2021-03-31-accounts - Al -Isharah

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REGISTERED COMPANY NUMBER: 06542197 (England and Wales) REGISTERED CHARITY NUMBER: 1126533

AL-ISHARAH

Report and Financial Statements For the Year ended 31 March 2021

AL-ISHARAH

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2021

Contents	Page
Legal and Administrative Information	2
Report of the Trustees	3-7
Independent Examiner's report	8
Statement of Financial Activities	9
Balance sheet	10
Notes forming part of the Financial statements	11-13

AL-ISHARAH

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2021

LEGAL AND ADMINISTRATIVE INFORMATION

Officers and Professional advisers

TREASURER

A Ismail

TRUSTEES

Mr A Ismail Mr M Ahmed Mrs Z Kalim Mrs J B Hussain Mr M R Chowdhury Mr I Cader

REGISTERED OFFICE

4th Floor 46 White Chapel Road London E1 1JX

BANKERS

HSBC

EXAMINER

AACSL ACCOUNTANTS LIMITED 1[ST] Floor North Westgate House The High - Harlow Essex CM20 1YS

CHARITY NUMBER 1126533

AL-ISHARAH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 March 2021

The Trustees, for the purposes of the Charities Act 2011, submit their annual report and financial statements for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in March 2005 in preparing the annual report and financial statements of the Charity. The Charity is governed by a Memorandum and Articles of Association.

PRINCIPAL ACTIVITIES, AIMS AND ORGANISATION OF THE CHARITY

The primary objectives and aims of the charity are to help relieve need amongst, and advance the education of, deaf people by providing or assisting in the provision of training to enable such deaf people to acquire the skills to assist them to obtain employment or otherwise become self-supporting.

The charity also aims to advance the education of the public concerning the special needs of deaf people particularly, but not exclusively, by undertaking research into such need and publishing the useful results thereof more specifically, the aims and objectives of the charity are

THE MAIN ACHIEVEMENTS OF THE ORGANISATION DURING THE PERIOD WERE:

To make Islamic education accessible and possible for the deaf community.
To make previously inaccessible Islamic texts (Quran and Hadiths) catered to the language structures used by the deaf community, teaching basic life skills through the use of Islamic topics to encourage self-esteem and confidence.
To actively raise deaf awareness amongst families and the wider community.
To develop deaf friendly Islamic resources for the deaf community.
To provide British Sign Language classes to families whose first language is not English
To translate Friday Prayer services into British Sign Language.
To research and understand more about the needs of the deaf Muslim community.

AL-ISHARAH REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 March 2021

PLANS FOR THE FUTURE

The Charity will continue to consolidate its programmes and seek their sustainability through individual users

We plan to effectively develop the programmes as contained in our objective.
Continue to provide effective human resource development of the deaf through training and skill development.
Ensure that the charity continue to make quality Islamic education accessible to the deaf and disable person in general.
To provide effective training to the deaf for their future career.

INCOME GENERATION

The Charity has generated £558,703 (2020: £205,249) during the year ended March 2021. This includes both direct transfers into charity’s account and cash donations.

RISKS

The factors that may affect the Charity’s delivery of its objectives include:

a) Reputation of Charity and the relationship with the community and beneficiaries.

Al-Isharah produces an annual plan for delivery against its objectives. This plan sets out the targets for the year and is then broken down to a work plan. Al-Isharah has developed a strategy, which specifies how it will deliver the key programmes of work. The strategy also identifies targets and performance indicators.

RESERVES POLICY

The Charity aims to build reserve which will enable it to meet its average annual operational need. The Trustees review the reserves held by the Charity on a regular basis to ensure that an appropriate level of funds is held to meet the above policy of the Charity going forward. The charity’s funds include restricted and unrestricted funds.

The Trustees have continuously built unrestricted reserves from the direct debit contributions. This started after due consultation with the funders, in order to meet the operational objective of the charity.

AL-ISHARAH

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 March 2021

GOVERNANCE AND INTERNAL CONTROL

A Board of Trustees governs the Charity. New Trustees are selected by the Board of Trustees and are subject to re-election every five years. At 31 March 2021, the Board had a membership of six people.

The Board meets four times a year to agree key policy decisions, set the strategy for the charity and oversee its performance. At present the Board has committee members who are responsible for the day-to-day activities of the charity. None of the committee members is being remunerated.

All Trustees receive the handbook for Trustees provided through the Charity Commission. Each Trustee will have an induction programme by other Trustees and receive an information pack on the Charity and its finances. Beyond this the Charity follows the code of practice for governance produced by the Governance Hub.

Company law requires the Trustees to prepare financial statements for each financial year, which comply with the Charities Act 2011 as amended

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss.

They include:

A strategic plan and annual budget approved by the Trustees;
Regular consideration by the Trustees of financial results, in particular variance from budget; and
Delegation of authority and segregation of duties.

STATEMENT OF TRUSTEES RESPONSIBILITIES IN RESPECT OF THE TRUSTEES' ANNUAL REPORT AND THE FINANCIAL STATEMENTS

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the excess of income over expenditure for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material 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 its activities.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Charities Act 1993 as amended. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

AL-ISHARAH

REPORT OF THE TRUSTEES (continued)

YEAR ENDED 31 March 2021

DISCLOSURE OF INFORMATION TO EXAMINER

The trustees who held office at the date of approval of this trustees’ report confirm that, so far as they are each aware, there is no relevant information of which the Charity’s examiner is unaware; and each trustee has taken all the steps that he/she ought to have taken as a trustee to make himself/ herself aware of any relevant information and to establish that the Charity’s examiner is aware of that information.

EXAMINER

In line with the provision exemption in the Charities Act 2011 as amended, the trust decided to appoint an examiner, which will review the accounts for the year ended 31 March 2021. In accordance with this appointment, AACSL ACCOUNTANTS LIMITED was appointed as examiner.

Approved by the Board of Trustees and signed on behalf of the Board by:

A Ismail

Trustee

11/05/2021

Independent Examiner’s Report to the Trustees of Al-Isharah

I report on the accounts of the Trust for the year ended 31 March 2021, which are set out on pages 9 to 13.

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year (under section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an independent examination is needed.

It is my responsibility to:

examine the accounts (under section 43(3)(a) of the 1993 Act);
to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 43(7)(b) of the 1993 Act); and
To 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 Commissioners. 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 you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

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 41 of the 1993 Act; and
To prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act as amended.

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.

AACSL ACCOUNTANTS LIMITED

1[st] Floor North Westgate House The High Harlow Essex CM20 1YS

11/05/2021

AL-ISHARAH

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 March 2021

AL-ISHARAH

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account)

YEAR ENDED 31 MARCH 2021

Un-restricted funds 2021 Notes £ INCOMING RESOURCES Donations, Legacies and similar incoming resources 124,623 TOTAL INCOMING RESOURCES 2 124,623 RESOURCES EXPENDED Cost of generating funds: Cost of generating voluntary Income - Charitable Activities: Community Projects /Other Resources Expended 103,377 Governance and Accountant Cost 1,148 TOTAL RESOURCES EXPENDED 3 104,525 Net income/(expenditure) 20,098 Funds brought forward (17,138) Net movement in funds and funds balance carried forward as at 31 March 2021 2,960	Restricted Funds 2021 £ 434,081 434,081 - 154,048 - 154,048 280,033 34,208 314,241	Total Funds 2021 £ 558,704 558,704 - 257,425 1,148 258,573 300,131 17,070 317,201	Total Funds 2020 £ 205,250
			205,250
			- 207,925 733
			208,658
			(3,408) 20,478
			17,070

AL-ISHARAH BALANCE SHEET AS AT 31 MARCH 2021

AL-ISHARAH BALANCE SHEET AS AT 31 MARCH 2021
	2021	2020
	Total	Total
	£	£
FIXED ASSETS
Tangible Fixed Assets	621	621
Accumulated depreciation		-
TOTAL FIXED ASSETS	621	621
CURRENT ASSETS
Debtors and Prepayments	-	-
Cash at bank and in hand	347,418	37,616
	347,418	37,616
CREDITORS: amount falling due within one year	30,837	21,166
	-	-
CREDITORS: amount falling due after one year	-	-
Net Current assets/(Liabilities)	316,581	16,450

TOTAL ASSETS LESS CURRENT LIABILITIES	317,201	17,070
FINANCED BY:
Unrestricted funds	314,241	(17,138)
Restricted Funds	2,960	34,208
TOTAL FUNDS	317,201	17,070

For the year ending 31 March 2021, the Charity was entitled to exemption from audit under section 477(2) of the Companies Act

The members have not required the company to obtain an audit in accordance with section 476 of the Charities Act 2011.

The trustees acknowledge their responsibility for complying with the requirement of the Charities Act 2011 with respect to

Accounting records and the preparation of accounts.

The Accounts was approved by the Board of Trustees and signed on behalf of the Board by:

A Ismail

Trustee

11/05/2021

AL-ISHARAH NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 March 2021

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements are prepared on the going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charitable company and rounded to the nearest £.

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

These financial statements for the year ended 31 March 2021 are the first financial statements of the charitable company prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1April 2017. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

Going concern

The trustees have assessed the charity’s ability to continue as a going concern and there are no material uncertainties.

Fund accounting

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in Note 2.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The grant income where related to performance and specific deliverables are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance, its recognition is deferred and included in creditors. Where entitlement occurs before income being received, the income is accrued.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Premise’s overheads have been allocated on a floor basis and other overheads have been allocated on the basis of the head count.

Community project costs are those costs incurred directly in support of the objects of the Charity. The community project cost includes other support costs incurred in support of the objects of the Charity. Governance costs are those incurred in connection with governance arrangement of the Charity, which relate to the general running of the Charity and compliance with constitutional and statutory requirements. The basis of allocation for support costs and governance costs has been explained in Note 3.

Governance costs

This is costs incurred in connection with the governance arrangement of the charity, which relate to the general running of the Charity and compliance with constitutional and statutory requirements. The basis of allocation for support costs and governance costs has been explained in the notes

AL-ISHARAH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Note 2. TOTAL INCOMING RESOURCES

Voluntary Income Un-restricted: Other income Restricted: Standing Order and Direct Collections Note 3. TOTAL RESOURCES EXPENDED Cost of generating funds Charitable Costs Governance Costs	2021 124,623 434,081	2020 £ 49,365 155,884 205,249 Support 2021 2020 Costs Total Total £ £ £ - 733 - 258,573 258,573 208,658 - 1,148 733
	558,704
	Direct Costs £ - -
	-	258,573 259,722 208,658

The trust allocates all costs as shown in the table above. Costs are allocated between direct costs and support costs based on the actual expenditure and nature of transactions.

Note 4. TRUSTEES REMUNERATION

The Trustees did not receive any emoluments and no out of pocket expenses were paid during the year (2020: £nil)

Note 5. FIXED ASSETS Equipment £ Cost Total Costs - Balance brought forward - Charge for the year - Balance carried forward - The Charity continues to use component accounting in acordance with Charities: Statement of Recommended Practice on tangible assets Note 6. CREDITORS: amount falling due within one year 2021 This is made up as follows: £ Accruals 1,800 Historical Adjustment NIC Payable 16,006 PAYE Payable 10,490 Pension 1,152 Wages Payable 2,404 - Wages Payable - Payroll 3,793 30,837 Note 7. Total Funds 2021 £ Reserve brought Forward 17,070 Surplus/(Defict) for the year 300,131 317,201	Equipment £	2020 £ 29,836	13 2019 £ 29,836 29,836 29,836 29,836 - 0 - and Accounting and Reporting b
	-	29,836
	- -	29,836 29,836 -
	-	0 -
		provision of FRS15 2020 £ 1,800 - 11,275 5,612 736 2,404 - 4,148
	30,837	21,166
	2021 £ 17,070 300,131	2020 £ 20,478 (3,408)
	317,201	17,070

The Charity continues to use component accounting in acordance with provision of FRS15 and Accounting and Reporting by Charities: Statement of Recommended Practice on tangible assets

Note 8 - RELATED PARTY TRANSACTIONS

Trustees’ Emoluments

During the financial year no salaries or wages have been paid to trustees’ including the members of the committee. The trustees did not receive any remuneration for their services (2021: £Nil). However, a Trustee’s wife and son received (£5,185 and £71.25 respectively) as payment for teaching services provided to the deaf children catered by the Charity. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity. There were no transactions with related parties during the year (2021 - nil).

Note 9 - Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.