DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**Company Registered number: 07031673 Charity Registered number: 1137219** 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED** 

**31 AUGUST 2021** 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

|**Contents**|**Pages**|
|---|---|
|Company information|1|
|Trustees' report|2 - 4|
|Auditors' report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Cash flow statement|10|
|Notes to the financial statements|11 - 18|





DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) COMPANY INFORMATION** 

## **Trustees** 

Professor David Ford Professor Abdel Haleem Professor Lejla Demiri Dr Ali Almihdar Dr Sohaira Zahid Siddiqui Dr Muhammad Arfan Ismail (resigned 31 January 2021) Dr Timothy Winter (appointed 30 October 2020) Mustafa Davies (appointed 4 December 2021) Dr Haroon Sidat (appointed 4 December 2021) 

## **COMPANY REGISTERED NUMBER** 

## **CHARITY REGISTERED NUMBER** 

07031673 (England and Wales) 

1137219 (England and Wales) 

## **REGISTERED OFFICE** 

14 St Paul's Road Cambridge CB1 2EZ 

## **AUDITORS** 

Chater Allan LLP Statutory Auditors Beech House 4a Newmarket Road Cambridge CB5 8DT 

## **PRINCIPAL BANKERS** 

HSBC Bank PLC 63-64 St Andrews Street Cambridge CB2 3BZ 

## **SOLICITORS** 

Ashton Legal Solicitors Cambridge Chequers House 77-81 Newmarket Road Cambridge CBS BEU 

1 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021** 

## **Trustees/Directors** 

The Trustees are pleased to present the Trustees Report together with the financial statements of the charity for the year ended 31 August 2021, which are also prepared to meet the requirements for a Directors’ Report and accounts for Companies Act purposes. Members of the Board of Trustees are ‘Directors’ for the purposes of company law and ‘Trustees’ for the purpose of charity law. They will be referred to as Trustees throughout this document and for the purposes of the financial statements. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

Memorandum and Articles of Association Incorporated 28 September 2009. 

## **Appointment of trustees** 

Election by simple majority. Candidates must be nominated by a member entitled to vote not less than fourteen or more than thirty five days before the date of the meeting. Such nomination to be signed by the nominator and the nominee accompanied by all details required by Companies house and the Charity Commission for England and Wales. 

New trustees are made familiar with the College’s operations and other issues relevant to the trustees' duties. 

## **Risk management** 

The agenda of each Annual General Meeting contains an item under which the trustees consider potential risks faced by the charity, which is considered sufficient to identify and manage risks facing the charity. 

## **Arrangements for setting pay and remuneration of key management personnel** 

Cambridge Muslim College uses Cambridge University pay grade scale as a reference for setting pay and remuneration for its staff and key management personnel. 

## **Day to day delegation of management** 

Working under the overall direction of the Board of Trustees, the College management team headed by the College Principal is entrusted to perform day to day functions of the College 

## **OBJECTIVES AND ACTIVITIES** 

To advance the religion of Islam for the public benefit in accordance with the beliefs and practices of the four recognised Sunni schools of thought, including the provision of education and training of Muslim leaders and scholars to work in the United Kingdom and elsewhere, and through this to promote and advance religious and racial harmony within the United Kingdom. 

## **PUBLIC BENEFIT** 

Free accommodation and/or living costs and tuition fees for on average 10-15 full-time students are available internally from the College for those who can demonstrate sufficient financial need (after taking into account any assistance that they may already be receiving from external scholarships). 

The College serves not only the interests of the Muslim community but the wider community, by encouraging Muslim faith leaders to play a leading part in building bridges with other religious groups, in order to enhance social cohesion and mobility, and to overcome negative perceptions of Muslims in society. The College aims to facilitate access to higher education among its graduates. 

The College welcomes applications from both genders, and intends to enhance greater participation by women in the life of the Muslim community. 

2 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021** 

## **DIRECTORS AND MEMBERS OF THE BOARD OF TRUSTEES** 

The Directors and Members of the Board of Trustees who served during the year were: 

- Professor David Ford 

- Professor Abdel Haleem 

- Professor Lejla Demiri 

- Dr Ali Almihdar 

- Dr Sohaira Zahid Siddiqui 

- Dr Muhammad Arfan Ismail (resigned 31 January 2021) •        Dr Timothy Winter (appointed 30 October 2020) 

## **REVIEW OF ACTIVITIES** 

The second cohort of students for our BA in Islamic Studies, accredited by the Open University, have completed their first year of studies. The third cohort of BA students are currently undergoing their foundational year of Arabic Language tuition and will start the first year of BA studies in 2022/23. For this cohort we are bringing the Arabic Language course in-house. The BA was recently reaccredited by the Open University and our academic advisors continue to be very satisfied with its ongoing evolution. 

Our new Postgraduate Diploma in Islamic Psychology has proven to be highly popular, resulting in a significant increase in quantity and calibre of applicants for the 2022/23 course which in turn has led to a significantly expanded intake. 

The College arranged several public lectures and events (online and virtually) given by internationally-known speakers in various subject areas of interest to the College. More online courses are being developed, and it is hoped these will also serve to prove an effective shop-window for would-be future full-time students and/or future Patrons, Donors & supporters. 

## **FINANCIAL REVIEW** 

Incoming resources for the year amounted to £3,340,426 (2020: £1,161,374), which was mainly comprised of donations. Expenditure amounted to £922,152 (2020: £823,720), mainly on education, teaching and scholarship activities. 

The closing balance of total reserves is £6,356,787 which has increased from £3,931,503 from the previous year. Restricted reserves totalled £64,592 an increase of £62,085 in the previous year. 

The company is dependent on donated income which by its very nature is an uncertain source of income. The Trustees aim to have a reserve level of approximately 6 months' of expenditure, slightly higher than if income was more certain. Unrestricted expenditure for 6 months is estimated at £349,411. Free reserves at the end of the year were £705,933. 

## **PLANS FOR FUTURE PERIODS** 

The Trustees are very satisfied with the progress of the BA & the launch of the Postgraduate Diploma in Islamic Psychology, and therefore have approved the renewal of the Postgraduate Diploma for 2022/23. Further research activity is now being sponsored by the University of Birmingham and the John Templeton foundation, amongst others. 

The Trustees are continuing to work on the launch of a revived taught Diploma in Contextual Islamic Studies, a further expansion of Research activity, online/virtual Continuing Education courses and exploring avenues for securing endowments for the College. Recently the College has started to hold outdoor events, and with the expansion of student activity that all of this entails, the College has been raising funds to expand its facilities. 

3 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021** 

## **GOING CONCERN** 

COVID 19 has had an impact on the College being able to hold events, in-house face-to-face tuition, and rental income. All external events have been postponed or cancelled until recently, however the College had continued to provide a first-class education to its students during this difficult period whilst ensuring the safety and wellbeing of its students and staff in doing so. COVID-19 hasn't had a significant financial impact on the College, with face-to-face events having been replaced by online/virtual events and courses, face-to-face tuition being replaced by video conferencing, and rental income not being a significant source of income. The encouraging news is that worst of the pandemic appears to be behind us now and to that end we have successfully reintroduced face-to-face tuition and events. No-one will  miss the pandemic, however it has enabled the College to reach out to a wider audience through developing its online content. Thanks to this and the continued generous support of its benefactors, the College remains in a stable financial position with no risk to its ability to continue its operations as a going concern. 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. 

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the income, expenditure and financial activities of the charity for that year. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies then 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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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. 

So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the charity’s auditors are unaware, and each trustee has taken steps that he or she ought to have taken as a trustee in order to make himself or herself aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. 

## **Auditors** 

The auditors, Chater Allan LLP will be proposed for re-appointment at the forthcoming Annual General Meeting. 

This report, which has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities and in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small entities. 

This report was approved by the Trustees on 26th May 2022 and signed on their behalf, by: 

…………………………………………………. 

**Dr Sohaira Zahid Siddiqui Trustee** 

4 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee)** 

## **Opinion** 

We have audited the financial statements of Cambridge Muslim College, (the charitable company) for the year ended 31 August 2021 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern�** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the trustees' annual report , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

5 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee)** 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Matters on which we are to required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities Regulations 2008 requires us to report to you if, in our opinion: 

- The information given in the financial statements is inconsistent in any material respect with the trustees' report; or 

- The charitable company has not kept adequate accounting records; or 

- The Financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require of our audit. 

## **Responsibilities of Trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that act 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

6 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee)** 

## **Auditor’s responsibilities for the audit of the financial statements (continued)** 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and company specific experience, through discussion with the Directors (as required by auditing standards), and from inspection of the company's regulatory correspondence, and we discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indication to non-compliance throughout the audit; the audit team are deemed both competent and capable of identifying non-compliance with rules and regulations. 

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the company is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the company. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid-19 on the risk of fraud. We did not identify any instances of fraud during the course of our audit. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of any actual or suspected non-compliance with laws and regulations. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilites.  This description forms part of our auditors report 

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

Naomi Hedger (Senior Statutory Auditor) For and on behalf of Chater Allan LLP Chartered Accountants & Statutory Auditors Beech House 4a Newmarket Road Cambridge CB5 8DT 

30 May 2022 Date: 

Chater Allan LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 

7 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the Income and Expenditure Account) FOR THE YEAR ENDED 31 AUGUST 2021** 

|**Notes**<br>**Income from:**<br>Grants and donations<br>2<br>Charitable activities<br>4<br>Other trading activities<br>3<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>5<br>**Total expenditure**<br>7<br>Net (losses)/gains on investments<br>**Net income/(expenditure)**<br>Transfer between funds<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**£**<br>2,932,803<br>110,098<br>9,439<br>3,052,340<br>712,322<br>712,322<br>7,010<br>2,347,028<br>16,171<br>2,363,199<br>3,928,996<br>6,292,195|**Restricted**<br>**Fund**<br>**£**<br>226,892<br>59,844<br>1,350<br>288,086<br>209,830<br>209,830<br>-<br>78,256<br>(16,171)<br>62,085<br>2,507<br>64,592|**2021**<br>**2020**<br>**Total**<br>**Total**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>3,159,695<br>978,670<br>169,942<br>116,475<br>10,789<br>66,229<br>3,340,426<br>1,161,374<br>922,152<br>823,720<br>922,152<br>823,720<br>7,010<br>3,582<br>2,425,284<br>341,236<br>-<br>-<br>2,425,284<br>341,236<br>3,931,503<br>3,590,267<br>6,356,787<br>3,931,503|
|---|---|---|---|



## **Continuing Operations** 

None of the charity's activities were discontinued during the current or previous year. All of the charity's activities are continuing. 

The notes on pages 11 to 18 form part of these financial statements. 

8 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**Registered number: 07031673** 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) BALANCE SHEET AS AT 31 AUGUST 2021** 

|**Notes**<br>**Fixed Assets**<br>Tangible assets<br>10<br>Investments<br>11<br>**Current Assets**<br>Debtors<br>12<br>Cash at bank and in hand<br>**Liabilities**<br>Creditors: amounts falling due<br>within one year<br>13<br>**Net Current Assets**<br>**Liabilities**<br>Creditors: amounts falling due<br>14<br>within one year<br>**Net Assets**<br>**The funds of the charity:**<br>Restricted Funds<br>16<br>Unrestricted Funds<br>16<br>**Total charity funds**|**2021**<br>**£**<br>5,688,748<br>67,343<br>5,756,091<br>24,572<br>991,832<br>1,016,404<br>(415,708)<br>600,696<br>-<br>6,356,787<br>64,592<br>6,292,195<br>6,356,787|**2020**<br>**£**<br>3,581,992<br>62,479|
|---|---|---|
|||3,644,471|
|||83,853<br>644,355|
|||728,208<br>(283,676)|
|||444,532|
|||(157,500)|
|||3,931,503|
|||2,507<br>3,928,996|
|||3,931,503|



The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. 

The financial statements were approved by the board of directors on 26th May 2022 and signed on its behalf by: 


## **Dr Sohaira Zahid Siddiqui Trustee** 

The notes on pages 11 to 18 form part of these financial statements. 

9 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021** 

||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Cash flows from operating activities:**|||
|Net cash provided by operating activities|2,535,281|331,779|
|**Cash flows from investing activities:**|||
|Acquisition of investments|(797)|(863)|
|Disposal of investments|2,943|-|
|Purchase of property, plant and equipment|(2,189,950)|(9,658)|
|Net cash provided by investing activities|(2,187,804)|(10,521)|
|**Change in cash and cash equivalents in the**|||
|**reporting period**|347,477|321,258|
|**Cash and cash equivalents at the beginning**|||
|**of the reporting period**|644,355|323,097|
|**Cash and cash equivalents at the end of the**|||
|**reporting period**|991,832|644,355|
|**Cash and cash equivalents at the end of the**|||
|**reporting period**|||
|Cash at bank and in hand|991,832|644,355|
||991,832|644,355|
|**Reconciliation of net income/(expenditure) to net cash flow from operating activities**|||
||**2021**|**2020**|
||**£**|**£**|
|Net income/ (expenditure) for the reporting period|2,425,284|341,236|
|Adjustments for:|||
|Depreciation charges|83,194|73,126|
|(Gains)/losses on investments|(7,010)|(3,582)|
|(Increase)/decrease in debtors|59,281|8,017|
|Increase/(decrease) in creditors|(25,468)|(87,018)|
|Net cash provided by operating activities|2,535,281|331,779|



10 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **1. STATEMENT OF ACCOUNTING POLICIES** 

## **1.1 Basis of preparation of financial statements** 

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), 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 (FRS102) (effective 1 January 2015) and the Companies Act 2006. 

Cambridge Muslim College meets the definition of a public benefit entity under FRS 102. 

The presentation currency of the financial statements is the Pound Sterling (£). 

## **1.2 Company status** 

The company is limited by guarantee. The members of the company are the trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. 

## **1.3 Fund accounting** 

General funds are unrestricted funds which are available for use at the direction of the trustees in the furtherance of the general objectives of the company and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

## **1.4 Income** 

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

- The donor specifies that the grant or donation must only be used in future accounting years; or 

- The donor has imposed conditions, which must be met before the charity has unconditional entitlement. 

Investment income is included when receivable. 

## **1.5 Expenditure** 

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Expenditure includes any VAT which cannot be fully recovered. 

11 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)** 

## **1.6 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. 

## **1.7 Creditors and provisions�** 

Creditors and provisions are recognised where Cambridge Muslim College 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. 

## **1.8 Going concern** 

The Trustees have a reasonable expectation that the college has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the potential impact on the company of the current global pandemic known as COVID-19. In the opinion of the Trustees there will be no material adverse effect on the company's ability to continue. The trustees believe the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. 

## **1.9 Tangible fixed assets and depreciation** 

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: 

Land Not depreciated Building 2% per annum straight line Furniture and equipment 25% per annum straight line 

The Trustees have estimated the value of land in proportion to the land and building and have considered that an estimate of 20% of the original purchase costs is reasonable and should not be depreciated. 

## **1.10 Investments** 

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. 

All gains and losses are taken to the SOFA as they arise.  Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the fair value at the year end and opening carrying value (purchase date if later). 

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. 

12 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

||**Unrestricted**|**Restricted**|**2021**|**2020**|
|---|---|---|---|---|
||**funds**|**Fund**|**Total**|**Total**|
||**£**|**£**|**£**|**£**|
|**2. DONATIONS AND LEGACIES**|||||
|Donations|2,932,803|226,892|3,159,695|978,670|
||2,932,803|226,892|3,159,695|978,670|
|**3. TRADING ACTIVITIES**|||||
|Rental income|8,776|1,350|10,126|64,208|
|Other trading activities|663|-|663|2,021|
||9,439|1,350|10,789|66,229|
|**4. INCOME FROM CHARITABLE ACTIVITIES**|||||
|Education and teaching|110,098|59,844|169,942|116,475|
||110,098|59,844|169,942|116,475|
|**5. CHARITABLE EXPENDITURE AND GOVERNANCE COSTS**|||||
|Education and teaching (including depreciation)|255,150|209,830|464,980|564,634|
|Support costs<br>(note 6)|452,372|-|452,372|254,286|
|Governance costs|4,800|-|4,800|4,800|
||712,322|209,830|922,152|823,720|
|The charity incurs support costs in the form of fundraising and||administration|costs and are|allocatted on a|
|50:50 basis between charitable activities and other general activities.|||||
|**6. SUPPORT COSTS**|||||
|Education and teaching|226,186|-|226,186|127,143|
|Other general activites|226,186|-|226,186|127,143|
||452,372|-|452,372|254,286|



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DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **7. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE** 

|**Staff costs**<br>**Depreciation Other Costs**<br>**& Amortisation**<br>**£**<br>**£**<br>**£**<br>Education, teaching and admin<br>147,390<br>83,194<br>234,396<br>Support costs<br>202,628<br>-<br>249,744<br>Governance costs<br>-<br>-<br>4,800<br>350,018<br>83,194<br>488,940<br>**8. NET INCOME**<br>The excess of expenditure over income is stated after charging:<br>Depreciation of fixed assets - owned by the charity<br>Auditors' remuneration<br>**9. STAFF COSTS**<br>Wages and salaries<br>Social security costs<br>Other pension costs<br>The average monthly number of employees during the year was as follows:<br>Project workers and administrative staff|**2021**<br>**Total**<br>**£**<br>464,980<br>452,372<br>4,800<br>922,152<br>**2021**<br>**£**<br>83,194<br>4,800<br>**2021**<br>**£**<br>301,851<br>31,019<br>17,148<br>350,018<br>**2021**<br>8|**2020**<br>**Total**<br>**£**<br>564,634<br>254,286<br>4,800|
|---|---|---|
|||823,720|
|||**2020**<br>**£**<br>73,126<br>4,800|
|||**2020**<br>**£**<br>281,490<br>24,454<br>6,275|
|||312,219|
|||**2020**<br>9|



No employee received remuneration totalling to more than £60,000 in either this year or the previous year. 

One member of the Board received remuneration of £4,416 (2020: £49,260) in his then capacity as the Dean. 

14 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **10. TANGIBLE FIXED ASSETS** 

||||
|---|---|---|
|**10. TANGIBLE FIXED ASSETS**<br>**Freehold**<br>**Land and**<br>**Buildings**<br>**£**<br>**Cost:**<br>At 1 September 2020<br>4,077,113<br>Additions<br>2,189,950<br>At 31 August 2021<br>6,267,063<br>**Depreciation:**<br>At 1 September 2020<br>509,981<br>Charge for year<br>76,105<br>At 31 August 2021<br>586,086<br>**Net book value:**<br>At 31 August 2021<br>5,680,977<br>At 31 August 2020<br>3,567,132<br>Fixed assets are all used for charitable purposes.<br>**11. INVESTMENTS**<br>At 1 September 2020<br>Additions<br>Disposals<br>Realised gains/(losses)<br>Unrealised (losses)/gains<br>At 31 August 2021<br>The historical cost of the investments at 31 August 2021 was £42,705.<br>**12. DEBTORS**<br>Prepayments and accrued income<br>Other debtors|**Furniture &**<br>**Equipment**<br>**£**<br>54,644<br>-<br>54,644<br>39,784<br>7,089<br>46,873<br>7,771<br>14,860<br>**2021**<br>**£**<br>62,479<br>797<br>(2,943)<br>-<br>7,010<br>67,343<br>**2021**<br>**£**<br>5,422<br>19,150<br>24,572|**Total**<br>**£**<br>4,131,757<br>2,189,950|
|||6,321,707|
|||549,765<br>83,194|
|||632,959|
|||5,688,748|
|||3,581,992|
|||**2020**<br>**£**<br>58,034<br>863<br>-<br>-<br>3,582|
|||62,479|
|||**2020**<br>**£**<br>3,164<br>80,689|
|||83,853|



15 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

## **CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

|**13. CREDITORS: amounts falling due within one year**<br>Social security and other taxes<br>Other creditors<br>Accruals and deferred income<br>Long term loan - current portion<br>The loan is payable by equal installements of £157,500 per annum.<br>The loan is secured on the Perne Road property.<br>**14. CREDITORS: amounts falling due more than one year**<br>Long term loan<br>**15. ANALYSIS OF NET ASSETS BETWEEN FUNDS**<br>**Unrestricted**<br>**Restricted**<br>**Funds**<br>**Funds**<br>**£**<br>**£**<br>Fixed assets<br>5,756,091<br>-<br>Current assets<br>951,812<br>64,592<br>Current liabilities<br>(415,708)<br>-<br>Long term loan<br>-<br>-<br>6,292,195<br>64,592<br>**16. MOVEMENT IN FUNDS**<br>**At 1**<br>**September**<br>**Incoming**<br>**Outgoing**<br>**2020**<br>**Resources**<br>**Resources**<br>**£**<br>**£**<br>**£**<br>Unrestricted Funds<br>3,928,996<br>3,052,340<br>(705,312)<br>Resticted Funds:<br>COSARAF Fund<br>-<br>4,000<br>(4,000)<br>Aziz Foundation Fund<br>1,891<br>56,609<br>(57,329)<br>-<br>15,000<br>-<br>BCI<br>-<br>51,844<br>(34,663)<br>Randeree<br>-<br>64,624<br>(64,624)<br>Al Tarmidhi Foundation<br>616<br>-<br>-<br>Templeton<br>-<br>51,009<br>(43,864)<br>Zouq Foundation<br>-<br>20,000<br>(3,850)<br>Salonica<br>-<br>15,000<br>(1,500)<br>Alassar<br>-<br>10,000<br>-<br>2,507<br>288,086<br>(209,830)<br>Total funds<br>3,931,503<br>3,340,426<br>(915,142)<br>Perne Road Fund (Balance<br>Sheet contribution)|**2021**<br>**£**<br>9,219<br>7,594<br>241,395<br>157,500<br>415,708<br>-<br>-<br>**2021**<br>**Total**<br>**£**<br>5,756,091<br>1,016,404<br>(415,708)<br>-<br>6,356,787<br>**Transfers**<br>**£**<br>16,171<br>-<br>(1,171)<br>(15,000)<br>-<br>-<br>-<br>-<br>-<br>-<br>(16,171)<br>-|**2020**<br>**£**<br>5,828<br>2,034<br>118,314<br>157,500|
|---|---|---|
|||283,676|
|||157,500|
|||157,500|
|||**2020**<br>**Total**<br>**£**<br>3,644,471<br>728,208<br>(283,676)<br>(157,500)|
|||3,931,503|
|||**At 31**<br>**August**<br>**2021**<br>**£**<br>6,292,195<br>-<br>-<br>-<br>-<br>17,181<br>-<br>616<br>7,145<br>16,150<br>13,500<br>10,000|
|||64,592|
||||
|||6,356,787|



16 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **17. Restricted Funds (continued)** 

COSARAF -The Donation will be used to fund one scholarship per academic year for the BA (Hons) in Islamic Studies at the Cambridge Muslim College.  The scholarship will be known as the Sheikh Family Scholarship. 

Aziz Foundation - Muslim Leadership Development - to support the employment of 1x Professor (90% of his salary), 1x College Lecturer and 1x Student Mentor/Chaplain. 

Perne Road Fund (Balance Sheet contribution) - Donations received in the year to be spent on repaying the long term loan in respect of the 77 Perne Road acquisition. 

BCI - All the course costs (eg. tuition, accommodation, living, materials etc.) of a student selected by the College. 

Randeree - Tuition fees and related costs of designated students (excluding support they are getting from other external scholarships). 

Al Tarmidhi Foundation - Tuition fees and living costs of one student. 

Templeton - Defined research activity. 

Zouq Foundation - Tuition and/or accommodation for financially needy students of any programme. 

Salonica - Tuition and/or accommodation for financially needy students of any programme and research activity not already funded by other grants. 

Alassar - Tuition and/or accommodation for financially needy students of any programme. 

## **18. SHARE CAPITAL** 

The company is limited by guarantee and as such has no share capital. 

## **19. RELATED PARTY TRANSACTIONS** 

The charity is not controlled by any one individual. During the year there were no material related party transactions. 

## **20. OPERATING LEASE COMMITMENTS** 

|**OPERATING LEASE COMMITMENTS**|||
|---|---|---|
||**2021**|**2020**|
|At 31 August 2021, the company had the following operating lease commitments|||
|Due less than one year|33,600|33,600|
|Due after more than one year|-|-|
||33,600|33,600|



17 



DocuSign Envelope ID: B496241E-3FC0-43EE-93CE-F98B228F9145 

**CAMBRIDGE MUSLIM COLLEGE LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **22. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES** 

|**Income from:**<br>Donations and legacies<br>Charitable activities<br>Other trading activities<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>**Total expenditure**<br>Net (losses)/gains on investments<br>**Net income/(expenditure)**<br>Transfer between funds<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**£**<br>770,535<br>99,675<br>21,820<br>892,030<br>603,789<br>603,789<br>3,582<br>291,823<br>50,000<br>341,823<br>3,587,173<br>3,928,996|**Restricted**<br>**2020**<br>**Fund**<br>**Total funds**<br>**£**<br>**£**<br>208,135<br>978,670<br>16,800<br>116,475<br>44,409<br>66,229<br>269,344<br>1,161,374<br>219,931<br>823,720<br>219,931<br>823,720<br>-<br>3,582<br>49,413<br>341,236<br>(50,000)<br>-<br>(587)<br>341,236<br>3,094<br>3,590,267<br>-<br>2,507<br>3,931,503|
|---|---|---|



18