Charity registration number.. 1125653 Safar Academy Trust Annual Report and Con501idated Financial Ststements for the Year E]Kled 31 August 2023 Safar Aeademy Trust Contents Refrrtnce and Administrative Dalails Trusl¢es' Report 2to5 tndependent Auditors, R¢port 6t08 Consolidated Statement of Financial Activities 9tolO Consolidated Balance Sheet Ba18n¢e Sheet 12 Consolidated Statement of Cash Flows 13 Statement of Cash Flows 14 Notes to the Financi￿ Statements 15to28 Safar Academy Trust Reference and Administrative Details Trustees S A Wasim M Baig SMAAmjad 1125653 Charity Registration Number Principal Offlce Unit 235 North London Business Park Oakleigh Road South London NII IGN Auditors NA Associate8 1.I.P Chartered Certified Accoutstallts Woodgate Sthdios 2-8 Games Road Co¢kfo&ters HErtfordshire EN4 911N Bankers HSBC l Aldennans Hill Pa]mers Gree London N13 5SR Page I Safar Academy Trust Tru8tees' Report The ln￿tees. present the annual report together with the consolidated financial statements and auditDr5' report of the charity for the year ended 31 August 2023. Objectives and aetivltle5 Objecis uiid dlms Our charity's purpose and aims are set out in the object& contained in the d]arity's Trust Deed are: l To &dvance the education of (he public in Islamic education alld p¢da808y,' 2 To provide ￿nts, loans and other financial assistance to the poor aud needy and institutions for education. welfare, religious needs and provide advice and 2sSiStance in obtaining th¢ sa]ne' 3 To promote such other charitable purpos65 as may from time to time be determined. The school aims to ensure children are taught through a currieulum rhat is directed by the Word of Allah and tbe Sunllah of Muhammad (p￿¢¢¢ be upon him). Thcy will Icarn to discover and evaluate the world around th¥m from a Muslim perspectiye and, by means of a broad eurriculun4 they will be encouraged to use and develop their gifts in a God-conscious way. The objectivc 1$ to pmvide a high quality Muslitn ¢du￿tiOn which will bring the begt out of all the children and enable them to have confidence in the Muslini faith and to apply its pr￿cipleS to their lives. This philosophy ts reflected in the Curriculum, discipline and ethos of the school. We achieve our ch8ritable objectiv¢s by canying out the following a¢tiviiies:. * Dissemination of resources ITh Islarnic Education and pedagogy. * Developtnent of resources and providing siipport to 8ch()o14 that teach Islamic subjects- . Running schools in the UK for children and adulis teaching Islamic studies: Providing training to school staff,. . Help the needy people abroad whg suffer from poverty aDd n8￿ra1 disasters. Fundraislng dlsclosure The group receives donatioDS throughout the year to fifftber the educational purposes of the charity. Publle btnef The Charity works within the con]munity to filliher the advart¢¢ of ¢ducatlOll and provide grants or fitwicial a55iStan¢e to the poor 2nd needy. The trustees ronfm that they h2vc complied with the requirernents of section 17 of th¢ Charities Act 2011 to ave due regaTd to the public bcnefit guidance published by the Charity Commission for EJ]gldnd and Wales. Use of woluniee The group is very gyateful for the use of volwiteers to agsist with futtd raising. Financial reyieiv Policy on reserv Th¢ finances are constantly reviewed by the committee and a res¢rve policy is established whereby the unTestricted fLmdg not committed should be held in reserve and maintained at a level which ensures that Saf8r A¢ad¢tny Trust core activity could continue during a period of unfoiywn difficulty. Page 2 Safar Academy Trust Trustees, Report Plans for future periods Trustees and Officers The trustees and offi¢¢rs serving during the year and since the year end were as follows: Trustees.. S A Wasim (appointed l April 2024) M Baig S M A Amjad (appointed l April 2024) H Ali (resigned l Apiil 2024) M H Uddin (resigned l April 2024) Structurei ¥overnance mAnagement Nafure ofg0￿rAl￿g dociipnenl Safar AcadBmy Trust is a chsrit2ble organisation set up to advance l$18mi¢ education and reli¢f poverty. AppointrtTht and retirement of trnstees is accordance with the Trust Deed. The overall manJg¢menÉ of fmance 15 the responsibility of all the Trustees acting on the recon]tnendations of the Chairnian, Ihe Treasurer and the advice of the admini8tratorifmance person. The Tn￿e¢S forrn the Management Committee who meets regul￿'1Y to oversee the running of th¢ organisation and mitigating ris Recruiimeiil and appoynhnent of1r￿steeS Trustees are recruited with re¥ard to their skills, knowledge and experience needed for the effective administration of the Charity. Trustees are appotnted by a resolution of the Trustee5 pass¢d at a special meeting. Ihductlon Irftinlng oflruslees Trwstees are fvlly briefed on their r¢sponsibilities prior to being appointed. ArrllngemÉnlsforselllng key NIUMuzem£nlpersonnel reniNnerailon The key management personn¢l 4rE the Trustees who should not benefit f￿ancIallY from their TIl￿teesh1P. ullless agreed upon by the Trust¢e8. Orgémisallonftl slrucliire The Trustees oversee the day to day running of th¢ ¢harity. Major risks findmortngement of Ihose risks The trvst¢e5 r¢Yiew the major risks to which the charity is exp(Trsed and ensure that systems exist to minimis¢ the impad of any risks on its fvtsre effectiveness. Th¢ Tngjor risks ate considered to be.. l. Diffirulty in recruiting staff., 2. A fall ill income due to cornpetitors. 3. A risk to the reputation of the charity leading to a fall in ]ThcO￿t. Thes¢ risk5 are mitigated by ensuritig the quality of teaching and books are of a high level. Th¢ ¢harAty maiiitsins a Strong management team and monitors feedback frorn pupi]s and customers. P￿83 Safar Academy Trust Truste¢s' Report Financi81 instruments Objecti￿$ diidpollel The charity's activities expose it to a number of fthancial risks. The w¢ of fjnancial derivatives 1% governed by the charity's wjlicies approved by ihe board of trustees. which provide written principles on the use of financial derivatiye5 to manage thes¢ risks. The charity doe% not use derivative financial illstrLllnents for speculative purposes. StAtement of responsibilities The trustees are responsibl¢ for preparing the Trustees, Amiual Report w)d the fmancial st&temenLS ill accordance with applicabl¢ law and United Kingdom Accounting StandaTd8 {Unitd Kingdom Generally Accepted Accounting Pradi¢¢). The law applicable to charities in England & Wales requires the tNstees to prepare f￿anCIal statements for each fI]￿ClaI year which give a true and fdir view of the state of affairs of the charAty of the incoming resources and application of resources of the ¢harity for that period. In preparing these fll￿n¢la1 statements, the trustees are required to.. select suitable accounting poli¢i¢s and then apply them ¢onsistently> ' observe the ]nethods and prin¢ipl¢s in the Charities SORP 2019 (FRS 102). • make judgements and estllnates th< a￿ reasonable and prudenl" • stafr whether applicable accouDting standards have been followed, subj¢ct to ally material departures di$¢losed and explained in the fmancial statemrnts. prepare tbe fllw)¢ial stat¢m¢nts on the going concem basis unless it 15 inappropriate to PT¢sum¢ that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disc105e with reasonable ac¢uracy at any time the f]nanci&l position of the Lharily and enable them to ensure that the fJnanGial statemenLq cofflply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provision8 of the trust deed. They are also responsible for safegudrding the assets of the charity alld hence for taking reasonablc steps for the prevention and detection of fraud and other iTregularities. Pag¢ 4 Safai- Academy Ti'ust Ti-ustee¥' Repoi't Dls¢lvsiir¥ uf In(oi'm3tlnii tn Thiidlttsi- tacli Inislee lias illkeii sieps IIMI Ilicy ought lo hav¢ lak¢ll a5 a Lrnsl¢e iii order io Iiiike Ilieinselves aivare olaiiy rel¢vaLiI audil iiifomialion Rt]d 10 ¢5rablisli IIIAI tlie cljarity's biidilor is Nwarc of Ihoi iiiformalion. Tlie tsNstee5 ¢onfirni Ih81 Iliere is no relevani iiiforin)tiott Ilial Ili¢y kiioiv ofand Df wknith Ili¢y k]iow Ili¢ audiior ks iiiiaw4re. Tlie amiiiDI rc ri wa5 aPPTovcd by Ilic I1￿Ble¢S ofditt ¢￿Ir11Y UII 0£ sigiied oil ils beliJll' by.. TruslL PaÈe.S Safar AeAdemy Trust Independent Auditor's Report to the Trustees of Safar Academy Trust OpiDion We have audited the financial statements of Safar Academy TnLgt (tlie 'par6nt charity,) and its 5uhsidiary (the 'group') for the year ¢nd¢d 31 August 2023 which comprise the Statem¢nt of Financial Activities, Balance Sheet, Cash Flow Statem¢nl, and Notes to the Finaneial Statements, iiicluding significant accounting policies. The fllMnci&l reporting framewurk that has been applied in their preparation is applicable law and United Kingdom Accounting StandJrd$, inLluding Financial Reporting Standard 102'111e Financial REPOrting Standard applicable the UK and Republic of Irelaiid (United Kingdom Generally AGcept¢d Accounting PTa¢tice). In our opinion the fman¢ial staternents.. ' give a ttwe and fair view of the state of the group's and parent charity's affaits as at 31 August 2023. and of the group's incoming Rsources and applicalioll of ￿lOUrCeS. including its luc0￿C and expenditure, for th¢ year thcn ended; . have been properly prepared ill a￿OrdanC& with United Kingdo]n G¢n¢rnlly Accq)ted A￿oUntIng Practice,. atsd • have been prepared in ac¢oTdance with the requirements of the ch￿itiES Act 2011. Basi5 for opinion We conducted our audit ill rm&lion colnprises the information included in the trustres annual report, other than the fJnanei&l statements and our audiior's report thereon. The tn￿teeS are responsible for the other inforniation eont2illed within the annual report. Our opinhon on the financial statements does not cover the other inforniation and, except to the extent otbEnvise explicitly stated in our report. we do not express any forni of assurance conclusion thereon. Our r¥5yonsibility is to read the other information and, in doing so, consider whcthcr th¢ other infotThatiOn is materially inconsistent with the financial statements or our knowledge obtained in th¢ course of the audit or otherwise appews to be materially misstated. If we identify such material inconsi4tencies or apparent mat¢rial misslatements, we are required to determine whether this gives ri5¢ to o material misstatement in the f￿ancial statements themselves. If, based on the work we have perfomied, we ¢on¢lude that there is a maS¢rial ￿18Statement of this other inf0m￿tion. we are required to report that fact. We have nothing to report in this regard. Matter5 on whi¢b we are required to report by exception We have nothing to report in respect of the following inatters ill relation to which the Charities (Accounts and Reports) Regulatiot15 2008 require us to report to you if. iu our opinion.. Page 6 Safar Aeademy Trust Independent Auditor's Report to the Trustees of Safar Academy Trust the infomiation given in the fmancial stat￿Trellts is inconsistent in any mal¢rial rEspe¢t witb the trustees, report,. or sufficient accounting ￿cOrdS have not been kept. OT . Ihe parent charitys fman¢ial $tE)ternents are not An agreement with the accounting recoTds and re￿rn5,. QT we have not received all the information and explatmtions we require for our audit. RespoTrsibilities of tn15tees As explained more fully in the trustees. responsibilities statsmenL the tNstees are responsible for the preparation of the finoncial statements and for being satisfied that they give a iN¢ and fair view, and for such i￿ternal eolltrol as the trust¢¢s detErniine is nccess8ry to enable the preparation of financial ststements that are free frorn material misstaten]¢n( wh¥ther due to fraud or error. In preparing the financial stat¢m¢nls, the twstees are responsible for assessing the group and parent charity's ability to continue a5 a going disclosing, as applicable. matters related to going cotlcem and using the going concern basis of acc4)unting unle&b the trnstees either intend to liquidate the wup or the parent charity or to c&ise operations, or have no r¢alibtic alternativc but to do so. Auditor responsibllities for the gudlt orthe fJnanci21 statements We have been appointed as audiloi. under section 151 of the Charities Act 2011 report ill accordance with regulations made under section 154 of that A¢t. Our objectives are to obtain reason&ible assurance about whether the financial slaten]ents as a whole arc frf from ￿aterIal misstatement, whether due to fiiud or etyor. and to issue an auditor's report that in¢lude8 our oPi￿10n. Reasonable assuranG¢ is a higb level of ￿￿ranCe, but is not a guarantee that all audit conducted ih) accordance with ISAS (UK) will dlways detect a material misstatement when it exists. Misstatements can arise from fraud or error and are ron¥id¢rEd material if, individually or in the aggregat¢, they could reasonably bc expected tr) influence the e¢onomic decisions of uscrs taken on the basis of these fllmncial Statements. I￿egularitIeS, including fraul are iDStances of non-compliance with laws and T¢gulations. We design procedures in line with our responsibiliti¢5, Uutlined above, to detect material misstatements in respect of irregularitics. including fraud. The extent to whibh our procedures are capable of detecting ]￿e8VIarit]ES. including fi'aud is detailed below.. DiscU￿10nS with management, including consideration of known or suspected instsnces of non-cornpliance with laws and Yegulations and fiaud. and • IdeDtifyAng and testing 5ignifiLdDI manual Journ￿ entries and reviewing a&sumptions and judgements made by management in making significwil &couDting cstinydtes. Because of the inherent limitation5 of an audiL there is a risk that we will not defrd all ]￿egUlaritIeS, including those leading to a malerial Tnisslatement in the financial statements or non-roJnpliance with regulation. Thi8 risk increases the more that ¢omplidnEe with a law or regulation is removed fro￿ the events and trans&ctions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is tho ￿rater regarding itregularities occuning due to fraud rather than error, as fraud involves inteDtional concealment. forgery, collusion, OmiSSlOA or misrepresentation. As part of an audit in aw)Tdance wsth ISAS (UK}, we exercise profrssional judgement and n]aintr4i profcssitrnal scepticlsm throughout the audit. We also.. . Identify and assess th¢ Tisks of matei'ial mi>atement of the financial statements, whether due to fraud or ¢Tror. design and perforni audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appiopriate to provide a basi5 for our opinion. The risk of not deiecling a material mi55tatement resulting frovn fraud is higher than for (klle Tesulting from error, as fraud may involve Collusio￿ forgery> intentional omiysions, isrepresentations, or th¢ override of int£rnal control. Page 7 Safar Academy Trust Independent Auditor's Report to the Trnstees of Safar Academy Trust ObtsiD an understanding of intemal coiitsDI relevallt to the audit lll order to design audit pr(bcedures that are appropriate in the circlltllStan¢es, but not for th¢ puiyose of expi'essing an opinion on the effectiveness of the group's internal ¢onlKol. Evaluate the 2ppropriatcncss of atcoutttiThg policies used and the re4sonabl¢ness of accounting estimates and related disclosures IYL&de by the trust£e5. • Conclude on die appiY)priateness of the tsustees, use of die going conceKn basis of xcounting olld. based on tILe audit evidenc¢ obtain¢d, whether a ￿0(¢rial uftc￿t￿nty exists related to events oi. conditions that may e&8t signifiGant doubt on the £roiip's or charity's ability to continu¢ ￿ a golng concem. If we ¢on¢lude that a n￿teria] uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the fffiancial 5tateinenL4 or, if such disclosures are inadequate. to modify our opinion. Our conclusions are based on thc audit cvidettce obtained up to the date of our allditor's lEp￿rt. However. fvt￿re event5 or Conditions may ¢ause the group or PaiEnt charity to ¢¢as¢ ¢0 ￿ntinue a$ a going ¢onc¢in. Evaluate the OV¢Tall presentatlon. 51TUGtvre and content of ihe fjnancial statements, including the disclosure5, nd whether the fin4intial statements Tepresent the underlying transacuons and events in a mam1￿. that a¢hi¢ves fair presetjtation {ie. gives atrne and fair view). Obtain sufficient approp￿late alldit cvidcncc rc8aNtiTh8 thc financiaI informatiott of the entities oi. business activitie8 wsthin thc 8roup to express an opinion on e￿n$01￿d￿ted fjnancial statements. We are responsible for the direction. supervision and performan¢e of th¢ group audit. W¢ remain sol¢ly r¢S￿nsible for our audit opinion. We communicate with those Charged with governatKe iegarding, arnong other m3tter5, the planned .%ccJpe and timing of the alldit and significartt audit findings. includin8 any signifieaot deficiencies in illternal control that we identify during our audit. ijse of our repDrt This report is ￿ade 501ely to ihe charity's trust￿5. &8 a body, irn aecordanee with Part 4 of the Charities {Accounts and Reports) Regulations 2008. Our audit work ha5 been undertaken 50 tbat wt might *t2te t(J the charity's tnLStees tbose niattsts we are irquired to slatc to them in an auditoj s report and for no otber purpose. To the fi]Ilest cxtcnt permitted by law. we do not accept or assume resp(bnsibility to anyone other thall the charity and the Charity's trustees as a l)ody, for our audit work, for this report, or for th¢ opinions w¢ have ed. NA kn50ciates LLP Chart¢r¢d C¢rtifi¢d Accountants and Statutory Allditoi Woodgste Studios 2-8 Games Road c(￿kfOSterS Hthtfordshire EN4 9EJN Associal£s LLP i& ell￿ble lo acl av auditoi. lerms olseclion 1212 ojihe Compunie& Act 2000, Page 8 Safar Academy Trnst Consolidated Statement of Financial Aclivities for the Year Ended 31 August 2023 Unrestrletsd Total 2023 Note Incorne and Endowments from: Donations and Ic8acie$ Charitable activities Other trading activities 63,418 444.549 907,612 63,418 444,549 907,612 Total in¢ome 1,415,579 1415 579 Expenditure OD: Raising ￿lld$ Charitable aclivities Other expenditure Total expenditure (591,982) (R34,3¥2) (98.957) (591,982) (834,392) 98.957 (1,525,331} (1,525.331 Net ¢xFnditure Net movement in funds 109,752) 109,752 (109,752) (109.752) ReeoncllÉation of funds Total fijnds brought forward 174.095 174,095 Total ￿lldS callied fonvard 18 64.343 64.343 The notes on pages 15 to 28 form iniegTal part of these financial stst¢m¢nlS. Page 9 Safar Academy Trust Consolidated Statement of Financial ActivAtie5 for the Year Ended 31 August 2023 Unrestricted fllnd5 Total 2022 Note Incorne and Endowmellts from: Donations and Icgacies Charitable activities Other tt8ding activities Other in¢ome 57,563 396.942 724,702 2,880 57,563 396,942 724,702 2,880 Total income 1 182087 1,182,087 Expenditure on: Raising ￿ndS Charitable activities Other expenditure Total expenditure (324,975) (837.200) 70,705) (324,975) (837,200) 70,705 ,232,880 1,232,880) N6t expenditsue Net movement in fi]nds (50,793 (50,793) (50,793) (50,793) R¢conciiiativn ol funds Total fimds brougbt forward 224,888 224,888 Totsl funds ¢arriEd forward 18 174.095 174.095 All of the group's activities d￿1¥¢ from continuing operations during the above two p￿iods. The funds breakdown for is shown in th¢ nimes 18. Th6 notes on pages 15 to 28 fomi an integral part of these financial statements. Page 10 ,SAfar Academy Ti'll5t (Rcgisti'alioii nuinber.. ) ConJ*olidatcd Balance Shcet a5 at 31 Augubt 2023 2U23 2L122 Nolc FixLd TaiiBibl¢ Ass¢15 9.324 9,017 Cui'rent oss¢t$ Stocks Dcbtor$ Cksh Jl baiik and in hajjd 13 IU7.201 fjl,G68 218.334 181,777 57.644 IIKI.425 14 15 387,203 339,846 Crcdltors: Amount5 f*lling due wlthlu oli¢ ycur NL.t C'UlTcnt usscts 16 (332.1841 174,7681 55.019 105,078 P*'ct assets 64,343 174,095 riunds of tlit group., Ilnrestrltted funds Uiir¢siriLied ￿ndS 64,343 64.343 174,095 Total funds 18 174,095 riiiaiiciAI si£iienieiiis Dn poses 9 to 28 w¢rc approv¢d by ihe rrusl¢c5, #nd lluihoi'ised COT ISSLIC on .XG)..41 Imd signed on their b¢liaif by.. S A Wasiii) Tnistee TIIE iJo1¥5 011 page& 15 10 28 forn1 Hii inib8ial pari t)fihc5c finaiicial Sia￿M¢[lIS. Pd¥e I I Safai" Acadeiiiy Ti'u¥t (Re%AStrAtioll iiumber: ) Balance Slieet 4s at 31 August 2023 2023 21121 Nolc FlxL.d Assets Tangibl¢ asse Invests￿¢nIs 7.04Y IL)U 9,017 100 7.149 9,117 Currut g$set5 Deb￿r5 Cash 81 baiik and ill hand 14 171,574 72.299 104.064 235,982 243.873 CrL,dllur¥- Amtsunt5 f&llliig dy¢ wl¢lilTh yvnr N¢t Lurrent SLSSet5 149,8531 {23.7UI 186.129 22U,172 t assets 193,278 229,289 Funds of the cbshTIty: Unr¢strlcted lTheome [￿n￿5 u11￿51[1¢1￿ fuiids 193,278 229,289 193.278 229,289 riiionciol Sifii¢ments Ott PU8¢$ 9 io 28 weir Ipproved by 1114 Ini¥l¥es, und auilioris¢d for is5u¢ on .kg.&.4... aiid signed oli ilJ¢ir bLhiif by.. S A Wasim Th￿1¢¢ Tl)E noLrs oll pasc& 15 ¢0 28 foiml dii inlegrdl part uf Ili¢s¢ fillancial stal¢mcnls, Pagl 12 Safar Academy Trust Consolidated Statement of Cash Flows for the Year Ended 31 August 2023 2023 2022 Note Cash IIow5 from operating aetiviti¢5 Net cash expenditure Adjustments to cash flows from noD-c8sh items DepreciatLOII (109.752) (50.793) 2,537 {107,215) 1,968 (48,825) Working capital adjustm¢nt$ De¢rease/(iticrease) in stocks (Increaseydecrease in debtoT3 Increase in creditoLs 13 14 16 74,576 (4,024) 157,416 (142,707) 25,143 130.605 Net cash flows from operating aotivities Cash flows from iDvesting activiti Purchase of tsngible fixed assets Nel in¢reasel(decrease) in cash and cash equivalents Cash and cash equiYal¢nts at I September Cash alld cash equIv￿en1& at 31 August 120.753 (35.784) 11 2,566 117.909 (38,350) 100,425 218.334 138,775 100,425 All Df the cash flows are d¢rivEd from continuing operations during the above two periods. Th¢ notes on pag¢s 15 to 28 forni an inlegral part of these fllRncial statements. Page13 Safar Academy Trust statement of Casb Flows for the Year Lnded 31 August 2023 2023 2022 Note Cash flows from operating activities Net cash (eXpendityr¢)IiDco￿£ AdjustmeDts to Cash tlows FronL llon-eash Items Dcpre¢iation (36.011) 4.401 1,968 1,968 (34,043) 6,369 Working eapital adjustments Decrease in debtors Increase in creditors 14 16 39,656 26.152 14,383 5,553 Net cash flows from operating activities 31,765 26.305 Cash flows frorn investing aetivities Purchase of tangible fIKed assets 2,566) Net increase in cash 8nd ¢ash equivaleThts Cash 2nd cash equivalenlg at I September Cash and cash equiv&l¢nts at 31 August 31,765 23,739 72,299 48,560 104,064 72.299 All of the cash flows are derived from continuing operations during the atove two periods. The nofrs on pages 15 to 28 fomi an integral part of these fmancial statements. Page 14 Safar Academy Trnst Notes to the Ffinaneial Stydtements for the Year Ended 31 August 2023 l Aeeounti]Jg policies Summary of 5igDifieant accounting policies and Iiey aceounting estLTnAte The prinLipal arKounting policies applied in the preparation of Ihe5e fiThanci￿ statements are 8et ckut below. These policies have been consistently applied to all the yws present¢d, unless otherwise stated. Statement of CD￿p11￿￿¢e The fU￿ncIal statetnents have been prepared in a￿ordanCe with Accounting and Reporting by Charities.. StatemEnl of Recorwnended Prdctice (applicable to Charities prEpaiing their accountq in accord2nee wtth the Fin3llci4tl Reporting Standard èpplicable in the UK alld Kepublic Df Ireland (FRS 102)) (issllcd in October 2019) (Cliarities SORP (FRS 102}), the Financial Reporting StandaTd applicable in the UK and Republic of Ireland (FRS 102). The charity constiknteg a public benefit entity as d¢fjned by FRSIO2. Basis of pr¢p0ration Safar Acdd¢my Trust meets the definition of a public b¢Defit entity under FRS 102. Assets and liabilities are initially rEcognised at historical eost or transaction value unless otknwise stated in the relevallt acwunting policy nut¢s. Safar ACade￿Y Trust is an unincorporated ch￿lty based in Eaglall(L United Kingdom and which operates frotn its principiil U￿1¢£. The accounls are prepared in the groups ￿nCtional wtrency of British Pounds {£) and round¢d to the nearest £1. Basi5 01. coiis01idation The Lonsulidated fInancial statements consolidaie the fillancial 5t&tements of the charity and its subsidiary undertaking drawn up to 31 August 2023. No statement of fmancial activities is presented for the parent charity as permitted. The parent charity m8de a loss for the f￿ancIal year 0££36.011 (2022 - profil £4,401). Page 15 Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 A subsidiary is an entity controlled by the charity. Corntrol is achieved where the charity h&s the power to govern the f]nancial and operating policies of an entity $0 18 to obtain benefits from its aclivities. The regults of subsidiaries acquired OK dispos¢d of during the year are included in the statement of financial actsvitiel from the effective date of acquisition Or up to the effective date of disposal, as appropriate. Where necessary. adjusiments are made to the fillan¢i￿ Statemernts of subsidiaries to bring their accounting policies inÉo line with those used by the group. The purdmse method of a¢¢ountiThg is used Éo ac¢oullt for business eornbina(ions that result in the acquisition of suh8idiarics by the group. The cost of a business ¢ombination is measuied as the fair value of the assets give eqllity instNments issued alld liabilities inourred or a55umed at the date of exchange, plus costs directly attributable to the business combination. Id¢ntifiable 41ssetS acqui￿d and liabilities and conttngent liabililies a&8llmcd in a business Combination are measured initially at their f&iir values at the acquisition date. Any excess of thc eost of the business combination over the a¢quiTEr's interest in the net fair value of the identifiable assets, liabilities tnd contingent liabilities recognised is T￿ord¢d &8 guudwill. Intcr-company transactions, balances and UTw¢alis¢d gains on transactions between the charity and its subsidiories, which are related parties, are eliminated in full. Intra-grollp losses are also eliminated but may indicate an impainnent ti]at requir65 recognition in the cons0lidat¢d fitRncial statements. Accounting policies of subsidiaries have be¢n changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling int¢rKts in ihe nti assets of c￿nsOlidated subsidiaties are identified separately from the group's equity therein. Non-wntrolling interests consisl of the amount ot those interests al thc date of the original business combination and the non-colltrolling shareholder's shatt of changes in equity since the date of the combination. Total cornpr¢h¢nsive iDLome is attributed to non-controlling interests even rf this r&9ults in the non-controlling interests hiving a deficit balance. Going concern The fmancial statements have been p￿Pated on a going concem b&sis, as the trustees consider that there are llo material uncertainties about the wup's ability to continue as a going concern nor any significant areas of uncertainty that affect the (xnying value of as%ct4 hcld by the group. The ￿'0uP made a loss in 2023 alld 2022 which was due mainly to one off software develapmcnt co#s in tht 8ubsidiary for the for a new App that will be Ily launched in 2025. Since the year end the group haq has returned to nmking a profit aud expect Lhe gtollp to continue to do so into the fores¢¢able futhre. Accordingly financial statements I￿ve been prepared on a going concern basis. InC0￿e and endowm¢nts All income is recognised once the charity has entitlement io the income. it is probable that the income WAII be received and the amount of the incom6 receivable can be measured reliably. Donuiloiis rtndlegucles Donations are recognised when the chartty has been nDtified in writ￿8 of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of perFOrn￿A¢e by the charity before the charity is entitled to the fi￿d$, the incotne is deferred and not i'ecognised until either those conditions are fully met, or the ￿]fIlment of those conditions is wholly within the Control of the charity and it is probable that these conditio￿S will be fijlfilled in the reporting p¢riod. Page 16 Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 CliaTilllble actlvllles Charitable income arises froln tuition fee5 and is re¢ognised when tuition has taknn place and the charity entitled to the income. Other income The sllbsidiary income arises from the sale of books {￿d is recognised once the books are dispatched to the customer. Expenditure All cxpendiiure is recognised oThce there is a legal or ¢on$tru¢tive obligation to that expenditure, it is probable scttlemcnt ig requirnl and the a￿ount can be measured T¢liably. All costs allocated to the applicable ¢xpcndinJre he￿ing that awEgate sllnilar Costs to that ¢ate¥ory. Where ￿sts cannot be directly &ttributed to particlllar ILeadings they have been allocated on a basi$ ¢onslStEIIt with th¢ use of resources, with central staff C08L8 allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's ￿Se. Other gupport costs are allocated based on the Spread of staff costs. Raisyngfuitds These are costs incurred in attracting Yoluntary income. the ll￿nageMent of inv¢stments and those incun￿l in trading itLlivities that raise fijnds. Cltrtriluble Rclivliies Charitablc Cxpcnditt￿e comprises those costs incurred by the ch￿lty in the delivery of ils activiti￿ and services for IL8 bcncficiaries. It includes both costs that ¢an be allocated dir¢ctly tu such ￿tiVItieS and those costs of indirect nature ne¢essary to support them. Support costs sllp￿rt cn8ts include ¢¢ntral functions and have been allocated to activity cost categories on a basis consistent with thc u8c of resources, for example, allocating property ¢osts by floor areas. or per capita, staff costs by the time spcnt and oth¢r costs by their Usage. GoverThance costs These incllldc thc Costs attributable to the charity's complianc¢ with Conbtitulional and statutory requirements, including audit, $trat¢gi¢ managem¢DI and trustees meetings and r¢imbursed ¥xpenses. Government grants Grants recognised in the period to which they relate. TaDgtble fjxed assets IndivAdu81 fixed assets are initially recorded at cost, less any subsequtnt accumulated depreciation and subsequent accumulated impainnent losses. Depreciation and amortisatioD Depreciation is provided on tangible fixed assets so as to write off the CQSt or valuation, less any &stinated residua] value, over th¢ir expected usethl economic life as follows- Asset ela5S FIx￿reS, fittings and equipment Depreciation method #nd rate 2￿/0 sttaight line method Page 17 Safar Aeadelny Trust Not&$ to the Financial Statements for the Year Ended 31 Allgust 2023 Researcb and development ResearGh and developmcttt expenditure is written off in the profit and loss account as incumd. Business combinatLOt15 Business combinations are accoithted for under the purchase method. Where Thecessarytr adjustments are made to the fiiwcial statements of subgidiaries to bring the accounting policies used into line with those used by the harity. All intra-group transaction8, balances. income and expenses are eliminated on consolidation. In arcordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these fLnancial slaternents in respect of business combinations effected priorto the d￿8 of transition. stock Stock is valu¢d at the lower of eost estimated selling price lew costs to complete and sell, aft¢r due regard for obsolete and slow moving stocks. Cost is determined using the fll'st-in, first-out (FIFO). Tradc dcbtors Trade debtors and other debtors are measured at cost. less provision for imp&irnient. A provision for the itnpairment of debtors is cstablished when there is objective evidence that the group will not be abl¢ to collect all amounts due according to th¢ original terms of the Teceivables. Cash and cash ¢quivaleDts Cash and cash equivalent8 comprise cash on hand and call depoSAts, and other Sh￿t-tern h￿lY liquid investments that are readily ¢onv¢rtible to a known amount of Ixsb are subject to an insignificanl Tisk of hange in value. Trade creditors Trade creditors and other creditors are obligations to pay for goods or servic¢5. Accounts payabl¢ are ¢lassified as curr¢nt liabilities if the ￿'0up does not have an unconditional rigbt, at the eThd of the reporting period, to dEfer Settlell￿n( of the creditor far at least twelve months after the reporting date. If there is an unconditional right Éu defer settlemEnt for at least Éwclvc months after the reporting date, they are presented as non.current liabiliti¢s. Trade ¢reditOTS and other credit(Trrs are recognised at cost. Fund Structure Unr4stricted income fvnds are general fijllth that are avaiIable for use at the trustees discretion in fiwth¢ran¢e of the objeclive5 of the charity. Pcnsions and other post retirement obligations The charity opuates a defmcd Contribution pension scheme which is 2 pension plan under which fixed ontributions arE paid into a pension fvnd and the charity has no legal or constructive obligation to pay furth¢r ontributlOn5 even if the fvnd does not hold sufficielll assets to pay all employees the benefits T¢laling to e]Dployee s￿Vice in the Gu￿ent gnd prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they arE due. If contribution p&yments ex¢eed the contribution due for service, the excess is recognised as a PTepayment. Page 18 Safar Academy Trust Notes to the Finall¢iAI Statements for the Year Ended 31 Augllst 2023 Financial inltruments Financial assets and financial liabilities are ￿E08￿lSed when the ¢harity becomes a party to the eontractual provisions of the instrument. Financial b'abilities and equity instruments are Clasgified according to the subbian¢e of the contractual ang¢rnents entered into. An equity insttument is any COntr￿t that evid¢u¢¢s a residual interest in the assets of the charity after deduclirng all of its liabilities. Recognillon andmeusuremenl All financial assets and liabilities are initially measured at transaction wice {in¢ludinB Lransaction costs). except for those financial assets Llassified as at fair value through profil or los4 which arc initially measured at fair value (which is norffl#lly the transaction price excluding transaction costs). unless the ayrangement constitutes a f￿ancing trjnsaction. If an arrangement consti￿leS a fjnancing tttnsaction, the fmancial asset or fsnancial liability is measured at the present value Of the fiLture payments discounted at a mark¢t rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position Whe￿ and only when there exists a legally ¢nforce¢ible ffi￿t to set off the recognised amounts and the charity intends either to settle on a net basis, or to reilise the asset and settle th¢ liability simultaneously. Financial assets art derecogDised when and only when a) the ContraC￿al rights 10 the cash flows from the financial asset expire or settled, b} the charity transfers to allother party sub8tantially all of the risks and rewanls of ownership of the fJnan¢ial asset. or c) the charity. despite having retailled some. but not all. significant Ti$k$ and rewards of ownership. has transf¢rr¢d control of the a5setio another party. Financial liabilities are dere¢0￿]Sed only when the obligation specified in the ￿ntract is discharged. cancelled or expires. InveslmÉnl& Investments in subsidiaries and associates are measured at cost less impairniellt. 2 Ineome from dotLation8 And leg#¢i¢$ Unrestricted funds General TotAI funds Donations and legacies- Donations 63,418 63.418 Total for 2023 63,418 63,418 Total for 2022 57,563 57.563 Page 19 Safar Academy Trust Tr4otes to the Financial Statements for the Year Ended 31 August 2023 3 Income frorn charitable activitiey Unrestricted funds General Total 2023 Thition fet$ 444,549 444,549 Unrestricted" funds General Total 2022 Tuition fees 396,942 396.942 4 Income from other trAding acttvilies Unr¢stri¢t¢d funds G¢ner41 Total 2023 Total 2022 Sale of books App income 901,836 5.776 901,836 5,776 724,702 907.612 907,612 724,702 5 Other in¢ome Unrestricted funds General TotAI funds Total for 2022 2,880 2,880 6 Expenditure rai51118 lunds a) Costs of trading activities Unrestricted funds General TotAI funds Note Costs of goods sold 591.982 591,982 Totsl for 2023 591,982 591,982 TotAI for 2022 324 975 324,975 Page 20 Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 7 Expendllure OD charitable activities Unr¢5tricted ruDds General Total 2023 Note io Stsff Costs Allocated support wsts (see below) 634,347 200,045 834,392 634.347 200,045 834,392 Unrestricted fund5 GenEral Tothl 2022 Note 10 Staff costs Allocated sUPPOrt ¢osis (see below} 525,053 312,147 525,053 312,147 837200 837.200 Support Costs 2023 2022 Rent payabl¢ co￿puter, IT and development costs Consultancy 81.270 8258 110.517 53,656 157,132 101,359 200,045 312.147 8 Other exp¢ndlture Unrestricted funds GenerAI TolAI 2023 Note Audit fees Audit of the fmartcial statements Other fees paid to audstors Depreciation. amortisalion and other similar costs Other restsur¢es expernded 9,240 19,540 2.537 67,640 9,240 19,540 2,537 67.640 98,957 98,957 Page 21 Safar Acyddemy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 Unrestricted funds Total Ge￿traI 2022 Audit fees Audit of the fIllancial statements 8,800 11.415 1.968 48.522 70,705 8,800 11.415 1,968 48,522 70,705 Other fees paid to auditors Depreciation, amortisation and other similar costs Other resources expend¢d 9 Trustees remuneration and expenses During the year the group made the followmg transactions with trnste¢s'. HAII H Ali received ttmuneration of £73,424 (2022- £55,906) during the year. No tn]stees have received any reimbursed expenses or any other benefits from the charity during the year. IO Staff cost5 The aweg&te payroll ¢osis were as follows.. 2023 2022 Staff eosts during th¢ year Trvere: Wage5 2nd salaTies Social security costs PensioJ] costs 607.206 20,678 6,463 455,508 14,214 6,315 476,037 634,347 The monthly average numb￿. of p¢rsons (including sellior management I leadership lea￿> C￿P10yed by the group during the year expressed as fvll time equivalents was as follows- 2023 2022 No Administration Teaching staff 12 78 87 96 90 The number of employees whose ejnolwnents fell within th¢ folloWll￿ bands was: 2023 2022 No £70,001- £80,000 Page 22 Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 Il Txngible fixed as5etS Group Furniture equipment Total Cost At I Septe￿ber 2022 Additions 31,809 2.844 31.809 2,844 At 31 August 2023 34.653 34,653 Depreciation At I September 2022 Charge for the year At 31 August 2023 22.792 2,537 22,792 2,537 25,329 25.329 Net book value At 31 August 2023 9.324 9.324 At 31 August 2022 9,017 9.017 Charlty Furnlture and eqlllpment Total C(bst At I September 2022 AdditioN 31,809 2,844 31,809 2.844 At 31 August 2023 34,653 34.653 Depreciatio At I September 2022 Charge for the year At 31 August 2023 22,7 22.792 2,537 25,329 25,329 Net book value At 31 Augu8t 2023 9.324 At 31 August 2022 9,017 9.017 Page 23 SafAr Academy Trust Notes to the Financial Statejnents for the Year Ended 31 August 2023 12 Fixed asset investments Charity Shares in group underthlung$ and particlpating interests Subsidiary undertaking8 Total Cost At I September 2022 At 31 August 2023 loo loo loo loo Net book value At 31 August 2023 100 loo At 31 August 2022 100 100 Details of llndertaking5 Del&iils of the investments in whith the charity holds 20Vfj or more of the norninal value of any class of share pilal are as followg.. Country of incorporation Proportion of voting rights Principal and shares held activity UThdertaking Holding 2023 2022 Subsidi9ry und¢rtaklDgs Safar Publications Lllnited Ordinary shares IOOYO Sale of books England J3 Stoek Group Charity 2023 2022 2023 2022 Stocks 107,201 181,777 Page 24 Safar Aeademy Trust Notes to tb¢ Financial Statements for thc Year Ended 31 August 2023 14 Debtor5 Group Charity 2023 2022 2023 2022 Trade debtors Due trom group undertakillgs Prepayrn611t5 VAT recoverable Other debtors 20.057 122,987 162,685 453 4226 36.932 26,389 8,926 22.329 8.931 8,889 61,668 57,644 131,918 171,574 15 Cash and cB5b equivalents Group Charity 2023 2022 2023 2022 Cash at bank 100,425 104,064 72299 16 Creditor5'. amounts falling due within one year Group Charity 2023 2022 2023 2022 Trade creditOTS Olh¥r tsxation and socia] seouTity Other creditors Ac(ruals 170,695 10,023 18,776 32,690 67,927 6,856 75,775 24.210 2,084 23.929 23,840 984 2,507 20210 332.184 174,768 49,853 23,70I 17 PensiDn and other Schemes DeFined contribution pensfion seheme The operdtes a defmed contribution peDSion scheme. The pension cost Charge for the year represents contributions payable by the group lo the sch¢￿e alld amounted to £6,315 (2022- £5,484). Page 25 Safar Academy Trust Notes to the Financial Statem¢nts for the Year Ended 31 August 2023 18 Funds Group BalaThce at I September 2022 Ineoming resources Resources expended Balanct at 31 August 2023 Unrestricted funds General 174095 1,415,579 1,525.331 64.343 Balallee at I September 2021 Incoming resources R¢8our¢es eXpe￿ded BAlanee at 31 August 2022 Unmtricted funds General 224,888 1,182.087 {1.232.880) 174,095 Charity Balance at i Seplember 2022 ncoming resources Resourcey eipended Balance at 31 August 2023 Unrestricted fund5 General 229,289 507,967 543.978 193,278 Balance at I September 2021 Jneoming resoureeg Resources expended Balance at 31 August 2022 Unrestricted funds General 224,888 457.385 452,984 229289 Pag¢ 26 Safar Academy TrusÉ Note3 to the Finaneial Statements for the Year Ended 31 August 2023 19 An31y5is of net asset8 between fllnd8 Grollp Unrestricted fllnds GenerAI Total funds at 31 Augll$t 2023 Tdngible fjxed assets Current assets CurreDt liabiliti 9,324 387,203 (332,184 9,324 387.203 332 184 Total net a￿ets 64,343 64.343 Unrestrieted funds CeDeral Totsl funds at 31 Augllst 2022 Tangible f￿ed assets Current assets Current liabilitLes 9,017 339,846 (174,768) 9,017 339.846 (174.768 Tirtal llet assets 174.095 174,095 Cbarlty Unre5trieted funds General Totsl fuThds at 31 Allgllst 2023 Tangible fixed assets Fixed asset investtnents Curr¢nt ass¢ts cll￿ent liabilities 7,049 loo 7.049 100 235,982 (49,853} 235.982 (49,853) Total net assets 193.278 193278 Unrestricted funds Ceneral Tot81 funds 8t 31 August 2022 Tangible fixed assets Fixed asset investtnents Current assets Current liabilities 9,017 100 243.873 23,701) 9,017 100 243.373 {23,701 Total net assets 229,289 229289 Page 27 Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2023 20 Related party transactions Other Gr¢ditOTS of the group includ￿ an amount of £Nil (2022- £60.000) owed to a related paty. Debtors for th¢ parent charity ill¢ludes an amounl of £122,987 (2022 - £162,685) due from the Subsidiary ompany. Page28