## **REGISTERED COMPANY NUMBER: 08615705 (England and Wales) REGISTERED CHARITY NUMBER: 1156537** ## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31ST JULY 2020** ## **FOR** ## **LIA RELIEF TRUST** Watergates Ltd (Statutory Auditor) 109 Coleman Road Leicester Leicestershire LE5 4LE **LIA RELIEF TRUST** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2020** **----- Start of picture text -----**
Page
Trustees' Report 1 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Statement of Financial Position 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13 to 22
**----- End of picture text -----**
**LIA RELIEF TRUST** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st July 2020. 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** LIA Relief Trust is a global charity working to transform the lives of people not only from our local community in the UK, but also from the poorest communities around the world. As a charity informed by broad Islamic values, we believe that all people are treasures through whom we can inspire a new, brighter future for all of our communities and our wider world. The charities objectives are: • To relieve financial hardship, distress and suffering among poor people, victims of natural and man-made disasters and other people in need, by making grants or loans for providing or paying for items, equipment, services and facilities, including the establishment of food banks for the benefit of the said persons. • To advance education for the benefit of the poor, the underprivileged and the general public by the provision or the assistance in the provision of educational equipment and activities, and the provision of training and resources to school teachers to enhance their quality of teaching. • To relieve sickness and to preserve good health among the poor, underprivileged and people in need by the provision or assistance in the provision of health education and the assistance in the research of treatments of diseases for the benefit of the said persons. • To advance the religion of Islam, by means of, but not exclusively, promoting the teachings and tenets of Islam, assistance in the provision of facilities for worship and Islamic education, in accordance with the teachings of the Quran and Sunnah of the Prophet Muhammad PBUH as expounded by the Ahle Sunnah Wal Jamaah School of Thought. ## **Significant activities** The charity continues to receive high levels of support and donations from the general public as shown by the significant levels of donations received. The charity continues to carry out relief and development work in disaster and conflict hit areas of the world, resulting in greater provision of emergency aid to the poverty-stricken people of those areas. The resources expended this year were £1.48m, compared to £828k last year even with the impact of the global COVID-19 pandemic. The charity continues to focus on various projects and aid programmes working alongside many renowned charities over the past year supporting not just causes locally but on a global level as follows: • Involved in immediate relief work to provide food packs / medical aid / shelter / water / education in Rohingya, Syria, Yemen, burundi, Lebanon, Kashmir, Bangladesh and Assam. • Self- sustainment projects in the Assam, Syria and Bangladesh. • Provision of educational facilities across Rohingya camps we are working in. • Feeding programmes in Yemen. ## **Relief and Support** • Carrying out our annual Qurbani and providing food to those in need. - Provision of water and food packs for areas in Rohingya, Assam and Syria. -1- ## **LIA RELIEF TRUST** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020** - Provision of shelter and water facilities in Rohingya. - Encouraging self-sustainment by providing material and equipment for families to begin earning a living. - Building shelter for the displaced Syrians in a safe zone. - Burundi and Kashmir orphan sponsorship. - Water projects in Bangladesh. - Medical treatment of malnourished children in Yemen. - o Hifz Sponsorship of children in Syria. ## **Education** - Helping to facilitate educational provisions and space for local institutions. - Facilitation of education on a global level. ## **Local Projects** - Participation in the annual charity week which raised 10k for feeding hungry children (Rashford campaign). - Participation in the annual food drive aimed to help those locally. - LIA Relief Trust were at the heart of feeding people locally that were struggling/isolating during lockdown and co-ordinating distribution of food packs to other local organisations ## **Public benefit** The trustees have referred to the information contained in the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. ## **Volunteers** The trustees are very grateful to the employees and hundreds of volunteers who helped the charity in carrying out fundraising on their behalf. The employees and volunteers aided the charity through creating projects, fundraising, supporting local projects, marketing, administration and helping in charity led initiatives and events to make them a success. ## **STRATEGIC REPORT** ## **Achievement and performance** The LIA Relief Trust is an active charity who has worked alongside many renowned charities over the past year supporting not just causes locally, but on a global level. ## **Global level** - Assam - Syria - Rohingya - Yemen - Gaza - Burundi - Lebanon - Bangladesh - Kashmir ## **Local level** - Marcus Rashford initiative (feeding locally - charity week) - Supporting Help the Homeless Leicester -2- **LIA RELIEF TRUST** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020** ## **STRATEGIC REPORT** ## **Financial review** During the year, total incoming resources amounted to £1,311,691 (2019: £1,126,228) with direct donations from the general public to carry out programmes mentioned above contributing £1,169,885 (2019: £985,452). A total of £1,479,429 (2019: £828,657) was used towards aid programmes and general operating costs of the charity. The charity continues to work closely with a number of partner organisations in providing aid to the needy and, most of the above expenditure was spent with these partner organisations. As shown on page 9, £1,321,400 (2019: £617,665) from the restricted funds was expensed for specific projects. A small amount was raised with no restrictions and has been used in the administration of the charity. The income tax recoverable from Gift Aid, continue to provide the charity with sufficient funds to carry out its charitable objectives. ## **Reserves policy** We aim to utilise the funds as it receives within a year of receiving them. Reserves are held for long term projects and for responding to emergencies and disasters. At 31 July 2020 a large proportion of the reserves were earmarked for ongoing long term projects and it should be noted that the projects now being delivered by the charity are longer term, such as the orphan and widows projects, constructions, water facilitation etc. which require reserves to be held over a longer period. The unrestricted funds the charity holds is to ensure that it has sufficient reserves to cover the costs of managing and administering the charity for the following year. At the end of each financial year the trustees critically appraise this level and transfer any excess to where it is most needed in terms of aid. ## **Post Balance Sheet Events** The implications and consequences of the current Covid-19 pandemic cannot be fully quantified at this stage, but could have the potential to be extremely far-reaching both financially and operationally. This is the case even where restrictions are lifted according to the government’s best estimates. It is difficult to accurately predict how long the current pandemic will last and what impact this will have on LIA Relief Trust's future income. However as at the point of authorising the accounts, we have reviewed financial performance based on management figures, which we feel adequately reflect the current uncertain environment. We are satisfied that there will be sufficient cash resources generated from trust's activities to enable the trust to continue without the requirement of any external finance. ## **Going Concern** In view of the financial performance and the reserves position as at the balance sheet date, the Board of Trustees has a reasonable expectation that LIA Relief Trust will have the resources to continue in operational existence for the foreseeable future. The Trustees believe there are no material uncertainties that call into doubt our ability to continue as a going concern. The annual financial statements have therefore been prepared on the basis that the charity is a going concern. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** LIA Relief Trust is a registered charity and a registered company (Limited by guarantee) that is governed by its memorandum and articles of association as defined by the Companies Act 2006. -3- ## **LIA RELIEF TRUST** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Organisational structure** The board of Trustees of the charity are responsible for the charity's strategic direction. The board of Trustees meet on a termly basis to discuss the activities of the charity. The board of trustees is supported through the aid of volunteers who manage the daily running of the charity. ## **Related parties** The Charity has the following linked charities by virtue of common trustees: Leicester Islamic Academy (Charity No. 702652) The Leicester Islamic Academy Trust (Charity No. 1143373 / Company No. 7595563) ## **REFERENCE AND ADMINISTRATIVE DETAILS** **Registered Company number** 08615705 (England and Wales) ## **Registered Charity number** 1156537 ## **Registered office** 320 London Road Leicester LE2 2PJ ## **Trustees** Mr I A Desai Director Mr A Mahomed Director Dr M A Makadam Director Dr M H Mukadam Director Mr A Patas Director Mr A H I Patel Director Mr H I Suleman Director Mr M Suleman Director ## **Auditors** Nazir Malida FCCA Watergates Ltd (Statutory Auditor) 109 Coleman Road Leicester Leicestershire LE5 4LE -4- **LIA RELIEF TRUST** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees (who are also the directors of Lia Relief Trust for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## **AUDITORS** The auditors, Watergates Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting. Trustees' report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 28th May 2021 and signed on the board's behalf by: Dr M A Makadam - Trustee -5- ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LIA RELIEF TRUST** ## **Opinion** We have audited the financial statements of Lia Relief Trust (the 'charitable company') for the year ended 31st July 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31st July 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 charitable company 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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. -6- ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LIA RELIEF TRUST** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** 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. 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. -7- ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LIA RELIEF TRUST** ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Nazir Malida FCCA (Senior Statutory Auditor) for and on behalf of Watergates Ltd (Statutory Auditor) 109 Coleman Road Leicester Leicestershire LE5 4LE 28th May 2021 -8- ## **LIA RELIEF TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2020** |**Notes**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**EXPENDITURE ON**
Raising funds
3
**Charitable activities**
4
Donations
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
14
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**fund**
**£**
**178,521**
**39,858**
**118,171**
**158,029**
**20,492**
**(5,923)**
**14,569**
**225,611**
**240,180**|**Restricted**
**fund**
**£**
**1,133,170**
**-**
**1,321,400**
**1,321,400**
**(188,230)**
**5,923**
**(182,307)**
**685,992**
**503,685**|**31/7/20**
**Total**
**funds**
**£**
**1,311,691**
**39,858**
**1,439,571**
**1,479,429**
**(167,738)**
**-**
**(167,738)**
**911,603**
**743,865**|**31/7/19**
**Total**
**funds**
**£**
1,126,228
62,708
765,949
828,657
297,571
-
297,571
614,032
911,603| |---|---|---|---|---| The notes on page 0 form part of these financial statements -9- ## **LIA RELIEF TRUST** ## **STATEMENT OF FINANCIAL POSITION 31ST JULY 2020** |**Unrestricted**
**Restricted**
**fund**
**fund**
**Notes**
**£**
**£**
**CURRENT ASSETS**
Debtors
12
**94,266**
**-**
Cash at bank
**159,125**
**503,685**
**253,391**
**503,685**
**CREDITORS**
Amounts falling due within one year
13
**(13,211)**
**-**
**NET CURRENT ASSETS**
**240,180**
**503,685**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**240,180**
**503,685**
**NET ASSETS**
**240,180**
**503,685**
**FUNDS**
14
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|**31/7/20**
**Total**
**funds**
**£**
**94,266**
**662,810**
**757,076**
**(13,211)**
**743,865**
**743,865**
**743,865**
**240,180**
**503,685**
**743,865**|**31/7/19**
**Total**
**funds**
**£**
4,325
916,119
920,444
(8,841)
911,603
911,603
911,603
225,611
685,992
911,603| |---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 28th May 2021 and were signed on its behalf by: Mr H I Suleman - Trustee The notes on page 0 form part of these financial statements -10- ## **LIA RELIEF TRUST** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2020** |**Notes**
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating 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**|**31/7/20**
**£**
**(253,309)**
**(253,309)**
**(253,309)**
**916,119**
**662,810**|**31/7/19**
**£**
345,823
345,823
345,823
570,296
916,119| |---|---|---| The notes on page 0 form part of these financial statements -11- ## **LIA RELIEF TRUST** ## **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2020** |**1.**
**RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW**
**Net (expenditure)/income for the reporting period (as per the Statement**
**of Financial Activities)**
**Adjustments for:**
(Increase)/decrease in debtors
Increase in creditors|**FROM OPERATING ACTIVITIES**
**31/7/20**
**31/7/19**
**£**
**£**
**(167,738)**
297,571
**(89,941)**
43,638
**4,370**
4,614| |---|---| |**Net cash (used in)/provided by operations**|**(253,309)**
345,823| |2.
**ANALYSIS OF CHANGES IN NET FUNDS**
**At 1.8.19**
**£**
**Net cash**
Cash at bank
**916,119**|**Cash flow**
**At 31.7.20**
**£**
**£**
**(253,309)**
**662,810**| |**916,119**|**(253,309)**
**662,810**| |**Total**
**916,119**|**(253,309)**
**662,810**| The notes on page 0 form part of these financial statements -12- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2020** ## **1. ACCOUNTING POLICIES** ## **BASIS OF PREPARING THE FINANCIAL STATEMENTS** The financial statements of the charitable company, 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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The Charity meets the definition of a public entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The functional currency of the charity is considered to be pounds sterling because that is the currency of the primary economic environment in which the Charity operates. The financial statements are also presented in pounds sterling, The amounts in the financial statements are presented to the nearest £1, unless otherwise stated. The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charity's accounting policies. There are no significant areas requiring material judgements, estimates or assumptions. ## **Going Concern** The Trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Financial Review. ## **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. **Donations and legacies:** This comprises all incoming resources from donations collected directly or by volunteers and income from fundraising events during the year. Gift Aid tax recoverable under the Gift Aid Scheme is recognised where there is an entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Where a claim for repayment of income tax has been or will be made, such income is included in the debtors’ amount if still not received by the year end. **Investment income:** This comprises income generated by cash on deposits held by the charity. Profit on funds held on deposit is included in the SOFA when receivable and the amount can be measured reliably; this is normally upon notification of the profit paid or payable by the bank. The value of services provided by volunteers is difficult to put a monetary value on and therefore has not been included in accordance with the Charities SORP (FRS102). -13- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **1. ACCOUNTING POLICIES - continued** ## **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. All expenditure is accounted for on an accruals basis. Expenditure is classified under the following activity headings: **Charitable activities:** Costs associated with the provision of emergency relief, development and longer term rehabilitation programmes as elaborated on in the Trustees’ Report. These include both direct charitable expenditure, grants payable and support costs relating to these activities. Grants payable to other organisations for relief projects are included in the SOFA when approved by the trustees and agreed with the other organisation. **Support costs:** Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs for a single activity are allocated to the particular activity where the cost relates directly to that activity. However, Support costs that represent the support functions of management, finance, human resources, IT and support departments attributable to the management of the Charity's assets, are allocated in proportion to the type of charitable activity during the period. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 6. **Governance costs:** These are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic manaqement of the charity's activities. Governance support costs are allocated on the basis of support activities provided on clearly interpreted governance matters. 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. Irrecoverable VAT is charged against the expenditure heading for which it was incurred. ## **TAXATION** The charity is exempt from corporation tax on its charitable activities. ## **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. -14- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **1. ACCOUNTING POLICIES - continued** ## **PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **DEBTORS** Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid, net of any trade discounts due. ## **Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **2. DONATIONS AND LEGACIES** |Donations
Gift aid|**31/7/20**
**£**
**1,169,885**
**141,806**
**1,311,691**|**31/7/19**
**£**
985,452
140,776
1,126,228| |---|---|---| The charity benefits greatly from the involvement and enthusiastic support of its many volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts. -15- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **3. RAISING FUNDS** |**RAISING DONATIONS AND LEGACIES**
Advertising and PR
Fundraising events and related costs
**4.**
**CHARITABLE ACTIVITIES COSTS**
Donations
**5.**
**DIRECT COSTS OF CHARITABLE ACTIVITIES**
Staff costs
Rent
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Office administration costs
Bank charges
Website, IT and related costs
Hospitality
Repairs and maintenance
Subscriptions|**Direct**
**Costs (see**
**note 5)**
**£**
**87,010**|**Grant**
**funding of**
**activities**
**(see note**
**6)**
**£**
**1,321,400**|**31/7/20**
**£**
**355**
**39,503**
**39,858**
**Support**
**costs (see**
**note 7)**
**£**
**31,161**
**31/7/20**
**£**
**60,166**
**3,630**
**299**
**1,585**
**70**
**132**
**-**
**529**
**13,949**
**6,338**
**150**
**162**
**-**
**87,010**|**31/7/19**
**£**
13,174
49,534
62,708
**Totals**
**£**
**1,439,571**
**31/7/19**
**£**
44,098
4,290
-
1,516
-
1,569
44
1,699
7,530
4,855
2,454
1,524
636
70,215| |---|---|---|---|---| -16- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** **----- Start of picture text -----**
6. GRANTS PAYABLE
31/7/20 31/7/19
£ £
Donations 1,321,400 677,532
The total grants paid to institutions during the year was as follows:
31/7/20 31/7/19
£ £
Various relief and support programmes 1,321,400 677,532
7. SUPPORT COSTS
Governance
Other costs Totals
£ £ £
Donations 7,619 23,542 31,161
Support costs, included in the above, are as follows:
31/7/20 31/7/19
Total
Donations activities
£ £
Travel and subsidence 7,619 9,462
Auditors' remuneration 3,600 3,600
Auditors' remuneration for non audit work 3,120 1,140
Legal and professional fees 120 -
Consultancy fees 16,702 4,000
31,161 18,202
**----- End of picture text -----**
-17- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **8. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): **----- Start of picture text -----**
|||| |---|---|---| |31/7/20|31/7/19| |£|£| |Auditors' remuneration|3,600|3,600| |Auditors' remuneration for non audit work|3,120|1,140| |Other operating leases|3,630|4,290| **----- End of picture text -----**
## **9. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31st July 2020 nor for the year ended 31st July 2019. ## **TRUSTEES' EXPENSES** There were no trustees' expenses paid for the year ended 31st July 2020 nor for the year ended 31st July 2019. ## **10. STAFF COSTS** **----- Start of picture text -----**
|||| |---|---|---| |31/7/20|31/7/19| |£|£| |Wages and salaries|59,978|43,648| |Other pension costs|188|450| |60,166|44,098| |The average monthly number of employees during the year was as follows:| |31/7/20|31/7/19| |Administrative staff|4|4| **----- End of picture text -----**
No employees received emoluments in excess of £60,000. -18- ## **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** **----- Start of picture text -----**
11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 277,510 848,718 1,126,228
EXPENDITURE ON
-
Raising funds 62,708 62,708
Charitable activities
Donations 148,284 617,665 765,949
Total 210,992 617,665 828,657
NET INCOME 66,518 231,053 297,571
Transfers between funds (4,022) 4,022 -
Net movement in funds 62,496 235,075 297,571
RECONCILIATION OF FUNDS
Total funds brought forward 163,115 450,917 614,032
TOTAL FUNDS CARRIED FORWARD 225,611 685,992 911,603
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/20 31/7/19
£ £
Other debtors 89 404
Prepayments and accrued income 94,177 3,921
94,266 4,325
**----- End of picture text -----**
-19- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade creditors
Social security and other taxes
Pension control account
Accruals and deferred income
**14.**
**MOVEMENT IN FUNDS**
**At 1.8.19**
**£**
**Unrestricted funds**
General fund
**225,611**
**Restricted funds**
Restricted fund
**685,992**
**TOTAL FUNDS**
**911,603**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|**Net**
**movement**
**in funds**
**£**
**20,492**
**(188,230)**
**(167,738)**
**Incoming**
**resources**
**£**
**178,521**
**1,133,170**
**1,311,691**|**31/7/20**
**£**
**695**
**886**
**470**
**11,160**
**13,211**
**Transfers**
**between**
**funds**
**£**
**(5,923)**
**5,923**
**-**
**Resources**
**expended**
**£**
**(158,029)**
**(1,321,400)**
**(1,479,429)**|**31/7/19**
**£**
3,466
852
143
4,380
8,841
**At**
**31.7.20**
**£**
**240,180**
**503,685**
**743,865**
**Movement**
**in funds**
**£**
**20,492**
**(188,230)**
**(167,738)**| |---|---|---|---| -20- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **14. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Net**
**movement**
**At 1.8.18**
**in funds**
**£**
**£**
**Unrestricted funds**
General fund
163,115
66,518
**Restricted funds**
Restricted fund
450,917
231,053
**TOTAL FUNDS**
614,032
297,571
Comparative net movement in funds, included in the above are as follows:
**Incoming**
**resources**
**£**
**Unrestricted funds**
General fund
277,510
**Restricted funds**
Restricted fund
848,718
**TOTAL FUNDS**
1,126,228
A current year 12 months and prior year 12 months combined position is as follows:
**Net**
**movement**
**At 1.8.18**
**in funds**
**£**
**£**
**Unrestricted funds**
General fund
163,115
87,010
**Restricted funds**
Restricted fund
450,917
42,823
**TOTAL FUNDS**
614,032
129,833||**Transfers**
**between**
**funds**
**£**
(4,022)
4,022
-
**Resources**
**expended**
**£**
(210,992)
(617,665)
(828,657)
**Transfers**
**between**
**funds**
**£**
(9,945)
9,945
-|**At**
**31.7.19**
**£**
225,611
685,992
911,603
**Movement**
**in funds**
**£**
66,518
231,053
297,571
**At**
**31.7.20**
**£**
240,180
503,685
743,865| |---|---|---|---| -21- **LIA RELIEF TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020** ## **14. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Restricted fund
**TOTAL FUNDS**|**Incoming**
**resources**
**£**
456,031
1,981,888
2,437,919|**Resources**
**expended**
**£**
(369,021)
(1,939,065)
(2,308,086)|**Movement**
**in funds**
**£**
87,010
42,823
129,833| |---|---|---|---| ## **15. RELATED PARTY DISCLOSURES** The Charity has the following linked charities by virtue of common trustees: Leicester Islamic Academy (Charity No. 702652) The Leicester Islamic Academy Trust (Charity No. 1143373 / Company No. 7595563) -22-