**REGISTERED CHARITY NUMBER: 1154046**
## **Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 July 2021**
**for**
**Al-Hijrah Trust**
Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL
**Al-Hijrah Trust**
**Contents of the Financial Statements for the Year Ended 31 July 2021**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|3|
|**Independent Examiner's Report**||4||
|**Statement of Financial Activities**||5||
|**Balance Sheet**||6||
|**Notes to the Financial Statements**|7|to|13|
## **Al-Hijrah Trust**
## **Report of the Trustees for the Year Ended 31 July 2021**
The trustees present their report with the financial statements of the charity for the year ended 31 July 2021. 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**
The charity's constitution defines the charity's objects as being to:
1. To advance the Islamic religion anywhere in the world for the benefit of the public through the holding of prayer meetings, lectures, producing and/or distributing literature on the Islamic faith to enlighten others about the Islamic faith.
2. The prevention or the relief of poverty anywhere in the world by providing grants, items and services to the individuals in need and/or charities, or other organisations working to prevent or relieve poverty.
3. For the public benefit to promote education at every level, anywhere in the world, in such ways as the charity trustees think appropriate.
## **Public benefit**
In setting these objectives and aims, the trustees have given due regard to the guidance published by the Charity Commission on Public Benefit.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
This year the Charity's activities remained curtailed due to the lockdowns imposed following the Covid-19 pandemic. Many activities were opened but then had to be shut down again and this happened a couple of times.
Towards the end of the year, activities were resumed during Ramadhan and have continued, gradually increasing.
The Trustees continued to actively work with the Interim Manager to resolve any issues related to the Charity Commission statutory enquiry. In January 2021, day-to-day running of the Charity was passed back to the Trustees. The Interim Manager continued in place to support the Charity in reclaiming the Cherrywood building.
## **Mosque**
The Mosque continued to be well attended through the year for both daily prayers and Friday congregational prayers.
Fundraising for the renovation project has continued and we are hoping to start the building work in 2022.
A regular programme of religious and educational talks has been carried out using a variety of speakers. There has been much more involvement from sisters providing educational and social activities for local women and children.
## **Madrasah**
The Madrasah remained popular throughout the year with approximately 300 children. We have focussed on improving the provision of teaching and learning using the new syllabus which includes Quran, Arabic and Islamic Studies.
The neighbourhood in which the madrasah is based is a challenging one, with very high youth unemployment and youth crimes being a daily reality. The madrasah aims to steer the children into adolescence with the skills and outlook to manage these challenges.
Page 1
## **Al-Hijrah Trust**
## **Report of the Trustees for the Year Ended 31 July 2021**
## **FINANCIAL REVIEW**
## **Financial position**
During the year, the charity raised £140,161 in donations £91,553 of which were raised for specific purposes), a further £49,617 from Madrasah fees and £99,985 in rental income. The charity claimed £55,291 under the Governments Coronavirus Job Retention Scheme. Total income for the year was £345,056 (2020 £230,415).
The charity spent a total of £324,511 on its charitable activities (2020 £340,897).
## **Reserves policy**
Total unrestricted funds at 31 July 2021 were £576,937 (2020 £647,945). Of these, £(69,308) were 'free reserves'. Free reserves are reserves which do not include restricted funds or funds tied up in the fixed assets. As at 31 July, these negative free reserves are supported by the generous Qarde Hasan loans made to the charity totalling £150,000.
Total restricted reserves at 31 July 2021, being reserves of income given for specified purposes, were £91,553. Further details of these reserves are given in the notes to the financial statements.
## **FUTURE PLANS**
Supporting the Charity Commission in removing the charge from the Cherrywood Centre remains a priority for the coming year.
We are continuing the fundraising for the Mosque extension and aim to start the building work in 2022.
We are aiming to restart the Tuition Project to boost attainment for pupils at Key Stage 3 and GCSE level in September / October 2021.
We are also aiming to increase activities for sisters and children, including developing a Scouts group for boys and girls, in conjunction with the Scouts Association.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is governed by its governing document, registered on 2 October 2013 and amended on 11 December 2020.
## **Charity constitution**
The Charity is constituted as a Charitable Incorporated Organisation (CIO), as a body corporate under Part 11 of the Charities Act 2011 on the 02 Oct 2013. The CIO registered with the Charity Commission on the same day.
## **Organisational structure**
Trustees are legally responsible for the governance and management of the charity. Trustees are responsible of setting strategies and policies for ensuring these are implemented.
## **Risk management**
The trustees have considered the major risks to which the charity is exposed and have reviewed potential risks. Systems and procedures have been put in place to manage the risks and to mitigate any adverse outcomes.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1154046
## **Principal address**
Trust House 73 Burbidge Road Birmingham West Midlands B9 4US
Page 2
## **Al-Hijrah Trust**
## **Report of the Trustees for the Year Ended 31 July 2021**
## **Trustees**
Dr M Hanif N Mahmood M Bashir W Altaf (resigned 16.9.20) Mrs E Turner Interim Manager
## **Independent Examiner**
Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL 6th May 2022 Approved by order of the board of trustees on ............................................. and signed on its behalf by:
................................................................. Dr M Hanif - Trustee
Page 3
## **Independent Examiner's Report to the Trustees of Al-Hijrah Trust**
## **Independent examiner's report to the trustees of Al-Hijrah Trust**
I report to the charity trustees on my examination of the accounts of Al-Hijrah Trust (the Trust) for the year ended 31 July 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and 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.
David Williams FCA FCCA Institute of Chartered Accountants in England and Wales Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL 6 May 2022 Date: .............................................
Page 4
## **Al-Hijrah Trust**
## **Statement of Financial Activities for the Year Ended 31 July 2021**
|**31.7.21**
Unrestricted
Restricted
**Total**
fund
funds
**funds**
Notes
£
£
**£**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**103,899**
**91,553**
**195,452**
**Charitable activities**
4
Charitable activities
**49,617**
**-**
**49,617**
Investment income
3
**99,985**
**-**
**99,985**
Other income
**2**
**-**
**2**
**Total**
**253,503**
**91,553**
**345,056**
**EXPENDITURE ON**
**Charitable activities**
Charitable activities
**324,511**
**-**
**324,511**
**NET INCOME/(EXPENDITURE)**
**(71,008)**
**91,553**
**20,545**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**647,945**
**-**
**647,945**
**TOTAL FUNDS CARRIED FORWARD**
**576,937**
**91,553**
**668,490**|31.7.20
Total
funds
£
62,838
75,608
91,369
600
230,415
340,897
(110,482)
758,427
647,945|
|---|---|
The notes form part of these financial statements
Page 5
## **Al-Hijrah Trust**
## **Balance Sheet 31 July 2021**
|Notes
**FIXED ASSETS**
Tangible assets
9
**CURRENT ASSETS**
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
10
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
11
**NET ASSETS**
**FUNDS**
12
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
**646,245**
**86,740**
**(6,048)**
**80,692**
**726,937**
**(150,000)**
**576,937**|Restricted
funds
£
**5,900**
**85,653**
**-**
**85,653**
**91,553**
**-**
**91,553**|**31.7.21**
**Total**
**funds**
**£**
**652,145**
**172,393**
**(6,048)**
**166,345**
**818,490**
**(150,000)**
**668,490**
**576,937**
**91,553**
**668,490**|31.7.20
Total
funds
£
674,404
142,257
(9,216)
133,041
807,445
(159,500)
647,945
647,945
-
647,945|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 6th May 2022
............................................. M Hanif - Trustee
The notes form part of these financial statements
Page 6
**Al-Hijrah Trust**
## **Notes to the Financial Statements for the Year Ended 31 July 2021**
## **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 been 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**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## **Donations and legacies**
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## **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.
## **Charitable activities**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 50 years Fixtures and fittings - Straight line over 5 years
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Page 7
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Cash and cash equivalents**
## **Taxation**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **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.
## **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.
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **2. DONATIONS AND LEGACIES**
|Donations
Grants
Grants received, included in the above, are as follows:
HMRC - coronavirus job retention scheme|**31.7.21**
**£**
**140,161**
**55,291**
**195,452**
**31.7.21**
**£**
**55,291**|31.7.20
£
42,558
20,280|
|---|---|---|
|||62,838|
|||31.7.20
£
20,280|
Page 8
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
|**3.**
**INVESTMENT INCOME**
Rents received
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Madrasah fees
Charitable activities
**5.**
**SUPPORT COSTS**
Charitable activities
Support costs, included in the above, are as follows:
Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Telephone and fax
Printing, postage and stationery
Advertising
Sundries
Repairs and maintenance
Cleaning
Consultancy
Accountancy
Depreciation of tangible and heritage
assets
Accountancy and legal fees
Independent Examination fee
Legal fees|**31.7.21**
**£**
**99,985**
**31.7.21**
**£**
**49,617**
Direct
Governance
costs
costs
£
£
**260,825**
**63,686**
**31.7.21**
Charitable
activities
**£**
**103,559**
**-**
**273**
**13,173**
**30,968**
**60,936**
**2,494**
**3,164**
**388**
**808**
**4,141**
**32**
**6,565**
**6,165**
**28,159**
**1,200**
**-**
**62,486**
**324,511**|31.7.20
£
91,369
31.7.20
£
75,608
Totals
£
**324,511**
31.7.20
Total
activities
£
**147,185**
**2,046**
**-**
**8,583**
**29,587**
**53,980**
**2,951**
**475**
**-**
**1,995**
**35,918**
**7,789**
**2,421**
**4,500**
**26,880**
**-**
**1,200**
**15,387**
**340,897**|
|---|---|---|
Page 9
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
## **6. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 July 2021 nor for the year ended 31 July 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.
## **7. 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:
Employees
No employees received emoluments in excess of £60,000.
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
62,838
**Charitable activities**
Charitable activities
75,608
Investment income
91,369
Other income
600
**Total**
230,415
**EXPENDITURE ON**
**Charitable activities**
Charitable activities
340,897
**NET INCOME/(EXPENDITURE)**
(110,482)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
758,427
**TOTAL FUNDS CARRIED FORWARD**
647,945|**31.7.21**
**£**
**103,559**
**-**
**273**
**103,832**
**31.7.21**
**17**
Restricted
funds
£
-
-
-
-
-
-
-
-
-|31.7.20
£
147,185
2,046
-
149,231
31.7.20
16
Total
funds
£
62,838
75,608
91,369
600
230,415
340,897
(110,482)
758,427
647,945|
||||
Page 10
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
## **9. TANGIBLE FIXED ASSETS**
|Freehold
property
£
**COST**
At 1 August 2020
**700,000**
Additions
**-**
At 31 July 2021
**700,000**
**DEPRECIATION**
At 1 August 2020
**70,000**
Charge for year
**14,000**
At 31 July 2021
**84,000**
**NET BOOK VALUE**
At 31 July 2021
**616,000**
At 31 July 2020
630,000
**10.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors
**11.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Other creditors|Fixtures
and
fittings
£
**64,896**
**5,900**
**70,796**
**20,492**
**14,159**
**34,651**
**36,145**
44,404
**31.7.21**
**£**
**6,048**
**31.7.21**
**£**
**150,000**|Totals
£
**764,896**
**5,900**|
|---|---|---|
|||**770,796**|
|||**90,492**
**28,159**|
|||**118,651**|
|||**652,145**|
|||674,404|
|||31.7.20
£
9,216
31.7.20
£
159,500|
The accounts include Qarde Hasan of £150,000 (2020:159,500) as long-term liabilities. These represent historic interest free loans given to the previous Al Hijrah Trust (charity no: 1018850) and now transferred to the new Al Hijrah CIO entity (charity no: 115046). £9,500 was repaid in the year.
The records supporting many of these old liabilities is weak, as it was lost when the Al Hijrah school was taken over by the Independent Executive Board (IEB) in 2014. Work is ongoing to rectify these records.
Page 11
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
## **12. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
Mosque extension fund
Yemen
Sound system
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Mosque extension fund
Yemen
Sound system
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.8.20
£
**647,945**
**-**
**-**
**-**
**-**
**647,945**
Incoming
resources
£
**253,503**
**59,352**
**25,505**
**6,696**
**91,553**
**345,056**
At 1.8.19
£
758,427
758,427|Net
movement
At
in funds
31.7.21
£
£
**(71,008)**
**576,937**
**59,352**
**59,352**
**25,505**
**25,505**
**6,696**
**6,696**
**91,553**
**91,553**
**20,545**
**668,490**
Resources
Movement
expended
in funds
£
£
**(324,511)**
**(71,008)**
**-**
**59,352**
**-**
**25,505**
**-**
**6,696**
**-**
**91,553**
**(324,511)**
**20,545**
Net
movement
At
in funds
31.7.20
£
£
(110,482)
647,945
(110,482)
647,945|
|---|---|---|
Page 12
## **Al-Hijrah Trust**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2021**
## **12. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
230,415
230,415|Resources
Movement
expended
in funds
£
£
(340,897)
(110,482)
(340,897)
(110,482)|
|---|---|---|
The Mosque extension fund is related to the project to expand the mosque to create an extra storey. Fundraising for this is ongoing.
The Yemen fund money was raised during Ramadhan 2021 to fund a bakery in Yemen. Al-Hijrah worked with Mercy Relief to purchase the equipment and raw materials to provide bread for thousands of needy people in Yemen.
An appeal was made for a new sound system during Ramadhan 2021 as the existing system was inadequate for the recitation of the Quran. The new system was installed a month later and has been used regularly for Friday prayers.
## **13. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 July 2021.
Page 13