
2022
£'000
Total
1,913
783
2,696		 2021
£'000
14
1
3
54
59
131
2021
£'000
34,544
818
35,362

11 CREDITORS - amounts falling due in more than one year

Ahmadiyya Muslim Jamaat International, a registered charity , has provided funds to MSAF. Their objective is to help the poor and needy and providing a reasonable standard of accommodation. MSAF has invested these funds in residential properties. AMJ International retains a formal charge on these properties and its trustees retain the right to charge interest. No interest has been charged for the year ended 30 September 2022 (2021: Nil). The loan is not due for repayment within 12 months from the balance sheet date.

The full amount of the bank loans are secured against properties purchased the value of which is included within freehold land and buildings in note 8.

12 FINANCIAL INSTRUMENTS

Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
13 FUNDS
Year Ended 30 September 2022
Unrestricted funds
Undesignated general funds
Designated fund for building projects
Designated property assets funds
Year Ended 30 September 2021
Unrestricted funds
Undesignated general funds
Designated property assets funds		 Balance
b/fwd
£'000
109
-
8,695
8,804
Balance
b/fwd
£'000
(274)
8,708
8,434		 Incoming
Resources
£'000
2,373
-
-
2,373
Incoming
Resources
£'000
1,801
-
1,801		 Outgoing
Resources
£'000
(1,767)
-
-
(1,767)
Outgoing
Resources
£'000
(1,431)
-
(1,431)		 2022
£'000
55
2,835
Transfers
£'000
(615)
-
615
-
Transfers
£'000
13
(13)
-		 2021
£'000
73
35,493
Balance
c/fwd
£'000
100
-
9,310
9,410
Balance
c/fwd
£'000
109
8,695
8,804

The transfers are to reflect the balance on the building project fund and additions made to properties in the year

22

Mirza Sharif Ahmad Foundation (MSAF) Notes to the financial statements for the year ended 30 September 2022

13 FUNDS (continued)

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Year Ended 30 September 2022
Tangible fixed assets
Long term Investments
Current assets
Current liabilities
Long term liabilities
Net assets
Year Ended 30 September 2021
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Net assets		 Un-
designated
general funds
Designated
property assets
funds
£'000
£'000
92
12,006
147
-
(139)
-
-
(2,696)
100
9,310
Un-
designated
general funds
Designated
property assets
funds
£'000
£'000
129
44,057
111
-
(131)
-
-
(35,362)
109
8,695
Unrestricted
Unrestricted		 2022
Total
£'000
12,098
-
147
(139)
(2,696)
9,410
2021
Total
£'000
44,186
111
(131)
(35,362)
8,804		 2021
Total
£'000
44,186
-
111
(131)
(35,362)
8,804
2020
Total
£'000
42,494
98
(379)
(33,779)
8,434

Undesignated general funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

The designated building project fund are funds utilised by the charity towards their building projects, this includes funds provided by third parties.

The designated property fund represents the amount of unrestricted funds attributable to the charity ’s freehold property.

14 NET CASH FLOW FROM OPERATIONS

Net income for year
Depreciation
(Increase) in debtors
(Decrease)/Increase in creditors
Interest paid
Net cash flow from operating activities		 2022
£'000
606
48
9
8
24
695		 2021
£'000
370
95
(29)
(248)
18
206

15 Related Party Transactions

No related party transactions occurred during the period (2021: Nil).

23