SHADE Annual Report and Financial Statements Period ended 31" July 2023 Charity Number: 1149699
h2Aa Contents Administrative Information............................................................................. Trustees, Report.............................................................................................. Objectives & Activities Financial Review ............................................................................................. Iv. Structure, Governance and Management........................................................ Independent Examiners Report.....................................................................10 Financial Statements.....................................................................................11 vi. Statement of Financial Activities...................................................................... 11 Statement of Financial Position (Balance Sheet) . Statement of Cash Flows.................................................................................. 13 12 Notes to the Financial Statements. 14 Page 2 of 23
h2Aa Administrative Information Charity Number- 1149699 Registered office: The Shade Centre, 62 Church Road, London, E12 6AF Directors and Trustees The directors of the Shade (the charityl are its trustees for charity law. The trustees and officers serving during the year and since the year end were as follows- Mr Abdul Gaffar Mr Muhammad Abdul Gofar Khan Mr Koyson Khan Mr Mohammed Sayeedur Rahman Appointed 28 January 2019 Appointed 16 May 2023 Appointed 16 May 2023 Appointed l October 2023 Our Advisers Bankers.. HSBC Bank, East Ham, London E6 2HX Independent Examiner: Strone Accountants, Unit 10, 45 Gillender Street, E14 6RN Page 3 of 23
h2Aa Trustees, Report The trustees are pleased to present their annual directors. report together with the financial statements of the charity for the period ended 31 July 2023 which are also prepared to meet the requirements for a directors, report and accounts for Charities Act purposes. The financial statements comply with the Charities Act 2011, by its constitution, 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 U K and Republic of Ireland IFRS 1021 (effective l January 20151. Page 4 of 23
h2Aa Objectives & Activities l. To act as a resource for people living in London and neighbouring regions by providing advice and assistance and organizing programs of physical, educational and other activities as a means of- al advancing in life and helping young people by developing their skills, capacities and capabilities 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 area5 through the provision of financial assistance, support, education and practical advice. 3. The relief of financial need and suffering among victims of natural or other kinds of disaster in the form of money lor other means deemed suitable) for persons, bodies, organizations and/or countries affected including the provision of medical aid. Page 5 of 23
h2Aa Activities SHADE is community-based umbrella organisation that runs programs and activities catering for the social, educational, recreational and religious needs of the community. The Shade Centre This is a community centre where we provide health and educational activities. Some of the activities are.. -Ladies 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 - Youth Project Iyouth under Shade) Football Club (Shade FC) Page 6 of 23
h2Aa Financial Review The trustees have reviewed the reserves of the Charity. Their policy is to hold enough liquid funds to meet 3 months of operating costs of the Charity. Page 7 of 23
h2Aa IV. Structure, Governance and Management Governing Document Shade an un-incorporated charitable organisation governed by its constitution adopted 01/11/2011 and last amended 1410412013. Pay policy for senior staff No staff member receives more than £60,000 in wages per annum. Reserves Policy The charity always aims to have 3 months 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 £123,033. Risk Management The trustees continue to manage the risk of shortfalls in funding. The trustees mitigate this risk by: 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 Diversifying the income base of the organisation through commissioning, corporate engagement and the trading subsidiary. Page 8 of 23
h2Aa Trustee responsibilities in relation to financial statements The charity 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 affairs of the charity incoming resources and application of resources, including the income and expenditure, of the charitable for that period. 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 estimates 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 are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with 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 of the corporate and financial information included on the charitable company s website. 3010%2024 Approved by our Board of Trustees on ............................ Signed on its behalf. MK&A Trustee Muhammad Abdul Gofar Khan Page 9 of 23
h2Aa Independent Examiners Report Respective responslbilitles of trustees and examlner The trustees are responsible for the preparation of the accounts. The charit¢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 charitrfs gross income exceeded £250,000. It is my responsibility to.. examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission lunder section 14515llbl of the Charities Act, and To state whether particular matters have come to my attention. Basis 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 explanations from the 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 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 accounts 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 IFRS1021. 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 accounts to be reached. Date: 301512024 Firm: Strone Accountants Address: Strone Accountants, Unit 10, 45 Gillender Street, E14 6RN Page 10 of 23
h2Aa Vl. Financial Statements Statement of Financial Activities 2023 Notes Unrestricted Restricted Total Funds 2022 Total Funds Income: Donations and legacies Income from charitable artivities.. Income from other trading artivities: 177,387 229,060 177,387 229,060 112,800 229,777 50,009 50,009 136,017 Total income 456,456 456,456 478,594 Expenditure Cost of raising funds Fundraising Commercial trading operations Expenditure on charitable activities 6,619 6,619 105,464 485,512 485,512 396,660 Total expenditure 492,131 492,131 502,124 Net movement in funds for the year (35,6751 135,675) 123,5301 Reconciliation of funds Total Funds Brought Forward Transfer Between Funds 85,877 6,809 92,686 116,216 Total funds carried forward 50,202 6,809 57,011 92,686 Page 11 of 23
h2Aa Statement of Financial Posltion (Balance Sheet) 2023 2022 Fixed assets Tangible assets io 25,266 14,470 Total Flxed Assets 25,266 14,470 Current assets Debtors Cash at bank and in hand li 179,954 8,865 163,953 12,194 Total Current Assets 188,819 176,147 Liabilities Creditors falling due within one year 12 (114,618) 149,9891 Current assets less current Ilabilities 74,201 126,158 Credltors: falllng due after more than l year {42,456) 147,9421 Net assets 57,011 92,686 The funds of the charlty: 13 Unrestricted income funds: Restricted income funds 50,202 6,809 85,877 6,809 Total charity funds 57,011 92,686 Financial statements were approved on authorised for issue. Signed on their behalf by: 3010512024 .by the members of the committee and M KAA*7 Trustee Muhamrnad Abdul Gofar Khan Name......................... Page 12 of 23
h2Aa Statement of Cash Flows 2023 2022 Cash flows from operating activitles: Net movement in funds Add back depreciation charge IlncreasellDecrease of debtors Increase/lDecreasel of creditors (35,6751 6,982 (16,0001 59,143 25,530 7,444 108,439 185,7341 Net cash flow of operating activities 14,450 6,619 Cash flows from investing activities: Purchase of assets (17,7781 Net Cash flows from investing artivities: {3,3281 Change In cash and cash equivalents in the year {3,3281 6,619 Cash and Cash equivalents brought forward 12,194 5,575 Total cash and cash equivalents at year end 8,865 12,194 Page 13 of 23
h2Aa Notes to the Financial Statements Accounting Policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: Basis of preparation (First time adoption of FRS1021 The financial statements have been prepared in accordance with 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 IFRS 1021 (effective 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 public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transartion value unless otherwise stated in the relevant accounting policy notelsl. bl 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 received, and the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised 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 as the earlier of the date on which either: the charity is aware that probate 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 from 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. or the charity is 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 services and donated facilities are recognised as income when 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
h2Aa On receipt. donated professional services and donated facilities 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 economic 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 activities 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 charitls work or for specific projects being undertaken by the charity. f I 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 activity for which the expenditure was incurred. gl Allocation of support costs Support costs are those function5 that assist the work of the charity but do not directly undertake charitable activities. Support Costs include back office costs, finance, personnel, payroll and governance costs which support the charitqs artistic programmes and activities. Support costs have been allocated in proportion to expenditure incurred in undertaking an activity. 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
h2Aa Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand Cash at bank and cash in hand includes cash or opening of the deposit or similar account. kl Creditors and provisions Creditors and provisions are recogni5ed where the charity has a present obligation resulting from a past event that will probably result in 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 financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. m} Going Concern The accounts are prepared on a going concern basis there are no material uncertainties about the charities ability to continue Page 16 of 23
h2Aa Income from donations and legacies 2023 2022 Donations 177,387 112,800 The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP IFRS 1021, the economic contribution of general volunteers is not recognised in the accounts. Income from charitable artivities 2023 2022 Income from charitable activities 229,060 229,777 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 tradlng artivities 2023 2022 Income from other trading activities 50,009 136.017 The charity facilitates fundraising events and sells books. Page 17 of 23
h2Aa Analysis of expenditure on charitable activities Staff costs Other Support costs Total Total costs 2023 2022 Restricted Funds 2,196 Unrestricted Funds 318,096 57,522 116,512 492,130 394,464 318,096 57,522 116,512 492,130 396,660 Analysis of staff costs, Charity remuneration and expenses, and key management personnel. 2023 2022 Salaries and wages 318,096 223,981 No employees had employee benefits more than £60,c). 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
h2Aa Staff Numbers The average monthly number of staff was 20 staff and the average monthly number offull-time equivalent employees lincluding casual and part-time staffj during the year were as follows- 2023 Number 2022 Number Administrative. Teaching & Support staff IFTEI 15 18 Related party transactions The charity has an agreement with the director of an interest fee loan from the director, 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
h2Aa 10. Tangible fixed assets 2023 2022 Plant, Property and Equipment Cost At l July 2022 Additions 113,251 17.778 113,251 At 31 July 2023 131,029 113,251 Depreciation At l July 2022 Charge for the year 98,780 6,982 91,336 7,444 At 31 July 2023 105,762 98,780 Net book value At 31 July 2023 25,267 14,470 At 31 July 2022 14,470 21,914 Page 20 of 23
h2Aa 11. Debtors 2023 2022 Trade debtors Other Debtors 20,710 159,244 20,710 143,243 179,954 163.953 12. Creditors: amounts falling due within one year 2023 2022 Other Creditors Directors Loan to the Charity 107,065 7,553 42,436 7,553 114,618 49,989 Page 21 of 23
h2Aa 13. Analysis of charitable funds 2023 Closing Balance Opening Balance Income Transfers Expenditure Unrestricted income funds: 85,877 456,456 {492,131) 50,202 Restricted income funds 6,809 6,809 92,686 456,456 {492,131) 57,011 2022 C105ing balance Opening Balance Income Transfers Expenditure Unrestricted income funds.. 107,211 478,594 1499,9281 85,877 Restricted income funds 9,005 12,1961 6,809 116,216 478,594 1502,1241 92,686 Page 22 of 23
h2Aa End of Report Page 23 of 23