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2021-03-31-accounts

Ar-Rahmah Trust Annual Report 2021

Trustees Report and Financial Statements For the year ended 31 March 2021

Contents

Ar-Rahmah Trust Trustees' report for the year ended 31 March 2021 ........................................... 2 Message from Chairman ................................................................................................................. 3 Highlights of the year ...................................................................................................................... 4 Independent examiner's Report to the Trustees of Ar-Rahmah Trust ............................................. 7 Statement of financial activities for the year ended 31 March 2021 .............................................. 8 Balance sheet at 31 March 2021 ..................................................................................................... 9 Notes to the financial statements for the year ended 31 March 2021 ........................................... 10

Ar Rahmah Trust | Annual 2020-2021 Report

1

Ar-Rahmah Trust Trustees' report for the year ended 31 March 2021

The trustees present their report and the financial statements of the charity for the year ended 31 March 2021. The financial statements have been prepared based on the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document.

Reference and administrative details of the charity

Charity registration number

1121296

Correspondence address

203 St Bernards Road Solihull West Midlands B92 7DL

Trustees

M Asif (Chair) Q Z Saleem (Secretary) M Nadeem

Bankers

TSB Bank 22A Great Hampton Street Birmingham B18 6AH Al Rayan Bank 394 Coventry Road Birmingham B10 OUF

Independent examiner

Mainstream Accountancy Services 527 Moseley Road Birmingham B12 9BU

Ar Rahmah Trust | Annual 2020-2021 Report 2

Message from Chairman

It gives me great pleasure to present the trustees report and financial statements for the past year.

I am delighted to report that the charity continued to grow in terms of securing an increase of 19.78% of funding income for the year ending March 2021 on the previous year. This is due to the hard work of the staff and the generous contributions of our donors. However due to the COVID-19 pandemic the income is significantly lower than the year ending March 2019. The charity could not execute the fundraising plan due to lockdowns in the year.

In April 2020 donors were informed that the construction of the Ar-Rahmah Trust Boarding Complex for girls near Lahore, Pakistan was on hold due to unforeseen circumstances and the charity will not be collecting donations until further notice.

Ar-Rahmah Trust continues to focus on core projects including water, orphans and poverty alleviation in Pakistan, Syria & Yemen with future project focus remaining on Pakistan.

Due to the pandemic a change in fundraising strategy was adopted to progressively increase online presence with a clear focus on digital fundraising in order to increase the number of donors, geographical reach and overall revenue for key fundamental projects whilst making the charity more efficient. Finally, I would like to thank my fellow trustees, management, staff, volunteers and above all, our donors, whose efforts, and sacrifices have made all these activities and help possible for the deserving.

From the 1[st] April 2020 until 31[st] March 2021, the following activities were carried out:

Accomplishments

Finally, I would like to thank my fellow trustees, management, staff, volunteers and above all, our donors, whose efforts and sacrifices have made all these activities and help possible for the deserving.

Mohammed Asif Chairman Trustee

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Highlights of the year

Throughout 2020/21 Ar-Rahmah Trust has maintained existing relationships whilst exploring alternative fundraising avenues and opportunities in order to attract a wider donor base for its charitable activities and thus improving the long-term ambitions of the charity.

Ar Rahmah Trust | Annual 2020-2021 Report 4

About Ar-Rahmah Trust

Ar Rahmah Trust has steadily continued to expand its projects meeting the needs of orphans, widows, the poor and destitute across the world, providing them with education, health, food aid, livelihood support and most importantly empowering people with the essential knowledge and skills needed to build their own future with dignity and self-respect.

The charity aims to focus its attention on providing continuous and sustained assistance and support to orphans, poor and vulnerable women through sustainable development programmes, ensuring that they receive long term support and provision throughout the course of their lives, helping them to rebuild their future, as well as their self-esteem, bringing into their lives more optimism and purpose. Alongside this the charity also aims to prevent or in certain cases contribute to the prevention and relief of poverty across the world.

Objectives and activities

a. Summary of objectives

The objectives of the charity as set out in its Trust Deed are as follows:

  1. the advancement of education, relief of poverty and the promotion of good health anywhere in the world

  2. the relief of suffering amongst victims of natural or other kinds of disaster anywhere in the world

  3. for such general charitable purposes anywhere in the world as the trustees may deem fit from time to time.

b. Activities for achieving objectives

During the year, the charity achieved its objectives as stated in its governing document by undertaking the following charitable activities:

  1. Food aid

  2. Education

  3. Supporting orphans

  4. Healthcare

  5. Community empowerment

Structure, governance and management

a. Governing document

The charity is governed by its Trust deed which was adopted by the trustees on 2nd October 2007 and subsequently amended on 29th June 2008.

b. Method of appointment and induction of new trustees

New trustees are appointed by existing trustees and are briefed on their legal obligations under charity law, the content of the Trust Deed and recent performance of the charity.

c. Organisational structure and decision making

Ar-Rahmah Trust is a UK based charity that works with a number of partner organisation overseas through which it delivers programmes supporting Community Empowerment, Education, Food Aid, Healthcare and Orphans. The board of Trustees of the charity oversee the running of the charity on a day-to-day basis. All operational decisions are made at board meetings which are held frequently through the year.

d. Risk management

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems and procedures are in place to mitigate our exposure to those risks.

Ar Rahmah Trust | Annual 2020-2021 Report 5

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees' Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to charities in England and Wales requires the trustee(s) to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and to enable them to ascertain to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (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.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website in accordance with legislation in the United Kingdom governing preparation and dissemination of financial statements.

This report was approved by the Trustees on 27 January 2022 and signed on their behalf by:

M Asif Trustee

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Independent examiner's Report to the Trustees of Ar-Rahmah Trust I report on the accounts of the Trust for the year ended 31 March 2021, which are set out on pages 8 to 17 Respective responsibilities of trustees and examiner The charity's trustees are rcsponsible for the preparation of the accounts. The ¢harity's trustces consid that an audit is not required for this year under 5e¢tion 144{2) of the Ch&rities A¢t 2011 (the 2011 Act) an that an independent examination is needed. It is my Tesponsibility to.. examine the accounts under section 145 of the 201 l Act. to follow the pro¢edures laid down in the general directions given by the commission under secti 145(5)(b) of the 2011 Act. to state whether particular mt4tters havc corne to my attention. B¥sis of indepeDdent examiner's statement My examination was carried out in accordance with th¢ general directions given by Ihc Chari Commission. An examination includes a Icview of the a¢countingY records kept by the charity and comparison of the accounts presented with ihose records. 5t also includes Lonsidcration of any unus iiems or disclosures in ihe accounts and sccking explanations from you as trustees concerning any su matters. The procedures und¢rtaken do noi provide all the eiridence that would be required in an audit a consequently no opinion is given as to whether the accounts prcsenl a'ttue and fair view, and the repo limited to those tnatters set out in the next statement. Independent examiDer's statement In the ¢ourse of my examination. no m&tter has Come to my attention.. which gives me reasonable Cause to believe that, in any m&terial rcspecl. the requirements: to keep accouniing records in accordance with section 130 of the 2011 Act and to preparc accounts which accord with the accounting records and comply with the account requirements of the 2011 Act have Thot bcen met or to which, in my opinion. attention should be drawn in order to enable a PToper understanding of accounls to be r¢ached. F B B Galla Bsc (Hons), FCA MAS (Bham) Ltd TIA Mainstream Accountan¢y Services New Inn Busincss Centre 527 M05eley Road Birniingham B129BU 27 January 2022 Ar Rahmah Trust | Annual 2020-2021 Report

Statement of financial activities

for the year ended 31 March 2021

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
Note
£ £ £ £
Incoming and endowments
Donations 2 63,036 440,599 503,635 420,477
Charitable activities 3 - - - -
Other - - - -
Total incoming resources 63,036 440,599 503,635 420,477
Expenditure
Raising funds 4 8,951
70,761		 79,712 67,818
Charitable activities 5 29,046 191,649 220,695 264,540
Total resources expended 37,997 262,410 300,407 332,358
Net incoming resources before transfers 25,039 178,189 203,228 88,119
Gross transfers between funds 14 - - - -
Net movement in funds for the year 25,039 178,189 203,228 88,119
Total funds brought forward 14 24,547 360,563 385,110 296,991
Total funds carried forward 14 49,586 538,752 588,338 385,110

All activities relate to continuing operations.

The notes on pages 10 to 17 form part of these financial statements.

Ar Rahmah Trust | Annual 2020-2021 Report 8

Balance sheet

at 31 March 2021

2021 2020
Note
£ £
Fixed assets
Tangible assets 11 782 1,091
782 1,091
Current assets
Debtors 12 34,287 47,098
Cash at bank and in hand 561,891 342,058
596,178 389,156
Creditors: amounts falling due within one year 13 (8,622) (5,137)
Net current assets 587,556 384,019
Net assets 588,338 385,110
Charity Funds
Unrestricted Funds 14 49,586 24,547
Restricted Funds 14 538,752 360,563
Equity shareholders' funds 588,338 385,110

The financial statements were approved by the Trustees on 27 January 2022 and signed on their behalf by

M Asif

Trustee

Ar Rahmah Trust | Annual 2020-2021 Report

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Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

1.1. Basis of preparation of financial statements

The financial statements have been prepared under the historic cost convention in accordance with 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 Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Ar Rahmah Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2. Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.

At the date of transition to FRS 102 there were no changes in accounting policies that had an impact on previously reported balances under UK GAAP. Consequently, no restatement of previously reported balances under the previous GAAP was required.

1.3. Fund Accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

1.4. Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the trustees' annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

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1. Accounting policies (continued)

1.5. Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations, gifts and grants that provide core funding or are of general nature, are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income from Charitable Activities - Including income recognised as earned from the related goods or services which are provided.

1.6. Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Charitable Activities include those costs that are directly related to the objectives of the charity.

Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements.

Support Costs for a single activity are allocated directly to that activity. Where support costs relate to several activities they have been apportioned on the basis of resources consumed by those activities. In allocating the support costs, the trustees have ensured that the costs are expended utilising the unrestricted funds available and consequently no restricted funds have been used in this respect.

1.7. Tangible fixed assets and depreciation

All assets costing more than £100 are capitalised.

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures and fittings - 15% reducing balance Computers and office equipment - 35% straight line on cost

1.8. Taxation

As a registered charity, the charity is exempt from Income and Corporation tax to the extent that its income and gains are applicable to the charitable purposes only.

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Notes to the financial statements

for the year ended 31 March 2021 (continued)

2. Income from donations

2. Income from donations
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Donations 32,424 440,599 473,023 369,702
Gift Aid 30,612 - 30,612 23775
63,036 440,599 503,635 420,477

3. Income from charitable activities

3. Income from charitable activities
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Community Empowerment -
-		 - -
Food Aid - - - -
-
-		 - -

4. Raising funds

4. Raising funds
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Fundraising and publicity 8,951 70,761 79,712 67,818
8,951 70,761 79,712 67,818

Ar Rahmah Trust | Annual 2020-2021 Report 12

Notes to the financial statements

for the year ended 31 March 2021 (continued)

5. Analysis of resources expended by charitable activity

Expenditure can be summarised as:

Expenditure can be summarised as:
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Community empowerment 3,525
23,969		 27,494 23,569
Education 903
6,138		 7,041 18,115
Emergency relief 1,202
8,180		 9,382 5,924
Food aid 10,009
62,224		 72,233 110,620
Healthcare 635
4,314		 4,949 17,676
Supporting orphans 6,575
44,696		 51,271 46,260
Water aid 6,197
42,128		 48,325 42,376
29,046 191,649 220,695 264,540

6. Analysis of resources expended by activity type

Activities Grant Support and Total Total funds
undertaken funding of governance funds
directly activities costs
2021 2021 2021 2021 2020
£ £ £ £ £
Cost of generating volume
income
Fundraising and publicity 71,280 - 8,432 79,712 67,818
Charitable activities
Community empowerment - 20,141 7,353 27,494 23,569
Education - 5,158 1,883 7,041 18,115
Emergency relief - 6,873 2,509 9,382 5,924
Food aid 682 52,233 19,318 72,233 110,620
Healthcare - 3,625 1,324 4,949 17,676
Supporting orphans - 37,559 13,712 51,271 46,260
Water aid - 35,401 12,924 48,325 42,376
682 160,990 59,023 220,695 264,540
Total 71,962 160,990 67,455 300,407 **332,358 **

Ar Rahmah Trust | Annual 2020-2021 Report 13

Notes to the financial statements

for the year ended 31 March 2021 (continued)

7. Grants payable

7. Grants payable
Grants to Grants to
Institutions individuals
£ £
Community empowerment 20,141 -
Education 5,158 -
Emergency relief 6,873 -
Food aid 52,233 -
Healthcare 3,625 -
Supporting orphans 37,559 -
Wateraid 35,401 -
160,990 -
Recipients of institutional grant(s) were as follows: Total Total
2021 2020
£ £
Ar-Rahmah Trust (Pakistan) 128,859 159,015
Crisis Aid - 1,573
Ethar Relief 4,000 8,200
Global Relief Trust 1,825 5,343
Mercy Relief - 806
Muslims In Need 23,885
Saba Relief 2,421 7,660
160,990 182,597
8. Support and governance costs
Fundraising costs Charitable Total Total
activities funds funds
2021 2021 2021 2020
£ £ £ £
Support costs
Management and administration 7,757
54,298		 62,055
88,270
Governance costs
Legal costs 675
4,725		 5,400
3,600
Total 8,432
59,023		 67,455
91,870

Ar Rahmah Trust | Annual 2020-2021 Report 14

Notes to the financial statements

for the year ended 31 March 2021 (continued)

9. Net incoming resources

9. Net incoming resources
2021 2020
This is stated after charging: £ £
Depreciationoftangiblefixed assets-owned by the charity 309 377
309 377
10. Staff costs
2021 2020
£ £
Wages and salaries 25,022 66,155
Socialsecurity costs 2,068 4,875
27,090 71,030

During the year, the charity had 2 (2020: 2) full time equivalent and a number of casual employees.

The Trust consists of its key management personnel, the trustees, and the Chief Executive Officer. The total employment benefits paid to its key management personnel were £25,022 (2020: £66,155). No employees had benefits in excess of £60,000 (2020: Nil).

During the year, no trustees received any remuneration or benefits in kind (2020: Nil).

During the year, the trustees received £298 in reimbursement of expenses (2020: Nil).

11. Tangible fixed assets

11. Tangible fixed assets
Assets under the
course of
construction		 Fixtures &
fittings		 Computers &
office
equipment		 Total
£ £ £ £
Cost
At 1 April 2020 - 995 2,503 3,498
Additions - - - -
At 31 March 2021 - 995 2,503 3,498
Depreciation
At 1 April 2020 - 995 1,412 2,407
Charge for the year - - 309 309
At 31 March 2021 - - 1,721 2,716
Net book value
At 31 March 2021 - - 782 782
At 31 March 2020 - - 1,091 1,091

Ar Rahmah Trust | Annual 2020-2021 Report 15

Notes to the financial statements

for the year ended 31 March 2021 (continued)

12. Debtors

12. Debtors
2021 2020
£ £
Other debtors 29,737 24,660
Prepayments & accrued income 4,550 22,438
34,287 47,098

13. Creditors: amounts falling due within one year

2021 2020
£ £
Trade creditors 6,786 927
Other creditors 1,580 -
Salaries and social security 256 3,810
Accruals & deferredincome - 400
8,622 5,137

Ar Rahmah Trust | Annual 2020-2021 Report 16

Notes to the financial statements

for the year ended 31 March 2021 (continued)

14. Statement of funds

Year ended 31 March 2021

Year ended 31 March 2021
Brought Incoming Resources Transfers Carried
forward resources expended in/(out) forward
£ £ £ £ £
Unrestricted funds 24,547 63,036 (37,997) - 49,586
Total unrestricted funds 24,547 63,036 (37,997) - 49,586
Restricted funds
Ar-Rahmah Mosque fund - 10 (10) - -
Family sponsorship 13 10,711 (5,983) - 4,741
Fidyah 969 1,350 (229) - 2,090
Health - 25,025 (12,003) - 13,022
Orphans 315,826 137,272 (83,320) - 369,778
Pakistan Need to Feed 10,403 275 (4,107) - 6,571
Quran Memorisation 14 3,159 (3,173) - -
Qurbani - 9,235 (9,235) - -
Ramadaan food programme 843 30,591 (31,405) - 29
Self-reliance scheme 46 8,046 (8,092) - -
Syria 91 127 (92) - 126
Uyghur Refugees 453 1,035 (420) - 1,068
Yemen Need to Feed 400 30,750 (30,041) - 1,109
Water pump 21,762 68,475 (49,958) - 40,279
Zakat 9,743 103,729 (16,534) - 96,938
Zakat Al-Fitr - 3,906 (3,376) - 530
Where Most Needed - 6,903 (4,432) - 2,471
360,563 440,599 (262,410) - 538,752
Total funds 2021 385,110 503,635 (300,407) - 588,338

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