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2021-12-31-accounts

THE CITY OF KNOWLEDGE ACADEMY

(a company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Company No. 07246107 Charity No. 1137342

THE CITY OF KNOWLEDGE ACADEMY

CONTENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page
Trustees'/Directors’ report 3 - 8
Independent Examiner’s report 9
Statement of financial activities 10
Balance sheet 11
Cash flow statement 12
Notes to the financial statements 13 - 22

2

THE CITY OF KNOWLEDGE ACADEMY

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their report and the audited financial statements for the year ended 31 December 2021.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP), 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).

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity number: 1137342
Company number: 07246107
Registered office: 236 St Bernards Road
Solihull
B92 7BH
Trustee Directors: Imran Dawood
Arslaan Khan
Sheraz Raja Sarwar (appointed on 17/04/2021)
Mohammad Ansari (appointed on 20/04/2021)
Abdul Qayum (resigned on 17/04/2021)
Key Management Team: Shaykh Mohammad Aslam (Chief Executive)
Tauseef Rehman (Programmes Manager)
Independent Examiner: Wahid Gazge FCA
Cliveden Avenue
Birmingham
B42 1SW
Bankers: Barclays Bank Plc
534 Coventry Road
Birmingham
B10 0UP
Solicitors: Arkwright Law
58 Talbot Street
Nottingham
NG1 5GL

3

THE CITY OF KNOWLEDGE ACADEMY

TRUSTEES’/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation, The City of Knowledge Academy (CK) is a charitable company and is also registered as a charity. The company was incorporated on 06 May 2010 (Company number 07246107) and established under a Memorandum of Association (as last updated on 10 November 2020), which established the objects and powers of the charitable company and is governed under its Articles of Association. The charity was registered with the Charity Commission on 09 August 2010, with Charity number 1137342.

Recruitment and appointment of trustees

The Board of Trustees currently consists of four members who were recruited due to their commitment and expertise. Role descriptions, where applicable, are issued to each Trustee and a full induction is given setting out the obligations of a Trustee. List of current Trustees can be found on page 3 of this document.

Organisational structure

The Charity is principally based in Birmingham but operates throughout the UK and sometimes abroad. The Trustees are responsible for the governance of the Charity, and the day-to-day management is performed by the Chief Executive, Programmes Manager and volunteers.

Trustees

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Pay and remuneration of senior staff

Levels of salary for staff are reviewed annually.

Fundraising activities

The Charity had no significant fundraising activities in the year but raised funds through voluntary donations received from regular donors as well as donations received from online giving through advertised through social media.

Political Donations

No donations of monies or donated goods were made to any political parties or political campaigns in the year (2020: £NIL).

Related parties

The Chief Executive is the son of trustee, Abdul Qayum, who resigned on 17 April 2021. The Chief Executive was paid £8,031 in the year to 31 December 2021 and £8,031 in the year to 31 December 2020, for his services to the Charity.

Key risks and uncertainties

The Trustees actively review the major risks which the Charity faces on a regular basis, in particular those relating to its operations and finances. They are satisfied that systems are in place to mitigate the charity’s exposure to the major risks. The risk management strategy comprises:-

The strategy will be reviewed regularly by the Trustees.

4

THE CITY OF KNOWLEDGE ACADEMY

TRUSTEES'/DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

OBJECTIVES AND ACTIVITIES

The charity’s objects for which the company/charity is established are to be affected anywhere in the world (‘Area of Benefit’):

The City of Knowledge Academy (CK) aims to advance a true understanding of Islam through disseminating the mainstream Ahl-us-Sunnah Wal-al-Jamma’ah methodology.

CK believes that all people, Muslim or not, of all ages have a right to know true Islam. The Charity places specific importance to the young generations of Muslims growing up in Birmingham and the UK generally. Providing correct teachings to them will not only advance their knowledge but also be a barrier that prevents them from corrupt and distorted tendencies.

We aim to provide traditional Islamic learning to all ages. Our policy is to use modern techniques to serve the presentation of knowledge in a friendly manner. Our conviction is that knowledge can only be truly learnt if it is ‘lived’. Hence, our motto is, ‘to learn it is to live it’.

HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT

The section of this report above entitled ‘Objectives and Activities’ sets out the aims and priorities of the Charity.

The Trustees have considered this matter, in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit, and have concluded:

The Board of Trustees has had due regard to the Charity Commission guidance on public benefit and has complied with the duty in section 4 of the Charities Act 2011.

5

TRUSTEES'/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

THE CITY OF KNOWLEDGE ACADEMY

ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Courses for Adults and children

Due to the continued UK lockdowns and restrictions, face-to-face courses could not resume in 2021 and an alternative online course was delivered instead which brought much benefit to students worldwide and was delivered for free.

Mosque & Academy Management Project

In 2020, CK agreed to work in partnership with one of the largest Mosque charities in Birmingham, ‘Central Jamia Mosque Ghamkol Sharif’ (CJMGS), as they were restructuring the management of delivery for their charitable activities. CK had already been operating out of the Mosque’s Education building since 2019 when it was given occupancy to work from there. The project, which included our Charity contracting with the Mosque, was to manage CJMGS’s activities and online presence for its Mosque and Madrassah while their trustees concentrated on maintaining the buildings and assets of their charity. The partnership was deemed beneficial to both charities, as CJMGS would benefit from the good reputation of CK and its known ability to deliver engaging courses for both adults and children, in order to fulfil their objects for which they didn’t believe they currently had the capacity to deliver on. Whilst the work for the partnership began starting on 10 July 2020, after a number of delays during Covid and a breakdown in relationship between both parties, the contract was unilaterally suspended by CJMGS and discussions around the future of the partnership remain on-going.

Dar ul Quran

As part of an international speakers tour, Shaykh Mohammad Aslam (Chief Executive) was invited to Turkey in 2020 and saw the work of a local education and youth centre charity for Syrian refugees, which is where the refugee children get their education and it was in need of funding. CK has the charitable objects of i) advancing the Islamic religion, ii) educating the public about Islam, iii) relieving poverty, sickness and distress and iv) providing recreational facilities and activities in the interests of social welfare, anywhere in the world. This project seemed like a project which was combining all these objects and so after management and the Trustees reviewed a proposal from Dar ul Quran, it was decided to support them with grant funding and a after an initial social media fundraising campaign in October 2020, fundraising continued into 2021. CK are thankful to the hundreds of donors for this project and have started to send funds in phases to the school in line with an agreed funding plan. CK expects to have expended this fund completely by the end of 2023.

Hardship grants

During the continued pandemic, we had a number of people who approached us for hardship grants. These applications were reviewed and where appropriate, grants were given. A total of £5,000 was distributed from general funds.

REVIEW OF FINANCIAL POSITION

During the 2021 financial year, the Charity delivered a financial deficit of £16,212 (2020: surplus of £147,568). This deficit arose primarily due to the significant decrease in course fees as all face-to-face courses were discontinued during the new lockdown restrictions in 2021 and the alternative course delivered online was delivered for free. Income decreased by 52% to £116,536 compared to £224,558 in 2020, while over the same period expenditure increased by 72% to £132,748 from £76,990 in 2020, the difference mainly being the usage of restricted funds from the prior year.

Expenditure on fixed assets capitalised during the year amounted to £NIL (2020: £Nil), in congruence with our capitalisation policy. Fixed assets are used for charitable purposes and enable staff and volunteers to provide an optimum service to the public.

There is an end of year restricted fund balance of £112,918 (2020: £94,563). This is in relation to the Dar ul Quran project and is expected to be fully spent by the end of 2023.

6

THE CITY OF KNOWLEDGE ACADEMY

TRUSTEES'/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

REVIEW OF FINANCIAL POSITION (cont.)

Reserves Policy

The Trustee Board reviews and updates its reserves policy annually to ensure its compliance with Charity Commission best practice. This requires reserves to be available to cover future contingencies and liabilities. The Charity holds unrestricted funds which have been provided to the charity via donations and generated income. Under the terms of the donations, the charity must retain the assets in perpetuity and can only use the income to support its charitable activities.

The unrestricted general funds of the Charity represent income earned but not yet utilised in supporting charitable activities. At 31 December 2021, the charity held unrestricted reserves of £59,385 (31 December 2020: £93,952).

Going Concern

The Charity reported a significant cash outflow of £45,729 for the year mostly due to using restricted funds from the prior year and expects to make an outflow in 2022 also for similar reasons. The work of the Charity in the year ending 31 December 2021 continued to be significantly affected by Covid-19 restrictions, which led to the charity not resuming its face-to-face courses in major cities and instead ran a couple of online courses. This however is expected to return to normal during 2022 as UK restrictions around face-to-face meetings lift. Once any final restrictions are lifted all activities and faceto-face course delivery will be reviewed on a per need basis and whilst we expect most courses to resume face-to-face, we intend some courses to remain online in order to allow continued participation of students from all over the UK and abroad.

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 these financial statements.

FUTURE PLANS

Post-pandemic restrictions, the Charity expects to work on resuming its well-known Beginning of Guidance courses in cities across the UK and hopes to work with many community groups in and around Birmingham around delivering courses and activities for the younger generation.

The Charity further hopes to resume delivering its popular retreats both in the UK and abroad and intends to continue hosting lecture tours with both UK speakers and international, as well as further expanding its 1 million followers on social media platforms to promote our objectives over the internet.

The charity has also recruited new trustees with the aim of improving its governance and increasing its strategic leadership potential with new perspectives.

7

THE CITY OF KNOWLEDGE ACADEMY

TRUSTEES'/DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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 and charity law requires the trustees to prepare financial statements for each financial year. Under that law, the directors 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 company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the trustees are required to:

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 requirements of 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.

ACCOUNTS PREPERATION

The Trustees confirm that the accounts comply with current statutory requirements, and with those of the governing instrument.

The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the same Act.

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

The Trustees’ report was approved by the board, authorised for issue on 09 March 2022, and signed on its behalf by,

Mohammad Ansari Trustee

8

THE CITY OF KNOWLEDGE ACADEMY

INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Independent examiner’s report to the Trustees of The City of Knowledge Academy

I report on the financial statements of the charity for the year ended 31 December 2021 which are set out on pages 10 to 22.

This report is made solely to the charity’s Trustees, as a body, in accordance with section 145 and the regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Respective responsibilities of Trustees and Examiner

The Trustees, who are also the Directors of the Company for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed.

Having satisfied myself that the company is not subject to audit under charity or company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the Trustees, concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

Independent examiner’s statement

In the course of my examination, no matter has come to my attention:-

have not been met; or

2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Wahid Gazge FCA Cliveden Avenue Birmingham B42 1SW

Dated: 09 March 2022

9

THE CITY OF KNOWLEDGE ACADEMY

STATEMENT OF FINANCIAL ACTIVITIES (Including income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Unrestricted
Funds
£
Income from:
Donations and legacies 2
8,705
Charitable activities 3
19,393
Other income 4
Total income
Expenditure on:
Raising funds 5
Charitable activities 6
Total expenditure
5,083
___
33,181
___
176
67,572
___
67,748
Net income/(expenditure)
before transfer
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought
forward at 31 December 2020
Total funds carried
forward at 31 December 2021
___
(34,567)
-
___
(34,567)
93,952
___
59,385
 Restricted
Funds
£
83,355
-
-
___
83,355
___
-
65,000
___
65,000
___
18,355
-
___
18,355
94,563
___
112,918
 Total
2021
£
Unrestricted
Funds
£
92,060
7,394
19,393
114,642
5,083
___
116,536
___
176
132,572
___
132,748
7,959
_
129,995
_
7,363
69,627
_
76,990
___
(16,212)
-
___
(16,212)
188,515
___
172,303
_
53,005
-
_
53,005
40,947
_
93,952
 Restricted
Funds
£
94,563
-
-
_
94,563
_________
-
-
_________
-




______
94,563
-
_
94,563
-
_
94,563
_

 Total
2020
£
101,957
114,642
7,959
_
224,558
_
7,363
69,627
_
76,990
_
147,568
-
_
147,568
40,947
_
188,515

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

The notes on pages 13 to 22 form part of these financial statements.

10

THE CITY OF KNOWLEDGE ACADEMY

BALANCE SHEET AS AT 31 DECEMBER 2021

2021 2020
Note £ £ £
 £
Fixed assets
Tangible assets 12 179 276
Current assets
Debtors 13 1,506 1,622
Cash at bank and in hand 22 171,118 216,847
___ __
172,624 218,469
Liabilities
Creditors: amounts falling due
within one year 14 (500) (30,230)
___ ___
Net current assets 172,124 188,239
___ ___
Total net assets 172,303 188,215
___ ___
Funds of the charity
Unrestricted funds: General funds 16 59,385 93,952
Restricted funds 17 112,918 94,563
___ ___
Total charity funds 18 172,303
___		 188,515
___

The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 (effective January 2019).

For the year ended 31 December 2021, the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

The financial statements were approved by the Trustees on 09 March 2022 & signed on their behalf, by:

Mohammad Ansari Trustee

The notes on pages 13 to 22 form part of these financial statements.

11

THE CITY OF KNOWLEDGE ACADEMY

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash flows from operating activities:
Net cash provided by operating activities
21
Cash flows from investing activities:
Purchase of fixed assets
12
Net cash provided by investing activities
Increase / (decrease) in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
22		 2021
£
(45,729)
-
___
-
___
(45,729)
___
216,847
___
171,118
 2020
£
177,389
-
_
-
_
177,389
_
39,458
_
216,847

The notes on pages 13 to 22 form part of these financial statements.

12

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Charitable Company Information

The City of Knowledge Academy is a private limited charitable company, limited by guarantee, by not having share capital incorporated and domiciled in England & Wales. The registered office is 236 St Bernards Road, Solihull, B92 7BH and the company registration number is: 07246107.

1 Accounting Policies

1.1 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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The City of Knowledge Academy meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in Sterling and rounded to the nearest £1.

1.2 Fund accounting

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

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs 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.

1.3 Income

All income is included in the statement of financial activities when the charity is entitled to the funds and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Voluntary income is received by way of grants, donations and gifts, including gift aid income where applicable, and is included in full in the statement of financial activities when receivable. Income from government and other grants, where related to performance and specific deliverables, are accounted for when it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Donated services and facilities are included at the value to the charity where this can be quantified and is material. The value of services provided by volunteers has not been included in these accounts.

13

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies (continued)

1.5 Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Expenditure on raising funds; comprise the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to its activities and those costs of an indirect nature necessary to support them.

Currently, there are not multiple project streams to which costs are attributable in the Charity and so all costs of the charity are costed and reported on as one main activity. As such, no apportionment for support costs between activities is required nor reported.

1.6 Operating leases

The charity classifies the lease of its vehicle as an operating lease; the title to the vehicle remains with the lessor with no immediate right to purchase the vehicle at the end of the lease. Rental charges are charged on a straight-line basis over the term of the lease.

1.7 Taxation

The charitable company, being a registered charity with minimal trading income, has been granted exemption from tax under Section 505 of the Income and Corporation Taxes Act 1988. No provision for taxation has therefore been made in these accounts.

1.8 Tangible fixed assets and depreciation

All assets individually costing more than £1,000 are capitalised.

Tangible fixed assets are stated at cost less depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, as follows:

Furniture & Equipment - 25% on the straight-line method

1.9 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.

1.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Creditors and provisions

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.

14

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies (continued)

1.12 Pensions and retirement benefits

The charity operates a defined contribution scheme but currently all employees have opted-out of the scheme.

1.13 Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

1.14 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the Financial Statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The directors consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies above.

1.15 Going concern

The work of the Charity in the year ending 31 December 2021 continued to be significantly affected by Covid-19 restrictions, which led to the charity not resuming its face-to-face courses in major cities and instead ran a couple of online courses. This however is expected to return to normal during 2022 as UK restrictions around face-to-face meetings lift. Once any final restrictions are lifted all activities and face-to-face course delivery will be reviewed on a per need basis and whilst we expect most courses to resume face-to-face, we intend some courses to remain online in order to allow continued participation of students from all over the UK and abroad.

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 these financial statements.

2

Donations and legacies
Unrestricted
Funds
£
Donations and gifts
8,705
 Restricted
Funds
£
83,355		 Total
2021
£
92,060
 Total
2020
£
101,957

15

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3 Income from charitable activities

Unrestricted
Funds
£
Course and event fees
CJMGS contract
Total income from charitable activities
1,893
17,500
___
19,393
___
4
Other income
Unrestricted
Funds
£
JRS Grant
Other
Total other income
3,204
1,879
___
5,083
___
5
Raising funds
Unrestricted
Funds
£
Printing and marketing
Fundraising events
Total expenditure on raising funds
176
-
___
176
___
6
Expenditure on charitable activities
Unrestricted
Funds
£
Hardship grants
Dar ul Quran grant payments
Courses and events costs
5,000
-
29,061
Salaries and wages
IT costs
Vehicle and travel costs
Insurances
Depreciation
Governance costs
16,026
8,798
6,637
1,666
97
287
___
67,572
 Restricted
Funds
£
-
-
___
-
___
Restricted
Funds
£
-
-
___
-
___
Restricted
Funds
£
-
-
___
-
___
Restricted
Funds
£
-
65,000
-
-
-
-
-
-
-
___
65,000		 Total
2021
£
1,893
17,500
___
19,393
___

Total
2021
£
3,204
1,879
___
5,083
___

Total
2021
£
176
-
___
176
___

Total
2021
£
5,000
65,000
29,061
16,026
8,798
6,637
1,666
97
287
___
132,572		 Total
2020
£
79,642
35,000
___
114,642
_
Total
2020
£
7,959
-
___
7,959
_
Total
2020
£
7,002
361
___
7,363
_
Total
2020
£
4,200
-
33,745
16,026
6,533
6,499
1,542
98
984
_
69,627

16

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

7
Net incoming resources for the year
This is stated after charging:-
Operating leases - vehicle
Independent examiner’s fee
Depreciation and impairment charges		 2021
£
3,542
250
97

 2020
£
4,723
250
98

8 Trustees

During the current or previous year no remuneration or benefits for services as a director/trustee have been paid or were payable, directly or indirectly, out of the funds of the charity to any trustee or to any person known to be connected with them.

Reimbursement of travel and incidental expenses to the trustees came to £Nil during the year to 31 December 2021 (2020: £Nil).

Trustees’ expenses related to costs of Trustees’ meetings totalled £Nil (2020: £Nil).

9
Employees



Number of employees
Key management personnel

Employment costs
Salaries and wages
Social security costs
Pensions costs


_
 2021
Head
Count
2

2

2021
£
16,026
-
-
__
16,026
 __
 2020
Head
Count
2
2
2020
£
16,026
-
-
_
16,026

No employee received remuneration amounting to more than £60,000 in the period (2020: Nil)

The key management personnel of the Charity comprise the Chief Executive and Programmes Manager. The total employee benefits in the year of the key management personnel of the Charity were £16,026 (2020: £16,026).

No employees were made redundant in the year (2020: None). The total cost of redundancy payments amounted to £Nil (2020: £Nil for zero redundancies). The policy of the charity is to recognise redundancy payments in full when they become due.

17

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10 Pensions

There is a defined contribution pension scheme setup for employees. However, there are currently no employees on the scheme as all employees have opted out of the scheme. From April 2017 and again in April 2021, CK automatically enrolled eligible jobholders into a qualifying scheme in accordance with pensions legislation. The assets of the scheme are held separately from those of the company in an independently administered fund. However, there are currently no employees on the scheme as all employees have opted out of the scheme. The fund is a Personal Pension Scheme with NEST. The pension cost charge for the year represents contributions payable by the charitable company to the fund and amounted to £Nil (2020: £Nil). At the year-end £Nil was owed to the pension scheme (2020: £Nil).

11 Volunteers

The Trustee Board and Key management personnel recognise the tremendous contribution made by our volunteers without whom the Charity could not operate as widely as it does. This year the amount of time volunteers were able to provide help to deliver courses and hold events was significantly reduced due to the Covid requirements to stay at home. A small group of volunteers however, has been helping throughout, within required safety guidelines but the vast majority of the work undertaken has been by the key management personnel.

12 Fixed Assets


Cost
At 31 December 2020
Additions

At 31 December 2021


Depreciation
At 31 December 2020
Charge for the year

At 31 December 2021

Net book value
At 31 December 2021

At 31 December 2020
 Furniture &
Equipment
£
2,655
-


2,655


2,379
97


2,476


179


276

 Total
£
2,655
-
2,655
2,379
97
2,476
179
276

18

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13
Debtors
Prepayments
Other debtors
14
Creditors: amounts falling due within one year
Accruals
Partner funds
15
Financial instruments
Financial assets
Financial assets measured at fair value through profit & loss:
- Cash at bank and in hand
- Debtors
Financial liabilities
Financial assets measured at fair value through profit & loss:
- Accruals
- Other creditors
16 Unrestricted funds
Balance at
31 December
Incoming
2020
resources
£
£
General funds
93,952
33,181



Total Unrestricted funds
93,952
33,181

 Resources
expended
£
(67,748)

(67,748)		 _
 2021
£
2020
£
1,162
344
1,278
344
__
_
1,506
__
1,622
_
2021
2020
£
£
250
250
-
29,980
__
_
250
__
30,230
_
2021
£
2020
£
171,118
1,506
__
172,624
__
216,847
1,622
_
218,469
_
250
-
250
29,980
__
_
250
__
30,230
_
Transfer
Balance at
Between
31 December
Funds
2021
£
£
-
59,385


-
59,385
_
_
_
_
_
_
_

19

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of funds received for specific purposes:

Balance at
31 December
2020
£
Dar ul Quran
94,563


Total Restricted funds
94,563
 Incoming
resources
£
83,355


83,355
 Resources
expended
£
(65,000)


(65,000)
 Transfer
Balance at
Between
31 December
Funds
2021
£
£
-
112,918


-
112,918

 Transfer
Balance at
Between
31 December
Funds
2021
£
£
-
112,918


-
112,918
112,918

Restricted Fund Descriptions

Dar ul Quran

This is a fund designed to support a school and youth centre in Turkey for Syrian refugees. An online fundraising campaign has brought in funds to help support the school and the management and trustees of CK have started to send funds in phases to the school in line with an agreed funding plan. CK expects to have expended this fund completely by the end of 2023.

18 Analysis of net assets between funds

Unrestricted
funds
£
Fund balances at 31 December 2021 are
represented by:-
Fixed assets
179
Net current assets
59,206

___

59,385
___

Unrestricted
funds
£
Fund balances at 31 December 2020 were
represented by:-
Fixed assets
276
Net current assets
93,676

___

93,952
 Restricted
funds
£
-
112,918
___
112,918
____
Restricted
funds
£
-
94,563
___
94,563		 Total
£
179
172,124
___
172,303
___
Total
£
276
188,239
___
188,515

20

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

19 Commitments under operating leases

As lessee:

As at 31 December 2021, the company had commitments under non-cancellable operating leases as follows:

Within one year
Between one and two years		 Vehicle
2021
2020
£
£
-
-
3,542
-

20 Related parties

The Chief Executive is the son of trustee, Abdul Qayum, who resigned on 17 April 2021. The Chief Executive was paid £8,031 in the year to 31 December 2021 and £8,031 in the year to 31 December 2020, for his services to the Charity.

21
Reconciliation of cash flows from operating activities
Net income / (expenditure) for the reporting period
Add: Depreciation charge
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
22
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
22A
Analysis of changes in net debt

Cash

At start

of year
£

216,847

___

216,847

 2021
£
(16,212)
97
116
(29,730)
_
(45,729)
_
2021
£
171,118
_
171,118
_

Cashflows

in year
£
(45,729)
___
(45,729)
 2020
£
147,568
98
(507)
30,230
_
177,389
_
2020
£
216,847
___
216,847
___
At end
of year
£
171,118
___
171,118

21

THE CITY OF KNOWLEDGE ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23 Members liability and ultimate controlling party

The Charity was formed as a company limited by guarantee on 06 May 2010 (Company Number: 07246107). The full name of the charity is, The City of Knowledge Academy, and was registered with the Charity Commission on 09 August 2010 (Charity Number: 1137342).

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees do not consider there to be an ultimate controlling party.

24 Post balance sheet events

– Partnership contract The partnership contract with CJMGS has been unilaterally suspended since June 2021 by CJMGS trustees and the contract is now in dispute between both parties due to a difference of opinion on the project management and deliverables for the project. The trustees of CK have decided for now to not recognise the contract income beyond the amounts paid in 2021 whilst discussions are on-going.

22