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2024-07-31-accounts

REGISTERED CHARITY NUMBER: 1154046

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 July 2024

for

Al-Hijrah Trust

Locke Williams Associates LLP Chartered Accountants Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS

Al-Hijrah Trust

Contents of the Financial Statements for the Year Ended 31 July 2024

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Cash Flow Statement 7
Notes to the Cash Flow Statement 8
Notes to the Financial Statements 9 to 16

Al-Hijrah Trust

Report of the Trustees for the Year Ended 31 July 2024

The trustees present their report with the financial statements of the charity for the year ended 31 July 2024. 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

The charity has continued to provide services and carry out activities for the local community.

Mosque

The Mosque continued to be well attended through the year for both daily prayers and Friday congregational prayers. We had a very successful Ramadhan with many people attending the mosque for evening and night-time prayers and there was a good response to fundraising appeals for the mosque extension.

Building work to add another storey to the mosque is ongoing.

A regular programme of religious and educational talks 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 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.

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 now cater for the full age range of children aged 4 to 18 years (Squirrels, Beavers, Scouts and Explorers).

Tuition Project

The tuition project was discontinued in December 2024 due to small numbers attending.

Food Bank

The Food Bank continued to expand its services to larger numbers. We have been successful in applying for larger amounts in grants from various charities to support the provision of food and essential items for those who are struggling with the cost-of-living crisis. recruited a good bank of volunteers to run it initially and have applied for grants

Page 1

Al-Hijrah Trust

Report of the Trustees for the Year Ended 31 July 2024

FINANCIAL REVIEW

Financial position

During the year, the charity raised £333,021 in donations and grants, of which £211,706 were raised for specific purposes, a further £126,451 from Madrasah fees and £285,105 in rental income. Total income for the year was £775,156 (2023 £733,212).

The charity spent a total of £405,898 on its charitable activities (2023 £405,172). It also spent £290,432 on capital additions to its charitable buildings.

Reserves policy

Total unrestricted funds at 31 July 2024 were £1,080,681 (2023 £829,115). Of these, £509,041 were 'free reserves'. Free reserves are reserves which do not include restricted funds or funds tied up in the fixed assets.

Total restricted reserves at 31 July 2024, being reserves of income given for specified purposes, were £473,387 (2023 £355,695). Further details of these reserves are given in the notes to the financial statements.

FUTURE PLANS

We hope to complete the majority of the mosque extension in the coming year.

We are hoping to continue expanding on our current activities especially for women and young people.

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

Al-Hijrah Trust 71 Hob Moor Road Birmingham West Midlands B10 9AZ

Trustees

Dr M Hanif N Mahmood N Tahir

Page 2

Al-Hijrah Trust

Report of the Trustees for the Year Ended 31 July 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Independent Examiner

Locke Williams Associates LLP Chartered Accountants Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS 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 2024.

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 member of the 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

  2. 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 Accountants Studio 2 50-54 St Pauls Square Birmingham West Midlands B3 1QS 15 May 2025 Date: .............................................

Page 4

Al-Hijrah Trust

Statement of Financial Activities for the Year Ended 31 July 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Charitable activities
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
5
Charitable activities
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
31.7.24
Unrestricted
Restricted
Total
fund
funds
funds
£
£
£
121,314
211,706
333,020
133,810
-
133,810
285,713
-
285,713
22,612
-
22,612
563,449
211,706
775,155
311,883
94,014
405,897
251,566
117,692
369,258
829,115
355,695
1,184,810
1,080,681
473,387
1,554,068
31.7.23
Total
funds
£
353,500
181,508
164,139
34,065
733,212
405,172
328,040
856,770
1,184,810

The notes form part of these financial statements

Page 5

Al-Hijrah Trust

Balance Sheet 31 July 2024

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Cash at bank
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
12
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
fund
£
571,640
640,183
(13,642)
626,541
1,198,181
(117,500)
1,080,681
Restricted
funds
£
293,972
179,415
-
179,415
473,387
-
473,387
31.7.24
Total
funds
£
865,612
819,598
(13,642)
805,956
1,671,568
(117,500)
1,554,068
1,080,681
473,387
1,554,068
31.7.23
Total
funds
£
595,826
739,089
(15,105)
723,984
1,319,810
(135,000)
1,184,810
829,115
355,695
1,184,810

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

==> picture [89 x 40] intentionally omitted <==

.............................................

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 2024

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period
31.7.24
£
370,333
370,333
(290,432)
608
(289,824)
80,509
739,089
819,598
31.7.23
£
350,037
350,037
-
117
117
350,154
388,935
739,089

The notes form part of these financial statements

Page 7

Al-Hijrah Trust

Notes to the Cash Flow Statement for the Year Ended 31 July 2024

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.7.24 31.7.23
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 369,258 328,040
Adjustments for:
Depreciation charges 20,646 28,159
Interest received (608) (117)
Decrease in debtors - 849
Decrease in creditors (18,963) (6,894)
Net cash provided by operations 370,333 350,037
2. ANALYSIS OF CHANGES IN NET FUNDS
Net cash At 1.8.23
£
Cash flow
£
At 31.7.24
£
Cash at bank and in hand 739,089 80,509 819,598
739,089 80,509 819,598
Total 739,089 80,509 819,598

The notes form part of these financial statements

Page 8

Al-Hijrah Trust

Notes to the Financial Statements for the Year Ended 31 July 2024

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.

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Assets under construction are not depreciated until they are brought into use.

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 9

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

1. ACCOUNTING POLICIES - continued

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:
Islamic Relief
Action for Humanity
Birmingham City Council
Birmingham Council of Faiths
31.7.24
£
297,140
35,880
333,020
31.7.24
£
30,880
-
5,000
-
35,880
31.7.23
£
320,280
33,220
353,500
31.7.23
£
16,365
13,225
2,880
750
33,220

Page 10

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

3. INVESTMENT INCOME

3. INVESTMENT INCOME
31.7.24 31.7.23
£ £
Rents received 285,105 164,022
Savings account gains 608 117
285,713 164,139
4. INCOME FROM CHARITABLE ACTIVITIES
Activity 31.7.24
£
31.7.23
£
Madrasah fees Charitable activities 126,451 159,428
Projects income Charitable activities 3,479 16,545
Scouts income Charitable activities 3,880 5,535
133,810 181,508
5. CHARITABLE ACTIVITIES COSTS
Charitable activities Support
costs (see
note 6)
£
405,897
6. SUPPORT COSTS
Charitable activities Direct
costs
£
405,897
The cost of the Independent Examination of the annual accounts was £1,320 (2023 £1,200).
Support costs, included in the above, are as follows:
Wages 31.7.24
Charitable
activities
£
155,058
31.7.23
Total
activities
£
150,758
Social security (181) -
Pensions 711 752
Rates and water 19,707 5,461
Insurance 7,450 7,046
Light and heat 50,285 35,956
Telephone and fax 3,091 2,759
Printing, postage and stationery 3,401 2,190
Sundries 456 2,839
Repairs and maintenance 18,112 17,129
Accountancy 2,864 1,482
Projects expenditure 20,300 15,473
Planning fees etc 2,869 38,763
Equipment, books etc 2,111 6,699
Carried forward 286,234 287,307

Page 11

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

6. SUPPORT COSTS - continued

Brought forward
Donations
Depreciation of tangible and heritage
assets
Legal fees
31.7.24
Charitable
activities
£
286,234
99,017
20,646
-
405,897
31.7.23
Total
activities
£
287,307
73,020
28,159
16,686
405,172

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2024 nor for the year ended 31 July 2023.

Trustees' expenses

Trustees expenses totalling £657 were reimbursed to one trustee in the year, who paid for various items of expenditure on the charity's behalf.

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
160,586
Charitable activities
Charitable activities
181,508
Investment income
164,139
Other income
34,065
Total
540,298
31.7.24
£
155,058
(181)
711
155,588
31.7.24
24
Restricted
funds
£
192,914
-
-
-
192,914
31.7.23
£
150,758
-
752
151,510
31.7.23
27
Total
funds
£
353,500
181,508
164,139
34,065
733,212

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

EXPENDITURE ON

Page 12

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
fund
funds
£
£
Charitable activities
Charitable activities
292,148
113,024
NET INCOME
248,150
79,890
RECONCILIATION OF FUNDS
Total funds brought forward
580,965
275,805
TOTAL FUNDS CARRIED FORWARD
829,115
355,695
10.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
property
fittings
£
£
COST
At 1 August 2023
700,000
70,796
Additions
290,432
-
At 31 July 2024
990,432
70,796
DEPRECIATION
At 1 August 2023
112,000
62,970
Charge for year
14,000
6,646
At 31 July 2024
126,000
69,616
NET BOOK VALUE
At 31 July 2024
864,432
1,180
At 31 July 2023
588,000
7,826
Total
funds
£
405,172
328,040
856,770
1,184,810
Totals
£
770,796
290,432
1,061,228
174,970
20,646
195,616
865,612
595,826

Page 13

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.24 31.7.23
£ £
Other creditors 13,642 15,105
12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Other creditors
31.7.24
£
117,500
31.7.23
£
135,000

The accounts include Qarde Hasan of £117,500 (2023:£135,000) 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). £17,500 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.

13. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Mosque extension fund
Yemen
Sound system
Afghanistan Appeal
IFCharity Appeal
Pakistan Floods Appeal
Turkey Earthquake Appeal
TOTAL FUNDS
At 1.8.23
£
829,115
255,632
544
5,516
173
2,331
101
91,398
355,695
1,184,810
Net
movement
in funds
£
251,566
124,616
-
(1,180)
(173)
84,485
(101)
(89,955)
117,692
369,258
At
31.7.24
£
1,080,681
380,248
544
4,336
-
86,816
-
1,443
473,387
1,554,068

Page 14

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

13. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Mosque extension fund
Sound system
Afghanistan Appeal
IFCharity Appeal
Pakistan Floods Appeal
Turkey Earthquake Appeal
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Mosque extension fund
Yemen
Sound system
Afghanistan Appeal
IFCharity Appeal
Pakistan Floods Appeal
Turkey Earthquake Appeal
TOTAL FUNDS
Incoming
resources
£
563,449
124,616
-
-
86,871
-
219
211,706
775,155
At 1.8.22
£
580,965
204,034
454
6,696
64,449
172
-
-
275,805
856,770
Resources
Movement
expended
in funds
£
£
(311,883)
251,566
-
124,616
(1,180)
(1,180)
(173)
(173)
(2,386)
84,485
(101)
(101)
(90,174)
(89,955)
(94,014)
117,692
(405,897)
369,258
Net
movement
At
in funds
31.7.23
£
£
248,150
829,115
51,598
255,632
90
544
(1,180)
5,516
(64,276)
173
2,159
2,331
101
101
91,398
91,398
79,890
355,695
328,040
1,184,810

Page 15

Al-Hijrah Trust

Notes to the Financial Statements - continued for the Year Ended 31 July 2024

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Mosque extension fund
Yemen
Sound system
Afghanistan Appeal
IFCharity Appeal
Pakistan Floods Appeal
Turkey Earthquake Appeal
TOTAL FUNDS
Incoming
resources
£
540,298
91,011
90
-
1,173
2,159
4,693
93,788
192,914
733,212
Resources
Movement
expended
in funds
£
£
(292,148)
248,150
(39,413)
51,598
-
90
(1,180)
(1,180)
(65,449)
(64,276)
-
2,159
(4,592)
101
(2,390)
91,398
(113,024)
79,890
(405,172)
328,040

The Mosque extension fund is related to the project to expand the mosque to create an extra storey. Fundraising for this is ongoing and work commenced in January 2023.Costs incurred in the physical construction phase are being capitalised.

The Afghanistan fund money was raised during Ramadhan 2022. Al-Hijrah worked with Islamic Relief to provide food packs during the famine in Afghanistan where 6.6 million people faced severe levels of hunger.

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2024.

Page 16