Company Registration Number - 5567478 

The Charity Registration Number is :-    1119977 

Muslim Research and Development Foundation 

Report and Accounts 

31 December 2022 




## **Muslim Research and Development Foundation** 

## **Report and accounts for the year ended 31 December 2022** 

## **Contents** 

||**Page**|
|---|---|
|**Charity information**|1|
|**Trustees' Annual Report**|1|
|**Statement of directors' responsibilities**|9|
|**Independent Examiner's Report**|10|
|**_Funds Statements:-_**||
|Statement of Financial Activities|12|
|Statement of Financial Activities - Prior Year statement|13|
|Movements in funds|14|
|Income and Expenditure account|15|
|**Balance sheet**|16|
|**Cash flow statement**|17-18|
|**Notes to the accounts**|19|





## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

The Trustees present their Report and Accounts for the year ended 31 December 2022, which also comprises the Directors' Report required by the Companies Act 2006. 

## **Reference and administrative details** 

## _**The charity name.**_ 

The legal name of the charity is:- Muslim Research and Development Foundation. 

The charity is also known by its operating name, MRDF. 

## _**The charity's areas operation and UK charitable registration.**_ 

The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1119977. 

The charity does not operate in any overseas jurisdictions. However it has partners, which it supports in Denmark, Germany, Norway, Sweden, The Netherland and Switherland. 

## _**Legal structure of the charity**_ 

The charity is constituted as a company limited by guarantee, registered under the Companies Acts . The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation. 

The governing document is dated 03 June 2007 

There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law. 

By operation of law all, trustees are directors under the Companies Act 2006 and all directors are trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation. 

The trustees are all  individuals. 

## **The principal operating address, telephone number, email and web addresses of the charity are:-** 

56 Greenfield Road 

London, E1 1EJ 

Telephone 02032460072 

Email Address enquiries@mrdf.co.uk      Web address www.mrdf.co.uk 

The registered office of the charity for Companies Act purposes is the same as the operating address shown above. 

## **The Trustees in office on the date the report was approved were:-** 

M Khalid 

F Haibatan 

Y Patel 

## **The following persons served as Trustees during the year ended 31 December 2022 :-** 

The trustees who served as a trustee in the reporting period were as shown above,  and there were no changes during the year, or in the period between the year end and the approval of the accounts. 

At the Annual General Meeting all the Trustees  retire as trustees, but are eligible for reappointment. 

All the trustees are also members of the charity. 

1 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **Objects and activities of the charity** 

## _**The purposes of the charity as set out in its governing document.**_ 

The Charity's objectives and principal activities as set out in the Memorandum and Articles of Association continue to be that of: 

- 1) To facilitate the development of leadership skills within the Muslim community. 

- 2) The advancement of research into Islamic solutions to challenges faced by Muslims communities, as well as the general population in the UK. 

- 3) To facilitate Muslims furthering their knowledge. 

- 4) To produce Islamic media. 

- 5) To undertake any charitable activity in the pursuit of the above objectives. 

## _**The main activities undertaken in relation to those purposes during the year.**_ 

- 1) Maintaining three cycles of the Sabeel development programme within the UK. 

- 2) Maintaining 2 cycles of the Sihaab retreats programme in the UK 

- 3) Offering support and expertise in the delivery of our tarbiyyah (cultivation) services to our associates in Denmark, Holland, and Germany. 

- 4) Delivering educational services to the following endorsed projects: 

- a. Muslim Youth Initiative - offering syllabus assistance 

- b. Family Events - supplying content and direction on topic presentations for retreats. 

- c. Islamic Council of Europe - furnishing Sharia consultants. 

- d. Islam21c - Authoring articles addressing pressing community concerns. 

- 5) 'Fatwa line', a national phone-in service for Sharia guidance. 

## _**The main activities undertaken during the year to further the charity's purpose for the public benefit.**_ 

Our endeavors are rooted in our charitable goals, primarily catering to the Muslim community while remaining inclusive for the broader public to participate and reap the benefits. We are committed to fortifying the Muslim community and offering guidance through the challenges they encounter, a mission that became even more critical during the pandemic. Given the inability to host physical events or courses, we pivoted towards innovative communication methods to deliver the necessary guidance and direction. 

In 2022, we continued the approach we adopted in 2021 for our activities across the UK and collaborations with European partners. 

Our straightforward and transparent policies ensure everyone can benefit from our services. We stayed true to our charitable objectives by offering tangible benefits, especially to those who found our service or activity fees financially challenging, encompassing individuals facing economic hardships. 

Our principles on accessibility and public welfare underscore our belief: no one should be denied the benefits of our services or activities due to their financial constraints. To ensure this inclusive access, we've established specific guidelines since our foundation. 

In general, we follow the below guidelines with access to our services: 

1. Fees for any service/activity must follow the MRDF fees policy. The policy has at its core the aim of charging an appropriate entry level cost for all the services offered. The charity aims to provide these services at a minimum cost, even though some services generate profit, they do so following a policy of proportional discounts. Fees are always approved by the trustees in line with the policy. 

2. The policy provides students and those on low income* with set discounts within each service/activity. 3. The policy also includes provisions for instalments for those unable to meet the fees of an activity/service. This provision is there for any participant who is unable to attend an activity/service due to being unable to afford the fee, the participant will be allowed to pay in instalments in a jointly agreed payment plan. This payment plan is set up by the administration department and will have further provisions for non-payment of fees if the hardship of returning the fees is overburdening on the participant. This further provision needs a direct approval from the trustees and the finance manager. 

2 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## _**The main activities undertaken during the year to further the charity's purpose for the public benefit (continued)**_ 

We will never prevent those unable to pay due to poverty from having the opportunity to benefit from our activities or services. 

We carry out regular checks to make sure there are no private benefits that are especially given to members of the charity or its trustees. All such benefits (whether material or not) are the same as provided to the general public and in those cases where benefits are gained these are incidental. 

a)To transition our services to online platforms and conduct events that adhere to social distancing guidelines. 

b)To adhere to the fundraising strategies from 2021 for Ramadan 2022. 

c)To prioritize a stable financial footing, emphasizing a debt-free stance and ensuring an adequate working balance for the first quarter of 2023. This will lead to maintaining financial health without ending the fiscal year in a deficit. 

d)To collaborate with our patrons to discern their educational and guidance requirements during the transition from in-person interactions to lockdown conditions. 

e)To refine our vision and mission, conveying a clear path in line with our core values to our staff, volunteers, and primary stakeholders. 

The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity. 

## **The  short term and longer term aims and objectives.** 

a) To enhance our investment in digital platforms to better facilitate our services and events. 

b) To deepen our ties with UK-based Muslim charities and entities that align with or advance our charitable goals. 

c) To collaborate with leading online fundraising platforms to optimize the donor experience. 

d) To actively engage volunteers in addressing the evolving demands of online educational services. 

e) To revisit and update risk assessments for our primary projects, keeping in mind the revised methods of delivering our charitable services. 

f) To devise a financial strategy tailored to the post-pandemic scenario for the organisation. 

g) To explore the creation of new online courses, adapting from in-person to digital service delivery, building upon our 2021 initiatives. 

## **How the activities undertaken during the year contributed to the achievement of the aims and objectives.** 

## **2022 - A Year of Impact and Transformation** 

Alhamdulillah, 2022 emerged as a milestone year for the Muslim Research & Development Foundation (MRDF). Reflecting on the past months, it is clear that our efforts were not only widespread but also deeply impactful, serving as a beacon of hope and guidance for the Muslim community. 

## **Sabeel Cultivation Retreats: Nurturing Knowledge and Spirituality** 

One of the crowning achievements of 2022 was the expansion and success of our Sabeel cultivation retreats. Recognising the dire need for quality education and spiritual nourishment in the community, these retreats were designed to provide attendees with a harmonious blend of spiritual rejuvenation and academic learning. 

Throughout the retreats, participants engaged in comprehensive study sessions, immersive workshops, and spiritual discourses that spanned across various subjects — from understanding the deeper meanings of the Qur'an to learning about the needs or the Muslim communities in the West. We were blessed to have our esteemed scholars and educators, grace our sessions, ensuring that attendees received knowledge from authentic and trusted sources. 

Moreover, these retreats were more than just learning hubs. They were a sanctuary for individuals seeking spiritual solace, fostering a sense of unity, brotherhood, and sisterhood among attendees. The tranquil settings, combined with spiritual moments of reflection, allowed many to reconnect with their Creator, away from the hustle and bustle of daily life. 

3 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **How the activities undertaken during the Statement of Financial Activities for the period ended 31 December 2022 contributed to the achievement of the aims and objectives.** 

## **Guidance and Support: Strengthening the Fabric of the Muslim Community** 

2022 also saw MRDF playing a pivotal role in offering guidance and support to the Muslim community in the UK at various crossroads in their lives. We understood that the challenges faced by the community were multifaceted — ranging from mental health issues to grappling with identity in a constantly changing world.To address this, we carried on our support for the various initiatives we work with, through seminars, workshops and one to one support sessions. This support was specifically tailored to provide solutions rooted in Islamic teachings while remaining relevant to the contemporary challenges of the 21st century. Whether it was providing counseling advisors for distressed individuals, workshops on parenting in the digital age, or seminars on financial literacy from an Islamic perspective, MRDF ensured that the community had the resources and guidance they needed. 

Furthermore, we enhanced our online presence, understanding that the digital realm is pivotal in reaching a broader audience. Through webinars, online courses, and interactive sessions, we ensured that distance was not a barrier for anyone seeking knowledge or support. 

## **In conclusion** 

The strides made by MRDF in 2022 serve as a testament to our unwavering commitment to the upliftment and empowerment of the Muslim community. Alhamdulillah, with the grace of Allah and the relentless dedication of our team, we hope to carry forward this momentum, ensuring that every Muslim, irrespective of their background, has the tools and resources they need to thrive both in their deen and in their daily lives. 

## **Resources used  in the activities undertaken during the year.** 

The charity has increased its voluntary income from the previous year. This has allowed it to continue to hold various educational courses, provide an islamic arbitration service for Muslim in the UK, and provide lectures to external charities.  The charity has managed to help over 3000 individuals, which is an increase on the prior period. To enable the charity to provide such services it expended £732 549 (2021 £535,863). 

## **The contribution of volunteers during the year.** 

In 2022, our charity's reliance on volunteers underwent a transformation, shaped by the ongoing impacts of the pandemic. Volunteers continue to be the bedrock of our efforts, playing a pivotal role in fulfilling the charity's goals. Their dedication is paramount, and without them, our range of services and activities would be unattainable. As our focus remained on digital initiatives, we incorporated the expertise of volunteers proficient in online platforms. Throughout the year, over 15 volunteers collaborated with our central team to facilitate our services. Notably, after observing a surge in volunteer participation for our online retreats in 2021, 2022 mirrored this trend, especially with the resumption of in-person events and retreats. Much like in 2021, our objective for 2022 was to invigorate and fortify our volunteer base in response to the evolving scenario. We are grateful and believe we successfully met this aim. 

## **The main achievements and performance of the charity during the year.** 

a. The provision of over 36 Sabeel physical retreats in the period 

b. The provision of 6 Sihaab physical weekend retreats in the period 

c. The publication of 1 book and redistribution of another 

## **Fundraising activities during the year.** 

The Charity focuses it fundraising activities to tie into the the Month of Ramdan and the other Islamic holidays, these being: 

1. Ramadan general campaign 

2. 10 days of Dhul-Hijjah campaign 

3. Annual general online campaign 

The charity also has a part time fundraising manager that will reach out to potential donors via a high net worth individual campaign.This campaign is on going throughout the year. 

4 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **The difference the charity's performance during the year has made to the beneficiaries of the charity.** 

Beneficiaries of the charity have been able to grow in their understanding of key Islamic principles and how to apply them in a modern context through publications that were created and delivered by our researchers and instructors. They have also learnt about the importance of becoming effective contributors to society and how personal effectiveness is so important to communal effectiveness. The charity also provided guidance on how to build and maintain better relationship between spouses, and for parents with children. This especially important after the negative effect that this area had during the pandemic. Feedback received from service users show how marriages have been saved and families kept together and even if spouses did decide to split they did so in an amicable way. Thousands benefited from articles that were either written by our researchers or guided through advice that was given and videos that were published tackling an array of topics including the Islamic view on mental health. 

## **The significant charitable activities undertaken in the year.** 

The charity undertook the following key events in the year a) the provision of over 36 sabeel retreats. 

b) the provision of 6 sihaab in person weekend retreats 

## **How the achievements during the year measure up to the objectives set.** 

- 1) Sabeel Retreats programme supporting 5 European retreats with its partners. 

- 2) Sabeel Development Programme provided over 12 weekend retreats in the UK. 

- 3) Sabeel Development Programme UK had a total of 500 students for all cycles. 4) Provided guidance to over 25 national UK based charities/organisations. 

5) Fatwa line, answering questions from Muslims and non-Muslims alike about aspects of Islam that affect their daily lives. Helping over 2200 people in 2022, a decrease due the opening of similar services post Covid-19. 

6) The provision of 8 Sharia advisors to help in arbitration for the Islamic Council of Europe. 7) Running 9 weekend live webinars, Saturday, and Sunday, 800 attendees in total. 8) Running 4 weekend courses, Friday to Sunday, 200 attendees in total 9) Delivering 21 lectures for external organisations (during Ramadan & Dhul Hijjah period). Many of these lectures were delivered in person, and 10 delivered online. 

## **The performance of material fundraising activities during the year against the fundraising objectives set.** 

The year witnessed commendable achievements in our fundraising initiatives. We not only met our fundraising targets but also witnessed substantial growth both in terms of the funds raised and the number of donors participating. It is heartening to note that a significant majority of our high-net-worth donors remained steadfast in their commitment, showcasing their unwavering support and belief in our cause. Every campaign we launched successfully reached, and in some instances exceeded, its predefined targets, Alhamdulillah. 

Although we encountered some operational challenges, such as the need to cancel our anticipated 'sponsored trek' due to unforeseen circumstances, we managed to adapt and navigate the situation without compromising our overarching objectives. The resilience and flexibility displayed by our team and the unwavering support of our donors have been instrumental in ensuring our success during the past year. We remain optimistic about the future, buoyed by the momentum we've built and the continued commitment of our donor community. 

## **Structure, governance and management of the charity** 

The Charity is a company limited by Guarantee and was incorporated on 19 September 2005 and registered as a Charity in July 2007. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. 

The Directors of the company are also Trustees. 

5 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **The methods used to recruit and appoint new charity trustees.** 

The Charity utilises all avenues of recruitment  - using specialist agencies, contacts and word of mouth, to gather a list of potential candidates. The candidates are then short-listed and interviewed. The process is managed by the CEO. 

## **The policies and procedures for the induction and training of trustees.** 

New Trustees are appointed based on experience in the areas pertinent to the Charity's objectives and selected by the Board of Trustees. Each new trustee undergoes an orientation day to brief them on their legal obligations under the Charities and Companies Acts. They are provided with the Charity Commission's guidance and a copy of the Memorandum of Association. 

## **The charity's organisational structure.** 

The Charity has a Board of Trustees that are ultimately responsible for the running and management of the Charity.  The Board of Trustees is kept informed by an advisory committee on the operational activities of the Charity. The advisory board has been delegated the day-to-day operational activity to a managment committee headed by Mr Y Patel, Chief Executive Officer (CEO).  The CEO, is also a Trustee and Director of the charitiable company. In his role as the CEO he reports to the advisory board. The management committee consists of six individuals, including the CEO. 

## **How the charity makes decisions and how decisions are delegated.** 

The management committee has been authorised to make decisions that impact the daily activities of the Charity, its smooth running and operations. However any decision that will have a material impact - financial or otherwise - is referred to the Trustees. 

## **The Chief Executive Officer and other senior management personnel to whom day to day management is delegated** 

During the period and up to the signing of the financial statement the following applied: Mr Y Patel - Chief Excutive Officer Mr W Maqbool - Head of Finance Mr A Ali - Fundraising manager Mr A Hussain - Head of operations Mr F Haibatan - Head of Islamic development Mr J Rashid - Head of legal and communications 

## **Setting pay and remuneration of key management personnel** 

The renumeration of key management is set by the Trustees and salaries reflect the nature of the Charity, it field of expertise as well as the financial resources available to the Charity. 

## **Key Advisors** 

Bankers Solicitors Accountants 

HSBC Bank plc, 126 High Road Ilford, Essex IG1 1DA Saracens Solicitors, Sentinel House, 16 Harcourt Street, London Honest Advisory, 1 Tylecroft road, London, SW16 4BL 

6 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **Financial review** 

## _**The charity's financial position at the end of the year ended 31 December 2022**_ 

The financial position of the charity at 31 December 2022 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:- 

|**Total Funds**<br>Unrestricted Revenue Funds available for the<br>general purposes of the charity<br>**Net income**|**2022**<br>**£**<br>(6,700)<br>50,784<br>50,784|**2021**<br>**£**<br>25,292<br>57,484<br>57,484|
|---|---|---|



## **Financial review of the position at the reporting date, 31 December 2022** 

The Trustees consider the financial performance of the Charity to be satisfactory. The current year efforts to increase funding has resulted in increased costs, but has also increased donations. The services provided have also increased resulting in higher primary purpose income.However this has lead to increased costs, leading to a deficit of £6,700 compared to the prior year surplus of 2021 £25,292.  The Trustees are continually assessing and evaluating performance in the light of the challenges - financial and non financial - faced by the charity. The net reserves at the year end was £50,784 (2021: £57,484) all of which are unrestricted funds. There were no changes in fixed assets. 

## **Policies on reserves.** 

The Trustees have reviewed the requirement to maintain a minimum reserve, in light of the main risks faced by the charity and established a reserve policy. It has established a policy that reserves should cover three months of unavoidable costs. This target level is a reserve of £30,000 and it is fully anticipated that this will allow the Charity to meet its fixed and unavoidable costs. 

## **Availability and adequacy of assets of each of the funds** 

The board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund. 

## **Significant events which have affected the financial performance and the financial position.** 

Throughout the past financial year, we've navigated a series of impactful events that influenced our financial landscape. 

A primary challenge we faced was the rise in living costs. This not only had implications for our internal structures but also affected the beneficiaries we serve. As living costs rose, the needs and priorities of our community underwent shifts, leading us to recalibrate our initiatives accordingly. 

The emergence of alternative charitable propositions also demanded our attention. Recognising the evolving preferences of our donor community, we adjusted our strategies and ventured into new modes of engagement, capitalising on fresh avenues of support. 

The decision to cancel certain events, such as the 'sponsored trek', did alter our projected financial trajectory. However, we responded proactively, pivoting towards alternative fundraising avenues to ensure that our objectives were not compromised. 

In sum, this year presented us with challenges that tested our resilience and adaptability. Our unwavering commitment to our cause and our flexibility in approach have been instrumental in ensuring the continued stability of our organisation and setting the stage for future successes. 

7 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **The major risks to which the Charity is exposed and reviews and systems to mitigate them.** 

The Management Committee has conducted a review of the major risks to which the charity is exposed. 

A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. 

Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the centre. Exposure to legislative risk and political risk is reviewed as part of the risk register and mitigation are in place. 

## _**Factors likely to affect  future financial performance .**_ 

The Charity is dependent on the genorosity of Donors, as 75-80% of its income is derived from Donations. The cost of living crisis in the 2022 and wider challenges of inflation are expected to have a material imapct on the Charity. However the Charity is looking at ways to mitigate the impact. 

## _**Principal funding sources in the year and how these support the key objectives of the charity.**_ 

As detailed in the financial statements the Charity received voluntary donations including Gift Aid of £658,892 and recognised £255,615 from the provision of educational seminars. There were no income from  CJRS grant (2021 £42,788). Both donations and educational income increased from 2021 as the economy recovers from COVID-19 pandemic and soceity goes back to normal. The income raised in the year allowed the Charity to deliver the services mentioned above, the section "main acheivements and peformance " 

## _**Plans For the Future**_ 

## **Summary of plans for the future and the trustees' perspective of the future direction of the charity.** 

The Trustees will be focused on stabilising the financial position of the charity and the creation of a reliable income source. This will then further enable the charity to expand its activities to more areas of the United Kingdom. 

Another area of focus is the expansion of educational material, courses and  projects. 

## **Details of The Independent Examiner** 

M K Sheikh 

Member of Member of Institute of Chartered Accountants in England and Wales 

1 Tylecroft Road London 

SW16 4BL 

8 



## **Muslim Research and Development Foundation** 

Company Registration Number - 5567478 

## **Trustees' Annual Report for the year ended 31 December 2022** 

## **Statement of  the Directors Trustees' Responsibilities** 

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations,the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities)  2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), . 

In particular, the Companies Act 2006 and charity law require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :- 

- to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 

- select suitable accounting policies and apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- prepare the financial statements on the going concern basis unless it is inappropriate 

- to presume that the charity will continue in business; 

- state whether applicable accounting standards and statements of 

- recommended practice have been followed, subject to any material 

departures disclosed and explained in the financial statements; 

The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year. 

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. 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. 

The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements. 

## **Method of preparation of accounts - Small company provisions** 

The financial statements are set out on pages 12 to 30. 

The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities)  2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP),   and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) 

These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime. This report was approved by the board of trustees on 15 October 2023. 

## Y Patel 

Director and Trustee 

9 



## **Muslim Research and Development Foundation** 

## **Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 31 December 2022** 

I report to the Trustees on my examination of the financial statements of the charitable company on pages 12 to 30 for the year ended 31 December 2022 which have been prepared in accordance with the Charities Act 2011 (the Act) and  with the Financial Reporting Standard 102, (effective 1st January 2016) as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities)  2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP),  published by the Charity Commission in England & Wales (CCEW) , and under the historical cost convention and the accounting policies set out on page 19. 

## **Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report** 

As described on page 9, you, the charitable company's Trustees, who are also the Directors of the Company for the purposes of Company law, are responsible for the preparation of the financial statements in accordance with the Companies Act 2006, the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view. 

The Trustees consider that the audit requirement of  Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the memorandum and articles of the charity for the conducting of an audit, and that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006 and that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. As a consequence, the Trustees have elected that the financial statements be subject to independent examination. 

Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to:- 

- a) examine the financial statements of the charity under Section 145 of the Act; 

- b) follow the applicable procedures in the Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Basis of Independent Examiner's Statement and scope of work undertaken** 

Since the charitable company's gross income exceeded £250,000, the charitable company's examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am an authorised member of Member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. 

I report in respect of my examination of the charity's financial statements carried out under s145 of the Act. In carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act setting out the duties of an independent examiner in relation to the conducting of an independent examination.  An independent examination includes a review of the accounting records kept by the charitable company  and of the accounting systems employed by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP. 

The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide 

Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below. 

I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters. 

10 



## **Muslim Research and Development Foundation** 

## **Independent Examiner's Statement, Report and Opinion** 

Subject to the limitations upon the scope of my work as detailed above, I have completed my examination: and can confirm that:- 

The accounts of this charitable company  are not required to be audited under Part 16 of the Companies Act 2006; 

The gross income of the charitable company in the year ended 31 December 2022 appears to exceed the sum specified in Section 145(3)  of the Act, namely £250000, and that I am qualified to act as Independent Examiner in accordance with that section by virtue of my being a qualified member of Member of Institute of Chartered Accountants in England and Wales; 

This  is a report in respect of an examination carried out under 145 of the Act  and in accordance with Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable; 

and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:- 

accounting records were not kept in respect of the charity as required by Section 386 of the Companies Act 2006 and Section 130 of The Charities Act 2011; 

the financial statements do not accord with those records; or 

the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'true and fair' view, which is not a matter considered as part of an independent examination; 

have not been prepared in accordance with the methods and principles set out in the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities)  2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP). 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. 

**Signed:-** 

M K Sheikh - Independent Examiner 

Member of Institute of Chartered Accountants in England and Wales 

1 Tylecroft Road London SW16 4BL 

This report was signed on 15 October 2023 

11 



## **Muslim Research and Development Foundation - Statement of Financial Activities for the year ended 31 December 2022** 

_**Statement of Financial Activities (including the  Income and Expenditure Account for the year ended 31 December 2022, as required by the Companies Act 2006)**_ 

|**Current year**<br>**Current year**<br>**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>**Income & Endowments from:**<br>Donations & Legacies<br>A1<br>658,892<br>-<br>Charitable activities<br>A2<br>255,615<br>-<br>Investments<br>A4<br>52<br>-<br>Other<br>A5<br>-<br>-<br>**Total income**<br>**A**<br>**914,559**<br>**-**<br>**Expenditure on:**<br>Raising funds<br>B1<br>80,785<br>-<br>Charitable activities<br>B2<br>840,474<br>-<br>**Total expenditure**<br>**B**<br>**921,259**<br>**-**<br>**Net income for the year**<br>**(6,700)**<br>**-**<br>**Net income after transfers**<br>**A-B-C**<br>**(6,700)**<br>**-**<br>**(6,700)**<br>**-**<br>**Reconciliation of funds:-**<br>**E**<br>**Total funds brought forward**<br>57,484<br>-<br>**Total funds carried forward**<br>**50,784**<br>**-**<br>**SORP**<br>**Ref**<br>**Net movement in funds**|**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**658,892**<br>**255,615**<br>**52**<br>**-**<br>**914,559**<br>**80,785**<br>**840,474**<br>**921,259**<br>**(6,700)**<br>**(6,700)**<br>**(6,700)**<br>**57,484**<br>**50,784**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>515,293<br>153,869<br>-<br>42,788<br>**711,950**<br>72,293<br>614,365<br>**686,658**<br>**25,292**<br>**25,292**<br>**25,292**<br>32,192<br>**57,484**|
|---|---|---|



The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet. 

A separate Statement of Total Recognised Gains and Losses  is not required as this statement includes all recognised gains and losses. 

All the prior year transactions were unrestricted items, and no further analysis is required All activities derive from continuing operations 

**The notes attached on pages 19 to 30 form an integral part of these accounts.** 

12 



## **Muslim Research and Development Foundation - Statement of Financial Activities for the year ended 31 December 2022** 

|**Prior Year**<br>**Unrestricted**<br>**Funds**<br>**2021**<br>**£**<br>**Income & Endowments from:**<br>Donations & Legacies<br>A1<br>515,293<br>Charitable activities<br>A2<br>153,869<br>Other trading activities<br>A3<br>-<br>Investments<br>A4<br>-<br>Other<br>A5<br>42,788<br>**Total income**<br>**A**<br>711,950<br>**Expenditure on:**<br>Raising funds<br>B1<br>72,293<br>Charitable activities<br>B2<br>614,365<br>Other<br>B3<br>-<br>Tax on surplus on ordinary activiti<br>B3<br>-<br>Other taxation<br>B3<br>-<br>**Total expenditure**<br>**B**<br>**686,658**<br>B4<br>-<br>**Net income for the year**<br>25,292<br>**Transfers between funds**<br>**C**<br>5,339<br>**Net income after transfers**<br>30,631<br>**30,631**<br>**Reconciliation of funds:-**<br>**E**<br>**Total funds brought forward**<br>26,853<br>**Total funds carried forward**<br>**57,484**<br>**SORP**<br>**Ref**<br>Net gains on investments<br>**Net movement in funds**|**Prior Year**<br>**Restricted**<br>**Funds**<br>**2021**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**-**<br>-<br>-<br>(5,339)<br>(5,339)<br>**(5,339)**<br>5,339<br>**-**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>**515,293**<br>**153,869**<br>**-**<br>**-**<br>**42,788**<br>**711,950**<br>**72,293**<br>**614,365**<br>**-**<br>**-**<br>**-**<br>**686,658**<br>-<br>25,292<br>**-**<br>25,292<br>**25,292**<br>**32,192**<br>**57,484**|
|---|---|---|



**All activities derive from continuing operations** 

**The notes attached on pages 19 to 30 form an integral part of these accounts.** 

13 



## **Muslim Research and Development Foundation - Statement of Financial Activities for the year ended 31 December 2022** 

**Muslim Research and Development Foundation - Resources applied in the year ended 31 December 2022 towards fixed assets for Charity use:-** 

|Funds (utilised)/generated in the year as detailed in the SOFA<br>**Net resources available to fund charitable activities**|**2022**<br>**£**<br>(6,700)<br>**(6,700)**|**2021**<br>**£**<br>25,292<br>**25,292**|
|---|---|---|



## **Movements in revenue and capital funds for the year ended 31 December 2022** 

## **Revenue accumulated funds** 

|**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>Accumulated funds brought forward<br>57,484<br>(6,700)<br>**50,784**<br>**Closing revenue funds**<br>**50,784**<br>**Summary of  funds**<br>**Unrestricted**<br>**and**<br>**Designated funds**<br>**2022**<br>**£**<br>Revenue accumulated funds<br>**50,784**<br>Recognised gains and losses before<br>transfers|**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>**-**<br>**-**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>**-**|**Total**<br>**Funds**<br>**2022**<br>**£**<br>57,484<br>(6,700)<br>**50,784**<br>**50,784**<br>**Total**<br>**Funds**<br>**2022**<br>**£**<br>**50,784**|**Last year**<br>**Total Funds**<br>**2021**<br>**£**<br>**32,192**<br>25,292<br>**57,484**<br>**57,484**<br>**Last Year**<br>**Total Funds**<br>**2021**<br>**£**<br>**57,484**|
|---|---|---|---|



**The notes attached on pages 19 to 30 form an integral part of these accounts.** 

14 



## **Muslim Research and Development Foundation - Statement of Financial Activities for the year ended 31 December 2022** 

## **Income and Expenditure Account for the year ended 31 December 2022 as required by the Companies Act 2006** 

|**_Income_**<br>Income from operations<br>Refunds from HMRC on gift aided donations<br>Interest receivable<br>Other income<br>**Gross income in the year before exceptional items**<br>**Gross income in the year including exceptional items**<br>**_Expenditure_**<br>Charitable expenditure, excluding depreciation and amortisation<br>Fundraising costs<br>Realised losses  on disposals of social investments which are programme related<br>**Total expenditure in the year**<br>Tax on surplus on ordinary activities<br>**Retained surplus for the financial year**<br>All activities derive from continuing operations<br>**Net income after tax in the financial year**<br>**Net income before tax in the financial year**<br>Investment income|**2022**<br>**£**<br>850,087<br>64,420<br>52<br>-<br>**914,559**<br>**914,559**<br>840,474<br>80,785<br>-<br>**921,259**<br>**(6,700)**<br>-<br>**(6,700)**<br>**(6,700)**|_Restated_<br>**2021**<br>**£**<br>602,806<br>66,356<br>-<br>42,788<br>**711,950**<br>**711,950**<br>614,365<br>72,293<br>-<br>**686,658**<br>**25,292**<br>-<br>**25,292**<br>**25,292**|
|---|---|---|



In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities. 

**The notes attached on pages 19 to 30 form an integral part of these accounts.** 

15 



## **Muslim Research and Development Foundation -  Balance Sheet as at 31 December** 

|Note<br>**SORP**<br>**Ref**<br>**Current assets**<br>B<br>Debtors<br>9<br>B2<br>Cash at bank and in hand<br>B4<br>**Total current assets**<br>**Creditors: amounts falling due within**<br>**one year**<br>10<br>C1<br>**Net current assets**<br>**The total net assets of the charity**<br>**Restricted funds**<br>**Unrestricted Funds**<br>Unrestricted Revenue Funds<br>14<br>D3<br>**Designated Funds**<br>**Total charity funds**<br>**The total net assets of the charity are funded by the**|<br>**2022**<br>**2021**<br>**£**<br>**£**<br>43,057<br>6,222<br>30,689<br>80,632<br>73,746<br>86,854<br>(22,962)<br>(29,370)<br>50,784<br>57,484<br>**50,784**<br>**57,484**<br>50,784<br>57,484<br>50,784<br>57,484<br>**50,784**<br>**57,484**<br>**funds of the charity, as follows:-**|
|---|---|



The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA. 

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006. 

The members have not required the company to obtain an audit in accordance with section 476 of the Act. 

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 11. 

The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime. 

## **Y Patel** 

Trustee 

Approved by the board of trustees on 15 October 2023 

**The notes attached on pages 19 to 30 form an integral part of these accounts.** 

16 



## **Muslim Research and Development Foundation** 

## **Cash Flow Statement for the year ended 31 December 2022** 

|**Muslim Research and Development Foundation**<br>**Cash Flow Statement for the year ended 31 December 2022**|||
|---|---|---|
|**Cash flows from operating activities**<br>**A**<br>**_Cash flows from investing activities_**<br>Interest received<br>**_Cash flows from financing activities_**<br>Net cash provided by  operating activities as shown below|**2022**<br>**£**<br>(49,995)<br>52|**2021**<br>**£**<br>53,567<br>-|
||||
|**Net cash provided by financing activities**<br>**C**<br>**Overall cash provided by all activities**<br>**Cash movements**<br>Change in cash and cash equivalents from activities  in the<br>year ended 31 December 2022<br>Cash and cash equivalents at  1 January 2022<br>Change in cash and cash equivalents due to exchange rate movements<br>**A+B+C**<br>**Cash at bank and in hand less overdrafts at 31 December**|**-**<br>**(49,943)**<br>(49,943)<br>80,632<br>-<br>**30,689**|**-**<br>**53,567**<br>53,567<br>27,065<br>-<br>**80,632**|



17 



## **Muslim Research and Development Foundation** 

## **Cash Flow Statement for the year ended 31 December 2022** 

## **Reconciliation of net  income to net cash flow from operating activities** 

|Net  income as shown in the Statement of Financial Activities<br>**_Adjustments for :-_**<br>Write downs of investments<br>Net unrealised losses on investment assets<br>Dividends, interest and rents from investments<br>Decrease/(increase) in debtors<br>Increase in creditors, excluding loans<br>**Net cash provided by  operating activities**<br>**A**<br>**Analysis of cash and cash equivalents**<br>Cash  in hand at for the year ended 31 December 2022<br>Notice deposits - (less than 3 months)<br>**Total cash and cash equivalents**<br>**_At start_**<br>**_of year_**<br>Cash<br>80,632<br>**Total**<br>80,632<br>**Analysis of change in net debt**|(6,700)<br>-<br>-<br>(52)<br>(36,835)<br>(6,408)<br>**(49,995)**<br>**2022**<br>**£**<br>30,689<br>-<br>**30,689**<br>**_Cash_**<br>**_Flows and_**<br>(49,943)<br>(49,943)<br>(49,943)|25,292<br>-<br>-<br>-<br>24,253<br>4,022<br>**53,567**<br>**2021**<br>**£**<br>80,632<br>-<br>**80,632**<br>**_At end_**<br>**_of year_**<br>30,689<br>(49,943)<br>30,689|
|---|---|---|



18 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## **1 Accounting policies** _**Policies relating to the production of the accounts.**_ 

## **Basis of preparation and accounting convention** 

The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities)  2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW), effective January 2016. 

## **Risks and future assumptions** 

## **The charity is a public benefit entity.** 

The charity is a public benefit organisation who's key aim is to benefit the public. However as such it is highly dependent on donations and the general public attending educational seminars and outreach programmes it hosts. The Trustees are aware of the financial and economic risks faced by the uncertainty of the UK economy. However the Trustees are confident that the charity will be able to attract the public and raise of its projects and objectives. 

## _**Policies relating to categories of income and income recognition.**_ 

## **Nature of income** 

Gross income represents donations and income from charitable events it hosts. 

## **Categories of Income** 

Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income. 

**Income from exchange transactions** is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser. 

**Income from a non-exchange transaction** is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange. 

## **Income recognition** 

Income, whether from exchange or non exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably. Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met. 

All income is accounted for gross, before deducting any related fees or costs. 

## **Accounting for deferred income and income received in advance** 

Where terms and conditions relating to income have not been met or uncertainty exists as to whether the charity can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met. 

Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition, or is subject to unmet conditions wholly outside the control of the recipient charity, is accounted for as a liability and shown on the balance sheet as deferred income. Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met. 

When income from a grant or donation has not been recognised due to the conditions applying to the gift not being wholly within the control of the recipient charity, it is disclosed as a contingent asset if receipt of the grant or donation is probable once those conditions are met. 

Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned,and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred. 

Any condition that allows for the recovery by the donor of any unexpended part of a grant does not prevent recognition of the income concerned, but a liability to any repayment is recognised when repayment becomes probable. 

19 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## **Donated goods, facilities and services** 

**Donated goods that are not fixed assets** are accounted for at a fair value, unless it is impractical to reliably measure the value of the donated items. 

In the absence of any direct evidence of fair value of donated goods, then a value is derived from the cost of the item to the donor or, in the case of goods that are expected to be sold, the estimated resale value after deducting any anticipated costs of sales. 

If it is impracticable to measure the fair value of goods donated for resale, or the costs of valuation outweigh the benefits, the donated goods are recognised as income when sold, with an equivalent amount being recognised as an expense. The costs of goods donated for distribution to beneficiaries is deemed to be the fair value of those goods upon receipt. When the goods are distributed freely or for a nominal consideration, then the carrying amount is adjusted at the time of sale, to the value at the point of distribution and the adjustment is shown as a cost of donations made. 

**Donated services and facilities** (including seconded staff and use of property) are included in the accounts on the basis of the value of the gift to the charity. 

All donated services and facilities are recognised as donation income when received,(provided the value of the gift can be measured reliably) and recognised as an expense with an equivalent value. 

## **Government Grants** 

Revenue grants are recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. CJRS grants have been recognised in the period, compensating for expenses or losses already incurred. 

## **Membership subscriptions** 

The income and any associated Gift Aid or other tax refund from a membership subscription received by the charity in the nature of a gift, is accounted for on the same basis as a donation. 

The income from a membership subscription received by the charity where the subscription purchases the right to services or benefits is recognised as income from charitable activities. 

## _**Policies relating to expenditure on goods and services provided to the charity.**_ 

## **Recognition of liabilities and expenditure** 

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated. 

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the  obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates. 

## **Allocating costs to activities** 

Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities. 

The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is :- 

**Staffing** - on the basis of time spent in connection with any particular activity. 

**Premises related costs** - on the proportion of floor area occupied by a particular activity. 

**Non specific support costs** - on the basis of the usage of resources, in terms of time taken, capacity used, request made or other measures 

## **Volunteers** 

In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity. 

However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note 6 

20 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## _**Policies relating to assets, liabilities and provisions and other matters.**_ 

## _**Tangible fixed assets**_ 

Tangible fixed assets are measured at their original cost, or if donated, as described above. Cost includes all costs expended in bringing the asset into its intended working condition. Any asset costing less than £500 is not capitalised, but recognised in the income statement. 

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives. 

Plant and machinery 33 % straight line Fixtures and fittings 20 % straight line 

A regular annual review of the likelihood of asset impairment is undertaken. 

## **Debtors** 

Debtors are measured at their recoverable amounts at the balance sheet date. 

## **Creditors and provisions** 

Creditors are measured at market value and recognised in the period to which the benefit is consumed by the charity. Provisions are recognised if the value incurred or consumed is certain and the liability is probable. 

## **Pensions - defined contribution schemes** 

The charity operates  defined contribution pension scheme in accordance with auto enrollement.  Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. 

## **Fund Accounting** 

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. 

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or as implied by law. 

## **2 Liability to taxation** 

The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities. 

## **3 Winding up or dissolution of the charity** 

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity. 

## **4 Significance of financial instruments to the charity's position** 

The charity does not have any significant financial instruments. 

## **5 Net surplus before tax in the financial year** 

**£ £** The net surplus before tax in the financial year is stated after charging:Pension costs 1,773 618 

21 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## **6 The contribution of volunteers** 

In 2022, our charity's reliance on volunteers underwent a transformation, shaped by the ongoing impacts of the pandemic. Volunteers continue to be the bedrock of our efforts, playing a pivotal role in fulfilling the charity's goals. Their dedication is paramount, and without them, our range of services and activities would be unattainable. As our focus remained on digital initiatives, we incorporated the expertise of volunteers proficient in online platforms. Throughout the year, over 15 volunteers collaborated with our central team to facilitate our services. Notably, after observing a surge in volunteer participation for our online retreats in 2021, 2022 mirrored this trend, especially with the resumption of in-person events and retreats. Much like in 2021, our objective for 2022 was to invigorate and fortify our volunteer base in response to the evolving scenario. We are grateful and believe we successfully met this aim. 

## **7 Staff costs and emoluments** 

|**_Salary costs_**<br>Gross Salaries excluding trustees and key management personnel<br>Employer's National Insurance for all staff<br>Employer's operating costs of defined<br>contribution pension schemes<br>**Total salaries, wages and related costs**<br>The average number of full time staff employed in the year was<br>The estimated full time equivalent number of all staff employed in the year was<br>**Chief Executive Officer**<br>The remuneration in the year was<br>**_Total remuneration package included in_**<br>**_total salaries above_**|**2022**<br>**£**<br>141,787<br>3,682<br>1,773<br>**147,242**<br>**10**<br>**6**<br>10,200<br>**10,200**|**2021**<br>**£**<br>90,705<br>-<br>618<br>**91,323**<br>**8**<br>**8**<br>10,200<br>**10,200**|
|---|---|---|



Mr Y Patel received  a salary of £10,200 (2021 £10,200) for his role as a CEO and general manager. He did not receive any remuneration for his role as a Trustee. 

## **8 Remuneration and payments to Trustees and persons connected with them** 

None of the Trustees or persons connected with them received any remuneration from the charity, or from any related entity for their role and responibility as a Trustee. 

## **9 Debtors** 

|Prepayments and accrued income<br>Other debtors<br>**10 Creditors: amounts falling due within one year**<br>Trade creditors<br>Accruals<br>PAYE, NIC VAT and other taxes<br>Other creditors|**2022**<br>**£**<br>41,000<br>2,057<br>**43,057**<br>**2022**<br>**£**<br>20,236<br>1,500<br>859<br>367<br>**22,962**|**2021**<br>**£**<br>1,000<br>5,222<br>**6,222**<br>**2021**<br>**£**<br>22,247<br>1,500<br>623<br>5,000<br>**29,370**|
|---|---|---|



## **11 Guarantees made by the charity on behalf of trustees** 

There are no guarantees made by the charity on behalf of the Trustees or Directors 

22 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## **12 Income and Expenditure account summary** 

|**Income and Expenditure account summary**<br>**At 1 January 2022**<br>(Deficit)/surplus after tax for the year<br>**At 31 December 2022**|**2022**<br>**£**<br>57,484<br>(6,700)<br>**50,784**|**2021**<br>**£**<br>32,192<br>25,292<br>**57,484**|
|---|---|---|



## **13 Particulars of how particular funds are represented by assets and liabilities** 

|**At 31 December 2022**<br>Current Assets<br>Current Liabilities<br>**At 1 January 2022**<br>Current Assets<br>Current Liabilities|**Unrestricted**<br>**funds**<br>**£**<br>73,746<br>(22,962)<br>**50,784**<br>**Unrestricted**<br>**funds**<br>**£**<br>86,854<br>(29,370)<br>**57,484**|**Designated**<br>**funds**<br>**£**<br>-<br>**-**<br>**Designated**<br>**funds**<br>**£**<br>-<br>-<br>**-**|**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>**-**<br>**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>**-**|**Total**<br>**Funds**<br>**£**<br>**73,746**<br>**(22,962)**<br>**50,784**<br>**Total**<br>**Funds**<br>**£**<br>**86,854**<br>**(29,370)**<br>**57,484**|
|---|---|---|---|---|



## **14 Change in total funds over the year as shown in Note 13 , analysed by individual funds** 

|**_Unrestricted funds:-_**<br>Unrestricted Revenue Funds<br>**Total unrestricted and designated funds**<br>**Total charity funds**|**Funds**<br>**brought**<br>**forward from**<br>**2021**<br>**£**<br>57,484<br>**57,484**<br>**57,484**|**Movement in**<br>**funds in 2022**<br>**See Note 15**<br>**£**<br>(6,700)<br>**(6,700)**<br>**(6,700)**|**Transfers**<br>**between**<br>**funds in 2022**<br>**See Note 0**<br>**£**<br>**-**<br>**-**<br>**-**|**Funds carried**<br>**forward to 2023**<br>**£**<br>**50,784**<br>**50,784**<br>**50,784**|
|---|---|---|---|---|



23 



## **Muslim Research and Development Foundation** 

## **Notes to the Accounts for the year ended 31 December 2022** 

## **15 Analysis of movements in funds over the year as shown in Note 14** 

|**_Unrestricted funds:-_**<br>Unrestricted Revenue Funds|**Income**<br>**2022**<br>**£**<br>914,559<br>**914,559**|**Expenditure**<br>**2022**<br>**£**<br>(921,259)<br>**(921,259)**|**Other**<br>**Gains &**<br>**Losses**<br>**2022**<br>**£**<br>-<br>**-**|**Movement**<br>**in  funds**<br>**2022**<br>**£**<br>**(6,700)**<br>**(6,700)**|
|---|---|---|---|---|



## **16 The purposes for which the funds** 

## _**Unrestricted funds:-**_ 

Unrestricted Revenue Funds 

These funds are held for meeting the objectives of the charity, and to provide reserves for future activities, and , subject to charity legislation, are free from all restrictions on their use. 

## _**Restricted funds:-**_ 

Prophetic Timeline 

The Restricted fund represents donations specificially given for the "Prophetic Timeline" program and for the publication of a "Dua Book". Once these activities are completed the Charity has been permitted by the Donors to use the funds on its other charitiable activities. 

## **17 Ultimate controlling party** 

The charity is under the control of its legal members. 

Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within  one year after  he or she ceases to be a  member. 

24 



## **Muslim Research and Development Foundation** 

## **Detailed analysis of income and expenditure for the year ended 31 December 2022 as required by the SORP 2015** _**This analysis is classsified by conventional nominal descriptions and not by activity.**_ 

## **18 Donations, Grants and Legacies** 

|**18**<br>**Donations, Grants and Legacies**|||||
|---|---|---|---|---|
|**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**Donations and gifts from individuals**<br>**513,078**<br>**64,420**<br>**80,430**<br>**657,928**<br>**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>964<br>**964**<br>**658,892**<br>**19 Income from charitable activities -  Trading Activities**<br>**_Current year_**<br>**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**Primary purpose and ancillary trading**<br>255,615<br>**255,615**<br>**20**<br>**Current year**<br>**_Current year_**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>Total income from charitable activities<br>**255,615**<br>**Total from charitable activities**<br>**A2**<br>**255,615**<br>**Total Income from charitable activities**<br>Other Donations<br>Refunds from HMRC on gift aided donations<br>Small donations individually less than £1000<br>**Total donations and gifts from**<br>**individuals**<br>**Total Primary purpose and ancillary**<br>**trading**<br>**Revenue grants and donations from**<br>**non public bodies**<br>Gift Aid Donations from subsidiaries<br>Other Grants<br>**Total private sector revenue grants**<br>**Total Donations, Grants and Legacies**<br>Education income|**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**513,078**<br>**64,420**<br>**80,430**<br>**657,928**<br>**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>964<br>**964**|**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>-<br>**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>**-**|**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**513,078**<br>**64,420**<br>**80,430**<br>**657,928**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**-**<br>**964**<br>**964**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>286,141<br>66,356<br>162,796<br>515,293<br>**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>-<br>-<br>**-**<br>515,293<br>**Prior Year**<br>**Total funds**<br>**2021**<br>**£**<br>153,869<br>**153,869**<br>**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>153,869<br>153,869|
|||**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>**-**|**658,892**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**255,615**<br>**255,615**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**255,615**<br>**255,615**||



25 



## **Muslim Research and Development Foundation** 

**Detailed analysis of income and expenditure for the year ended 31 December 2022 as required by the SORP 2015** 

## **21 Investment income** 

|**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>Bank Interest Receivable<br>52<br>**Total investment income**<br>**A4**<br>**52**<br>**22 Other income and gains**<br>**Current year**<br>**_Current year_**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**-**<br>**Total other income**<br>**A5**<br>**-**<br>**23 Expenditure on charitable activities - Direct spending**<br>**Current year**<br>**_Current Year_**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**107,949**<br>**2,452**<br>**1,456**<br>**-**<br>**Total direct spending**<br>**B2a**<br>**111,857**<br>**24 Expenditure on charitable activities**<br>**Current year**<br>**_Current Year_**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**620,692**<br>**Total charitable trading costs**<br>**B2b**<br>**620,692**<br>Marketing and advertising of<br>charitable services<br>CJRS Grant<br>Cost of goods for primary purpose<br>Defined contribution pension costs  -<br>charitable activities<br>Employers' NI - Charitable activities<br>Gross wages and salaries - charitable<br>activities|**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>-<br>-<br>**-**<br>**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>**-**<br>**-**|**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**52**<br>**52**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**-**<br>**-**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**107,949**<br>**2,452**<br>**1,456**<br>**-**<br>**111,857**<br>**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**620,692**<br>**620,692**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>-<br>**-**<br>**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>42,788<br>**42,788**<br>**Prior Year**<br>**Total Funds**<br>2021<br>£<br>69,405<br>-<br>472<br>48,196<br>118,073<br>**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>417,790<br>417,790|
|---|---|---|---|



26 



## **Muslim Research and Development Foundation** 

**Detailed analysis of income and expenditure for the year ended 31 December 2022 as required by the SORP 2015** 

**25 Support costs for charitable activities** 

|**Current year**<br>**Current year**<br>**_Current Year_**<br>**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**2022**<br>**2022**<br>**£**<br>**£**<br>**_Employee costs not included in direct costs_**<br>**33,838**<br>-<br>**317**<br>-<br>**1,230**<br>-<br>**_Premises Expenses_**<br>**28,500**<br>-<br>**1,025**<br>-<br>**4,474**<br>-<br>**3,366**<br>-<br>**3,100**<br>-<br>**16,989**<br>-<br>**_Administrative overheads_**<br>**1,001**<br>-<br>**95**<br>-<br>**1,715**<br>-<br>**3,068**<br>-<br>**-**<br>-<br>**_Professional fees paid to advisors other than the auditor or examiner_**<br>**1,500**<br>-<br>**7,707**<br>-<br>**-**<br>-<br>**Support costs before reallocation**<br>**107,925**<br>**-**<br>**Total support costs - Current Year**<br>**107,925**<br>**-**<br>The basis of allocation of costs between activities is described under accounting policies<br>All the expenditure in the prior year was unrestricted.<br>Canteen and staff ents<br>Sundry expenses<br>Other legal and professional<br>Telephone, fax and internet<br>Office consumables<br>Employers' NI - Administrative staff<br>Defined contribution pension cost -<br>administrative staff<br>Stationery and printing<br>Salaries - Administrative staff<br>Cleaning and waste management<br>Licence fees payable<br>Storage<br>Light heat and power<br>Premises repairs, renewals and<br>maintenance<br>Accountancy fees other than<br>examination or audit fees<br>Bookkeeping<br>Rates and water charges|**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**33,838**<br>**317**<br>**1,230**<br>**28,500**<br>**1,025**<br>**4,474**<br>**3,366**<br>**3,100**<br>**16,989**<br>**1,001**<br>**95**<br>**1,715**<br>**3,068**<br>**-**<br>**1,500**<br>**7,707**<br>**-**<br>**107,925**<br>**107,925**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>21,300<br>146<br>-<br>29,430<br>1,915<br>1,502<br>-<br>-<br>16,565<br>1,056<br>-<br>(20)<br>374<br>1,588<br>1,836<br>2,660<br>150<br>78,502<br>78,502|
|---|---|---|



27 



## **Muslim Research and Development Foundation** 

**Detailed analysis of income and expenditure for the year ended 31 December 2022 as required by the SORP 2015** 

## **26 Total Charitable expenditure** 

|**_Current Year_**<br>Total direct spending<br>**B2a**<br>Total charitable trading costs<br>**B2b**<br>Total support costs<br>**B2d**<br>**Total charitable expenditure**<br>**B2**|**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**111,857**<br>**620,692**<br>**107,925**<br>**840,474**|**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>-<br>**-**|**Current year**<br>**Total Funds**<br>**2022**<br>**£**<br>**111,857**<br>**620,692**<br>**107,925**<br>**840,474**|**Prior Year**<br>**Total Funds**<br>**2021**<br>**£**<br>118,073<br>417,790<br>78,502<br>614,365|
|---|---|---|---|---|



All the expenditure in the prior year was unrestricted. 

|**_Prior Year_**<br>Total direct spending<br>**B2a**<br>Total charitable trading costs<br>**B2b**<br>Total support costs<br>**B2d**<br>**Total charitable expenditure**<br>**B2**|**Prior Year**<br>**Unrestricted**<br>**Funds**<br>**2021**<br>**£**<br>**118,073**<br>**417,790**<br>**78,502**<br>**614,365**|**Prior Year**<br>**Prior Year**<br>**Restricted**<br>**Funds**<br>**Total Funds**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>-<br>**118,073**<br>-<br>**417,790**<br>-<br>**78,502**<br>**-**<br>**614,365**|
|---|---|---|



**27 Expenditure on raising funds and costs of investment management** 

|**_Current Year_**<br>Fundraising publicity & marketing<br>Cost of fundraising activities<br>**Total fundraising costs**<br>**B1**|**Current year**<br>**Unrestricted**<br>**Funds**<br>**2022**<br>**£**<br>**28,149**<br>52,636<br>**80,785**|**Current year**<br>**Restricted**<br>**Funds**<br>**2022**<br>**£**<br>-<br>-<br>**-**|**Current year**<br>**Prior Year**<br>**Total Funds**<br>**Total Funds**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>**28,149**<br>72,293<br>**52,636**<br>-<br>**80,785**<br>72,293|
|---|---|---|---|



All the expenditure in the prior year was unrestricted. 

28 



## **Muslim Research and Development Foundation** 

## **Activity analysis of Income and expenditure for the for the year ended 31 December 2022** 

_**This analysis is classsified by activity and not by conventional nominal descriptions.**_ 

## **28 Analysis of income by activity** 

|**SOFA ref**<br>Income from educational activities<br>**_Summary of Total Income, including the items above_**<br>Charitable activities<br>**A2**<br>Donations & Legacies<br>**A1**<br>Investment income<br>**A4**<br>Other income<br>**A5**<br>**_Categories of income_**<br>Income from exchange transactions<br>**Total income as shown in the SOFA**<br>**Income from charitable activities**<br>**Activity**|**2022**<br>**£**<br>**255,615**<br>**255,615**<br>**658,892**<br>**52**<br>**-**<br>**914,559**<br>**914,559**|**2021**<br>**-**<br>153,869<br>153,869<br>515,293<br>-<br>42,788<br>711,950<br>711,950|
|---|---|---|



## **29 Analysis of charitable expenditure by activity** 

## **Activity** 

|**Direct**<br>**costs**<br>**2022**<br>**£**<br>**_Charitable activity_**<br>Direct costs<br>**111,857**<br>Charitable trading costs<br>**620,692**<br>Employee costs not included in direct cos<br>**-**<br>Premises expenses<br>**-**<br>Administrative overheads<br>**-**<br>Professional fees<br>**-**<br>**732,549**<br>**Total Charitable activity**<br>**Summary of charitable costs by activity**|**Support**<br>**costs**<br>**2022**<br>**£**<br>**-**<br>**-**<br>**35,385**<br>**57,454**<br>**5,879**<br>**9,207**<br>**107,925**|**Grant**<br>**funding of**<br>**activities**<br>**2022**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>**-**|**Total**<br>**2022**<br>**£**<br>**111,857**<br>**620,692**<br>**35,385**<br>**57,454**<br>**5,879**<br>**9,207**<br>**840,474**|**Total**<br>**2021**<br>**£**<br>118,072<br>417,790<br>21,446<br>49,411<br>2,998<br>4,648<br>614,365|
|---|---|---|---|---|



|Total Charitable activity<br>**Total charitable expenditure**|**Direct**<br>**costs**<br>**2022**<br>**£**<br>**732,549**<br>**732,549**|**Support**<br>**costs**<br>**2022**<br>**£**<br>**107,925**<br>**107,925**|**Grant**<br>**funding of**<br>**activities**<br>**2022**<br>**£**<br>-<br>**-**|**Total**<br>**2022**<br>**£**<br>**840,474**<br>**840,474**|**Total**<br>**2021**<br>**£**<br>614,365<br>614,365|
|---|---|---|---|---|---|



29 



## **Muslim Research and Development Foundation** 

## **Activity analysis of Income and expenditure for the for the year ended 31 December 2022** 

The basis of allocation of costs between activities is described under accounting policies 

The breakdown of this expenditure by type of spending (ie nominal classification) is detailed in note 26 

## **Analysis of support and governance costs by charitable activities** 

|**Activity**<br>Charitable activity|**Governance**<br>**Finance**<br>**Human**<br>**Other**<br>**Total**<br>**Resources**<br>**Overheads**<br>**-**<br>**9,207**<br>**35,385**<br>**63,333**<br>**107,925**|
|---|---|



## **30 Analysis of non charitable expenditure by activity** 

## **Activity** 

|**_Fundraising activities_**<br>**Direct fundraising costs**<br>**Indirect fundraising costs:-**<br>**_Total non charitable expenditure_**<br>Total costs of Fundraising activities<br>**Total non charitable expenditure**|**Fundraising**<br>**activities**<br>**2022**<br>**£**<br>80,785<br>-<br>**2022**<br>**£**<br>80,785<br>**80,785**|**Fundraising**<br>**activities**<br>**2021**<br>**£**<br>72,293<br>-<br>**2021**<br>**£**<br>72,293<br>72,293|
|---|---|---|



30