AL KAWTHAR FOUNDATION
REGISTERED CHARITY NUMBER: 1134628
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 December 2020
AL KAWTHAR FOUNDATION
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 to 6 |
| Notes to the Financial Statements | 7 to 11 |
| Detailed Statement of Financial Activities | 12 |
AL KAWTHAR FOUNDATION
Report of the Trustees for the Year Ended 31 December 2020
The trustees present their report with the financial statements of the charity for the year ended 31 December 2020.
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Deed of Trust dated 23 December 2009 and as amended by the Deed of Variation dated 15 February 2010, outlines the objects of the charity to be:
a) The relief of poverty, sickness and distress by providing such services and facilities as are necessary including food, Clothing and medical supplies;
b) To advance the Islamic religion in accordance with the "Shia" school of thought by such means as the Trustees in their absolute discretion determine;
c) To advance education by providing grants and such items, services and facilities as required particularly, but not exclusively for the benefit of young people.
Grantmaking
During the period, a total of £44,101 (2019 - £51,032) was granted to various organisations. The World Federation of KSIMC received a total of £13,160 and The Orison Charitable Trust received a total of £8,450 for various projects to provide relief for people in poverty stricken areas in the UK and also around the world in areas of Kenya, Pakistan, Syria and the Yemen. The Wessex Jamaat was provided £10,340 for various projects including funding university fees to assist with affordability for poorer families, maintenance of community centres and building foundation funds.
ACHIEVEMENT AND PERFORMANCE
Investment performance
The charity continued to rent the property at Prospect House, 50 Leigh Road, Eastleigh for an annual rent of £10,000 for 50% of the property. In previous years the rent was £14,000 for the whole of the property.
FINANCIAL REVIEW
Financial position
The charity continues to benefit from voluntary donations without the need for actively sourcing these or making appeals.
The trustees decided during the year to dispose of 50% of the property at Prospect House, 50 Leigh Road and realise the capital back into the Chartiy’s funds.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1134628
Page 1
AL KAWTHAR FOUNDATION
Report of the Trustees for the Year Ended 31 December 2020
REFERENCE AND ADMINISTRATIVE DETAILS
Principal address
Prospect House 50 Leigh Road Eastleigh Hampshire SO50 9DT
Trustees
Mr Shabbirali Mohamed Husein Walji FCA Mrs Nurjehan Shabbirali Walji Mr Rizwan Shafiq Walji ACCA Mr Rezahussein Mahmood Hooda FCA CTA
Independent examiner
Mrs Tracy Modha MAAT Merrifield Oakhill Bursledon Southampton Hampshire SO31 8AS
Approved by order of the board of trustees on 1[st] June 2021 and signed on its behalf by:
............................................. Shabbirali Mohamed Husein Walji FCA – Trustee
Page 2
AL KAWTHAR FOUNDATION
Independent Examiner's Report to the Trustees of Al-Kawthar Foundation
I report on the accounts for the year ended 31 December 2020 set out on pages five to twelve.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”).
The charity's trustees consider that an audit is not required for this year under Section 144 of the Act and that an independent examination is required.
It is my responsibility to:
-
examine the accounts under Section 145 of the Charities Act
-
to follow the applicable Directions given by the Charity Commission (under section 145(5)(b) of the Act, and
-
to state whether particular matters have come to my attention.
Basis of the independent examiner's report
My examination was carried out in accordance with general Directions given by the Charity Commission. 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 the report is limited to those matters set out in the statements below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
-
which gives me reasonable cause to believe that, in any material respect, the requirements
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to keep accounting records in accordance with Section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mrs Tracy Modha MAAT Merrifield Oakhill Bursledon Southampton Hampshire SO31 8AS
Date: 1st June 2021
Page 3
AL KAWTHAR FOUNDATION
Statement of Financial Activities for the Year Ended 31 December 2020
| 31.12.20 | 31.12.19 | ||
|---|---|---|---|
| Unrestricted | Total funds | ||
| funds | |||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 83,000 | 32,750 | |
| Investment income | 2 | 10,000 | 13,500 |
| Total | 93,000 | 46,250 | |
| EXPENDITURE ON | |||
| Charitable activities | |||
| The Lady Fatemah (as) Charitable | |||
| Trust_(Charity No. 1072270)_ | 3,210 | 1,250 | |
| Orison Charitable Trust_(Charity No. 1098822)_ | 8,450 | 14,200 | |
| The World Federation of KSIMC_(Charity No._ | |||
| 282303) | 13,160 | 12,600 | |
| The Wessex Jamaat_(Charity No. 1010076)_ | 10,340 | 10,933 | |
| Ahlulbayt Foundation_(Charity No. 1136006)_ | - | 1,500 | |
| Beta Charitable Trust_(Charity No. 1103023)_ | - | 5,000 | |
| Al-Zahra Association_(Charity No. 1142491)_ | 250 | 2,500 | |
| Al Mahdi Centre_(Charity No. 1127750)_ | 2,522 | - | |
| Other Charities | 6,168 | 3,049 | |
| Other | 102 | 2,268 | |
| Total | 44,202 | 53,300 | |
| NET INCOME/(DEFICIT) | 48,798 | (7,050) | |
| Other recognised gains/(losses) | |||
| Gains/(Losses) on revaluation of fixed assets | - | (20,626) | |
| Gain/(Loss) on disposal of fixed assets | - | 23,676 | |
| Net movement in funds | 48,798 | (4,000) | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 284,024 | 288,024 | |
| TOTAL FUNDS CARRIED FORWARD | 332,822 | 284,024 |
The notes form part of these financial statements
Page 4
AL KAWTHAR FOUNDATION
Balance Sheet At 31 December 2020
| 31.12.20 | 31.12.19 | |||
|---|---|---|---|---|
| Unrestricted | Total funds | |||
| funds | ||||
| Notes | £ | £ | £ | |
| FIXED ASSETS | ||||
| Tangible assets | 5 | 120,000 | 120,000 | |
| 120,000 | 120,000 | |||
| CURRENT ASSETS | ||||
| Debtors: amounts falling due within one year | ||||
| 6 | 9,000 | 9,300 | ||
| Debtors: amounts falling due after more than one | ||||
| year | 6 | 3,000 | 12,000 | |
| Cash at bank | 201,222 | 143,224 | ||
| 213,222 | 164,524 | |||
| CREDITORS | ||||
| Amounts falling due within one year | 7 | (400) | (500) | |
| NET CURRENT ASSETS | 212,822 | 164,024 | ||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 332,822 | 284,024 | ||
| NET ASSETS | 332,822 | 284,024 | ||
| FUNDS | 8 | |||
| Unrestricted funds | 332,822 | 284,024 | ||
| TOTAL FUNDS | 332,822 | 284,024 |
The financial statements were approved by the Board of Trustees on 1st June 2021 and were signed on its behalf by:
............................................. Shabbirali Mohamed Husein Walji FCA-Trustee
The notes form part of these financial statements
Page 5
AL KAWTHAR FOUNDATION
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity 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 with the Charities Act 2011.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
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AL KAWTHAR FOUNDATION
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
2. INVESTMENT INCOME
| Rents received | 31.12.20 £ 10,000 |
31.12.19 £ 14,000 |
|---|---|---|
3. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| funds | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Donations and legacies | 32,750 |
| Investment income | 13,500 |
| Total | 46,250 |
| EXPENDITURE ON | |
| Charitable activities | |
| The Lady Fatemah (as) Charitable Trust | 1,250 |
| Orison Charitable Trust | 14,200 |
| The World Federation of KSIMC | 12,600 |
| The Wessex Jamaat | 10,933 |
| Ahlulbayt Foundation | 1,500 |
| Beta Charitable Trust | 5,000 |
| Al-Zahra Association | 2,500 |
| Other Charities | 3,049 |
| Other | 2,268 |
| Total | 53,300 |
| NET DEFICIT | (7,050) |
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AL KAWTHAR FOUNDATION
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
| 4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Other recognised gains/(losses) Gain on revaluation of fixed assets Loss on disposal of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 5. TANGIBLE FIXED ASSETS COST OR VALUATION At 1 January 2020 Addition/(disposal) At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 6. DEBTORS Amounts falling due within one year: Trade debtors Loan to Wessex Jamaat Gift Aid claimable |
Unrestricted funds £ 20,626) (23,676) (4,000) 288,024 284,024 Freehold property £ 120,000 - 120,000 120,000 120,000 31.12.20 31.12.19 £ £ - - 9,000 9,000 - 300 9,000 9,300 |
|---|---|
Page 8
AL KAWTHAR FOUNDATION
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
6. DEBTORS - continued
| DEBTORS - continued | ||
|---|---|---|
| Amounts falling due after more than one year: Loan to Wessex Jamaat Aggregate amounts |
31.12.20 £ 3,000 12,000 |
31.12.19 £ 12,000 |
| 21,000 |
An interest free loan of £40,000 was provided in February 2019 to Wessex Jamaat (a charity registered in the UK under number 1010076) to assist with their Foundation Fund. The loan is due to be settled by April 2022. Repayment of the loan commenced in May 2019.
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Bank loans and overdrafts Taxation and social security |
31.12.20 £ - 400 400 |
31.12.19 £ - 500 |
|---|---|---|
| 500 |
8. MOVEMENT IN FUNDS
| Unrestricted funds General fund Sadaat fund Al-Mahdi Revaluation Fund TOTAL FUNDS |
At 1.1.20 Net movement in funds At 31.12.20 £ £ £ 263,398 48,798 312,196 - - - - 20,626 - - - 20,626 284,024 48,798 332,822 284,024 48,798 332,822 |
At 1.1.20 Net movement in funds At 31.12.20 £ £ £ 263,398 48,798 312,196 - - - - 20,626 - - - 20,626 284,024 48,798 332,822 284,024 48,798 332,822 |
|---|---|---|
| 332,822 | ||
| 332,822 |
Page 9
AL KAWTHAR FOUNDATION
Notes to the Financial Statements – continued for the Year Ended 31 December 2020
8. MOVEMENT IN FUNDS – continued
Net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement in | |
|---|---|---|---|---|
| resources | expended | losses | funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 93,000 | (44,202) | - | 48,798 |
| Sadaat fund | - | - | - | - |
| Al-Mahdi | - | - | - | - |
| Revaluation Reserve | - | - | - | - |
| 93,000 | (44,202) | - | 48,798 | |
| TOTAL FUNDS | 93,000 | (44,202) | - | 48,798 |
9. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
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AL KAWTHAR FOUNDATION
| Detailed Statement of Financial Activities for the Year Ended 31 December 2020 INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Investment income Rents received Total incoming resources EXPENDITURE Charitable activities Grants to institutions Grants to individuals Other Repairs and renewals Bank charges Total resources expended Gain/(Loss) on disposal of assets Net income/(deficit) |
31.12.20 £ 66,400 16,600 83,000 10,000 93,000 44,100 - 44,100 40 62 102 44,202 - 48,798 |
31.12.19 £ 26,200 6,550 32,750 13,500 46,250 51,032 - 51,032 2,200 68 2,268 53,300 3,050 (4,000) |
|---|---|---|
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