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2023-03-31-accounts

Charity registration number 1134513

Company registration number 07055355 (England and Wales)

YUSUF ISLAM FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

YUSUF ISLAM FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs Fawziah Islam
Mr Yusuf Islam
Dr Abdulkarim Khalil
Mr Shabir Randeree
Mr Muhammad Yoriyos Adamos
Foundation Manager Mr Nathan McKenzie
Charity number 1134513
Company number 07055355
Registered office The Maqam Centre
Tiverton Road
London
NW10 3HJ
Auditor AMS Accountants Corporate Ltd
Chartered Accountants
Floor 2
9 Portland Street
Manchester
M1 3BE
Bankers HSBC Bank UK PLC
50-52 Kilburn High Road
London
NW6 4HJ
Solicitors Stone King LLP
Boundary House
91 Charterhouse Street
London
EC1M 6HR
Investment managers Al Rayan Bank
Whitechapel Branch
97-99 Whitechapel Road
London
E1 1DT

YUSUF ISLAM FOUNDATION

CONTENTS

Page
Trustees' report 1 - 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 30

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's objects are the furtherance of the religion of Islam and the furtherance of Islamic Education in accordance with the teachings of the Holy Qur'an and the Sunnah of the Prophet Muhammad. The general charitable activities of the charity are education/training, community development, the prevention or relief of poverty, religious activities, and arts/culture/heritage. These are delivered via grants to both individuals and organisations, acting as an umbrella body, and providing buildings, facilities and open space.

In order to achieve the objectives, the charity continues to allow use of its two school properties by Islamia Schools Limited and continues to assess the use of other assets. The charity is also continuing with the development of the Maqam Centre where the ground floor is now leased to a third party and open to the public, with the fit out of the upper floors to follow.

As part of the charity's activities, grants are made to individuals and institutions that share similar charitable objectives or activities. This is subject to due diligence and in accordance with the objects of the charity.

The group funds its activities by generating income in the form of investment income, school fees, and donations. The management structure ensures that the levels of income and expenditure are closely monitored and reported back to the trustees on a quarterly basis.

The charity operates a number of subsidiaries, details of which can be found in notes 1 and 17. The school operations are operated through Islamia Schools Limited, a registered charity controlled by the Yusuf Islam Foundation.

Public benefit

The trustees confirm that they have complied with their duty under Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit when delivering the aims and objectives of the charity, and in planning future activities.

The prevention or relief of poverty and hunger continues to be a key component of the Foundation’s public benefit activities through its project, Peace Train, which includes the delivery of food banks, breakfast clubs, emergency food and disaster relief, and the installation of solar water and energy schemes.

The charity also delivers public benefit through the provision of its school properties to Islamia Schools Limited, the rent-free provision of facilities to the Islamia Primary School, its grant making programme, the principal beneficiaries of which are individuals and institutions that share similar charitable objectives and activities to the Foundation, and its scholarship scheme, which benefits students at the educational institutions under the charity's umbrella.

The Maqam Centre, when completed, will be a focal point for the charity’s future community and cultural activities and a natural expression of public benefit.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Reserves and Investment Policy

The trustees have determined that, after taking into account fixed asset balances, the charity should hold reserves that equate to at least three months of expenditure. At the year to March 2023, the charity’s reserves covered almost 6 months of expenditure.

The trustees have considered the most appropriate policy for investing the funds of the charity to ensure the Foundation has sufficient uncommitted and readily accessible assets to cover overheads or any unanticipated shortterm need.

This includes short-term and low-risk cash investments, which are included in the balance sheet of the charity as current asset investments, and longer-term property investments.

The Foundation's property investment assets include both residential and commercial properties in central London, which are managed by external third party property management agents and generate rental income to fund the charitable activities of the group. Internal quarterly reports to the trustees provide updates on these investment assets.

Strategies for achieving aims and objectives

Going Concern

The trustees remain confident that they would be able to continue the activities of the charity in the event of a significant reduction in funding. The charity’s unrestricted funds are £22m and the cash balance of the group is approximately £2.5m. The trustees continue to invest in, and benefit from, the income-generating investment properties the charity holds but remain cognisant that property related income relies on the payment of rent from commercial and residential tenants. As part of their going concern considerations, trustees exercise judgement and flexibility with respect to rental income arrangements and did maintain a repayment plan with one of the charity’s commercial tenants during the reporting period to recover outstanding rent arrears arising from the COVID-19 period. This arrangement ceased during the reporting period, with all arrears recovered.

The trustees are also aware of the benefit of future music publishing contractual opportunities available to Firecat Music Limited, its wholly-owned trading subsidiary. Maqamat Limited will have potential trading income from the Maqam Centre upon completion of the upper floors, with construction expected to commence in 2024/25.

Trustees continue to closely monitor student numbers within the context of its going concern considerations, with weaker enrolment numbers being offset through the maintenance of a budgetary savings drive. The charity has also increased its marketing to boost enrolment numbers, including the development of new websites for the schools, and student numbers are forecast to increase in the 2023/24 academic year. Additionally, to ease the financial burden on parents/guardians and increase the recoverability of fee income, the schools maintained amended terms and conditions to allow greater flexibility to enable fee payment over an extended period.

Based on a review of cashflows and forecasts covering a year from the date of this report, the trustees are satisfied that the charitable company and group is a going concern and accordingly they continue to prepare the financial statements on a going concern basis.

Related parties

Transactions between related parties during the year, by virtue of shareholding or common trustees, are disclosed in the notes to the financial statements.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Strategic report

The principal objectives for the year were:

The Yusuf Islam Foundation Group has committed significant funds to the running of its highly successful secondary schools in London, through its subsidiary Islamia Schools Limited. The effective running of Islamia Girls School and Brondesbury College has ensured that both schools remain among the most academically successful educational institutions in London. The activities of the charity provided for some 213 students across both secondary schools.

Achievements and performance

Significant activities and achievements against objectives

During the reporting period, the Foundation, through its Peace Train project, worked with carefully selected, local delivery partners to provide hunger relief through the delivery of feeding programmes in the UK, Afghanistan, Lebanon, Pakistan, Turkey and Yemen.

The charity’s relief activities also included responding to the devastating earthquake in Turkey in early 2023 through the delivery of provisions including fuel, food, water, blankets, bedding and emergency clothing, and the provision of winter relief materials to families in Afghanistan. Collectively, these efforts delivered in excess of 1.2 million meals to those in need, including over 200,000 meals in the UK.

The Foundation also delivered a solar powered water and energy scheme in Pakistan and commenced community development projects in the UK and Greece, including the planned installation of a playground at Shaftesbury Park Primary School (UK) and a Café / Safe Space for refugees (Greece), delivered in partnership with Goodwill Caravan.

COVID-19 had an impact on the delivery of education during the year. The charity, together with its subsidiary, Islamia Schools Limited, adapted its systems as necessary so that the schools were able to continue to offer lessons to all students as per the regular timetable. Both secondary schools are now presently running as normal.

The most recent GCSE results show that, once again, both the secondary schools have performed excellently. 100% of students at Islamia Girls School attained five or more 9 to 4 grades and 88% of students at Brondesbury College achieved five or more 9 to 5 grades. To explain: the bottom of a grade 7 is comparable to the bottom of the old GCSE grade A, and the bottom of a new grade 4 is comparable to the bottom of the old GCSE grade C.

Brondesbury College received a scheduled compliance visit from the Independent Schools Inspectorate (ISI) between 25 to 26 January 2023. The inspection confirmed that the school meets the standards of the Education (Independent School Standards) Regulations 2014. In particular, the visit highlighted that the standards in relation to the quality of education and in respect of the students' spiritual, moral, social, and cultural development are met.

Islamia Girls School received a follow-up Ofsted inspection visit on 12 July 2022, which confirmed that the school meets all of the independent school standards that were checked during the inspection. A report was published to this effect on 3 October 2022. The school was inspected again by Ofsted just outside of the reporting year from 4 to 6 July 2023. Islamia Girls School was awarded Outstanding ratings in terms of student behaviour and attitudes as well as their personal development and the school was awarded a Good rating for the quality of education and for leadership and management. The overall effectiveness was rated as Good.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

In light of the COVID-19 pandemic and the impact it had on all sectors including on our charity and our schools, the trustees and senior management within the organisation have worked to ensure that our structures allow us to maintain parallel systems whereby under similar circumstances in the future our schools can continue to provide a seamless teaching and learning experience to all students.

As a mainstay of the Foundation's activities, scholarship grants of £40,460 (2022: £47,302), which are provided on the basis of need and merit, were awarded to students at the secondary schools.

The Foundation's Maqam Centre promises to be a landmark addition to London's multicultural landscape and is currently providing health, fitness and social spaces that are open to the public under the management of Swimming Nature, a local business with over twenty years’ experience in the swimming and leisure industry. Efforts to deliver the fit out of the upper floors, has been paused pending consideration of a design review.

The Foundation continues to manage commercial and residential investment properties, the income from which helps to fund the Foundation’s charitable activities. Managing agents have been appointed to oversee the various investment properties and conduct rent reviews on a periodic basis.

Financial review

The Statement of Financial Activities on page 11 shows a net group deficit of £255,452 (2022: £241,983).

The trustees consider the state of the charity's affairs to be satisfactory.

At the year end, overall reserves totalled £21,966,345 (2022: £22,251,797), with £20,592,229, (2022: £20,558,112) relating to fixed asset balances, and £173,827 being restricted (2022: £194,988). The charity retains reserves as a contingency against operational risks and for investment in strategic projects such as the development of the Maqam Centre and refurbishment of the school properties.

The principal funding sources of the group are from investment income (including rental income), school fees paid by parents of students, and donations. Royalties paid to the subsidiary, Firecat Music Limited, are paid as advances when new publishing deals are negotiated and signed. All expenditure in the year has been on the furtherance of education and community initiatives, including relief of poverty, through spending on the school operations, grants given for scholarships or donations to other charities and organisations that carry out similar activities.

Principal risks and vulnerabilities

The trustees acknowledge their responsibility to manage the risks faced by the charity. They have identified and given due consideration to the principal risks to which the charity may be exposed and are satisfied that systems are in place to mitigate those risks. Nevertheless, trustees continue to enhance the charity’s control systems through the planned implementation of a formal requirement for the comprehensive and periodic review of the charity’s risk and policies registers, and associated policies, and completion of an independent review of the charity’s risk management practices.

The integrity of the Foundation’s reputation is a significant risk and asset of the charity, and trustees are confident that sufficient due diligence procedures, media monitoring and management expertise exists to enable the charity’s reputation to remain strong and that it is regarded as a trusted and effective organisation and partner.

Trustees are satisfied that the value held in the accounts does not require any adjustments but, in line with established practice, will continue to seek regular and independent estimated valuations of the investment properties in this regard. The charity’s property assets are managed by external property management agencies and regular reviews of the portfolio, within the context of the property rental market, are undertaken to ensure that it maximises its potential.

Following the impact of COVID-19 on the charity’s operations, including income generation from its investment property portfolio and its educational activities, the charity has incorporated this type of risk into its risk identification, assessment and mitigation procedures. The trustees will consider future opportunities to increase the investment portfolio, particularly residential assets, and will also review the successful adoption of payment plans for its commercial tenants, and amended school fee payment schedules, during the COVID-19 period, deploying these mechanisms again in the future, as required.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

A review of the charity's structure concluded during the reporting period, which resulted in the appointment of a new Foundation Manager.

The charity is planning to continue the work of developing the Maqam Centre with the opening of the ground floor having already taken place. Following the opening of all floors of the Maqam Centre it is expected to be a very busy and exciting period in the delivery of the charity's activities. Funds are currently required to complete the upper floors and fundraising is planned for that purpose. The trustees are presently working with a leading firm of architects to appraise the development potential of several property assets.

Other future activities include the continued operations of the schools, including further enhancement and expansion of the facilities on the main purpose built school site on Salusbury Road NW6, enlarging our scholarship programme and working in co-operation with other charities for the public benefit. The charity will also continue with activities relating to the prevention or relief of poverty.

Structure, governance and management

The charity is a company limited by guarantee and incorporated under the Companies Act 2006. The company’s governing document is its Articles of Association. Yusuf Islam Foundation is the parent entity of the group. Its subsidiaries are: Islamia Schools Limited (Charity no. 1134516. Company no. 07055378), Firecat Music Limited (Company no. 01822129), formally known as Salafa, and Maqamat Limited (Company no. 07183033).

The charity is governed by a Board of Trustees, who are also directors for the purpose of company law. The Trustees are responsible for the strategic direction, policy and overall governance of the charity. The implementation of strategy, once agreed, and the day-to-day running and management of the charity’s activities is delegated to senior management.

During the reporting period, no changes were made to the charity’s governance structure or trustees. No trustees had any beneficial interest in the charity and no remuneration or expenses of trustees was paid by the charity.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mrs Fawziah Islam Mr Yusuf Islam Dr Abdulkarim Khalil Mr Shabir Randeree Mr Muhammad Yoriyos Adamos

Recruitment and appointment of trustees

The trustees are in regular communication and meet to discuss delivery of the objectives and strategic matters of the charity. A management structure is in place to provide controls and ensure the efficient and successful running of the charity. The trustees may appoint by ordinary resolution a person who is willing and eligible to be a trustee. Trustee vacancies are usually filled by carrying out a skills audit to ensure diversity and highlight the qualities and skills the charity needs. All members of the company are entitled to receive notice of any resolution to be put to a general meeting to appoint a trustee.

Trustees maintain a good working knowledge of charity and company law and best practice. Trustees are provided with training in order to carry out their duties to the best of their abilities and in the best interests of the charity. Training and induction is provided on an ad hoc basis for all trustees as necessary. An information pack was issued to each trustee containing internal reports, the latest Charity Commission guidance on a range of matters as well as updated editions of the charity's policies. This pack is routinely updated with new guidance.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

During the year, responsibility for managing external relationships, new initiatives, and for managing governance and relationships with the board formed part of the responsibility of the Executive Director, until March 2023 when the Foundation Manager was appointed.

The management structure ensures that the levels of income and expenditure are closely monitored and reported back to the trustees on a regular (at least quarterly) basis. A Scholarship Funding Board meets at least once a year to approve scholarship applications.

Professional development during the year at trustee and senior management level was maintained to keep up to date with the latest legislation and developments in the charity and education sectors. The Foundation's senior managers are appraised by trustees who are not involved in the day to day running of the organisation.

The Foundation is constantly reviewing its policies and procedures and has continued to work with advisers during the year and also benefits from internal assessments, including self-assessments.

Arrangements for Setting Pay

The trustees consider that conditions of service are set at a decent level and in line with medians in the charity sector, and compliant with legislation. All salary recommendations are approved by the trustees. A modest pension scheme in line with established legislation is in place.

Key management remuneration

Key personnel remuneration is determined with reference to publicly available data and the advice of independent recruitment consultants. The former CEO, Foundation Manager and the Executive Director were/are remunerated through the Yusuf Islam Foundation.

YUSUF ISLAM FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Yusuf Islam Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the 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, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that AMS Accountants Corporate Ltd be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report, including the strategic report, was approved by the Board of Trustees.

Mrs Fawziah Islam

Trustee

22 November 2023

YUSUF ISLAM FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF YUSUF ISLAM FOUNDATION

Opinion

We have audited the financial statements of Yusuf Islam Foundation (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the statement of cash flows and notes to the financial statements, including 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:

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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

YUSUF ISLAM FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF YUSUF ISLAM FOUNDATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees' 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:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non -compliance with laws and regulations related to pensions legislation, UK tax legislation and UK employment legislation, 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 the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or manipulate expenditure and management bias in accounting estimates. Audit procedures performed by the audit engagement team included:

• Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;

There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transaction reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

YUSUF ISLAM FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF YUSUF ISLAM FOUNDATION

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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.

Mr David Clegg BFP FCA (Senior Statutory Auditor) for and on behalf of AMS Accountants Corporate Ltd

22 November 2023

Chartered Accountants Statutory Auditor

Chartered Accountants Floor 2 9 Portland Street Manchester M1 3BE

YUSUF ISLAM FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
3,407
Charitable activities
4
1,643,351
Other trading activities
5
8,114
Investments
6
427,923
Other income
7
39,088
Total income
2,121,883
Expenditure on:
Raising funds
8
166,935
Charitable activities
9
2,189,239
Total expenditure
2,356,174
Net expenditure and
movement in funds
(234,291)
Reconciliation of funds:
Fund balances at 1 April 2022
22,056,809
Fund balances at 31 March
2023
21,822,518		 Restricted
funds
2023
£
442,182
-
-
-
-
442,182
-
463,343
463,343
(21,161)
194,988
173,827		 Total
Unrestricted
funds
2023
2022
£
£
445,589
407,730
1,643,351
1,600,632
8,114
124,524
427,923
384,971
39,088
70
2,564,065
2,517,927
166,935
244,468
2,652,582
2,529,496
2,819,517
2,773,964
(255,452)
(256,037)
22,251,797
22,312,846
21,996,345
22,056,809		 Restricted
funds
2022
£
14,054
-
-
-
-
14,054
-
-
-
14,054
180,934
194,988		 Total
2022
£
421,784
1,600,632
124,524
384,971
70
2,531,981
244,468
2,529,496
2,773,964
(241,983)
22,493,780
22,251,797

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

YUSUF ISLAM FOUNDATION

GROUP BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
15
Investment property
16
Investments
17
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
21
Net assets
Income funds
Restricted funds
22
Unrestricted funds
23
Net assets		 Group
2023
£
13,612,229
6,980,000
-
20,592,229
-
133,819
2,533,017
2,666,836
(1,131,420)
1,535,416
22,127,645
(131,300)
21,996,345
173,827
21,822,518
21,996,345		 2022
£
13,578,112
6,980,000
-
20,558,112
29,532
382,782
2,527,843
2,940,157
(1,142,472)
1,797,685
22,355,797
(104,000)
22,251,797
194,988
22,056,809
22,251,797		 Charity
2023
£
13,667,434
6,980,000
200
20,647,634
-
163,692
1,687,484
1,851,176
(432,491)
1,418,685
22,066,319
-
22,066,319
173,690
21,892,629
22,066,319		 2022
£
13,674,156
6,980,000
200
20,654,356
29,532
168,340
1,690,519
1,888,391
(415,074)
1,473,317
22,127,673
-
22,127,673
173,690
21,953,983
22,127,673

The income and deficit of the parent charity for the year for Companies Act purposes is £912,599 and £55,197 deficit respectively (2022 : £857,946 and £246,597 deficit). As permitted by Section 408 of the Companies Act 2006, no separate statement of financial activities is presented in respect of the parent charity. The financial statements were approved by the trustees on 22/11/2023.

Mrs Fawziah Islam

Director

Company Registration No. 07055355

YUSUF ISLAM FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
26
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(369,268)
(53,481)
427,923
374,442
-
5,174
2,527,843
2,533,017		 2022
£
£
(387,966)
(41,500)
384,971
343,471
-
(44,495)
2,572,338
2,527,843

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Yusuf Islam Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is The Maqam Centre, Tiverton Road, London, NW10 3HJ. There are currently five trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £10.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

The trustees are confident that the would be able to continue the activities of the charity in the event of a significant drop in funding due to the level of unrestricted reserves and free cash reserves. For further information, please see consideration of going concern in the trustees' report. Based on a review of cash flows and forecasts covering a year from the date of signing, the trustees are satisfied that the charitable company and group is a going concern and accordingly they continue to prepare the financial statements on a going concern basis.

1.3 Charitable funds

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes:

Grant funding of activities is recognised on the basis that the charity has an obligation, when transfer of the funding is probable and the amount of the obligation and can be measured or estimated reliably. Grants are made at the discretion of the trustees on a case-by-case basis.

Activities undertaken directly relate to directly attributable costs in pursuance of the charity's objectives and an allocation of support costs. Support costs are allocated in line with the basis that they relate to the charitable activities of the charity but are not directly related to the income generated from such activities. The vast majority of support costs compromise teaching and administration salaries.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the trusts programmed and activities. These costs have been allocated between cost of teaching, promotional work and expenditure on community centre activities. The bases on which support costs have been allocated are set out in the notes to the financial statements. No support costs are allocated to fundraising or grant making on the grounds of materiality.

Governance costs are included in support costs and relate to accountancy, audit, legal and professional advice provided to the group.

Expenditure on raising funds relates to professional income payable and royalties payable by the charity's subsidiary, Firecat Music Limited, and are recognised on an accruals basis. Also included are maintenance costs relating to property investment income.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Not depreciated Leasehold land and buildings Not depreciated Fixtures and fittings 20% straight line Motor vehicles 20% straight line

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Freehold land and assets relate to a long term leasehold flat, 131B Salusbury Road, as well as school properties located at 8 Brondesbury Park and 129 Salusbury Road, London NW6. the property values stated in these accounts are cost. The trustees consider that the useful economic life of these buildings is sufficiently long and the market value is in excess of cost. Accordingly, the trustees are satisfied that no depreciation needed to be charged in the accounts against the value of the buildings as 95% of the value relates to land and therefore the depreciation charge would be immaterial.

The Maqam Centre, London, NW10 has been classed as an asset in the course of construction to more clearly show its current stage of development. The trustees are satisfied that no adjustment for depreciation, impairment of valuation is needed until the centre is complete.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Functional property of Islamia Schools Limited consists of furniture, fixtures and equipment. Furniture, fixtures and equipment is depreciated in accordance with the deprecation policy stated above.

The charity has no heritage assets. Any items below £500 or not considered to have a useful economic life of more than one year are not capitalised. Impairment reviews are carried out by the trustees on an annual basis to assess whether any impairment of fixed asses needs to be made in the financial statements.

1.7 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Taxation

The parent company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (Chapters 2 and 3 or part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.15 Basis of consolidation

The trading activities of the charity's wholly owned subsidiary, Firecat Music Limited, are incorporated in these accounts and consolidated on a line-by-line basis. Firecat Music Limited's results relate to the accounting period up to 31 March 2023.

The activities of the trading subsidiary, Maqamat Limited, are incorporated in the accounts and consolidated on a line-by-line basis. Maqamat Limited's results relate to the accounting period up to 31 March 2023.

The trading activities of the charity's wholly owned subsidiary, Islamia Schools Limited, are incorporated in these accounts and consolidated on a line-by-line basis. Islamia Schools Limited results relate to the accounting period up to 31 March 2023.

1.16 Fund accounting

The charity's reserves are allocated between restricted and unrestricted funds.

Restricted funds are funds subject to specific restrictions imposed by the funding authorities and donors. These funds are not available for the Trustees to apply at their discretion.

The purpose and use of the restricted funds is set out in note 22 to the financial statements.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fair value of investment properties

The trustees engage a Chartered Surveyor to carry out a valuation of investment properties held by the charity at regular intervals. During the interim periods, the trustees review rent yields in consultation with the charity's property manager to ensure that fair value has remained consistent with prior years.

The Maqam Centre is currently held as assets under construction. Upon completion of the on-going development, when the Centre comes into full operation, it will be transferred to investment property status.

The trustees do no consider there are any other critical judgements or sources of estimation uncertainty requiring disclosure.

Total 2022 £ 421,784
Restricted funds 2022 £ 14,054
Unrestricted funds 2022 £ 407,730
Total 2023 £ 445,589
Restricted funds 2023 £ 442,182
Unrestricted funds 2023 £ 3,407

Donations and legacies Donations and gifts
3

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Unrestricted
Unrestricted
funds funds
2023 2022
£ £
School fees receivable 1,643,351 1,600,632
5 Income from other trading activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Publishing royalties 8,114 124,524
6 Income from investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Rental income 427,923 371,984
Investment income - 12,987
427,923 384,971
7 Other income
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Sundry income - 70
Other Income 39,088 -
39,088 70

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8 Raising funds

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Trading costs
Music publishing trading costs 113,687 159,596
Investment management and property trading costs 53,248 84,872
166,935 244,468
Expenditure on charitable activities
Activities Activities
undertaken undertaken
directly directly
2023 2022
£ £
Direct costs
Staff costs 1,358,272 1,295,655
Depreciation and impairment 19,364 19,437
Teaching 1,010,325 912,872
2,387,961 2,227,964
Share of support and governance costs (see note 10)
Governance 264,621 301,532
2,652,582 2,529,496
Analysis by fund
Unrestricted funds 2,189,239 2,529,496
Restricted funds 463,343 -
2,652,582 2,529,496

9 Expenditure on charitable activities

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10
Support & Governance costs
Support
costs
Governance
costs
£
£
Teaching
-
-
Legal and professional
costs
-
169,890
Audit and accounts
-
94,731
Other
-
-
-
264,621		 2023Support costs Governance
costs
£
£
£
-
55,008
10,723
169,890
117,075
36,516
94,731
4,500
-
-
8,115
69,594
264,621
184,698
116,833		 2022
£
65,731
153,591
4,500
77,709
301,531

Governance costs relate to legal, audit and accountancy work. Support costs include utilities, teaching resources, office costs, repairs and maintenance as well as depreciation.

11 Auditor's remuneration

Fees payable to the charity's auditor and associates:
Audit of the charity's annual accounts
Other services to the group
- Audit of the charity's subsidiaries
Total audit fees		 2023
£
14,250
13,500
27,750		 2022
£
13,250
12,750
26,000

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration, expenses or benefits from the charity during the year.

13 Employees

The average monthly number of employees during the year was:

Management
Teaching and support staff
Total		 Group
2023
Number
5
45
50		 2022
Number
5
42
47		 Charity
2023
Number
5
-
5		 2022
Number
5
-
5

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Employees
Wages and salaries
Social security costs
Pension costs		 Group
2023
£
1,212,669
114,142
31,461
1,358,272		 2022
£
1,171,461
93,820
30,374
1,295,655		 (Continued)
Charity
2023
2022
£
£
147,360
147,360
13,019
13,019
4,635
4,635
165,014
165,014		 (Continued)
Charity
2023
2022
£
£
147,360
147,360
13,019
13,019
4,635
4,635
165,014
165,014
165,014

13 Employees

The number of employees whose annual remuneration was over £60,000 during the year was 1 (0 - 2022).

The key management personnel of the parent Charity are noted on the legal and administration page. The total remuneration (including pension and national insurance contributions) of the key management personnel of the Charity totalled £50,746 (2022 - £52,500).

14 Taxation

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

Fixtures and
Motor vehicles
Total		 fittings £
£
£		 77,466
29,980 13,650,935		 53,481
-
53,481		 130,947
29,980 13,704,416		 59,471
13,352
72,823		 13,368
5,996
19,364		 72,839
19,348
92,187		 58,108
10,632 13,612,229		 17,995
16,628 13,578,112
Assets under construction £ 8,384,222 - 8,384,222 - - - 8,384,222 8,495,832
Leasehold land and buildings £ 458,173 - 458,173 - - - 458,173 458,173
Freehold land and buildings £ 4,701,094 - 4,701,094 - - - 4,701,094 4,589,484

(Continued) Fixtures and
Motor vehicles
Total		 fittings 43,533
29,980 13,728,613		 2,910
-
2,910		 46,443
29,980 13,731,523		 41,105
13,352
54,457		 3,636
5,996
9,632		 44,741
19,348
64,089		 1,702
10,632 13,667,434		 2,428
16,628 13,674,156
Assets under construction 8,495,833 - 8,495,833 - - - 8,495,833 8,495,833
Leasehold land and buildings 458,173 - 458,173 - - - 458,173 458,173
Freehold land and buildings 4,701,094 - 4,701,094 - - - 4,701,094 4,701,094
Tangible fixed assets Tangible fixed assets Charity Cost At 1 April 2022 Additions At 31 March 2023 Depreciation and impairment At 1 April 2022 Depreciation charged in the year At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022
15

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Investment property

Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023 6,980,000

Investment property comprises freehold and leasehold land and buildings. Investment property is stated at fair value based on the last valuation carried out in November 2021 by a FRICS qualified surveyor on an open market basis by reference to market evidence of similar property valuations.

Between valuations the Trustees review the properties for indicators of impairment or significant increase in value based on property indices. The next independent valuation will be undertaken in 2026.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

Cost
Accumulated depreciation
Carrying amount
17
Fixed asset investments		 2023
£
6,762,078
-
6,762,078		 2022
£
6,762,078
-
6,762,078
Cost or valuation
At 1 April 2022
Investments in subsidiaries
At 31 March 2023		 Group
2023
£
-
-
-		 2022
£
-
-
-		 Charity
2023
£
-
200
200		 2022
£
-
200
200

Details of the company's subsidiaries at 31 March 2023 are as follows, all subsidiaries are held at cost :

Name of undertaking Class of share held % held
Maqamat Ltd Ordinary 100
Firecat Music Ltd Ordinary 100
Islamia Schools Ltd Ordinary 100

All the subsidiaries have the same registered office address

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18
Stocks
Group
2023
£
Finished goods and goods for resale
-
19
Debtors
Group
2023
Amounts falling due within one year:
£
Trade debtors
66,799
Amounts owed by subsidiary undertakings
-
Other debtors
18,845
Prepayments and accrued income
48,175
133,819
20
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
21
Creditors: amounts falling due after more than one year
Other creditors		 2022
£
29,532
2022
£
333,420
-
20,071
29,291
382,782		 Charity
2023
£
-
Charity
2023
£
35,742
72,106
2,207
53,637
163,692
2023
£
68,330
109,465
276,944
676,681
1,131,420
2023
£
131,300		 2022
£
29,532
2022
£
64,038
67,606
10,753
25,943
168,340
2022
£
34,614
99,790
262,584
745,484
1,142,472
2022
£
104,000

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

22 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Peace Train
Scholarship fund
Previous year:
Peace Train
Scholarship Fund		 At 1 April
2022
£
173,690
21,298
194,988
At 1 April
2021
£
159,636
21,298
180,934		 Incoming
resources
£
442,182
-
442,182
Incoming
resources
£
14,054
-
14,054		 Resources
expended
At 31 March
2023
£
£
(463,343)
152,529
-
21,298
(463,343)
173,827
Resources
expended
At 31 March
2022
£
£
-
173,690
-
21,298
-
194,988

23 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 1 April
2022
£
22,056,809
At 1 April
2021
£
22,312,846		 Incoming
resources
£
2,121,883
Incoming
resources
£
2,517,927		 Resources
expended
At 31 March
2023
£
£
(2,356,174)
21,822,518
Resources
expended
At 31 March
2022
£
£
(2,773,964)
22,056,809

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

24 Analysis of net assets between funds

Unrestricted
funds
2023
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
13,612,229
Investment properties
6,980,000
Current assets/(liabilities)
1,361,589
Long term liabilities
(131,300)
21,822,518
Unrestricted
funds
2022
£
Fund balances at 31 March 2022 are represented by:
Tangible assets
13,578,112
Investment properties
6,980,000
Current assets/(liabilities)
1,602,697
Long term liabilities
(104,000)
22,056,809		 Restricted
funds
2023
£
-
-
173,827
-
173,827
Restricted
funds
2022
£
-
-
194,988
-
194,988		 Total
2023
£
13,612,229
6,980,000
1,535,416
(131,300)
21,996,345
Total
2022
£
13,578,112
6,980,000
1,797,685
(104,000)
22,251,797

25 Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts owed to related
parties
2023 2022
£ £
Amounts owed to related parties 79,187 91,187

The Charity has taken the exemption under FRS102 not to disclose group transactions with wholly owned subsidiaries.

YUSUF ISLAM FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

26 Cash generated from operations 2023 2022
£ £
Deficit for the year (255,452) (241,983)
Adjustments for:
Investment income recognised in statement of financial activities (427,923) (384,971)
Depreciation and impairment of tangible fixed assets 19,364 19,437
Movements in working capital:
Decrease in stocks 29,532 -
Decrease in debtors 248,963 222,200
Increase/(decrease) in creditors 16,248 (2,649)
Cash absorbed by operations (369,268) (387,966)
27 Analysis of changes in net funds

The charity had no material debt during the year.