## **THE CITY OF KNOWLEDGE ACADEMY**
(a company limited by guarantee)
## **REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
**Company No. 07246107 Charity No. 1137342**
## **THE CITY OF KNOWLEDGE ACADEMY**
## **CONTENTS**
FOR THE YEAR ENDED 31 DECEMBER 2023
||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 2023
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 2023.
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||
||Mohammad Ansari||
|**Key Management Team:**|Shaykh Mohammad Aslam|(Chief Executive)|
||Tauseef Rehman|(Programmes Manager)|
|**Independent Examiner:**|Wahid Gazge FCA||
||Cliveden Avenue||
||Birmingham||
||B42 1SW||
|**Bankers:**|Metro Bank||
||119 High Street||
||Solihull||
||B91 3SR||
|**Solicitors:**|Womble Bond Dickinson||
||The Spark, Draymans Way||
||Newcastle Helix||
||Newcastle-upon-Tyne||
||NE4 5DE||
3
## **THE CITY OF KNOWLEDGE ACADEMY**
**TRUSTEES’/DIRECTORS’ REPORT** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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 periodically.
## **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 (2022: £NIL).
## **Related parties**
There were no related party transactions in the year to 31 December 2023, or the prior year.
## **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:-
- A regular review of the risks which the Charity may face;
- The adequacy of current systems and procedures to mitigate those risks identified in the strategy; and
- Implementation of procedures designed to minimise potential risk to the Charity should any such risks materialise.
The strategy will be reviewed regularly by the Trustees.
4
## **THE CITY OF KNOWLEDGE ACADEMY**
## **TRUSTEES'/DIRECTORS’ REPORT**
FOR THE YEAR ENDED 31 DECEMBER 2023
## **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’):
- To advance the religion of Islam in accordance to the mainstream Ahl-us-Sunnah Wal-al-Jamma’ah;
- To advance the education of the public through the teaching of the Islamic faith;
- The relief of poverty, sickness and distress;
- To provide recreational facilities and activities in the interests of social welfare with the object of improving conditions of life for those persons in need of such facilities;
- For any other exclusively charitable purpose, according to the laws of England and Wales, as the Trustees may, from time to time, determine.
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:
- That the aims of the Charity continue to be charitable;
- That the aims and work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;
- That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and
- • That there is no detriment or harm arising from the aims or activities.
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
## **THE CITY OF KNOWLEDGE ACADEMY**
**TRUSTEES'/DIRECTORS’ REPORT** FOR THE YEAR ENDED 31 DECEMBER 2023
## **ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR**
## **Courses for Adults and children**
The Charity continued to run a number of courses like its long running Beginning of Guidance courses in Solihull and Banbury, and expanded to run other one-off courses on various subjects in Bradford, Sheffield, Birmingham, Derby, Accrington and Nottingham. During Ramadan, Short Taraweeh prayers were organised again this year catering for over 1,000 attendees.
## **Dar ul Quran**
As part of an international speakers tour, Shaykh Mohammad Aslam (Chief Executive) was invited to Turkey again in 2023 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 2022, fundraising continued into 2023, and payments of almost £198k have been sent to the school there. 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, and to the Charity ‘Rehalat al-Shams’ through whom this project is being delivered in Istanbul, Turkey.
## **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 £9,500 was distributed from donated general funds.
## **REVIEW OF FINANCIAL POSITION**
During the 2023 financial year, the Charity delivered a financial deficit of £227,110 (2022: surplus of £118,822). This deficit arose primarily due to the spending of restricted funds collected in prior years for the Dar ul Quran educational grants project for refugees’ education abroad in Turkey. Income decreased by 34% to £119,698 compared to £182,393 in 2022, while over the same period expenditure increased by 546% to £346,808 from £63,571 in 2022, the difference mainly being the usage of restricted funds, most of which were collected over the prior two periods.
Expenditure on fixed assets capitalised during the year amounted to £Nil (2022: £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 £29,230 (2022: £197,290). This is in relation to the leftover funds for Dar ul Quran project and is expected to be fully spent by the end of 2024.
6
## **THE CITY OF KNOWLEDGE ACADEMY**
**TRUSTEES'/DIRECTORS’ REPORT** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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 2023, the charity held unrestricted reserves of £34,785 (31 December 2022: £93,835).
## **Going Concern**
The Charity reported a significant cash outflow of £225,034 for the year primarily due to the spending of restricted funds collected in prior years for the Dar ul Quran educational grants project for refugees’ education abroad in Turkey but expects to make an inflow in 2024.
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**
We have a number of plans for the forthcoming year in addition to continuing the work and courses started in the current year:-
- Expand the Beginning of Guidance course to other cities across the UK
- Launch a children’s programme to build on the success of the online course for children run during the lockdowns
- Organise more one-day lectures and tours around the UK and abroad
7
## **THE CITY OF KNOWLEDGE ACADEMY**
**TRUSTEES'/DIRECTORS’ REPORT** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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:
- a. select suitable accounting policies and then apply them consistently;
- b. make judgements and estimates that are reasonable and prudent; and
- c. 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 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 29 May 2024, 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 2023
## **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 2023 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:
- examine the financial statements under section 145 of the Act;
- follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Act; and
- state whether particular matters have come to my attention
## **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:-
- 1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 386 of the Companies Act 2006; and
- to prepare financial statements which accord with the accounting records and comply with accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
- 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: 29 May 2024
9
## **THE CITY OF KNOWLEDGE ACADEMY**
**STATEMENT OF FINANCIAL ACTIVITIES** (Including income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2023
|**Note**
**Unrestricted**
**Funds**
**£**
**Income from:**
Donations and legacies 2
**8,325**
Charitable activities 3
**81,852**
Other income 4
**Total income**
**Expenditure on:**
Raising funds 5
Charitable activities 6
**Total expenditure**
**-**
**_________**
**90,177**
**_________**
**-**
**149,227**
**_________**
**149,227**
**Net income/(expenditure)**
**before transfer**
**Transfers between funds**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought
forward at 31 December 2022
**Total funds carried**
**forward at 31 December 2023**
**_________**
**(59,050)**
**-**
**_________**
**(59,050)**
**93,835**
**_________**
**34,785**
|**Restricted**
**Funds**
**£**
**29,521**
**-**
**-**
**_________**
**29,521**
**_________**
**-**
**197,581**
**_________**
**197,581**
**_________**
**(168,060)**
**-**
**_________**
**(168,060)**
**197,290**
**_________**
**29,230**
|**Total**
**2023**
**£**
Unrestricted
Funds
£
**37,846**
20,361
**81,852**
74,974
**-**
**_________**
**119,698**
**_________**
**-**
**346,808**
**_________**
**346,808**
686
_________
96,021
_________
112
61,459
_________
61,571
**_________**
**(227,110)**
**-**
**_________**
**(227,110)**
**291,125**
**_________**
**64,015**
_________
34,450
-
_________
34,450
59,385
_________
93,835
|Restricted
Funds
£
84,372
-
2,000
_________
86,372
_________
-
2,000
_________
2,000
_
_
_________
84,372
-
_________
84,372
112,918
_________
197,290
_
|Total
2022
£
104,733
74,974
2,686
________
182,393
_______
112
63,459
________
63,571
________
118,822
-
________
118,822
172,303
________
291,125
|
|---|---|---|---|---|
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 2023
|**2023**
**Note**
**£**
**Fixed assets**
Tangible assets
12
**Current assets**
Debtors
13
**926**
Cash at bank and in hand
22
**66,260**
**_________**
**67,186**
**Liabilities**
Creditors: amounts falling due
within one year
14
**(3,171)**
**_________**
**Net current assets**
**Total net assets**
**Funds of the charity**
Unrestricted funds: General funds
Restricted funds
16
17
**Total charity funds**
18
|2022
**£**
£
**-**
-
291,294
________
291,294
(250)
_________
**64,015**
**_________**
**64,015**
**_________**
**34,785**
**29,230**
_________
**64,015**
|£
81
291,044
_________
291,125
|
|---|---|---|
|||_________
93,835
197,290
_________
291,125
|
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 2023, 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 29 May 2024 & 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 2023
|**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|**2023**
**£**
**(225,034)**
**-**
**_________**
**-**
**_________**
**(225,034)**
**_________**
**291,294**
**_________**
**66,260**
|2022
£
(120,176)
-
_________
-
_________
(120,176)
_________
171,118
_________
291,294
|
|---|---|---|
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 2023
## **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 2023
## **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 2023
## **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 2023 was a year where the Charity managed to resume its prepandemic level of running educational courses both within the UK and abroad. Together with the continuation in fundraising for educational projects for refugees in Turkey, which began in the pandemic, has meant that the Charity has had a good financial year, helping it to rebuild some general reserves which it had depleted during the pandemic period.
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
**8,325**
|**Restricted**
**Funds**
**£**
**29,521**|**Total**
**2023**
**£**
**37,846**
|Total
2022
£
104,733
|
|---|---|---|---|
15
## **THE CITY OF KNOWLEDGE ACADEMY**
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
## **3 Income from charitable activities**
|**Unrestricted**
**Funds**
**£**
Course and event fees
**Total income from charitable activities**
**81,852**
**_________**
**81,852**
**_________**
**4**
**Other income**
**Unrestricted**
**Funds**
**£**
Other
**Total other income**
**-**
**_________**
**-**
**_________**
**5**
**Raising funds**
**Unrestricted**
**Funds**
**£**
Printing and marketing
Fundraising events
**Total expenditure on raising funds**
**-**
**-**
**_________**
**-**
**_________**
**6**
**Expenditure on charitable activities**
**Unrestricted**
**Funds**
**£**
Hardship grants
Dar ul Quran grant payments
Courses and events costs
**9,500**
**-**
**103,068**
Salaries and wages
IT costs
Vehicle and travel costs
Insurances
Depreciation
Governance costs
Other costs
**16,027**
**8,964**
**7,678**
**309**
**81**
**3,250**
**350**
**_________**
**149,227**
|**Restricted**
**Funds**
**£**
**-**
**_________**
**-**
**_________**
**Restricted**
**Funds**
**£**
**-**
**_________**
**-**
**_________**
**Restricted**
**Funds**
**£**
**-**
**-**
**_________**
**-**
**_________**
**Restricted**
**Funds**
**£**
**-**
**197,581**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**_________**
**197,581**|**Total**
**2023**
**£**
**81,852**
**_________**
**81,852**
**_________**
**Total**
**2023**
**£**
**-**
**_________**
**-**
**_________**
**Total**
**2023**
**£**
**-**
**-**
**_________**
**-**
**_________**
**Total**
**2023**
**£**
**9,500**
**197,581**
**103,068**
**16,027**
**8,964**
**7,678**
**309**
**81**
**3,250**
**350**
**_________**
**346,808**|Total
2022
£
74,974
_________
74,974
_________
Total
2022
£
2,686
_________
2,686
_________
Total
2022
£
112
-
_________
112
_________
Total
2022
£
4,800
-
27,672
16,026
426
12,230
1,163
98
1,044
-
_________
63,459|
|---|---|---|---|
16
## **THE CITY OF KNOWLEDGE ACADEMY**
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
|**7**
**Net incoming resources for the year**
This is stated after charging:-
Operating leases - vehicle
Independent examiner’s fee
Depreciation and impairment charges|**2023**
**£**
**4,114**
**250**
**81**
|2022
£
9,102
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 2023 (2022: £Nil).
Trustees’ expenses related to costs of Trustees’ meetings totalled £Nil (2022: £Nil).
|**9**
**Employees**
**Number of employees**
Key management personnel
**Employment costs**
Salaries and wages
Social security costs
Pensions costs
|**2023**
**Head**
**Count**
**2**
**_____**
**2**
**2023**
**£**
**16,027**
**-**
**-**
**_________**
**16,027**
|2022
Head
Count
2
2
2022
£
16,026
-
-
_________
16,026
|
|---|---|---|
No employee received remuneration amounting to more than £60,000 in the period (2022: 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 £16,027 (2022: £16,026).
No employees were made redundant in the year (2022: None).
17
**THE CITY OF KNOWLEDGE ACADEMY**
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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 2022, 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 (2022: £Nil). At the year-end £Nil was owed to the pension scheme (2022: £Nil).
## **11 Volunteers**
Whilst the majority of the charity’s work undertaken is fulfilled by the key management personnel, 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 and would like to publicly thank them all.
## **12 Fixed Assets**
|
**Cost**
At 31 December 2022
Additions
At 31 December 2023
**Depreciation**
At 31 December 2022
Charge for the year
At 31 December 2023
**Net book value**
**At 31 December 2023**
At 31 December 2022
|**Furniture &**
**Equipment**
**£**
2,655
-
2,655
2,574
81
2,655
**-**
81
|**Total**
**£**
2,655
-
2,655
2,574
81
2,655
**-**
81
|
|---|---|---|
18
## **THE CITY OF KNOWLEDGE ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
|**13**
**Debtors**
Prepayments
Other debtors
**14**
**Creditors:** **amounts falling due within one year**
Accruals
Other creditors
**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**
**2022**
**resources**
**£**
**£**
General funds
93,835
**90,177**
________
**Total Unrestricted funds**
93,835
**90,177**
|**Resources**
**expended**
**£**
**(149,227)**
**(149,227)**
|**_**
|**2023**
**£**
2022
£
**926**
**-**
**-**
**-**
**________**
**_________**
**926**
**________**
**-**
**_________**
**2023**
2022
**£**
£
**500**
**2,671**
250
-
**________**
_________
**3,171**
**________**
250
_________
**2023**
**£**
2022
£
**66,260**
**926**
**________**
**67,186**
**________**
291,330
-
_________
291,330
_________
**500**
**2,671**
250
-
**________**
_________
**3,171**
**________**
250
_________
**Transfer**
**Balance at**
**Between**
**31 December**
**Funds**
**2023**
**£**
**£**
**-**
**34,785**
**-**
**34,785**
|
|---|---|---|---|
|||**_**
**_**
||
|||**_**
**_**
||
|||**_**
**_**
||
|||**_**
||
19
## **THE CITY OF KNOWLEDGE ACADEMY**
## **NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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**
**2022**
**£**
Dar ul Quran
197,290
**Total Restricted funds**
197,290
|**Incoming**
**resources**
**£**
**29,521**
_________
**29,521**
|**Resources**
**expended**
**£**
**(197,581)**
**(197,581)**
|**Transfer**
**Balance at**
**Between**
**31 December**
**Funds**
**2023**
**£**
**£**
**-**
**29,230**
**-**
**29,230**
|
|---|---|---|---|
## **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 remaining current funds completely by the end of 2024. The delivery of this project is performed through the a registered charity, called ‘Rehalat al-Shams’ through whom this project is being delivered in Istanbul, Turkey.
## **18 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**£**
Fund balances at 31 December 2023 are
represented by:-
Fixed assets
**-**
Net current assets
**34,785**
**_________**
**34,785**
**_________**
Unrestricted
funds
£
Fund balances at 31 December 2022 were
represented by:-
Fixed assets
81
Net current assets
93,754
_________
93,835
|**Restricted**
**funds**
**£**
**-**
**29,230**
**_________**
**29,230**
**__________**
Restricted
funds
£
-
197,290
_________
197,290
|**Total**
**£**
**-**
**64,015**
**_________**
**64,015**
|
|---|---|---|
|||**_________**
Total
£
81
291,044
_________
291,125
|
20
## **THE CITY OF KNOWLEDGE ACADEMY**
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
## **19 Commitments under operating leases**
## **As lessee:**
As at 31 December 2023, the company had commitments under non-cancellable operating leases as follows:
|Within one year
Between one and two years|**Vehicle**
**2023**
2022
**£**
£
**4,936**
**-**
4,936
4,936|
|---|---|
## **20 Related parties**
There were no related party transactions in the year to 31 December 2023 or the prior year.
|**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**
**£**
291,294
_________
291,294
|**2023**
**£**
**(227,110)**
**81**
**(926)**
**2,921**
_________
**(225,034)**
_________
**2023**
**£**
**66,260**
_________
**66,260**
_________
**Cashflows**
**in year**
**£**
**(225,034)**
_________
**(225,034)**
|2022
£
118,822
98
1,506
(250)
_________
120,176
_________
2022
£
291,294
_________
291,294
_________
**At end**
**of year**
**£**
**66,260**
**_________**
**66,260**|
|---|---|---|---|
21
## **THE CITY OF KNOWLEDGE ACADEMY**
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 DECEMBER 2023
## **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 Central Jamia Mosque Ghamkol Sharif (CJMGS) has been unilaterally suspended since June 2021 by CJMGS trustees and the contract is now in dispute between both parties. The trustees of CK have decided for now to not recognise the contract income beyond the amounts paid in 2021 whilst discussions and legal avenues are explored. The Trustees of CK are awaiting the conclusion of the Charity Commission’s Statutory Inquiry into the CJMGS charity and its Trustees before making any decision regarding reparations.
22