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2020-12-31-accounts

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Report and Unaudited Financial Statements for the year ended 31 December 2020

Charity registration number: 1138665

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Contents of the financial statements for the year ended 31 December 2020

Page
Charity information 2
Trustees’ report 3 - 6
Independent examiner's report to the trustees 7
Statement of financial activities 8
Statement of financial position 9
Notes to the financial statements 10 - 12

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Charity information for the year ended 31 December 2020

Reference and Administrative Information

Charity Name: Dar-Al-Arqam (House of Arqam) Trust Charity number: 1138665 Operational address: 543-545 Cable Street London E1W 3HB

Trustees

Rajib Ahmed Chairman Joynal Hussain Treasurer Mohamed Afzal Bhaktary Sayed Miah Bilal Sheikh

Resigned on 15 May 2021 Appointed on 23 January 2021

Principal professional advisers

Bankers

HSBC Bank 75 Whitechapel Road London E1 1DU

Independent examiner

Maple Wharf Chartered Certified Accountants Unit 118, Craft Central The Forge 397-411 Westferry Road Isle of Dogs London, E14 3AE

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Trustees’ report for the year ended 31 December 2020

Objectives and activities

The Trustees present their report and the financial statements for the year ended 31 December 2020.

  1. To advance education and provide facilities, in particular but not exclusively for the Muslim community living in the United Kingdom, in the interests of social welfare for recreation and other leisure time occupation with the object of improving the conditions of life of such people.

  2. To promote for the benefit of the public the culture and history of the Muslim community living the United Kingdom, in particular but not exclusively, the London boroughs of Tower Hamlets and Newham.

Trustees and officers

The following served as Trustees and Officers during the year.

Trustees

Rajib Ahmed Chairman Joynal Hussain Treasurer Mohamed Afzal Bhaktary Sayed Miah Resigned on 15 May 2021 Bilal Sheikh Appointed on 23 January 2021

Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations. Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. The Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Trust.

In preparing these financial statements, the Trustees are required to:

The Trustees are also responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are also responsible for ensuring that adequate arrangements are in place to manage risk and uncertainty as expanded further on page 5. The Trustees confirm that they have paid due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when setting the charity’s objectives and planning its activities. This report explains the Charity’s activities and demonstrates how they contribute to the Charity’s purposes and provide public benefit.

3

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Trustees’ report - continued for the year ended 31 December 2020

Strategic report

The main activities undertaken in relation to those purposes during the year:

The main activities undertaken during the year to further the charity's purpose for the public benefit:

The charity has benefited the public by carrying out its objectives. Courses were established, as much as COVID-19 rules permitted, and open to residents of Tower Hamlets, Newham and other boroughs. There was an increase in online courses due to COVID-19 lockdown measures. All courses were freely accessible to the public; they were delivered in various languages to reach the ethnically diverse population.

In addition, educational materials were published in both short and long form media. There was also an increase in courses tailored to women to facilitate the growing female student base, and an accentuated increase in online activities during Ramadan to mitigate the impact of mosque closures on the Muslim community during the season.

The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.

The main achievements of the charity were as follows:

The difference the charity's performance during the year has made to the beneficiaries of the charity:

The beneficiaries have benefited in many ways because of the performance of the charity. They have received training in personal development, Islamic academia, upskilling and spirituality. They have found solace in the services offered during a difficult pandemic.

The degree to which the achievements and performance during the year have benefited wider society: The courses provided by the charity has benefited the society by facilitating learning in areas of personal development, Islamic academia, upskilling and spirituality, and ultimately increasing the utilitarian impact of our students and participants on the wider society.

The methods used to recruit and appoint new charity trustees:

There must be at least three trustees. Apart from the first trustees, every trustee must be appointed by a resolution of the trustees passed at a special meeting.

In selecting individuals for appointment as trustees, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.

The trustees must make available to each new trustee, on his or her first appointment:

4

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Trustees’ report - continued for the year ended 31 December 2020

The trustees must make available to each new trustee, on his or her first appointment:

Financial review

The financial results are set out in the Statement of financial activities on page 8.

The total income for the year amounted to £179,205.

Financial reserves

The Trustees will review reserves at least annually and maintain unrestricted reserves sufficient to maintain the Charity’s operations, in the event that income is unexpectedly reduced from current levels. The Trustees consider the probability of a reduction in and security of each source of income together with the ability to reduce the expenses.

Going concern

The Trustees consider that the Charity is in a strong position and is well placed to manage the operational risks. The current year surplus indicate that trustees have put adequate measures in place such as increased online courses, fundraising initiatives and cash flow projections taking into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure, to mitigate risks especially those incurring from COVID-19 and lockdown measures.

The Trustees therefore have a reasonable expectation that the organisation has sufficient resources to continue in operational existence for the foreseeable future and believe that there are no reasonable uncertainties that call into doubt the ability of Dar-Al-Arqam (House of Arqam) Trust to continue as a going concern.

Risk and uncertainty

The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable the financial statements comply with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102). They are also responsible for safeguarding the assets of Dar-Al-Arqam (House of Arqam) Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

5

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST Trustees, report - contlnued for the year ended 31 December 2020 The systems of Internal control are desl8ned to provlde reasonable. but not absolute. assurance a8alnst materlal mlsstatement or loss. They Include: Conslderatlon by the Truslees of flnanclal results and cash flow foretasts Delegatlon of authorlly and segregatlon of dutles, Includlng that all payments requlre the approval of two authorlsed slgnatorles Identlflcatlon and management of rlsks The Tru51ees have examlned the major rlsks whlch Dar-Al-Arqam (House of Arqaml Trust faces and confirm they have establlshed procedures to ensure re8ular reportin8 takes place so that necessary step5 can be undertaken to mlnlmise rlsks. Independent examlner Each of the persons who Is a Trustee at the date when thls report Is approved conflrms that: So far as the Tru5tee15 aware, there Is no relevant Informatlon of whlch the Independent examlner Is unaware: and The Trustee has taken all the step5 helshe ought to have taken as a Trustee to make hlmselflherself aware of any relevant Informailon and to establlsh that the charIt￿S Independent examiner Is aware of that information Maple Wharf Llmlted has expressed Its wllllngness to contlnue as Independent exèmlner for the next financial year. Acknowledgements The Trustees would like to take thls opportunity to thank everyone who ha$ shown thelr dedicatlon and commitment to ourcharity. The Trustee5' Report the￿in ha5 been approved by the Trustees on examlnatlon, and slgned on thelr behaw by.. . after independent RaJlbAhmed Chalrman

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Independent examiner's report

to the trustees of Dar-Al-Arqam (House of Arqam) Trust for the year ended 31 December 2020

I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 8 to 12.

Responsibilities and basis of report

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Independent examiner's statement

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:

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 accounts to be reached.

Zuber Ahmed

Maple Wharf Limited

Unit 118, Craft Central The Forge 397-411 Westferry Road Isle of Dogs London, E14 3AE

_____ 2021 28 September

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Statement of financial activities for the year ended 31 December 2020

Note
INCOMING RESOURCES
Donations
3
Other activities
Total incoming resources
RESOURCES EXPENDED
Expenditure on the management and
administration of the charity
4
Total resources expended
NET MOVEMENTS IN FUNDS
TOTAL FUNDS brought forward
TOTAL FUNDS carried forward		 Restricted
Funds
-
-
-
-
-
-
-
-		 2020
Unrestricted
Funds
166,646
12,559
179,205
(47,709)
(47,709)
131,496
20,080
151,576		 Total
Funds
166,646
12,559
179,205
(47,709)
(47,709)
131,496
20,080
151,576		 2019
Total
Funds
38,851
10
38,861
(34,261)
(34,261)
4,600
15,480
20,080

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST Statement of financial position As at 31 December 2020 Note Non<urrent ossets Property, plant and equlpment 1,217 Current •ssets Trade and other recelvables Cash at bank 11,406 137,906 11,0 7,863 149,312 18,863 Current Ilabllltles 11421 Net current assets 149,170 18,863 Total assets less current Ilabllltles 151,576 20,080 Fund5 of the charlty Restrlrted income fund Unrestrlrted Income fund 151,576 20.080 151,576 20,080 28/.0..9/.2.l... The accounts on pages 8 to 12 were approved by the Tru5tee5 on ... behalf by.. and were slqned on thelr Rajlb Ahmed Chalrman

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements

For the year ended 31 December 2020

1 Charity information

Dar-Al-Arqam (House of Arqam) Trust is a UK registered charity (charity number 1138665) constituted under a Trust Deed dated 1 September 2010. The address of the registered office is 543 Cable Street, London E1W 3HB.

2 Accounting policies

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing documents, the Charities Act 2011 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 (as amended for accounting years commencing from 1 January 2016).

The principal accounting policies adopted in the preparation of the accounts are as follows:

a) Basis of accounting

The accounts are prepared in accordance with the historical cost convention as modified by the inclusion of investments at market value. After making enquires, the trustees have reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Financial Review on page 5.

b) Incoming resources

All income is recognised once the charity has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the amount of income can be measured reliably.

c) Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of obligation can be measured reliably.

d) Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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 over drafts. Bank overdrafts are shown within borrowings in the current liabilities.

e) Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements - continued For the year ended 31 December 2020

3. Donations

The charity received the donations of £166,646 (2019: £38,851) from various donors.

4. Costs of management and administration

Fundraising costs
Rent
Rates
Service charge
Building insurance
Heat and light
Repairs and maintenance
Freelancers
Printing and stationery
Travel and subsistence
Salaries and wages
Training
Accountancy
IT, software and equipment
Legal and professional
Sundry expenses
Bank fees
Telephone
Depreciation		 2020
£
216
22,000
-
2,443
-
1,062
597
7,707
64
24
8,392
1,015
720
1,616
-
59
57
456
1,281
47,709		 2019
£
717
12,247
2,690
500
250
-
7,140
-
-
-
4,800
-
720
436
2,929
720
-
-
1,112
34,261

5 . Trustees' remuneration

The trustees received £Nil remuneration.

6. Employee information

The member of staff employed by the charity was 1 (2019: 1).

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements - continued

For the year ended 31 December 2020

7. Property, plant and equipment

7. Property, plant and equipment
Costs
At 1 January 2020
Addition
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
8. Current assets
Other receivables
Rent deposit
Prepayment
9. Current liabilities
Other taxation and social security
2020
£
406

5,500
5,500
11,406
2020
£
142

142
 £
4,449
2,470
6,919
3,232
1,281
4,513
2,406
1,217
2019
£
-
5,500
5,500
11,000
2019
£
-
-

10. Taxation

The Company is a registered charity and is exempt from taxation under the provision of the Income and Corporation Taxes Act 1988.

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