Charity Registration number 1125900
## The Sunnah Foundation
Annual Report and Financial Statements
for the Year Ended 31 March 2021
## **The Sunnah Foundation**
## **Contents of Annual Report and Finanical Statements**
||**Page(s)**|
|---|---|
|Reference and Adminisrative Details|1|
|Trustees' Report|2 to 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Balance Sheet|7|
|Notes to the financial statements|8 to 10|
## **The Sunnah Foundation**
## **Reference and Administrative Details**
Charity name The Sunnah Foundation Charity registration number 1125900 Correspondence address 19/21 Hatchett Street Hockley Birmingham B19 3NX Trustees T Hussain G Nawaz M Asghar Bankers TSB Bank 538 Stratford Road Sparkhill Birmingham B11 4BD Independent Examiner Parkar Accountants 19/21 Hatchett Street Hockley Birmingham B19 3NX
1
## **The Sunnah Foundation**
## **Trustees' Report**
The Trustees present their annual report together with the unaudited financial statements of The Sunnah Foundation (the charity for the year ended 31 March 2021). The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005.
## **Structure, Governance and Management**
## Governing document
The Sunnah Foundation ("the charity") is a Charitable Trust that was formed at a meeting of the Trustees in January 2005. The charity is governed by its Trust Deed dated 2nd August 2008 and was registered with the Charity commission on 16th September 2008.
## Method of appointment and induction of new Trustees
New Trustees are appointed at the Annual General Meeting and are briefed on their legal obligations under charity law, the content of the charity's constitution, and its recent performance.
## Organisational structure and decision making
The board of Turstees oversee the running of the charity on a day to day basis. All operational decisions are made at board meetings which are held frequently throughout the year.
## Risk management
The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **Objectives and Activities**
## Summary of objectives
To advance the Islamic faith for the public benefit as the Trustees may think fit.
To relive sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support.
To advance education for the public benefit
To engage in general charitable activities
2
## **The Sunnah Foundation**
## **Trustees' Report**
## Activities for achieving objectives
- 1 This year due to COVID 19 pandemic all activities were cancelled, including the closure of our centre in East Birmingham.
- 2 However partial building works continued at the new building that the charity acquired in July 2016 and in January 2018 the charity was successful in gaining planning permission to change the use from Social Club (use Class D2) to Mixed Community Centre (use Class Dl ) and Place of Worship (use Class D1) with alterations to front elevation and roof.
- 3 Phase one of the building works was completed in 2019 and Phase two of the building works was completed in this year, which included:
1. Ground floor rear hall expansion and various works to make the main hall fit for purpose
2. Electrical upgrade
3. Alarm
4. CCTV
5. Data cables
6. Fire alarm
7. Sound system
8. Installation of gas central heating and associated plumbing works
9. Installation of Audio and Speaker System
10. Painting, Decorating etc
## Public benefit
The Trustees frequently review the objectives and activities of the charity to ensure that they provide an overall benefit to the public. In carrying out this review the Trustees have considered the Charity Commission's general guidance on public benefit.
3
## **The Sunnah Foundation**
## **Trustees' Report**
## **Financial Review**
## Reserves policy
The charity's reserve policy is to build a sufficient level of reserves to enable the trustees to enable the charity to continue its operations.
## Principle funding
During the year the year the charity raised a total of £99,055 in voluntary donations before charitable expenditure. The Trustee's would like to thank all the donors for there generous support.
## **Plans for the Future**
The charity's plans for the future are to continue raising funds to support it's aims and objectives.
## **Statement of Trustees' Responsibilities**
Charity law requires the trustees to prepare financial statements for each financial year which show a true and fair view of the state of affairs of the charity and its financial activities for that period. In preparing those financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently;
make judgesments and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operational existance.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the charities Act 2011. They are also responsible for safeguarding the assets if the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on 7 January 2022 and signed on their behalf by:
T Hussain Trustee
M Asghar Trustee
4
## **Independent Examiner's Report to the Trustees of**
## **The Sunnah Foundation**
I report on the accounts of the Trust for the year ended 31 March 2021, which are set out on pages 6 to 10.
## **Respective responsibilities of trustees and examiner**
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 and that an independent examination is needed.
It is my responsibility to:
- 1) examine the accounts under section 145 of the Charities Act,
- 2) follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and
- 3) state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a true and fair view' and the report is limited to those matters set out in the statements below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- 1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act,
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or
- 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Parkar Accountants 19-21 Hatchett Street 7 January 2022 Birmingham, B19 3NX
> 7 January 2022
5
## **The Sunnah Foundation**
## **Statement of Financial Activities for the Year Ended 31 March 2021**
|**Note**
**Incoming resources**
Incoming resources from generated funds
Donations
Covid funding via Birmingham City Council
Covid funding via Job Retention Scheme
Total incoming resources
**Resources expended**
Governance costs
2
Ramadan expenditure
General expenditure
Post and stationery
Heat and light
Rates and water
Wages and salary
Insurance
Repairs & renewals
Total resources expended
Net movement of funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Unrestricted**
**Funds**
**£**
99,055
20,000
12,870
111,925
972
5,782
328
1,049
1,467
6,887
14,243
1,853
0
32,582
79,343
744,786
824,129|**Total Funds**
**2021**
**£**
99,055
20,000
12,870
131,925
972
5,782
328
1,049
1,467
6,887
14,243
1,853
0
32,582
99,343
744,786
844,129|**Total Funds**
**2020**
**£**
145,821
0
0|
|---|---|---|---|
||||145,821|
||||878
4,273
468
376
2,534
6,636
19,789
2,468
298|
||||37,720|
||||108,101
636,685|
||||744,786|
All incoming resources and resources expended derive from continuing activities.
The charity has recognised no gains or losses for the year other than the results above.
The notes on pages 8 and 10 form an integral part of these financial statements
6
## **The Sunnah Foundation**
## **Balance Sheet as at 31 March 2021**
|**Note**
**Tangible Fixed Assets**
Leasehold property
4
**Current Assets**
Debtors (Covid : job retention scheme)
Cash at bank
**Creditors: Amounts falling**
**due within one year**
5
**Net Current Assets**
**Net Assets**
**The funds of the charity:**
**Unrestricted Funds**
Unrestricted income funds
**Total Charity Funds**|**2021**
**£**
550,569
640
293,618
294,258
698|**2021**
**£**
550,569
293,561
844,129
824,129
844,129|**2020**
**2020**
**£**
**£**
520,596
520,596
0
224,952
224,952
762
224,190
744,786
744,786
744,786|**2020**
**2020**
**£**
**£**
520,596
520,596
0
224,952
224,952
762
224,190
744,786
744,786
744,786|
|---|---|---|---|---|
|||||744,786|
|||||744,786|
|||||744,786|
Approved by the Board on 7 January 2022 and signed on its behalf by:
T Hussain Trustee
M Asghar Trustee
7
## **The Sunnah Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1) Accounting policies**
## **Basis of preparation**
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities (SORP 2005)' issued in March 2005, applicable accounting standards and the charitites Act 2011.
## **Change of accounting basis**
As a result of adopting the accruels accounting basis during the year, the comparitive figures for the prior period have been restated.
## **Fund accountancy policy**
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
## **Incoming resources**
Donations are recognised where there is entitelement, certainty of receipt and the amount can be measured with sufficient reliability.
## **Resources expended**
Liabilities are recognised as soon as ther is a legal or contructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified uncer headings that aggregate all costs related to the category.
Costs of generating funds are the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those cost of an indirect nature necessary to support them.
## **Governance costs**
Governance costs include costs of the preapration and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advise to trustees on governance or constitutional matters,
## **Support costs**
Support costs include cental functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property cost by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
8
## **The Sunnah Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
…………..continued
## **2) Governance costs**
|**Governance costs**||||
|---|---|---|---|
|Accountancy cost
DBS/DBA cost|**Unrestriced**
**Funds**
**£**
804
168
972|**Total Funds**
**2021**
**£**
804
168
972|**Total Funds**
**2020**
**£**
720
158|
||||878|
## **3) Trustees' remuneration and expenses**
No trustees received any remuneration during the year.
## **4) Leasehold property**
|Cost - bought forward
Leasehold property
Legal fee's - planning & building application etc
Enhancement
Net book value as at 31 March 2021|**2021**
**£**
520,596
0
540
29,433
550,569|**2020**
**£**
477,906
25,000
0
17,690|
|---|---|---|
|||520,596|
## **5) Creditors: amounts falling due within one year**
|Social security and other tax
Accruals and deferred income|**2021**
**£**
-106
804
698|**2020**
**£**
42
720|
|---|---|---|
|||762|
## **6) Related parties**
Controlling entity
The charity is controlled by the trustees.
9
## **The Sunnah Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
…………..continued
|**8) **|**Analysis of funds**||||||
|---|---|---|---|---|---|---|
|||**At**|**1 April**|**Incoming**|**Resources**|**At 31 March**|
||||**2020**|**resources**|**expended**|**2021**|
|||**£**||**£**|**£**|**£**|
||**General Funds**||||||
||Unrestricted income||||||
||fund||744,786|131,925|32,582|844,129|
10