SHADE Annual Report and Financial Statements Period ended 31st July 2022 Charity Number: 1149699
Contents Administrative Information.......................................,..................................... Trustees, Report..................,............................................... ........................... Objectives & Activities . Financlal Review... Structure, Governance and Management......... .............................................. Independent Examlners Report......,.....................................,........................io Financial Statements.......................... vi. .11 Statement of Financial Activities. li Statement of Financial Position (Balance Sheet). Statement of Cash Flows............................,........,................................... 12 13 Notes to the Financial 5tatements.......,...........................................,............... 14 Page 2 of 23
Administrative Information Charity Number.. 1149699 Registered office., The Shade Cerstre, 62 Church Road, London, E12 6AF Directors and Trustees The directors of the Shade (the charity) are its trustees for charity law, The trustees and officers serving during the year and slnce the year end were as follows: Mr Abdul Gaffar Mr Moin Khan Mr Muhammad Abdul Gofar Khan Mr Koyson Khan Resigned 16 May 2023 Appointed 16 May 2023 Appointed 16 May 2023 Our Advisers Bankers: HSBC Bank, East Ham, London E6 2HX Independent Examiner.. Strone Accountants, 148a High Street South, London, E6 3RW Page 3 of 23
Trustees, Report The trustees are pleased to present their annual directors, report together with the f inancial statements of the charity for the period ended 31 July 2022 which are also prepared to meet the requirements for a diredor5' report and accounts for Charities Act purposes. The financial statements comply with the Charities Act 2011, by its constitution, and Accounting and Reportir)g by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK arkd Republic of Ireland IFRS 1021 leffectlve l January 20151. Page 4 of 23
Objectives & Activities l. To act as a resource for people living in London and neighbouring region5 by providing advice and 3SSlStance and organizing programs of physical, educational and other attivities as a means of., al advancing in life and helping young people by developing their skills, capacities and capabilitie5 to enable them to participate in society as independent, mature and responsible individuals,. bl advancing education; cl providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. 2. To promote and protect the physical and mental health of the inhabitants of London and the neighbouring areas through the provision of financial assistance, support, education and practical advice. 3. The relief of flnanclal need and suffering among vlctims of natural or other kinds of disaster in the form of money lor other means deemed suitable) for person5, bodies, organizations and/or countries affected including the provision of medical aid. Activities SHADE is community-based umbrella organisation that runs programs and actlvlties catering for the social, educational, recreatlonal and religious needs of the community. The Shade Centre This is a community centre where we provide health and educational activities. Some of the actlvities are: -Ladles Fitness Classes -Archery Club -Tea Club -martial Arts Isilat & Kickboxingl -self Defence Course -Friday Prayer Facilities -Eid Prayers Outdoors in Manor Park and Forest Gate Page 5 of 23
Give Shade This is a project of shade catering for more humanitarian projects like homeless feeding in the UK as well as some empowerment projects in Bangladesh.. -Homeless Feeding -Durable Housing in Bangladesh -Dairy Cow for Widows -winter Blankets -Eid & Ramadan Gifts These projects constitute only about IO% of the charlties work as we wish to concentrate in the UK. Most of the funds allocated to Give Shade are Zakat from some of our users and are restricted to humanitarian work. Pa8e 6 of 23
- Financial Review The trustees have revlewed the reserves of the Charlty. Their pollcy is to hold enough liquid fund5 to meet 3 months of operating costs of the Charity. Page 7 of 23
IV. Structure, Governance and Management Governing Document Shade an un-incorporated charitable organi53tion governed by its constitution adopted 01111/2011 and last amended 1410412013. Pay policy for senior staff No staff member receives more than £60,000 In wages per annum. Reserves Pollcy The charity always aims to have 3 month5 of charitable expenditure as cash reserves, In the event of winding up or to support projects in a deficit for short periods of time until further funding is secured. This would currently amount to approximately £124,982. Rlsk Management The trustees continue to manage the risk of shortfalls in funding. The trustees mitigate this risk bv- a, Ensuring there are trustees with specific experience in fundraising who provide additional support to the organisation via a sub-committee of the Board b. Allocating appropriate resource to both fundraising and business development c. Diversifying the income base of the organisation through commSssioning, corporate engagement and the trading subsidiary. Page 8 of 23
Trustee responslbilities in relatlon to financial statemenls The charlty trustees of Shade are responsible for preparing a trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards. Charity law requires the trustees to prepare financial statements for each year which give a true and fair view of the state of affalrs of the charity incoming resources and application of resources, including the Income and expenditure, of the charitable for that periocl. In preparing the financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estlmates that are reasonable and prudent,. state whether applicable UK accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees arÈ responsible for keeping proper accounting records that disclose with reasonable accltracy at any time the flnanclal p051tiori of the charity and to enable them to ensure that the financial statements comply wSth the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity Df the corporate and financial information included on the charltable company'5 website. Signed on its behalf. Trustee Page 9 of 23
Independent Examiners Report Respectlve responslbllltles of trustee5 and examlner The trustees are responsible for the preparation of the accounts. The charrty's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 Ithe Charities Act) and that an independent examination is needed. The charity's gross income exceeded £250,000. It is my responsibility to: examine the accounts under sertion 145 of the Charities Act, to follow the procedure5 laid down in the general Directions given by the Charity Commission (under section 14515llbl of the Charities Act, and To state whether particular matters have come to my attention. Basls of Independent examiner's statement My examination was carried out in accordance with 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 explanati011s from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be reqtjired in an audit, and consequently no opinion is given a5 to whether the accounts present a 'true and fairf view and the report is limited to those matters set out in the statement below. Independent examlner's statement In connection with my examination, no material matters have come to my attention lother than that disclosed below if any) which gives me cause to believe that in, any material respect: accounting records were not kept in accordance the Charities Act; or the accounts do not accord with such records,. or the accotjnts do not comply with relevant accounting requirements of Charities Act other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination- or the accounts have not been prepared in accordance with the Charities SORP IFR51021. I 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 account5 to be reached. Date: 311512023 Firm.- Strone Accountant5 Address: 148a High Street South, London. E6 3RW Page 10 of 23
Vl. Financial Statements Statement of Financial Artivities 2022 Notes Unrestricted Restrlcted Total Funds 2021 Total Fund5 Income: Donations and leg3cles Income from charitable activities: Income from other trading activities.. 112,8(K) 229,777 112,800 229,777 74,012 194,764 136,017 136,017 210,602 Total income 478,594 478,594 479.378 Expenditure Cost of raising fund5 Fundraising Commercial trading operations Expenditure on charitable activities 2,000 12,300 105,464 105,464 394,464 2,196 396,660 443,307 Total expendlture 499,928 2,196 502,124 457,607 Net movement in funds for the year 121,334) 12,1961 123,5301 21,771 Reconciliation of funds Total Funds Brought Forward Transfer Between Fund5 107,211 9,005 116,216 94,445 Total funds Carried fOard 85,877 6,809 92,686 116,216 Page 11 of 23
Statement of Financial Position (Balance Sheet) 2022 2021 Fixed assets Tangible assets io 14,470 21,914 Total Flxed Assets 14,470 21,914 Current assets Debtors Cash at bank and in hand li 163,953 12,194 272,393 5,575 Total Current Assets 176,147 277,968 Llablllties Creditors falling due within one year 12 (49,989) 1133,6651 Current assets less current liabilitles 126,158 144,303 Creditors: falling due after more than l year (47,942) 150,0001 Net assets 92,686 116,216 The funds of the charity: 13 Unrestricted income funds.. Restricted income funds 85,877 6,809 107,211 9,005 Total charity funds 92,686 116,216 Financial Statements were approved on authorised for issue, Signed on their behalf by.. Trustee Page 12 of 23
Statement of Cash Flows 2022 2021 Cash flows from operating activities: Net movement in funds Add back depreciation charge Ilncreasel/Decrease Df debtors Increase/lDecreasel of creditors 123,530} 7,444 108,439 185,7341 21,771 8,043 1202,378} 93,055 Net cash flow of operatlng activitles 6,619 179,5091 Cash flows from investing actlvltles". Purchase of 35set5 119.9591 Net Cash flows from Investing activities: 119,9591 Change In cash and cash equivalents in the year 6,619 199,4681 Cash and Cash equivalents brought forward 5.575 105,042 Total cash and cash equivalents at year end 12,194 5,575 Page ia of 23
Notes to the Financial Statements Accountlng Policies The princlpal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial ststements are as follows; Basis of preparation (Flrst tlme adoption of FRS1021 The financial statements have been prepared in accordance with Accounting and Reporting by charities= Statement of Recommended Practice applicable to charities preparinE their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20151- (Charities SORP IFRS 10211. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. Shade meets the definition of a publlc benefit entity under FRS 102. Assets and liabilities are initially recognised at historical c05t Dr transaction value unless otherwise stated in the relevant accounting policy notelsl. b} Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the itemlsl of income have been met, it is probable that the income will be reived, and the amount can be measured reliablv. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recogni5ed when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred. For legacies, entitlement is taken ag the earlier of the date on which either.. the charity 15 aware that prohate has been granted, the estate has been finalised and notification has been made by the executorlsl to the charity that a distribution will be made, or when a distribution is received f rom the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, Dr the charity 15 aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material. Income received in advance of a project or provision of other specified service it is deferred until the criteria for income recognition are met. Donated services and facilities Donated professional servites and donated facilities are recognised as income wher) the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. Page 14 of 23
On receipt. donated professional Services and donated facilitie5 are recognised based on the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economlc benefit on the open market. dl Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. this is normally upon notification of the interest paid or payable by the Bank. Fund accounting Unrestricted funds are available to spend on attivities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the Trustees have decided to set aside to use for a specific purpose. Restricted funds are donations or grants which the funder has specified are to be solely used for areas of the charity's work or for speclfic projects being undertaken by the charity. Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. it Is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: Irrecoverable VAT Is charged as a cost against the actlvity for which the expenditure was incurred. g) Allocation of support costs Support C05ts are those functions that 3S515t the work of the charity but do not direttly LFndertake charitable activities. Support cost5 include back office costs, finance, personnel, payroll and governance costs which support the charitvs artistic programmes and activitie5. Support costs have been allocated in proportion to expenditure incurred ir) undertaking an activlty. h) Tangible fixed assets Plant, Property & Equipment are capitalised at cost and are depreciated over their estimated Useful economic lives on a straight-line basis as follows.. Asset Category Fixtures, Fittings and Electrical equipment Annual rate 20% Page 15 of 23
Debtors Trade and other debtor5 a recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discount5 due. Cash at bank and in hand Cash at bank and cash in hand includes cash or openlng of the deposit or similar account. k) Credltors and provisions Creditors and provisions are recognised where the charity has a present Obligation resulting from a past event that will probably result ir) the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Financial instruments Basic flnancial instruments are initially recognised at transaction value and subsequently measured at their settlement Value. ml Goirbg Concern The accounts are prepared on a going concern basis there are no material uncertainties about the charitle5 ability to continue Page 16 of 23
Income from donations and le8acles 2022 2021 Donations 112,800 74,012 The charlty benefits greatly from the involvement and enthusiastic support of it5 many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charitie5 SORP IFRS 1021, the economic contribution of general volunteers is not recognlsed In the accounts. Income from charitable a¢tlvltles 2022 2021 Income from charitable aciivities 2Z9,777 194,764 The charity runs a project named Al Rawda with the objective of advancing Islamic education, with aim to produce educated, active members of society able to propagate authentic knowledge derived from traditional sources and apply them in a contemporary context by Providing Educational courses for youths and adults alike. Income from other trading actlvltle5 2022 2021 Income from other trading activities 136,017 210,602 The charity facilitates fundraising events and sells books. Page 17 of 23
Analysis of expenditure on charitable activities Staff costs Other costs Support costs Total 2022 Total 2021 Restricted Funds 2,196 2,196 Unrestricted Funds 223,981 40,495 129,988 394,464 443,307 223,981 42,691 129,988 396.660 443,307 Analysls of staff costs, Charity remuneratlon and expenses, and key management personnel. 2022 2021 Salaries and wages 223,981 286,413 No employees had employee benefits more than £60,000. Pension costs are allocated to activities in proportion to the related staffing costs incurred. The key Management personnel of the parent charity, comprise the trustees and the chief Executive Officer of Shade. Page 18 of 23
staff Numbers The average monthly full-time equivalent was 13 staff and the average monthly number of full- time equivalent employees (including casual and part-time staffl during the year were as follows.. 2022 Number 2021 Number Administrative, Teaching & Support staff IFtEI 18 13 Related party transactions The charity ha5 an agreement with the dlrector of an interest fee loan from the direttor, which will be repayable as when the charity has sufficient reserves. Corporation Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Page 19 of 23
-
Tangible fixed assets 2022 2021 Plant, Property and Equipment Cost At L July 2021 Additions 113,251 93,292 19,959 At 31 July 2022 113,251 113,251 Depreclatlon At l July 2021 Charge for the year 91,336 7,444 83,294 8.043 At 31 July 2022 98,780 91,336 Net book value At 31 July 2022 14,470 21,914 At 31 July 2021 21,914 9,998 Page 20 of 23
-
Debtors 2022 2021 Trade debtors Other Debtors 20,710 143,243 10,500 261,893 163,953 272,393
-
Creditors.. arnounts falllng due within one year 2022 2021 Other Creditors Dlrectors Loan to the Charitv 42,436 7,553 126,112 7,553 49,989 133,665 Page 21 of 23
-
Analysls of charitable funds 2022 Closing Balance Opening Balance Income Transfers Expenditure Unrestricted income funds: 107,211 478,594 1499,928) 85,877 Restricted income funds 9,005 12,1961 6,809 116,216 478,594 1502,124) 92,686 2Q21 Closing balance Opening Balance Income Transfers Expenditure Unrestricted income funds: 86,440 478,378 1457,6071 107.211 Restricted income funds 8,005 1,000 9,005 94,445 479,378 1457,6071 116.216 Page 22 of 23
End of Report Page 23 of 23