## **Muhammadiyah House of Wisdom**
## **Muhammadiyah House of Wisdom**
Registered Charity
## **Financial statements for the year ended 31 December 2020**
## **Charity number**
**1145770**
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## **Muhammadiyah House of Wisdom**
|**Charity Number:**|1145770|
|---|---|
|**Principal Address:**|33 RIDLING LANE|
||HYDE|
||CHESHIRE|
||SK14 1NP|
|**Directors and Trustees:**|MR ALI Muhammed ANEES|
||MR Shirajul Islam|
||MR MOHAMMED NAWAZ|
||MR Muhammed Gulam Kibria|
||Choudhury|
||Mr Gulfam Hussain|
|**Governing Document:**|Trust Deed|
|**Bankers:**|HSBC Plc|
||Market Place|
||Hyde|
||Cheshire|
||SK14 2QW|
|**Accountant and Independent Examiners:**|ATS Accountants|
||8 Rochdale Road|
||Royton|
||Oldham|
||OL2 6QJ|
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## **Muhammadiyah House of Wisdom**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees’ Report|4 – 7|
|Independent Examiner’s Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Accounts|11 - 18|
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## **MUHMAMMADIYAH HOUSE OF WISDOM**
Report of the Directors and Trustees for the year end 31 December 2020
## **ANNUAL REPORT 2020**
## **Introduction**
The trustees of Muhammadiyah House of Wisdom (Trust) are pleased to present their annual report and independently examined financial statements for the year ended 31 December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2005) and Accounting Standards Charities Act 2011.
It has been another busy year for the Trust and it has responded to needs in a focused and strategic way, with compassion at the heard of everything that is done.
On behalf of Muhammadiyah House of Wisdom we would like to thank all those (across the globe), who have given their time as volunteers and who made donations and fundraising, we would not be able to undertake this important work. You have made it possible for us to reach our and spread the message and help the neediest and most vulnerable in our local and global communities.
This report sets out examples of work undertaken and their impact. The journey to support and improve the lives of people, both spiritually and physically, continues and the examples show how we are progressing.
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## **MUHMAMMADIYAH HOUSE OF WISDOM**
## **Chairman’s Foreword**
The last 12 months have been challenging in light with the situation with Covid 19. We have undertaken the development and delivery of programs, locally, regionally and internationally. These programmes have been about engaging, transforming and importantly improving lives of those who we have come into contact with.
The work in regards to youth engagement has been raising both the spiritual and physical well-being of young people. The outreach activities have been highly well received by those who participated and it has been a pleasure to see the positive impact the work has had on young people. The spiritual retreats organised have been a mixture of enjoyment, self-reflection and building cohesive young people.
The classes for young people have gone from strength to strength and they are more than just about providing Islamic knowledge, they are about developing well rounded, compassionate human beings, who are true to the teachings of Islam both in understanding and practice.
2021 will bring new challenges, we feel we are well placed to face these challenges and continue to work towards our charitable objectives.
## **Activities**
## **Weekly Advice Sessions**
Despite covid 19 we have continued with our regular weekly gatherings in line with government restrictions. We have focused this year on delivery of online content. Thursday talks have continued and our online presence has grown. We will continue to focus on this in the coming year.
We have a number of different qualified speakers who provide advice to assistance to attendees and listeners, who benefit from advice and counselling given.
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## **MUHMAMMADIYAH HOUSE OF WISDOM**
## **Youth Engagement**
We engage with the youth to provide from mental health support to career advice and have regular online engagement with young people.
These sessions include but are not limited to life coaching which cover the following areas:
Marriage and pre-marriage coaching Rewiring from addictions Free programme of purification Social wellbeing through cohesive interactions Retreats focusing on character reformation
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## **Children Classes**
We have continued with the support and assistance we provide to other organisations. This has been through our large network of teachers which we intend to grow in the coming years. This has been particularly challenging however we have maintained classes at various centres particularly in Hyde, Bolton and Oldham.
## **International & national events**
Previously these have been very beneficial, unfortunately this year all travel has been limited. We were however able to hold a number of events in Denmark before the Covid restrictions.
## **International work**
The construction of the international zawiyah has been completed. This is a great testament to the hard work of the people involved and volunteers who raised the funds. The building is now being utitlised to spread our charitable objectives.
---------------------------------------------------------------
The above is an example of the work that has been undertaken during 2020 and showcases the scale of impact the organization continues to have nationally but also internationally. During 2021 we will build on what we learnt from 2020 and ensure we can provide an efficient charitable service to our beneficiaries.
## **On behalf of all Trustees**
Mr Ali Anees Chair
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## **Muhammadiyah House of Wisdom**
## **Independent examiner’s report to the trustees of Muhammadiyah House of Wisdom**
I report on the Financial Statements of the Charity for the year ended 31 December 2020 which are set out on pages 9 to 18.
## **Respective responsibilities of trustees and examiner**
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 (2) of the Charities Act 2011 (the 2011 Act) or under Regulation 10 (1) (a) to (c) of The Charities Accounts (Scotland) Regulations 2006 (the 2006 Accounts Regulations) and that an independent examination is needed. The charity is required by company law to prepare accrued accounts and I am qualified to undertake the examination by being a qualified member of the Chartered Institute of Public Finance and Accountancy.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the 2011 Act);
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with 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 44(1)(a) of the 2005 Act; and
- to prepare accounts which accord with the accounting records, comply with the
- accounting requirements of the section 44(1)(b) of the 2005 Act; and
- which are consistent 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 accounts to be reached.
Tanvir Alam BSc (Hons) CPFA On behalf of ATS Accountants
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Statement of Financial Activities**
|**Incoming resources**
**(Note 3)**
**Income and endowments**
**from:**
Donations and legacies
**_Total_**
**Resources expended (Note**
**4)**
**Expenditure on:**
Charitable activities
Governance costs
Administrative expenses
**_Total_**
**Net income/(expenditure)**
**before investment**
**gains/(losses)**
Net gains/(losses) on investments
**Net income/(expenditure)**
**Other recognised**
**gains/(losses):**
Gains and losses on revaluation of fixed
assets for the charity’s own use
Other gains/(losses)
**_Net movement in funds_**
**_Reconciliation of funds:_**
**_Total funds brought_**
**_forward_**
**_Total funds carried forward_**|**Unrestricte**
**d funds**
**£**
**2020**|**Restricte**
**d funds**
**£**
**2020**|**Endowm**
**ent funds**
**£**
**2020**|**Total**
**funds**
**£**
**2020**|**Prior year**
**funds**
**£**
**2019**|
|---|---|---|---|---|---|
||65,152|-|-|65,152|141,767|
||65,152|-|-|65,152|141,767|
|||||||
||36,943|-|-|36,943|182,370|
||1,285|-|-|1,285|1,000|
||41|-|-|41|575|
||38,269|-|-|38,269|183,945|
|||||||
||26,883|-|-|26,883|(42,178)|
||-|-|-|-|-|
||26,883|-|-|26,883|(42,178)|
|||||||
||-|-|-|-|-|
||-|-|-|-|-|
||26,883|-|-|26,883|(42,178)|
|||||||
||113,986|-|-|113,986|156,164|
||
140,869|-|-|140,869|113,986|
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Statement of Financial Position**
|**Fixed assets**
**Notes**
Tangible assets
8
**_Total fixed assets_**
**Current assets**
Cash at bank and in
hand
10
**_Total current assets_**
**Creditors: amounts**
**falling due within**
**one year**
9
**_Net current_**
**_assets/(liabilities)_**
**_Total assets less_**
**_current liabilities_**
**_Total net assets or_**
**_liabilities_**
**Funds of the**
**Charity**
**Unrestricted funds**
**_Total funds_**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**this year**
**£**
**£**
**£**
**£**
**2020**
**2020**
**2020**
**2020**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**this year**
**£**
**£**
**£**
**£**
**2020**
**2020**
**2020**
**2020**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**this year**
**£**
**£**
**£**
**£**
**2020**
**2020**
**2020**
**2020**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**this year**
**£**
**£**
**£**
**£**
**2020**
**2020**
**2020**
**2020**|**Total**
**last year**
**£**
**2019**|
|---|---|---|---|---|---|
||-|-|-|-|-|
||-|-|-|-|-|
|||||||
||141,869|-|-|141,869|115,986|
||141,869|-|-|141,869|115,986|
|||||||
||1,000|-|-|1,000|2,000|
|||||||
||140,869|-|-||113,986|
|||||||
||140,869|-|-||113,986|
|||||||
||140,869|-|-||113,986|
|||||||
||113,986||-|113,986|156,164|
||140,869|-|-|140,869|113,986|
|Signed by
one or
two
trustees
on behalf
of all the
trustees||**Signature**|**Print Name**|**Date of**
**approval**
**(DD/MM/YYYY)**|
|---|---|---|---|---|
|||_Gulfam Hussain_
signed on 01/07/2021, 15:48:51 BST|Mr Gulfam Hussain|01/07/2021|
|||_Ali Muhammed Anees_
signed on 01/07/2021, 14:20:17 BST
|Mr Ali Muhammed Anees|01/07/2021|
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Notes to the Accounts**
## **Note 1 Basis of preparation**
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
The accounts have been prepared in accordance with:
- the Statement of Recommended Practice: Accounting and Reporting by 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;
- the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102); and
- with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
## **Note 2 Accounting policies**
## **2.1 INCOME**
**Recognition of** These are included in the Statement of Financial Activities (SoFA) when: **income** the charity becomes entitled to the resources; it is more likely than not that the trustees will receive the resources; and the monetary value can be measured with sufficient reliability.
**Grants and** Grants and donations are only included in the SoFA when the general income **donations** recognition criteria are met (5.10 to 5.12 FRS102 SORP). In the case of performance related grants, income must only be recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are met (5.16 FRS 102 SORP). Gift Aid receivable is included in income when there is a valid declaration from **Tax reclaims on** the donor. Any Gift Aid amount recovered on a donation is considered to be **donations and** part of that gift and is treated as an addition to the same fund as the initial **gifts** donation unless the donor or the terms of the appeal have specified otherwise. Donated goods are measured at fair value (the amount for which the asset **Donated goods** could be exchanged) unless impractical to do so. The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale, and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'.
Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.
Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.
**Donated** Donated services and facilities are included in the SOFA when received at the **services and** value of the gift to the charity provided the value of the gift can be measured **facilities** reliably.
Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.
**Support costs** The charity has incurred expenditure on support costs.
**Volunteer help**
The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.
## **2.2 EXPENDITURE AND LIABILITIES**
**Liability recognition**
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
Support costs have been allocated between governance costs and other **Governance and** support. Governance costs comprise all costs involving public accountability **support costs** of the charity and its compliance with regulation and good practice.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
**Deferred income** No material item of deferred income has been included in the accounts.
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Creditors**
The charity has creditors which are measured at settlement amounts less any trade discounts
The charity accounts for basic financial instruments on initial recognition as **Basic financial** per paragraph 10.7 FRS102 SORP. Subsequent measurement is as per **instruments** paragraphs 11.17 to 11.19, FRS102 SORP.
## **2.3 ASSETS**
**Tangible fixed** These are capitalised if they can be used for more than one year, and cost at **assets for use** least **by charity** They are valued at cost
The depreciation rates and methods used are disclosed in note 9.2.
**Debtors** Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
## **Note 3 Analysis of income**
|**Donations**
**and legacies:**|**Analysis**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**Prior**
**year**
**2020**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**Prior**
**year**
**2020**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**Prior**
**year**
**2020**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**Prior**
**year**
**2020**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**Prior**
**year**
**2020**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
**£**|
|---|---|---|---|---|---|---|
||Donations
and gifts|65,152|-|-|65,152|141,767|
||**Total**|65,152|-|-|65,152|141,767|
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Note 4 Analysis of expenditure**
|**Analysis**
**Expenditure**
**on charitable**
**activities**
Charitable
activities
Governance
costs
Administrative
expenses
**Total**
**expenditure**
**on charitable**
**activities**
**TOTAL EXPENDITURE**|**Analysis**|**Unrestricted**
**funds**
**2020**
**£**|**Restricted**
**funds**
**2020**
**£**|**Endowment**
**funds**
**2020**
**£**|**Total**
**funds**
**2020**
**£**|**Prior**
**year**
**2019**
**(restated)**
**£**|
|---|---|---|---|---|---|---|
||Charitable
activities|36,943|-|-|36,943|182,370|
||Governance
costs|1,285|-|-|1,285|1,000|
||Administrative
expenses|41|-|-|41|575|
|||-|-|-|-|-|
||**Total**
**expenditure**
**on charitable**
**activities**|38,269|-|-|38,269|183,945|
||||||||
|||38,269|-|-|38,269|183,945|
## **Note 5 Support costs**
|**Support cost**|**Raising**
**funds**
**£**|**Expenditure**
**incurred in**
**running the**
**charity**
**£**|**Activity**
**2**
**£**|**Activity**
**3**
**£**|**Grand**
**total**
**£**|**Basis of**
**allocation**|
|---|---|---|---|---|---|---|
|||||||**(Describe**
**method)**|
|Governance
costs|-|1,285|-|-|1,285|Direct|
|Administrative
expenses|-|41|-|-|41|Direct|
|**Total**|-|1,326|-|-|1,326||
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
**Note 6 Details of certain items of expenditure**
**Fees for examination of the accounts**
**----- Start of picture text -----**
Last
This year year
£ £
Independent examiner’s fees
200 200
Assurance services other than audit or independent
examination - -
Other fees (for example: financial advice, consultancy,
accountancy services) paid to the independent examiner
1,085 800
**----- End of picture text -----**
**Note 7 Paid employees**
## **7.1 Staff Costs**
**----- Start of picture text -----**
This year Last year
£ £
- -
- -
- -
Total staff costs
- -
This year Last year
£ £
- -
- -
- -
Total staff costs
- -
**----- End of picture text -----**
**----- Start of picture text -----**
Salaries and wages
Social security costs
Pension costs (defined contribution
scheme)
Other employee benefits
Salaries and wages
Social security costs
Pension costs (defined contribution
scheme)
Other employee benefits
**----- End of picture text -----**
**No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000.**
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
|**7.2 Average head count in the year**
**This year**
**Last year**
**Number**
**Number**
**The parts of the charity in**
**which the employees work**
**Fundraising**
-
-
**Charitable Activities**
-
-
**Governance**
-
-
**Other**
-
-
**Total**
-
-
**ote 8 Tangible fixed assets**
**8.1 Cost or valuation**
**Freehold**
**land &**
**buildings**
**Other land**
**& buildings**
**Plant,**
**machinery and**
**motor vehicles**
**Fixtures,**
**fittings and**
**equipment**
**Total**
**£**
**£**
**£**
**£**
**£**
At the
beginning of the
year
-
-
-
-
-
Additions
-
-
-
-
-
Revaluations
-
-
-
-
-
Disposals
-
-
-
-
-
Transfers *
-
-
-
-
-
At end of the
year
-
-
-
-
-|**ar**|**This year**
**Number**|**Last year**
**Number**|
|---|---|---|---|
||**Fundraising**|-|-|
||**Charitable Activities**|-|-|
||**Governance**|-|-|
||**Other**|-|-|
||**Total**|
-|-|
|||||
**Note 8 Tangible fixed assets**
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **8.2 Depreciation and impairments**
|****Basis**
N/A
**** Rate**
At beginning of
the year
-
Disposals
-
Depreciation
-
Impairment
-
Transfers
-
At end of the
year
-
Net book value at the
beginning of the year
Net book value at the end of
the year|N/A|N/A|N/A|N/A|Straight Line|N/A|
|---|---|---|---|---|---|---|
||||||||
||||||||
||-|-|-||-|-|
||-|-|-||-|-|
||-|-|-||-|-|
||-|-|-||-|-|
||-|-|-||-|-|
||-|-|-||-|-|
|||**8.3 Net book value**|||||
|||-|-|-|-|-|
|||-|-|-|-|-|
## **8.4 Impairment**
No impairments in the year (2015: £nil)
## **Note 9 Creditors and accruals**
## **9.1 Analysis of creditors**
|**9.1 Analysis of**
**creditors**|||||
|---|---|---|---|---|
|**Trade creditors**
**Total**|**Amounts falling due within**
**oneyear**||**Amounts falling due after more**
**than oneyear**||
||**This year**
**£**|**Last year**
**£**|**This year**
**£**|**Last year**
**£**|
||1,000|2,000|-|-|
||1,000|2,000|-|-|
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## **Muhammadiyah House of Wisdom**
## **Financial statements for the year ended 31 December 2020**
## **Note 10 Cash at bank and in hand**
|**ote 10 Cash at bank and in hand**|||
|---|---|---|
|**Short term cash investments (less than 3 months maturity**
**date)**
**Short term deposits**
**Cash at bank and on hand**
**Other**
**Total**|**This**
**year**
**£**|**Last**
**year**
**£**|
||-|-|
||-|-|
||141,869|115,986|
||-|-|
||141,869|115,986|
## **Note 11 Transactions with trustees and related parties**
## **11.1 Trustee remuneration and benefits**
None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.
## **11.2 Trustees' expenses**
The charity paid trustees no expenses for fulfilling their duties.
## **Note 12 Restatement of prior year’s statements**
The Charity restated it’s Statement of Financial Activities for the year ended 31 December 2019 to classify light and heat costs, telephone costs, and equipment costs to expenditure related to Charitable Activities. This is because these expenditure lines relate to expenditures that incurred to deliver the aims and objectives of the Charity and are directly attributable to delivering Charitable Activities.
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