**COMPANY REGISTRATION NUMBER: 06842695 CHARITY REGISTRATION NUMBER: 1129501**
## **The Zahra Trust**
**Trustees’ Report and Financial Statements For the year ended 31 March 2023**
**The Zahra Trust Contents Year ended 31 March 2023**
||**Page**|
|---|---|
|Trustees' annual report (incorporating the director's report)|**1-9**|
|Independent auditor's report to the members|**10-12**|
|Statement of financial activities (including income and expenditure
account)|**13**|
|Balance Sheet|**14**|
|Statement of cash flows|**15**|
|Notes to the financial statements|**16-25**|
**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report) Year ended 31 March 2023**
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 2022 to 31 March 2023. 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) (Second Edition).
## **Reference and administrative details**
|**Registered charity name**|The Zahra Trust|
|---|---|
|**Charity registration number**|1129501|
|**Company registration number**|06842695|
|**Principal office and registered**|45 Barnhill Road|
|**office**|London|
||HA8 0AY|
|**The trustees**|Dr A Massoumian|
||Faisal Alireza Hasham|
||Aliraza Aseer Jaffar|
|**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 2023**
## **Structure, governance and management**
## **The Zahra Trust**
The Zahra Trust (‘the Charity’) is a faith-based international relief and humanitarian. The Charity has been working for over a decade to help improve the lives of people in some of the world's poorest communities. 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 selected based on their aptitude for efficiently managing the Charity. In this regard, the qualifications, expertise, and skills of potential Trustees are evaluated, along with their past involvement in community or charitable activities. The appointment of trustees is carried out through a resolution passed by the current trustees. Upon the appointment of a new trustee, a memorandum documenting the appointment is prepared and filed in accordance with the necessary procedures.
## **Induction and training of new trustees**
Upon their appointment, newly appointed trustees are oriented to their responsibilities and furnished with copies of the Memorandum of Association, along with the policies and regulations of the Charity. They are offered the chance to shadow and liaise with existing trustees, leveraging their wealth of experience. Trustees are also provided with Charity Commission guidance, in addition to internal and external training, to support them in fulfilling their roles effectively.
## **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 convene and engage in discussions and meetings, functioning as a unified entity responsible for all decisions pertaining to the management and 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 & 2022. The charity is registered with the Fundraising Regulator and endeavours to adhere to the highest standards of fundraising.
The fundraising undertaken by the Charity utilizes a few different approaches, which include the following:
Major Donor giving Online Fundraising Corporate giving Direct Mail Appeals/campaigns
The benevolence of our donors has contributed to the Charity's success in campaigns throughout the year, enabling us to extend support to a larger number of beneficiaries.
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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
## **Complaints handling**
Any received complaints are addressed according to the Charity's Complaint Policy and, if necessary, reported to the Fundraising Regulator. The Charity is pleased to report that there were no complaints raised in the current or preceding year.
## **Risk Management and Review**
The Trustees ensure the implementation of controls and policies to mitigate risks across all facets of the Charity's operations. They diligently address and manage these risks to ensure the Charity's objectives are achieved while safeguarding its funds and assets. The Trustees have effectively managed risk areas outlined by the Charity Commission, encompassing governance, financial, environmental, operational and compliance. Additionally, they adhere to national and international legislation regarding overseas work, following guidelines from the Charity Commission and HMRC.
The Charity maintains a central risk register, regularly updating it to review and adjust procedures or policies as needed, ensuring their ongoing suitability and robustness, particularly in the context of international operations. When new risks are identified, existing policies and procedures are modified to address them. Given the continuous nature of this review process, the trustees are confident that risks are identified and managed promptly and effectively.
## **Assurance framework**
The Zahra Trust has a dedicated internal compliance department committed to improving governance, risk management and internal controls. This provides an additional and independent layer of assurance that the Trust is achieving its objects effectively and efficiently.
## **Major risks and mitigation**
The Charity considers the following risks potentially affecting it at an organisational level. For each risk, specific action and performance indicators relating to such are monitored by the Senior Leadership Team and the Board of Trustees.
- Working with partners internationally and/or in high-risk jurisdictions. The Charity carries out an enhanced due diligence on partners while making selection, and in addition to the due diligence obtained from partners prior to any project commencing in accordance with the Know your Partner principles set out by the Charity Commission, the Charity signs robust legal agreements to ensure that the partner is bound by its obligations in respect of each project. Partners must also provide periodical and final reports to enable the Charity to monitor and evaluate the utilisation of the grants and the extent to which the objectives of the Charity were met. The Trustees of the Charity also regularly undertake site visits as a further means of verification. The Charity adopts a risk-based approach in its grant-making activities, taking into account factors such as the size of the grant, geographical location (including high risk jurisdictions), beneficiary size and location and other pertinent considerations.
.
- Retention of donors to enable the Charity to continue with its projects. In respect to the Charity’s donors, as is common with other charities, there is always a risk of the potential loss of our donor base. Various factors may contribute to this risk including economic conditions, such as the current ‘cost of living crisis’, competition with other charities or ineffective communication with donors. To mitigate these risks, the Charity endeavours to retain experts including marketing professionals to plan and implement effective fundraising strategies. The Charity strives to ensure that all its operations are transparent as well as engaging with and informing its donors on the positive impact of the Charity’s work to ensure confidence and promote charitable giving.
- Currency fluctuation
As the Charity works internationally, the Charity keeps abreast of currency valuations and maintains
**3**
**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
robust relationships with financial services providers. Where appropriate, the Charity engages with the wider sector to exploring mitigating approaches to forex challenges.
- Global operations and rising costs. Weak oversight of global operations may result in high operational costs in field offices which impedes on the Charity’s effectiveness in delivering programmes overseas.
- The Charity rigorously and continuously reviews the operational costs for implementation of its charitable projects to ensure this is kept within budget.
Along with above we continue to:
- Provide continuous training on policies and procedures for all staff.
- Partner audits to mitigate risks and assess effectiveness.
- Explore other income streams from regional donors, trusts and foundations to support global programmes.
## **Due Diligence**
Operating frequently in challenging environments, the Charity faces potential risks concerning partnerships and funding. To mitigate these risks, the Charity has recently revisited and updated its Due Diligence policy. This ongoing effort ensures thorough verification and assessment of the identity of potential partners before establishing any formal relationship. The Due Diligence process involves the completion of forms and identity documents, coupled with a comprehensive appraisal utilising various sources and online searches. In instances where issues arise, the Charity conducts in-depth assessments to gauge the level and extent of associated risks before making any decisions. Additionally, the Charity is committed to conducting regular checks on all active partners receiving funding from the organisation.
## **Conflict of Interest**
The Charity has established internal policies and procedures to identify conflicts, and when necessary, take steps to mitigate or address them appropriately. These policies are applicable to all partners within the Charity's operational domains.
## **Property**
The property of the Charity was undergoing renovation and once completed 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 depends on and expresses deep gratitude for the generosity of its donors to achieve its objectives. Through the kindness and benevolence of individuals, the Charity has experienced a consistent growth in both its donor base and income. Nevertheless, the uncertainty surrounding income is a constant consideration, particularly in the current climate. To address this, the Charity has implemented a comprehensive fundraising strategy, which seems to be yielding successful results.
## **Sending money overseas**
The Charity depends on the banking system to deliver overseas aid for its humanitarian and other assistance programs. Operating in challenging environments, the Charity has faced challenges in the past when transferring funds to provide timely assistance. Nonetheless, the Charity is actively enhancing its internal controls and has taken measures to mitigate any risks associated with fund transfers.
## **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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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
- the provision and maintenance of mosques and religious centers;
- the teaching and educating of members of the Islamic community;
- the provision of medical and financial assistance; and
- the promotion of interreligious harmony through dialogue with other faiths and traditions.
## **Significant activities**
The Charity undertook a diverse array of activities to advance its charitable aims and objectives. The trustees believe that these activities, as outlined below, have been beneficial to the general public both in the local community and on a global scale. The Charity offered a range of services including:
General counselling Educational advancement The prevention of relief of poverty Overseas aid/emergency relief Religious activities Economic/community development
The above services are provided by means of:
Making grants to individuals and organisations Providing other finance to individuals and organisations Providing human resources Other charitable activities
## **Grantmaking**
The Charity manages the gathering and disbursing of various religious obligations such as Khums, Zakat, and Sadaqat in accordance with the principles of the Islamic faith. Additionally, the Charity collects general donations, which are then distributed through grants to individuals and institutions, aligning with the Charity's objectives related to education, training, poverty relief, and various religious activities.
Grant making is integral to realising the charitable objectives and goals of the Charity. The trustees govern the Charity's policy for allocating grants by setting and supervising the principles, criteria, and process for funding. The trustees of the Charity have unrestricted discretion in utilising the Charity's funds in accordance with its charitable purposes and objectives, and their decisions are conclusive.
## **Volunteers**
We promote active participation in voluntary activities and encourage members of the community to share their skills with others. Volunteers play a crucial role in the Charity's operations, for which we are deeply thankful. They contribute their time, expertise, and aid in the Charity's fundraising activities. While volunteers are not remunerated, reasonable out-of-pocket expenses, such as travel costs, are reimbursed. The Charity has established policies and procedures to vet, recruit, guide and support volunteers.
## **Achievements and performance**
## **How our activities deliver public benefit**
The Trustees ensure that the Charity's activities, aligned with its charitable aims and objectives, result in public benefit. The summarized activities below, as deemed by the Trustees, bring advantages to the broader community and fall within the purposes outlined by the Charities Act 2011. The trustees affirm that they have thoroughly considered and adhered to the Charity Commission guidance regarding public benefit in the organisation's activities. Additionally, they have taken into account the supplementary public benefit guidance on the advancement of health or the saving of lives, as per section 17(5) of the Charities Act 2011.
## **Food Aid**
Unfortunately, a significant number of individuals lack access to nourishing and wholesome food. With the
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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
support of our generous donors, the Charity persistently distributes various essential food items in the form of food baskets or parcels throughout the year, including the month of Ramadan, when a majority of healthy Muslims observe fasting. These parcels or baskets typically contain staple items like rice, lentils, dates, tea, oil, flour, and sugar. The Charity endeavours to ensure that the provided food parcels are sufficient to sustain a family for up to one month.
Alongside the distribution of food parcels, hot meals are also provided to families and individuals during Ramadan and other special occasions. These meals offer nutritional value, particularly to families who may lack the means to include meat dishes in their regular diet. Additionally, the Charity extends support by providing Qurbanis (nutritious meat) to the impoverished and vulnerable in Iraq, Pakistan, Yemen, and Afghanistan during the religious occasion of Eid. This initiative benefits families with limited or no resources to purchase meat on a regular basis.
Throughout the past year, the Charity provided food aid to individuals and families in various countries, including Iraq, Pakistan, Africa, Yemen and Afghanistan.
## **Religious dues**
The Charity is authorised by distinguished scholars to collect religious obligations. Within the Islamic faith, it is customary for individuals to contribute religious dues like Zakat, Khums, and Sadaqa. The Charity accepts these contributions from donors and allocates them to the appointed religious institutions responsible for collecting such funds. These funds are then directed towards charitable efforts to support the needy and impoverished, as well as to promote the teachings of Islam, aligning with the objectives of the Charity.
## **Assisting the vulnerable and needy**
Throughout the past year, the Charity has actively addressed emergency crises, providing essential aid to the vulnerable and needy, not only focusing on immediate necessities but also on long-term development. During this period, the Charity has delivered support in the form of food, medical assistance and shelter to communities in its operational regions. Additionally, the Charity has extended emergency aid to those affected by disasters such as the Pakistan floods and the Syria-Turkiye earthquake.
## **Widow Aid**
Amongst the most risk in societies across our areas of operation are members of female-headed households. Widows often face the challenge of securing a sustainable income to provide for their children, whilst orphans are vulnerable to abuse and forced labour without the chance to enjoy a childhood. Children from disadvantaged backgrounds are much less likely to attend formal education which limits their opportunity to succeed, potentially preventing them from breaking the cycle of poverty within their generation. Often, vulnerable families are affected even more greatly than female-headed households as a result of their unique set of circumstances and the Charity takes care to ensure that these families are identified and cared for.
Across all of its projects, the Charity prioritises orphans, widows and vulnerable families, ensuring that they receive the support they need wherever we can provide it.
## **Projects for Orphans**
The Charity helps provide essential necessities, including food and clothing, to orphans in various regions such as Iraq, Yemen and Afghanistan. Offering crucial support to orphans is an act of charity, providing both physical and emotional relief to those who may feel forgotten or isolated. Beyond financial assistance, the Charity strives to offer toys, outings, and community initiatives for orphans, aiming for a comprehensive and holistic approach to enhance the benefits derived from the provided assistance.
## **Child educational and development programs**
Education constitutes a pivotal element of development, and the Charity deems it crucial to aid children with limited or no access to education. The Charity engages in educational and recreational initiatives for orphans and underprivileged children, offering them opportunities for interaction with peers to develop social skills and a broader support network. Additionally, The Zahra Trust has collaborated with In Azzahra We Trust and Dar Al Zahra in Iraq to deliver educational and holistic support to over 1000 orphans and vulnerable children in the holy
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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
## cities of Najaf and Karbala.
Children from disadvantaged backgrounds are doubly disadvantaged when they are unable to have nutritious meals to sustain them while they learn. The Charity provided approximately 1000 lunches per day during term to disadvantaged children to ensure that they receive a nutritious meal during the day to support their education as well as alleviating the financial hardship of their families to provide them with meals.
## **Water Aid Projects**
The Charity receives donations from generous individuals to contribute to the provision of safe and clean drinking water for those lacking ready access. The Charity facilitated the establishment of water wells in more remote villages in Pakistan, enabling local communities to access drinking water more conveniently. Through the generosity of our donors, we successfully installed over 300 wells during the year. This has greatly benefitted the local communities as this has provided them with a local and safe source of fresh water which many people take for granted, but for some, the provision of this basic necessity has been life altering.
## **Medical Assistance**
The Charity remains committed to offering medical assistance to those in need, including orphans and widows. Free medical clinics have been established to provide individuals with medical care that they would otherwise be unable to afford.
The medical support extended also included the provision of free cataract surgeries in Yemen for individuals identified as urgently needing the procedure. This initiative saved the sight of these individuals in the affected eye and, in some cases, prevented blindness.
## **Winter Aid**
The winter season brings bitter and harsh conditions, intensifying the challenges of poverty. For those already grappling with limited access to basic necessities, uncertainty about their next meal or source of clean water is compounded by the difficulty of securing adequate shelter and heat to protect their families from the elements. In response, the Charity extends support during the winter months, delivering winter supplies to thousands of families. These supplies include heaters, mattresses as well as blankets.
## **Local presence**
Throughout the year, the Charity was present across communities, taking part in events, fairs and visiting centers. This enabled the Charity to strengthen bonds with local and national communities and meet with people to answer questions about our work. Our trustees, staff and volunteers thoroughly enjoyed meeting everyone.
## **UK Food drive**
The Charity, in partnership with a local charity, identified and supported vulnerable families in the UK for winter support, including by helping to cover the cost of energy bills for those struggling to afford them. Through this campaign, together we supported around hundreds of people in the winter period. Throughout the year, The Zahra Trust also supported local food banks to help alleviate the hardship of families as well as to relieve the strain that the food banks are experiencing.
## **Financial review**
The primary income streams for the Charity originate from the collection of donations and religious dues from the general public. Presently, the Charity does not maintain any investments with the intention of generating income. The total funds generated by the charity, excluding investment and interest income, amounted to £4,412,629 during the year (2022: £3,659,363). This revenue was primarily sourced from the collection of donations for various charitable purposes and gift aid repayments received from HMRC.
Total resources expended during the year is £5,662,099 (2022: £2,649,018). This includes £4,866,679 (2022: £2,194,117) expended for grant payables and other charitable activities.
Total funds carried forward at the end of the year was £2,523,891 (2022: £3,757,694). £1,394,651 of the current year fund balance represents unrestricted fund, and £1,129,240 represents restricted fund balance.
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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
## **Reserves policy**
Reserves of unrestricted funds are maintained to cover the general operational expenses of the Charity and to address potential uncertainties in the future.
In setting up the Charity reserve policy, the trustees have identified various restricted funds, detailed in the Statement of Financial Activities (SOFA). The restricted funds are allocated strictly in accordance with the imposed restrictions 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 £1,394,651 (2022: 2,040,815) includes £993,862 (2022: £465,336) for the foundation fund.
£1,380,565 (2022: £870,090) of fixed assets and capital works in progress net value and is stated after deducting the loan payable of £386,703 (2022: 404,754) 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 £14,085 (2022: 705,389) at the year-end after deducting the balance for foundation fund and the net book value of fixed assets and capital work in progress, compared to its projected six months of the operating reserve target of c.180k. Whilst the Charity’s free reserves are below its target, it has sufficient liquid reserves and a good ongoing fundraising performance to allow it sufficiently meet its ongoing operating costs. The trustees aim to continue to build the Charity’s free reserves in the coming periods.
## **Future work**
The Charity has already broadened its footprint on social media platforms and intends to amplify this presence, having established dedicated systems for such purposes. There are plans for the expansion of several of the Charity's projects, including the provision of fresh and safe water to those in need. Educational initiatives will also be extended, aiming to increase the number of students benefiting from the Charity's support. The Charity will be looking to establish new partnerships to expand the scope of beneficiaries receiving benefits from the Charity’s grants.
## **Events since the end of the period**
There are no events to report since the end of the period.
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**The Zahra Trust Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ **Year ended 31 March 2023**
## **Trustees' responsibilities statement**
The trustees, also acting as directors for the purposes of company law, bear the responsibility of preparing the trustees' report and financial statements in compliance with applicable laws and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
According to company law, the charity trustees must compile financial statements annually that present a true and fair view of the charitable company's state of affairs, detailing incoming resources and the application of resources, encompassing income and expenditure, for that period.
In the process of preparing these financial statements, the trustees are obligated to:
- Select appropriate accounting policies and consistently apply them.
- Adhere to the methods and principles outlined in the applicable Charities Statement of Recommended Practice (SORP).
- Exercise reasonable and prudent judgment in making accounting estimates.
- Explicitly state whether applicable UK Accounting Standards have been followed, with any material departures disclosed and explained in the financial statements.
- Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the charity will continue in business.
Furthermore, the trustees are accountable for maintaining adequate accounting records that sufficiently demonstrate and elucidate the Charity's transactions. These records must disclose, with reasonable accuracy at any time, the financial position of the charity, enabling the trustees to ensure compliance with the Companies Act 2006. Additionally, the trustees are responsible for safeguarding the charity's assets and must take reasonable measures for the prevention and detection of fraud and other irregularities.
Each of the persons who is a trustee at the date of approval of this report confirms that:
so far as they are aware, there is no relevant audit information of which the Charity's auditor is unaware; and
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.
Trustee Ali Massoumian
Date: 11 December 2023
**9**
**The Zahra Trust Statement of Financial Activities Year ended 31 March 2023**
## **Opinion**
We have audited the financial statements of The Zahra Trust for the year ended 31 March 2023 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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’ Annual 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 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.
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**The Zahra Trust Statement of Financial Activities Year ended 31 March 2023**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Annual Report (which includes the directors’ report for the purpose of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the Trustees’ Annual 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’ Annual 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:
- adequate accounting records have not been kept by the charitable company; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit[; or
- 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 9, 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.
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:
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**The Zahra Trust Statement of Financial Activities Year ended 31 March 2023**
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 the Charity Law, 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 the recognition of revenue, including the cut-off of revenue at the year end. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals; and
- 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.
**Vikram Sandhu (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors**
**10 Queen Street Place London EC4R 1AG**
> **Date:** 20 December 2023
12
## **The Zahra Trust**
## **Statement of Financial Activities**
## **(including income and expenditure account)**
## **Company Number: 06842695 (England and Wales) Year ended 31 March 2023**
|**Note**
**Income and endowments**
Donations and legacies
**2**
Trading activities
**3**
Investment income
**4**
Other income
**5**
**Total income**
**Expenditure on**
Raising funds
**6**
Charitable activities
7
**Total expenditure**
**Net income**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|1,572,176
12,510
3,165
-
**1,587,851**
449,719
-
**449,719**
**1,138,132**
(1,784,296)
**(646,164)**
2,040,815
**1,394,651**
**Unrestricted**
**funds**
**£**||**2022**
**Total funds**
2,840,445
4,412,621
-
12,510
-
3,165
-
-
**2,840,445**
**4,428,296**
-
449,719
5,212,380
5,212,380
**5,212,380**
**5,662,099**
**£**
3,659,363
799
104
444
3,660,710
191,299
2,457,720
2,649,019
**(2,371,935)**
**1,784,296**
**(1,233,803)**
-
**1,011,691**
-
**(587,639)**
**(1,233,803)**
**1,011,691**
1,716,879
3,757,694
2,746,003
**1,129,240**
**2,523,891**
**3,757,694**
**2023**
**Restricted**
**Total funds**
**funds**
**£**
**£**|**2022**
**Total funds**
2,840,445
4,412,621
-
12,510
-
3,165
-
-
**2,840,445**
**4,428,296**
-
449,719
5,212,380
5,212,380
**5,212,380**
**5,662,099**
**£**
3,659,363
799
104
444
3,660,710
191,299
2,457,720
2,649,019
**(2,371,935)**
**1,784,296**
**(1,233,803)**
-
**1,011,691**
-
**(587,639)**
**(1,233,803)**
**1,011,691**
1,716,879
3,757,694
2,746,003
**1,129,240**
**2,523,891**
**3,757,694**
**2023**
**Restricted**
**Total funds**
**funds**
**£**
**£**|**2022**
**Total funds**
2,840,445
4,412,621
-
12,510
-
3,165
-
-
**2,840,445**
**4,428,296**
-
449,719
5,212,380
5,212,380
**5,212,380**
**5,662,099**
**£**
3,659,363
799
104
444
3,660,710
191,299
2,457,720
2,649,019
**(2,371,935)**
**1,784,296**
**(1,233,803)**
-
**1,011,691**
-
**(587,639)**
**(1,233,803)**
**1,011,691**
1,716,879
3,757,694
2,746,003
**1,129,240**
**2,523,891**
**3,757,694**
**2023**
**Restricted**
**Total funds**
**funds**
**£**
**£**|**2022**
**Total funds**
2,840,445
4,412,621
-
12,510
-
3,165
-
-
**2,840,445**
**4,428,296**
-
449,719
5,212,380
5,212,380
**5,212,380**
**5,662,099**
**£**
3,659,363
799
104
444
3,660,710
191,299
2,457,720
2,649,019
**(2,371,935)**
**1,784,296**
**(1,233,803)**
-
**1,011,691**
-
**(587,639)**
**(1,233,803)**
**1,011,691**
1,716,879
3,757,694
2,746,003
**1,129,240**
**2,523,891**
**3,757,694**
**2023**
**Restricted**
**Total funds**
**funds**
**£**
**£**|
|---|---|---|---|---|---|---|
|||||||3,660,710|
|||||||191,299
2,457,720|
||||||
|
2649019|
||||||
|,,
**1,011,691**
-|
||||||||
|||||||**1,011,691**
2,746,003|
|||||
|
|
**3,757,694**|
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 16 to 25 form part of these financial statements.**
13
## **The Zahra Trust Balance Sheet As at 31 March 2023**
|**Net current assets**
**Total assets less current liabilities**
**Funds of the charity**
**Note**
**14**
**Fixed assets**
Tangible fixed assets
**Creditors: amounts falling due within**
**one year**
**17**
**Creditors: amounts falling due after**
**more than one year**
**18**
**Net assets**
Restricted funds
Unrestricted funds
**Total charity funds**
**22**
**Current assets**
Shop stock
**15**
Debtors
**16**
Cash at bank and in hand||62,428
**2023**
**£**
**£**
1,380,565
1,380,565
7,985
5,419
1,551,099
1,564,503
358,749
2,523,891
1,502,075
2,882,640
1,129,240
1,394,651
2,523,891|62,428
**2023**
**£**
**£**
1,380,565
1,380,565
7,985
5,419
1,551,099
1,564,503
358,749
2,523,891
1,502,075
2,882,640
1,129,240
1,394,651
2,523,891|62,428
**2023**
**£**
**£**
1,380,565
1,380,565
7,985
5,419
1,551,099
1,564,503
358,749
2,523,891
1,502,075
2,882,640
1,129,240
1,394,651
2,523,891||67,146
**2022**
**£**
870,091
3,533
101,273
3,218,620
3,323,426|**£**
870,091
3,256,280
3,757,695|
|---|---|---|---|---|---|---|---|
|||||||||
||||1,502,075
2,882,640|||||
|||||||||
||||358,749
2,523,891||||368,676
3,757,695|
||||||||1,716,879
2,040,815
3,757,694|
||||1,129,240
1,394,651
2,523,891|||||
These financial statements were approved by the board of trustees and authorised for issue on 11 December 2023 and are signed on behalf of the board by:
Ali Massoumian Trustee
The notes on pages 16 to 25 form part of these financial statements.
**14**
## **The Zahra Trust**
## **Statement of Cash Flows Year ended March 2023**
|**Notes**
**Net cash inflow from operations**
(1,147,708)
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**Analysis of cash and cash equivalents**
**2023**
**2022**
**£**
**£**
**£**
Net cash provided / (used) by operating
activities
(i)
**Cash flows from investing activities:**
Bank interest received
**Net cash used in investing activities**
3,165
104
3,165
**Cash flow from financing activities**
Acquisition of fixed assets
Repayment of long term loan
**Net cash (used) in financing activities**
(513,050)
(40,868)
(9,927)
(21,029)
(522,977)
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)
(1,667,521)
3,218,620
1,551,099
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**
**2023**
**£**
(1,233,803)
2,576
(4,452)
95,854
(4,718)
(3,165)
(1,147,708)
Cash
**Total cash and cash equivalents**
**2023**
**£**
1,551,099
1,551,099|**Notes**
**Net cash inflow from operations**
(1,147,708)
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**Analysis of cash and cash equivalents**
**2023**
**2022**
**£**
**£**
**£**
Net cash provided / (used) by operating
activities
(i)
**Cash flows from investing activities:**
Bank interest received
**Net cash used in investing activities**
3,165
104
3,165
**Cash flow from financing activities**
Acquisition of fixed assets
Repayment of long term loan
**Net cash (used) in financing activities**
(513,050)
(40,868)
(9,927)
(21,029)
(522,977)
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)
(1,667,521)
3,218,620
1,551,099
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**
**2023**
**£**
(1,233,803)
2,576
(4,452)
95,854
(4,718)
(3,165)
(1,147,708)
Cash
**Total cash and cash equivalents**
**2023**
**£**
1,551,099
1,551,099|**Notes**
**Net cash inflow from operations**
(1,147,708)
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**Analysis of cash and cash equivalents**
**2023**
**2022**
**£**
**£**
**£**
Net cash provided / (used) by operating
activities
(i)
**Cash flows from investing activities:**
Bank interest received
**Net cash used in investing activities**
3,165
104
3,165
**Cash flow from financing activities**
Acquisition of fixed assets
Repayment of long term loan
**Net cash (used) in financing activities**
(513,050)
(40,868)
(9,927)
(21,029)
(522,977)
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)
(1,667,521)
3,218,620
1,551,099
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**
**2023**
**£**
(1,233,803)
2,576
(4,452)
95,854
(4,718)
(3,165)
(1,147,708)
Cash
**Total cash and cash equivalents**
**2023**
**£**
1,551,099
1,551,099|918,409
**£**
104
(61,897)
856,617
2,362,003
3,218,620
**2022**
**£**
1,011,691
2,684
(2,424)
(101,273)
7,835
(104)|
|---|---|---|---|
||
|
||
|||||
||||
918,409
**2022**
**£**
3,218,620
3,218,620|
|||||
15
**The Zahra Trust Notes to the financial statements Year ended March 2023**
## **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 2015) - (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 and the impact of Covid-19, 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 yearend 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.
16
**The Zahra Trust Notes to the financial statements (continued) Year ended 31 March 2023**
## **Tangible fixed assets**
|Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.|Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.|
|---|---|
|Freehold property|- 2% on straight line|
|Fixtures and fittings|- 25% on reducing balance|
|Plant and machinery|- 25% on reducing balance|
|Computers and software|- 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 costs and other post-retirement benefits**
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.
## **Financial instruments**
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes.
## **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.
## **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.
17
## **The Zahra Trust Notes to the financial statements (continued) Year ended March 2023**
## **Employee benefits**
- **Short term benefits**
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## **2. Donations**
|**3 Trading activities**
Income from charitable shop
**4. Investment income**
Bank interest receivable
**5. Other income**
Interest received on giftaid
**6.**
**Costs of raising funds**
**Unrestricted**
**funds**
**£**
3,165
**Unrestricted**
**funds**
**£**
-
Donations
Gift aid
Donations
Donations
Gift aid
Donations
Cost of raising funds
Support Costs (see note 8)
Total|**2023**
**£**
12,510
**Total funds Unrestricted**
**2023**
**funds**
**£**
**£**
3,165
104
**Total funds**
**Unrestricted**
**2023**
**funds**
**£**
**£**
-
444
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
1,135,564
2,840,445
436,612
-
1,572,176
2,840,445
**Unrestricted**
**Restricted**
**funds**
**funds**
996,550
2,166,532
496,281
-
1,492,831
2,166,532
**2023**
**£**
334,485
115,234
449,719|**Total funds**
**2023**
**£**
**3,976,009**
436,612|**Total funds**
**2023**
**£**
**3,976,009**
436,612|
|---|---|---|---|
|||
4,412,621||
|||**Total funds**
**2022**
**3,163,082**
496,281||
|||
3,659,363||
|||**2022**
**£**
799
**Total funds**
**2022**
**£**
104
**Total funds**
**2022**
**£**
444||
||||**2022**
**£**
103,431
87,868|
||||
191,299|
18
## **The Zahra Trust**
## **Notes to the financial statements (continued)**
## **Year ended 31 March 2023**
## **7. Expenditure on charitable activities**
|**7. a **
**Grants Payable**
Grant payable (see note 7.a)
Support Costs (see note 8)
Total
AHLULBAYT FOUNDATION
AL Jalila
ALULBAYT FOUNDATION
ANJUMAN-E-JAAFARIY
Ataba
Bilal Muslim Trust
IN AZZAHRAA WE T
J.B.H.T (Jabir b
KCLSU
SPIRITUAL JOURNEY
STANMORE JAFFERYS
Sufra
UNHCR
W A B I L
Wali ul asr lear
Zainabiya Welfare
Other Misc.
Ahlulbayt Foundation
Alulbayt Foundation
In Azzahraa We Trust Foundation
Aero Asian for hospital
AL Jalila Child Hosp
AL-HARAKA
Lady Fatemah Trust
Memorable buys
Impact Culture
Bilal Muslim Mission
Other Misc.|**2023**
**£**
4,866,679
345,701
5,212,380
**Grants to**
**Institutions**
**£**
57,409
399,885
216,402
307
17,048
79,240
3,718,665
69,242
1,500
30,000
4,000
4,000
10,015
5,000
200,045
2,000
15,780
4,830,538
**Grants to**
**Institutions**
**£**
25,000
118,867
1,817,806
31,744
118,975
5,000
3,754
7,004
9,552
4,130
10,353
2,152,185|**Grants to**
**Individuals**
**£**
36,141
36,141
**Grants to**
**Individuals**
**£**
41,931
41,931||**2022**
**£**
2,194,117
263,603|
|---|---|---|---|---|
|||||
2,457,720|
|||||**2023**
**£**
57,409
399,884
216,402
307
17,048
79,240
3,718,665
69,242
1,500
30,000
4,000
4,000
10,015
5,000
200,045
2,000
51,921|
|||||
4,866,679|
||||**Total Funds**
**2022**
**£**
25,000
118,867
1,817,806
31,744
118,975
5,000
3,754
7,004
9,552
4,130
52,284||
||||
2,194,116||
19
## **The Zahra Trust**
## **Notes to the financial statements (continued) Year ended March 2023**
|**8.**
**Support costs**
Support costs are allocated in line with the usage by each activity.
**9.**
**Net income**
Net income is stated after charging / (crediting)
**10. Governance cost**
**11. Auditors remuneration**
Auditor's remuneration
Office running costs
Administrative costs
Finance costs
Governance costs
Total
Office running costs
Administrative costs
Finance costs
Governance costs
Total
Fees payable to auditors (net of VAT)
Depreciation of tangible fixed assets
Exchange gain
Governance costs - audit fees
Governance costs - legal fees
Total|||**2023**
**£**
18,333
**Raising**
**Fund**
**2023**
**£**
4,178
100,793
4,760
5,503
115,234
**2023**
**£**
18,333
2,576
4,434
**2023**
**£**
22,000
13
22,013
**Raising**
**Fund**
**2022**
**£**
4,195
74,078
4,115
5,480
87,868|**Charitable**
**Activities**
**2023**
**£**
12,533
302,379
14,279
16,510
345,701
**Charitable**
**Activities**
**2022**
**£**
12,587
222,233
12,344
____16,439
263,603||**2022**
**£**
17,400
**Total**
**2023**
**£**
16,711
403,172
19,039
22,013
460,935
**2022**
**£**
17,400
2,684
-
**2022**
**£**
20,880
1,039
21,919
**Total**
**2022**
**£**
16,782
296,311
16,459
21,919
351,471|
|---|---|---|---|---|---|---|
||||||||
||||||||
||||||||
||||||||
20
## **The Zahra Trust Notes to the financial statements (continued) Year ended March 2023**
## **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
Number of staff|**2023**
**£**
283,537
27,551
1,893
312,981
**2023**
**No.**
10|**2022**
**£**
218,996
17,413
1,341|
|---|---|---|
|||237,750|
|||**2022**
**No.**
8|
No employee received employee benefits of more than £ 60,000 during the year (2022: 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 (2022: none). During the year, no Trustees received any benefits in kind (2022: none).
During the year, no Trustees received any reimbursement of expenses (2022: none).
## **Trustee expenses**
There were no trustees’ expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.
## **14. Tangible fixed assets**
|**14. Tangible fixed assets**|||||||
|---|---|---|---|---|---|---|
|**Cost**
At 1 April 2022
Additions
**At 31 March 2023**
**Depreciation**
At 1 April 2022
Charge for the year
**At 31 March 2023**
**Carrying amount**
**At 31 March 2023**
**At 31 March 2022**|**WIP**
**£**
37,471
510,388
547,859
-
-
-
547,859
37,471|**Freehold**
**property**
**£**
826,443
-
826,443
-
-
-
826,443
826,443|**Other**
**equipment**
**£**
8,308
358
8,666
8,095
143
8,238
428
213|**Computers**
**and Software**
**£**
7,522
643
8,165
3,593
1,509
5,102
3,063
3,929|**Fixtures**
**and fittings**
**£**
11,496
1,661
13,157
9,461
924
10,385
2,772
2,035|**Total**
**£**
891,240
513,050|
|||||||
1,404,290|
|||||||
21,149
2,576|
|||||||
23,725|
|||||||
1,380,565|
|||||||870,091|
## **15. Stock**
Shop stock
|**2023**
**£**
7,985|**2022**
**£**
3,533|
|---|---|
21
## **The Zahra Trust**
## **Notes to the financial statements (continued) Year ended March 2023**
|**16. Debtors**
**17. Creditors: amounts falling due within one year**
**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
Trade debtors
Prepayments
Other debtors
Bank loans and overdrafts
Accruals and deferred income
Social security and other taxes
Pension
Other creditors - Net Wages||**2023**
**£**
358,749
**2023**
**£**
27,954
111,818
246,931
**2023**
**£**
-
233
5,186
5,419
**2023**
**£**
27,954
22,476
11,535
463
-
62,428||**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|
||||||
||||||
||||||
## **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 and other post-retirement benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £ 1,893 (2022: £1,341)
22
## **The Zahra Trust**
## **Notes to the financial statements (continued) Year ended March 2023**
## **21. Analysis of charitable funds**
|**Unrestricted funds**
**Restricted funds**
Orphans, widows, poor and vulnerables
Khums
WASH
Education
Healthcare
Religious obligations
Emergency and relief
Poverty and hunger eradication
Syria Aid
Yemen Aid
Total
General funds
Foundation - designated fund|**At**
**1 April 2022**
**£**
-
343,721
646,258
-
-
-
586,648
-
-
140,252
1,716,879
3,757,694
**At**
**1 April 2022**
**£**
1,575,479
465,336
2,040,815|**Income**
**£**
330,498
609,348
205,803
283,226
57,255
331,532
558,441
139,040
18,527
306,775
2,840,445
4,428,296
**Income**
**£**
1,587,851
-
1,587,851|**Expenditure**
**£**
(2,599,494)
(677,259)
(122,738)
(300,182)
(435,271)
(1,063,872)
(10,726)
(2,838)
-
-
(5,212,380)
(5,662,099)
**Expenditure**
**£**
(449,719)
-
(449,719)|**At**
**Transfers**
**31 March 2023**
**£**
**£**
2,268,996
-
(275,810)
-
(600,000)
129,323
16,956
-
378,017
-
732,340
-
(600,000)
534,363
(136,202)
-
-
18,527
-
447,027
1,784,296
1,129,240
-
-
2,523,891
**At**
**Transfers**
**31 March 2023**
**£**
**£**
(2,312,822)
400,789
528,526
993,862
(1,784,296)
1,394,651|
|---|---|---|---|---|
||||||
Orphans, widows, poor and vulnerables
- Orphans: The charity provides the essentials including food, shelter, winter packs and clothing to orphans in in many religions 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. The fund is mostly used to
needy and vulnerables, widows, people on religious services etc. at the discretion of the trustees.
WASH: The charity runs projects in many regions to provide safe drinking water, sanitation and hygiene. During the current year extensive water sanitation programmes were executed in
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. Poverty and hunger eradication:
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.
23
**The Zahra Trust**
## **Notes to the financial statements (continued) Year ended March 2023**
## **Analysis of charitable funds – 31 March 2022**
## **Unrestricted funds**
|**Restricted funds**
Orphans, widows, poor and vulnerables
Khums
WASH
Education
Healthcare
Religious obligations
Emergency and relief
Pandemic
Syria Aid
Yemen Aid
Total
**22. Analysis of net assets between funds**
General funds
Foundation - designated fund
Tangible fixed assets
Current assets
Creditors less than 1 year
Creditors greater than 1 year
**Net assets**
**Analysis of net assets between funds – 31 March 2022**
Tangible fixed assets
Current assets
Creditors less than 1 year
Creditors greater than 1 year
**Net assets**|**At**
**1 April 2021**
**£**
-
596,090
438,897
-
29,957
-
-
51,892
38,566
339,994
1,495,396
2,746,003
**At**
**1 April 2021**
**£**
843,510
407,097
1,250,607|**Income**
**£**
303,332
591,773
215,121
1,656
70,419
375,862
592,549
15,820
-
-
2,166,532
3,660,710
**Income**
**£**
1,494,178
-
1,494,178
Unrestricted
Funds
**£**
1,380,565
435,263
(62,428)
(358,749)
1,394,651
Unrestricted
Funds
**£**
870,090
1,606,547
(67,146)
(368,676)
2,040,815
22|**Expenditure**
**£**
(489,623)
(844,142)
(7,760)
(32,780)
(149,236)
(581,682)
(5,901)
(77,268)
69,587
199,741
(2,457,719)
(2,649,018)
**Expenditure**
**£**
(191,299)
-
(191,299)
Restricted
Funds
**£**
1,129,240
-
1,129,240
Restricted
Funds
**£**
-
1,716,879
-
-
1,716,879|||
|---|---|---|---|---|---|
|||||||
||**1**|||||
|||||||
|||||||
|||||||
24
**The Zahra Trust Notes to the financial statements (continued) Year ended March 2022**
## **23. Capital commitments**
The Charity had no operating lease or capital commitments at the year-end.
## **24. Related parties**
One of the trustees paid donation in the sum of £3,640 during the year (2022: none).
## **25. Net debt reconciliation**
Cash **Net debt reconciliation - 2022**
Cash
|**At 1 April**
**2022**
**£**
3,218,620
**At 1 April**
**2021**
**£**
2,362,003|**Cashflow**
**£**
(1,667,521)
**Cashflow**
**£**
856,617|**Other non**
**Cash**
**changes**
**£**
-
**Other non**
**Cash**
**changes**
**£**
-|**At 31 March**
**2023**
**£**
1,551,099
**At 31 March**
**2022**
**£**
3,218,620|
|---|---|---|---|
25