Chaiyty registralion number.. 1125653 Safar Academy Trust Annual Report and Consolidatsd Finan¢ial Ststements for the Yeai. Fnded 31 Au8USt 2024
Safar Academy Trust Contents Referei)ce and Adtninistrative Details Trustees, Report 2to5 Independent Auditors, Report 6t08 Consolidated Statement of Financial Activities 9tolO Consolidated Balance Sheet Balance Sheet 12 Consolidated Statement of Cash Flows 13 Statement of Casli Flows 14 Notes lo the Finan¢ial Ststements 15to30
Safar Academy Trust Reference and AdMilltratiVe DetAils Trustee S A Wasim M Baig SMAAmjad 1125653 Charity Registration Number Principal Offjce Unit 235 North London Busin$ Padt Oaklei8h Road South London NII IGN AuditOf8 NA Associate5 LLP Chte1'¢d Certified Accountants Woodgate Studios 2-8 Games Road Cockfosters Hertfordshir¢ EN4 9HN Bank¢J7 HSBC l Aldennans Hill Palmers Grexn ndon N13 5SR Page I
Safar Academy Trust Trustees, Report The trustees. present the ajUal report togethei. with the consoLidated finartcial statements of the charity for the year ended 31 AlUSt 2024. Objectives and activities Objecls and ain Our charity's purpose and aims are set out in the objects contained in the charity's Tnt Deed are: l To advance the education of the publi¢ in Jslami¢ education and pedagogy• 2 To provide grants, loans and other financial a88islance to the poor and needy and institionS for education, welfare, religious needs and provide advice and Lqsistance in obtsininE the same. 3 l'o promote such oihcr charitable putwscs as may froin timc to limc bc dctCiTnined. The school aims lo ensure that children w'e taught tluDugh a curriculuni that 15 direGted by the Word of Alla and the Sunnah of Muhammad (peace be uw)n him). They will learn to diseover and evaluate the world around them from a Muslim PerSptiVe and, by means of a broad curriculum, they will be encouraged to use and develop their gifts in 8 God-conscious way. The objective is to provide a hiah quality Muslim education which will bl'ing tlie best out of all the children gnd enable thern to have confidence in the Muslim faith and to apply its principles to their lives. This phil(K8ophy is reflected in the cutTiculum, discipline and ethos of the school. We achieve our charitable objedives by carryin8 Out th¢ following activiti¢s:_ . Dissemination of resources in Islamic education and pedugogy9 • Development of resource5 and providing support to schools that teach Islamic subjects; Running schools in Ilie UK for children and adults leachin8 Islamic studies. Providing ts'aining to school 5taff- • Help the needy people abroad who suffer from poverty and natural disasteis. Fundrqlsing dlsclosures The gi'oup receives donations throughout the year to further the educational purposes of the charity. Public beMeJ7t The Charity V)8 within the Community to further the advance of education and provide grants or fjnancial assistance to the poor and needy. The trustees confirm that they have complied with the requirements of section 17 of the Charitics Act 201 I to have due regard to the publi¢ benefit guidance published by the Charity Commission for England and Wales. Use of volumleers The group is very gratefvl for the use of volunteers to &ssist with fund raisin Fin4nci#l revlew Policy on reserves The finances are constantly reviewed by the committee and a iEserve policy is established whereby the unrestricted funds not committed should be held in reserve and maintained at a level which ensures that Safar Academy Trust core activity Could ¢onttnue during a period of unforeseen difficulty. Page 2
Safar Academy Trust Trustees, Report Plans for future periods Trustees and Officers The tSteeS and officers serving during die year and since the year end were as follows: Trustees,. S A Wasim (appointed l April 2024) M Bai£ S M A Amjad (appointed l April 2024) H Ali (resigned l April 2024) M H Uddin (resigncd l April 2024) Structurfy governance and management Nature ofgovernlng documenl Safar Academy Trust is a oh.1tble organisation set up to advance 151amic education and relief povetty. Appointment and retirement of trustees is in accordance with the Tiwst Deed. The overall managerncnt of rinance is the responsibility of all the Trustees acting on the recommendations of the Chaimian. the Treasurer nd the advice of the administratorlfinance pei3on. The Truste&s fomi the Management Committee wlio meets regularly to oversee the tvnning of the organisation and mitigating risk. Reeruilmenl and appoin¢menl of lrnslees Trustees are recruited with regard to their skills, knowledge and experience needed for the effective administration of the Charity. TnJstee5 are appointed by a resolution of the Trustees passed at a special meeting. Jndudlon ahd trolulng oflrusiees Trustees arc fully briefed on their r¢snSibl111Ies prior to being appointed. Arraiigémettlsforstitlng kry monagemÈftlpersoniiél iepnuneralion The key management personnel arc the Ttee5 who should not benefit financially from their Trusteeship, unless agrecd upon by the Ttijslees. Organisollonal struelllre The Ttitstees oversee the day to day running of the charity. Major rlsks and pftanagement oflhose rlsks The ttijstees review the major risks to which thc charity is exposed and ensure that systems exist to minimise the impact of any risks on its future effectiveness. The mAjor risks are considered to be: l. DiftTi¢ulty An I'ecruilinE 5tsff. 2. A fall in income dLie to competit(xs' 3. A risk to the reputation of the charity leading to a fail in in(xMn Tliese risk5 are rnitigaled by ensurin8 the quatity of teaching and iK)oks are of a high level. The ¢harity maintains a strong management team and tnonitors feedback from pupils and custoniers. Page 3
Safar Academy Trust Trustees, Report Financial instruments Objeclives aTulpollcles The charity's activities exp)se it to a iiumber of fJnan¢ial risks. The use of financial derivatives is govemed by the charity's policies appmved by the board of trustecs, which provide writt¢n prin¢ipleÉ on Ihe use of financial derivatives to manage these risks. The charity does not use derivative financial in5truinents for speculative pui'poses. StAtement of I'esponsibilities The trustees are responsible for preparing the Trustees. Atmual Report and the fthanciai statements in accordxnee with applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Acccpted Accounting Practice). The law applicable to cliariti&s in Bng]and & Wales i'equires the truste&8 to prepare financial statements for each financial year wlLi¢h give 8 twe and fair view of the slate of affti13 of the chty and of the incoming resoiir¢es and application of I'csourccs of tlic charity for that period. In preparin8 these fmancial statements. the trustees are tEqutred tt): • select suitable accounting poli¢ie5 and then apply them consistently* bserve tlie methods and principles in the Charities SOBP 2019 (FRS 102). make judgements and estimatcs that al'e reasonable and prudent. state whelliei. applicable accounting sfandaith hav¢ been lollowed, subject to any material departures disclosed atjd explaiiied in the financial statements. prepai'e the financial ststements on the going concern basis unless it is inappropriate to presurne that th¢ chartty will cotttinue in operation. The ts'usltts are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time tlie financial position of the charity and enable them ¢0 engure that the financial statements comply with the Chai'ities Act 201 I, the Charities {Accounls and Reports) Regulations 2008 and the provisions of the thvsi deed. Tliey are also i'esponsible for safeguarding the assets of the charity and hen¢¢ for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4
Safar Academy Trust Trustees, Report Dlselusure of Inforinntion lo olldilor Eacli Iruslee has ken steps Ihal Il)ey oughi lo hav¢ lakEll as a Iru5tee in order lo make Iliemselves Awkre of any rLlevan( ttudii infornialion 8nd io establish thAi the cliirity's audilor 15 aware of thBI infoimatioii. 'fhe Iruslces confinn iliat tlierc is 110 relcvaiil infomialioii tlial diey kilow of aiid of which they knoiv Ilie audilor is unaivarc. The annulll report was apprDved by dic trustees of the charity oli . . and siwied oil its b¢half by: S A Wasii Trnslee Page 5
Safar Academy Trust Independent Auditor's Repor( to the Truste&8 of Safar Academy Trust Opinion We have audited th¢ financial statements of Safar Academy (the 'parcnt charity,) and its subsidiary (the 'group') for the year ended 31 August 2024 v4hich compi'ise the Statement of Financial Activities, Balance Sheet, Casli Flow Slakment, and Notes to tlle Financial Siatements. including sionificant accounting policies. The financial reporting framework tl)at has beeli applied in their preparation is applicable law and United Kingdom AccountinE Standards, including Financial Repoiting Stsndard 102 Tbe Financial Reportlng stAnd'd applicable in the and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In OUL. opinion the financial statetnents: give a true and fair view of the state of the group's and parent charity's affairs as at 3 1 Augusl 2024, and of the group's incoming resources and application of resources. including its income and expenditure. for th¢ y¢ar then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and . have b¢¢n prepared in a¢¢ordance with the requiwements of th¢ Clwities AGt 2011. Bxsis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are fi)rther described in th¢ Auditoi s responsibilities for the audit of the financigl statements section of our reporL We are independent of the group and parent charity in aCrdance with the ethical requirements that 'e relevant to our audit of the financial statements in the UK, including die FRC'S Ethical Standard, and we have fvlfilled our othej. ethi¢&l responsibilities in accordance with tliese requii'ements. We believe that the audit evidence we have obtsincd is sufficienl and appropriate to provide a basis f¢x our opinion. Conclusions relatlng to going eontern In auditiiig the financial statements, we have ¢on¢luded that the trustees, use of the going LX)ncern bASiS of accounting in the preparation of tlie financi slatemeols is appropriat& Based on tlie wo1* we have performed. we have not idenlified any material unc¢rtaTnties relating lo events or conditions diat, individually or coll¢¢tively, may cast significant doubt on the group and parent charity's ability to c4)ntinue as a 80ing colln for a peri(MJ of at le&rf twelve months from when the fanCial statements are authoi'ised for issue. Our responsibilities and the responsibilities of the tnjstees with respect to going Lxsncern are described in the i'elevant sections of this report. Othei. infornjation The othei, information comprises the infoiThation included in the trustces annual reporL oth. than the financial ststements and our auditor's report thereon. The twstees are resw)n.%ible for tlie other information contained within the annual report. Ow. opinion on the financial ststements does not cov¢i' the other information and, except to the extent otherwise explicitly stated in our report, we do not express any foi'm of assui'ance nclusion thereon. Our responsibility is to read the other information and. in dolng so, consider whether the other inforn]ation is materially inconsi5t¢nt with the fmancial statements or our knowle41ge obtained in the course of the audit or otherwise appears to be materially nii&stated. If we identify such rnaterial incon5iSten¢ies or apparent malerial mi5Statements. we are required to determine whether this gives Tise to a material misstatement in IE]e financial statements themsel. If, based on the work we have perfomed, VL conclude that there is a material misstatement of this other infomation, we are irquired to report tliat fact. We have nothing to report in this r¢Bard. Mstters on which Ive are required to report by exception We have nothin8 to report in respect of the following mattern in relation to whiGh die Cliarities (Accounts and Reports) Regulations 2008 require us to reportto you if. in our opinion: Page 6
Safar Academy Trust Independent AudAtor's Report to the TrnSte of Safar Academy Trust the information given in the financial statements is inconslstent in any material respect with the Intees, suificient accounting records liave not been kept. or the parent charity's financial statements are not in agreement with the 8ceounting records and returns; or we have not received all the infornlation and explanations we require for our AudiL Responsibilities ol trustees As explained mol'e fiilly in the ttvstees. resN)nsibilities ststement. the tntstees responsible for the preparation of the fillanGial statement5 and for being satisfjed that they give a true and fair view, and for such intemal control &£ the trustees determine is necessary to enable the prepar4tion of fjnancial statements that are frcc from material nlisststcCrtl whcthcr due to fraud or error. In pi'eparing the financial statements, the trustees are responsible for assessing the group and parent charity's ability lo continue &s a going Concern, dis¢losin& ag applicable, matters related to going concern and using the gning concern basis of accounting unlcss thc trustces either intend to liquidaie the group or the parent charity or to cease operations, OL. have no realistic altei'native but to do so. Auditor responsibilitiu for th¢ audit of the finan¢i*l ststemeDts We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations mode under section 154 of that Act. OUL. objectives are to obtain reasonable assurance about whether the financial statements as a wl)ol¢ are free from matet'ial misststement, wl)ether due to fraud or er. and to issue an auditor's report that includes our opinion, Reasonabl¢ assurance is a high level of SUrance, but is not a guarantee that an audit eonducled in accordanet with ISAS (UK) will always detect a material misstatement when il exists. Misstateinents can arise from fraud or error and are Considered material if. individually or in tl)e aggregate. they could Irasonably b¢ expeGt¢d to influ¢nc¢ the rfonomi¢ d¢Gisions of users taken on the basis of these financial statements. In'egularities, including fraud, are instances of non-¢omplian¢e with laws and regulations. We design procedures in line with our responsibilities, outlined above, Éo detect material misstatements in pect of irregularities, including fraud. Tlie extent to which our procedures are eApable of detecting irregularitios, including fraud is detailed below". • Discussions witli management, including considcration of known or suspected instan¢es of non-compliance with laws and regulations and traud, and Identifying and testing significant manual journal elltr1 and reviewing &%sumptions and judgements made by management in niaking significant accounting estimates. Because o£the inherent lirnilations of an audit, there is a risk that we will not detect all irregularities, including those leading to 8 material misstatement in the fmancial statements or non-compliance wlth regulation. This i'isk increases tiic moit that compliancc with a law or regulation is removed fmm the events and transactions IEfleGted in the financial stat¢m¢nls, as w¢ will be Ig55 likely to becojne aware of instances of non-compliance. The risk is also greater re8arth'nB irregulariti&8 occurring due to frdud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As parl of an audit in accordance with ISAS {UK). we exercise pmfes5ional judgement and maintsin professional s¢epti¢ism throughout the audit. We also-. • Identify and assess the risks of material mi&8t8tement of the fjnancial statements, whetlier due to fizud or error. design and perforni audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for oui" opinion. The risk of not detecting a material mi&stsfrment resulting from fraud is higher than for one resulting from error. &8 fraud may involve collusion. forgery, intentional ornissions. niisrepresentations, or the override of intern81 ¢ontrol. Page 7
Safar Academy Trust Independent Auditor's Report to the Trustees of Safar Academy Trnst Obtain an understanding of internal control relevant to the audil in order to design audit procedures ihat are appropriate in the circumstances, but not for the purpose of expirssing an opinion on the effectiveness of the group's intem21 eontrol. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting tiMateS and i'elated disclosures made by the trustees. . Conclude on the appropriateness of the trustees. use of the going eoncei"n basis of a¢counlin£ and. based on the audit evidence obtained, whethei- a material unG¢ilainty exists related to ¢vents or wndilions that may cast signifIcant doubt on the group's or charity's ability to Continue as a going concern. If we conclude that a material uncertainty exists, we are required to drnw attention in our auditor's report to the relalcd disclosures in Ilie financial stateinents or, if suth disclosures are iDad4uat4 to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However. futurt eVts or Lx)nditions may cause the group or parent charity to ce&se to continue as a going concun. Evaluate the overall presentation, strucbjre and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true alld fair vlew). Obtain sufficient appropriate audit evidence regwling the financial inforniation of the entities or business activities within the group to expr&ss 8n opinion on the consolidated financial statements. We are responsible for the direction, supetviston and performance of the group audiL We remain solely responsible for out. audit opinion. We communicate with those ¢haiEed with governance regardin8, among other matters, the planned scope and timing of the audit and significant audit findtn8s. includlng any significant deficiencA&q in intemal control that we identify during our audit. Use of our report This report is made solely to the tharity's trustees, as a body, in a¢1rdance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work ha5 been undertaken 50 that we might slate lo the charity's trustces Iliose matters we are required to slate to them in an auditor's reEM)rt and for no other purpose. To the LIest exl¢nt permitted by law, do iiot accept or assume responsibility to anyone other than the ¢harity and tlie charity's trustees as a Edy, for our audit woll(, for diis r¢por¢ or for the opinions we have forrned. NA Associates LLP Chaitered Certified Accountants and Statutory Auditors W¢)odgat¢ sdI0$ 2-8 Games Road Cockfosters Heitfordshire EN4 9HN NA Associates LLP is éligible lo dcl ar an Liwkn'I, in lei'ms ofseclion J212 oflhe Comwnies Aci 2006. Page 8
Safar Academy Trust Consolidated Statement of Financial Actlvities for the Year Ended 31 August 2024 Unrestricted funds Total 2024 Note Income and Endowments from: Donations and legacies Charitable activities Other trdding activities 101,337 489,241 913,799 101,337 489,241 913,799 Total income 1,504.377 1,504,377 Expenditure on: Raising funds Charitable activities Other expenditure (501,529) (918,961) (63,031) (501,529) (918,961) (63,031) Total expenditwe (1,483.52 L 1,483,521 Net income 20.856 20.856 Net movement in fvnds 20.856 20,856 Reconciliation of funds Totsl fimds brought forward 64,343 64,343 Total ndS carried forward 17 85.199 85.199 The notes Oll pages 15 to 30 forni an intsgral part of these financial 5tate]nents. Page 9
Safar Academy Trust Consolidated Statement of Financial Aetivities for the Year Ended 31 August 2024 Unrestiicted funds Total 2023 Note Income and Endowment8 from: Donations and legacies Charitable activities Other trading activities 63,418 444.549 907,612 63.418 444.549 907,612 Total income I,415.579 1,415.579 Expenditure on: Raising fvnds Charitsble activiti Other expendibjre Total expenditure (591,982) (834,392) (98,957) (591,982) (834,392) 98,957 ,525,331 ,525,331 Net expenditure Net movement in fiinds 109,752 109,752 (109,752) (109,752) ReeonelllAtlon of funds Total funds brought forward 174.095 174,095 Total funds carried forwai'd 17 64,343 64,343 All of the gjoup's a¢tivilies derive from continuing operations during the above h¥0 periods. The funds breakdown for is shown in the notes 17. The notes on peS 15 to 30 fM an integral part of these financial statements. Page 10
Safar Academy Trust (Registration number: ) Consolidated Balance Sheet a5 at 31 August 2024 2024 2023 Nvt¢ Flxed *5sets Tai)&Tible ossels 10 8.370 9,324 Cui'rent yssels Slocks D¢biors Cosli #l bank And in h8iid 12 13 14 159.730 42,886 204.111 107,201 61,668 218.334 406,727 387.203 Credltor5: Amounts falllng due wlthln one year 15 329,898 332,184 Nel ¢urr¢Mt Issets 76.829 55,019 N¥1 Msset5 64,34J rb uiids of Ilio grDUP: Unr¢sti'l¢t¢d infome funds Uiire51ricled fiinds 85,199 64,343 'rotal funds 17 8.S,199 64,J43 I'lie fiiianLial slalenieiils on payes 9 tts 30 iv¢re approved by the Inisiee& Aiid autl)orised for issue on .-¥.4s-. and signed on Ihcir behalf by.. S A W85im Truslee llie i)otes on pgieg 15 10 30 form an integr81 part of diese financial slatemenls. Pa8e 11
Safar AcRdemy Trust <Rcgi.4tration numbcr.. ) BAlaiice Sheet as At 31 August 2024 2024 2023 Note Fixed 0sstt5 TaiiLJible llssets Iniie5tments 10 5,081 00 7,049 100 5,181 7,149 Current 1155et5 DebioTS Cash al bniik and in hrlnd 13 14 263.063 ¥4,347 131.918 104.064 347.410 235.982 Creditors.. Amoun15 fqlling due ivltliin one yeAr Ntt current xssels 15 77.414 49.85J 269,996 186,129 Ncl fiss¢tJ 275,177 193,278 Funds of the ehArity: Uiirestrlc¢ed lii¢oni¢ fuiids Unreslri¢led fvi)ds 275 177 193,278 Tol#l fu$ 17 275,177 193,278 Tlie financial 5tatemcn15 on pages 9 to 10 ii'crt opprovd by the trustees. and authorised for issue on q4&.. and sigiied on iheir beliolf by: S A Wesini Trustee The noie5 011 Pages 15 to 30 forin ali integrnl part ofihese fiiiancial 5tal¢ni¢iils. Page 12
Safar Academy Trust Consolidated Statement of Cash Flows for the Year Ended 31 August 2024 2024 2023 Note Cash Ilows from opeY4ting activities Net cash illcomel(expenditure) 20,856 (109.752) Adjustments to cash flows from non-cash items Depreciation 2.821 23,677 2,537 (107,215) Worklng eApit#l Adjusthients (In¢ffaseydecrease in stocks Decre&se1(incre) in debtors (Decrease)lincrease in creditors 12 l3 15 (52.529) 18,782 (2,286 74.576 (4,024) 157,416 Net casli flows from operatin8 activities (12,356) 120,753 Cash flows from investing activities Pur¢hase of tangible fixed assets io {1.867) (2.844 Nel (decreaseyincrease in cash and eash equivalents (14,223) 218,334 117,909 Cash and cash equivalents it I September 100.425 Casli and ¢Ash equivalents at 31 August 204.111 218,334 All of the cash flows are derived fiom continuing opei*tions during the above two periods. The notes on pa£es 15 10 30 fomi an intsgral part of these financial statements. Page 13
Safar Academy Trust Statement of Cash Flows for the Year Ended 31 August 2024 2024 2023 Note CAsh flow5 from operating activities Net casli incornel(exp¢nditure) Adjustments to cash floivs from Don-cash items Depreciation 81,899 (30,01 I) 1,968 83,867 1.968 (34,043) Working capital adjustments (In¢reascydcGI'ease in debtors Increase in creditors 13 15 {131,145) 27,561 39,656 26.152 Net cash flows from operating activities Net {deKir8s¢y1ncre in cash and cash equivalents Cash and cash equivol¢nts at I September (19,717) 31,765 (19.717) 31,765 104,064 Cas11 and cash equivalent$ at 31 August 84.347 104,064 All of the cash flows are derived from continuing operations during the above two periods. Tlie notes on pages 15 to 30 fonn an integral part of diese financial statements. Pa8e 14
Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2024 l Accounting polieies Summary of significAnt Aceountlng policies gnd key accounting estimates The prinG(pal accounting p)licies applied in the preparation of these financial statement5 aiE set out below. These policies bave been consistently applied to all the years presented, unless otherwise staled. Statement of compllAnce The financial statements have been prepared in accordane£ with Accounting and Reporting by Charities: Statement of Recommended PrdCti¢e (applicable to charities preparing their accounts in accordance with the Financial Repoiting Stsndai'd applicable tn the UK and Republie of Ireland (FRS 102)) (issued in Uctober 2019) (Charities SORP (FRS 102)), the Financial Rew)rting Standard applicable in the UK and Rcpublic of li'eland (FRS 102). The rharity constitutes a public benefit entity as defined by FRSIO2. Basi8 of prepar*ti(•n Safar Academy Trust meeLq the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical Cost or lrnnsaction value unless otherwise stated in the relevant a¢coulltillg policy notes. Safar Academy Tiwst is an unincorpotxted charity based in England, United Kingdom and which operates fiDm its principal offi¢¢. The accounts are prepared in the groups functional currency of Britlsh Pounds (£) and rounded to the neaTest £1. Basis of tonsolid#Uon The Consolidated financial stslements consolidate th¢ fmancial statements of the charity and its subsidiary undertaking drawn up to J l August 2024. No statement of financial activities is presented for the parent charity as permitted. The parent thai-ity made a profit for the financial year of £81,899 (2023 - loss £36,011). Pa8e 15
Safar Academy Trust Notes to the FinaThcÈal Statements for the Year Ended 31 August 2024 A subsidiaiy is an entity controlled by the charity. Control As achieved whel'e the chaiity has the to govei the financial and operating policies of an entity so as to obtsin ben¢fits from its aGtiviti. The results of subsidigries acquired or disposed of during the year are included in the statement of finan¢ial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where nece&88ry) adjusthlents are made to the fjnancial statements of sub&Adiari&g to bring their accounting policies into line with those used by the group. The purchase method of accounting is used to account for business combinations that result in the acquisition of Subsidiari by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilitiu incurred or &ssuined at the date of exchange, plus costs directly attributable to the business combination. Identifiable ets acquired and liabilities and contingent liabililies assumed in a business eombination are me&qur¢d initially at their fair values at the acquisition date. Any excess of the cost of the businc5s combinaliun OVCT ihe acquir¢r's inlerest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised i& recorded &8 goodwill. InteTrcompany transactions, balances and unrealised gaiJk8 on transactions between the charity and its subsidiaries, which al'e related parties, are eliminated in full. Intt2-group losses are also eliminaled but rnay indicate an impaimienl that qUireS recognilion in the onsolidaled financial statements. Accounting policies of subsidiaries l18ve been changed where neces5aiy to ensure consislency with the policies adopted by the gmup. Non-controlling interests in tlle nd &ssets of ¢onsolidaled subsidiaries are identified separately from the group's equity Iheitin. Non-controlling inteiESts consist of the amount of those intei'ests at the date of the oi'i8inal busin combination and the non-controlling shareholder's share of changes in equity since the date of the combination. Totsl comprehensive Income is attributed lo non-contn)IlinE interests even if this results in the non-controlling inlerests having a deficit balance. Golng concern The financial statements have been prepared on a going ¢oncem basis, as the trustees consider that there are no material uncertainties about the group's ability to continue as a going conttrn nor any significant areas of uncertainty that affect the carrying value of assets held by the group. The gmup made a profit in 2024 while making a loss in 2023 and 2022 which vrds due mainly one off software development costs in the subsidiary for a new App that will be launched in 2025. Since the year end the group has has continued to making a profit nd expect the group to continue lo do so into the foreseeable future. Accoixlingly the financial statements have been prepared on a going Concern bosis. Incollle and endojvments All incorne is recognised once the charity has entitlement to the income, it is pmbable that the income will be received and the amount of the income receivable can be measured reliably. DoAolions andle8acies Donations are recognised when the cliarity has bttn notifjed in writing of both the amount and settlement date. In tile event tliat a donation is subject to conditions that require a l¢v¢l of perforniantt by the charity before the hai'ity 15 entitled to the fijnds, the income 15 defen'cd and not recognised until eithei. tbose conditions 'e fi]Ily met, or the fulfilment of tbose conditions is wholly within the control of the eliarity and it is probable that these conditions will be lfilled in the reporting period. Page 16
S2f&r Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2024 Charilable acllvilies Charitable income arises from tuition fees and is reu)gnised whell tuition has ken place and the charity is entitled to the inwmc. Other in¢om¢ The subsidiwy income arises from the sale of books and is recognised once the books are di8patched to the ustomer. Expenditure All expenditure is recognised once there ts a legal or constrnctive obligxtton to that expenditure. it is pbabIe scttlcmcnt is rcquii'ed and the amount Can bc measured rcliably. All costs are allocated to the applicoble expenditure heading that aggregate similar costs to that category. Where costs Gannot be directly attributed to P8rti¢ular ljeadings they hav¢ b¢¢n allocat¢d on a basis Consistent with the use of resoui'ces, with centi?1 staff costs allocatcd on thc basi5 of timc spcnt, and dcpi'cciation charges allocated on th¢ portion of the asset's use. Other support costs are allocated based on the sptrad of staff costs. Rolxlngfunds These are Costs incutTed in attracting volunlary income. the management of investments and those incuiTed in trading activities that raise funds. Charltable acllvlfles Charitsble expcnditure comprises those costs incurred by the charity in the delivery of its activities and seivices for its benefjciaries. It include5 both costs that can be allocated directIy to such activities and Ihose rosts of an indirect nature necessary to support them. Support costs Support costs include central functions and have been allocated to activity ea8t categories on a basis Consistent with the use of roUrces. for example. allocating property CA)Sts by floor areas, or per capita, staff costs by the time spent and other costs by ti)eir usa£e. Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses. Governmen( grants Grdnts aLf recognised in the period to whtch they late. T4gible fixed assets IndivAdual fixed assets are initiolly recorded at cost. less any subsequent accwnulated depreciation and subsequent accumulated impairnient losx8. Depreciation and %mortisation Depreciation is provided on tangible fed assets so as to write off the cost or valuation, less any ¢stimat¢d residual value, over their expected use1 economic life as follows: Asset class Fixtures, fittings and equipment Depreciation metliod And rnte 200/• strai£ht line metliod Page 17
Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2024 ReseHrch and development Research and development gxpKnditui'e is Mritten off in th¢ profit and lo&s account as incurred. Buslness combtnations Business combinations are accounted for under the purchase method. Where necessary* adjuslments are made to the financial statements of subsidiaries to bring the accounting poLicies used into line with those used by the charity. All intra-group tTansa¢tions, balances, income atkl expenses are eliminated on consolidation. In accordance witli Section 35 of FRS 102, Sedion 19 of FRS 102 lias not been applied tn these financial statements in i'espect of business Combinations efftcted prlor to the date of transition. Sloek Stock is valued at the lower of cost and estimaled %elling price less costs to ¢ompl¢t¢ and sell, after due regai'd for obsolete and slow moving stock& Cost is deterniined using the first-in, firslvoul (FIFO). TrAde debtors Trade debtors and othej. debtors are measured at co3L le&s pmvision for impairment. A pmvision for the impairment of debtors is establislied when there is objective evidence that the gP will not be able to ¢ollect ail atnounts due according to the original terms of the receivables. CAsh and eash equivalents Casli and CRsh equivalents comprise cash on hand 8nd call deposits. and other sliort-tern Iiiglily liquid investments tha¢ are readily Convertible to a known amount of cash and are subject to an insi2nifJcant risk of change in value. TrAde creditors Trade creditor5 and other creditors are obligations to pay for goods or services. Accounts payable are classified as current liabilities if the group does not have an un¢ondition21 righL at the end of the reporting period, lo defer settlement of the creditor for at least twelve months after the reportin8 date. If there is an uncoftdilional right to dcfcr settlelnent for 8t least twclve months after the reprtIng dat4 they are prL8ented non-current liabilities. Ti'ade ¢reditoi3 and other creditorn are recognised at cost. Fund sti'ucture Uw'e5tricted income funds are general funds that are available fol. use at the trustees discretion in furtherance of the objeolives of the Charity. Penslons and other post retirement obli%ations Tlie charity opei'ates a defined Conts'ibution pension scheme which is a pension plan under which fixed ontributions air paid into a pension fund arLd the ¢harity ha5 no legal or con5ttwctive obligation to pay fLuther contributions even if the fijnd does not hold sufficient assets to pay all employees the benefits i'elatAn8 to employee service in the current and prior periods. Contributions to defiiied contribution plans are recognised in the Statement of Financial Activities when they are due. If ¢ontributiort payments exceed the contribution due for service. the excess is recogniscd as a prepayment. Page 18
Safar Academy Trust Notes to the Financial Statements for the Year Ended 31 August 2024 Financial instruments Classlficalion Financial ossets and financial liabilities are recognised when the charity 1ComeS a party to the contraciual provisions of the instnlment. Flnancial liabilities and equity instrnrnents are classified according to the substsnce of tbe c4)ntracMal arrangements entered into. An equity instrument is any contr1 that evidCeS a residual interest in tlie assets of the Gharity after deducting all of its liabilities. Recognition and pneasuremenl All financial ets and liabilities are initially me&sured at transaction price (including transaction costs), except foi, those financial assets Classified as at fair valu¢ through piDfit or 10&8. which are initially me&qured at fair valuc (which is normally thr transaclion price excluding (ran5action sts), unles5 thc arrangcmcnt constittrtcs a financing trnnsaclion. If an arrangement constitutes a fmancin8 transaction, the finatjcial asset or financial liability is measured at the present value of the fLrtur¢ payments dis¢ounted at a market rnte of interest for a similar debt in5trumenL Financial assets and liabilities are only offset in the statement of financial position when, and only vth¢n there exists a legally enforceable right to set off the recoonised amounts and the charity intends eitlier to settle on a net b8SiS, Oi. to realise the asset and settle the liability simultaneously. Financial assets are derecognised when llnd onty when a) the contractual rights to the casli flows from the financial asset expire or air settled. b) the charity transfers to another party substantially 811 of the risks and rewards of ownership of the financial asset, or c) the charity, despite having relained some. but not all, significant risks and rewards of ownership, h8s kn'ansferred control of the asset to another party. Finan¢ial liabilities are derecognised only th the obligation specified in the contract is discliarged, cancelled or expir&8. InV£ents Investments in subsidiaries and 8SSOCiates Arc measured at cost le impairment. 2 Income from dongtions and legAcle8 Unrestricted fund5 General Total funds Donations and lewies; Donations 101,337 101,337 Total for 2024 101,337 101,337 Total for 2023 63,418 63,418 Page 19
Safar Academy Trust Notes to the Financial Stxtements for the Year Ended 31 August 2024 3 Incoine from charitable activities Unrestrieted funds CenerAI Tolal 2024 Tuition fees 489.241 489.241 Unrestrlcted funds GenerAI Total 2023 Tuition fees 444.549 444,549 4 Income fi'om other ti?dlng actfvities Unrestriettd funds GenÈr•l TotAI 2024 Total 2023 Sale of books App income 895,045 18.754 895,045 A 8,754 901,836 5,776 913,799 913,799 907,612 Page 20
Safar Academy Trust Not to the Financial Statements for the Year Ended 31 August 2024 S Expenditure on raising fund8 ) Costs of trading Aetivities Unrestj'icted rullds Ceneral Total funds Note Costs of goods sold Total for 2024 501,529 501,529 501,529 501,529 Total foi. 2023 591.982 591,982 Page21
Safar Academy Trust Notes to the Finaneial Statements for the Yerdr Ended 31 August 2024 6 Expenditure on charitable activities Unrestricted fund5 General Total 2024 Nots Staff costs Allocated support costs (see below) 711,166 207,795 711,166 207,795 918,961 918,961 Unreslritted funds General TotAI 2023 Not¢ Staff costs Allocated support Costs (see below) 634,347 200,045 634,347 200,045 834 392 834 392 Support Costs 2024 2023 Rent payable Cornputer, IT and development costs Consultan¢y 78,485 7,708 121,602 81,270 8,258 110,517 207,795 200,045 7 Other expendlture Unrestricted funds General Total 2024 Note Audit fres Audit of the fmancial statemenls Other fees paid to auditors Depreciation. amortisation and other similar costs Other reSoUe$ expended 9,900 19,010 1,968 32,153 9,900 19,010 1,968 32,153 63.031 63,031 Page 22
Safar Academy Trust Not to the Financial Statements for the Year Knded 31 August 2024 Unrcstrict¢d rund5 Total GenerAI 2023 Audit fees - Audit of the financial statements 9,240 19,540 2.537 67,640 98,957 9,240 19,540 2,537 67.640 98,957 - Other fees paid to auditors Depreclation. atnortisation and other similar sts Other resource5 expended 8 Trustees r¢muner8tion and ¢xpen8es During the year the 'oup made the following transactions with trustees: HAII H Ali received remuneration of £42,616 (2023.. £73,424) durirtg the year. S A WAslm S A Wasim received remuneration of £24,969 (2023: £Nil) durin8 the year. SMAAmiad S M A Amjad re¢eived remuneratisjn of £20.833 (2023: £Nil) during the year. No ttwstees have received any reimbursed expenses or any other benefits from the chlty during th¢ year. 9 Staff costs The aggregate paymll costs were as follow8: 2024 2023 Staff costs during the year were: Wages and salaries Social security costs Pension costs 667.004 37,006 7,156 607,206 20,678 6,463 711.166 634,347 Page 23
Safar Academy Trust Iyotes to the Financial Statements for the Year Ended 31 August 2024 The monthly av¢iYge iiumber of persons (including senior management I leadership teatn) employed by the group during the year expressed as full time equivalents was as follows". 2024 2023 Administration Teaching staff 24 71 25 71 95 96 The number of employees whose emoluments fell withtn the following bands was: 2024 No 2023 £60,001- £70.000 £70,001- £80,000 Page 24
Safar Academy Trnst Notes to the Financial Statements for the Year Ended 31 August 2024 10 Tangible red assets Group Furniture and equipment Total Cost At I Septernber 2023 Additions 34,653 1,867 34,653 1.867 At 3 l August 2024 36.520 36.520 Depreciation At I September 2023 Charge for the year 25.329 2,821 25,329 2,821 At 31 August 2024 28,150 28,150 Net book value At 31 August 2024 8,370 ,370 At 31 August 2023 9,324 9.324 Charity Funilture #nd equipment Total Cost At I September 2023 31,809 31,809 At 31 AugLLSt 2024 31.809 31,809 Depreciation At I S¢pt¢tnb¢r 2023 Chargc for the year 24,760 1.968 24,760 1,968 At 31 August 2024 26,728 26,728 Net book value At 31 August 2024 5,081 5,081 At 3 l August 2023 7,049 7,049 Page 25
Safar Academy Trust Notes to the Financial Statements for the Yr Knded 31 August 2024 11 Fixed ASSÈt invL8tments Charity SharL8 in group undertalungs and pxrtteipxting interÈsts Subsidiary und¢rtkinEs TotAI Cost At I September 2023 At 31 August 2024 loo loo loo loo Net book vAlue At 31 August 2Q24 At 31 August 2023 100 loo 100 100 Detolls of undeitsking8 Detai13 of the invcstments in whi¢h th¢ charity holds 20Vo or more of the noininal value of any Class of share ¢&pital are &8 follows: Country of ineoryontion Proportion of voting rights PriDcipAI nd shres held ietlvlty UndertRking Holding 2024 2023 SubJidiAry uThdeit*kings Safar Publications Limited Ordinary shares England IOOVO I i)0¥ Sal¢ of Ix)oks 12 Stock Gi"oup Charity 2024 2023 2024 2023 Str)cks 159,730 107,201 P8g¢ 20
Safar Academy Trnst Notes to the Financial Statements for the Year Ended 31 August 2024 13 Debtors Group Cb&rity 2024 2023 2024 2023 Trade debtOTS Due from group undertakings Prepayments VAT recoverable Other debtors 28,622 20.057 254,585 122,987 453 4,226 36,932 5,786 8,478 8,478 263.063 8,931 131,918 42,886 61,668 14 Cash and cash equiYAlents Group Charity 2024 2023 2024 2023 Cash at bank 204,111 218,334 84.347 104,064 15 Creditors: amounts falling due within one year Group Charity 2024 2023 2024 2023 Trade creditors Other taxation and social security Trustees Current accounts Other creditors Accrnals 64278 12.790 79,355 136,582 36,893 170,695 10,023 5,044 2,084 J18,776 32,690 51,309 21,061 23,929 23,840 329,898 332,184 77.414 49,853 16 Penslon and other schemes Defined contribulioll pension schern¢ The wup operates a defed contribution pension scheme. The pe10Th cost charge for the year represents contributions payable by tt]e group to the scheme and amounted to £7.156 (2023 - £6,463). Page 27
Safar Academy Trust Notes to the Financi21 Statements for the Year Ended 31 August 2024 17 Fund8 Group Ballnce #t I September 2023 Incoming resources Resources expended Balance at 31 August 2024 Unrestricted funds General 64,343 1,504,377 J,483,521 85,199 BalAnce at I Septeinber 2022 Incomlng resources Resources expended Balallce at 31 August 2023 Unrests'icted funds General 174,095 1,415,579 1.525,331 64,343 Charity BAlinee at I Sep¢eTnber 2023 Incomlng resourte8 Resourtes expended Bal4nce 9t 31 Augu.8t 2024 Unrestricted fund8 General 193 278 590,578 508,679 275,177 Balanee At I September 2022 Incoming resources Resources expended BAIAnce at 31 August 2023 Uni'estricted (und8 General 229,289 507,967 543,978 193,278 Page 28
Safar Academy Trust Notes to the Financial Statements for the YeAr Ended 31 August 2024 18 AJJalysis of net assets between funds Group Unyestrieted funds CeDerAI TotAi funds At 31 Au2USt 2024 Tangible fixed assets Current assets CuiT¢nt liabilitie8 8370 406,727 (329,898 8,370 406,727 329.898 Total net assets 85,199 85,199 Unrestrlcted funds General Total fund5 at 31 August 2023 Tangible fixed assets CuiTent assets Current liabilities 9,324 387,203 332,184 9,324 387,203 332,184 Total net assets 64,343 64,343 Charity Unrestrieted funds General Totgl fund8 at 31 August 2024 Tangible fixed assets Fixed a$3et investments CuiTenl assets Cui'r¢nt li&bilfjti¢s 5,081 loo 347,410 77.414 5,081 loo 347,410 (77,414) 275,177 Total net assets 275.177 Unrestricted funds General Total funds At 31 August 2023 Tangible fixed assets Fixed asset investments Current assets Current liabilities 7,049 loo 235,982 (49,853) 193,278 7,049 loo 235.982 (49,853 193.278 Total net assets Page 29
Safar Ac2demy Trust Notes to the Financial Statements for the Year Ended 31 August 2024 19 Related PArty transactions Otljer ¢r¢ditors of the giDup includc5 an amount of £102,471 (2023 - £Nil) owed to a related paty. Debtors for the parent Gharity includes an amount of £254.585 (2023 - £122.987) due from the subsidi company. Page 30