Charity registration number 1137663 (England and Wales) Company registration number 07173228
INVITATION TO ISLAM
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2024
INVITATION TO ISLAM
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Nazeem Ullah Mr Asif Butt Mr Jabar Choudhry Mr Nazeem Ullah Mr Saqib Razzaq Mr Shaheen Rajput Mr Saleem Rajput Charity number 1137663 Company number 07173228 Registered office 37 Erskine Road E17 6RZ
INVITATION TO ISLAM
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Statement of cash flows | |
| Notes to the financial statements | 7 - 11 |
INVITATION TO ISLAM
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 28 FEBRUARY 2024
The trustees present their annual report and financial statements for the year ended 28 February 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).
Objectives and activities
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To advance the teaching of Islam throughout world in accordance of Quran and Sunnah.
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- To relieve poverty.
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To advance education together with the building schools to the underprivileged.
Public Benefit
As a charity we are asked by the Charity Commission to consider whether our activities provide” a public benefit.” The Management Committee (Trustees) has considered this matter, in accordance with the latest guidance. It believes our services do provide a public benefit and therefore justify our charitable status. We have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission and in planning future activities.
The trustees have considered the Charity Commision's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Significant activities
1) Educational Awareness
Invitation to Islam (ITI) adapt the traditional method of educating and teaching the principle of Islam according to The Noble Quran and the teaching of Prophet Muhammad, as revealed by the God Al-mighty
“There shall be no compulsion in the religion” Quran 2:256
Invitation to Islam's (ITI) operations team visited around 46 villages during the year in Sierra Leone, Liberia and Guinea to deliver educational awareness programmes. The programmes consisted of a range of learning sessions that explained the principles of Islam to Muslims and non-Muslims. Learning materials including pens and pencils were also provided. Through these programmes roughly 1,700 people benefited and learned the Islamic faith and its tenants.
2) Mosques (Masajid)
ITI have an ongoing program of building community facilities, mosques and learning spaces/classrooms. In this accounting period ITI have completed 6 new places of worship in Guinee and Togo. These places of worship provide important public services such as space for congregational worship, learning areas relevant to the Islamic faith, support and advice and more generally a place for communities to engage with one another. The community hubs also act as places for the distribution of food and provide learning services for young people. The numbers of beneficiaries in each facility varies from between 200 to 700 regular users, these are a mixture of young and old, male and female.
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INVITATION TO ISLAM
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
3) Water Wells
The availability of fresh, clean drinking water is a daily challenge for the communities in the areas where ITI operate. Providing fresh water wells enable local communities to obtain clean drinking water that in turn reduces the risk of drinking polluted and unsafe water, access to these wells is not restricted to any one segment of the community. For this accounting period ITI have built 15 new fresh water wells in Guinee and Togo benefitting communities on a daily basis, we estimate that over 60,000 people make regular use of these wells.
4) Feeding Programs
ITI have been providing food for the poor and needy by feeding communities in different villages in Liberia, Guinea, Togo, Ghana, Sierra Leone and Benin, which are in West Africa, the food has been given to people of all faiths. Food is a basic necessity and is vital for survival, it also helps with nourishment, improving health and many thousands have benefited in all the different villages Invitation to Islam travel to. Alongside the feeding programs additional support has been provided to flood victims in response to localised Flood appeals, access to food and supplies is difficult at the best of times but even more challenging during natural disasters.
5) In Ramadhan many families and individuals do not have any food or little food to fulfil this obligatory act due to poverty and scarcity of food supply. Food is provided where possible in West Africa by supplying staples such as rice, lentils, flour, meat and bottled water. The countries where food is distributed is; Liberia, Togo, Ghana, Benin, Sierra Leone and Guinea. Gifts are handed to the families to celebrate Eid festivity and for general sustenance. Thousands of people benefitted from the distribution of food parcels.
Achievements and performance Financial review
Total income for the year amounted to £281,428 (2023: £368,309) while total expenditure for the year amounted to £264,197 (2023: £381,929).
Overall was surplus £17,231 (2023: net deficit £13,694).
Total funds of the charity carried forward was £171,739 (2023: £154,508)
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Jabar Choudhry Mr Nazeem Ullah Mr Saqib Razzaq Mr Saleem Rajput Nazeem Ullah
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INVITATION TO ISLAM
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
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 company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
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pay in accordance with the company's contractual and other legal obligations.
The trustees report was approved by the Board of Trustees.
.............................. Nazeem Ullah
Date: .............................................
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INVITATION TO ISLAM
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF INVITATION TO ISLAM
I report to the trustees on my examination of the financial statements of INVITATION TO ISLAM (the charity) for the year ended 28 February 2024.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Waqas Iqbal BSc ACA W Advisory Dated: 20 December 2024
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INVITATION TO ISLAM
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
| Unrestricted Restricted funds funds 2024 2024 Notes £ £ Income from: Charitable activities 3 36,673 244,755 Total income 36,673 244,755 Expenditure on: Charitable activities 4 19,442 244,755 Total expenditure 19,442 244,755 Net income/(expenditure) and movement in funds 17,231 - Reconciliation of funds: Fund balances at 1 March 2023 154,508 - Fund balances at 28 February 2024 171,739 - |
Total Unrestricted Restricted funds funds 2024 2023 2023 £ £ £ 281,428 48,814 319,495 281,428 48,814 319,495 264,197 37,360 344,569 264,197 37,360 344,569 17,231 11,454 (25,074) 154,508 143,054 25,074 171,739 154,508 - |
Total 2023 £ 368,309 368,309 381,929 381,929 (13,620) 168,128 154,508 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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INVITATION TO ISLAM
BALANCE SHEET
AS AT 28 FEBRUARY 2024
| Notes Current assets Debtors 9 Cash at bank and in hand Net current assets Income funds Unrestricted funds |
2024 £ 74 171,665 171,739 |
£ 171,739 171,739 171,739 |
2023 £ 74 154,434 154,508 |
£ 154,508 |
|---|---|---|---|---|
| 154,508 | ||||
| 154,508 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2024.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
.............................. Mr Nazeem Ullah Trustee
Company registration number 07173228
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INVITATION TO ISLAM
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2024
1 Accounting policies
Charity information
INVITATION TO ISLAM is a private company limited by guarantee incorporated in England and Wales. The registered office is 37 Erskine Road, E17 6RZ.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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INVITATION TO ISLAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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INVITATION TO ISLAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
1 Accounting policies
(Continued)
1.8 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from charitable activities
| Unrestricted Restricted funds funds 2024 2024 £ £ Education and Relief of Poverty Donations & legacies 36,673 244,755 Expenditure on charitable activities Charitable Expenditure Support Expenditure 2024 2024 £ £ Direct costs Education and Relief of Poverty 260,310 - Share of support and governance costs (see note ) Support - 3,887 260,310 3,887 Analysis by fund Unrestricted funds 15,555 3,887 Restricted funds 244,755 - 260,310 3,887 |
Total Unrestricted Restricted funds funds 2024 2023 2023 £ £ £ 281,428 48,814 319,495 Total Charitable Expenditure Support Expenditure 2024 2023 2023 £ £ £ 260,310 366,718 - 3,887 - 15,211 264,197 366,718 15,211 19,442 22,149 15,211 244,755 344,569 - 264,197 366,718 15,211 |
Total 2023 £ 368,309 |
|---|---|---|
| Total 2023 £ 366,718 15,211 |
||
| 381,929 | ||
| 37,360 344,569 |
||
| 381,929 |
4 Expenditure on charitable activities
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INVITATION TO ISLAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
| 5 | Net movement in funds | 2024 | 2023 |
|---|---|---|---|
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the independent examination of the charity's financial | |||
| statements | - | - |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | ||
|---|---|---|
| 2024 | 2023 | |
| Number | Number | |
| Total | - | - |
| There were no employees whose annual remuneration was more than £60,000. |
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
8 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
9 Debtors
| Amounts falling due within one year: Prepayments and accrued income Amounts falling due after more than one year: Prepayments and accrued income Total debtors |
2024 £ 74 2024 £ - 74 |
2023 £ - |
|---|---|---|
| 2023 £ 74 |
||
| 74 |
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INVITATION TO ISLAM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2024
10 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At General funds Previous year: At General funds |
1 March 2023 Incoming resources Resources expended At 28 February 2024 £ £ £ £ 154,508 36,673 (19,442) 171,739 1 March 2022 Incoming resources Resources expended At 28 February 2023 £ £ £ £ 143,054 48,814 (37,360) 154,508 |
|---|---|
11 Related party transactions
During the year, the charity trustees were reimbursed expenses for telephone, stationery and travel costs amounting to £936 (2023: £946).
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