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2021-12-31-accounts

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Report and Unaudited Financial Statements for the year ended 31 December 2021

Charity registration number: 1138665

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Contents of the financial statements for the year ended 31 December 2021

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

1

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Charity information for the year ended 31 December 2021

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 Bilal Sheikh Sodrul Islam Martuza Faisal Aziz

Appointed on 23 January 2021 Appointed on 9 October 2021 Appointed on 9 October 2021

Principal professional advisers

Bankers

HSBC Bank 75 Whitechapel Road London E1 1DU

Independent examiner

Royal Associates, Association of Accounting Technicians 60 Park Road Wellingborough Northants NN8 4QE

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Trustees' report for the year ended 31 December 2021

Objectives and activities

The Trustees present their report and the financial statements for the year ended 31 December 2021.

  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 in 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 Bilal Sheikh Appointed on 23 January 2021 Sodrul Islam Appointed on 9 October 2021 Martuza Faisal Aziz Appointed on 9 October 2021

Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable laws 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 2021

Strategic report

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

The main activities were 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, which continued as lockdown rules eased. 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. Courses tailored to women were also a key area of delivery to facilitate the growing female student base and an accentuated increase in online activities during Ramadan to mitigate the impact of Covid restrictions on large gatherings.

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 in the aftermath of a difficult pandemic.

The degree to which the achievements and performance during the year have benefited wider society:

The courses provided by the charity have benefited 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 for the skills, knowledge and experience needed for the effective administration of the charity.

4

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Trustees' report - continued for the year ended 31 December 2021

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 £121,383.

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 indicates 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 restriction 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 to 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- continued for the year ended 31 December 2021 The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: Consideration by the Trustees of financial results and cash flow forecasts Delegation of authority and segregation of duties, including that all payments require the approval of two authorised signatories Identification and management of risks The Trustees have examined the major risks that Dar-Al-Arqam (House of Arqarn) Trust faces and confirm they have established procedures to ensure regular reporting takes place so that necessary steps can be undertaken to minimise risks. Independent examiner Each of the persons who is a Trustee at the date when this report is approved conf irms that: So far as the Trustee is aware. there is no relevant information of which the independent examiner is unaware: and The Trustee has taken all the steps he/she ought to have taken as a Trustee to make hirnself/herself aware of any relevant information and to establish that the charity's independent examiner is aware of that information Kabir Ahmed, Royal Associates, has expressed its willingness to continue as an independent examiner for the next financial year. Acknowledgements The Trustees would like to take this opportunity to thank everyone who has shown their dedication and commitment to our charity. The Trustees, Report therein has been approved by the Trustees on 2810912022 after independent examination and signed on their behalf by: Rajib Ahmed Chairman

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST Independent examiner's report to the trustees of Dar-Al-Arqam {Hou5e of Arqam) Trust for the year ended 31 December 2021 I report on the accounts of the charity for the year ended 31 December 2021, 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 thi5 year under section 144121 of the Charities Act 2011 Ithe 2011 Artl and that an independent examination Is needed. It is my responsibility to: examine the accounts under section 145 of the 2011 Act to follow the procedures laid down In the general Oirections given by the commission under section 14515llbl of ihe 2011 Act to state whether particular matters have come to my attention Independent examiner's statement I have completed my examination. l confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material re5pett.. the accounting records were not kept in accordance with section 130 of the Charitie5 Act.. or the accounts do not accord with those records,. or the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair, view which is not a matter considered a5 part of 2n indeperbdent examination. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211. 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. Kabir Ahmed FMAAT Royal Associates A$50Ciation of Accounting Technicians 60 Park Road Wellingborough Northants NN8 4QE 2022

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Statement of financial activities for the year ended 31 December 2021

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
-
-
-
-
-
-
-
-		 2021
Unrestricted
Funds
118,209
3,174
121,383
(106,169)
(106,169)
15,214
151,576
166,790		 Total
Funds
118,209
3,174
121,383
(106,169)
(106,169)
15,214
151,576
166,790		 2020
Total
Funds
166,646
12,559
179,205
(47,709)
(47,709)
131,496
20,080
151,576

8

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST Statement of f inancial position As at 31 December 2021 Note 20 2020 Non-current assets Property, plant and equipment ,112 2,406 Current assets Trade and other receivables Cash at bank 12,841 151,009 11,406 137,906 163,850 149,312 Current liabilities (5,172) (142) Net current assets 158,678 149,170 Total assets les5 current liabilities 166,790 151,576 Funds of the charity Restricted income fund Unrestricted income fund 166,790 151,576 166,790 151,576 The accounts on pages 8 to 12 were approved by the Trustees on 2810912022 and were signed on their behalf by: Rajib Ahmed Chairman

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements

For the year ended 31 December 2021

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 543-545 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 a 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 an 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 expenditures 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 overdrafts. 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

10

DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements - continued For the year ended 31 December 2021

3. Donations

The charity received donations of £118,209 (2020: £166,646) from various donors.

4. Costs of management and administration

Fundraising costs
Rent
Rates
Service charge
Building insurance
Heat and light
Room Hire
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
Telecommunications
Books and periodicals
Subscription
Depreciation		 2021
£
1,066
22,000
7,646
2,002
162
784
7,180
1,361
29,706
777
1,510
12,340
557
3,830
6,009
500
291
1,936
3,483
191
170
2,668
106,169		 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

5 . Trustees' remuneration

The trustees received £Nil remuneration.

6. Employee information

The member of staff employed by the charity was 1 (2020: 1).

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DAR-AL-ARQAM (HOUSE OF ARQAM) TRUST

Notes to the financial statements - continued

For the year ended 31 December 2021

7. Property, plant and equipment

Costs
At 1 January 2021
Addition
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
8. Current assets
Other receivables
Rent deposit
Prepayment
9. Current liabilities
Tradepayables
Other taxation and social security
Accruals
2021
£
406

5,500
6,935
12,841
2021
£
1,979

83

3,110

5,172
 £
6,919
8,374
15,293
4,513
2,668
7,181
8,112
2,406
2020
£
406
5,500
5,500
11,406
2020
£
-
142
-
142

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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