## Unity Welfare Foundation
## Trustees’ report and Financial statements
For the year ended 31 March 2021
9 Whitwell Road, Plaistow London, E13 8BP www.uwf.org.uk Registered charity no: 1131928
## CONTENT
||Page|
|---|---|
|Legal and Administrative Information|1|
|About UWF|2|
|Structure: Governance and Management|3|
|Financial Review|5|
|Independent Examiner’s Report to the||
|Board of Trustees of UWF|7|
|Statement of Financial Activities|8|
|Balance sheet|9|
|Cash flow statement|10|
|Notes to the financial statements|11|
## LEGAL AND ADMINISTRATIVE INFORMATION
## **Status**
The trustees present their annual report and the financial statements for the year ended 31 March 2021 and confirm they comply with the Charities Act 2011, the trust dead and the Charities SORP 2015.
## **Board of Trustees**
Mohammed Inham Uddin Hussain Ahmed Saiful Alom Muhammed Shayesta Miah Shamim Uddin Ahmed Shah Muhammed Anas Muhammed Moinul Haque Choudhury Mohammed Azizur Rahman
## **Registered charity number: 1131928**
## **Registered Office**
9 Whitwell Road Plaistow London E13 8BP
## **Independent Examiner**
Alamgir Hossain
## **Bankers**
HSBC Bank Lloyds Bank NatWest Bank Barclays Bank Al Rayan Bank
Page 1 of 15
## ABOUT UWF
## **Our Objectives**
Our objectives are set to reflect our faith and community aims. Each year our trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review, the trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
Our dual aims remain to provide a facility where Muslims can worship and to provide a community facility. Our long-term ambition is to build economically self-sustainable organization and through our community facilities and activities help make a difference in our community.
## **Our mission**
Our mission is to build model communities by creating a tension-free family through sustainable development programs that tackle the root causes of poverty.
not permanently dependent on aid agencies for food and shelter.
In today’s world, females are vulnerable to exploitation of many kinds. In some areas, they resort to selling their body to support family and suffer from male dominance.
Creating successful communities is at the core of all our work UWF believes that a stable family unit is vital in ensuring the safety of vulnerable individuals and communities. UWF project aims to achieve this by providing assistance to couples to set up businesses and educating them in key social skills.
Since its inception, it has been the desire of UWF to work with other like-minded organisations. We are committed to ensuring that all donations reach those in needs, rather than being spent on administration, unless donor allow us to do so explicitly.
## **What we do**
Unity Welfare Foundation UWF set up in 2009. UWF aims to help the poor especially females to overcome the suffering endured due to natural disasters, and lack of life’s basic necessities with all needy people regardless of their race, religion, gender, nationality or political opinion. Initial projects have been in Bangladesh but the plan is to take this worldwide.
We work on strategic programmes to eliminate poverty that focus upon education, skills training, healthcare, income generation projects and creating sustainable livelihoods.
These projects ensure that individuals in general and females particular can have access to basic necessities and the skills necessary to generate an income, so they are
Page 2 of 15
## STRUCTURE: GOVERNANCE AND MANAGEMENT
## **Governing document**
Unity Welfare Foundation is constituted as a charitable trust registered with the Charity Commission in September 2009 under charity number 1131928.
## **Organisational structure**
The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefits. However, two trustees are also employed as staff to perform administrative and secretarial duties for the Charity.
The Board meets on a quarterly basis to review the organisation’s progress and strategy and maintain financial oversight. As a small organisation, there is a strong level of involvement of the Board in supporting UWF’s growth and development ranging from fundraising support to drafting policies and representing the organisation at external events.
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees for the purposes of charity law who served during the year and up to the date of this report are set out on page 1.
## **Trustees Responsibility Statement**
The trustees 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).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
## **Risk Management**
The Board of Trustees has a risk management strategy which comprises:
- A quarterly review of the risks the charity may face.
- The establishment of systems and procedures to mitigate those risks identified.
- The implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
The main risks identified by the Board of Trustees in this year include:
- Reputational risk of working with other organisations or individuals which may affect our credibility amongst our diverse range of stakeholders.
Page 3 of 15
- Changes to the law on charities and campaigning. The Board is staying up to date with developments and ensuring that UWF remains compliant with requirements.
Charities Act. Initially, new trustees work with an existing trustee assisting on particular activities and projects run by the charity. After satisfactory feedback from existing trustees, they are then given the task of leading a particular activity or project, reporting progress at trustees' meetings.
## **Recruitment and appointment of trustees**
The existing trustees are responsible for the recruitment of new trustees but in so doing the trustees seek the views and recommendations of both elders and community leaders. The trustees believe this approach ensures that new trustees are respected members of the faith and local communities and ensures that good relations are fostered between the Mosque and the people of the local community that we serve.
In selecting new trustees, we seek to identify people who regularly attend events and functions organised by the charity and are willing to volunteer to help in our broader community work. Potential trustees are invited to attend trustees' meetings as observers and are given more details of the charity's aims and activities and, if all agree, they are then proposed as new trustees at the subsequent trustees' meeting. This process allows due consideration of the person's eligibility, personal competence, specialist knowledge and skills.
## **Induction and training of trustees**
## **Volunteers recruiting procedure**
Unity Welfare Foundation’s work would not be possible without the large numbers of volunteers who get involved in the day-today office activities as well as supporting at events and other activities. Volunteers are an important resource in both our faith and community work. Volunteers are involved in most of our faith and community. We encourage all members of our foundation to be involved in voluntary activities and to share their skills with others. All those volunteers working with projects involving children or other vulnerable groups are CRB checked.
## **Public benefit**
The Board of Trustees confirm that they abide by the Charity Commission’s general guidance on public benefit complying with Section 4 of the Charities Act 2011 to have due regard to public benefit in pursuance of its objectives and activities.
Following appointment, new trustees are introduced to their new role and given copies of the trust deed and a guide to the policies and procedures adopted by our charity. A number of publications from the Charity Commission are also provided including the guidance on charities and public benefit and on the advancement of religion for the public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the
Page 4 of 15
## FINANCIAL REVIEW
The financial statements have been prepared in accordance with the accounting policies set out on page 8 to 15 of the attached Financial Statements and comply with applicable laws and requirements of the ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ (SORP) issued by the Charity Commission.
The trustees have identified no material uncertainties that may cast a doubt on the ability of the charity to continue as a going concern.
## **Income**
The Charity’s total income for the year was £111.6k (2020: £81.9k), an increase of 36% compared to the previous financial year. The donation income has decreased by 21%, but the rental income has increased by 38%.
**----- Start of picture text -----**
Three years’ income trend (£000)
144
112
82
2019 2020 2021
**----- End of picture text -----**
**----- Start of picture text -----**
Income
Investment and
other income
27%
Donations
39%
Rent income from
properties
34%
**----- End of picture text -----**
## **Expenditure**
Our total expenditure for the year ended 31 March 2021 was £145.9k (2020: £82.6k). The expenditure on charitable objective was £45.9k (2020: £75k). Expenditure on investment properties was £84.3k.
**----- Start of picture text -----**
Programme Fundraising
31% 11%
Property
Management
58%
**----- End of picture text -----**
Page 5 of 15
## **Net assets**
The balance sheet for the charity shows a balance of net assets £987.6k (2020 £1m), representing no changes in the working capital and reserves during the financial year.
enable UWF to carry out its essential projects. The reserve policy ensures, as far as possible, the sustainability of charitable activities across various sectors.
## **Financial risk**
The Board of Trustees have the overall responsibility for ensuring the Charity has an appropriate system of controls, financial and otherwise, across the entire organisation in order to provide reasonable assurance that:
- Its assets are safeguarded against unauthorised use or disposition,
- Proper records are maintained and that financial information is reliable,
The policy aims to have sufficient free reserves to enable UWF to cope with fluctuations and to hold at least the equivalent of three months’ running cost of (£50k). The total reserves on 31 March 2021 were £986k (2020: £1m). In addition, Trustees designated £1.3k as UWF’s fixed assets.
The accounts of the Charity was approved by the Board of Trustees on 08 December 2021
- The Charity complies with relevant laws and regulations.
## **Tangible fixed assets**
The changes in tangible fixed assets during the period are shown in note 7 to the financial statements.
Hussain Ahmed Chairman
## **Investment policy**
The Investment Policy of the Charity is to invest its surplus funds and secure loan (Quard Hasana) from local community to invest in properties those will generate income for the Charity. The profit generates from investment properties are utilized in the charitable purpose.
## **Liabilities**
The Charity had an outstanding balance of £1.78m of Quard Hasana loan from local community and bounce back loan from HSBC £50k
**----- Start of picture text -----**
Saiful Alom
Trustee
**----- End of picture text -----**
## **Reserve policy**
The Trustees recognise the need to hold sufficient reserves to allow protection of core activities in the event of any income shortfalls to implement long-term strategic programmes and
Page 6 of 15
## INDEPENDENT EXAMINER’S REPORT TO THE BOARD OF TRUSTEES OF UWF
I report on the accounts of the Unity Welfare Foundation for the year ended 31[st] March 2021, which are set out on pages 8 to 15.
the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
## **Respective responsibilities of Trustees and Examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(1) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
## **It is my responsibility to:**
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
In the course of my examination, no matter has come to my attention:
1. which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with Section 130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with general Directions given by the Charity Commission.
3. this report is prepared solely for the use of Unity Welfare Foundation only. No responsibility is assumed to any other person.
An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and
Alamgir Hossain
Date: 08 December 2021
Page 7 of 15
## **STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2021**
|||**Unrestricted**|**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
|||**Funds**|**Funds**|**2021**|2020|
||**Notes**|£|£|**£**|£|
|**INCOME**||||||
|_Voluntary income:_||||||
|Donations|_2_|43,123|-|**43,123**|54,273|
|Income from investment properties|3|38,100|-|**38,100**|27,600|
|Other income|4|30,340|-|**30,340**|14|
|**TOTAL INCOME**||**111,563**|**-**|**111,563**|81,887|
|**EXPENDITURE**||||||
|**Costs of raising funds:**||||||
|Fundraising cost||15,642|-|**15,642**|7,082|
|Expenditure on investment properties||84,358|-|**84,358**|-|
|**Expenditure on charitable activities:**||||||
|UK Programme||45,887|-|**45,887**|65,099|
|Overseas Aid||-|-|**-**|10,402|
|**TOTAL EXPENDITURE**|5|**145,887**|**-**|**145,887**|82,583|
|**Net income/(expenditure) and net**||||||
|**movement in funds for the year**||**(34,324)**|**-**|**(34,324)**|(696)|
|**Reconciliation of funds:**||||||
|Total Funds brought forward|11|1,021,928|-|**1,021,928**|1,022,624|
|**Total funds carried forward**||**987,604**|**-**|**987,604**|1,021,928|
The results for the year shown above all derive from continuing operations.
All recognised gains and losses are reflected in the Statement of Financial Activities and therefore no separate statement of total recognised gains and losses has been presented.
The notes on pages 11 to 15 form an integral part of these financial statements.
Page 8 of 15
## **BALANCE SHEET As at 31 March 2021**
|**Notes**
**Fixed assets**
Tangible assets
7
Investment properties
8
**Current assets**
Debtors
Cash at bank and in hand
**Creditors**: amounts falling due within one year
9
**Total assets less current liabilities**
**Creditors**: amounts falling due after more than one year
10
**Net assets**
**The funds of the charity:**
Unrestricted income funds
- General fund
11
- Designated fund
11
Restricted income funds
**Total charity funds**|**2021**
**£**
**1,371**
**2,604,143**
**2,605,514**
**-**
**219,610**
**219,610**
**(8,290)**
**2,816,834**
**(1,829,230)**
**987,604**
**986,233**
**1,371**
**-**
**987,604**|2020
£
1,921
1,689,079|
|---|---|---|
|||1,691,000
-
192,658|
|||192,658
(1,500)|
|||1,882,158
(860,230)|
|||1,021,928|
|||1,020,007
1,921
-|
|||1,021,928|
The financial statements were approved by the Trustees on: 08 December 2021 and signed on its behalf by:
**Hussain Ahmed Saiful Alom Chairman Trustee**
The accompanying notes on pages 11 to 15 form an integral part of these Financial Statements.
Page 9 of 15
## **CASHFLOW STATEMENT For the year ended 31 March 2021**
|**Notes**
**Reconciliation of operating gain to net**
**cash inflow from operating activities**
Operating (loss) / gain
Add: Depreciation
Decrease / (increase) in debtors
(Deccrease) / increase in creditors
**Net cash inflow /(outflow) from operating activities**
**Cash flow statement**
Net cash inflow /(outflow) from operating activities
Net investment in properties
Payments to aquire tangible fixed assets
**Increase / (decrease) in cash in the year**
13
**Reconciliation of net cash flow to movement in net funds**
Increase / (decrease) in cash in the year
Net funds at 1 April 2020
**Net funds at 31 March 2021**|**2021**
**£**
**(34,324)**
**550**
**-**
**975,790**
**942,016**
**942,016**
**(915,064)**
**-**
**26,952**
**26,952**
**192,658**
**219,610**|2020
£
(696)
550
-
303,500|
|---|---|---|
|||303,354|
|||303,354
(350,348)
-|
|||(46,994)|
|||(46,994)
239,652|
|||192,658|
Page 10 of 15
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021**
## **1 Accounting policies**
## **a) Basis of accounting**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounting policies below have been adopted for material items.
## **b) Incoming resources**
Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when UWF is entitled to the receipt and the amount can be measured with reasonable certainty. Gifts in Kind for which UWF accepts full responsibility for distribution are included in income at their market value when it is distributed and under Charitable Activities at the same value and time. The value of services provided by volunteers has not been included.
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
## **c) Resources expended**
Resources expended are recognised in the year in which they are incurred.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.
## **d) Tangible fixed assets and depreciation**
Non-programme expenditure of more than £50 per item for buildings, equipment and leasehold improvements is capitalised at cost. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Leasehold properties Straight line over the life of the lease Freehold properties 5% straight line Computers and software 25% straight line Fixtures and fittings 10% straight line Office equipment 15% straight line Motor vehicles 15% straight line
## **e) Funds**
General funds are unrestricted funds which are necessary for the proper functioning of the charity and other funds available for use at the discretion of the trustees in furtherance of the charity’s objectives.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.
Restricted funds are funds which are subject to specific restrictions as imposed by the donor or nature of the appeal.
## **f) Taxation**
As a registered charity, UWF is exempt from taxation of income and gains to the extent these are applied to charitable objectives.
Page 11 of 15
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021**
## **2 Donations**
|||||||
|---|---|---|---|---|---|
|**2**|**Donations**|||**Total**|Total|
|||Unrestricted|Restricted|**2021**|2020|
|||£|£|**£**|£|
||Collection and Donation|22,087|-|**22,087**|27,983|
||Friday prayer collection|13,290|-|**13,290**|7,055|
||School collection|7,746|-|**7,746**|19,235|
|||43,123|-|**43,123**|54,273|
|**3**|**Rent income from investment properties**|||**Total**|Total|
|||Unrestricted|Restricted|**2021**|2020|
|||£|£|**£**|£|
||25 Carmen St|3,000||**3,000**|6,000|
||29 Hunter Road|13,500||**13,500**|-|
||9 Whitwell Rd|21,600||**21,600**|21,600|
|||38,100|-|**38,100**|27,600|
|**4**|**Other income**|||**Total**|Total|
|||Unrestricted|Restricted|**2021**|2020|
|||£|£|**£**|£|
||Bank deposit profit|-|-|**-**|14|
||Furlough grant income|30,340|-|**30,340**|-|
|||30,340|-|**30,340**|14|
Page 12 of 15
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021**
|**5**|**Analysis of expenditure on charitable**|**activities**|||**2021**|2020|
|---|---|---|---|---|---|---|
|||Direct|Staff|Support|**Total**|Total|
|||costs|costs|costs|**costs**|costs|
|||£|£|£|**£**|£|
||**Cost of generating funds**|10,836|4,475|331|**15,642**|7,082|
||**Expenditure on investment properti**|77,485|6,399|474|**84,358**|-|
||**Charitable activities**||||||
||UK Programme|12,743|30,860|2,284|**45,887**|65,099|
||Overseas Aid|-|-|-|**-**|10,402|
||**Total Charitable activities**|12,743|30,860|2,284|**45,887**|75,501|
||**Total expenditure**|**101,064**|**41,734**|**3,089**|**145,887**|82,583|
## **5.1 Analysis of governance and support costs**
|**Governance cost**
Professional and Legal fee
**Support costs**
Telephone
Bank charge
General expenses
Depreciation
**6**
**Staff cost and number of employees**
The average monthly numbers of
employees in the UK during the year were**:**
Permanent
Volunteer (head count)
**Employment costs**
Gross Pay
Employer's national insurance|**2021**
**£**
**1,500**
**1,500**
**751**
**-**
**288**
**550**
**1,589**
**3,089**
**2021**
**Number**
**2**
**8**
**2021**
**£**
**41,734**
**-**
**41,734**|2020
£
1,500|
|---|---|---|
|||1,500
642
-
2,751
550|
|||3,943|
|||5,443|
|||2020
Number
2
11
|
|||2020
£
36,411
-|
|||36,411|
Salary paid to two staff are also trustees of the Charity. No employee earned more than £60,000 during the year (2020: None).
Page 13 of 15
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021**
## **7 Tangible fixed assets**
|**Cost**
At 1 April 2020
Additions
Disposals
As at 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
Disposals
As at 31 March 2021
**Net book values**
**At 31 March 2021**
**NBV at 31 March 2020**
**8**
**Investment properties**
9 Whitwell Rd, E13 8BP
Lord Stanley, 25 Carmen St, E
Bexhill Islamic Centre
Birmingham Bilal Academy
29 Hunter Rd
191 Dersingham Avenue E12 5 QJ
69 Oval Rd RM10 9ET
115 School Rd, Land
**9**
**Creditors: amounts falling due within one year**
Salary Payable
Other creditors|**Computers**
**& software**
£
390
-
-
**390**
390
-
-
**390**
**-**
**-**|**Fixtures &**
**fittings**
£
5,495
-
-
**5,495**
3,574
550
-
**4,124**
**1,371**
**1,921**
**2021**
**£**
**326,434**
**497,354**
**397,364**
**117,579**
**350,348**
**581,600**
**243,900**
**89,564**
**2,604,143**
**2021**
**£**
**6,790**
**1,500**
**8,290**|**Total**|
|---|---|---|---|
||||£
5,885
-
-|
||||**5,885**|
||||3,964
550
-|
||||**4,514**|
||||**1,371**|
||||**1,921**|
||||2020
£
326,434
497,354
397,364
117,579
350,348
-
-
-|
||||1,689,079|
||||2020
£
-
1,500|
||||1,500|
Page 14 of 15
## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021**
## **10 Creditors: amounts falling due in more than one year**
|**10**
**Creditors: amounts falling due in more than one year**
**Qard Hasanah**
Opening balance
Add: Receipt during the year
Less: Payment during the year
**Outstanding balance of Qard Hasana**
Bounceback Loan from HSBC
**11**
**Unrestricted fund balances**
**As at**
**Incoming**
**01-Apr-20**
**Resources**
**Unrestricted funds**
**£**
**£**
General fund
1,020,007
111,563
Designated fund (Fixed assets)
1,921
-
**Total funds**
**1,021,928**
**111,563**
**12**
**Net assets by funds**
Tangible fixed assets
Net assets
**13**
**Analysis of change in net funds**
Cash at bank and in hand|**Resources**
**Expended**
**£**
(145,887)
-
**(145,887)**
**Unrestricted**
**£**
1,371
987,604
**988,975**
**Opening**
**balance**
**1 April**
**2020**
**£**
192,658|**2021**
**£**
**860,230**
**988,500**
**(69,500)**
**1,779,230**
**50,000**
**1,829,230**
**Transfers**
**£**
550
(550)
**-**
**Restricted**
**£**
-
-
**-**
**Cash flow**
**movement**
**£**
26,952|2020
£
556,730
565,730
(262,230)|
|---|---|---|---|
||||860,230
-|
||||860,230|
||||**As at**
**31-Mar-21**
**£**
986,233
1,371|
||||**987,604**|
||||**Total**
**£**
1,371
987,604|
||||**988,975**|
||||**Closing**
**balance**
**31 March**
**2021**
**£**
219,610|
Page 15 of 15