COMPANY REGISTRATION NUMBER: 06842695 CHARITY REGISTRATION NUMBER: 1129501
The Zahra Trust
Trustees’ Report and Financial Statements For the year ended 31 March 2022
The Zahra Trust Contents Year ended 31 March 2022
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1-8 |
| Independent auditor's report to the members | 9-11 |
| Statement of financial activities (including income and | |
| expenditure account) | 12 |
| Balance Sheet | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15-24 |
The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) Year ended 31 March 2022
The trustees, who are also directors of the charity for the purposes of company law, present their report and financial statements of the charity for the period from 1 April 2020 to 31 March 2022. The financial statements have been prepared in accordance with the Companies Act 2006, Charities Act 2011, the governing documents and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
Reference and administrative details
| Registered charity name | The Zahra Trust |
|---|---|
| Charity registration number | 1129501 |
| Company registration number | 06842695 |
| Principal office and registered | 131 Walm Lane |
| office | London |
| NW2 3AU | |
| The trustees | |
| Dr A Massoumian | |
| Sayyada Mohamedraza Hamir | |
| Faisal Alireza Hasham | |
| Auditor | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London | |
| EC4R 1AG | |
| Bankers | Barclays Bank Plc |
| Leicester | |
| Leicestershire | |
| LE87 2BB | |
| Solicitors | Stone King LLP |
| Boundary House | |
| 91 Charterhouse Street | |
| London | |
| EC1M 6HR |
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
Structure, governance and management
The Zahra Trust
The Zahra Trust (‘the Charity’) is a faith-based international relief and development agency. The Charity has been working for over a decade to help improve the lives of people in some of the world's poorest countries. The vision of the Charity is a world without poverty.
Governing document
The Charity is registered with the Charity Commission for England and Wales under charity registration number 1129501.The Trust is also a limited company, limited by guarantee, as defined by the Companies Act 2006 and therefore is controlled by its Articles and Memorandum of Association, the latter having been amended in March 2020.
Recruitment and appointment of new trustees
Trustees are recruited on the basis of their suitability to run the Charity in an effective manner. In light of such, the experience, qualifications and skills of any incoming Trustees are considered as well as any previous community or charity experience. Trustees are appointed by resolution of the existing trustees. When a new trustee is so appointed, a memorandum of his or her appointment is prepared and filed in accordance with the requisite procedures.
Induction and training of new trustees
Following appointment, new trustees are introduced to their new role and given copies of the Memorandum of Association and the policies and regulations adopted by the Charity. New trustees are provided the opportunity of working with existing trustees to benefit from their experience. Charity Commission guidance is also provided to trustees as well as internal and external training to assist them in their role.
Organisational structure
General control and management of the Charity is the responsibility of the charity trustees. The trustees represent the key management personnel and receive no remuneration or other financial benefits. The trustees meet and speak together as a body and are responsible for all decisions taken in relation to the affairs of The Zahra Trust.
Fundraising
The Charity adheres to all relevant statutory regulations including the Data Protection Act 2018, and the Charities Act 2011. The charity is registered with the Fundraising Regulator and strives for best practice in fundraising.
The fundraising undertaken by the Charity utilizes a few different approaches, which include the following:
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Major Donor giving
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Corporate giving
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Direct Mail
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Appeals/campaigns
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• Online Fundraising
The generosity of our donors has helped the Charity’s achieve successful campaigns during the year meaning that the Charity has been able to reach a greater number of beneficiaries.
Complaints handling
Any complaints received are dealt with in line with the Charity’s Complaint Policy and where required would be reported to the Fundraising Regulator. The Charity is humbled to confirm that no complaints were raised this year or last year.
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
Risk Management and Review
The Trustees ensure that controls and policies are in place to control any risks faced by the Charity in all areas of its work are addressed and managed to ensure that the objectives of the Charity are met whilst ensuring that the funds and assets of the Charity are safeguarded. The Trustees have addressed and managed the risk areas as set out by the Charity Commission in their risk management guidance being governance, financial, environmental, operational and compliance as well as observing national and international legislation in respect of overseas work including Charity Commission and HMRC guidance.
The Charity has in place a central risk register which it updates regularly to ensure that any procedures or policies which require adjustment are so reviewed to ensure they remain suitable and robust in their application especially with regards to the Charity’s international work and where any new risks are identified, the existing policies and procedures are amended to manage the identified risks. As this is an ongoing review procedure, the Trustees are satisfied that any risks are identified and managed in a timely and effective manner.
The key risks and mitigating measures identified by the trustees including the following:
Due Diligence
The Charity often operates in difficult environments which could potentially expose the Charity to risk in relation to potential partnerships and funding. In order to mitigate potential risks, the Charity has further reviewed and updated its Due Diligence policy. This continues to ensure that the identity of the proposed partner is verified and assessed prior to establishing any formal partnership relationship. The Due Diligence process includes the completion of due diligence forms and identity documents as well as a detailed appraisal using the relative sources and searches online. In the cases where issues are found, the Charity undertakes comprehensive assessments to evaluate the level and scale of risk involved, prior to making any decisions. The Charity endeavours to carry out regular checks on all active partners who receive funding from the Charity.
Conflict of Interest
The Charity has internal policies and procedures in place to ensure that conflicts are noted and if needed mitigated or other action taken where appropriate. These policies extend to all partners in the Charity’s areas of operation.
Property
Any property of the Charity will be subject to regular inspection including maintenance and repair where necessary and review of security documentation. The repayment of the mortgage is also kept under regular review by the trustees.
Fundraising
The Charity is reliant on and extremely grateful for the generosity of its donors to meet its objectives. As a result of hard work and the generosity of individuals, the Charity has seen its donor base and income grow steadily. However, uncertainty in relation to income is always a factor to consider especially in this climate. The Charity has invested in a comprehensive fundraising strategy and appears to be reaping a successful result with this strategy.
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
Objectives and activities
Objectives and aims
For the benefit of the public generally and to advance the Islamic religion worldwide, the Charity's main objectives are as follows:
The objects of the charity are, for the public benefit, (a) the advancement of the faith and religious practices of Islam and (b) the relief of poverty, in particular but not exclusively among those affected by natural disasters or by war and other conflict, including but not limited by:
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(i) the provision and maintenance of mosques and religious centres;
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(ii) the teaching and educating of members of the Islamic community;
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(iii) the provision of medical and financial assistance; and
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(iv) the promotion of interreligious harmony through dialogue with other faiths and traditions.
Significant activities
The charity carried out wide range of activities in order to pursue its charitable aims and objectives. The trustees consider that these activities as summarised below, provided benefit to the general public in the local community and worldwide. The Charity offered a range of services including:
a) General counselling
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b) Marriage counselling
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c) Educational advancement
d) The prevention of relief of poverty
e) Overseas aid/emergency relief
f) Religious activities
g) Economic/community development
The above services are provided by means of:
a) Making grants to individuals and organisations
b) Providing other finance to individuals and organisations
c) Providing human resources
e) Providing advocacy/advice/information
- f) Other charitable activities
Grantmaking
The Charity administers collection and distribution of various religious dues like Khums, Zakat, Sadaqat in accordance with the teachings of Islamic faith. The Charity also collects general donations and are distributed by way of providing grants to individuals and institutions pursuant to the Charity's objectives to provide education and training, relief of poverty and various religious activities.
Volunteers
We encourage all members of our charity to be involved in voluntary activities and to share their skills with others. Volunteers play an extremely important role in the operations of the Charity for which the Charity is extremely grateful for. The volunteers provide us with their time, know-how and assist the Charity in its fundraising activities. Volunteers are not paid, however, reasonable out of pocket expenses such as travel costs are reimbursed. The Charity has policies and procedures in place for volunteers both in the UK and overseas which are regularly reviewed and includes recruitment, vetting and management of volunteers.
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
Achievements and performance
How our activities deliver public benefit
The Trustees ensure that the activities carried out by the Charity in pursuance of the charitable aims and objectives deliver public benefit. The Trustees consider that these activities, summarised below, provide benefit to the wider community and are included within the purposes defined by the Charities Act 2011. The trustees confirm that they have considered and have complied with the Charity Commission guidance in respect of Public benefit in its activities as well as the supplementary public benefit guidance on the advancement of health or the saving of lives pursuant to section 17(5) of the Charities Act 2011.
Food Aid
It is a sad fact that many individuals do not have access to nutritious and healthy food. The Charity, from the assistance of our generous donors, continues to distribute a range of staple food items in the form of food baskets or food parcels throughout the year, including Ramadhan, the Islamic month where the majority of healthy Muslims are fasting. These parcels or baskets include staple items such as rice, lentils, dates, tea, oil, flour and sugar. The Charity does try and ensure that the food parcels will last a family up to one month.
In addition to the food parcels, hot meals are also distributed to families and individuals during Ramadhan and other special occasions providing hot nutritious meals to families who often do not have the means to eat meals which include meat dishes. The Charity provided Qurbanis (Nutritious meat) to the poor and vulnerable in Iraq, Pakistan, Yemen and Afghanistan on the religious occasion of Eid to families who have little or no resources to purchase meat.
The Charity provided thousands of meals to those affected by subsequent waves of the coronavirus pandemic affecting countries including India where many families were affected by extreme food poverty as many of the breadwinners had unfortunately passed away or severely ill and thus leaving families with no access to food. Over the last year, the Charity provided food aid to individuals and families in India, Pakistan, Tanzania, Yemen, Iraq, Afghanistan and Lebanon.
Religious dues
The Charity is authorised to receive religious dues by certain eminent scholars. It is part of the Islamic faith that individuals pay religious dues such as Zakat, Khums, and Sadaqa. The Charity receives dues from donors and distributes these dues to the religious institution authorised to collect such for charity to the needy and impoverished as well as to further the teachings of Islam, all being objects of the Charity.
Assisting the vulnerable and needy
The Charity has been responding to emergency crises over the last year, assisting the vulnerable and needy with not only basic necessities but long-term development. Over the last year, the Charity has assisted with food, medical aid, sanitation kits (including Covid19 aid) and shelter to communities in the regions of operation of the Charity. This includes housing projects specifically built for those who have lost their homes due to atrocities. The Charity also provided emergency aid to those affected by the pandemic and other disasters such as the Beirut explosion.
COVID-19 Aid
Since the beginning of the spread of COVID-19, the Charity has been active in the provision of aid and assistance and our generous donors have helped us to continue in our aid work in this respect. Covid 19 packs were distributed to the beneficiaries which included soap, hand sanitiser, face masks and tissues. The Charity’s volunteers also assisted in raising awareness to the beneficiaries of minimising the risk of the spread of Covid 19 through educational leaflets and advice.
Projects for Widows
The Charity continues its microfinance projects for vulnerable women to empower these women to attain independence and social standing in society. The Zahra Trust also runs an ongoing training program for illiterate widows in Iraq, teaching them to read and write as well as training them with marketable
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
skills, such as tailoring, product assembly and handicraft production. With these marketable skills, the widows are empowered to earn a sustainable, independent livelihood and provide for themselves and their families.
Projects for Orphans
The Charity provides the essentials including food, shelter and clothing to orphans in many regions including, Iraq, Pakistan, Afghanistan and Africa. Providing vital support to orphans is an act of charity and provides a source of physical and emotional relief to orphans who feel forgotten or alone. In addition to financial aid, the Charity endeavours to provide toys and days out for the orphans as well as community initiatives to provide a multifaceted holistic approach in relation to the benefits achieved in the assistance provided.
Child educational and development programs
Education is a key component of development and the Charity feels it is vital to support children who have little or no access to education. The Charity undertakes educational and recreational activities for orphans and under privileged children providing them with an opportunity to interact with other children and provide them with social skills as well as a wider support network. The Zahra Trust has also teamed up with Dar Al Zahra in Iraq to provide educational and holistic support to over 1000 orphans and vulnerable children in the holy city of Najaf.
Water Aid Projects
The Charity continues to receive donations from generous individuals to help in the provision of safe and clean drinking water to those who do not have ready access to such. In Yemen, we assisted in the installation of five water filtration plants and thus providing access to fresh safe drinking water to thousands of people in need.
The Charity also facilitated the provision of water wells in more remote villages in Pakistan thus providing the public with local access to drinking water and thereby assisting the communities in the vicinities of these wells. With the generosity of our donors, over 100 wells were installed during the year.
Medical Assistance
The Charity continues its work in providing medical support to those in need including orphans and widows. Free medical clinics were set up to provide individuals with medical assistance which they would not otherwise be able to afford.
Unfortunately, the requirement for medical aid was more acute as a direct result of the coronavirus pandemic. In India, as a result of a new wave of the pandemic affecting its population, The Zahra Trust assisted by procuring, transporting and distributing oxygen tanks, oxygen concentrators, oximeters and covid kits to patients and individuals.
The medical care provided included the provision of 158 free cataract surgery to those requiring identified as requiring the urgent procedure in Yemen which saved the sight of these individuals in the affected eye and in some cases from blindness.
A free eye clinic was also set up in Iraq to provide assistance to 258 individuals requiring medical assistance.
Winter Aid
The winter months are bitter and harsh and exacerbate poverty and its effects. For those who already struggle with access to basic necessities, not knowing where their next meal or source of clean water will come from having adequate shelter and heat sources to protect their families from the elements is sometimes impossible. During the winter months, the Charity provides over 2000 families with winter supplies including heaters, coal and wood as forms of heating and blankets.
Financial review
The charity's main sources of income are from collection of donations and religious dues from the general public. The Charity does not currently hold any investments with a view to deriving income
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
therefrom. Total funds generated by the charity, excluding investment and interest income, during the year amounted to £3,659,363 (2021: 4,003,473), mainly through collection of donations for various charitable purposes and gift aid repayments received from HMRC.
Total resources expended during the year is £2,649,018 (2021: £2,443,574). This includes £2,194,116 (2021: £2,041,248 ) expended for grant payables and other charitable activities.
Total funds carried forward at the end of the year was £3,757,694 (2021: £2,746,003). £2,040,815 of the current year fund balance represents unrestricted fund, and £1,716,879 represents restricted fund balance.
Reserves policy
Unrestricted funds reserve are maintained to cover general charity running costs and against future uncertainties.
In setting up the Charity reserve policy, the trustees have identified various restricted funds as detailed in the Statement of Financial Activities (SOFA). The restricted funds are distributed strictly in accordance with the restrictions imposed on the relevant fund where this is applicable.
The Charity's policy on unrestricted funds is to hold enough funds to meet at least 6 months of operating costs of the Charity. The Charity has taken into account the potential risks which may be encountered together with the expected funds required to cover such risks. In the current year the unrestricted fund balance of £2,040,815 (2021: 1,250,607) includes £465,336 (2021: £407,097) for the foundation fund, £870,090 (2021: £831,907) of fixed assets and capital works in progress net value and is stated after deducting the loan payable of £404,754 (2021: 424,810) as at the year-end. The foundation fund represents the costs required for the development of the Charity’s property to be utilised for its charitable purposes and will be used within the upcoming period as this could not be utilised during the former period due to the prolonged coronavirus situation. Therefore, the Charity has free reserve of £705,389 (2021: 11603) at the year-end after deducting the balance for foundation fund and the net book value of fixed assets and capital work in progress, which is sufficient to meet at least 6 months of operating costs as well as additional work which will be taking place in the upcoming period.
Future work
The Charity has already expanded its social media presence and plans to increase this further having systems in respect of such. Expansion of a few of the Charity’s projects are planned including the provision of water to those in need by installing further water filtration plants and wells. Educational projects will also be expanded to increase the number of students being supported by the Charity.
COVID-19
Due to our immediate reaction to the coronavirus situation, remote working practices were set up and implemented very quickly which resulted in the Charity continuing its work with no disruption. The Charity continued to assist beneficiaries of the subsequent waves of coronavirus affecting populations and provided assistance by way of COVID-19 safety packs as well as food and medical assistance. The Charity will continue assisting those suffering as a result of the COVID-19 pandemic as the need for this unfortunately remains ongoing .
Events since the end of the period
There are no events to report since the end of the period.
Trustees' responsibilities statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
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The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Ali Massoumian Trustee
Date: 3 November 2022
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The Zahra Trust Independent Auditor’s report to the Members of The Zahra Trust Year ended 31 March 2022
Opinion
We have audited the financial statements of The Zahra Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash flow Statement and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis 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 further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude
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The Zahra Trust Independent Auditor’s report to the Members of The Zahra Trust Year ended 31 March 2022
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the directors’ report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
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the charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a strategic report.
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement page 7 & 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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The Zahra Trust Independent Auditor’s report to the Members of The Zahra Trust Year ended 31 March 2022
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for Charities and Companies and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as include the Companies Act 2006 and the Charities Act 2011 and consider other factors such as payroll tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journals entries to revenue. Audit procedures performed by the engagement team included:
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Obtaining confirmation and corroborating evidence that there have been no regulatory or tax issues;
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Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities;
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Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
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Challenging assumptions and judgements made by management in their critical accounting estimates
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.
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 might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Murtaza Jessa (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG Date: 8 November 2022
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The Zahra Trust Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2022
| Unrestricted funds Note £ Income and endowments Donations and legacies 2 1,492,831 Trading activities 3 799 Investment income 4 104 Other income 5 444 Total income 1,494,178 Expenditure on Raising funds 6 191,299 Charitable activities 7 - Total expenditure 191,299 Net income 1,302,879 Transfers between funds (512,671) Net movement in funds 790,208 Reconciliation of funds Total funds brought forward 1,250,607 Total funds carried forward 2,040,815 |
2022 Restricted Total funds funds £ £ 2,166,532 3,659,363 - 799 - 104 - 444 2,166,532 3,660,710 - 191,299 2,457,720 2,457,720 2,457,720 2,649,019 (291,188) 1,011,691 512,671 - 221,483 1,011,691 1,495,396 2,746,003 1,716,879 3,757,694 |
2021 Total funds £ 4,003,473 - 615 109 4,004,197 241,939 2,201,635 2,443,574 1,560,623 - 1,560,623 1,185,380 2,746,003 |
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The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The notes on pages 15 to 24 form part of these financial statements.
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The Zahra Trust Balance Sheet As at 31 March 2022 Company Number: 06842695 (England and Wales)
| Note Fixed assets Tangible fixed assets 14 Current assets Shops assets 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets Funds of the charity Restricted funds Unrestricted funds Total charity funds 21/22 |
2022 £ £ 870,091 870,091 3,533 101,273 3,218,620 3,323,426 67,146 3,256,280 4,126,371 368,676 3,757,694 1,716,879 2,040,815 3,757,694 |
2021 £ £ 831,907 831,907 1,109 - 2,362,003 2,363,112 59,311 2,303,801 3,135,708 389,705 2,746,003 1,495,396 1,250,607 2,746,003 |
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These financial statements were approved by the board of trustees and authorised for issue on and are signed on behalf of the board by:
Ali Massoumian Trustee
Date: 3 November 2022
The notes on pages 15 to 24 form part of these financial statements.
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The Zahra Trust Statement of Cash Flows Year ended 31 March 2022
| The Zahra Trust Statement of Cash Flows Year ended 31 March 2022 |
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|---|---|---|---|---|
| Notes Net cash inflow from operations Net cash provided by operating activities (i) Cash flows from investing activities: Bank interest received Net cash used in investing activities Cash flow from financing activities Acquisition of fixed assets Repayment of long-term loan Net cash (used) in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the reporting period (ii) |
2022 £ £ 918,409 104 104 (40,868) (21,029) (61,897) 856,617 2,362,003 3,218,620 |
2021 £ £ 1,666,720 615 615 (5,185) (19,403) (24,588) 1,642,746 719,257 2,362,003 |
||
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net movement in funds Depreciation charges (Increase) in stock (Increase) / decrease in debtors Increase / (decrease) in creditors Bank interest received Net cash inflow from operating activities Analysis of cash and cash equivalents Cash Total cash and cash equivalents |
2022 £ 1,011,691 2,684 (2,424) (101,273) 7,835 (104) 918,409 2022 £ 3,218,620 3,218,620 |
2021 £ 1,560,623 2,374 (1,109) 117,074 (11,627) (615) 1,666,720 2021 £ 2,362,003 2,362,003 |
|---|---|---|
14
The Zahra Trust Notes to the financial statements Year ended 31 March 2022
1. Accounting Policies
Statement of compliance
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 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Zahra Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Trustees assessment of Going Concern
In view of the financial performance and the reserves position as at the balance sheet date the Board of Trustees have a reasonable expectation that The Zahra Trust will have the resources to continue in operational existence for the foreseeable future. The Trustees believe there are no material uncertainties that call into doubt our ability to continue as a going concern. The annual financial statements have therefore been prepared on the basis that the charity is a going concern. This year the Trust has seen an increment in the income, coupled with the development of a comprehensive fundraising strategy, communications plan and an improve supporter services experience, the Trustee foresees increased restricted and unrestricted income next year.
Income
All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.
Investment income is accounted for in the Statement of Financial Activities in the period in which the charity is entitled to receipt.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. 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. Grants payable are charged in the year when the offer is conveyed to the recipient. Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure.
Governance costs
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity, and include its audit fees and other costs linked to strategic management of the charity. These are allocated in line with other support costs.
15
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property Freehold land Fixtures and fittings Plant and machinery Computer equipment
- 2% on straight line -nil% - 25% on reducing balance - 25% on reducing balance - 33% on reducing balance
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Designated funds are those funds which have been designated by the Trustees for specific purposes within the objects of the charity.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension
The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Stock
Stock is included at the lower of cost and the net realisable value and relates to shop goods purchased for resale to the public.
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments.
Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
16
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
Judgements and estimation uncertainty
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basis financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. Donations
| Donations Gift aid Donations Donations Gift aid Donations 3 Trading activities Income from charitable shop 4. Investment income Bank interest receivable 5. Other income Interest received on gift aid 6. Costs of raising funds Cost of raising funds Support Costs (see note 8) Total |
Unrestricted Restricted Total funds funds funds 2022 £ £ £ 996,550 2,166,532 3,163,082 496,281 - 496,281 1,492,831 2,166,532 3,659,363 Unrestricted Restricted Total funds funds funds 2021 £ £ £ 983,894 2,525,647 3,509,541 493,932 - 493,932 1,477,826 2,525,647 4,003,473 2022 2021 £ £ 799 - Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ 104 104 615 615 Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ 444 444 109 109 2022 2021 £ £ 103,431 188,477 87,868 53,462 191,299 241,939 |
|---|---|
17
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
| 7. Expenditure on charitable activities Grant payable (see note 7.a) Support Costs (see note 8) Total 7.a Grants Payable Grants to Institutions £ Ahlulbayt Foundation 25,000 Alulbayt Foundation 118,867 In Azzahraa We Trust Foundation 1,817,806 Aero Asian for hospital 31,744 AL Jalili Child Hosp 118,976 AL-HARAKA 5,000 Lady Fatemeh Trust 3,754 Memorable buys 7,004 Impact Culture 9,552 Bilal Muslim Mission 4,130 Other Misc. 10,353 2,152,186 Grants to Institutions £ Al-Khoie Foundation 300,000 Ahlulbayt Foundation 137,500 Alulbayt Foundation 238,089 In Azzahraa We Trust Foundation 1,100,700 Boreal Light 99,374 Mawa Trust 51,614 Charity Consultancy 9,031 Soft Mark Solution 11,034 Strong flower 10,027 TMV Project Ltd 9,250 Bilal Muslim Mission 8,164 Shaheed Foundation 5,700 National Enterprise 4,800 Aya Hachem school and support - Other Misc. 1,516 1,986,799 |
2022 £ 2,194,117 263,603 2,457,720 Grants to Individuals £ 41,931 41,931 Grants to Individuals £ 28,722 25,727 54,449 |
2021 £ 2,041,248 160,387 2,201,635 2022 £ 25,000 118,867 1,817,806 31,744 118,976 5,000 3,754 7,004 9,552 4,130 52,284 2,194,117 2021 £ 300,000 137,500 238,089 1,100,700 99,374 51,614 9,031 11,034 10,027 9,250 8,164 5,700 4,800 28,722 27,243 2,041,248 |
|
|---|---|---|---|
18
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
8. Support costs
| Raising Charitable Fund Activities 2022 2022 £ £ Office running costs 4,195 12,587 Administrative costs 74,078 222,233 Finance costs 4,115 12,344 Governance costs 5,480 16,439 Total 87,868 263,603 Raising Charitable Fund Activities 2021 2021 £ £ Office running costs 3,902 11,706 Administrative costs 36,621 109,864 Finance costs 4,872 14,617 Governance costs 8,067 24,200 Total 53,462 160,387 upport costs are allocated in line with the usage by each activity. 9. Net income Net income is stated after charging / (crediting) 2022 £ Fees payable to auditors (net of VAT) 17,400 Depreciation of tangible fixed assets 2,684 Foreign exchange differences - 10. Governance cost 2022 £ Governance costs - audit fees 20,880 Governance costs - legal and other professional fees 1,039 Total 21,919 11. Auditors remuneration 2022 £ Auditor's remuneration 17,400 |
Total 2022 £ 16,782 296,311 16,459 21,919 351,471 Total 2021 £ 15,608 146,485 19,489 32,267 213,849 2021 £ 15,000 2,374 3,878 2021 £ 18,000 14,267 32,267 2021 £ 15,000 |
|---|---|
Support costs are allocated in line with the usage by each activity.
19
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
12. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| Wages and salaries Social security costs Employer contributions to pension plans The average head count of employees during the year was Number of staff |
2022 £ 218,996 17,413 1,341 237,750 2022 £ 8 |
2021 £ 86,762 6,882 1,319 94,963 2021 £ 4 |
|---|---|---|
No employee received employee benefits of more than £ 60,000 during the year (2021: nil). The trustees are the key management personnel who are not remunerated for their services to the charity.
13. Trustee remuneration and expenses
During the year, no Trustees received any remuneration (2021: none).
During the year, no Trustees received any benefits in kind (2021: none).
During the year, no Trustees received any reimbursement of expenses (2021: none).
Trustee expenses
There were no trustees’ expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
14. Tangible fixed assets
| Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Carrying amount At 31 March 2022 At 31 March 2021 |
Freehold Other Computers Fixtures WIP land & property equipment equipment and fittings £ £ £ £ £ - 826,443 8,308 4,975 10,646 37,471 - - 2,547 850 37,471 826,443 8,308 7,522 11,496 - - 8,024 1,658 8,783 - - 71 1,935 678 - - 8,095 3,593 9,461 37,471 826,443 213 3,929 2,035 - 826,443 284 3,317 1,863 |
Total £ 850,372 40,868 891,240 |
Total £ 850,372 40,868 891,240 |
|---|---|---|---|
18,465 2,684 21,149 870,091 |
18,465 2,684 21,149 |
||
831,907 |
The total value of the freehold land and property is made of a site known as Salvation Army Hall, Barnfield Road, Edgware, HA8 0AY. The value of the old property is deemed as £nil.
20
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
| 15. Stock Shops goods 16. Debtors Trade debtors Prepayments Other debtors 17. Creditors: amounts falling due within one year Bank loans and overdrafts Accruals and deferred income Social security and other taxes Pension Other creditors - Net Wages 18. Creditors: amounts falling due after more than one year Bank loans and overdrafts An analysis of the maturity of loans is given below: Amounts falling due within one year on demand Amounts falling due within two and five years Amounts falling due in more than five years |
2022 £ 3,533 2022 £ 34,194 35,000 32,079 101,273 2022 £ 36,078 21,780 7,932 300 1,056 67,146 2022 £ 368,676 2022 £ 36,078 144,312 224,364 |
2021 £ 1,109 2021 £ - - - - 2021 £ 35,105 20,817 3,054 335 - 59,311 2021 £ 389,705 2021 £ 35,105 140,420 214,180 |
|---|---|---|
19. Charge - bank loan
There is a charge by Barclays Bank plc in respect of the Charity's property. The charity with full title guarantee charges by way of a legal mortgage the property known as Salvation Army Hall, Barnfield Road, Edgware, HA8 0AY, including all buildings now or to be erected thereon and discharge to the bank on the demand by the bank of all the liabilities.
20. Pensions
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £ 1,341 (2021: £1,319).
21
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
21. Analysis of charitable funds
Unrestricted funds
| 21. Analysis of charitable funds Unrestricted funds |
|||
|---|---|---|---|
| General funds Foundation - designated fund Restricted funds Orphans, widows, poor and vulnerables Khums WASH Education Healthcare Religious obligations Emergency and relief Pandemic Syria Aid Yemen Aid Total |
At 1 April 2021 £ 843,510 407,097 1,250,607 At 1 April 2021 £ - 596,090 438,897 - 29,957 - - 51,892 38,566 339,994 1,495,396 2,746,003 |
Income Expenditure £ £ 1,494,178 (191,299) - - 1,494,178 (191,299) Income Expenditure £ £ 303,332 (489,623) 591,773 (844,142) 215,121 (7,760) 1,656 (32,780) 70,419 (149,235) 375,862 (581,682) 592,549 (5,901) 15,820 (77,268) - (69,587) - (199,742) 2,166,532 (2,457,720) 3,660,710 (2,649,019) |
At Transfers 31 March 2022 £ £ (570,910) 1,575,479 58,239 465,336 (512,671) 2,040,815 At Transfers 31 March 2022 £ £ 186,291 - - 343,721 - 646,258 31,124 - 48,859 - 205,820 - - 586,648 9,556 - 31,021 - - 140,252 512,671 1,716,879 - 3,757,694 |
Orphans, widows, poor and vulnerables
-
Orphans: The charity provides the essentials including food, shelter and clothing to orphans in many regions including, Iraq, Pakistan, Afghanistan, Syria, Yemen and Africa.
-
Widows: The charity also runs camps in many regions and provides food, shelter and clothing to widows. Khums: This is an obligatory religious tax of 20%. To be spent on poors, needy, syeds etc.
WASH: The charity runs projects in many regions to provide safe drinking water, sanitation and hygiene. Education and healthcare: continuing educational, medical and humanitarian support are provided to Muslim community in Myanmar. Medical support are provided to the needy who are suffering from medical ailments. Such medical support includes medical clinics which are set up in areas where access to medical facilities are scarce.
Syria and Yemen: To provide relief and poverty aid to the needy in Syria and Yemen.
Emergency and relief: To provide basic facilities and temporary shelters in conflicts ridden countries, on-going war zones and people affected from natural calamities, communal conflicts; during and post conflict sufferings. Religious obligations: To provide religious rituals, ceremonies and obligations, ramadhan, and mosque activities. Pandemic: packs including soap, hand sanitiser, face masks and tissues were distributed to the beneficiaries and our volunteers distributed educational leaflets and provided advice in various places to raise awareness in public for minimising the rise of the spread of Covid-19.
22
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
Analysis of charitable funds – 31 March 2021
| Unrestricted funds At 1 April 2020 Income £ £ General funds 278,682 1,478,550 Foundation - designated fund 384,723 - 663,405 1,478,550 Restricted funds At 1 April 2021 Income £ £ Orphans, widows, poor and vulnerable - 446,960 Khums 221,843 631,646 WASH 121,198 400,241 Education - 19,184 Healthcare 30,203 11,654 Religious obligations 58,245 352,614 Emergency and relief - 155,962 Pandemic - 111,053 Syria Aid - 38,565 Yemen Aid 90,486 357,768 521,975 2,525,647 Total 1,185,380 4,004,197 22. Analysis of net assets between funds Unrestricted Funds £ Tangible fixed assets 870,090 Current assets 1,606,547 Creditors less than 1 year (67,146) Creditors greater than 1 year (368,676) Net assets 2,040,815 Analysis of net assets between funds – 31 March 2021 Unrestricted Funds £ Tangible fixed assets 831,907 Current assets 867,716 Creditors less than 1 year (59,311) Creditors greater than 1 year (389,705) Net assets 1,250,607 |
Expenditure £ (241,939) - (241,939) Expenditure £ (477,405) (257,399) (82,542) (133,460) (11,900) (747,721) (323,788) (59,160) - (108,260) (2,201,635) (2,443,574) Restricted Funds £ 1,716,879 - 1,716,879 Restricted Funds £ 1,495,396 - 1,495,396 |
At Transfers 31 March 2021 £ £ (671,783) 843,510 22,374 407,097 (649,409) 1,250,607 At Transfers 31 March 2021 £ £ 30,445 - 596,090 438,897 114,276 - 29,957 336,862 - 167,826 - 51,893 38,565 - 339,994 649,409 1,495,396 - 2,746,003 Total Funds Total Funds 2022 2021 £ £ 870,090 831,907 3,323,426 2,363,112 (67,146) (59,311) (368,676) (389,705) 3,757,694 2,746,003 Total Funds Total Funds 2021 2020 £ £ 831,907 829,096 2,363,112 836,331 (59,311) (70,939) (389,705) (409,108) 2,746,003 1,185,380 |
|---|---|---|
23
The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2022
23. Capital commitments
The Charity has entered into an agreement with AH UK Management Ltd for the construction of building in the sum of £370,000. Works remaining outstanding as at 31 March 2022 was in the sum of £351,750 (2021: nil)
24. Related parties
One of the trustees made a total donation of £3,640 to the Charity during the year (2021: nil). No other related parties have occurred in the year or prior year
25. Net debt reconciliation
| Cash Net debt reconciliation - 2021 Cash |
At 1 April 2021 £ 2,362,003 At 1 April 2020 £ 719,257 |
Cashflow Other non-cash changes £ £ 856,617 - Cashflow Other non-cash changes £ £ 1,642,746 - |
At 31 March 2022 £ 3,218,620 At 31 March 2021 £ 2,362,003 |
|---|---|---|---|
24