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2020-10-31-accounts

Al-Mustafa Welfare Trust[®]

Al Mustafa Welfare Trust International Ltd Annual Report & Financial Statements Year ended 31 October 2020 England & Wales Registered Charity No. 1118492

Contents

Charity Information 03
Trustees Annual Report 04
Message from the Chairman 04
Our Achievements 05
Global Coronavirus 07
Eye Care for the Poor 08
Eye Care Achievements 10
Eye Camps 11
Sponsor an Hafz 13
Caring for Orphans 15
Clean Water 17
Emergency & Disaster Relief 18
Burma 19
Other Projects 20
Education for All 21
School Maintenance 21
Ramadan Food Packs 22
Iftar in Bait-ul-Maqdis 23
Build your Palace in Paradise 24
Children’s Cleft Surgery 24
Honouring Our Elderly 26
Winter Distribution 26
Fidyah & Kafarah 27
Give a Little Extra 28
Trustee’s Annual Report (continued) 30
Independent Auditor’s Report 32
Statement of Financial Activities 36
Balance Sheet 37
Statement of Cash Flows 38
Notes to the Financial Statements 39

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Charity Information

Registered Charity Name Al Mustafa Welfare Trust International Ltd Charity Registration Number 1118492 Registered/Principal Office 110 High Street, First Floor Hounslow, Middlesex, London TW3 1NA Trustees Mr. Abdul Razzaq Sajid Mrs. Rizwana Latif Mrs. Shamama Idrees Ahmad (appointed on 15th November 2019) Mrs. Rubina Khawaja (appointed on 15th November 2019) Mr. Muhammad Hanif Tayyab (resigned on 15th November 2019) Auditors K K Associates Chartered Accountants 305 Crown House North Circular Road Park Royal London NW10 7PN Solicitors Lee Bolton Monier-Williams LLP 1 The Sanctuary, Westminster London SW1P 3JT Bankers Lloyds Bank Unit 8-9 Treaty Centre Hounslow TW3 1ES

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CHAIRMAN’S MESSAGE Dear friends. By God’s grace, we are now rounding up another year of serving humanity.

At Al Mustafa Welfare Trust, we are dedicated to alleviating poverty, ending suffering and spreading joy. Since 1983, we have been carrying out lifechanging projects for millions of people, helping individuals, families and communities build lives free from extreme poverty and misery.

Last year, your generous donations helped us reach thousands of people and provide hope, happiness and promote good health. We have carried out projects across the globe, including Pakistan, Gaza, Bangladesh and Burma, and responded to emergencies worldwide. This year, we reached a milestone of 100,000 free cataract surgeries. I am particularly moved by knowing that 100,000 people now have the gift of sight thanks to your support of Al Mustafa Welfare Trust. This report celebrates the great work we have done together. Thank you for your heartfelt support, from myself and the team at Al Mustafa.

Abdul Razzaq Sajid Chairman

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7 Million +

824,000 Hafiz Sponsored 4267

1246

734,420

20,000

88,000

40,000

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rj OQD 1111140 0

Global Coronavirus

EMERGENCY AID

All the communities we work in around the globe are suffering from unimaginable horrors, such as war, abject poverty or famine. The spread of Coronavirus in these communities will be absolutely catastrophic.

For refugee communities, safety and hygiene precautions will be virtually impossible. They already struggle with having enough food to eat. However, with the outbreak of Coronavirus, these communities will suffer even more as supplies run short, food prices rise and movement is restricted.

Al-Mustafa Welfare Trust has launched an Emergency Coronavirus Appeal to support those who are suffering the most worldwide, as a result of the outbreak.

We will be distributing emergency food & hygiene packs to families living in remote, under-developed areas as these are the people who are currently unable to access any food or medicine!

How you can help

£55 Family Food Pack for 1 Month – One Family

£75 Hygiene Kit & Family Food Pack for 1 month – One Family

£300

Emergency Relief Pack Hygiene | Ready Meals | Tent

We will also be supporting families living in refugee camps and fleeing war and persecution from places like Kashmir, Syria and Burma.

100% ZAKAT POLICY

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Eye Care for the Poor

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Over 1 in 4 people struggle with their eyesight, and a staggering 39 million people are blind.

Without proper eye care, millions live in darkness, even though 80% of all blindness can be cured. We’re working across the world to bring back the gift of sight to people in impoverished communities.

Thanks to your support, we have completed over 100,000 cataract surgeries for free , and helped millions more with glasses, medicine and treatment.

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How you can help

£45 provides for One Cataract Surgery

£135 provides for Three Cataract Surgeries

£450 provides for Ten Cataract Surgeries

How you can help£1500 provides for a Complete Eye Camp

£4000 provides for a Slit Lamp

in Numbers

CATARACT SURGERIES

HEPATITIS SCREENING

SCHOOL BASE EYE CAMPS

EYE GLASSES DISTRIBUTED

DISABLED CHILDREN SUPPORTED TO ATTEND SCHOOL

PEOPLE WITH DISABILITIES SUPPORTED IN BUSINESS

OPD (SCREENING)

Eye Camps

So far we have run 906 Eye Camps in 8 countries, providing those most in need with essential medical treatment.

PAKISTAN 492 GAZA, PALESTINE 58 BANGLADESH 187 BURMA 19 GAMBIA 86 SUDAN 11 KENYA 17 SRI LANKA 36

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4267 Hafiz Sponsored

79 Huffaz Led Taraweeh in 2019 511 Huffaz Teaching Qur’an 2421 Huffaz Studying Alam Courses

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Sponsor a Hafiz

Our Hifz Programme is your opportunity to transform the life of a vulnerable child forever and give them the gift of the Holy Qur’an.

This amazing project is also a Sadaqah Jariyah for you, bringing you ongoing, endless rewards Insha’Allah.

Our project enables vulnerable children to learn and memorize the Qur’an and become a guiding light for their community. We are currently supporting 800 students and provide donors with regular, tailored feedback.

For just £15 a month we provide the students with:

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How you can help

Donate towards the school fees and boarding of a poor child.

£15 sponsors a child for One Month.

£180 sponsors a child for One Whole Year.

DAILY MEALS

CLOTHING & UNIFORM

A QUALIFIED TEACHER

MEDICAL CARE

ADVANCED COMPUTING SKILLS

£540

Is the cost of a Full 3 Year Sponsorship.

LIFE SKILLS TRAINING

HIGH QUALITY LEARNING

SAFE ENVIRONMENT

ENROLMENT TO ALAM COURSES

"The best among you are those who learn the Qur’an and teach it to

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Caring for Orphans

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We provide hope for thousands of orphan children worldwide by giving them the best start in life. We’re helping build happy futures without fear of neglect, poverty or suffering.

We provide quality education, welfare, health treatment, meal provision and accommodation for orphans, and offer you the opportunity to write to your sponsored child. Orphan children can often feel like their futures are bleak and they are more vulnerable to abuse and forced labour.

How you can help

Donate towards food, education and health care of an orphan.

£28 Supports one orphan for One Month.

Ongoing Support for your Sponsored Child

We know that sponsoring an orphan can truly help transform their lives. We offer donors the opportunity to write letters and send gifts to their sponsored orphans in order to learn more about them. Through Al Mustafa Welfare Trust, you are able to send letters and gifts to your sponsored child to extend further support to them and their families. Al Mustafa Welfare Trust will be responsible for passing on your letters and gifts to the child, and we will facilitate any responses from them.

SEND A BIRTHDAY GIFT SEND GIFTS TO A FAMILY

1246 TOTAL ORPHAN SPONSORED

£168 Supports one orphan for Six Months.

£336

Supports one orphan for One Year.

134 CHILDREN ACHIEVED A+ IN ANNUAL EXAMS 16 CHILDREN ACHIEVED A+ AT DISTRICT LEVEL

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Clean Water

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When you give water, you give life. Millions of people are living without clean and safe drinking water, putting their lives at risk. Globally, 785 million people lack access to clean water.

Drinking dirty water can cause diseases such as cholera, typhoid and diarrhoea, which kills millions of people every year. Almost 1,000 children needlessly die every single day by drinking dirty, contaminated water. We provide water solutions across 9 countries including Pakistan, India, Bangladesh and Somalia, building electric motor tube wells, manual tube wells, hand-pumps and agricultural wells.

Saad bin Ubadah (ra) narrated. I asked the Prophet of Allah what charity is best? And he replied, ‘Giving water to drink’. [Sunan Ibn Majah]

How you can help

£200 will help install a Small Water Well

£300 will help install an Electric Water Well

Our Water Project achievements

9127 SMALL WATER WELLS 3,241 ELECTRIC WATER WELLS 229 COMMUNITY WATER WELL 211 LARGE WATER WELLS 50,000 DAILY CLEAN WATER PROJECT BENEFICIARIES 87 SCHOOL BASED WATER PROJECT 7 SANITARY FACILITIES 9 COUNTRY GOOD HYGIENE CAMPAIGN RUN CAMPAIGN

£1000 will help install a Large Water Well

£2500 will help dig a Community Water Well

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Emergency & Disaster Relief

Disaster can strike anytime, anywhere. It can cost lives and ruin entire societies. Natural disasters affect around 160 million people worldwide, and around 2 billion people live in conflict-struck areas. In times of crisis and disaster, Al Mustafa Welfare Trust provides fast, effective emergency aid; food, water and healthcare to those affected. We have helped over 171,000 people affected by disaster and emergencies.

171,000 PEOPLE REACHED WITH EMERGENCY RESPONSE

90,000 LIVES IMPROVED VIA DEVELOPMENT PROJECTS

20,000 + PEOPLE PROVIDED QURBANI MEAT

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Burma

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Since 2012, we have been providing life-saving aid to internal refugees in the state of Rakhine in Burma.

We have also been supporting thousands of Rohingya refugees in Cox’s Bazaar since August 2017. We have done a variety of work including providing food, clean water, shelter, medical camps, empowerment projects and funding ambulances.

How you can help

£55

provides for a one month Family Food Pack

£300

provides for a Family Survival Pack (food, water, shelter & health)

£1000

towards an Emergency Medical Camp treating upto 200 people

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Othe¢" Projects .11 ZAKAT POLICY

Education for all

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We aim to build primary schools in remote locations, as every child deserves the right to an education.

We are supporting several schools in Gaza, Pakistan and Bangladesh, making education accessible to hundreds of children. We are also providing hundreds of pupils with stationary, books and bags.

We have 5988 Student studying in 17 Schools.

School Maintenance

As well as building schools, we work to support and strengthen those schools already functioning but are poorly maintained.

Just £2,000 can help maintain a school and drastically improve the quality of education children are receiving.

How you can help

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£10[A Month to Support a ] Childs Education. £2,000 will help School for an Entire Year.Maintain a £6,000 will help build a rural Primary School.

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Over 88,000 Ramadan food packs were distributed last Ramadan.

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The Prophet (pbuh) said: ‘Whoever feeds afasting person will receive the reward like that of the fasting person, without any reduction in his own reward.’ [Tirmidhi]

Millions of people don’t have enough food for iftar in Ramadan. We distribute meals across Asia, Africa and the Middle East so nobody goes hungry in Ramadan. Last year, with your support, we distributed 18,000 food packs in the holy month.

How you can help

Provides a single family with a Food Pack for one month.

£55

£110 Will feed a month.two families for £550 Can feed a month.10 families for

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100% ZAKAT POLICY

Iftar in Bait-ul-Maqdis

We hold daily Iftar and Suhoor meals in Bait-ul-Maqadis (Al-Aqsa Mosque) in Jerusalam. This is the third holiest site in Islam.

1.6 million Palestinians do not have enough food to eat and often do not know where their next meal is coming from. We provide iftar and suhoor meals to Palestinians with your support, so we can make sure nobody is hungry this Ramadan.

How you can help

Will help feed 50 people £250 Will help feed 100 people £500 £1000 Will help feed 200 people

Build your Palace in Paradise

The Prophet Muhammad (pbuh) informed us that a Palace in Paradise would be awaiting those who build a mosque in this world, Insha’Allah.

Mosques are integral parts of Muslim communities all over the world, giving a space for Muslims to come together to pray, read Qur’an and to socialise. However, many Muslims living in developing countries do not have access to a mosque at all. You can change that.

How you can help

Help Renovate a Masjid

Mosques enable communities to come together and offer Muslims a place to pray, hold weddings and funerals and connect with other Muslims.

Provide this opportunity to Muslims around the world today.

£1500

Will purchase fans, lights, mussalah and a water cooler

£1000

To carpet a whole mosque

Build a Mosque

£7,000 SMALL MOSQUE SERVING 120 PEOPLE

£15,000 MEDIUM MOSQUE SERVING 300 PEOPLE

£22,000 LARGE MOSQUE SERVING 600 PEOPLE

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Children’s Cleft Surgery

Across the world, more than 170,000 children are born with cleft lips or palates every year.

We provide expert healthcare and support to babies, children and adults suffering from the painful consequences of cleft lip. Your donations will provide life-changing surgery and help a child smile again.

How you can help

£200[Cleft Surgery for ] [One Child] Cleft Surgery for Two Children £400 Cleft Surgery for Three Children £600

AMWT has performed over 8,000 cleft lip surgeries

Honouring Our Elderly

Our elders have paved the way for us, making sacrifices so we can live well.

Many are now vulnerable and falling ill, unable to get the care they need. As little as £14 a month helps us to provide healthcare, food and shelter to give older people the support they need.

Supporting 6 Elderly Care Homes Providing Daily Meals Providing Healthcare Facilities

Winter Distribution

For countless people across the globe, winter is a fight for survival.

Without warm clothing, shelter or hot food, winter can be deadly, and millions are at risk every year.

We work in Pakistan, Bangladesh, Burma, Somalia, Gambia and Gaza to provide life-saving assistance and help families through the brutal winter months.

In winter we also provide fuel for heating, distribute hygiene kits, provide winter protective clothing and deliver essential food packs.

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£14 Sponsors an Elder for One Month £168 Sponsors an Elder for One Year

£168

Distributed 40,000 Winter Packs

Provided Shelter Accommodation For 120 families

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Fidyah

When someone cannot fast in Ramadan and can’t make up the lost days afterwards (for example, because of ill health or pregnancy), then they should pay (fidyah) for someone else to be fed.

Kaffarah

Kaffarah is the compensation that you must pay if you deliberately miss or break a fast in the month of Ramadan without a valid reason.

What is the required payment?

How much do I need to pay?

To atone for the missed/intentionally broken fast, a person must fast continuously for 60 days.

£6 fidyah for each missed fast. This should provide one person with two meals or two people with one meal. If someone misses all the fasts of Ramadan, they would need to pay £180.

If they are unable to do that, then they have to feed 60 poor people at a rate of £6 per person (the cost of an average meal in the UK). This amounts to £360 kaffarah for each missed/ intentionally broken fast.

£6 per fast and £180 for whole month.

£360 for each missed or broken fast or two months continuous fasting with no break in between

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Give a Little Extra

Sometimes sponsors feel they’d like to send extra money to their sponsored child, individual, family or for the wider community.

£10 Plant an

Olive Tree

£45 for an

Orphans Gift Pack

£50 Provides a Sewing Machine

£145 Provides

Mobility Equipment

£150 Provides a Family One Goat

£300 Helps to Setup a Food Cart

£600 Provides a Family with One Dairy Cow

£1000 Helps Setup a Small Business

Give Hope - Set up Direct Debit for monthly donations

Please support us by giving just £5 per month, so that we can help needy, vulnerable and deserving people to live their lives, help them to survive and help them to improve their lives.

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Financial Statements 29

Al Mustafa Welfare Trust International Ltd Annual Report and Financial Statements for the Year Ended 31 October 2020

Trustees Annual Report

(Continued)

The trustees present their report and accounts for the year ended 31 October 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s governing document, the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard FRS 102 issued in 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The affairs of Al Mustafa Welfare Trust International Ltd are governed by the memorandum and articles of association written on incorporation on 4 October 2005 as amended by special resolution dated 27 April 2006. The charity is managed by a board of trustees. In the year ended 31 October 2020, the following persons served as trustees:

Mr. Abdul Razzaq Sajid Mrs. Rizwana Latif

Mrs. Shamama Idrees Ahmad (Appointed on 15th November 2019) Mrs. Rubina Khawaja (Appointed on 15th November 2019) Mr. Muhammad Hanif Tayyab (Resigned on 15th November 2019)

OBJECTIVES AND ACTIVITIES

The charity’s objective is the advancement of health and education, alleviation of poverty and serving humanity. In this regard, the charity continued to support and sponsor the health and education initiatives, poverty relief efforts and construction and repair of houses and accommodation. The source of income was public donations, including Gift Aid and payroll giving. No grant was received from any government organization.

FINANCIAL REVIEW

The donations received this year increased when compared to the previous year and were adequate to implement the programs.

RISK MANAGEMENT

The charity takes robust steps to manage the risks involved in achieving of its aim and objectives. The Board of Trustees reviews significant risks, and makes sure that they are taking appropriate measures to manage and reduce their impact. Managers manage resources, monitor performance and have also established, and manage, an effective internal control environment. This is supported by systems, processes and procedures.

PUBLIC BENEFIT

The charity develops strategic plans to make certain that we provide maximum public benefit and achieve our strategic objectives, which fall under purposes defined by the Charities Act 2011.

RESPONSIBILITIES OF THE TRUSTEES

The charity’s trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the income and expenditure of the charity for that period.

In preparing these financial statements, the trustees are required to:

(Continued...)

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Al Mustafa Welfare Trust International Ltd Annual Report and Financial Statements for the Year Ended 31 October 2020

Trustees Annual Report

(Continued)

RESPONSIBILITIES OF THE TRUSTEES (continued)

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations, 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.

and supporters have any complaints, they can register their complaints in person, by telephone, email, or online contact forms on our website or through postal letters. Any complaints have to be dealt in accordance with the process laid down in Code of Practice of the Fundraising Regulator.

We ensure that our staff are fully briefed about the code of conduct with regard to the protection of vulnerable people. Before any external facing fundraising activity is undertaken, we remind staff on best practice and the need to identify, respect, support, and protect vulnerable people.

AUDITORS

Each of the persons who is trustee at the date of approval of this report confirms that:

K K Associates, Chartered Accountants and Registered Auditors, have been re-appointed as auditors for the ensuing year.

FUNDRAISING

Our fundraising strategy is to use different modes of fundraising which include individual donor giving, community fundraising, live TV and radio appeals, events, direct mail, and online giving. The fund raising activities are performed by our staff. As a member of the Fundraising Regulator, we abide by its Fundraising Code of Practice.

We advise our donors and supporters that we are regulated by the Fundraising Regulator, and comply with their Code of Practice. We have a complaint registration policy and procedure in place. If donors

Signed on behalf of the trustees

Mr Abdul Razzaq Sajid

Trustee

110 High Street First Floor Hounslow, Middlesex London TW3 1NA United Kingdom

Date: 25 August 2021

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Al Mustafa Welfare Trust International Ltd Annual Report and Financial Statements for the Year Ended 31 October 2020

Independent Auditor’s Report to the Members of Al Mustafa Welfare Trust International Ltd

Opinion

We have audited the financial statements of Al Mustafa Welfare Trust International Ltd (the ‘charitable company’) for the year ended 31 October 2020 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

(Continued...)

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Al Mustafa Welfare Trust International Ltd Annual Report and Financial Statements for the Year Ended 31 October 2020

Independent Auditor’s Report to the Members of Al Mustafa Welfare Trust International Ltd (Continued)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

We have nothing to report in this regard.

(Continued...)

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Al Mustafa Welfare Trust International Ltd

Annual Report and Financial Statements for the Year Ended 31 October 2020

Independent Auditor’s Report to the Members of Al Mustafa Welfare Trust International Ltd (Continued)

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 30-31, 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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

(Continued...)

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Al Mustafa Welfare Trust International Ltd Annual Report and Financial Statements for the Year Ended 31 October 2020

Independent Auditor’s Report to the Members of Al Mustafa Welfare Trust International Ltd (Continued)

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charitable company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Kamal A. Kureshi Senior Statutory Auditor

For and on behalf of K K Associates, Statutory Auditor

305 Crown House North Circular Rad Park Royal London NW10 7PN

Date: 25 August 2021

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Al Mustafa Welfare Trust International Ltd

Statement of Financial Activities

(Including the income and expenditure account)

Year Ended 31 October 2020

Unrestricted
Funds
Note
£		 Unrestricted
Funds
Note
£		 Restricted
Total Funds
Total Funds
Funds
2020
2019
£
£
£		 Restricted
Total Funds
Total Funds
Funds
2020
2019
£
£
£		 Restricted
Total Funds
Total Funds
Funds
2020
2019
£
£
£
INCOME AND
ENDOWMENTS FROM:
Donations
2
Investments
3
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
4/5
Charitable activities
6/7
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 655,351
158
655,509
(330,131)
(86,342)
(416,473)
239,036
51,244
290,280		 3,733,512
-
3,733,512
(224,005)
(2,604,540)
(2,828,545)
904,967
248,214
1,153,181		 4,388,863
158
4,389,021
(554,136)
(2,690,882)
(3,245,018)
1,144,003
299,458
1,443,461		 1,968,883
252
1,969,135
(202,045)
(1,728,453)
(1,930,498)
38,637
260,821
299,458

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities

The notes on pages 39 to 45 form part of these financial statements.

36

Al Mustafa Welfare Trust International Ltd

Balance Sheet - 31 October 2020

Note 2020
£
£		 2019
£
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
CREDITORS: Amounts falling
13
due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
TOTAL NET ASSETS
16
FUNDS OF THE CHARITY
Restricted income funds
14
Unrestricted income funds
15
TOTAL CHARITY FUNDS
16		 15,706
289,381
1,157,758
1,447,139
(19,384)
1,427,755
1,443,461
1,443,461
1,153,181
290,280
1,443,461		 21,744
123,776
180,719
304,495
(26,781)
277,714
299,458
299,458
248,214
51,244
299,458

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime set out in Part 15 of the Companies Act 2006.

The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 and Charities Act 2011 with respect to accounting records and preparation of accounts.

These financial statements were approved by the Board of Trustees and are signed on their behalf by:

Mr Abdul Razzaq Sajid TRUSTEE

Al Mustafa Welfare Trust International Ltd

(England and Wales registered company number 05581896), (England and Wales registered charity number 1118492)

Date: 25 August 2021

The notes on pages 39 to 45 form part of these financial statements.

37

Al Mustafa Welfare Trust International Ltd Statement of Cash Flows Year ended 31 October 2020

2020
£		 2019
£
Cash fows from operation activities
Net income
Adjustments for:
Depreciation of tangible fxed assets
Other interest receivable and similar income
Changes in:
Trade and other debtors
Trade and other creditors
Cash generated from operations
Interest received
Net cash from operating activities
Cash fows from investing activities
Purchase of tangible assets
Net cash from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 1,144,003
7,273
(158)
(165,605)
(7,397)
978,116
158
978,274
(1,235)
(1,235)
977,039
180,719
1,157,758		 38,637
7,391
(252)
49,940
12,485
108,201
252
108,453
(15,922)
(15,922)
92,531
88,188
180,719

38

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements

Year ended 31 October 2020

1. ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the requirements of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland FRS102 issued in 2019, and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102.

b) Funds structure

The charity has restricted and unrestricted funds. Restricted funds are categorised as restricted based on the donors’ restrictions on the projects for which they must be used.

c) Income recognition

All income is recognised once the charity has received the funds. The Trustees consider this to be the appropriate and prudent principle.

d) Expenditure recognition

Expenditure is recognised when the funds have been disbursed. The charity follows a strict evaluation and approval procedure for charitable expenditure and funds are disbursed immediately upon approval.

e) Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Fixtures Fittings & Equipment - 20% straight line basis

2. DONATIONS

Unrestricted Funds Restricted Funds
Total Funds 2020
£
£
£		 Unrestricted Funds Restricted Funds
Total Funds 2020
£
£
£		 Unrestricted Funds Restricted Funds
Total Funds 2020
£
£
£		 Unrestricted Funds Restricted Funds
Total Funds 2020
£
£
£
Donations
Donations
Gifts
Gift Aid		 367,656
287,695

655,351		 3,733,512
–
3,733,512		 4,101,168
287,695
4,388,863

39

Notes to the Financial Statements Year ended 31 October 2020

Al Mustafa Welfare Trust International Ltd

Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2019
£
£
£
Donations
Donations
Gifts
Gift Aid		 184,565
121,175
305,740		 1,663,143
–
1,663,143		 1,847,708
121,175
1,968,883
Unrestricted
Total Funds
Unrestricted
Total Funds
Funds
2020
Funds
2019
£
£
£
£
3. INVESTMENT INCOME
Bank interest receivable		 158 158 252 252
Total Funds
Total Funds
2020
2019
£
£
4. EXPENDITURE ON RAISING
FUNDS
Expenditure on raising funds
(Note 5)		 554,136 202,045
Unrestricted
Restricted
Funds
Funds
£
£		 2020
£		 2019
£
5. EXPENDITURE ON RAISING
FUNDS (CONTINUED)
Advertising & promotional expenses
Printing, postage and stationery
HR and Support Cost
Total		 286,424
5,604
38,103
330,131		 131,057
50,264
42,684
224,005		 417,481
55,868
80,787
554,136		 124,378
16,984
60,683
202,045

40

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements Year ended 31 October 2020

Unrestricted Funds
Restricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
£
6. COSTS OF CHARITABLE
ACTIVITIES BY FUND TYPE
Emergency & Disaster
Health & Education
Interfaith & Culture
Poverty
Other Projects
Governance Cost (Note 9)		 -
-
-
-
35,019
51,323
86,342		 248,826
1,231,368
853,328
271,018
-
-
2,604,540		 248,826
1,231,368
853,328
271,018
35,019
51,323
2,690,882		 224,315
789,031
383,408
240,746
31,730
59,223
1,728,453
Activities Undertaken Directly
Support Cost
Total Funds 2020
£
£
£		 Activities Undertaken Directly
Support Cost
Total Funds 2020
£
£
£		 Activities Undertaken Directly
Support Cost
Total Funds 2020
£
£
£
7. ANALYSIS OF EXPENDITURE
ON CHARITABLE ACTIVITIES
Emergency & Disaster

Health & Education

Interfaith & Culture
Poverty

Other Projects

Governance Cost (Note 9)
 213,059
1,054,367
730,668
232,061
22,608
51,323
2,304,086		 35,767
248,826
177,001
1,231,368
122,660
853,328
38,957
271,018
12,411
35,019
-
51,323
386,796
2,690,882
Activities Undertaken Directly
Support Cost
Total Funds 2019
£
£
£		 Activities Undertaken Directly
Support Cost
Total Funds 2019
£
£
£		 Activities Undertaken Directly
Support Cost
Total Funds 2019
£
£
£
Emergency & Disaster
Health & Education
Interfaith & Culture
Poverty
Other Projects
Governance Cost (Note 9)		 178,081
669,120
355,207
215,523
31,730
59,223
1,508,884		 46,234
224,315
119,911
789,031
28,201
383,408
25,223
240,746
-
31,730
-
59,223
219,599
1,728,453

Support costs represent human resources, information technology, and other costs which are assigned and dedicated to charitable projects.

41

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements

Year ended 31 October 2020

2020
2019
£
£		 2020
2019
£
£		 2020
2019
£
£		 2020
2019
£
£		 2020
2019
£
£
8. NET INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
Depreciation
Auditors’ remuneration:
- audit of the fnancial statements		 7,273
7,200		 7,391
7,200
Unrestricted Funds
Total Funds 2020
Total Funds 2019
£
£
£
9. GOVERNANCE COSTS
Professional fees
Audit fees
Bank charges
Depreciation		 35,659
7,200
1,191
7,273
51,323		 35,659
7,200
1,191
7,273
51,323		 44,270
7,200
362
7,391
59,223
2020
£		 2019
£
10. STAFF COSTS AND EMOLUMENTSTotal staf costs were as follows:
Wages and salaries
Social security employer costs
Workplace pension employer costs		 407,195
39,437
8,811
455,443		 242,273
20,645
4,777
267,695

Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows:

2020 2019
Number of permanent staf 15 10

No employee received remuneration of more than £60,000 during the year (2019 - Nil).

42

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements Year ended 31 October 2020

Trustees and related party transactions:

During the year Mr Abdul Razzaq Sajid, Trustee of the Charity, was paid

remuneration of £15,673 (2019 – Nil) for his services to the Charity. This remuneration is approved by the Charity Commission.

Remuneration received by key management personnel during this year amounted to £64,111 (2019 - £39,052)

None of the other Trustees have been paid any remuneration or received any other benefits during the year. Travel and related costs relating to charity work in respect of three Trustees amounting to £13,438 (2019 - £12,432) was paid by the Charity. Except for this, no related party transaction took place.

Fixtures & Equipment
£		 Fixtures & Equipment
£		 Total
£
11. TANGIBLE FIXED ASSETS
COST
At 1 November 2019
Additions
Disposals
At 31 October 2020
DEPRECIATION
At 1 November 2019
Charge for the year
Eliminated on disposals
At 31 October 2020
NET BOOK VALUE
At 31 October 2020
At 31 October 2019		 69,616
1,235
-
70,851
47,872
7,273
-
55,145
15,706
21,744		 69,616
1,235
-
70,851
47,872
7,273
-
55,145
15,706
21,744

43

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements Year ended 31 October 2020

2020
2019
£
£		 2020
2019
£
£		 2020
2019
£
£
12. DEBTORS
Gift Aid receivable
Other debtors		 287,631
1,750
289,381		 122,026
1,750
123,776
Total Funds 2020
Total Funds 2019
£
£
13. CREDITORS: Amounts falling due within one year
Taxation, social security and pension
Accruals		 11,145
8,239
19,384		 9,553
17,228
26,781
Balance at
1 Nov 2019
£		 Balance at
1 Nov 2019
£		 Income
Expenditure
Balance at
31 Oct 2020
£
£
£		 Income
Expenditure
Balance at
31 Oct 2020
£
£
£		 Income
Expenditure
Balance at
31 Oct 2020
£
£
£
14. RESTRICTED INCOME FUNDS
Emergency & Disaster
Health & Education
Interfaith & Culture
Poverty
15. UNRESTRICTED INCOME FUNDS
General Funds		 38,834
107,790
74,720
26,870
248,214
51,244		 331,210
1,586,424
1,098,936
716,942
3,733,512
655,509		 (268,698)
(1,326,551)
(919,262)
(314,034)
(2,828,545)
(416,473)		 101,346
367,663
254,394
429,778
1,153,181
290,280

44

Al Mustafa Welfare Trust International Ltd

Notes to the Financial Statements

Year ended 31 October 2020

Unrestricted Funds
Restricted Funds
Total Funds
2020
2020
2020
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds
2020
2020
2020
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds
2020
2020
2020
£
£
£		 Unrestricted Funds
Restricted Funds
Total Funds
2020
2020
2020
£
£
£
16. SUMMARY OF ASSETS AND LIABILITIES OF
EACH CATEGORY OF FUNDS OF THE CHARITY
Fixed assets
15,706
-
15,706
Debtors
43,211
246,170
289,381
Cash at bank and in hand
233,851
923,907
1,157,758
Creditors (falling due within one year)
(2,488)
(16,896)
(19,384)
Net assets
290,280
1,153,181
1,443,461
Unrestricted funds
290,280
-
290,280
Restricted funds
-
1,153,181
1,153,181
Total charity funds
290,280
1,153,181
1,443,461
Unrestricted Funds
Restricted Funds
Total Funds
2019
2019
2019
£
£
£
Fixed assets
Debtors
Cash at bank and in hand
Creditors (falling due within one year)
Net assets
Unrestricted funds
Restricted funds
Total charity funds		 21,744
13,953
17,198
(1,651)
51,244
51,244
-
51,244		 -
109,823
163,521

(25,130)
248,214
-
248,214
248,214		 21,744
123,776
180,719
(26,781)
299,458
51,244
248,214
299,458

17. CONTROLLING PARTY

The charitable company is controlled by its members who are also its trustees.

18. CHARITABLE COMPANY STATUS

Al Mustafa Welfare Trust Ltd is a private company limited by guarantee without share capital. It is incorporated and registered in England & Wales.

45

100% ZAKAT POLICY