# ANNUAL REPORT 2020/2021 REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 October 2021 FOR MAJLIS KHUDDAMUL AHMADIYYA (UK) (A COMPANY LIMITED BY GUARANTEE) WWW.KHUDDAM.ORG.UK COMPANY NUMBER: 07117137 CHARITY NUMBER: 1135657 CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 October 2021 ## Table of Contents |Reference and Administrative Details|01| |---|---| |Report of the Trustees|03-08| |Independent Examiner’s Report|09| |Statement of Financial Activities|10| |Statement of Financial Position|11| |Statement of Cash Flows|12| |Notes to the Financial Statements|13-20| REFERENCE & ADMINISTRATIVE DETAILS TRUSTEES Abdul Quddus Arif Usman Ahmed Hamid Mahmood Chaudhary Tauseef Ahmed COMPANY SECRETARY Tauseef Ahmed REGISTERED OFFICE Aiwan-E-Mahmood Unit 2, Bourne Mill Business Park Centre Park Farnham, Surrey GU9 9PS REGISTERED COMPANY NUMBER 07117137 (England and Wales) REGISTERED CHARITY NUMBER 1135657 INDEPENDENT EXAMINER Nasir Mahmud FCA Chartered Accountants Falcon House 257 Burlington Road New Malden, Surrey KT3 4NE BANKERS NatWest Plc 1000 Cathedral Square Cathedral Hill Guilford, Surrey GU2 7YL MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 2 OBJECTIVES & REPORT OF ACTIVITIES THE TRUSTEES The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 2021. The trustees have adopted the provisions of 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 Each year the trustees review the objectives and activities of the charity to ensure they continue to reflect the charity’s aims. Following are the overarching objectives of the charity which remains unchanged: 1. The advancement of the Muslim faith worldwide as expounded by Hazrat Mirza Ghulam Ahmad (AS) of Qadian, the Promised Messiah and the founder of the Ahmadiyya Movement and interpreted by any of his successors known as Caliph. The present Caliph is Hazrat Mirza Masroor Ahmad, Khalifatul Masih the Vth. 2. The advancement of Islamic education through the provision of lectures, seminars and discussion forums. 3. To provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age infirmity or disability, financial hardship or social circumstances with the objective of improving their conditions of life. 4. Any other charitable purpose as the trustees may from time to time determine. ## ACTIVITIES Following are some of the activities for the year undertaken by the charity to meet our objectives and for public benefit: Outreach events, workshops, dialogues, seminars and publications for students were held with the aim to educate students and encourage their involvement in the charity’s activities. For publication of information, websites were developed and enhanced, books and magazines were published and new mobile phone applications were developed. Links with local communities and other charities were established and enhanced by delivering sustainable projects including tree planting, feeding the homeless, visits to nursing homes and hospitals, litter picking, donation to other charities, etc. Members of the charity volunteered to help in disaster response activities in the UK and abroad. Various workshops for business start-ups’ and CV building, and business and investing forums were arranged by the charity for its members. For the propagation of the teaching of Islam, a number of forums and engagements with external faith and community groups, press releases and dialogues were held. ## GRANT MAKING Alshirkatul Islamiya Ahmadiyya Muslim Jamaat (AMJ) Grants or donations are made to a chosen organisation whose activities support the charity s objectives. Following are some of the prominent charities that were chosen by the trustees to be funded: AMJ has activities and projects which are very similar to those of the charity and is managing a large number of charitable projects all over the world. Trustees of the charity have therefore chosen AMJ as its largest beneficiary organisation. MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 3 STRATEGIC ACHIEVEMENTS & PERREPORT FORMANCE ## STUDENT AFFAIRS As an organisation focused on charitable activities and supporting local communities as well as members, the Trustees set up various programs in response to the Covid-19 pandemic. A highlight of activities include: ## STUDENT AFFAIRS 1. Setting up a separate management committee to deal with the changing landscape caused by the Covid-19 pandemic. 2. Providing support in the form of volunteers to Humanity First UK (a UK registered charity) for their disaster management call centres as an approved partner. 3. Purchase and distribution of medicines across member households where required. The Charity’s student affairs department had an active year with multiple virtual events taking place in the year. 4. Purchasing food for distribution to local food banks. 5. A telephone call campaign was carried out where volunteers rang all members to check on their welfare and provide support where necessary. 6. Regional members in Wandsworth and Manchester supported local councils by providing volunteers to make deliveries where needed. The Charity’s student affairs department had an active year with multiple events and exhibitions taking place across the country. Highlights of the year include: ## ATFAL The younger members of the youth association under the ages of 16. ## MEDIA & PUBLICATIONS The media and publications team continued their efforts in promoting the Charity’s activities through publication of various posters, videos and photos for the various events taking place in the year as well as providing support for these events in the form of media and photography coverage. Key highlights include: The younger members of the youth association organised and held activities online for majority of the year due to the ongoing impact of the Covid-19 pandemic. The media and publications team continued their efforts in promoting the Charity’s activities through publication of various posters, videos and photos for the various events taking place in the year as well as providing support for these events in form of media and photography coverage. Key highlights including publication of Tariq Magazine online multiple times in the year. The department also published a new book in the These activities ranged from online classes, courses and campaigns for youth members to write letters to NHS showing their support. year “ The Great Western Revival” - Addressed of his holiness Mirza Masroor Ahmad Khalifatul -Masih V (aba). MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 4 STRATEGIC ACHIEVEMENTS & REPORT PERFORMANCE ## CHARITABLE ACTIVITIES ## CHARITY CHALLENGE EVENTS IJTEMA ANNUAL/ REGIONAL/ LOCAL During the pandemic in the UK and the national lockdown the Charity was able to support local communities across the country. Regions made an outstanding effort reaching out to councils and local charities with varying success. In each Region depending on local requirements, the efforts focused on helping members and non-members of the community as per instructions of Hazrat Khalifatul Masih V (aba) by providing hot meals and donating Personal Protective Equipment (PPE) to front line staff. The Charity also helped set up several Covid vaccination clinics supporting the NHS. There were five clinics held throughout the year in various locations. Due to the ongoing impact of Covid-19, the charity held a limited charity challenge event raising money for various charities. During the year, the Charity held its 48th National Ijtema at a smaller scale due to the limitations in place following the Covid-19 pandemic. Local and regional branches held their events as well which were held virtually with the national Ijtema taking place in Alton, Hampshire. Whilst the event had limited attendance there were various events and exhibitions for the benefit of members. ## Key highlights include - Preparatory sessions and site set up days leading to the final weekend of Ijtema with over 200 individuals participating in set up activities - Overall attendance was limited to 2,500 members - Various academic and sporting events - Exhibitions featured Humanity First, Royal Air force, Police and the Army - Internal exhibitions featuring the theme of the Ijtema - Key events included a final concluding session attended by Hazrat Khalifatul Masih V (aba). MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 5 FINANCIAL REPORT OF REVIEW THE TRUSTEES ## INVESTMENT POLICY & OBJECTIVES The charity has no long-term investments. The trustees are empowered by the memorandum and articles of association to decide on the courses of action that they consider appropriate to further the charity’s objectives. ## RESERVES POLICY MKA UK has been managing its reserves in accordance with its policies and approving projects and expenditure where the Trustees feel there are opportunities to increase value of the causes for which the Charity stands for. The Charity’s long-term aim is to hold reserves equivalent to six months of expenditure. The Trustees believe this should provide sufficient funds to facilitate the continuity of operations. Income of MKA is expected to remain consistent from its loyal members and there appears to be no risk of significant loss in income in the foreseeable future. Trustees therefore may review the level of these reserves and decide on reducing their level in future years, provided worthy causes or investment opportunities arise in future. Funds of the Charity were £798,544 as at 31 October 2021 (2020: £647,089) comprising of £137,277 (2020: £187,715) restricted funds and £661,267 (2020: £459,374) unrestricted funds. MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 6 FINANCIAL REPORT OF REVIEW THE TRUSTEES ## STRATEGIC REPORT The Charity is reliant on voluntary donations from its members in the United Kingdom. During the year, the charity has continued to grow with increased contributions from members despite the ongoing impact of Covid-19 on the economic conditions of our members. MKA (UK) has made a surplus in the year and has been able to build on its reserves due to the curtailment of several of its activities including the flagship event which is usually held annually. The risk to income is low as majority of the members happily pay their subscriptions without much effort. A relatively smaller number when approached happily make donations. A larger focus is on the moral training of the members but our association with Al-Shirkatul Islamiyyah and Muslim Television Ahmadiyya UK thereof has helped in raising awareness of the excellent works carried out by the MKA (UK) for the community. This is expected to have a positive impact on our future income as well.During the year, increased merchandise sale at multiple local and national events as well as the launch of a new online store has resulted in higher trading income. **----- Start of picture text -----**
Breakdown of Member Contributions Total Contributions Breakdown of Member Contributions
Ss = t
0.4%
5% £531,103 £818,737 4% £29,150
Change PY FY21 Khuddam Collection Change PY FY21 Total contributions Change PY FY21 Atfal Collection
£531,103 Total Contributions-Last 5 Financial Years
£502,896 £29,150
£492,573 £27,871
£473,644 £818,737
£25,485
£452,172
£815,143 £20,431 £20,487
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
£624,055 £705,703
£659,690
6% £121,093 2017 _< 2018 2019 2020 2021 13% = £75,691
Member Participation - Last 5 Financial Years
Change PY FY21 Ijtema Collection 79% Change PY FY21 Gift Aid Collection
£121,093 75% £87,308
£117,293 72% £75,691
£70,352
69%
£57,188
£108,371 £113,707 65% £45,251
£106,201 2017 2018 2019 2020 2021
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
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MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 7 FINANCIAL REPORT OF REVIEW THE TRUSTEES ## FUTURE PLANS The Trustees continue to explore new ways to increase efficiency and effectiveness of finding ways to achieve the objectives of the charity. The trustees seek to actively promote the objectives of the charity in the following twelve months. ## STRUCTURE, GOVERNANCE AND MANAGEMENT The charity is an equal opportunities employer but it is important that the applicant understands the norms and conduct of the community and has been happily involved in volunteering themselves with a genuine desire for making a positive change in the society and serving the charity with honesty and integrity. In the current climate, physical security of the community is also of an important focus. Therefore, any person who applies for the position within the charity has to go through reasonable security clearance through the administration. Currently there is one full time employee and two part time employees of the charity. Estimated man hours spent on volunteering by our members were in excess of 350 FTE (full time employees). The trustees appreciate this and wish to thank everyone involved for their valuable time and commendable efforts in furthering the Charity objectives. ## EVENTS SINCE THE END OF THE YEAR Information relating to events since the end of the year is given in the notes to the financial statements. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on Monday 7th March 2022 and signed on the board’s behalf by: .......................................................... Abdul Quddus Arif - Trustee MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 8 INDEPENDENT EXAMINER’S REPORT ## I report on the accounts of the charity for the year ended 31st October 2021, which are set out on pages 10 - 20 ## Respective responsibilities of trustees and examiner The trustees (who are also directors of Majlis Khuddamul Ahmadiyya (UK) for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the 2011 Act and follow procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act and to state whether particular matters have come to my attention. ## Basis of independent examiner’s report My examination was carried out in accordance with the general directions given by the Charity Commission. The examination includes a review of the account records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all of 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 so limited to those matters set out in the statement below. ## Independent examiner’s statement In connection with my examination, no matter has come to my attention: (i) which gives me reasonable cause to believe that in any material respect the requirements: - to keep accounting records in accordance with section 386 of the Companies Act 2006 and - to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met or (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached Nasir Mahmud FCA Chartered Accountant Falcon House 257 Burlington Road New Malden Surrey KT3 4NE Lt 07/03/2022 .................................................. MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 9 ## STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 October 2020 The notes form part of the financial statements MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 10 ## STATEMENT OF FINANCIAL POSITION At 31 October 2021 The notes form part of the financial statements The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2021. The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2021 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The financial statements were approved by the Board of Trustees and authorised for issue on Monday 7th March 2022 and were signed on its behalf by: ............................................................... .......................................................... Abdul Quddus Arif - Trustee Tauseef Ahmed - Trustee MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 11 ## STATEMENT OF CASH FLOWS For the year ended 31 October 2021 The notes on the following pages form part of the financial statementsa MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 12 NOTES TO THE FINANCIAL STATEMENTS ## 1. ACCOUNTING POLICIES ## Basis of preparing the financial statements These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” under the historical cost convention, the requirements of the Companies Act 2006 and to comply with the Charities SORP 2015. Majlis Khuddamul Ahmadiyya (UK) is a private company limited by guarantee incorporated in England and Wales. ## Income: Recognition of incoming resources These are included in the Statement of Financial Activities (SOFA) when: - the charity becomes entitled to the resources; - the trustees are virtually certain they will receive the resources; and - the monetary value can be measured with sufficient reliability. ## Grants and donations Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources. ## Tax reclaims on donations and gifts Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate only if the trustees are satisfied that the claim will be successful. ## Volunteer help The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. ## Expenditure: Grants payables Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. These are expensed when events have created a valid expectation in other parties that the Charity will discharge its liabilities. ## Expenses and liabilities Expenses are recognised on an accruals basis. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. ## Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Motor vehicles - 20% on cost Computer equipment - 33.33% on cost MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 13 NOTES TO THE FINANCIAL STATEMENTS ## Taxation The charity is exempt from corporation tax on its charitable activities. ## Fund accounting Restricted funds are spent in accordance with specific instructions of the donors. Unrestricted funds comprise those funds which are spent at the discretion of management committee for the purpose of meeting the charity’s objectives. ## Pension costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## 2. DONATIONS AND LEGACIES ## 3. TRADING ACTIVITIES MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 14 NOTES TO THE FINANCIAL STATEMENTS ## 4. INTEREST ## 5. OTHER INCOME ## 6. RAISING FUNDS MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 15 NOTES TO THE FINANCIAL STATEMENTS ## 7. CHARITABLE ACTIVITIES COST 8. DIRECT COSTS OF CHARITABLE ACTIVITIES ## 9. NET INCOME/(EXPENDITURE) MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 16 ## NOTES TO THE FINANCIAL STATEMENTS ## 10. TRUSTEES’ REMUNERATION AND BENEFITS There was no remuneration paid and no benefits provided to trustees for the year ended 31 October 2021 (2020: £Nil) Trustees’ expenses There were no trustees’ expenses paid for the year ended 31 October 2021 nor for the year ended 31 October 2020. ## 11. ANALYSIS OF STAFF COST ## 12 . TANGIBLE FIXED ASSETS MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 17 NOTES TO THE FINANCIAL STATEMENTS ## 13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 18 NOTES TO THE FINANCIAL STATEMENTS ## 16. MOVEMENT IN FUNDS MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 19 ## NOTES TO THE FINANCIAL STATEMENTS ## 17. RELATED PARTY DISCLOSURES The trustees of the charity are considered to be key management personnel and are all volunteers. They do not receive any remuneration for their services (2020 :£nil). Donations made by trustees in 2021 totalled £2,315 (2020 :£5,266). The trustees that served in the year are included on page 1. ## 18. POST BALANCE SHEET EVENTS There were no subsequent events identified since the balance sheet date. ## 19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES ## 20. ANALYSIS OF CHANGES IN NET FUNDS MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2021 20 # **“** A NATION CANNOT BE REFORMED WITHOUT FIRST THE REFORMATION OF ITS YOUTH — His Holiness Hazrat Mirza Bashiruddin Mahmood Ahmad - Khalifatul-Masih II[ (God be pleased with him)] ## Contact Us www.khuddam.org.uk Aiwan-E-Mahmood Unit 2, Bourne Mill Business Park Centre Park Farnham, Surrey GU9 9PS