REGISTERED COMPANY NUMBER: 06471324 (England and Wales) REGISTERED CHARITY NUMBER: 1125851 REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 FOR THE MARKFIELD INSTITUTE OF HIGHER EDUCATION (A COMPANY LIMITED BY GUARANTEE)
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION CONTENTS OF THE FINANCIAL STATEMENTS For The Year Ended 31 December 2024 Page Reference and Admlnlslratlve Detalls Report of Ihe Trustees Slalement of Trustees, Responslbllltles Report of the Independent Audllors statement of Flnanclal Actlvllles 10 Balance Sheet Cash Flow Stalemenl Notes to the Cash Flow Slotement Notes to the Flnonclal Statemenls 14 to 23 Detailed Statement of Flnancial Aclivllles 24 to 25
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION REFERENCE AND ADMINISTRATIVE DETAILS For The Year Ended 31 December 2024 TRUSTEES Mr F S Murad Prof K Ahmad Iresigned 28.6.241 Dr S M Ahmad Dr M Ahsan Dr M Ruby Mr M T Abdulloh DrMMAIIy REGISTERED OFFICE Ratby Lane Marklield Leicester Leicestershire LE67 9SY REGISTERED COMPANY NUMBER 06471324 IEngland and Wales) REGISTERED CHARITY NUMBER 1125851 AUDITORS TC Group 31 High View Close Hamilton Ollice Park Leicester Leicestershire LE4 9LJ BANKERS Barclays Bank UK PIC Leicester Town Hall Square Leicester LE87 2BB Poge I
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION REPORT OF THE TRUSTEES For The Year Ended 31 December 2024 The trustees who are also directors of the chority for the purposes of the Companies Act 2006, presenl their report with the financial statements of the charity for the year ended 31 December 2024. The Iruslees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordonce wilh the Financial Reporling Standard applicable in the UK ond Republic ol Ireland IFRS 1021 leffeclive l January 20191. OBJECTIVES AND ACTIVITIES Objectives and alms The Morkfield Institute of Higher Educotion IMIHEI was established in September 2000, with Ihe objective of conducting research, providing professional development COUt5es. and validated higher educational programmes in Islamic subject5. Like other higher education instilulions, the Institute hos been regulated by the Office for Students IOfSI since registering with it in March 2019.11 is also accredited by the British Accreditation Council IBACI. It holds o UKVI Student Route (with a track record) ond Skilled Worker Sponsorslalus lo recruit sludents and stall from overseas. Signillcanl activlties The Institute offers undergraduate and postgraduate programmes, volidated by Newman University, in Islamic Studies. Islomic Education, Islamic Banking and Finance, Islam and Sustainable Development. and Islam and Pastoral Care/Chaplaincy. Ils key aclivties include teaching and learning. research and scholady activities, and community engagement. These activities aim to equip students with knowledge and academic skills Ihat enable them to become specioliits, pursue professional careers, and become responsible citizens who can make valuable social and economic contributions to society. During the 2023-24 acodemic year, 60 students graduated from the Institule from its different courses. In addition. the Inslilule delivered some short executive programmes and reseorch seminars. Publlc beneflt The Institute, through its governing body. the Board of Directors. is aware of its responsibilities as a chority lo act for the public benefit across all of its activities and has had due regard to the latesl version of the Charity Commission's public benefit guidance. The Institute endeavours to advonce education and knowledge in Islamic disciplines through learning ond teaching. scholarship ond research for the benefit of individuals and society. 11 contributes to the development of professionals and scholars who have a broader, deeper and critical understonding ol Islom in the conlemporary world. Such scholars would be better equipped to promote understanding and social cohesion amongst the diverse communilies in sociely. ond analyse theological, social. economic ond educational problems faced by contemporary societies and offer creative solutions to addiess these. To develop competent graduales, the Institule combines the richness and high standards of Iraditional and contemporary Islamic %cholar5hip with contemporary cutting-edge research methods, academic rigour and critical analysis. We strive lo ensure thot our graduates leave with mastery ol a discipline, critical thinking, conceplual reosoning and anolytical skills, as well as advanced wrilfen and verbal communication skills, ond a personal commitment lo ethical and professional principles and standards. We are committed to being on open higher education institution that proactively seeks out people capable of benefiting from higher education, minimises barriers to their participation and contributes to the expansion of higher education opporlunities, nationally and intemationally. The Instilute proiided a limited number ol scholarships and bursaries to help those sludenls with a Irack record of outstanding academic performonce and o strong sense of purpose, or to help those students who might not be able to enter into higher education without such financial support. Page 2
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION REPORT OF THE TRUSTEES For The Year Ended 31 December 2024 STRATEGIC REPORT Achlevement and performance Engagement with staff staff engagement, conlribution and development ore valued and seen as important in the delivery of our stralegy. We are committed lo professional values and endeavour to creale an inclusive culture where oll staff can contribule to the development of the Institute and are supported in their work. All staff are engaged in regular consultations related to strategy and operational matters. Through a range of committees and communication methods. staff provide input into shaping the priorities ond direction of Ihe Institute. Relevont staff developmenl and training are encouraged to ensure effective performance, teaching and academic operotions quality, and the maintenance of academic and administrative slandords. Slaff development opportunities are provided through several in-house staff troining sessions during the year and support staff in taking developmenl and training courses with exlernal bodies. Academic staff are allocoted time in their workload models to engoge in scholor1y and research activities.staff are allocated time in their workload models to enguge in scholady and reseorch activities. Engagement wlth sludenls Our students are a valued part of our community, and we are committed to ensuring they have the best leaming experience possible while studying with us. Studenls are supported in their academic work through several methods and provided access to variou5 serrfices, including welfare services, to assist them in their everyday issues while studying at the Institute. Their feedback at the module. course and institution-wide levels is captured through various methods, which facilitate ongoing enhancements and changes. The Students, Council coordinates and represents the students. voice at the Acodemic Board. Flnancial revlew Flnancial posltlon This financial year the organisation has recorded an 'in year, surplus in unreslricted funds ol £lCX),35712023 £71,863 delicitl and a surplus in restricted funds of £89,600 12023 - £12,000). This improvement over the last year is due to corrective action by the Trustee Board regarding credit control management and Ihe addition of new funding streams. During the year a provision of £365,734 was made in respect of courses paid in advance12023- £296,000). Reserves policy The charily hod unrestricted reserves of £121,603 and restricted reserves of £253,805 as al 31 December 2024. The charily does not hold any free reserves. The charity's reserves policy aims to accumulate free reserves equivolent to Ihree months of running costs over the next five years. The Itustees have Iwo purposes for Ihe accumulation of operating reserves.. l. To finance the developmenl of new or existing services. 2. To enable the organisation to be wound up if necessary. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document The charity is controlled by its governing document, a deed of trust, and constilules a limited company. limited by guarantee, as defined by the Companies Act 2006. The charity wos established under a Memorandum of Associalion and is governed in accordance with the object and powers set out in its governing documents, the Articles of Association and By-laws. The Board ol Trustees is responsible for approving Ihe strategy. budget, audited accounts. annual reports, academic plans, ocademic and operational quolity ond slondards, compliance to the Prevent Duty and with the Ofs's ongoing condilions ol registration, and any other relevont regulotory responsibililies. The Board meets three times yeady to consider the charity's performance and respond to emerging issues and risks Recrultment and appointmenl of new trustees The Board of Truslees is responsible for recruiting new trustees. In seeking new Irustees, the Institute identifies experienced individuals in the educalion, legal, charity. or religious education sectors and people with o tested business management or publicjcommunity services track record. Poge 3
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION REPORT OF THE TRUSTEES For The Year Ended 31 December 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational slruclure The Board approves the appointment of the Academic Board, Finance and HR Committee, and the Managemenl Board to manage the affairs of the Chority. The Board meets three times a year to consider the charity's performance and respond to emerging issues and risks. The Rector is accountable to the Board and is responsible for implementing Ihe decisions of the Boord of Trustees. Induction ond training of new trustees TTuslees are introduced to their roles upon oppointment, updaled on the Inslilute's historical developmenls and current posithon, ond introduced to the resources available on the Chority Commission's websife so that they can lamiliarise themselves with their dulles and responsibilities. Key management remuneratlon The Board of Trustees is responsible lor setting the Rectorfs remuneralion package, which 15 reviewed annually. Inlernal conlrols The Institute has developed a sound internal conlrol system thal is appropriate to its size and operations and in accordance with besl practice. This system is designed to identify the principol risks that may prevent or inhibil the achievement of the Institute's aims and objectives, evaluate the nature and extent of those risks, and manage them efficiently, effectively, and economically. The frustees ensure the mointenance of this inlernal conlrol system and keep it under review to ensure the ongoing effectiveness of these arrangements. The key intemal control arrangements to ensure compli(Jnce and risks ore idenlified and managed approprialely include the Management Board, Finance and HR Conimittee, and Academic Board - in addition to Ihe Board of Trustees. The Board of Trustees approves the appointment of these boards/committees. In addition, truslees are formal members of Ihese key committeeslboards that oversee the inslitute's managemenl. quality, ond operations. The Rector is accountable to the Board and responsible lor implementing its decisions. These arrangements help oversee all academic operations, risks, and compliance matters. They ensure the prevention and detection of risks and any comJption, fraud, bribery. ond olher irregularities. The Trustees receive reports from the meetings of all these committeeslboards. Risk management The Trustees receive reports to assist Ihem in identifying and reviewing the risks to which the charity is exposed and ensure appropriale controls are in place to provide reasonable assurance againsl froud and error. The Trustees regularly review the following principal risk areas.. Legal and linoncial risks Regulatory compliance risks Reputation risks IT security and infraslructure risks Building mointenance.. risks related to building-specilic heolth and safety risks and longer-tem buildinglestate development plans. The Student Protect Plan highlights the Institute's principal risks regarding students and miligotion measures. The Institute's principal asset is amounts receivable from student5. The amounts pregented in Ihe balance sheet are net of allowance for doubtful receivables. An allowonce for impoirment is made where an event, based on previou5 experience, is evidence of o reduction in the recoverability of cash flows. The Institute hos no significant concentration of credit risk. with exposure spreod over a large number of carefully selected students. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So lar as the Iruslees are aware, there is no relevant information las defined by Section 418 of the Companies Act 20061 ol which the charitable company's auditors ore unaware. and each Irustee has taken all the steps thot they ought to have taken as u trustee in order to make them aware of any audit information and to establish that the charilable company's auditors are aware of that information. Page 4
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION REPORT OF THE TRUSTEES For The Year Ended 31 December 2024 AUDITORS The auditors. TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of Ihe Irustees, incorporating a strategic report, approved by order of Ihe board of Irustees. os the company directors. on .....2l .ffl.ti.Y....%.Q.L5 . and signed on the board's behalf by.. Mr F S Murad- Trustee rJc'. 21J¢ I Dr Z Parvez- Accountab e Officer Poge 5
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION STATEMENT OF TRUSTEES. RESPONSIBILITIES For The Yeor Ended 31 December 2024 The trustees (who are also the directors of The Markfield Institute ol Higher Education for the purposes of company lawl are responsible for preparing the Report ol the Truslees and the financial statements in accordance with applicable law and United Kingdom Accounling Slandards (Uniled Kingdom Generally Accepted Accounting Practicel including Financial Reporting Standard 102"The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company low requires Ihe trustees lo prepare financial stalernents for each financial year which give a true and fair view of the state of affoirs of the charitable compony and of the incoming resources and application of resources, including the income and expenditure. of the charitoble company lor thot period. In preparing those financial statements. the trustees are required to select suitable accounting policies ond Ihen apply them consistenlly,. observe the methods and principles in Ihe Charity SORP; moke judgements and estimates that are reosonable ond prudent,. state whether applicable occounting standards have been followed, subject lo any material departure5 disclosed and explained in the financial stotements.. prepare the financial statements on Ihe going concem basis unless it is inappropriate to presume thal the charitable compar)y will continue in busine5S. The trustees are responsible forkeeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the finoncial slotements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable Steps for the prevention and delection of fraud and other irregularities. Poge 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE MARKFIELD INSTITUTE OF HIGHER EDUCATION Oplnlon We have audited the financial statements of The Markfield Instilute of Higher Education (the 'chaNlable company'l for the yeor ended 31 December 2024 which comprise the Statement of Finoncial Aclivities, the Balance Sheel, the Cash Flow Statement and notes to Ihe financial statements. including a summary of significant accounling policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounling Slandards (United Kingdom Generally Accepted Accounting Practice). including Financial Reporting Slandard 102'The Financial Reporting Standord applicable in the UK and Republic ol Ireland,, In our opinion the financial statemenls.. give a Irue and fair view of the state of the charitoble compony's affairs os at 31 December 2024 ond of its incoming resources ond application of resources. including its income and expendilure, for the year then ended: hove been properfy prepared in occordonce wth United Kingdom Generally Accepled Accounting Praclice, including Financial Reporting Slandord 102 'The Financial Reporting Slandard applicable in the UK and Republic of Irelond.; ond have been prepared in accordance with the requirements of Ihe Companies Act 2(X)6 comply with the requirements ol the Office for Students Accounts Direction. Basls for oplnlon We conducled our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of Ihe financial statements section of our report. We ore independent of Ihe charitable company in accordance with the ethical requirements that are relevant to our audit of the financial stutements in the UK, including the FRC'S Ethical Standard. and we hove fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtoined is sufficient and appropriote to provide a basis for our opinion. Concluslons relatlng to golng concern In ouditing the financial statements, we have concluded that the trustees, use of Ihe going concern basis of accounting in the preparation of the financial statements is appropriate. 8ased on the work we have perfomed. we have not identified any material uncertainties relating to events or conditions that, individually or colleclively, moy cast significant doubt on the charitable company's abilify to conlinue as o going concern for a period ol al leost Iwelve monlhs from when the finonciol statements are authorised for iSSLJe. Our responsibiSities and the responsibilities of the trustees wth respect to going concern are described in the relevant sections of this repotl. other Information The trustees are responsible for the other informotion. The olher information comprises the infotmation included in the Annual Report, other Ihan the financial statements and our Report of the Independenl Audilors thereon. Our opinion on the financial statemenls does not cover the other information and, except to the extent othewise explicitb/ slated in our report. we do not express any lo of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the olher infonration and. in doing so. consider whether the other information is moterially inconsistent with the financial stotements or our knowledge obtained in the audit or otherwise appears to be malerially misstaled. If we idenlify such material inconsistencies or apparent material misstatements, we ore required to determine whether this gives rise to a material misslatement in Ihe financial statements themselves. If, based on the work we have performed, we conclude Ihol there is o material misstatement of Ihis other information. we are required to report that fact. We have nolhing to report in this regard. Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE MARKFIELD INSTITUTE OF HIGHER EDUCATION Oplnlons on other matters prescrlbed by the Companle$ Act 2006 In ouropinion, bosed on the work undertaken in the course of the audit: the inforrnalion given in the Report of the Trustees for the financial year lor which Ihe finoncial statements are prepared is consistent wilh the ffnancial statements; and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred lo report by exceptlon In the light of Ihe knowledge and understanding of the charitable company and its environment obtoined in the course of the audit. we have not identified material misstotements in the Report ol the Trustees. We hove nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if. in our opinion- adequote accounting records have not been kept or retums adequate for our oudit have nol been received from branches not visited by us.. or the financial stotemenls are not in agreement with Ihe accounting records and returns.. or certain disclosures of Irustees. remunerotion specified by low are not made,. or we have not received all Ihe information and explanations we require for our audit. Responsibilltles ol trustees As explained more fully in the Stotement of Trustees, Responsibilities. the trustees (who are also the directors of the charitable company for the purposes of company lowl are responsible for the preparation of the linoncial statements and for being satisfied thal they give a true and fair view, and for such internal control as the trustees delermine is necessary to enable the preparation of financial statements Ihat are free from materiol misstatement, whelher due to fraud or error. In preparing the financial statements, the Iruslees are responsible for assessing the charitable company's ability to continue as a going concem, disclosing. as applicable, matters related to going concem and using the going concem basig of accounting unless the Irustees either intend to liquidale the charitable company or to cease operations, or have no reolistic altemalive but to do so. Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE MARKFIELD INSTITUTE OF HIGHER EDUCATION Our responslbllllles for the audlt of the flnancial stalemenls Our objectives are lo obtain reasonable ossurance about whether the financial statements as a whole are free from material misstatement, whether due to froud or error, and to issue a Reporl of the Independent Auditors that includes our opinion. Reasonable assurance is a high level ol assurance. but is not a guarantee that on audit conducted in accordance with ISAS IUKI will always delect a material misstatement when it exisls. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influence Ihe economic decisions of users token on the basis ol these financial slolements. The extent to which our procedures are capable of detecfing irregularities, including fraud is detailed below: We obtained on understanding of the legal and regulatory frameworks that ore applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements ore those that relote to the reporling framework (UK GAAP and the Companies Acl 2(L161 and Ihe relevant lax compliance regulations in the UK. We understood how the charilable company is complying wilh those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes ond discussions wilh Ihose charged with governance. We assess the susceptibility of the chorilable company's financial statemenls to materiol misslatement, including how fraud might occur, by discussion with management from vorious parts of the business to understand where they considered there was a susceptibility to fraud. We considered Ihe procedures and controls that Ihe charitable company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such os perfomance targets. Based on our understanding, we designed our oudit procedures to identify any non-compliance wth laws and regulations identified in the poragraphs above. We also perfomed audit work over the risk of management override of controls, including testing of journal entrie5 and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside Ihe normal course of business and reviewing accounling estimates for bia5. A further description of our responsibilities for the audit of the financial stalements is located on Ihe Thnancial Reporting Council's website al www.frc.org.uk/auditorsresponsibililies. This description forms port of our Reporl of the Independent Audilors. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mighl state to the choritable company s members those malters we are required to slate to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Ihe charitable company and the charitable company's members as a body, for our audit work, forthis report. or for the opinions we have formed. Dilun Mistry FCA Isenior Statutory Auditor) for and on behalf of TC Group 31 High View Close Homilton Office Pork Leicester Leiceslershire LE4 gLJ Date: ......27 May. 202.5,.. Page 9
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 December 2024 2024 Total funds 2023 Total funds Unrestricled fund Restricted fund Notes INCOME AND ENDOWMENTS FROM Donalions and legacies 55,155 i (x),(x)o 155,155 67.804 Charltable activitles Course lees 714,858 714,858 526,575 Olher trading aclivities Investmenl income 11,615 14,698 11,615 14,698 6,133 9,771 Total 796,326 i 00,(x)o 896,326 610,283 EXPENDITURE ON Charilable Activities 439,400 10,400 449.800 448.609 Charltable actlvllies Premises costs Administration costs Governance costs 73,417 170,552 12,600 73.417 170,552 12,600 75,871 135,166 10,500 Total 695,969 10,400 706,369 670,146 NET INCOME/{EXPENDITURE) 100.357 89.600 189,957 159,8631 RECONCILIATION OF FUNDS Total funds brought loward 21,246 164,205 185,451 245,314 TOTAL FUNDS CARRIED FORWARD 121,603 253,805 375,408 185,451 CONTINUING OPERATIONS All income and expenditure has arisen from continuing aclivilies. The notes form parl of these financial statements Page 10
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION (REGISTERED NUMBER: 06471324) BALANCE SHEET 31 December2024 2024 2023 Noles FIXED ASSETS Tangible assels Investment property 3.808 250,000 1,448 250,000 253,808 251,448 CURRENT ASSETS Debtors Cash at bank and in hand 15 546,202 141,054 302,770 109,062 687,256 411.832 CREDITORS Amounts falling due within one year 1565,6561 1477,8291 NET CURRENT ASSETS 121,600 65,9971 TOTAL ASSETS LESS CURRENT LIABILITIES 375,408 185,451 NET ASSETS/{LIABILITIES) 375,408 185,451 FUNDS Unrestricted funds Reslricted funds 121,603 253,805 21,246 164,205 TOTAL FUNDS 375,408 185,451 The financial slalements were approved by the Board of Trustees and authorised for issue on and were signed on ils behalf by.. ZI 2L)'L •zIA Mr F S Murad- Trustee Dr 2 Parvez- Account e Officer The notes form part of these linanciol statemenls Poge 11
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION CASH FLOW STATEMENT For The Year Ended 31 December 2024 2024 2023 Notes Cosh flows from operating actlvities Cash generated from operations 35,514 54,4491 Net cosh provided byllused inl operating activities 35,514 54,4491 Cush flows from invesllng activltles Purchase of tongible fixed assets 3,5221 Net C05h used in invesling activities Change in cash and cash equlvalents In the rèportlng peylod Cash and cash equlvalents atlhe beglnnlng of the reportlng perlod 31,992 155,2541 109,062 164.316 Cash and cash equlvalents al the end of the reportlng perlod 141,054 109,062 The notes form part of these financial stalemenls Page 12
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE CASH FLOW STATEMENT For The Year Ended 31 December 2024 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net Income/lexpendilure) for the reportlng perlod (as per the Statement of Financlal Activltles) Adjvstments for. Depreciation charges Increase in debtors Increase in creditors 189.957 159,8631 1.162 1243,4321 87.827 459 175,4551 80,410 Net cash provided by/{used In) operatlons 35.514 54.4491 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.24 Cash flow Al 31.12.24 Nel cash Cash at bank and in hand 109.062 31,992 141,054 109,062 31,992 141.054 Total 109,062 31,992 141,054 The noteg form port of these financial statements Page 13
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31 December 2024 ACCOUNTING POLICIES Bosls of preparlng the flnanclal stalements The financial slatemenls of the choritoble company, which is a public benefit entity under FRS 102. hove been prepared in accordance wilh the Charities SORP IFRS 1021 'Accounting and Reporling by Charities- Slatement of Recommended Practice applicable to charities preparing their accounls in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 lelfective l January 20191,, Financial Reporting Standard 102 'The Finuncial Reporting Standard applicable in the UK and Republic of Irelond. and the Companies Act 2006. The financial statements have been prepared under Ihe historicol cost convention. Going concern As at the point of authorising the occounts, and for Ihe foreseeable future, the trustees consider the going concern assumption to still be appropriote. The trustees acknowledge thot given the curTenlly ropidly chonging business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at Ihis lime. In addition to the above, Ihe trustees have considered the amounts due to The Islamic Foundation totalling £106,238 12023 - £83,8211. The Islamic Foundation is a registered charity with Irustees in common with The Markfield Institute of Higher Education. The Islamic Foundation has pledged support for the foreseeable future, therefore. the accounts have been prepared on a going concem basis. Income All income is recognised in the Statement of Financial Activities once the charily has entitlement to the funds, it is probable Ihat Ihe income will be received and Ihe amount can be measured reliably. Donotlons and legacles Donations are recognised when the charity has been nolilied in writing of bolh the amount and setllement date. In the event that a donation is subject to conditions Ihat require a level of perfonnance by the charity before the charity is enlilled to the funds, the income is defeed and not recognised until eilher Ihose conditions are fully met, or the fullilmenl ol those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in Ihe reporting period. Legacy gifts are recognised on a case by case basis following the grant ol probale when the administralorlexecvtor for the eslate has communicated in writing both Ihe amount and settlement date. In the evenl Ihat the gift is in the form of an asset olher than cash or a financial osset traded on a recognised stock exchange. recognition is subjecl to the value of the gift being reliably measurable wlh a degree of reasonable accuracy and the title to Ihe assel having been Iranslerred to the charity. Donated assets are Ireoled as income and capitalised at markel value at the date of the tronsfer. Expendllure Liabilities are recognised as expenditure as soon as there is o legal or conslructive obligotion committing the chority to that expendilure, it is probable that a transfer of economic benefits will be required in seltlemenl ond the amount of the obligation con be measured reliably. Expenditure is accounted for on on occruals basis and has been classified under headings that aggregate all cost related lo Ihe calegory. Where cosls cannot be direclly attributed to particulor headings they have been allocaled to activities on a basis consistent with Ihe use ol resources. Charltable activities Charitoble expenditure comprises Ihose costs incurred by the charity in the delivery of its aclivities and services for its beneficiaries. It includes bolh costs that can be allocated directly to such octivilies and those costs of an indirect nature necessary to support them. Page 14 continued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2024 ACCOUNTING POLICIES - conllnued Charltable actlvllles Support costs Support costs include central functions and have been allocated lo actimty cost calegories on a basis consistent with the use of resources. for example. allocating property costs by floor areas, or per capita, staff costs by the time spent and the other costs by their usage. GoveTnonce cosls These include the costs allributable to the chority's compliance with constitutional ond statutory requirements, including audit. strategic management and trustees's meetings and reimbursed expenses. Tanglble fixed assets Depreciation is provided at the following annual rales in order to write off each asset over ils estimated useful life. 20go on cost 20% on cost Fixtures and fittings Computer equipment Investment property Investment property is shown at most recent valuation. Any oggregale surplus or deficil arising from changes in fair value is recognised in the Statement ol Financial Activities. Taxotlon The charity is exempt from corporation tax on its charitable activities. Fund accounllng Unrestricted funds can be used in accordance with the charitable objeclives at the discrelion of the Irustees. Reslricted funds can only be used for particular reslricled purposes within the objects of the charity. Reslriclions arise when specified by the donor orwhen funds are raised for particular restricled purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial slatements. Penslon costs and other post-reliremènt benefits The charitable company operales a defined conlribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to Ihe Statement of Financial Actimlies in the period to which they relate. Debtors Debtor balances are recognised when amounts due lo the charity remain unpaid. Debtor balances are regularly reviewed and where there is reasonable doubt that o debt will be received in fLsII an appropriote proiqsion is made against that balance. Creditors Creditor balances are recognised when the chorily incurs a liabilily. Provisions are made when the charity is expected lo incur a liabilily vrfth respect to events or conditions occurring prior to the year end. Creditor balances and provisions are reviewed regulody to ensure thal they are fairfy stated or have been cleared cOectlY. Poge 15 continued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2024 DONATIONS AND LEGACIES 2024 2023 Sponsorship and scholarships Donalions 45.000 110.155 45,000 22,804 155,155 67.804 OTHER TRADING ACTIVITIES 2024 2023 other income 11.615 6.133 INVESTMENT INCOME 2024 2023 Rents received 14,698 9,771 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity Course fees Course fees 714.858 526,575 CHARITABLE ACTIVITIES Olher tradlng actlvltles 2024 2023 staff costs Sludent recruitment and referral UK border control fees Scholarships Bad debts 433,884 50 661 10,400 4,805 434,744 200 8(10 3,000 9,865 449,800 448,609 Page 16 continued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2024 CHARITABLE ACTIVITIES COSTS Support costs Isee note 81 Direct Costs Totals Premises costs Administration costs Govemance costs 73,417 167,530 73,417 170,552 12,600 3,022 12,600 240,947 15.622 256.569 SUPPORT COSTS Governance costs Administralion costs Governonce costs 3,022 12,600 15,622 NET INCOMEI(EXPENDITURE) Nel incomellexpendilurel is stated after chargingllcreditingl: 2024 2023 Auditors, remuneralion Depreciation- owned assels 12,600 1.162 10,500 459 10. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefils lor the year ended 31 December 2024 nor for the year ended 31 December 2023. Trustees, expenses There were no Irustees, expenses paid for Ihe year ended 31 December2024 nor for the ye(Jr ended 31 December 2023. Poge 17 continued,.,
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 December 2024 STAFF COSTS 2024 2023 Wages and salaries Social security cosls Other pension costs 393,718 28,139 12,027 390.769 31.421 12,554 433,884 434,744 The averoge monthly numberof employees during Ihe yeor was as follows: 2024 2023 13 Academic and administration No employees received emoluments in excess of £60,0. The total remuneralion package received in the year by the head of provider was: 2024 2023 Gross salary Pension Benefits in kind 50,(K)O 2,188 46,667 2,021 52,188 48,688 The head of providerfs bosic salary is 1.912023 - 1.71 times the median pay of staff, where the median pay is calculated on a lull time equivalent bosis for the salaries paid by the provider to its staff. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES 12. Unrestricted fund Restricted fund Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 55,804 12.000 67,804 Charitable actlvllles Course fees 526,575 526,575 other trading activities Investment income 6,133 9,771 6,133 9,771 Total 598.283 12.000 610.283 EXPENDITURE ON Charitoble Activities 448,609 448,609 Charltable actlvltles Premises costs 75.871 75.871 Poge 18 conlinued.,.
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - contlnued For The Year Ended 31 December 2024 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - contlnued Unrestricted fund Restricted fund Total funds Administration costs Governance costs 135.166 10,500 135,166 10.500 Total 670,146 670,146 NET INCOME/(EXPENDITURE) 171 ,8631 12.000 159,8631 RECONCILIATION OF FUNDS Total funds brought forward 93,109 152,205 245,314 TOTAL FUNDS CARRIED FORWARD 21.246 164.205 185,451 13. TANGIBLE FIXED ASSETS Fixture5 and liltings Computer equipment Totals COST At l Jonuary 2024 Additions 8,994 295 19,104 3,227 28,098 3,522 At 31 December 2024 9,289 22,331 31,620 DEPRECIATION Al l January 2024 Charge for year 8,567 202 18,083 960 26,650 1,162 At 31 December 2024 8,769 19,043 27.812 NET BOOK VALUE At 31 December 2024 520 3.288 3,808 Al 31 December 2023 427 1,021 1.448 Page 19 continued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - contlnued For The Year Ended 31 December 2024 14. INVESTMENT PROPERTY FAIR VALUE At l January 2024 and 31 December 2024 250,000 NET BOOK VALUE At 31 December 2024 250,000 At 31 December 2023 250,0(X) 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors other debtors Prepayments and accrued income 356,357 45,741 144,104 230,153 45,741 26,876 546,202 302,770 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade credito Social securily and other taxes Islamic Foundalion Pension creditor Accruals ond deferred income 11.267 7,488 149,158 1,718 396,025 6.691 9,119 126,451 1,710 333,858 565,656 477,829 Included in"Accruals and deferred income" is deferred course fee income of £365,73412023- £296.0001. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows-. 2024 2023 Within one year Belween one and five years In more thon five years 12.000 48.000 192,000 12,000 48,000 204,000 252.000 264.000 Page 20 continued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 Decembei 2024 18. ANALYSIS OF NET ASSETS BEfwEEN FUNDS 2024 Total funds 2023 Total funds Unrestricted fund Restricted fund Fixed assets Investments Current assets Current liobilities 3,808 250,000 433,451 565,6561 3,808 250,000 687,256 565.6561 1.448 250.000 411,832 477,8291 253.805 121,603 253,805 375,408 185.451 19. MOVEMENT IN FUNDS Net movement in funds At 31.12.24 At 1.1.24 Unrestricted funds Generol fund 21.246 100,357 121,603 Reslrlcled funds Restricted 164.205 89,600 253.805 TOTAL FUNDS 185,451 189,957 375,408 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movemenl in funds Unreslrlcled funds General fund 796,326 1695.9691 100,357 Restrlcted funds Reslricted i 00,000 110,4001 89,600 TOTAL FUNDS 896,326 706,3691 189.957 Poge 21 continued..
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - contlnued For The Year Ended 31 December 2024 19. MOVEMENT IN FUNDS - conllnued Comparatlves for movement In funds Net movement in funds At 31.12.23 At 1.1.23 Unrestrlcted funds General fund 93,109 171,8631 21,246 Restricted fvnds Restricted 152,205 12,000 164,205 TOTAL FUNDS 245,314 59,8631 185,451 Comparative net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund 598,283 1670,1461 171,8631 Restrlcted funds Restricted 12.000 12.(K)O TOTAL FUNDS 610,283 670,1461 59,8631 The specific purposes for which the funds are to be applied are os follows: The restricted funds represent donalions and amounts given to The Inslitute which have been given on Ihe basis Ihat they will be used for specific purposes such as awards, scholarships and sponsorships and for specific course development. Restricted funds include £IOO.000 which has been received in donation during the year for restoration costs towards the Campus Development Projecl. Poge 22 conlinued...
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION NOTES TO THE FINANCIAL STATEMENTS - contlnued For The Year Ended 31 December 2024 20. RELATED PARTY DISCLOSURES The Markfield Institute of Higher Educalion IMIHEI hos Truslees in common wth The Islamic Foundation IIFI. During the year, MIHE paid £36,52312023 - £38,393) to IF in respect of rent ond various other ollice expenses. Al the balance sheet date MIHE owed IF a net amount of £106,23812023- £83.5311. The Al-medina Trust- trustees in common The Al-medina Trusl made donations to MIHE during the year of £45,OCt)12023 - £45,000). The Modina Trust- IStee$ in common The Madina Trust mode donolions to MIHE during the year of £nil12023- £12,(K)01. East London Mosque Trust- trustees in common MIHE mode purchases from East London Mosque Trust during the year of £1,58412023 £nill relating to rental of classroom space. 21. FUTURE DEVELOPMENTS In Fvlay 2025 the charily received a donation in the form of a properly situated in London. This was received from another charity which is closing down. The donated properly is valued ot approximalely £1.] million and is under lecjse until 2036, generoting circa £75k in rental income each year. Page 23
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION DEfAILED STATEMENT OF FINANCIAL ACTIVITIES For The Yeor Ended 31 December 2024 2024 2023 INCOME AND ENDOWMENTS Donations and legacles Sponsorship and scholarships Donolions 45,000 110,155 45,000 22,804 155,155 67,804 Other tradlng actlvltles other income 11.615 6,133 Inveslment Income Rents received 14,698 9.771 Charltable actlvllles Course fees 714,858 526,575 Total Incomlng resources 896,326 610.283 EXPENDITURE Other Iradlng actlvllles Wages and solaries Social security costs staff pensions Sludent recruitment and referral UK border conlrol fee5 Scholarships Bad debts 393,718 28,139 12,027 50 661 10,400 4.805 390,769 31.421 12,554 200 800 3,000 9,865 449,800 448.609 Charllable activlties Rates ond water Insurance Light and heat Telephone Postage and stationery Adverlising Rent and room hire Repairs and maintenance Travelling Accommodation and subsistence Evenls and ceremonies Carried foward 9,100 2.163 28,280 1.130 1.982 3,869 13,769 3,402 6.386 5,684 3.415 9,396 2,234 29,725 {1.6821 1.245 3.814 14.485 5,045 4,225 8.272 4.321 I I 79,180 81.080 This page does not fom part ol the statutory financial statements Page 24
THE MARKFIELD INSTITUTE OF HIGHER EDUCATION DEfAILED STATEMENT OF FINANCIAL ACTIVITIES For The Year Ended 31 December 2024 2024 2023 Charitable actlvllles Brought forward Sundries Internet and IT expenses Books and subscriptions Equipment hire Cleaning Bank chorges Validation and accreditalion fees Legal and professionol Fixtures and fittings depreciation Computer equipment depreciation 79.180 66 52,618 1.821 1.846 12,834 1,654 86,237 3,529 202 960 81.080 46.506 1.584 1.346 1,710 61,789 2,925 143 316 240,947 208,576 Support cosls Governance costs Auditors, remuneration Financial operations management 12,600 3,022 10.500 2.461 15.622 12,961 Total resources expended 706,369 670,146 Net Income/(expendllure) 189,957 59,8631 This page does not form port of the statutory financial stalements Page 25