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2023-03-31-accounts

Charity registration number 1136317

AKHUWAT (UK) TRUST

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

AKHUWAT (UK) TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr M A Javed
Mr Omar Chaudhry
Mr Izhar Ul Haq Hashmi
Charity number 1136317
Registered office 540 Valence Avenue
Dagenham
Essex
England
RM8 3QH
Accountants BK Plus Limited
2 Highlands Court
Cranmore Avenue
Shirley
Solihull
West Midlands
B90 4LE

AKHUWAT (UK) TRUST

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Statement of cash flows 6
Notes to the financial statements 7 - 13

AKHUWAT (UK) TRUST

TRUSTEES' 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 Charities Act 2011 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

Akhuwat (UK) Trust has a number of charitable objectives. They are as follows:

To relieve financial hardship among the poor, the underprivileged, victims of natural and manmade disasters and people in need in the UK and Pakistan by means of, but not exclusively, making grants or loans for providing or payment for items, equipment, services and facilities for the benefit of said persons.

Significant activities undertaken

Financial year 22/23 was a pivotal year in the history of Akhuwat UK – key achievements included increasing awareness and on-the-ground fundraising within the UK and Europe.

The charity officially conducted 4 large-scale roadshows events across London, Birmingham, Manchester and Glasgow – improving both awareness and overall perception of the Akhuwat work (especially in light of the flood disasters which occurred in Pakistan 2022).

In addition to the fundraising work in the UK, the charity also launched and conducted some small-scale events in Europe to expand geographically.

Enabling the higher volume of donations was the implementation of a new digital platform and website which also allowed automated gift aid claims. The charity also engaged in several live television appeals on a notable television channel.

Despite the significant scale and rise of donation volumes, no formal employees were hired. The charity purposefully chose to run its operations using temporary consultants and volunteers.

Financial review

The charity saw a strong intake of income amounting to £964k, based on a new website and numerous fundraising events (both on-ground and through television appeals), which were further supported by the 2022 Pakistani floods that gathered significant public sentiment.

The funds this year were also significantly bolstered by a one-off donation of £228k as part of a Will execution.

The fundraising events described above did incur some travelling, catering and consultancy expenses that were agreed and approved by the Trustees. However, most services in these events were still carried out mostly by volunteers.

As part of our on-going efforts to support Akhuwat Pakistan with - a total contribution of £190,000 was made to support our overall charity objectives.

AKHUWAT (UK) TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

Financial year 22/23 was a stepping stone both in terms of on-the-ground activity and donations. The objective of the charity next year is to further consolidate this strong position, while tightening and formalising some of the dayto-day governance.

Increasing donation volumes, web-queries, and overall general interest in the charity has however added some further complexity. Thus, the trustees are considering measures to further formalise marketing, day-to-day financial management and a introduce a new CRM to streamline and more efficiently manage operations.

Increased financial risk management is another key priority highlighted for the coming year – through a more formalised monthly management reporting, as well as stringent screening of donations above a certain threshold.

Structure, governance and management

The Trustees who served during the year and up to the date of signature of the financial statements were: Dr M A Javed

Mr Omar Chaudhry

Mr Izhar Ul Haq Hashmi

The Trustees' report was approved by the Board of Trustees.

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Dr M A Javed
Trustee
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Mr Omar Chaudhry
Trustee
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7 February 2024

AKHUWAT (UK) TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AKHUWAT (UK) TRUST

I report to the Trustees on my examination of the financial statements of Akhuwat (UK) Trust (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Paul Mannion BK Plus Chartered Certified Accountants

2 Highlands Court Cranmore Avenue Shirley Solihull West Midlands B90 4LE

Dated: 7 February 2024

AKHUWAT (UK) TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 478,315 181,289
Other trading activities 4 485,536 -
Total income 963,851 181,289
Expenditure on:
Raising funds 5 353,437 109,539
Charitable activities 7 345,260 139,222
Total expenditure 698,697 248,761
Net income/(expenditure) and movement in funds 265,154 (67,472)
Reconciliation of funds:
Fund balances at 1 April 2022 5,609 73,081
Fund balances at 31 March 2023 270,763 5,609

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

AKHUWAT (UK) TRUST
BALANCE SHEET
AS AT 31 MARCH 2023
2023 2022
Notes £ £ £ £
Current assets
Debtors 11 49,378 4,083
Cash at bank and in hand 223,659 2,480
273,037 6,563
Creditors: amounts falling due within 12
one year 2,274 954
Net current assets 270,763 5,609
The funds of the charity
Unrestricted funds 270,763 5,609
270,763 5,609
The financial statements were approved by the Trustees on 7 February 2024
Dr M A Javed
Mr Omar Chaudhry
Trustee
Trustee
aggreganed
of
- 5 -
2023
Notes
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
15
Net cash used in 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		 2022
£
£
221,179
-
-
221,179
2,480
223,659

AKHUWAT (UK) TRUST

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

1 Accounting policies

Charity information

The Charity is registered as a Trust in accordance with the requirements of the Charities Act. The Charity’s trust deed is dated 14 April 2010 and was amended on 12 October 2017. The Charity was registered on the Central Register of Charities on 10 June 2010.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, 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 have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

AKHUWAT (UK) TRUST

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 transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 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.

1.7 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.

AKHUWAT (UK) TRUST

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

1 Accounting policies

(Continued)

1.8 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.

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.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Individual donations 164,816 135,335
Organisational donations 85,642 45,954
Legacy donations 227,857 -
478,315 181,289

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2022
£
-
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4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising events 485,536 -

AKHUWAT (UK) TRUST

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

5 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising and publicity
Fundraising costs associated with events held 233,105 -
Other fundraising costs 19,691 21,895
Broadcasting fees 68,750 79,126
Advertising 19,215 6,205
Platform fees 4,216 1,526
344,977 108,752
Trading costs
Support costs 8,460 787
Total costs 353,437 109,539
6
Support and governance costs allocated to activities
Consultancy fees
Bank charges
Telephone fees
IT costs
Printing, Postage & Stationery
Sundry expenses
Governance costs
Analysed between:
Fundraising
Charitable activity
Governance costs comprise:
Consultancy fees
Accountancy		 2023
£
141,451
748
288
593
4,415
2,416
13,809
163,720
8,460
155,260
163,720
2023
£
11,295
2,514
13,809

AKHUWAT (UK) TRUST

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

7 Expenditure on charitable activities

Charitable Charitable
activity activity
2023 2022
£ £
Direct costs
Donations - Akhuwat 190,000 50,000
Donations - Other - 8,242
190,000 58,242
Share of support and governance costs (see note 6)
Support 141,451 72,024
Governance 13,809 8,956
345,260 139,222
Analysis by fund
Unrestricted funds 345,260 139,222

8 Trustees

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

9 Employees

The average monthly number of employees during the year was:

Total
There were no employees whose annual remuneration was more than £60,000.		 2023
Number
-		 2022
Number
-

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-
2022
£
-
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10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2023
£
42,779
6,599
49,378		 2022
£
-
4,083
4,083

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2022
£
954
2023
£
2022
£
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AKHUWAT (UK) TRUST

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

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023 2022
£ £
Accruals and deferred income 2,274 954

13 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.

At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 5,609 963,851 (698,697) 270,763
Previous year: At 1 April Incoming Resources At 31 March
2021 resources expended 2022
£ £ £ £
General funds 73,081 181,289 (248,761) 5,609

14 Related party transactions

Transactions with related parties

The charity is controlled by the Board of Trustees and the parent charity, Akhuwat, a charity registered in Pakistan, whose purpose and activities are equal to Akhuwat (UK) Trust. During the year, none of the Trustees undertook any transactions with Akhuwat (UK) Trust.

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2022
£
-
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During the year the charity entered into the following transactions with related parties:

Unrestricted funds
2023 2022
£ £
Donations to parent - Akhuwat 190,000 50,000
Donations received from Akhuwat Sweden 60,295 -
250,295 50,000
15
Cash generated from operations
Surplus/(deficit) for the year
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from/(absorbed by) operations
16
Analysis of changes in net funds
The charity had no material debt during the year.		 2023
£
265,154
(45,295)
1,320
221,179