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2020-12-31-accounts

di Discoverlslam Discovèr Islam Europè Annual Report and Financial Statement 2020

COMPANY ~~N~~ UMBER: 7269783

CHARITY REGISTERED NUMBER: 1146212

DISCOVER IS ~~LA~~ M EUROPE LIMITED

DIRECTORS' AND TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 December 2020

Discover Islam Europe Annual Report and Financial Statement 2020

Content:

Chair’s Message 4
Trustees’Report 5
Legal and administrative information 6
Who We Are
 7
Projects
 8&12
Statement of Trustees and Directors responsibilities 13
Risk Management 14
Plans for The Future 15
Structure, Governance and Management 16:18
Financial Review 19:20
Independent Examiner’s Report 21
Accounts 22:31

Discover Islam Europe Annual Report and Financial Statement 2020

CHAIR’S

MESSAGE

The coronavirus (COVID-19) pandemic is presenting tremendous challenges for our entire world with long-term consequences we cannot fully predict or comprehend. During this period of hardship and uncertainty, Discover Islam, its board of trustees, and its staff are dedicated to the health, safety, and well-being of our community and neighbours.

I hope that our staff and volunteers have managed to stay well and safe during these tough times but accept that many of you will have been afflicted directly by the virus and may still be in recovery. Our hearts are with you all as we reflect on these exceptional times and try and look ahead to a brighter future.

We thank Allah (SWT) for protecting us, our families and community and we ask Allah to forgive those who died during the pandemic and give their families patience.

On behalf of the trustees, I also want to thank our donors for continuing their contribution, without their contributions the organisation would not sustain financially during these difficult times.

We are determined to continue our work by providing Islamic knowledge, to help our beneficiaries with the challenges they are facing during these exceptional times and try to look ahead for brighter future.

Sameh Ramadan

Chairman

Discover Islam Europe Annual Report and Financial Statement 2020

TRUSTEES’

REPORT

This is the 2020 annual report of the Trustees of Discover Islam Europe. It is presented together with a Trustees’ Responsibilities Statement, the Independent Examiner’s Report, and the financial statements for the year ended 31 December 2020. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 2015).

Our trustees review the aims, objectives and activities of Discover Islam Europe each year. This report highlights what we, at Discover Islam Europe, have achieved the outcomes of our work during this reporting period. The trustees report on the success of each key activity and the benefits gained by those groups of people Discover Islam Europe was set up to help. The review also enables our trustees to ensure Discover Islam Europe’s aims, objectives, values and activities remain focused on its stated purpose.

Discover Islam Europe Annual Report and Financial Statement 2020

Legal and administrative information

Discover Islam Europe is a charitable company limited by guarantee

Date formed: 1 June 2010

Date registered as a charity: 2nd March 2012

Website: www.discoverislam.co.uk

Board of Trustees

Sameh Ramadan (Chair) Naif Sheikh (Trustee)

Registered Office 7 Bridges Place Parsons Green Fulham, SW6 4HW

Principal Office

7 Bridges Place, London SW6 4HW

Bankers Barclays Bank

20 Fulham Broadway, Fulham, London SW6 1AH

Independent Examiner

HRHS Accountancy 41 Revere Way, Epsom, United Kingdom, KT19 9RQ

Discover Islam Europe Annual Report and Financial Statement 2020

WHO

WE ARE

OUR VISION:

“Everyone, everywhere has access to the simple message of Islam”

OUR MISSION:

To be the leading Islamic information organisation in Europe providing innovative resources and services to advance the education of the public in Islam, and to promote a better understanding of Islam.

OUR MAIN OBJECTIVES

Objectives

OUR VALUES:

  1. Professional/Committed

  2. Credible/Reliable

  3. Inspiring/Inspirational 4. Current/Creative/Innovative

  4. Transparent/open

Discover Islam Europe Annual Report and Financial Statement 2020

Projects

Schools & Education

Educating the next generation Over 200 School Presentations & Mosque Tours

School Project

As part of school’s Religious Education syllabus, we organize mosque tours, exhibitions, presentation on Islam with question & answer sessions.

School Services

Discover Islam specialises in providing bespoke services for primary & secondary schools, colleges ad even universities

We are part of various SACRE (Standing Advisory Council for Religious Education) and have great experience in streamlining RE syllabus specific to Islam and dealing with issues regarding Muslim students

School Visits

We help to organise school visits to Mosques all over the UK and Ireland. Children get to experience a mosque environment, see Muslims pray, socialise and ask questions to the Imam and leaders of the Mosque

We also help local Imams to visit local schools and do Assembly presentations and specific lessons are delivered for Primary & Secondary School children. Imam will introduce their job and day to day activities. They will do a live call to prayer and recitation of the Holy Quran.

Discover Islam Europe Annual Report and Financial Statement 2020

Schools Online/virtual

Even during these tough times due to COVID, Discover Islam has reached out to millions through its various projects where people have gained a better understanding about Islam by attending online Exhibitions, Seminars, Islam Awareness weeks and through One to One discussion & webinars due to COVID restrictions.

Exhibition Project

Over 400 Islamic Cultural Exhibition

Thousands have been

Over 100,000 have visited our exhibitions all over the country

Islamic Informative & Cultural Exhibitions are organised offering visitors an insight to Islamic faith. An environment of openness and willingness is created to present Islam. Discover Islam exhibition has an attractive display material with bespoke banners, artifacts, posters & banners.

Exhibition has become one of our most effective project in promoting a better understanding of Islam & clearing misconceptions.

Discover Islam Europe Annual Report and Financial Statement 2020

All visitors receives a gift pack at our exhibition

It contains a copy of the Holy Quran, Seerah Booklet, Oyester card holder and a pen. The exhibition provides the visitor an opportunity to ask questions about Islam on 1 to 1 basis which in return allows the person to have a better & clear understanding of Islam.

We have on average of 200-300 visitors at our events. Some events attract more visitors than others. Our Cambridge exhibition have on average 1500-2000 visitors each year.

Peace Be Upon Him Project

Discover Islam is launching a 3D Model exhibition project on the Life of Prophet Muhammad (pbuh) showcasing PreIslam Makkah & Medina models. It will also have models of Masjid ul Haram, Masjid An-Nabawi & Baitul Maqdis. 3D Models of Masjid ul Haram, Masjid An-Nabawi & Baitul Maqdis Why we’re doing it? Fully integrated exhibition

As Discover Islam has organised 100s of exhibitions & seminars all across the country, we have noticed although we have an exhibition about Islam which talks about Prophets & Prophet Muhammad PBUH there is no complete exhibition about his life.

Discover Islam Europe Annual Report and Financial Statement 2020

Mobile Exhibition Project

Mobile Exhibition allows us to take our services to Funfairs, Environmental Fairs & other venues. It attracts a large number of people and provide us with an opportunity to reach out and present the message to masses.

1500-2000 Average visitors per exhibition Fully integrated exhibition on the move presenting Islam

Mosque Tours

schools providing them with the opportunity to experience first hand what Muslims do in the mosque.

Students see Muslims offer prayers, learn various services provided by the mosque and hear the imam recite Quran. They are also encouraged to ask questions about the Islamic faith.

Discover Islam Europe Annual Report and Financial Statement 2020

Media Development

We have produced animations covering the RE Syllabus related to Islam combining education with interaction. Three productions are available, ‘5 Pillars of Islam with Alex & Yusuf’, Prophets of Islam and ‘Talkies TV with Kitz & Finn’.

Over 3 million Youtube views of our cartoons

Our cartoons have been televised on various TV channels and have had huge success on Youtube receiving 3 million+ hits and counting. Cartoons are part of the lesson delivery at any school presentation and mosque tour.

Interfaith Panel

Discover Islam fully participates and promotes interfaith initiatives to support and promote social cohesion and to further enrich the diverse fabric of a rich multicultural modern day society. We actively take part in interfaith panels all across UK.

Our cartoons are currently been used in State schools to cover Islamic Religious Education.

Cartoons are entertaining for children & adults alike. Our inhouse productions present the correct understanding of Islam and covers many aspects of the religion. It is currently been used in State schools to cover Islamic Religious Education. It has also been broadcasted on many National and International TV channels. Few of the main topic covered are

3 Series,

16 Episodes, 100 Minutes of animation

Our favourite cartoon characters

We use our cartoons while delivering presentations about Islam which are dedicated to educate children about the true message of Islam, promote a better understanding of the religion and clear misconceptions.

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STATEMENT OF DIRECTORS/TRUSTEES’ RESPONSIBILITIES

Discover Islam Europe Trustees (who are also directors for the purposes of company law) are responsible for preparing the Annual Report and Financial Statements in accordance with applicable law of the United Kingdom’s Accounting Standards.

Companies/Charity Law requires the Trustees to prepare yearly financial statements, giving a true and accurate state of affairs of the charity and the incoming resources and application of resources. This includes income and expenditure for the period.

The Trustees have the responsibility of keeping adequate accounting records that disclose reasonable accuracy at any time of the financial position of the charity, to enable them to ensure that the financial statements comply with the Companies Act 2006 and Charities Act 2011. Trustees are also responsible to safeguard the assets of the charitable company and reasonable steps must be taken for the prevention and detection of fraud and other irregularities.

In order to prepare these financial statements, trustees are required to do the following:

charitable company will continue in operation.

So far the Trustees are aware that:

establish that the company’s auditors are also aware of this information.

Independent Examiner

An independent examination was carried out by HRHS Accountancy, Certified accountants.

The trustees’ report has been prepared in accordance with the provision applicable to the company subject to the small companies’ regime, and on the same basis a strategic report has not been presented. The report has been approved by the trustees and signed on their behalf by

Sameh Ramadan Naif Sheikh

Chairman Trustee

Naif Sheikh Naif Sheikh (Sep 26, 2021 08:24 GMT+1)

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Risk Management

The major strategic and operational risks that Discover Islam Europe is exposed to and the ways in which these are being monitored, managed and mitigated are regularly assessed by the Senior Management Team. The assessment is reviewed by the Finance team and then passed for consideration to the Board of Trustees.

The process identifies the types of risk that the Charity faces, records them on the strategic risk register and prioritises the risks in terms of likelihood of occurrence and potential impact.

Financial risk

Shortfall in covering operations – this risk was mitigated by furloughing all employees, requesting a payment holiday from creditors, and depending on volunteers to cover furloughed employees.

Operational risk

Shortfall in manpower and resources to run activities – this risk was mitigated by reducing activities and encouraging new volunteers to join during the pandemic.

Regulatory compliance risk

Failure to keep abreast of local laws and requirements could compromise our ability to continue working and serve our beneficiaries, Failure to demonstrate compliance with the regulatory framework, as it evolves, could damage our reputation and result in fines and other penalties.

To control and mitigate that risk – The organisation hired a professional compliance officer as a contractor responsible for ensuring compliance with local requirements, including registration, tax compliance and statutory reporting.

The organisation provides induction and training to new trustees and have processes in place to keep the board apprised of relevant changes in regulation.

Human resources risk

If we do not provide effective leadership and management, and if we do not look after the wellbeing of our staff or ensure that we are diverse and truly inclusive, the implementation of our strategy could be significantly compromised and our reputation damaged.

To control and mitigate that risk - We have rigorous recruitment processes designed to help select candidates who can best help us meet our core aims, and to ensure equal opportunities. Our recruitment policies include structured gender sensitive and racially diverse panel interviews and the taking up of references. Staff sign our code of conduct and have a structured induction.

we have human resources policies designed to promote employee wellbeing and the provision of regular and open communication to employees. During the COVID-19 pandemic we have implemented a range of measures to promote staff wellbeing and have conducted staff meetings to test levels of satisfaction with our response.

COVID-19 pandemic

The pandemic is a crisis facing the entire world, with the health crisis leading to a worldwide recession. This presents risks to our fundraising plans and to the health and wellbeing of our staff and our beneficiaries.

To control and mitigate the risk - we instigated cost-saving measures to counter the immediate fall in income in the current year. • We have agreed a gradual recovery plan under the oversight of the board including integrated fundraising and prioritisation activities during and in the aftermath of the pandemic.

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Plans for the future

Governance and administration

  1. Review policies and procedures to deliver a stronger governance structure.

  2. Establish a robust induction process and create an annual training programme for trustees.

  3. Plan for succession of trustees and members, build capacity and improve processes to increase diversity,

  4. ensure a broad range of skills, and improve compliance.

  5. Complete review of staffing and departmental structure, including head of staff.

Fundraising and income Generation

  1. Maintain net income of the charity at a sustainable £100k per annum.

  2. Make better use of internet and social media streams by engaging in digital fundraising.

Projects and Services

  1. Carry out review of the charity's school service.

  2. Carry out review of all supplementary education.

  3. Find a new interactive way to offer exhibition service.

  4. Support community needs in response to the COVID-19 pandemic, by establishing a food bank and helping the needy and vulnerable.

The Board are aware of the challenges Discover Islam Europe faces due to COVID-19 pandemic. The Board is committed to a continue with the new strategic plan (2020 - 2025) to guide Discover Islam Europe through the next 5-year phase with a focus firmly on the beneficiary within a financially sustainable model. New methods of income generation and cost management initiatives are being implemented.

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Structure, Governance and Management

The charity was incorporated on 1 June 2010 a company limited by guarantee. The charity is governed by its memorandum and articles of association approved in June 2010. The charity was registered with charity commission as a charity on 2 March 2012

Organisational structure: The trustees have delegated the day to day running of the charity to the director who is accountable to the trustees. The trustees have regular meeting to assess the performance of the charity. The Board of Trustees also works with key stakeholders and makes sure that we satisfy the regulatory requirements on us as a charity. The DIRECTOR engages actively with the Senior Management of the Charity to improve Discover Islam Europe's ability to respond to community needs and develop continuous development programs.

Roles of the Director and Senior Management: The Trustees delegate the day-to-day running of the charity to the director and the Senior Management Team (SMT). The DIRECTOR reports to the chair of the Board on a biweekly basis and the Trustees sit for formal meetings three times a year. The organisation is made up of structured departments functioning as independent units with clear reporting lines. Systems for line management, appraisals, staff development and supervision are in place, together with an accountability framework, and grievance and complaints procedures. Reports are submitted to the Charity Commission and Companies House by the Trustees, as required by law.

Pay policy for senior staff: Pay for senior staff is reviewed annually. During Financial year 2020, There were no staff members who received a salary of more than £60.000.

Board of Trustees

The Trustees are responsible for all matters pertaining to governance of the Charity and policy making. Discover Islam Europe’s management is responsible for implementing programmes and projects approved by the Trustees in an efficient and transparent manner, within its policy framework, thus fulfilling the stated aims and objectives of the Charity.

Reports are submitted to the Charity Commission by the Trustees as required by law.

Governance Code

The Charity Governance Code sets out the principles and recommended practice for good governance within the sector. The charity is reviewing its current governance arrangements against the principles within the code annually and address any issues raised.

Public benefit

The Trustees confirm that they abide by the Charity Commission’s general guidance on public benefit in accordance with the Charities Act 2011 to have due regard to public benefit in pursuance of the Charity’s aim.

Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements for each financial year in accordance with the law applicable to charities in England & Wales.

The Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP (FRS102)).

Under Companies/Charity 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 Charity, its income and application of resources of the Charity for that period.

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

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So far as each of the Trustees at the date of this report is aware, there is no relevant audit information of which the charity’s auditor is unaware. Each Trustee has taken all the steps that he/she ought to have taken as a trustee to make himself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

The Trustees have exercised due diligence and care in protecting the integrity of the Charity and its reputation.

The Trustees take this opportunity to thank Discover Islam Europe stakeholders, in particular our generous donors and benefactors and staff for their support and faith in Discover Islam Europe commitment and ability to serve the community where needed most.

Staff, volunteers, and friends remain steadfast in their resolve to work for the service of humanity.

Risk and audit Committee

The key duties of the Committee are as follows:

The Committee also considers the financial plans and performance of Discover Islam Europe and the cost effective and efficient operation of the Charity.

Trustee Induction & recruitment:

To make sure we benefit from a professional, appropriate board, we provide trustees with comprehensive induction and on-going training in new or emerging areas or responsibility. New trustees receive a full overview of our strategic and operational functions, as well as welcome pack which includes a copy of the Memorandum and Articles of Association, the financial statements, Board minutes and the Charily Commission guidance ‘The Essential Trustee’. Trustees are encouraged to Identify their training needs. The Chief Executive Officer (DIRECTOR) keeps trustees up to date with changes in regulatory standards and training possibilities. The Board of Trustees receives regular performance reports, annual financial reports, plans and budgets.

Discover Islam Europe shall develop and maintain a skills matrix to identify and recruit trustees and in selecting individuals for appointment as charity trustees, shall have regard to the benefits of diversity among the trustees and the skills, knowledge and experience needed for the effective administration of the Charity ~~.~~

Key Management Personnel and Remuneration Policy

The organisation is made up of structured departments functioning as independent units with clear reporting lines. Systems for line management, appraisals, staff development and supervision are in place, together with an accountability framework as well as grievance and complaints procedures.

The Senior Leadership Team (SLT) is considered to be key management personnel and consists of the directors, heads of each Departments.

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Remuneration for all senior staff is based on annual appraisals carried out by the DIRECTOR or Chairman and then reviewed by an appropriate committee. The review of pay takes into consideration roles and responsibilities together with relevant market rates.

Pension

The Charity has complied fully with the auto-enrolment legislation Since October 2017 employees have been offered an employer contribution of 1% against a 1% employee contribution. This has been raised to between 2% and 3% in 2018 and rise between 3% and 5% in 2019 & 2020

Independent Examiner

HRHS Accountancy has acknowledged its willingness to be reappointed as auditor for the year ending 31 December 2020.

Bankers

Barclays Bank

20 Fulham Broadway, Fulham, London SW6 1AH

Solicitors

Lee Bolton Monier-Williams 1 the Sanctuary, Westminster, London, SW1P 3JT

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Financial Review

The financial statements have been prepared in accordance with the accounting policies set out on pages Below of the attached Financial Statements and comply with applicable laws and requirements of the ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ (Charities SORP (FRS102)) issued by the Charity Commission.

Income

The Charity’s total income for the year was £79K (2019: £92K ), a decrease of £13K on the previous financial year, the decrease was due to a decrease on fundraising income due to postponing fundraising events due to COVID-19.

Two years’ income trend

----- Start of picture text -----
Two years income trend
80,000
60,000
40,000
20,000
-
Donations and legacies Charitable activities Other
2020 2019
----- End of picture text -----

Expenditure

Our total expenditure for the year ended 31 December 2020 was £57K (2019: £90K ). a decrease of 36% due to furloughing all employees and postponing majority of activities during periods of lock down.

Two years’ programme expenditure trend

Charitable expenditure by programme

----- Start of picture text -----
Two years expenditure trend
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
2020 2019
Raising funds Charitable activities
----- End of picture text -----

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Net assets

The balance sheet for the Charity shows net assets of £35K , (2019: £13K) . The increase in funds is represented by a net surplus in the year of £22k.

Tangible fixed assets

The changes in tangible fixed assets during the period are shown in Note 8 to the financial statements.

Reserves policy

The Board of Trustees have adopted a reserves policy to hold the equivalent of six to nine months' operational expenditure in reserve. This is a best practise as stipulated by the Practical Quality Assurance System for Small Organisations (PQASSO) quality mark guidelines. The actual free reserves in current assets at the end of the year were not enough to service the planned reserve policy and the board is working to improve this during the coming two years.

Trustees assessment of Going Concern

As per the statement of financial activities and Balance sheet below showing the charity has a strong base of regular donations, especially from standing orders. The community is also very responsive during the pandemic to a request to volunteer and request to increase financial support.

The impact of COVID-19 on operational expenses has been mitigated by the charity's use of the Job Retention Scheme, and by proportionately higher donations received from the community. Trustees therefore consider the charity as a going concern.

Discover Islam Europe will review of all areas of the Charity particularly those that are making operating deficits, reducing charitable expenditure. This will also enable the Charity to manage operational and financial risks successfully and to allow us to meet our strategic and operational goals over the short and the medium term.

Sameh Ramadan Chairman

Naif Sheikh

Trustee

Naif Sheikh Naif Sheikh (Sep 26, 2021 08:24 GMT+1)

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INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF DISCOVER ISLAM EUROPE LIMITED

FOR THE PERIOD ENDED 31 December 2020

I report on the accounts which are set out on Pages below

Respective responsibilities of the Trustees’

The trustees (who are also directors of the company for the purpose of company law) are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this period under section144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to an 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; follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act); and 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 conseq uently 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the directors' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or • the directors have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

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:

a. to keep accounting records in accordance with section 130 of the Charities Act; and

b. to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Hashem Soliman Dated: 25[th] August 2020

HRHS Accountancy Hashem Soliman Member of Association of Accounting Technicians 41 Revere Way London KT19 9RQ

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Statement of Financial Activities

Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities Statement of Financial Activities
Charity Name: Discover Islam Europe Limited
Charity No
1146212
Annual accounts for the period Company No
7269783
Period start date 01/01/2020 Period end date 31/12/2020
Section A Statement of financial activities
Recommended categories by activity
Income and Endowments (Note 3)
Charitable Income
Donations and legacies
Charitable activities
Other
Total
Expenditure (Notes 4-6)
Expenditure on:
Raising funds
Charitable activities
Total
Net incoming/(outgoing) resources
before transfers
Gross transfers between funds
Net incoming/(outgoing) resources
before other recognised gains/(losses)
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£		 2020
Restricted
£		 £ 2019
£
- - -
63,519 63,519
67,354
9,016 9,016
24,751
6,717 6,717
41
79,251 79,251
92,147
- -
- - -
17,718 17,718
16,773
39,949 39,949 73,736
57,668 57,668
90,509
21,584 21,584 1,638
- - -
21,584 21,584 1,638
21,584 21,584 1,638
13,348 13,348 11,710
34,931 34,931 13,348

The results for the year shown above all derive from continuing operations. All recognised gains and losses are reflected in the Statement of Financial Activities and therefore no separate statement of total recognised gains and losses has been presented.

The notes on pages below form an integral part of these financial statements

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Balance Sheet

Fixed assets
Tangible assets (Note 8)
Total fixed assets
Current assets
Cash at bank and in hand
Total current assets
Creditors: amounts falling due within
one year (Note 9)
Net current assets/(liabilities)
Total assets less current liabilities
Net assets
Funds of the Charity
Unrestricted funds
P&L Account
Total funds		 Unrestricted
funds
Restricted
Funds
2020
£
£
£		 Unrestricted
funds
Restricted
Funds
2020
£
£
£		 Unrestricted
funds
Restricted
Funds
2020
£
£
£		 2019
720 960
720

720		 720 960
34,861 34,861 16,235

34,861		 34,861
16,235

650		 3,848
650

34,211		 34,211
12,387

34,931		 34,931
13,347

34,931		 34,931
13,347
13,348 13,348 11,710
21,584 1,638
21,584

34,931		 34,931
13,348

The financial statements were approved by the Trustees on 28[th] August 2021 and signed on its behalf by:

Sameh Ramadan Chairman

Naif Sheikh Trustee Naif Sheikh Naif Sheikh (Sep 26, 2021 08:24 GMT+1)

The notes on pages below form part of these financial statements.

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Statement of Cash flows

tatement of Cash flows
For the year ended 31 December 2020
Cash flows from operating activities:
Net movement in funds (as per the Statement of Financial
Activities)
Depreciation charges
(Increase)/Decrease in debtors
(Decrease) / Increase in creditors
Cash flow from financing activities
Loan received
Cash flows from investing activities:
Purchase of assets
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net increase / (decrease) in cash and cash equivalents		 Total
Total
2020
2019
£
£
21,584
1,638
240
320
-
-
(3,197)
2,376
18,627
4,334
-
-
-
-
-
-
-
-
18,627
4,334
16,235
11,902
34,862
16,235
18,627
4,334

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Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Basis of preparation

The financial statements of the Charity, which is a public benefit entity under Financial Reporting Standard 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015, the 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) (Charities SORP (FRS102)) and the Charities Act 2011 and Companies Act 2006.

The Accounting Policies are consistent with the previous year. After reviewing the charity’s forecasts and projections, the trustees (who are the directors for the purposes of company law) have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity, therefore, continues to adopt the going concern basis in preparing its financial statements.

The accounts present a true and fair view and no changes have been made to the accounting policies.

No changes to accounting estimates have occurred in the reporting period. No material prior year error has been identified in the reporting period.

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.

b) Incoming resources

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when Discover Islam Europe is entitled to the funds, receipt is probable, and the amount can be measured reliably.

Gifts in Kind for which Discover Islam Europe accepts full responsibility for distribution are included in income at the value to the charity when the good are received and under the control of Discover Islam Europe. Amounts are recognised in inventory until distributed at which point the relevant cost is released to the statement of financial activities.

The receipt in advance of a grant for expenditure that takes place in a future accounting period is accounted for as deferred income and recognised as a liability until the accounting period in which Discover Islam Europe will expend the resource.

c) Resources expended

Resources expended are recognised on an accrual’s basis.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Discover Islam Europe Annual Report and Financial Statement 2020

P a g e | 26

Section C Notes to the accounts (cont)

Support costs are those costs incurred indirectly in support of expenditure on the programmes of the Charity. Allocation of support costs and staff costs have been proportionated to the total of programme costs and corresponding thematic programme area.

Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements. They include legal advice for trustees, cost of trustees' meetings, audit fee and internal audit costs. These costs are allocated in the same way as other support costs.

c) Foreign currencies

Transactions in foreign currencies are translated at the rate of exchange at the time of the transaction.

Foreign currency balances are translated at the rate of exchange prevailing at the balance sheet date. Foreign currency gains and losses are recognised through the Statement of Financial Activities for the period in which they are incurred.

d) Investment property: N/A.

e) Tangible fixed assets and depreciation

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as

Leasehold properties Straight line over the life of the lease Freehold properties 5% straight line Computers and software 25% straight line Fixtures and fittings 25% straight line Office equipment 25% straight line Motor vehicles 15% straight line

Assets that are subject to amortisation are tested for impairment whenever events or changes in circumstance indicate.

f) Fund accounting

General funds are unrestricted funds which include buildings and equipment necessary for the proper functioning of the Charity and other funds available for use at the discretion of the Trustees in furtherance of the Charity's objectives.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for

particular purposes. Restricted funds are funds which are subject to specific restrictions as

imposed by the donor or nature of the appeal.

g) Taxation

As a registered charity, Discover Islam Europe is exempt from taxation of income and gains to the extent that its income and gains are applicable to charitable purposes only.

h) Key judgements and estimation uncertainty

The preparation of the financial statements requires the Trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the Trustees' best judgment at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The Trustees' do not believe that there are any significant areas of estimation uncertainty that need to be disclosed.

Discover Islam Europe Annual Report and Financial Statement 2020

P a g e | 27

Section C Notes to the accounts (cont)

Note 3 Analysis of incoming resources

Donations and
legacies
Charitable activities
Other
4 Resources
expended
Raising Funds
Charitable activities
Total Expenditure		 Analysis Unrestricted
funds
£		 2020
Restricted
funds
£		 £ 2019
12,295
3,042
26,017
26,000
67,354
24,751
24,751
41
41
Total
2019
Costs
£
21,039
85,339
Standing Orders 28,461 - 28,461 12,295
general Donations 4,193 - 4,193 3,042
Go Cardless 4,508
Just giving & World Pay 14,357 - 14,357 26,017
Funds received from
other institution		 12,000 - 12,000 26,000
Total 63,519 - 63,519 67,354
Fundraising events 9,016 - 9,016 24,751
Total 9,016 - 9,016 24,751
Other Income 6,717 - 6,717 41
Total 6,717 - 6,717 41
Total
Direct
Governance
Support
2020
Costs
Costs
Costs
Costs
£
£
£
£
14,517
200
3,001
17,718
32,732
450
6,767
39,949
47,249
650
9,769
57,668
106,378

Discover Islam Europe Annual Report and Financial Statement 2020

||P age | 28| |---|---| |4 Support Costs
Office Costs
Storage
Governance Costs
5 Governance Costs
Audit Fees|2020
2019
£
£
9769
4,983
-
300
650
600
10,419
5,883
2020
2019
£
£
650
600
650
600|

Note 6 Details of certain items of expenditure

Fees for examination or audit of the accounts

Independent examiner’s or auditors' fees for
reporting on the accounts
Other fees (for example: advice, consultancy,
accountancy services) paid to the independent
examiner or auditor		 2020
£		 2019
£
650 600
0.00 0.00

Note 7 Paid employees Please complete this note if the charity has any employees.

7.1 Staff Costs

n kind
s
Total staff costs		 2020
£		 2019
£
7,186
59,439
- 55
30
587
7,216
60,082
valent This year
Number		 Last year
Number
Fundraising 1
2
Charitable
Activities		 1
2
Governance 2
2
Other -
Total
4
6

Gross wages, salaries and benefits in kind Employer’s National Insurance costs Pension costs

7.2 Average number of full-time equivalent employees in the year

The parts of the charity in which the employees work

No Employees paid salaries over £60,000, all employees are part timer. The Director and trustees are volunteers, therefore, no directors’ remunerations.

Discover Islam Europe Annual Report and Financial Statement 2020

P a g e | 29

Section C Notes to the accounts (cont)

8.1 Cost

Fixtures, fittings and equipment £ Balance brought forward 4,666 Additions - Balance carried forward 4,666

8.2 Accumulated depreciation and impairment provisions

*Basis*
 Rate
Balance brought
forward
Depreciation
charge for year
Balance carried
forward		 RB

25%
3,706
240.00
3,946

8.3 Net book value

Brought forward 960 Carried forward 720

Note 9 Creditors and accruals Analysis of creditors

Accruals and
deferred income
P.A.Y.E
National
Insurance
Pension
Net Wages
Total		 Amounts falling due within one year Amounts falling due within one year Amounts falling due more than
one year		 Amounts falling due more than
one year
2020
£		 2019
£		 2020
£		 2019
£
650
-
- 1,289
- -6
- 74
- 2,491
-		 -
650 3,847
-
-

Discover Islam Europe Annual Report and Financial Statement 2020

P a g e | 30

Section C Notes to the accounts (cont)

10 Movements of major funds 10 Movements of major funds
Current Period
Fund names Fund Fund
balances balances
brought Incoming Outgoing Gains and carried
forward resources resources
Transfers		 losses forward
£ £ £ £ £ £
Unrestricted Funds 13,347 79,251 57,668 34,931
- -
-		 -
-
-
Total Restricted
Funds -
-
-
-
-
-
Total of funds 13,347
79,251
57,668
-
-
34,931
Movements of major funds
Previous Period
Fund names Fund Fund
balances balances
brought Incoming Outgoing Gains and carried
forward resources resources
Transfers		 losses forward
£ £ £ £ £ £
Unrestricted Funds 11,710 92,147 90,509 13,347
Total Restricted
Funds -
-
-
-
-
-
Total of funds 11,710
92,147
90,509
-
-
13,347

Unrestricted General fund represents the amount that trustees are free to use in accordance with the charity’s objectives.

11 Taxation

Discover Islam Europe is a registered charity and is not therefore liable to income or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

12 Post balance sheet events

No post balance sheet event.

for the next 18 months since the resuming of the business.

The company not registered for VAT, therefore, VAT deferral not applicable.

13 Related Parties

During financial year 2019, there were no Trustee or related party transactions recorded for the organisation.

14 Other Information

All the company’s employees are furloughed.

No government support was used, grants not applicable, there was no need for loans.

Discover Islam Europe Annual Report and Financial Statement 2020

Discover Islam Europe Detailed Income and expenditure statement For the year ended 31 December 2020

Income and Endowment
Donations
Donated goods and services
Total Incoming resources
Expenditure
Raising donations
Fundraising Costs
Charitable activities
Direct costs
Support costs
Office costs
Storage
Governance costs
Audit fees
Total resources expended
Net Income		 2020
2019
£
£
79,251
92,147
-
-
79,251
92,147
(14,517)
(15,683)
(32,732)
(68,943)
(9,769)
(4,983)
-
(300)
(9,769)
(5,283)
(650)
(600)
(57,668)
(90,509)
21,583
**1,638 **

Trustees report 2020

Final Audit Report

2021-09-26

Created: 2021-09-25 By: Hashem Soliman (hashem_soliman2000@outlook.com) Status: Signed Transaction ID: CBJCHBCAABAAyrn1YSwoCQXKu2JrdN87uXqiYREVUTVG

"Trustees report 2020" History

Document created by Hashem Soliman (hashem_soliman2000@outlook.com) 2021-09-25 - 1:13:28 PM GMT

Document emailed to Naif Sheikh (nm@discoverislam.co.uk) for signature 2021-09-25 - 1:14:45 PM GMT

Email viewed by Naif Sheikh (nm@discoverislam.co.uk) 2021-09-26 - 7:23:05 AM GMT

Document e-signed by Naif Sheikh (nm@discoverislam.co.uk) Signature Date: 2021-09-26 - 7:24:18 AM GMT - Time Source: server

Agreement completed.

2021-09-26 - 7:24:18 AM GMT