REGISTERED CHARITY NUMBER.. 1154046 Report of the Trustees and Unaudited Financial Statements forthe Year Ended 31 July 2023 for Al-HlJrah Trust Locke Williams Associates LLP Chartered Accountsnts clo Blackthorn House Sl Pauls Square Birmingham Wesl Midlands B31RL
Al-Hijrah Trust Contents of the Financial Statements for the Year Ended 31 July 2023 Page Report of the Trustees Independent Examiner's Report Statement of Flnanclal Actlvltles Balance Sheet Cash Flow Statement Notes to the Cash Flow Statement Notes to the Financial Statements 9 to 16
Al-Hijrah Trust Report of the Trustees for the Year Ended 31 July 2023 The Iruslees present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims The charity's constitution defines the charity's objects as being to". To advance the Islamic ligIOn anywhere in the wodd for the benefit of the public through the holding of prayer meetings, lectures, producing andlor distributing literature on the Is18mic faith to enlighten others about the Islamic faith. The prevention or the relief of povety anywhere in the world by providing grants, items and services lo the individuals in need andlor charities, or other organisations working to prevent or relieve povety. For the public benefit lo promote education at every level, anywhere in the world, in such ways as the charity trustees think appropriate. Public benefit In selling these objectives and aims, the Iruslees have given due regard to the guidance published by the Charity Commission on Public Benefit. ACHIEVEMENT AND PERFORMANCE Charitable activities The charity has continued to provide services and carry out activities for the local community. All properties belonging lo the Trust have now been legally transferred and all charges have been removed, Costs of the case were also repaid. Mosque The Mosque continued lo be well attended through the year for both daily prayers and Friday congregational prayers. We had a very successful Ramadhan with many people allending the mosque for evening and night- lime prayers and there was a good response to fundraising appeals for the mosque extension. Building work lo add another storey lo the mosque coMMend in January 2023 with removal of the existing roofs and sealing of the temporary flat roof. A regLJlar programme of religious and educational tslks has been carried out as well as educational and social activities for local women and children. Madrasah The Madrasah remained popular throughout the year with approximately 300 Childn. 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. Scouts Al-Hijrah registered with the Scouts Association as the 331 Birmingham Scouts and started our Scouts program in June 2022. The Scouts programme has gradually expanded and we have started making preparations to start both older and younger age groups (Beavers, Scouts and Explorers) so we will eventually accommodate children from 6 years old to 18 years old. Page 1
Al-Hijrah Trust Report of the Trustees for the Year Ended 31 July 2023 ACHIEVEMENT AND PERFORMANCE Fundraising activities Tuition Project The tuition project continued during 202212023. Itwas self-financing although attendance remained low mainly due to the weekly fee of £30.11 teaches English, Maths and Science at Key Stages 3 and 4 and also preparation for 11 Plus exams. Food Bank We started a food bank in June 2023 running from the Hob Moor sile. We have recruited a good bank of volunteers to run il initially and have applied for gmnls from various charities lo support the provision of food and essential items for those who are struggling with the cost-of-living crisis. FINANCIAL REVIEW Financial position During the year, the charity raised £353,500 in donations and grants, of which £192,914 were raised for specific purposes, a further £159,428 from Madrasah fees and £164,022 in rental income. A further £34,065 was received as refunded court costs in the year. Total income for the year was £733,21212022 £566,744). The charity spent a total of £405,172 on its charitsble aclivilies12022 £378,464). Reserves policy Totsl unrestricted funds al 31 July 2023 were £829,115 12022 £580,965). Of these, £233,387 were 'free resetves,. Free reserves are reserves which do not include restricted funds or funds lied up in the fixed assets. Total reslricled reserves at 31 July 2023, being reserves of income given for specified purposes, were £355,695. Further details of these reserves are given in the notes to the financial stalemenls. FUTURE PLANS We are continuing the fundraising for the Mosque extension and aim to start work on the steelwork for the new slorey in the Summer l Autumn of 2023 with a new roof to follow. Once completed this will provide Spa for expansion of prayer areas as well as activities l events for the community. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is governed by ils governing document, registered on 2 October 2013 and amended on 11 December 2020. Charity constitution The Charity is consliluted as a Charitable Incorporated Organisalion ICIOI, as a body corFX)rate under Part 11 of the Charities Act 2011 on the 02 Ocl 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 a implemented. Rlsk management The trustees have considered the major risks to which the charity is exposed and have reviewed potential risks. Systems and procedures have been pul in place to manage the risks and to Mitigate any adverse outcomes. REFERENCE ANO ADMINISTRATIVE DETAILS Registered Charity number 1154046 Page 2
Al-Hijrah Trust Report of the Trustees for the Year Ended 31 July 2023 Principal address Al-Hijrah Trust 71 Hob Moor Road Birmingham West Midlands B10 9AZ Trustees Dr M H8nif N Mahmood N T8hir Independent Examiner Locke Williams Associates LLP Chartered Accounlanls clo Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL Approved by order of the board of trustees on and signed on ils behalf by.. Dr M Hanif- Trustee Page 3
Independent Examiner's Report to the Trustees of Al-Hijrah Trust Independent examinerfs report to the trustees of Al-Hijrah Trust I report to the charity Iruslees on my examination of the accounts of Al-Hijrah Trust (the Trust) for the year ended 31 July 2023. 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 I'lhe Act'i. 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 14515llbl 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 l am qualified lo undertake the examination because l am a member of the Institute of Chartered Accounlanls 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.. accounting records were not kept in respect of the Trust as required by Section 130 of the Act., or the accounts do not accord with those records., or 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 Locke Williams Associates LLP Chartered Accounlanls do Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL Date". Page 4
Al-Hijrah Trust ststement of Financial Activities for the Year Ended 31 July 2023 31.7.23 Total funds 31.7.22 Total funds Unrestricted fund Reslricled funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 160,586 192,914 353,500 333,674 Charitable activities Charitable activities 181,508 181,508 130,690 Investment income Other income 164,139 164,139 102,380 Totsl 540.298 192.914 733,212 566,744 EXPENDITURE ON Charitable activities Charitable activities 292.148 113.024 405,172 378,464 NET INCOME 248.150 79.890 328.040 188,280 RECONCILIATION OF FUNDS Total funds brought forward 580.965 275.805 856.770 668,490 TOTAL FUNDS CARRIED FORWARD 829 115 355 695 1184810 856,770 The notes form part of these financial statements Page 5
Al-Hijrah Trust Balance Sheet 31 July 2023 31.7.23 Total funds 31.7.22 Total funds Unrestricted fund Reslricled funds Notes FIXED ASSETS Tangible assets 10 591,106 4,720 595,826 623,985 CURRENT ASSETS Debtors Cash at bank and in hand 388 114 350 975 739 089 388 935 388,114 350,975 739,089 389,784 CREDITORS Amounts falling due within one year 12 115,105) 115.1051 19,9991 NET CURRENT ASSETS 373.009 350.975 723,984 379,785 TOTAL ASSETS LESS CURRENT LIABILITIES 964.115 355.695 1.319.810 1,003,770 CREDITORS Amounts falling due after more than one year 13 1135.000) 1135.000) 1147,0001 NET ASSETS 829 115 355 695 1.184.810 856,770 FUNDS Unrestricted funds Reslricled funds 14 829.115 355.695 580,965 275,805 TOTAL FUNDS 1184,810 856,770 The financial statements were approved by the Board of Trustees and authorised for issue on and were signed on its behalf by.. M Hanif- Trustee The notes form part of these financial statements Page 6
Al-Hijrah Trust Cash Flow Statement for the Year Ended 31 July 2023 31.7.23 31.7.22 Notes Cash flows from operating activities Cash generated from operations 350,037 216,487 Net cash provided by operating activities 350.037 216,487 Cash flows from investing activities Interest received 117 55 Net cash provided by investing activities 55 Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 350,154 216,542 388,935 172,393 Cash and cash equivalents at the end of the reporting poriod 739,089 388,935 The notes form part of these financial statements Page 7
Al-Hijrah Trust Notes to the Cash Flow Ststement for the Year Ended 31 July 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.7.23 31.7.22 Net income for the reporting period {as per the Statement of Financial A¢tivitiesl Adjustments for: Depreciation charges Interest received Decreasellincreasel in debtors IDecreasellincrease in creditors 328,040 188,280 28,159 11171 849 28,159 1551 18491 952 Net cash provided by operations 350,037 216,487 ANALYSIS OF CHANGES IN NET FUNDS Al 1.8.22 Cash flow At 31.7.23 Net cash Cash al bank and in hand 388 935 739 089 388,935 350,154 739,089 Total 388.935 350,154 739,089 The notes form part of these financial statements Page 8
Al-Hijrah Trust Note$ to the Financial Statements for the Year Ended 31 July 2023 ACCOUNTING POLICIES Basis of preparing the financial statements The financial slalements of the charity. which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 'Accounling and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 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 lo 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 re1vable basis when reIpt is probable and the amount can be reliably measured. Expenditure Liabilities are recognised as expenditure as soon as there is a legal orconstruclive obligation commilling the charity to that expenditure, il 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 allribuled to particular headings they have been allocated lo activities on a basis consistent with the use of resources. Charitsble 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 lo such activities and those costs of an indirect nature necessary lo support them. Govgrnanco costs These include the costs allributsble to the charity's compliance with conslitulional and slalutory 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 Fixtures and fitb'ngs Straight line over 50 years Straight line over 5 years Individual fixed assets costing £500 or rn0 are initially recorded al cost, less any subsequent accumulated depreciation and subsequent aecumulated impairment losses. Debtors and creditors receivable I payable within one year Debtors and creditors with no staled interest rate and receivable or payable within one yearare recorded al transaction price. Any losses arising from impairment are recognised in expenditure. Cash and cash equlvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-lerm 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 9
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 ACCOUNTING POLICIES- continued Taxation The charity is an exempl charity within the meaning of schedule 3 of the Charities Act 2011 and is onsidered lo 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 aeeounting Unrestricted funds can be used in accordance with the ch8ri18ble objectives al the discretion of the trustees. Reslricled funds can only be used for particular $tricted purposes within the objects of the charity. Reslriclions 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. Penslon 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 concem 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 stalemenls. The budgeted income and expenditure is sufficient with the level of reserves for the charity lo be able to continue as a going COnM. DONATIONS AND LEGACIES 31.7.23 31.7.22 Donations Grants 320,280 33,220 322,344 11,330 353 500 333,674 Grants received, included in the above, are as follows.. 31.7.23 31.7.22 HMRC - coronavirus job retention scheme Islamic Relief Action for HLJmanity Birmingham City Council Birmingham Council of Faiths 11,330 16,365 13,225 2,880 750 33,220 11,330 Page10
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 INVESTMENT INCOME 31.7.23 31.7.22 Rents received Savings account gains 164,022 117 102,325 55 164,139 102,380 INCOME FROM CHARITABLE ACTIVITIES 31.7.23 31.7.22 Activity Charitable activities Charitablè activities Charitable activities Madrasah fees Projects income Scouts income 159,428 16,545 5,535 127,537 3,153 181,508 130,690 CHARITABLE ACTIVITIES COSTS Support costs (see note 61 Charitable activities 405,172 SUPPORT COSTS Direct costs Govemance costs Totals Charitable activities 388 486 405 172 The cost of the Independent Examination of the annual accounts was £1,200 {2022 £1,200). Support costs, included in the above, are as follows.. 31.7.23 Charitable activities 31.7.22 Total activities Wages Pensions Rates and water Insurance Light and heat Telephone and fax Printing, postage and stationery Sundries Repairs and maintenance Accountancy Projects expenditure Planning fees elc Equipment, books etc Donations 150,758 752 5,461 7,046 35,956 121,185 330 27,509 41,815 43,938 11 2,759 2,190 2,839 17,129 1,482 15,473 38,763 6,699 3,918 2,209 4,058 18,523 2,525 1,637 15,160 5,284 Carried forward 360.327 317.847 Page11
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 SUPPORT COSTS- continued 31.7.23 Charitable activities 31.7.22 Total activities Brought forward Depreciation of tangible and heritage assets Legal fees Other professional costs 360,327 317,847 28,159 16,686 28,159 31,031 405,172 378,464 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 July 2023 nor for the year ended 31 July 2022. Trustees. expenses There were no trustees, expenses paid for the year ended 31 July 2023 nor for the year ended 31 July 2022. STAFF COSTS 31.7.23 31.7.22 Wages and salaries Other pension costs 150,758 752 121,185 330 151510 121 515 The average monthly number of employees during the year was as follows.. 31.7.23 27 31.7.22 25 Employees No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unreslricled fund Restricted funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 100,414 233,260 333,674 Charitable adivities Charitable activities 130,690 130,690 Investment income 102,380 102,380 Totsl 333,484 233,260 566,744 EXPENDITURE ON Charitable activities Charitable activities 329,456 49,008 378,464 Page12
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unreslricled Restricted fund funds Total funds NET INCOME 4,028 184,252 188,280 RECONCILIATION OF FUNDS Totsl funds brought forward 576,937 91,553 668,490 TOTAL FUNDS CARRIED FORWARD 580,965 275,805 856,770 10. TANGIBLE FIXED ASSETS Fixtures and fittings Freehold propety Totals COST At 1 August 2022 and 31 July 2023 700,000 70,796 770,796 DEPRECIATION Al 1 August 2022 Charge for year 98,000 14,000 48,811 14,159 146,811 28,159 Al 31 Juty 2023 112 000 174970 NET BOOK VALUE Al 31 July 2023 588 000 595 826 At 31 Juty 2022 602,000 21,985 623,985 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.7.23 31.7.22 Other debtors Page13
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.7.23 31.7.22 Other creditor5 15,105 9,999 13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.7.23 31.7.22 Other creditors 135 000 147,000 The accounts include Qarde Hasan of £135,000 12022'.£147,0001 as long-term liabilities. These represent historic interest free loans given lo the previous Al Hijrah Trust Icharity no.. 10188501 and now transferred to the new Al Hijrah CIO entity Icharity no.. 1150461. £12,000 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 IIEBI in 2014. Work is ongoing to rectify these records. 14. MOVEMENT IN FUNDS Net movement in funds At 31.7.23 At 1.8.22 Unrestricted funds General fund 580,965 248,150 829,115 Restricted funds Mosque extension fund Yemen Sound system Afghanistan Appeal IFCharily Appeal Pakistan Floods Appeal Turkey Earthquake Appeal 204,034 454 6,696 64,449 172 51,598 90 {1.180) 164,276) 2,159 101 255.632 5.516 173 2,331 101 275.805 79.890 355.695 TOTAL FUNDS 856,770 328.040 1.184.810 Page 14
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 14. MOVEMENT IN FUNDS- continued Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund $40,298 1292,148) 248,150 Restricted funds Mosque extension fund Yemen Sound system Afghanistan Appeal IFCharily Appeal Pakistan Floods Appeal Turkey Earthquake Appeal 91,011 90 139,4131 51,598 90 {1,1801 {64,2761 2,159 {1,180) 165,449) 1,173 2,159 4,693 {4.592) 192,914 113,024 79,890 TOTAL FUNDS 733,212 405,172} 328,040 Comparatives for movement in funds Net movement in funds At 31.7.22 At 1.8.21 Unrestrieted funds General fund 576,937 4.028 580.965 Restrlcted funds Mosque extension fund Yemen Sound system Afghanistan Appeal IFCharily Appeal 59,352 25,505 6,696 144,682 125,0511 204,034 454 6,696 64,449 172 64,449 172 91,553 184,252 275,805 TOTAL FUNDS 668,490 188,280 856,770 Page15
Al-Hijrah Trust Notes to the Financial Ststements - continued for the Year Ended 31 July 2023 14. MOVEMENT IN FUNDS- continued Comparative net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 333,484 1329,4561 4,028 Restricted funds Mosque extension fund Yemen Afghanistan Appeal IFCharily Appeal 163,934 206 64,449 4,671 119,2521 125,2571 144,682 125,0511 64,449 172 4,4991 233,260 49,008 184,252 TOTAL FUNDS 566,744 378,4641 188,280 The Mosque extension fLJnd is related to the project to expand the mosque to create an extra slorey. Fundraising for this is ongoing and work commenced in January 2023.. The Afghanistan fund money was raised during Ramadhan 2022. Al-Hijr2h worked with Islamic Relief to provide food packs during the famine in Afghanistan where 6.6 million people faced severe levels of hunger. 15. RELATED PARTY DISCLOSURES There were no re18ted paty tfftnsaclions for the year ended 31 Juty 2023. Page16