Charity Registration Number: 1134963 

## AL-MADANI EDUCATIONAL TRUST 

ANNUAL REPORT AND FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 31 AUGUST 2020 



AL-MADANI EDUCATIONAL TRUST 

## ANNUAL REPORT AND FINANCIAL STATEMENTS 

For the year 1 September 2019 to 31 August 2020 

|CONTENTS|Page|
|---|---|
|Reference and Administrative Information|2|
|Trustees’ Annual Report|3 to 4|
|Independent Auditor’s Report|5|
|Consolidated StatementofFinancial Activities|6|
|Consolidated Balance Sheet|7|
|NotestotheFinancialStatements|8to12|



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AL-MADANI EDUCATIONAL TRUST 

TRUSTEES’ANNUAL REPORT For the year 1 September 2019 to 31 August 2020 

## Reference and Administrative Information 

Charity number: 1134963 

## Registered Office and Operational Address: 

18 Painswick Road, Gloucester, GL4 6PW 

## Independent Examiner 

H.A. Bhula, 5 Howard Street, Gloucester, GL1 4UR 

## Bankers 

Lloyds, Eastgate Street, Gloucester, GL1 1NU Barclays, Southgate Street, Gloucester, GL1 INU 

## Trustees 

The Trustees serving during the year and since the year end were as follows: 

Mr Y Patel Mr A Randera Mr AS Patel MrS Patel Mr A Patel Mr A A Patel 

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AL-MADANI EDUCATIONAL TRUST 

## TRUSTEES’ANNUAL REPORT (continued) For the year 1 September 2019 to 31 August 2020 

The Board of Trustees have pleasure in presenting The Annual Report and unaudited Financial Statements of the charity for the year ended 31 August 2020. 

## Legal Status and Governance 

Al-Madani Educational Trust is a registered as a charity with the Charity Commission. The Trustees are required to act in the best interest of the Charity and its beneficiaries. Training and information provided includes advice about the role of Trustees and Charity law. The Trustees make no personal gain from the Charitable Company. 

## Objectives of the charity 

The objectives of the charity are to provide help and support for the Muslim Community in Gloucestershire, by the provision of services not otherwise provided by the statutory bodies. 

Income is applied solely towards the promotion of the objectives and no portion shall be paid or transferred directly or indirectly by way of a bonus or profit to the members. 

## Organisational Structure 

The Trustees are elected for a term of three years in accordance with the constitution. 

## Financial Controls 

The Trustees have overall control of the organisation’s finances. The daily management of the organisation’s activities is delegated to the Executive Committee. 

## Investment powers and restrictions 

There are no restrictions as to where funds may be invested, but policy must be agreed by the Trustees and the Management Committee. 

## Risk Management 

The Trustees review these risks on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. Where appropriate, risks are covered by the organisations’ insurance. The following framework is central to ensuring adequate risk management: 

- e Regular monitoring of major risks and development of action plans; e Embedding risk identification and assessment within operating procedures; e A clear structure of delegated authority and control: e Review of key systems and procedures. 

In assessing risk Trustees recognise that some areas of our work require the acceptance and management of risk if our key objectives are to be achieved. 

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AL-MADANI EDUCATIONAL TRUST 

TRUSTEES’ANNUAL REPORT (continued) For the year 1 September 2019 to 31 August 2020 

Financial Review 

## Reserves Policy 

The Board has set a Reserve of Restricted Funds equivalent to at least one-month operating costs. The reserves of £121,079 (2019 £22,714) do not meet this criterion. The Trustees are of the opinion that they have guarantees of supporters to fund the running costs should they be needed. 

## Principal Funding Sources 

Of the £531,715 income for the year 30% came from restricted grants, 55% from school fees and 15% from fundraising activities and donations. 

More detail about income for the year and the Charity’s financial position at the end of the year are shown in the Financial Statements on pages 6 to 7. 

## Principal Expenditure Items 

Staff costs were £355,754 forming 82% of expenditure. As shown in the notes this was helped by the Coronavirus Job Retention Scheme Grant of £10,066. Property related costs amounted to 4% of the expenditure. The valuable time given by unpaid volunteers, including Trustees, is not quantified and not included in this figure. 

The surplus for the year before gains on investments amounted to £98,365. (2019 deficit (£43,258)). 

Responsibilities of the Board of Trustees The Board of Trustees are required to prepare Financial Statements for each financial year that give a true and fair view of the of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those Financial Statements the Trustees are required to: e Select suitable accounting policies and then apply them consistently e Make judgements and estimates that are reasonable and prudent 

- e State whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial accounts 

- e Prepare the Financial Statements on the ‘going concern’ basis unless it is inappropriate to presume that the company will continue in business 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial accounts comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

This report has been prepared in accordance with the above principles in mind. 

> Approved by the Board of Trustees on and signed on its behalf by: { Mr Pate : Chairman/Trustee 

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AL-MADANI EDUCATIONAL TRUST 

## REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES 

I report on the accounts of the Trust for the year ended 31 August 2020, which are set out on pages 6 to 12. 

## Respective responsibilities oftrustees and examiner 

As the charity’s trustees you are responsible for the preparation of the accounts; you consider that an audit is not required for this year under section 144 of the Charities Act 2011(“the Charities Act”) and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the Charities Act, to follow procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act and to state whether matters have come to my attention. 

## Basis ofindependent examiners * report 

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Trust and a comparison of the accounts presented with those records. It also includes the 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 I do not express an audit opinion on the accounts. 

## Independent examiners‘ report 

In connection with our examination, no material matter has come to my attention which gives me cause to believe that in any material respect: 

- e The accounting records were kept in accordance with section 130 of the Charities Act; or 

- e The accounts did not accord with the accounting records; or e The accounts did not comply with the applicable 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 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. 

H A BHULA (FCCA) Chartered Certified Accountant 5 Howard Street Gloucester. GL1 4UR 

20" September 2021 

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AL-MADANI EDUCATIONAL TRUST 

## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020 

||||||TOTAL|TOTAL|
|---|---|---|---|---|---|---|
||Note||UNRESTRICTED <br>FUNDS|RESTRICTED<br>FUNDS|FUNDS<br>2020|FUNDS<br>2019|
|INCOMING RESOURCES|||£|£|£|£|
|Incomingresources from generated<br>funds|||||||
|Voluntaryincome<br>Activities forgenerating funds<br>Investmentincome||2|30,424<br>0<br>8,000|328,983<br>0<br>0|359,407<br>0<br>8,000|370,418<br>0<br>8,000|
|Incoming resourcesfrom charitable|||||||
|activities||3|100|164,208|164,308|201,116|
|TOTALINCOMINGRESOURCES|||38,524|493,191|531,715|579,534|
|RESOURCES EXPENDED|||||||
|Costofgeneratingfunds|||||||
|Fundraisingandtrading<br>Charitable Activities|4||0|432,800|432,800|622,147|
|Governance costs|a||550|0|550|645|
|TOTALRESOURCESEXPENDED|||550|432,800|433,350|622,792|
|Netmovementinfunds|||37,974|60,391|98,365|(43,258)|
|Transfer between funds|||-||||
|||||-|-|-|
|Reconciliation offunds|||||||
|Total fundsbrought forward|||14,964|7,750|22,714|65,972|
|Total fundscarried forward|9|52,938<br>a||68,141|121,079|22,714|



The Charity has no recognised gains or losses other than the results for the year as set out above. All the activities of the Charity are classed as continuing. 

The notes on pages 8 to 12 form an integral part of these financial statements 

6 



AL-MADANI EDUCATIONAL TRUST 

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Note|Charity2020|Charity2019|
|£|£|
|FIXED ASSETS|
|Tangible|assets|-|-|
|CURRENT|ASSETS|
|Debtors and|prepayments|7|2,542|5,171|
|Cash|at bank and|in hand|125,641|35,852|
|128,183|41,025|
|LIABILITIES|
|Creditors:|amounts|due|within|
|one year|8|7,104|18,309|
|NET CURRENT ASSETS|121,079|22,714|
|NET|ASSETS|
|121,079|22,714|
|Financed|by:|
|ACCUMULATED|FUNDS|
|Unrestricted|9|52,938|14,964|
|Restricted|9|68,141|7,750|
|TOTAL CHARITY FUNDS|121,079|22,714|

**----- End of picture text -----**<br>


These Financial Statements were approved by the Board of Trustees on 20" September 2021 and were signed on its behalf by: 

MrY Patel Chairman/Trustee 

The notes on pages 8 to 12 form an integral part of these financial statements 

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AL-MADANI EDUCATIONAL TRUST 

## NOTES TO THE FINANCIAL STATEMENTS 

## 1-ACCOUNTING POLICIES 

The principal accounting policies, all of which have been applied consistently throughout the year, are set out below: 

## a) Basis of accounting 

The financial statements have been prepared in accordance with the Charities SORP (FRSSE) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) the Financial Reporting Standard for Smaller Entities. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). 

## b) Funds accounting 

Funds held by the Charity are: 

Unrestricted funds - these are general funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the Charity. 

Restricted funds - these are funds that can only be used for restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for restricted purposes. 

Further explanation of the nature and purpose of each fund is included in note 14 to the Financial Statements. 

## c) Incoming resources 

Voluntary income including donations and grants that provide core funding or are of a general nature is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. 

Incoming resources from tax claims are included in the statement of financial activities at the same time as the gift to which they relate. 

Investment income is recognised when receivable. 

Income from charitable activities includes some recognised as earned (as the related goods or services are provided) under contract. 

## d) Resources expended 

Resources expended are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. 

Costs of generating funds are the costs of trading for fundraising purposes. 

8 



AL-MADANI EDUCATIONAL TRUST 

## NOTES TO THE FINANCIAL STATEMENTS (continued) 

## 1-ACCOUNTING POLICIES-(continued) 

## d) Resources expended (continued) 

Charitable expenditure comprises those costs that are 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. 

Support costs include central functions and have been allocated to activity costs categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their useage. 

Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements. 

## e) Donated goods and volunteer services 

## The 

Charity has not received any goods for use by the Charity itself. 

The value of services provided by volunteers is not incorporated into these Financial Statements. 

## f) Taxation 

Al Madani is a registered Charity under the Charities Act 2011 and as such is exempt from taxation of its income and capital gains. 

Tax recovered from voluntary income received under gift aid is recognised when the tax refund is received and is allocated to the income category to which the income relates. 

## g) Pension 

The Trust makes contributions to the NEST pension schemes of eligible employees. This is a defined contribution scheme. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Trust has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds. 

9 



AL-MADANI EDUCATIONAL TRUST 

## NOTES TO THE FINANCIAL STATEMENTS (continued) 

## 2-VOLUNTARY INCOME 

Voluntary income for the year falls into the following categories. 

||UNRESTRICTED|RESTRICTED|TOTAL|TOTAL|
|---|---|---|---|---|
||FUNDS|FUNDS|FUNDS|FUNDS|
||||2020|2019|
|Fees|£|£|£|£|
|-Al-AshrafSecondary<br>-Al-Ashraf Primary<br>-Al-AshrafNursery<br>GiftAidtax reclaimed|-<br>.<br>-|121,252<br>173,259<br>-|121,252<br>173,259<br>-|118,130<br>175,731<br>-|
|-Al-AshrafSecondary<br>-Al-Ashraf Primary<br>-Al-AshrafNursery<br>AppealsandDonations|1,643<br>7<br>-|0<br>si<br>-|1,643<br>ws<br>-|3,903<br>=<br>-|
|-Al-AshrafSecondary<br>-Al-Ashraf Primary<br>-Al-AshrafNursery|-<br>28,781<br>-|34,472<br>-<br>>|34,472<br>28,781<br>-|28,188<br>44,466<br>=|
|Total voluntaryincome|a<br>30,424<br>328,983<br>359,407<br>370,418<br>SS||||
|3-INCOMING RESOURCES FROMCHARITABLE ACTIVITIES|||||
||UNRESTRICTED<br>RESTRICTED||TOTAL|TOTAL|
||FUNDS|FUNDS|FUNDS|FUNDS|
||||2020|2019|
|LocalAuthority Grants|2|£|£|£|
|-Al-AshrafSecondary<br>-Al-Ashraf Primary<br>-Al-AshrafNursery|-<br>.<br>-|-<br>28,926<br>133,657|-<br>28,926<br>133,657|-<br>41,380<br>134,497|
|OtherFundRaisingandsundry|||||
|income|||||
|-Al-AshrafSecondary<br>-Al-Ashraf Primary<br>-Al-AshrafNursery|=<br>100<br>-|1,625<br>-<br>-|1,625<br>100<br>-|5,239<br>20,000<br>-|
|Total incomingresources|i<br>100<br>164,208<br>164,308<br>201,116<br>eee||||



## 3-INCOMING RESOURCES FROM CHARITABLE ACTIVITIES 

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AL-MADANI EDUCATIONAL TRUST 

## NOTES TO THE FINANCIAL STATEMENTS (continued) 

## 4-COST OF CHARITABLE ACTIVITIES 

The amount spent on charitable activities including support costs is analysed between Services and projects, as follows: 

||Secondary<br>School|Primary<br>School|Nursery<br>School|Unrestricted|Restricted|Total<br>2020|Total<br>2019|
|---|---|---|---|---|---|---|---|
|Direct costs|£|£|£|£|£|=|£|
|Employmentcosts<br>Propertyrelatedcosts|138,785<br>10,230|173,181<br>3,827|43,788<br>5,424|0<br>0|355,754<br>19,481|355,754<br>19,481|525,044<br>22,291|
|Repairsandmaintenance<br>Training,Activities&<br>Equipt|2,829<br>1816|79<br>3,561|144<br>1,008|0<br>0|3,052<br>6,385|3,052<br>6,385|11,732<br>12,257|
|Telephone<br>Insurance|1,855<br>3,745|1,354<br>2,162|755<br>1,312|0<br>0|3,964<br>7,219|3,964<br>7,219|3,260<br>6,129|
|SubscriptionandExam Fees<br>StationeryandBooks<br>Postage,|3,172<br>4,593|997<br>8,684|-<br>613|0<br>0|4,169<br>13,890|4,169<br>13,890|6,184<br>11,532|
|PrintingandAdvertising<br>SundriesandCleaning|2,231<br>2,017|1,585<br>7,982|-<br>5,071|0<br>0|3,816<br>15,070|3,816<br>15,070|3,426<br>20,292|
||171,273<br>203,412<br>=||58,115|0|432,800|432,800|622,147|



## 5-GOVERNANCE COSTS 

The governance costs consisted of the following direct and indirect costs: 

||2020|2019|
|---|---|---|
|Legal and professional fees<br>Management salary cost|£<br>550|£<br>645|
||-|-|
||550<br>——————|645<br>nd|
|6-STAFFCOSTS|||
||2020|2019|
|Total emoluments paid to employees:<br>Wages& Salaries<br>Social Security -employers<br>Pension<br>Coronavirus JobRetention SchemeGrant|£<br>338,977<br>18,832<br>8,011<br>(10,066)|£<br>491,037<br>25,844<br>8,163<br>-|
||355,754|525,044|
||Serpentine||



No employee earned £60,000 or more in the current or preceding accounting year. 

Trustees are not remunerated. 

1] 



AL-MADANI EDUCATIONAL TRUST 

## NOTES TO THE FINANCIAL STATEMENTS (continued) 

## 7-DEBTORS 


**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|2020|2019|
|i|‘|
|Prepayments|and accrued|income|2,542|S173|
|8-CREDITORS AND ACCRUALS: amounts|falling due within|1|year|
|2020|2019|
|Other|£|£|
|creditors|300|11,399|
|Accruals|6,804|6,910|
|7,104|18,309|
|9-CONSOLIDATED|STATEMENT OF FUNDS|
|1|September|Incoming|Outgoing|Transferbetween|al Angus|
|2019|2020|
|funds|
|RESTRICTED|FUNDS|£|£|£|£|z|
|Al-Ashraf Secondary|7,750|157,349|=|171,273|6,174|-|
|Al-Ashraf Primary|.|202,185|203,412|1,227|-|
|Al-Ashraf|Nursery|-|133,657|58,115|(7,401)|68,141|
|TOTAL|7,750|493,191|432,800|-|68,141|
|UNRESTRICTED|FUNDS|
|General Fund|14,964|38,524|550|-|52,938|
|TOTAL FUNDS|eeeeS22,714|531,715|433,350|OE-|121,0799|

**----- End of picture text -----**<br>


## 10-CONTINGENT LIABILITIES 

At 31 August 2020 Al-Madani Educational Trust had no known contingent liabilities. 

## 11-CAPITAL COMMITMENTS 


**----- Start of picture text -----**<br>
|||||||||
|---|---|---|---|---|---|---|---|
|2020|=2019|
|Capital|£|3|
|expenditure|that|has|been|contracted|for but|has|not been|
|provided|for in|the|Financial|Statements|NIL|NIL|
|Capital|expenditure|that has been|authorised by the Trustees|but has|
|not been|contracted|for|NIL|NIL|

**----- End of picture text -----**<br>


12