Charity registration number 1155170
Company registration number CE001569 (England and Wales)
MADRASSA FAIZ-E-RAZA
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
MADRASSA FAIZ-E-RAZA
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr AM Soneji Mr IN Patel Mr M G Mohamed Mr S Bajibhai Charity number 1155170 Company number CE001569 Registered office 15 Bradbourne Road Leicester LES SAL Independent examiner Figure Fact 1 St Floor 182-184 Edgware Road London W22DS
MADRASSA FAIZ-E-RAZA
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 11 |
MADRASSA FAIZ-E-RAZA
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JULY 2022
The trustees present their annual report and financial statements for the year ended 31 July 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Madrassa's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The Charity's objects are to engages in advancing the Islamic religion in particular holding madrassa classes for children. Make available to the community premises for daily prayers and congregation.
The policies adopted in furtherance of these objects are through public education, mass communication , seminars, conference, media publicity and to celebrate national festivals. To advance education for the benefit of public and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Madrassa should undertake.
Achievements and performance
The Madrassa and the Mosque are fully functional this year. More children have joined the Madrassa who are benefitting from the education.
The Mosque is being used by the people for the daily prayers.
Financial review
The trustees are confident that the charity will continue to secure sufficient funding in future years to carry out its objectives.
It is the policy of the Madrassa that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Madrassa's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees has assessed the major risks to which the Madrassa is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The Madrassa was established by a charitable trust deed on 3 January 2014.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr AM Soneji
Mr IN Patel
Mr M G Mohamed
Mr S Bajibhai
The power of appointment of new or additional trustees is vested in the trustees. The governing document provides for a minimum of 3 trustees, but does not provide for a maximum number. The power to appoint new directors is vested in the board of trustees.
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MADRASSA FAIZ-E-RAZA
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
Mr M G Mohamed Trustee
Date: ...26/09/2023........................................ ..
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MADRASSA FAIZ-E-RAZA
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF MADRASSA FAIZ-E-RAZA
I report to the trustees on my examination of the financial statements of Madrassa Faiz-E-Raza (the Madrassa) for the year ended 31 July 2022.
Responsibilities and basis of report
As the trustees of the Madrassa (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2000 (the 2006 Act).
Having satisfied myself that the financial statements of the Madrassa are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Madrassa's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Madrassa as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Figure Fact
1 St Floor 182-184 Edgware Road London W2 2DS
Dated: .27/09/2023....................... .
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MADRASSA FAIZ-E-RAZA
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations | 2 | 35,642 | 38,163 |
| Other income | 3 | 7,206 | 2,500 |
| Total income | 42,848 | 40,663 | |
| Expenditure on: | |||
| Mosque and Madrassa running costs | |||
| 45,161 | 17,726 | ||
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (2,313) | 22,937 |
|
| Fund balances at 1 August 2021 | 204,437 | 181,500 | |
| Fund balances at 31 July 2022 | 202,124 | 204,437 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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MADRASSA FAIZ-E-RAZA
BALANCE SHEET
AS AT 31 JULY 2022
| Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand Creditors: amounts falling due within Notes 9 10 one year 11 Net current liabilities Total assets less current liabilities Income funds Unrestricted funds - general 2022 £ 9,706 6,063 15,769 (84,389) |
2021 £ £ £ 270,744 271,840 2,500 14,836 17,336 (84,739) (68,620) (67,403) 202,124 204,437 202,124 204,437 202,124 204,437 |
|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 4 76.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
ancial statements were approved by the Trustees on ...26/09/2023..................... .
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Mr M G Mohamed
Trustee
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Company registration number CE001569
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
1 Accounting policies
Charity information
Madrassa Faiz-E-Raza is a private company limited by guarantee incorporated in England and Wales. The registered office is 15 Bradbourne Road, Leicester, LES SAL.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Madrassa's [governing document], the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the Charities SORP "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). The Madrassa is a Public Benefit Entity as defined by FRS 102.
The Madrassa has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Madrassa. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the Madrassa has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the Madrassa is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Madrassa has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Not depreciated Fixtures, fittings & equipment 15% on reducing balance
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The Madrassa has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Madrassa's balance sheet when the Madrassa becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Madrassa's contractual obligations expire or are discharged or cancelled.
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
Accounting policies
(Continued)
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the Madrassa is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11 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.
2 Donations
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds |
|
| general | general |
|
| 2022 | 2021 |
|
| £ | £ |
|
| Donations and gifs | 35,642 | 38,163 |
| Donations and gifts | ||
| Donations | 27,971 | 30,325 |
| Friday collections | 4,253 | 257 |
| Madrassa fees | 1,510 | 7,581 |
| Zakat | 1,908 | |
| 35,642 | 38,163 |
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
| 3 | Other income |
|---|---|
| Gift aid receipts |
| Unrestricted | Unrestricted |
|---|---|
| funds | funds |
| general | general |
| 2022 | 2021 |
| £ | £ |
| 7,206 | 2,500 |
4 Mosque and Madrassa running costs
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Staf costs | 18,369 | 8,568 |
| Depreciation and impairment | 1,096 | 1,289 |
| Rates and Madrassa expenses | 4,148 | 817 |
| Light and heat | 1,773 | 1,270 |
| Repairs and maintenance | 16,102 | 2,262 |
| Print post and stationery | 690 | 811 |
| Sundry | ||
| Telephone | 492 | 166 |
| Insurance | 1,091 | 2,316 |
| Advertising | 227 | |
| Grant funding of activities (see note 5) | 1,400 | |
| 45,161 | 17,726 | |
| -- | -- | |
| Grants payable | ||
| 2021 | ||
| 2022 | ||
| £ | £ | |
| Grants to institutions: | ||
| Other | 1,400 |
5 Grants payable
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Madrassa during the year.
7 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| Madrassa teachers | ||
| Mosque Imam | 1 | |
| Volunteers | 9 | 10 |
| Total | 11 | 12 |
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 18,350 | 7,985 |
| Social security costs | 446 | |
| Other pension costs | 19 | 137 |
| 18,369 | 8,568 | |
| -- | -- |
There were no employees whose annual remuneration was more than £60,000.
8 Taxation
The charity is exempt from tax on its charitable activities.
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MADRASSA FAIZ-E-RAZA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022
| 9 Tangible fixed assets Cost At 1 August 2021 At 31 July 2022 Depreciation and impairment At 1 August 2021 Depreciation charged in the year At 31 July 2022 Carrying amount At 31 July 2022 At 31 July 2021 10 Debtors Amounts falling due within one year: Other debtors 11 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors |
Land and Fixtures, buildings fittings & equipment £ £ 264,533 16,675 264,533 16,675 9,368 1,096 10,464 264,533 6,211 264,533 7,307 2022 £ 9,706 2022 £ 625 83,764 84,389 |
Total £ 281,208 |
|---|---|---|
| 281,208 | ||
| 9,368 1,096 |
||
| 10,464 | ||
| 270,744 | ||
| 271,840 2021 £ 2,500 |
||
| 2021 £ 537 6 84,196 |
||
| 84,739 |
12 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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