DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Charity registration number: 1132783
Kanz ul Huda
Annual Report and Financial Statements
for the Year Ended 31 October 2022
DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 12 |
DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Reference and Administrative Details
Trustees Saqib Iqbal Mohammed Habib Anila Nazir Principal Office Unit 7-8 Saltley Industrial Centre Adderley Road Birmingham B8 1AW Charity Registration Number 1132783 Independent Examiner Nasir Rafiq Dua Governance Bradford Court 123-131 Bradford Street Digbeth Birmingham B12 0NS
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 October 2022.
Objectives and activities
Objects and aims
The governing scheme defines the charity's objects as being to:
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To promote the teachings and tenets of Islam, through worship, rites of passage, and provision of facilities for Islamic education in accordance with the teachings of the holy Qur’an and the Sunnah of the Prophet Muhammad (PBUH) as defined by imams and scholars of the Sunni Hanafi-Barelwi school of thought of the Asian subcontinent.
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To advance education for the public benefit by providing scriptural, cultural and spiritual educational activities as well as organising educational supplementary support and facilitating language classes.
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The prevention or relief of poverty or financial hardship anywhere in the world by providing or assisting in the provision of education, training, healthcare, food, basic necessities, clean water, shelter projects and all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient.
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To provide facilities for recreation or other leisure-time occupation to those in need by reason of their youth, age, infirmity, disability, financial hardship or social and economic circumstances.
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To promote knowledge and mutual understanding and respect of the beliefs and practices of different religious faiths to the public highlighting shared values and common interests.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
Kanz ul Huda have been providing many services for the benefit of the local community.
A foodbank was put into action following the covid-19 lockdown. This supported over 300 families and individuals that were in dire need as well as supporting other organisations and charities. We provided more than 8,000 free meals.
Our revival gatherings continue on a weekly basis. This is attended by more than 150 members of Kanz ul Huda from across the UK. The purpose for the gatherings is to motivate and spiritually enhance the community and to increase in Islamic knowledge.
We have also had other gatherings throughout the year. Monthly Ghiyarve Islamic gatherings which is attended by more than 250 people from the community. We also held Taraweeh prayer (night prayer) where attendance ranged from approx. 100 to 300 people. Finally, we held Eid prayers which was attended by approx. 300 people.
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Trustees' Report
Financial review
During the period of 2022, the Charity's total income was £489.9k (2021: £64.9k) of which £322k is for the new mosque project, £51.9k relates to Zakat donations and £17.2k is for Pakistan flood relief. Total expenditure incurred was £43.5k (2021: £2.2k). The carried forward reserves stand at £680k (2021: £233.7k).
Plans for future periods
Aims and key objectives for future periods
Kanz ul Huda future plans include the expansion of our current courses as well as introducing new courses and modules. We aim to increase our outreach programmes, focusing on youth development in our local community. We also aim to make renovations to our Wudhu facilities.
Structure, governance and management
Nature of governing document
The charity is an unincorporated charity, formed under a trust deed on the 23 October 2009. The Charity registered with the Charity Commission on the 19 November 2009.
Trustees are legally responsible for the governance and management of the charity. There are three founding Trustees that are appointed for life. Trustees are responsible for setting strategies and policies and ensuring these are implemented.
Risk management-
The charity's trustees have considered the major risks to which the charity is exposed and have reviewed potential risks. Systems and procedures have been put in place to manage the risks and to mitigate any adverse outcomes.
30 August 2023
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mohammed Habib Trustee
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial 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 these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
30 August 2023
Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mohammed Habib Trustee
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Kanz ul Huda
Independent Examiner's Report to the trustees of Kanz ul Huda
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 October 2022 which are set out on pages 6 to 12.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Kanz ul Huda you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Kanz ul Huda's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since Kanz ul Huda's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Kanz ul Huda as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Nasir Rafiq ICAEW
Dua Governance Bradford Court 123-131 Bradford Street Digbeth Birmingham B12 0NS 30 August 2023
Date:.............................
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Statement of Financial Activities for the Year Ended 31 October 2022
| Note Income and Endowments from: Donations and legacies Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 10 Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 10 |
Unrestricted funds £ 97,560 (35,472) (35,472) 62,088 62,088 209,064 271,152 Unrestricted funds £ 64,939 64,939 (2,243) (2,243) 62,696 62,696 146,368 209,064 |
Restricted funds £ 392,292 (8,025) (8,025) 384,267 384,267 24,632 408,899 Restricted funds £ - - - - - - 24,632 24,632 |
Total 2022 £ 489,852 (43,497) |
|---|---|---|---|
| (43,497) | |||
| 446,355 | |||
| 446,355 233,696 |
|||
| 680,051 | |||
| Total 2021 £ 64,939 |
|||
| 64,939 | |||
| (2,243) | |||
| (2,243) | |||
| 62,696 | |||
| 62,696 171,000 |
|||
| 233,696 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 10.
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
(Registration number: 1132783) Balance Sheet as at 31 October 2022
| Note Fixed assets Tangible assets 7 Current assets Cash at bank and in hand 8 Creditors: Amounts falling due within one year 9 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 10 |
2022 £ 8,523 674,028 (2,500) 671,528 680,051 408,899 271,152 680,051 |
2021 £ - 233,696 - 233,696 233,696 24,632 209,064 233,696 30 August 2023 |
|---|---|---|
The financial statements on pages 6 to 12 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mohammed Habib Trustee
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Notes to the Financial Statements for the Year Ended 31 October 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Kanz ul Huda meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Notes to the Financial Statements for the Year Ended 31 October 2022
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Fixtures and fittings | Straight line - 20% |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Notes to the Financial Statements for the Year Ended 31 October 2022
2 Income from donations and legacies
| Donations and legacies; Donations from individuals |
Unrestricted funds General £ 97,560 97,560 |
Restricted funds £ 392,292 392,292 |
Total 2022 £ 489,852 489,852 |
Total 2021 £ 64,939 |
|---|---|---|---|---|
| 64,939 |
- 3 Expenditure on charitable activities
| Consultancy fees Repairs and maintenance Charitable donations Office expenses Independent examiner fee Legal and professional fees Depreciation of fixtures and fittings Cleaning and waste removals Light, heat and power Sundry expenses Printing, postage and stationery |
Unrestricted funds General £ 12,860 8,382 8,025 4,422 2,500 2,380 2,131 1,262 715 459 361 43,497 |
Total 2022 £ 12,860 8,382 8,025 4,422 2,500 2,380 2,131 1,262 715 459 361 43,497 |
Total 2021 £ - - - 414 1,080 - - - 750 - - |
|---|---|---|---|
| 2,244 |
4 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements |
Unrestricted funds General £ 2,500 2,500 |
Total 2022 £ 2,500 |
|---|---|---|
| 2,500 |
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Notes to the Financial Statements for the Year Ended 31 October 2022
5 Independent examiner's remuneration
Examination of the financial statements
2022 £ 2,500
6 Taxation
The charity is a registered charity and is therefore exempt from taxation.
7 Tangible fixed assets
| 7 Tangible fixed assets |
||||
|---|---|---|---|---|
| Cost Additions At 31 October 2022 Depreciation Charge for the year At 31 October 2022 Net book value At 31 October 2022 8 Cash and cash equivalents Cash on hand Cash at bank 9 Creditors: amounts falling due within one year |
Furniture and equipment £ 10,654 10,654 2,131 2,131 8,523 2022 £ 2,788 671,240 674,028 |
Total £ 10,654 10,654 2,131 2,131 8,523 2021 £ - 233,696 |
||
| 2022 £ 2,788 671,240 674,028 |
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| 233,696 | ||||
| 9 Creditors: amounts falling due within one year |
|
|---|---|
| 2022 | |
| £ | |
| Accruals | 2,500 |
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DocuSign Envelope ID: A9A921C0-0E40-444A-8F47-F89EBB391454
Kanz ul Huda
Notes to the Financial Statements for the Year Ended 31 October 2022
10 Funds
| 10 Funds | ||||
|---|---|---|---|---|
| Unrestricted funds General Restricted funds Total funds Unrestricted funds General Restricted funds Total funds |
Balance at 1 November 2021 £ 209,064 24,632 233,696 Balance at 1 November 2020 £ 146,368 24,632 171,000 |
Incoming resources £ 97,560 392,292 489,852 Incoming resources £ 64,939 - 64,939 |
Resources expended £ (35,472) (8,025) (43,497) Resources expended £ (2,243) - (2,243) |
Balance at 31 October 2022 £ 271,152 408,899 |
| 680,051 | ||||
| Balance at 31 October 2021 £ 209,064 24,632 |
||||
| 233,696 |
11 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Current assets |
Unrestricted funds General £ 8,523 265,129 (2,500) 271,152 Unrestricted funds General £ 209,064 |
Restricted funds £ - 408,899 - 408,899 Restricted funds £ 24,632 |
Total funds 2022 £ 8,523 674,028 (2,500) |
|---|---|---|---|
| 680,051 | |||
| Total funds 2021 £ 233,696 |
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