Muslim Institute Trust Ltd
Charity No. 1137088
Company No. 07258525
Trustees' Report and Unaudited Accounts
Year ended 30 June 2022
Muslim Institute Trust Ltd Contents
| Pages | ||
|---|---|---|
| Reference and Administrative Details | 2 | |
| Strategic Report | 3 | |
| Trustees' Annual Report | 4 | |
| Statement of Trustees Responsibilities | 5 | |
| Independent Examiner's Report | 6 | |
| Statement of Financial Activities | 7 | |
| Summary Income and Expenditure Account | 8 | |
| Balance Sheet | 9 | |
| Notes to the Accounts | 10 to | 16 |
| Detailed Statement of Financial Activities | 17 to | 18 |
Page 1
Muslim Institute Trust Ltd Reference and Administrative Details
Trustees H. Mahamdallie H. Hussain (Ceased to be Trustee effective from 05/02/2023) A. Siddiqui A. Barkatullah E. Masood (Ceased to be Trustee effective from 26/01/2023) F.M. Ashrif (Ceased to be Trustee effective from 26/01/2023) Z. Sardar S.H.K. Ghauri U. Ali (Ceased to be Trustee effective from 26/01/2023) M. Shamim (Appointed on 11/10/2022) S.A.M. Naguib (Appointed on 08/02/2023) Principal Office Canopi 7 - 14 Great Dover Street London SE1 4YR The charity is incorporated in United Kingdom Company Registration Number 07258525 Charity Registration Number 1137088 Independent Examiner Incisive Accounting Limited 52 Grosvenor Gardens London SW1W 0AU
Page 2
Muslim Institute Trust Ltd Strategic Report
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 30 June 2022, in compliance with s414C of the Companies Act 2006.
The strategic report was approved by the trustees of the charity on 03 March 2023 and signed on its behalf by:
....................................... A. Barkatullah Trustee
Page 3
Muslim Institute Trust Ltd
Trustees Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 June 2022.
Objectives and activities
Objects and aims
The objectives of the Charity is to explore, debate and discuss the pressing intellectual problems and issues facing British Muslim communities and wider society; encourage and support the pursuit of excellence in knowledge and thought as an agent of positive change; and provide an intellectual space where problems and issues can be discussed from multiple perspectives.
Trust Framework
The Trust has continued to provide an open space where issues of plurality, equality and tolerance can be discussed openly and frankly with emphasis on intellectual rigour. It has continued to support the publication of the quarterly Critical Muslim, organise the annual winter gathering and the prestigious annual Ibn Rushd lecture, and to hold regular conferences, seminars and discussion groups involving academics, writers and activists on a range of important issues. During the Covid-19 lockdown, many of our activities moved online.
Prospects
The trust's future remains bright, its activities are considerable. Critical Muslim is now regarded as a major, prestigious publication that has acquired an international reputation for its innovative content. Attendance at its annual Winter Gathering and lectures are much coveted.
Its contribution in debate and dialogue on community issues is being recognised and the Trust is emerging as a point of contact on issues relating to the Muslim communities.
The Trustees have maintained the integrity and good name of the Trust. They continue to use excess rental income and fellowship fees to maintain their activities.
The annual report was approved by the trustees of the charity on 03 March 2023 and signed on its behalf by:
............................. A. Barkatullah Trustee
Page 4
Muslim Institute Trust Ltd Statement of Trustees Responsibilities
The trustees (who are also the directors of Muslim Institute Trust Ltd for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 03 March 2023 and signed on its behalf by:
............................ A. Barkatullah Trustee
Page 5
Muslim Institute Trust Ltd Independent Examiners Report
Independent Examiner's Report to the trustees of Muslim Institute Trust Ltd
I report to the charity trustees on my examination of the financial statements of Muslim Institute Trust Ltd for the year ended 30 June 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:
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accounting records were not kept in accordance with section 386 of the 2006 Act ; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the Charities SORP (FRS 102).
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.
Yasar Khan (ACA) Incisive Accounting Limited 52 Grosvenor Gardens London SW1W 0AU 03 March 2023
Page 6
Muslim Institute Trust Ltd Statement of Financial Activities
for the year ended 30 June 2022
| Notes Income and endowments from: Donations and legacies 4 Investments 5 Total Expenditure on: Charitable activities 6 Other 7 Total Net gains on investments Net (expenditure)/income 8 Transfers between funds Net (expenditure)/income before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2022 £ 6,516 94,579 |
Total funds 2022 £ 6,516 94,579 |
Total funds 2021 £ 9,419 81,961 |
|---|---|---|---|
| 101,095 85,594 41,706 |
101,095 85,594 41,706 |
91,380 59,594 27,779 |
|
| 127,300 - |
127,300 - |
87,373 - |
|
| (26,205) - |
(26,205) - |
4,007 - |
|
| (26,205) | (26,205) | 4,007 | |
| (26,205) 1,998,289 |
(26,205) 1,998,289 |
4,007 1,994,282 |
|
| 1,972,084 | 1,972,084 | 1,998,289 |
Page 7
Muslim Institute Trust Ltd Summary Income and Expenditure Account
for the year ended 30 June 2022
| Income Interest and investment income Gross income for the year Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the year Net (expenditure)/income before tax for the year Net (expenditure )/income for the year |
2022 £ 6,516 94,579 101,095 127,300 - 127,300 (26,205) (26,205) |
2021 £ 9,419 81,961 |
|---|---|---|
| 91,380 | ||
| 86,904 469 |
||
| 87,373 | ||
| 4,007 | ||
| 4,007 |
Page 8
Muslim Institute Trust Ltd Balance Sheet
at 30 June 2022
| Company No. 07258525 Notes 2022 £ Fixed assets Tangible assets 10 1,775,660 1,775,660 Current assets Debtors 11 6,598 Cash at bank and in hand 197,742 204,340 Creditors:Amount falling due within one year 12 (7,916) Net current assets 196,424 Total assets less current liabilities 1,972,084 Net assets excluding pension asset or liability 1,972,084 Total net assets 1,972,084 The funds of the charity Restricted funds 13 Unrestricted funds 13 General funds 1,972,084 1,972,084 Reserves 13 Total funds 1,972,084 |
2021 £ 1,777,066 |
|---|---|
| 1,777,066 - 224,152 |
|
| 224,152 (2,929) |
|
| 221,223 1,998,289 |
|
| 1,998,289 | |
| 1,998,289 | |
| 1,998,289 | |
| 1,998,289 | |
| 1,998,289 |
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 30 June 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 03 March 2023
And signed on its behalf by:
A. Barkatullah
Trustee
03 March 2023
Page 9
Muslim Institute Trust Ltd Notes to the Accounts
for the year ended 30 June 2022
- 1 Accounting policies
Basis of preparation
The financial statements 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 the Companies Act 2006.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
-
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
-
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
-
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
-
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
-
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
-
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 10
Muslim Institute Trust Ltd Notes to the Accounts
Expenditure
-
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
-
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
-
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
-
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Furniture & fixtures
25% Reducing
Freehold investment property
Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.
Stocks
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Page 11
Muslim Institute Trust Ltd Notes to the Accounts
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.
All exchange differences are are taken into account in arriving at net income/expenditure.
Leased assets
Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs. Assets held under finance leases are depreciated in the same way as owned assets.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
Page 12
Muslim Institute Trust Ltd Notes to the Accounts
2 Company status
The company is a private company limited by guarantee and consequently does not have share capital.
3 Statement of Financial Activities - prior year
| 3 Statement of Financial Activities - prior year |
|||
|---|---|---|---|
| Income and endowments from: Donations and legacies Investments Total Expenditure on: Charitable activities Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 4 Income from donations and legacies Voluntary income 5 Income from investments Rental income |
Unrestricted £ 6,516 6,516 Unrestricted £ 94,579 94,579 |
Unrestricted funds 2021 £ 9,419 81,961 91,380 42,494 44,879 87,373 4,007 4,007 4,007 1,994,282 1,998,289 Total 2022 £ 6,516 6,516 Total 2022 £ 94,579 94,579 |
Total funds 2021 £ 9,419 81,961 |
| 91,380 42,494 44,879 |
|||
| 87,373 | |||
| 4,007 | |||
| 4,007 | |||
| 4,007 1,994,282 |
|||
| 1,998,289 | |||
| Total 2021 £ 9,419 |
|||
| 9,419 | |||
| Total 2021 £ 81,961 |
|||
| 81,961 |
Page 13
Muslim Institute Trust Ltd Notes to the Accounts
6 Expenditure on charitable activities
| 6 Expenditure on charitable activities |
|||
|---|---|---|---|
| Expenditure on charitable activities Speaker and events Wages and salaries Staff pensions Contribution to Critical Muslim publication Governance costs Independent examiner fees Legal and professional Bank charges 7 Other expenditure Premises costs Amortisation, depreciation, impairment, profit/loss on disposal of fixed assets General administrative costs 8 Net (expenditure)/income before transfers This is stated after charging: Depreciation of owned fixed assets 9 Staff costs No employee received emoluments in excess of £60,000. |
Unrestricted £ 16,205 37,791 794 26,117 1,632 3,004 51 85,594 Unrestricted £ 40,778 - 928 41,706 2022 £ - |
Total 2022 £ 16,205 37,791 794 26,117 1,632 3,004 51 85,594 Total 2022 £ 40,778 - 928 41,706 |
Total 2021 £ 2,483 36,539 617 17,100 1,200 1,608 47 |
| 59,594 | |||
| Total 2021 £ 25,944 469 1,366 |
|||
| 27,779 | |||
| 2021 £ 469 |
Page 14
Muslim Institute Trust Ltd Notes to the Accounts
10 Tangible fixed assets
| Cost or revaluation At 1 July 2021 Disposals At 30 June 2022 Depreciation and impairment At 1 July 2021 Disposals At 30 June 2022 Net book values At 30 June 2022 At 30 June 2021 11 Debtors Other debtors 12 Creditors: amounts falling due within one year Other taxes and social security Other creditors 13 Movement in funds Restricted funds: Unrestricted funds: General funds Total funds |
Land and buildings £ 1,775,660 - 1,775,660 - - - 1,775,660 1,775,660 At 1 July 2021 1,998,289 1,998,289 |
Land and building £ - - - - - - - - 2022 £ 6,598 6,598 2022 £ - 7,916 7,916 Incoming resources (including other gains/losses ) £ 101,095 101,095 |
Furniture & fixtures £ 2,500 (2,500) - 1,094 (1,094) - - 1,406 Resources expended £ (127,300) (127,300) |
Total £ 1,778,160 (2,500) |
|---|---|---|---|---|
| 1,775,660 | ||||
| 1,094 (1,094) |
||||
| - | ||||
| 1,775,660 | ||||
| 1,777,066 | ||||
| 2021 £ - |
||||
| - | ||||
| 2021 £ 1,729 1,200 |
||||
| 2,929 | ||||
| At 30 June 2022 £ 1,972,084 |
||||
| 1,972,084 |
Page 15
Muslim Institute Trust Ltd Notes to the Accounts
14 Analysis of net assets between funds
| 14 Analysis of net assets between funds | |||
|---|---|---|---|
| Fixed assets Net current assets 15 Reconciliation of net debt Cash and cash equivalents Net debt |
At 1 July 2021 £ |
Unrestricted funds £ 1,775,660 196,424 1,972,084 Cash flows £ |
Total £ 1,775,660 196,424 |
| 1,972,084 | |||
| At 30 June 2022 £ |
|||
| 224,152 | (26,410) | 197,742 | |
| 224,152 224,152 |
(26,410) (26,410) |
197,742 | |
| 197,742 |
16 Related party disclosures
Controlling party
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 16