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2021-03-31-accounts

DEDZA WELFARE TRUST

ANNUAL REPORT AND ACCOUNTS

FOR YEAR ENDED 31 MARCH 2021

DEDZA WELFARE TRUST ANNUAL REPORT AND ACCOUNTS CONTENTS

Page
Charity Information 1
Report of the Trustees 2 – 3
Independent Examiner’s Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Accounts 7 - 10

DEDZA WELFARE TRUST CHARITY INFORMATION

CHARITY TRUSTEES

Mr Mussa A Saleh Mr Bashir Ahmed Adam Mr Suleman Ahmed Mogra Mr Sabir Ebrahim Akuji Mr Ismail Yusuf Alibhai Mr Mahomad Equbal Makda Mr Asif Gulam Mohammed Omarji

Chairman Vice Chairman Treasurer Vice Treasurer Secretary Vice Secretary Malawi Secretary

Mr Adam Bulbul Mr Imtihaz Abdul Rehman Bhamjee

Committee Member Committee Member

Mr Omar F Essat Trustee Mr Mohamed Rafik Adam Yusuf Trustee Mr Mehboob Mussa Sidat Trustee Mr Mahomed Altaf Ahmed Sacranie Trustee Mr Ibrahim Isap Isat Trustee Mr Nazir Ahmed Isat Trustee Mr Aboobaker Ahmed Trustee Mr Hassan Momoniat Trustee

REGISTERED OFFICE 24 Vulcan House Vulcan Road Leicester LE5 3EF REGISTERED CHARITY 1139363 NUMBER

INDEPENDENT EXAMINER

Yusuf Ghumra Ghumra & Co Limited Chartered Accountant 45 Broadway Road Leicester LE5 5TB

Page 1

DEDZA WELFARE TRUST REPORT OF THE TRUSTEES

The Charity Trustees, who are the members Executive Committee of the Trust, submit their annual report and accounts for the year ended 31[st] March 2021. The Charity Trustees have adopted the provisions of the Statement of Recommended Practice (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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2020) in preparing the annual report and accounts of the Charity.

Governing document

The Trust is an unincorporated organisation formed by adoption of the original constitution dated 9 May 2010 and is registered as a Charity with Charity Commission for England and Wales under charity number 1139363.

Objects of the Association

The principal objects of Dedza Welfare Trust are:

Charity Trustees

The Executive Committee (and Honorary Officers) is elected by the members at the annual general meeting to serve for a period of two year commencing the end of that meeting.

The Charity Trustees who served during the year are shown on page 1.

Governance and management

The Trust is governed by an Executive Committee, which is responsible to the membership for the effective management of the Trust. The Executive Committee comprises a minimum of 3 Honorary Officers members.

Meetings are held on a regular basis.

The trustees are responsible for preparing the Trustees’ Report and the Accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

Page 2

DEDZA WELFARE TRUST REPORT OF THE TRUSTEES

(Continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts Reports) Regulations 2015 and trust deed. 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.

Review of Activities and Future Developments

The statement of financial activities for the year is set out on page 5 of the accounts.

The trust collected voluntary donations amounting to £532,090 from well-wishers and the general public.

This has been used in providing vital aid to affected parts of Malawi. During the year, the trust distributed £445,387 for needy causes – see note 2 on page 9.

Surplus is being held pending evaluation of some specific projects that the trustees feel would be of enduring benefit to alleviate poverty and disease.

The trustees always bear in mind unforeseen emergencies that may require urgent application of funds.

Public Interest

In planning activities the trustees kept in mind the Charity Commissioner’s guidance on public benefit at the meetings.

Our main partners in the delivery of aid to beneficiaries and affected areas in Malawi are Dedza Welfare Charity Trust, An-Nasihah Trust and Islamic Zakat Fund.

Regulations and Outside Bodies

We have registered as data controller with the Information Commissioner as required by the Data Protection Act 1998.

Volunteers

On many occasions the Association involves volunteers in the delivery of its activities. We have a full range of policies and procedures operating to ensure this involvement is successful and beneficial to all parties.

Risk Management

The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of controls over key financial systems, will provide sufficient resources in the event of adverse conditions.

Approved by the Board of the Charity Trustees on 4 October 2021 and signed on their behalf:

Mussa A Saleh Chairman

Page 3

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF DEDZA WELFARE TRUST

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 5 to 10.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records

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.

Yusuf Ghumra BSc FCA Chartered Accountant

45 Broadway Road Leicester LE5 5TB

4 October 2021

Page 4

DEDZA WELFARE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Voluntary donations
Gift aid
Other
Total income
Expenditure on:
Charitable activities
2
Management and administration
3
Total expenditure
Net Income / (expenditure)
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
11,283
900
12,183
5,787
6,396
6,396
(610)
5,786		 Restricted
funds

£
532,090



532,090
445,387

445,387

86,703

124,773

211,476		 2021
Total

£

532,090
11,283
900

544,273

445,387
5,787

451,174

93,099

124,163

217,262		 2020
Total

£

414,799

-

6,584
421,383

395,425

7,713

403,138

18,245

105,918

124,163

The notes on pages 7 and 10 form part of these accounts.

Page 5

DEDZA WELFARE TRUST BALANCE SHEET AS AT 31 MARCH 2021

Note
CURRENT ASSETS
Debtors
6
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
7
NET CURRENT ASSETS
NET ASSETS
INCOME FUNDS
Restricted funds
Unrestricted funds		 Unrestricted
funds
£
6,998
6,998
(1,212)
5,786
5,786
5,786
5,786		 Restricted
funds

£
1,212

210,264

211,476

-
211,476

211,476
211,476


211,476		 2021
Total

£

1,212

217,262

218,474

(1,212)
217,262

217,262

211,476
5,786

217,262		 2020
Total

£

1,425

124,163

125,588

(1,425)

124,163

124,163

124,773

(610)

124,163

Approved by the Board of the Charity Trustees on 4 October 2021 and signed on their behalf:

Suleman Mogra Treasurer

Mussa A Saleh Chairman

The notes on pages 7 and 10 form part of these accounts.

Page 6

DEDZA WELFARE TRUST NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021

1. Summary of significant accounting policies

General information and basis of preparation

Dedza Welfare Trust is an unincorporated organisation formed by adoption of the original constitution dated 9 May 2010 and is registered as a Charity with Charity Commission for England and Wales under charity number 1139363. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are:

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with:

The charity has applied Update Bulletin 1 as published on 2 February 2020 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are presented in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Funds

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

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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

Page 7

DEDZA WELFARE TRUST NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021 (CONTINUED)

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Page 8

DEDZA WELFARE TRUST NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021 (CONTINUED)

2. Analysis of expenditure on charitable activities

Malawi - Ramadan Food Packs
Malawi - Education & Sponsorship
Malawi – Women welfare and education
Malawi – Flood Appeal
Malawi – Islamic education and Buildings
maitenance
Malawi - Orphanage Support
Malawi – Clean Water Projects
Global - Aid appeals
Malawi – Islamic Books
Malawi – Self Sustaining Projects (goat farming)		 Unrestricted
funds
£
-
-
-
-
-
-
-
-
-
-
-		 Restricted
funds
£
130,210
77,637
5,000
-
94,500
41,250
59,790
7,000
-
30,000
445,387		 2021
£
130,210

77,637

5,000

-

94,500

41,250

59,790

7,000

-

30,000
445,387		 2020
£

87,260

85,899

9,500

20,000

83,000

36,000

16,950

21,050

20,766

15,000
395,425

3. Analysis of expenditure on Management and administration

Printing
Independent Examiners’ remuneration
Bank charges
Sundries
Website expenses
Radio appeal
Cost of Trustee’s meetings
Trustees and related parties
Trustee expenses and remuneration
Number of trustees who were paid expenses
Total amount paid
Trustees’ Remuneration		 Unrestricted
funds
£
2,553
420
1,212
1,318
284
-
-
5,787		 Unrestricted
funds
£
2,553
420
1,212
1,318
284
-
-
5,787		 Restricted
funds
2021
£
£
-
2,553
-
420
-
1,212
-
1,318
-
284
-
-
-
-

-
5,787

2021
None
Nil
Nil		 Restricted
funds
2021
£
£
-
2,553
-
420
-
1,212
-
1,318
-
284
-
-
-
-

-
5,787

2021
None
Nil
Nil		 2020
£

3,789

490

894

429

726
1,020

365
7,713
2020
None
Nil
Nil

4. Trustees and related parties Trustee expenses and remuneration

Material interest of the trustees

No trustee had a material interest in any contracts during the year.

Page 9

DEDZA WELFARE TRUST NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021 (CONTINUED)

6. Debtors

6.
Debtors
Other Debtors
7.
Creditors: amounts falling due within one year
Other creditors		 2021
£
1,212
1,212
2021
£
1,212
1,212		 2020
£
1,425
1,425
2020
£
1,425
1,425

Page 10