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← Akhuwat (UK) Trust

2024-03-31-accounts

Charity registration number 1136317 (England and Wales)

AKHUWAT (UK) TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 2024

The Trustees present their annual report and financial statements for the year ended 31 March 2024.

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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".

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

In the financial year 2023/24, the charity continued its strategy from the previous year to increase awareness and on-the-ground fundraising.

Several official events were conducted across the UK, Europe (France, Spain, Sweden, Norway, Denmark, Switzerland), Australia, the UAE, and the USA.

For most of these events, the costs were primarily borne by the Akhuwat UK entity, while the majority of the donations were directed to Akhuwat Pakistan.

Building on the strategy from 2022/23, the charity further invested in its online platforms to expand digital solutions and streamline Gift Aid processing.

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

Financial review

The charity recorded strong income of £463K, driven by a refreshed digital strategy and numerous fundraising events.

The fundraising events incurred some travel, catering, and consultancy expenses, amounting to £216K. These expenses were approved by the Trustees and included:

Most of these travels yielded positive outcomes for Akhuwat Pakistan, as well as mobilising support groups in the respective countries, thereby reducing the need for similar travels in the future.

As part of our on-going efforts to support Akhuwat Pakistan a total contribution of £115,000 was made to support our overall charity objectives.

AKHUWAT (UK) TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Plans for future periods

As highlighted in the previous year’s accounts, the charity is reaching a stage where most of the necessary investments to raise awareness within the UK and globally have been completed.

In 2024, the charity finalised the implementation of new CRM systems to streamline operations and improve efficiency. Enhanced financial risk management measures were also introduced, including:

Additionally, most card transactions were eliminated from Autumn 2024 to improve transparency in daily operations.

Looking ahead, the organisation plans to adopt a more selective approach to sponsoring international fundraising events, with a strategic focus on the Middle East rather than other regions.

Structure, governance and management

The charity's activities are governed by a trust deed dated April 2010.

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

New trustees must be appointed by a resolution passed by the Board. Any new trustee must be of the age 18 or over and must not be disqualified from holding office under the Charities Act of 1993.

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

Dr M A Javed Trustee

Mr Omar Chaudhry Trustee

30 January 2025

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 2024.

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.

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

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 the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements 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 the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

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: 30 January 2025

AKHUWAT (UK) TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income from:
Donations and legacies 3 162,791 478,315
Other trading activities 4 300,385 485,536
Total income 463,176 963,851
Expenditure on:
Raising funds 5 283,504 353,437
Charitable activities 6 270,141 345,260
Total expenditure 553,645 698,697
Net income/(expenditure) and movement in funds (90,469) 265,154
Reconciliation of funds:
Fund balances at 1 April 2023 270,763 5,609
Fund balances at 31 March 2024 180,294 270,763

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 2024

2024 2023
Notes £ £ £ £
Current assets
Debtors 12 43,662 49,378
Cash at bank and in hand 140,052 223,659
183,714 273,037
Creditors: amounts falling due within 13
one year (3,420) (2,274)
Net current assets 180,294 270,763
The funds of the charity
Unrestricted funds 14 180,294 270,763
180,294 270,763

The financial statements were approved by the Trustees on 30 January 2025

Dr M A Javed Mr Omar Chaudhry Trustee Trustee

AKHUWAT (UK) TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 17
operations (83,607) 221,179
Net cash generated from investing activities - -
Net cash generated from financing activities - -
Net (decrease)/increase in cash and cash
equivalents (83,607) 221,179
Cash and cash equivalents at beginning of year 223,659 2,480
Cash and cash equivalents at end of year 140,052 223,659

AKHUWAT (UK) TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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" 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)". 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 2024

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 income levels received.

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 2024

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
2024 2023
£ £
Individual donations 132,056 164,816
Organisational donations 30,735 85,642
Legacy donations - 227,857
162,791 478,315

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising events 300,385 485,536
5 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Fundraising and publicity
Fundraising costs associated with events held 216,514 233,105
Other fundraising costs 11,511 19,691
Support costs 45,325 100,641
Governance costs 10,154
283,504 353,437

AKHUWAT (UK) TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

6 Expenditure on charitable activities

Charitable Charitable
activity activity
2024 2023
£ £
Direct costs
Donations - Akhuwat 115,000 190,000
Donations - Other 400 -
115,400 190,000
Share of support and governance costs (see note 7)
Support 149,274 141,451
Governance 5,467 13,809
270,141 345,260
Analysis by fund
Unrestricted funds 270,141 345,260
7 Support and governance costs allocated to activities
2024 2023
£ £
- 68,750
Advertising 42,000 19,215
Consultancy fees 124,868 141,451
Platform fees 14,757 4,216
Bank charges 2,323 748
Telephone fees 390 288
IT costs 8,233 593
Printing, Postage & Stationery - 4,415
Sundry expenses 2,028 2,416
Governance costs 15,621 13,809
210,220 255,901
Analysed between:
Fundraising 55,479 100,641
Charitable activity 154,741 155,260
210,220 255,901

AKHUWAT (UK) TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

7 Support and governance costs allocated to activities (Continued)
2024 2023
Governance costs comprise: £ £
Consultancy fees 11,055 11,295
Accountancy 4,566 2,514
15,621 13,809
8 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements 3,420 3,420

9 Trustees

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

10 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

11 Taxation

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

12 Debtors

Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors 25,045 42,779
Prepayments and accrued income 18,617 6,599
43,662 49,378

AKHUWAT (UK) TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2024 2023
£ £
Accruals and deferred income 3,420 2,274

14 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
2023 resources expended 2024
£ £ £ £
General funds 270,763 463,176 (553,645) 180,294
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 5,609 963,851 (698,697) 270,763

15 Parent Charity

The ultimate charitable parent is Akhuwat, a charity registered in Pakistan. The Charitable Parent's address is 19 Civic Center, Sector A2, Township, Lahore, Pakistan.

16 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.

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

Unrestricted funds Unrestricted funds
2024 2023
£ £
Donations to parent - Akhuwat 115,000 190,000
Donations received from Akhuwat Sweden 30,785 60,295
84,215 129,705

AKHUWAT (UK) TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

17 Cash (absorbed by)/generated from operations 2024 2023
£ £
(Deficit)/surplus for the year (90,469) 265,154
Movements in working capital:
Decrease/(increase) in debtors 5,716 (45,295)
Increase in creditors 1,146 1,320
Cash (absorbed by)/generated from operations (83,607) 221,179
18 Analysis of changes in net funds

The charity had no material debt during the year.