OF THE YEAR ENDED 31 AUGUST 2022
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR CHILDREN OF ADAM
REGISTERED CHARITY NUMBER: 1153244
Annual Report for the Year Ended 31 August 2022
Contents
What’s inside?
| Report of the Trustees | 1 - 17 |
|---|---|
| Report of the Independent Auditors | 18 - 23 |
| Statement of Financial Activities | 24 |
| Balance Sheet | 25 |
| Cash Flow Statement | 26 |
| Notes to the Cash Flow Statement | 27 |
| Notes to the Financial Statements | 28 - 36 |
Hamilton Coopers Chartered Accountants Registered Auditors 66 Earl Street Maidstone Kent ME14 1PS
Annual Report for the Year Ended 31 August 2022
Report of the Trustees
The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
To advance Islam for the benefit of the public in accordance with the statements of belief by relieving the needs of people through Zakat, Lillah and Sadaqah forms of charity; in particular but not exclusively by:
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(i) Distributing food and other items and lifesaving supplies to the homeless with a special focus on the homeless of Peterborough.
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(ii) Supporting the charitable work of registered charities in the UK and overseas.
We confirm that in providing the above services and in writing this report, we have had regard to the guidance issued by the Charity Commission on public benefit.
Volunteers
The charity is grateful for the unstinting efforts of its volunteers who are involved in service provision and fundraising. It has not been possible to quantify the sterling efforts of our volunteers.
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Annual Report for the Year Ended 31 August 2022
INTRODUCTION
ACHIEVEMENT AND PERFORMANCE
Children of Adam has one clear goal: to provide assistance and relief to those around the world, beginning with communities at home in the UK. We are committed to tackling global poverty and empowering families and societies to build futures free from poverty, hunger and deprivation. Our work began in the UK, working with the homeless community in Peterborough. We provided hot meals to those living on the streets and grew increasingly alarmed at the extent of the need on the ground. Since then, we have provided over 60,000 food parcels, clothing and bedding among those most vulnerable across Peterborough.
Since then, our work has expanded to vulnerable communities around the world, distributing food and clothing; providing education, shelter, clean water and caring for some of the world's most vulnerable and neglected children. We provide emergency aid to communities affected by war, naturaldisaster, drought and conflict, while also creating long-term programmes to build brighter futures and uplifting families. We believe that no donation is too small, and that every penny given in search of Allah's mercy and acceptance will always bring goodness and reward, insha'Allah.
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Annual Report for the Year Ended 31 August 2022
UK PROJECTS
Peterborough Homeless & Rough Sleepers (UK)
The first project undertaken by Children of Adam was feeding the local homeless. Over the years this initiative has developed into working partnerships with local organisations to help and assist the homeless and rough sleepers of Peterborough.
Education & Empowerment (UK)
COA have been supporting Iqra Academy of PMET. PMET's vision is to raise the next generation of Muslims and Muslimah's, with a deep understanding of their social and religious responsibilities.
Enabling them to be human beings of the highest moral standards benefiting society here locally, nationally and internationally. In another project
CoA as part of a multi-agency including the Home office and Peterborough City Council have been providing support to Syrian families arriving in Peterborough as part of the UK governments pledge to take in Syrian families.
Each of the girls have progressed very strongly in the last year. Each student has met their targeted progression academically however our big success would be of our first cohort of this project who finished their year 11 studies and achieved their GCSEs results.
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Annual Report for the Year Ended 31 August 2022
MALAWI PROJECTS
Animal Sadaqah/Aqeeqah (Malawi)
Children of Adam have been offering the opportunity to complete an Animal sacrifice as Sadaqah and help feed the poor. The animal sacrifices have been carried out in Malawi, Africa with the meat being distributed to the poor communities. CoA have arranged for animal Sadaqah's including an Aqeeqah service (sacrifice in gratitude at the birth of a child).
NEPAL PROJECTS
Eid Food & Qurbani (Nepal)
Nepal is one of the poorest nations in the world. During Ramadhan & the festival of Eid. In Nepal the most vulnerable people in the locality, including orphans, widows, elderly, disabled and the ultra-poor, were selected by local representatives. Primarily the aid was distributed at pre-determined collection points. However, those who could not attend the gathering due to illness, disability or age-related factors; meat was delivered to them to their doorsteps.
LEBANON PROJECTS
Bread Distribution
Children of Adam is running a bakery in Lebanon, baking fresh bread every day. Freshly baked bread is distributed among Syrian refugee communities and vulnerable Lebanese families, benefiting 1,000 people every single day. We are also distributing food parcels to help combat hunger, supporting families to make healthy, nutritious meals.
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Annual Report for the Year Ended 31 August 2022
PAKISTAN PROJECTS
Gift A Vision
Eye care facilities are often scarce, inaccessible, and mainly based in urban areas, and many people in rural settings are not aware of the importance of looking after their vision. As a result, eye conditions such as cataracts are common, but can be easily treated if people have access to eye care.
This project was delivered in Punjab, Pakistan, the population is living in rural areas, majority of the people in rural areas don't have access to health care.
The beneficiaries belong to a poor background and majority of them were old, aged people, due to poverty the household income is used for food and very little or no money left for health and educational needs, therefore, people with partial blindness face ignorance and loneliness which severely affect their psychological well-being.
With our small intervention, beneficiaries are enabled to see the world once again and continue their normal life.
The positive outcome of our intervention resulting in positive psychological behaviour and a vibrant healthy society.
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Annual Report for the Year Ended 31 August 2022
PAKISTAN PROJECTS
Medical - Ambulance (Pakistan)
The objective of the project was to provide health services to the people who are far from the city. The primary role of Ambulance services is emergency pre-hospital medical care. We are providing both emergency response, patient transfer and providing easy access to health care services.
Food Distribution (Pakistan)
District Layyah is situated in South-West Punjab Province and is surrounded by Districts Bhakkar, Jhang, and Muzaffargarh and by Indus River in West with area of 6,291 Sq. KMs. Comprised of three Tehsils Layyah, Karor and Chaubara having population 1,121,951 with density 178 per Sq. KM and 87.1% population is living in rural area as per Population census 1998.
The population in this area comprises of mainly farmers and labourers whose income is seasonal and thus rendering them often in poverty. Food is a basic human necessity, and a lot of efforts has gone into providing a well-balanced food parcel. This year Children of Adam were able to assist a lot more families than last year.
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Annual Report for the Year Ended 31 August 2022
PAKISTAN PROJECTS
Water Pumps (Pakistan)
Nearly one billion people have no access to save drinking water, One of every five deaths of children under the age of 5 is due to water-related disease. Close to 80% of illness in developing nations is believed to be connected to poor water and sanitation issues.
Every beneficiary's household now has its own water source including a wide washing pad and drainage for wastewater. Many of them have developed kitchen gardens and now they eat fresh home-grown vegetables every day.
Some other benefits & outcomes they gained from this project is that the households have started saving for fulfilling their other development expenses. Due to this the project has contributed to reducing poverty of the benefited households. Financial savings have meant children can go to School and money set aside in some cases for medical expenses.
Shelter Homes (Pakistan)
Imagine living in a house that you think may collapse any day, Children of Adam with the kindness of our donors provide poor families with an opportunity to move into a safer new shelter house. Each house is provided with WC, Hand pump for clean water, a solar panel & home furnishing.
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Annual Report for the Year Ended 31 August 2022
PAKISTAN PROJECTS
Masjid Construction (Pakistan)
The Masjid holds a central role in the heart of a community, from a spirituality place of sanctuary to an educational institution. Children of Adam has been assisting impoverished communities to build a centre of religious learning for the future generations and has empowered the locals to strengthen their relationship with their faith. As well as supporting communities Children of Adam has been supporting institutions, which lack a place of worship.
Cleft Lip Operations (Pakistan)
Cleft lip and cleft palate (the roof of the mouth) are amongst the most common birth defects which occur when a baby's facial structures do not develop fully during pregnancy, causing child's lip or mouth not to fuse together properly. Together these are known as "orofacial clefts", and child may have either or both. Multan is a big city in South Punjab region, and we were able to provide support to children affected by these birth defects who otherwise would have had to live with this condition for the rest of their lives.
Fidya, Kaffara & Sadaqatul Fitr Feeding (Pakistan)
Giving Sadaqatul Fitr (also referred to as Zakatul Fitr or Fitrana) on the day of Eid was a practice of the Messenger SallAllahu 'alayhi wasallam, and it has been ordered for us all to follow. Like Zakah, it establishes the bonds of unity and brotherhood between the rich and poor. Not all of Muslims are able to fast during the month of Ramadan, and for those who can't, there is the option to pay Fidiyah.
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Annual Report for the Year Ended 31 August 2022
GAZA, PALESTINE PROJECTS
Hifz Sponsorship (Gaza, Palestine)
Our Hifiz programme is a unique three-year and a half sponsorship programme for children of Palestine, which supports children to read, learn and memories the Holy Qur'an. It also offers the high standard of benefits, which includes nutritious meals, clothing, comprehensive healthcare. Children are taught the Holy Qur'an in a clean and well-ventilated environment, with experienced teachers who use modern techniques in small class sizes.
During that period of hifiz the child gets to complete memorising the holy Quran. Once the memorisation is fully established in the heart of the child, a revision is followed; making the child confidant and ready to envision their future as an Imams, Qari' or teachers.
Eid Gifts (Gaza, Palestine)
CoA has been working with its partners in Gaza to bring a smile on the faces of children at the time of Eid. In total children were provided Eid gifts; comprising of orphans and vulnerable children living through poverty and illness.
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Annual Report for the Year Ended 31 August 2022
GAZA, PALESTINE PROJECTS
Orphan Sponsorship
Orphans are the most vulnerable children in the world. For most of them, a permanent family is not an immediate option. Alone and without care, they are exposed to the worst our world has to offer. The Orphan sponsorship project strives to improve the livelihood of orphan children who have lost the most important thing in their lives; their parent(s). This year from the generosity of our donors a total of 310 orphans were sponsored by Children of Adam.
Multiple Projects (Gaza, Palestine)
The humanitarian situation in the occupied Palestinian territory is among the world's most long-standing protracted crises and remains largely attributable to decades of conflict, blockades, internal division and de-development policies. Such a complicated context resulted in skyrocketing unemployment rates and thus poverty rates among the Palestinian population in the Gaza Strip. Such rampant poverty and unemployment are happening in an environment of limited power supply, poor water supply and restricted movement.
This year CoA with the support of our partners distributed aid for relief of everyday hardships.
Hygine kits
Wheelchair
Home repairs
Orphan Gifts Water tanks
Olive trees
food packs
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Annual Report for the Year Ended 31 August 2022
GREECE PROJECTS
GREECE PROJECTS
Food Parcels (Greece)
COA basic food items for the most vulnerable beneficiaries in Athens with focus on Syrian refugee families. Each beneficiary received a food basket that was enough to keep one family fed for two weeks. In refugee situation like in Greece, refugees depend heavily on the support from NGOs to secure their basic needs. They, the refugees, try to secure longer aid through being in touch with different NGOs to get some aid so they can keep going. The content of the food basket distributed was very good and the feedbacks from beneficiaries were very positive.
YEMEN PROJECTS
Hygiene Packs (Yemen)
Yemen is the largest humanitarian crisis in the world, with more than 24 million people - some 80 percent of the population - in need of humanitarian assistance, including more than 12 million children. Since the conflict escalated in March 2015, the country has become a living hell for the country's children. CoA through our UK partners we delivered emergency aid, this included the distribution of food parcels to individuals and family who rely heavily on donations
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Annual Report for the Year Ended 31 August 2022
GLOBAL PROJECTS
GLOBAL FOOD AID
Food Aid inc. Ramadhan
It is estimated that there are over 800 million people who are malnourished daily. Knowing this makes it even more vital that we assist with the feeding of the hungry and poor around the world. Children of Adam started out as a food poverty charity based in the UK. However, we soon evolved from a free food charity to an organisation that also provides clothing, education, shelter, clean water, and sanitation facilities. One of our missions, like many food charities across the UK, is to facilitate a global appeal.
EMPOWERMENT PROJECTS
Global
Without a long-term income or livelihood, escaping the claws of poverty is almost impossible. Living without a regular income leaves people and families unable to prepare effectively in their everyday lives, sometimes leaving them unable to afford even basic food. It also means that people are unable to save or invest, which makes it impossible to deal with last minute emergencies such as medical bills or home repairs. That's why, at Children of Adam, we're funding futures and helping families establish a long-term source of income. Each of our initiatives help families establish a small business, where they are able to earn a reliable, steady source of income.
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Annual Report for the Year Ended 31 August 2022
FINANCIAL REVIEW
Reserves policy
The trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the charity's continuing obligations. Currently the unrestricted reserves provide the charity with adequate funds to cover operational costs as a means for it to meet its charitable objectives for a minimum of six months. In the Trustees' view this would need to be extended to nine months in the future so as to be able to deliver more projects directly. Restricted funds are maintained to make sure that the delivery of these vital projects is not disrupted due unexpected rise in costs or fall in income. Where achievable the funds are dispensed to their related projects as soon as possible.
The charity has been funded solely by the generous donations of its supporters and the associated Gift Aid. The charity has managed to increase its profile from its work in the community this year and have raised public support.
The trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the charity's continuing obligations.
Currently the unrestricted reserves provide the charity with adequate funds to cover operational costs as a means for it to meet its charitable objectives for a minimum of three months. In the Trustees' view this would need to be extended to six months in the future so as to be able to deliver more projects directly.
Restricted funds are dispensed to their related projects as soon as possible.
FUTURE PLANS
With the cost of living crisis hitting everyone especially at home we will be looking at increasing our support to people here in the UK with a special focus in Peterborough. We will look at ways to improve access to education by working with Iqra Academy and more support for local community and youth initiatives, like boxing clubs and active sports. Globally, the Trustees will look to maintain the current projects and increase in the delivery of these. We will also look into supporting more people around the world through the installation of hand pumps, food aid and shelter homes.
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Annual Report for the Year Ended 31 August 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Children of Adam (COA) was established on 11th December 2012 to meet the need for providing food and other provisions to the homeless particularly in Peterborough and also supporting projects of registered charities in the UK and overseas.
Children of Adam operated as an unregistered voluntary organisation. It constituted a trust deed on 11/07/2013 in view of registering with the Charity Commissioners. On 05/08/2013 Children of Adam was granted registration as an unincorporated charity (Charity Number 1153244).
RECRUITMENT AND APPOINTMENT OF NEW TRUSTEES
When the charity identifies the need for new trustees. This is done if vacancies have arisen through resignations, or it may be that existing trustees have decided that one or more new trustees with specific skills are needed to help run the charity more effectively. The process includes potential new trustees completing a skills audit and signing a declaration of eligibility to become a trustee after which existing trustees will meet formerly to discuss the application before deciding to appoint any individual to the board.
RELATED PARTIES
The charity works with Peterborough Muslim Education Trust charity no. 1136767 (PMET), both charities share a common trustee. PMET provides a homeless shelter and educational services for Syrian refugees.
In addition to working with PMET COA supports the charitable work of registered charities in the UK for delivery of aid overseas to areas where COA currently does not implement the delivery of the project itself and/or has no volunteers or staff based overseas. Grant making is done through Memorandum's of Understanding with registered charities.
Occasionally Trustees may go over with partner organisations to oversee the projects its donors have contributed for to ensure funds were applied consistently to donor intentions and to take part in the delivery and distribution effort.
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Annual Report for the Year Ended 31 August 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Children of Adam Program Risk Management Framework ensures the Know Your Partner identification, verification and intended end users benefit through a set of described due-diligence procedures as per the standards of the charity commission guidance.
As part of our accountability to our donors, legal compliance and beneficiary, Children of Adam through different instruments ensures that project implementing partners are acting in a manner conducive to achieve our essential purpose of charitable work. This involves reviewing the following areas:
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Propose projects that respond to the needs, rights and interests of poor and marginalised women and men and involve them in identifying these, building on their own capacity
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Partners are capable of achieving significant positive change for poor and marginalised peopl demonstrate a clear vision for their work, compatible with Children of Adam's
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Partners demonstrate transparent governance and management
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Partners must be aware of the Red Cross principles, and SPHERE and HAP standards in any emergency work.
In addition to this we have policies in place like: Safeguarding, health & safety, risk assessment and more.
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Annual Report for the Year Ended 31 August 2022
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number 1153244
Principal address
228 Cromwell road Peterborough PE1 2HG
Trustees
Saqib Rehman Trustee Shujah Saklain (Chair) Trustee Dawood Hussain FCMA CGMA Trustee Azhar Mahmood Ahmed DipHE Trustee
Auditors
Hamilton Coopers Chartered Accountants Registered Auditors 66 Earl Street Maidstone Kent ME14 1PS
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Annual Report for the Year Ended 31 August 2022
TRUSTEES' RESPONSIBILITY STATEMENT
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 which 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
A resolution proposing the reappointment of Hamilton Coopers as auditors will be put to the annual general meeting.
May 8, 2023 Approved by order of the board of trustees on .................................................. and signed on its behalf by:
Saqib Rehman (May 8, 2023 09:58 GMT+1).................................................................. Saqib Rehman - Trustee
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Annual Report for the Year Ended 31 August 2022
INDEPENDENT AUDITORS REPORT
Opinion
We have audited the financial statements of Children of Adam (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 August 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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Annual Report for the Year Ended 31 August 2022
INDEPENDENT AUDITORS REPORT
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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-we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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Annual Report for the Year Ended 31 August 2022
INDEPENDENT AUDITORS REPORT
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the company and industry, and through discussion with the management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to their FCA permissions and requirements. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of
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Annual Report for the Year Ended 31 August 2022
INDEPENDENT AUDITORS REPORT
Override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgmental areas of the financial statements such as accrued income.
Audit procedures performed by the engagement team included:
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Discussions with management and assessment of known or suspected instances of non compliance with laws and regulations and fraud; and
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Assessment of identified fraud risk factors; and
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Challenging assumptions and judgements made by management in its significant accounting estimates; and
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Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
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Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
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Reading minutes of meetings of those charged with governance; and
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Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
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Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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INDEPENDENT AUDITORS REPORT
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
-Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members.
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Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases more when compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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INDEPENDENT AUDITORS REPORT
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Hamilton Coopers Chartered Accountants Registered Auditors 66 Earl Street Maidstone Kent ME14 1PS
Date: .............................................May 8, 2023
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Annual Report for the Year Ended 31 August 2022
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| INCOME AND ENDOWMENTS FROM Donations and legacies EXPENDITURE ON RAISING FUNDS Charitable activities General Animal Sacrifce & Aqeeqah Community & Youth Projects Education Eid Gifts Empowerment Projects Food Aid Masjid Medical - Ambulance Medical - Cataract Medical - Emergency Orphans Qurbani Shelter & Housing Street Children UK Project - Medical Aid UK Project - Hardship Grant Water Project Winter Relief Refugee appeal Emergency appeal Project monitoring Raising donations and legacies Total NET INCOME/(EXPENDITURE) Transfers between funds Total funds brought forward |
Notes 2 3 4 |
Unrestricted fund £ 347,439 117,984 285,855 - - - - - - - - - - - - - - - - - - - - - 403,389 - (56,400) 260,583 |
Unrestricted fund £ 347,439 117,984 285,855 - - - - - - - - - - - - - - - - - - - - - 403,389 - (56,400) 260,583 |
Restricted fund £ 867,456 - - 27,886 9,122 305,582 10,000 32,173 173,724 75,333 15,204 3,600 4,500 54,938 85,475 25,366 4,000 - - 173,317 43,666 3,700 20,124 482 1,068,192 - (200,736) 269,895 |
31-8-21 Total funds £ 1,343,204 59,841 219,976 21,094 10,700 197,728 1,470 3,494 229,572 48,394 - 4,700 73,604 64,548 48,817 13,942 - 5,040 8,070 127,773 58,465 - - - 1,197,228 - 145,976 384,502 |
||||
|---|---|---|---|---|---|---|---|---|---|
| TOTAL FUNDS CARRIED FORWARD | 204,183 | 69,159 | 273,342 | 530,478 | |||||
24
Annual Report for the Year Ended 31 August 2022
BALANCE SHEET 31 AUGUST 2022
| FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash at bank CREDITORS Amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS Unrestricted funds Restricted funds |
Notes 10 11 12 13 |
Unrestricted fund £ - 1,905 206,478 208,383 (4,200) 204,183 204,183 204,183 |
Unrestricted fund £ - 1,905 206,478 208,383 (4,200) 204,183 204,183 204,183 |
Restricted fund £ 3,163 13,000 212,671 225,671 (159,675) 65,996 69,159 69,159 |
Restricted fund £ 3,163 13,000 212,671 225,671 (159,675) 65,996 69,159 69,159 |
31-8-22 Total funds £ 3,163 14,905 419,149 434,054 (163,875) 270,179 273,342 273,342 204,183 69,159 |
31-8-21 Total funds £ 3,560 18,126 513,939 532,065 (5,147) 526,918 530,478 530,478 260,583 269,895 |
||
|---|---|---|---|---|---|---|---|---|---|
| TOTAL FUNDS | 273,342 | 530,478 |
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:May 8, 2023
Saqib Rehman (May 8, 2023 09:58 GMT+1) ~~.............................................~~
Saqib Rehman - Trustee
25
Annual Report for the Year Ended 31 August 2022
CASH FLOW STATEMENT
----- Start of picture text -----
31-8-22 31-8-21
Notes
£ £
Cash flows from operating activities
Cash generated from operations 1 (94,133) 133,135
Net cash provided by operating activities (94,133) 133,135
Cash flows from investing activities
Purchase of tangible fixed assets (657) (4,746)
Net cash (used in)/provided by investing activities (657) (4,746)
Change in cash and cash equivalents in the reporting (94,790) 128,389
period
Cash and cash equivalents at the beginning of the 513,939 385,550
reporting period
Cash and cash equivalents at the end of the reporting 419,149 513,939
period
----- End of picture text -----
26
Annual Report for the Year Ended 31 August 2022
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash provided by operations 31-8-22 £ (257,136) 1,054 3,221 158,728 (94,133) |
31-8-21 £ 145,976 1,186 (9,284) (4,743) 133,135 |
|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank Total |
At 1-9-21 Cash fow At 31-8-22 £ £ £ 513,939 (94,790) 419,149 513,939 (94,790) 419,149 513,939 (94,790) 419,149 |
|---|---|
27
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
1. ACCOUNTING POLICIES Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer Equipment 25% Reducing balance
Fixtures and Fittings 25% Reducing balance
Taxation
The charity is exempt from tax on its charitable activities.
28
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. DONATIONS AND LEGACIES
| 2. DONATIONS AND LEGACIES | ||
|---|---|---|
| 31-8-22 | 31-8-21 | |
| £ | £ | |
| Donations & Grants | 1,214,895 | 1,343,204 |
| 3. RAISING DONATIONS AND LEGACIES | ||
| 31-8-22 | 31-8-21 | |
| £ | £ | |
| Fundraising costs | 117,984 | 59,841 |
29
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
4. CHARITABLE ACTIVITIES COSTS
| . General Animal Sacrifce & Aqeeqah Community & Youth Projects Education Eid Gifts Empowerment Projects Food Aid Masjid Medical - Ambulance Medical - Cataract Medical - Emergency Orphans Qurbani Shelter & Housing Street Children Water Project Winter Relief Refugee appeal Emergency appeal Project monitoring Grant funding of activities (see note 5) £ 9,842 27,886 9,122 305,582 10,000 32,173 173,724 75,333 15,204 3,600 4,500 54,938 85,475 25,366 4,000 173,317 43,666 3,700 20,124 482 1, , 078 034 |
Support costs (see note 6) Totals £ £ 285,855 27,886 9,122 305,582 10,000 32,173 173,724 75,333 15,204 3,600 4,500 54,938 85,475 25,366 4,000 173,317 43,666 3,700 20,124 482 - - - - - - - - - - - - - - - - - - - 276,013 276 013 , 1, , 354 047 |
Totals £ 285,855 27,886 9,122 305,582 10,000 32,173 173,724 75,333 15,204 3,600 4,500 54,938 85,475 25,366 4,000 173,317 43,666 3,700 20,124 482 |
|---|---|---|
30
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
5. GRANTS PAYABLE
| 5. GRANTS PAYABLE | ||||
|---|---|---|---|---|
| 31 8 22 - - |
31 8 21 - - |
|||
| £ | £ | |||
| General | 9,842 | 13,100 | ||
| Animal Sacrifce & Aqeeqah | 27,886 | 21,094 | ||
| Community & Youth Projects | 9,122 | 10,700 | ||
| Education | 305,582 | 197,728 | ||
| Eid Gifts | 10,000 | 1,470 | ||
| Empowerment Projects | 32,173 | 3,494 | ||
| Food Aid | 173,724 | 229,572 | ||
| Masjid | 75,333 | 48,394 | ||
| Medical - Ambulance | 15,204 | - | ||
| Medical - Cataract | 3,600 | 14,700 | ||
| Medical - Emergency | 4,500 | 73,604 | ||
| Orphans | 54,938 | 64,548 | ||
| Qurbani | 85,475 | 48,817 | ||
| Shelter & Housing | 25,366 | 13,942 | ||
| Street Children | 4,000 | - | ||
| UK Project - Medical Aid | - | 5,040 | ||
| UK Project - Hardship Grant | - | 8,070 | ||
| Water Project | 173,317 | 127,773 | ||
| Winter Relief | 43,666 | 58,465 | ||
| Refugee appeal | 3,700 | - | ||
| Emergency appeal | 20,124 | - | ||
| Project monitoring | 482 | - | ||
| 1,078,034 | 930,511 | |||
| 6. SUPPORT COSTS | ||||
| Information | ||||
| Management | Finance | technology | ||
| £ | £ | £ | ||
| General | 16,842 | 7,960 | 18,306 | |
| Staff | Governance | |||
| Costs | Other | costs | Totals | |
| £ | £ | £ | £ | |
| General | 188,172 | 8,426 | 36,307 | 276,013 |
6. SUPPORT COSTS
31
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
8. STAFF COSTS
| 8. STAFF COSTS Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: No employees received emoluments in excess of £60,000. |
31-8-22 £ 174,583 11,478 2,111 188,172 31-8-22 8 |
31-8-21 £ 140,107 7,888 2,284 150,279 31-8-21 7 |
|---|---|---|
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Raising donations and legacies Total EXPENDITURE ON RAISING FUNDS Unrestricted fund £ 415,676 1,005 415,676 |
Restricted Total fund funds £ £ 927,528 1,343,204 58,836 59,841 927,528 1,343,204 |
|---|---|
32
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
| Charitable activities Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS TOTAL FUNDS CARRIED FORWARD General Animal Sacrifce & Aqeeqah Community & Youth Projects Education Eid Gifts Empowerment Projects Food Aid Masjid Medical - Cataract Medical - Emergency Orphans Qurbani Shelter & Housing UK Project - Medical Aid UK Project - Hardship Grant Water Project Winter Relief Transfers between funds Net movement in funds Total funds brought forward |
218,696 978,532 1,197,228 196,980 85,973 260,583 (22,370) 174,610 (51,004) 298,529 269,895 22,370 (28,634) 145,976 384,502 530,478 - 145,976 Unrestricted Restricted Total fund fund funds £ £ £ 217,691 - - - - - - - - - - - - - - - - 21,094 10,700 197,728 1,470 3,494 229,572 48,394 4,700 73,604 64,548 48,817 13,942 5,040 8,070 127,773 58,465 2,285 21,094 10,700 197,728 1,470 3,494 229,572 48,394 4,700 73,604 64,548 48,817 13,942 5,040 8,070 127,773 58,465 219,976 |
|---|---|
33
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
10. TANGIBLE FIXED ASSETS
| COST At 1 September 2021 At 1 September 2021 DEPRECIATION NET BOOK VALUE At 31 August 2022 At 31 August 2021 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Payments on account Prepayments and accrued income Additions Charge for year At 31 August 2022 At 31 August 2022 Fixtures and Computer fttings equipment £ £ 275 69 4,471 1,117 154 3,009 206 3,354 31-8-22 £ 13,000 - 1,905 14,905 - 52 121 657 1,002 2,119 275 5,128 |
Totals £ 4,746 1,186 3,163 3,560 31-8-21 £ 15,000 3,126 - 18,126 657 1,054 2,240 5,403 |
|---|---|
34
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Taxation and social security Trade creditors Other creditors 13. MOVEMENT IN FUNDS Unrestricted funds Unrestricted fund Restricted funds Restricted fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds Unrestricted fund Restricted funds Restricted fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds Unrestricted fund Restricted funds Restricted fund TOTAL FUNDS Net movement At 1 9 21 - - in funds £ £ 260,583 (56,400) 269,895 (200,736) 530,478 (257,136) Incoming resources £ 347,439 867,456 1,214,895 Net movement At 1 9 20 - - in funds £ £ 85,973 196,980 298,529 (51,004) 384,502 145,976 |
5,769 153,529 4,577 163,875 31-8-22 £ Resources expended £ (403,839) (1,068,192) (1,472,031) Transfers b/w funds £ - - - Transfers b/w funds £ (22,370) 22,370 - |
482 - 4,665 5,147 31-8-21 £ £ 204,183 69,159 273,342 Movement in funds £ (56,400) (200,736) (257,136) At 31 8 2 - - 1 £ 260,583 269,895 530,478 At 2 31-8- 2 |
|
|---|---|---|---|
35
Annual Report for the Year Ended 31 August 2022
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
13. MOVEMENT IN FUNDS CONTINUED
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| Unrestricted fund | 415,676 | (218,696) | 196,980 |
| Restricted funds | |||
| Restricted fund | 927,528 | (978,532) | (51,004) |
| TOTAL FUNDS | 1,343,204 | (1,197,228) | 145,976 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | Transfers | |||
|---|---|---|---|---|
| movement | between | At | ||
| At 1-9-20 | in funds | funds | 31-8-22 | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| Unrestricted fund | 85,973 | 140,580 | -22,370 | 204,183 |
| Restricted funds | ||||
| Restricted fund | 298,529 | -251,740 | 22,370 | 69,159 |
| TOTAL FUNDS | 384,502 | -111,160 | 0 | 273,342 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted fund Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 720,497 1,837,602 2,558,096 |
Resources expended £ -407,936 -2,261,323 -2,669,259 |
Movement in funds £ 312,561 -423,721 |
|---|---|---|---|
| -111,160 |
14. RELATED PARTY DISCLOSURES
charities share a common trustee.
36
CHILDREN OF aaa(ri 03003210032 info@)childrenofad3m.net www.childrenofadam.org 228 Cromwell Road, PEI 2HG Scan Me Registered Charity No. 1153244 ifj)childrenofadamuk