## 




## **Table of Contents** 

|**Table of**<br>**Contents**||
|---|---|
|**Chair and CEO's message**|**3**|
|**Constitutional Information**|**5**|
|**Who we are**|**6**|
|**The Kindness of Strangers**|**8**|
|**Our Activities and achievements**|**9**|
|**Risk Management**|**28**|
|**Future Plan**|**29**|
|**Financial Review**|**30**|
|**Compliance with Regulatory Requirements**|**31**|
|**Banking and regulatory Restrictions**|**32**|
|**Structure, Governance and Management**|**33**|
|**In preparing the financial statements**|**35**|
|**Pension**|**37**|
|**Financial Report**|**38**|



**2** 




**Chair & CEO's message** Asalamu'alaikum Warahmatullah, Peace and blessings of Allah be with you. All praises are due to Almighty Allah, who enabled us to continue our mission of serving hu­ manity during these uncertain and challenging times. The Covid'19 pandemic impacted our lives in all manner of shape and form. Our professional work was no different. The ongoing pandemic had a direct impact on how we operate in the United Kingdom and abroad. We had to adjust and adapt to this deadly virus and its spread across the world. It had a direct impact on our programmes delivery and our finances. As a result, we had to make significant alterations to our budget and the delivery plans. 

The national lockdown in the United Kingdom pushed us into unfamiliar waters, where the very existence of our organisation was at stake. As the traditional sources of income and do­ nations were no longer available to us, we were at the risk of losing most of our colleagues and our capacity to deliver our programmes with it. With the timely introduction of the gov­ ernment's flexible furlough scheme, we were able to secure the services of our talented and hardworking colleagues, albeit on reduced hours. 

We, as a charity, have a long tradition of helping vulnerable communities during various crises. As Covid-19 emerged as the most significant global health emergency, we were doubly keen to serve people. 

We adopted a new communications strategy to connect with our donors and communities. We overhauled our digital media comms and started using these platforms as primary channels of engagement. By the grace of Allah, we not only survived, but we are growing as an organisation. 

At the same time, we rolled out our Covid Emergency Response campaign in the United King­ dom to help vulnerable communities with food supplies. This campaign allowed us to part­ ner with multiple funding institutions and volunteer groups locally. 

Over the year, the charity was able to recover from the initial challenges of Covid-19. We im­ proved our financial situation, thus continuing our commitment to our beneficiaries, sup­ porters, and colleagues. The charity is now moving towards relative stability and a period of sustainable growth. 

Throughout our Covid Emergency campaign, we remained committed to the health and safety of our colleagues, volunteers, and the people we were serving. 

**3** 



We provided 198,020 meals to vulnerable people worldwide during this campaign, including 50,460 meals in the UK. We also offered halal meals to frontline NHS staff in different hospitals. We have also provided psycho-social supports to around 200 people. 

The Covid 1-19 had a significant impact on the delivery of our flagship Little Hearts programme. We have to postpone our planned Little Heart missions in 2020. However, we were able to deliv­ er our other critical programmes in various parts of the world. 

We successfully started our work on cataract and maternal mortality, although the delivery volume was significantly reduced. In 2020, we had initially planned to perform 3000 cataracts surgeries in Chad. Due to the pandemic, we only managed to deliver 1000 surgeries. The opera­ tions were conducted by the Chad Ministry of Health, funded by us and our partners, Alliance of International Doctors, Istanbul. We are planning to deliver the rest of our commitment to Chad in 2021. 

Sierra Leone has one of the world's highest maternal mortality rates. At an estimated 1,165 deaths per 100,000. In 2020, we successfully developed and initiated a midwifery training pro­ ject to combat this problem. 

In Islam, giving water is considered the best charity. Muntada Aid has provided safe drinking water solutions to communities in for the past 30 years. In 2020, despite all the challenges due to Covid, we installed over 160 water wells in Asia and Africa. 

In 2020, Muntada Aid restarted its child sponsorship programme "Enlightened Smiles" to edu­ cate vulnerable children in economically disadvantaged countries and provide sponsorship to 206 children in 5 African countries. 

Muntada Aid has also started constructing a primary school in Suq, Ethiopia, aiming to extend access to education by providing children with a modern school building, teachers, water, sanitation, and hygiene facilities. The school will facilitate the education of at least 150 children from the local community. 

We also managed to provide more than a million meals to over 230,000 beneficiaries during the month of Ramadan and Qurbani through Feed the Forgotten programme. We have alsofrovid­ ed emergency food and household necessities to refugees of Yemen and flood victims o Sudan. 

At the heart of the Muntada Aid are its volunteers. Muntada Aid is now actively sponsoring and organising sporting events in the UK to provide our volunteers with opportunities of staying fit, expressing themselves through sports and at the same time helping vulnerable communities. In 2020, we involved over 100 volunteers through sports activities like running, cycling, and boat racing and raised above £70K for various projects through this unique partnership with young professionals and students. 

As a responsible international charity, we remain committed to the process of due diligence on the economic, ethical and extremism front. We perform regular checks on all our existing and new partners in the field. We also have a thorough due diligence process in place for marketing and fundraising partnerships. 

At Muntada Aid, we believe that our partners are our greatest assets. They allow us to reach the communities and people otherwise challenging to reach and engage. That is why, whenever possible, we keep on building new relationships and continuing working with our existing part­ ners. In 2020, we signed a General MoU of cooperation with UNRWA, Muslim Aid Sweden, North American Humanitarian Aid and Relief (NAHAR). 

It is a fact that 2020 presented us with challenges that were unique and unchartered. It made us adjust our style of working, communications and delivery of our projects. But these challenges came with their own set of opportunities. With support from various quarters and the need to innovate, we managed to survive and grow. This stability will allow us to extend the scope of our programmes to more people in the coming years. 

May Almighty Allah enable us with the best of His blessings to continue serving humanity, Ameen. 



**Musaed Bin Ajlan,** Chair 

**Hamid Azad,** CEO 

**4** 



## 

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## **Main Objectives** _**Q9**_ 

To reduce poverty by providing or assisting in the provision of: education, healthcare, WASH and alternative income generation programmes as well as the necessary support required to enable individuals to generate a sustainable income and thus become self-sufficient. The fulfilment of the above objectives is enshrined in our mission statement. 

## **Mission** _**Q9**_ 

Our mission is to develop healthy and sustainable communities worldwide. Through implementing our innovative social, economic, education, and health and wellbeing programmes, we want to empower those denied social justice and human dignity, in order to make a lasting change in the world. 

## **Vision** _**Q9**_ 

A caring and dignified world where everyone is free from poverty and has access to education and healthcare. 

## **Values** _**Q9**_ 

Guided by the teachings of our Prophet and our Islamic principles, Muntada Aid has adopted the 'I CARE' model of values. 

I 

**lnspiri�I Hope** we believe that the world can be a better place, and our hope is that our actions will inspire others to be part of the change. 

**C Caring & Compassionab** Our work is founded on showing care and compassion to all those that we work with. 

**A** 

**Accountabil it}** 

**& Integrity** 

For us, having integrity means that we take responsibility for our actions and hold ourselves accountable in all that we do. 

**R Respect & Dignity** we will show respect & preserve the dignity of all those we work with by treating others as we wish to be treated. 

**E Excellenc,** 

In working towards making the world a better place, excellence is the standard we set ourselves both in our conduct and our actions. 

**7** 




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## **You Have Changed Samuel[1] s Life** 

**Samuel Kawere is eight years old. He was suffering from severe pulmonary stenosis and had to go through a pulmonary balloon Valvoplasty procedure to remove the stenosis (narrowing) of the pulmonary artery.** 

His father works as a motorcycle mechanic with a monthly income of $70. 

His family could not support his intervention until now. 

He was referred to our Little Hearts mission by the Uganda Heart Institute, where our team of internationally renowned paediatric cardiologists performed the intervention 

Congenital Heart Disease (CHD) is a defect in the heart that a baby is born with. It affects 1 in 100 births around the world and can be treated with an invasive/non-invasive heart opera­ tion at birth, depending on the type of heart defect. 

In poor underdeveloped countries, the lack of specialised medical infrastructure in develop­ ing nations means babies born with congenital heart defects have little to no access to criti­ cal treatment 

Muntada Aid believes ignoring this deadly killer is tantamount to a death sentence on the many babies afflicted with this disease. 





## 




## 




M U N T A D A
(gAID
FEED'FORGOTTEN
Ramadan 2020
Generally our Feed the Forgotten programme operates in 23
countries. The programme is aimed to fight hunger in countries
which have some of the highest rates of malnutrition due to
political, climatic and economic situations.
15

M U N T A D A
fy)AID
During Ramadan, our Feed the Forgotten project distributed food
provisions for a whole month in 9 countries.
32,000
BENEFICIARIES SERVED
16"

ACROSS 9 COUNTRIES
4.200
21.000
42.000
23.800
MEALS MEALS MEALS MEALS
BENIN
ETHIOPIA
GHANA
MALI
•)•
9.800
15.260
7.000
24.500
MEALS MEALS MEALS MEALS
NIGER
SUDAN
TOGO
UGANDA
CORONAVIRUS UK RESPONSE
During this difficult
time. a food delivery
programme was
set up for the most
vulnerable people and
key NHS workers.
50.460
MEALS
17

198,020
MEALS SERVED GLOBALLY
THE BEST OF PEOPLE
ARE THOSE THAT BRING MOST BENEFIT
TO THE REST OF MANKIND
Prophet Mohammed (PBUH)
Our mission is to develop healthy and sustainable communities
worldwide, to empower those denied social justice and human
dignity, in order to make a lasting change in the world.
18
Charfty Reglslratlon No: l 157117


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## **Organisational Structure:** 

A change process was completed in August 2019 giving rise to operational alignment and greater efficiencies. 

The trustees have delegated the day to day running of the charity to the Chief Executive Officer who is accountable to the trustees. The trustees have regular meeting to assess the performance of the charity. The Board of Trustees also works with key stakeholders and makes sure that we satisfy the regulatory requirements on us as a charity. The CEO engages actively with the Senior Management of the Charity in order to improve Muntada Aid's ability to respond to disasters and develop continuous development programmes. Systems for line management appraisals, staff development and supervision are in place, together with an accountability framework, and grievance and complaints procedures. Reports are submitted to the Charity Commission and Companies House by the Trustees, as required by law. 

## **II** 

## **Pay Policy for Senior Staff:** 

Pay for senior staff is reviewed annually. During Financial year 2020, there were no staff members who received a salary of more than f 60.000. 

## **Board of Trustees:** 

The Board of Trustees comprised of three trustees. They are responsible for all matters pertaining to governance of the char•ity and policy making. They ar·e also responsible to provide adequate guidance and strategic directions to the manage­ ment of the charity so that they can implement programmes and projects in an efficient and transparent manner, within its policy framework, thus fulfilling the stated aims and objectives of the charity. 

## **Trustees' responsibilities in relation to the financial statements:** 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial state­ ments comply with the Charities Act 2011. 

The Trustees are responsible for preparing the Trustees' Report and the financial statements for each financial year in accordance with the law applicable to charities in England & Wales. The Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law, and in accordance with Accounting and Reporting by Charities: State­ ment of Recommended Practice (Charities SORP - FRS102). 

**34** 



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U.S. InaY1dv￿ Incom• T•1 R•kn
20
*yS•yP4
-y
FINANCIA
REPGh
38

INDEPENDENT AUDITOR'S REPORT TO THE
MEMBERS AND TRUSTEES OF MUNTADA AID
We have audited thefinancial statements of Muntada Aid fortheyear ended 31 December 2020
which comprise a Statement of Financial Activities, Balance Sheet and related notes. The financial
reporting frameworkthat has been applicable lawand United Kingdom Accounting Standards
{United ￿'ngdorn Generally Accepted Accounting Practice}.
Respective Responsibilities of the
Governors and Auditors
The Governors as Trustees (who are also the directors of the charitable company for the pur-
pose of company lawl are responsible for preparation of the financial statements and for
being satisfied that they give a true and fair view. Our responsibility is to audit and express
an opinion on the financial statements in accordance with applicable law and International
Standards on Auditing (UK & Irelandl. Those stsndards require us to comply with the Audit-
ing Prartices Board's Ethical Standard for Auditors.
Scope of the Audit
An audit involves obtaining evidence about the amount of disclosures in the financial ￿ate-
ments sufficient to give reasonable assurance that the financial statements are free from
material missiatement, whether caused by fraud or error. This includes an assessment of..
whether the accounting policies are appropriate to the companls circumstances and have
been consistently applied and adequately disclosed,. the reasonableness of significant ac-
counting estimates made by the Governors,. and the overall presentation of the financial
statements.
Opinion on the Financial Statements
In our opinion the financial statements..
give a true and fair view of the state of the companys profit or loss for the year ended
31 December 2020,.
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Prartice,. and
have been prepared in accordance wth the requirements of the Companies Act 2006 and
the Charities Act 2011.
39

Opinion on other matters prescribed by the
Companies Act 2006
In our opinion the information given in the Trustees Report for the financial year for which
the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to
report by exception
We have nothing to report in respert 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
Certain disclosures of trustees, remuneration specified by law are not made; or
• We have not received all the information and explanations we require for audit,. or
• The Trustees were not entitled to prepare the financial statements in accordance with the
Small Companies regime and take advantage of the Small Companies Exemption in pre
paring the Report of the Trustees.
On behalf of KWSR & Co.:
Susan Rahman. Bsc FCA (Senior Statutory Auditor)
KWSR & Co. Chartered Accountants & Registered Auditors
136 Merton High StreeL
London SW19 1 BA
29th September 2021
40

MUNTADA AID
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
Notes
Unrestricted
Fund5
Restrlcted Endowment
Funds
Fund5
Total
2020
Total
2019
INCOME FROM
Donations and legacie5
Inrorne frofft otherJttivitie5.'
Rent income from properties
409,788
1,104,144
1,513,932
2,132,320
286,547
Total Income
409,788
1,104,144
1.513,932
2,418,867
EXPENDITURE ON
Raising funds
Property management costs
49,504
142,123
191,627
24,150
385,097
49,281
24,150
Expenditure on charitable activities
Emergency Relief
Education
1,613
38,389
128,555
419,880
34,843
100,214
65,894
387,051
421,493
73,232
228,769
65.894
387,051
511,207
13,584
533,048
115,226
6 93,913
Healthcare
WASH
Religious Dues
Total Charitable expenditure
168.557
1.007.882
1.176.439
1.866.978
Total expendlture
218.061
1.150.005
24.150
1,392.216
2.301.356
Net income I lexpenditurel and net
movement in the fund5 for the year
191,727
145,8611
124,1501
121,716
117,511
Net Movement in funds
191,727
145.8611
124.1501
121,716
117.511
Reconclllatlon of funds
Funds balances broLJght forward
1328,4131
415,612
2,034,976
2,122,175
2,004,664
Funds balancès carrled forward
1136.6861
369.751
2.010.826
2.243.891
2.122.175
Hisham Bella
Trustee & Treasurer
41

MUNTADA AID
BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2020
Note5
Total
2020
Total
2019
FIXED ASSETS
Tangible assets
3,128,188
3,127,173
3,128,188
3,127,173
CURRENT ASSETS
Debtors
Cash at bank and in hand
24,340
163,877
214
98,386
188,217
98,600
Creditors.. falling due within one year
157,8681
188.9521
Net ¢urrÈnt assets
130,349
Total assets less current liabilities
Creditors.. falling due after more than 1 year
3,258,537
11,014,6461
3,136,821
11.014.646)
Net assets
2.243.891
2.121175
THE FUNDS OF THE CHARITY:
Unrestricted income funds
General funds
Designated funds
Restricted income funds
Endowment funds
1146,7541
10,068
369,751
2,010,826
1337,4661
9,053
415,612
2,034,976
Total charity funds
10
2.243.891
2.121175
Hisham Bella
Trustee & Treasurer
42

MUNTADA AID
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
2020
2019
CASH FLOW STATEMENT
Net cash inflow from operating activities
Payments to acquire tangible fixed 85sets
72,890
17,3991
2,386,909
13,122,257)
Increase in cash in the year
65.491
1735.3481
NOTE TO THE CASH FLOWSTATEMENT
Reconclllatlon of chan
in net funds to net cas
operating activities
es In movèmènt
inflow from
Movement in net fund5
Add.. Depreciation
Decrease / Ilncreasel in debiors
Increase / (Decrease) in creditors
121,716
6,384
124,1261
131,0841
1140,3131
1,871
2.019.248
506,103
Net cash Inflow I loutflowl from operatlng actlvltles
72.890
2.386.909
Analysi5 Of change in net funds
Opening
balalnce
01 January
2020
Closing
balalnce
31 December
2020
Cash Flow
Movèmènt
Cash at bank and in hand
98,386
65.491
163,877
Hisham Bella
Trustee & Treasurer
43

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
(I) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) General information and basis of preparation
Muntada Aid is a registered charitable company limited by guarantee in England & Wales.
In the event of the charity being wound up, the liability in respect of the guarantee is lim-
ited to £ 1 per member of the charity. The address of the registered office is given in the
charity information on page 4 of these financial statements. The nature of the charity's
operations and principal activities are development of education, child development, de-
velopment of healthcare & wellbeing, development of water &sanitisation, and hygiene
facilities, economic empowerment and emergency response.
The charity constitutes a public benefit entity as defined by FR5102.The financial state-
ments have been prepared in accordance with 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 issued in October 2019. the Financial Reporting Standard applicable in the in the
United Kingdom and Republic of Ireland (FRS 1021,the Charities Act 2011, the Companies
Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost
convention, modified to include certain items at fair value. The financial statements are
presented in sterling which is the functional currency of the charity .The significant ac-
counting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all years presented unless other-
wise stated.
(b) Funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of
the general objectives of the charity and which have not been designated for other pur-
poses.
Designated funds comprise unrestricted funds that have been set aside by the trustees
for particular purposes. The aim and use of each designated fund is set out in the notes
to the financial statements
Restricted funds are funds which are to be used in accordance with specific restrictions
imposed by donors or which have been raised by the charity for particular purposes. The
cost of raising and administering such funds are charged against the specific fund. The
aim and use of each restricted fund is set out in the notes to the financial statements. En-
dowment funds represents those assets which must be held permanently by the charity.
Income arising on the endowments funds can be used in accordance with the objectives
of the charity and is included as unrestricted income. Any capital gains or losses arising
on the investments form part of the fund. Investment management charges and legal
advice relating to the fund are charged against fund.
44

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
(c) Income recognition
All incoming resources are included in the Statement of Financial Activities ISOFAI when
the charity is legally entitled to the income after any performance conditions have been
met, the amount can be measured reliably and it is probable that the income will be re-
ceived.
For donations to be recognised the charity will have been notified of the amounts and
the settlement date in writing. If there are conditions attached to the donation and this
requires a level of performance before entitlement can be obtained then income is de-
ferred until those conditions are fully met or the fulfilment of those conditions is within
the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their
fair value when their economic benefit is probable, it can be measured reliably and the
charity has control over the item. Fair value is determined on the basis of the value of the
gift to the charity. For example, the amount the charity would be willing to pay in the
open market for such facilities and services. A corresponding amount is recognised in ex-
penditure.
No amount is included in the financial statements for volunteer time in line with the
SORP. Further detail is given in the Trustees, Annual Report.
Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity
are included in stock and donations in the financial statements upon receipt. If it is im-
practicable to assess the fair value at receipt or if the costs to undertake such a valuation
outweigh any benefits, then the fair value is recognised as a component of donations
when it is distributed and an equivalent amount recognised as charitable expenditure.
Fixed asset gifts in kind are recognised when receivable and are included at fair value.
They are not deferred over the life of the asset.
For legacies, entitlement is the earlier of the charity being notified of an impending distri-
bution or the legacy being received. At this point income is recognised. On occasion lega-
cies will be notified to the charity however it is not possible to measure the amount ex-
pected to be distributed .On these occasions, the legacy is treated as a contingent asset
and disclosed.
I ncome from trading activities includes income earned from fundraising events and trad-
ing activitie5 to raise funds for the charity.
45

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
(c) Income recognition
Income is received in exchange for supplying goods and services in order to raise funds
and is recognised when entitlement has Occurred.
Income from government and other grants are recognised at fair value when the charity
has entitlement after any performance conditions have been met, it is probable that the
income will be received and the amount can be measured reliably. If entitlement is not
met then these amounts are deferred.
Investment income is earned through holding assets for investment purposes such as
shares and property. It includes dividends ,interest and rent. Where it is not practicable
to identify investment management costs incurred within a scheme with reasonable ac-
curacy the investment income is reported net of these costs. It is included when the
amount can be measured reliably.
interest income is recognised using the effective interest method and dividend and rent
income is recognised as the charitys right to receive payment is established.
Other income includes the conversion of endowment funds into income which arises
when capital funds are released to an income fund from expendable endowments or
when a charity has authority to adopt a total return approach to its permanent endow-
ment fund. It also includes other income such as gains on disposals of tangible fixed
assets.
(d) Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under head-
ings that aggregate all costs related to the category. Expenditure is recognised where
there is a legal or constructive obligation to make payments to third parties, it is probable
that t the settlement will be required and the amount of the obligation can be measured
reliably. It is categorised under the following headings:
* Cost of raising funds includes Printing, Mailing, Digital Marketing, Advertising, Sponsor-
ship and merchandise, Treks and challenges
*Expenditure on charitable activities includes economic empowerment. emergency
relief. education, healthcare, wash and religious Due
*Other expenditure represents those items not falling into the categories above.
46

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
(d) Expenditure recognition
Irrecoverable VAT is charged as an expense against the activity for which expenditure
arose.
Grants payable to third parties are within the charitable objectives. Where unconditional
grants are offered, this is accrued as soon as the recipient is notified of the grant, as this
gives rise to a reasonable expectation that the recipient will receive the grants. Where
grants are conditional relating to performance then the grant is only accrued when any
unfulfilled conditions are outside of the control of the charity.
(e) Support cost allocation
Support costs are those that assist the work of the charity but do not directly represent
charitable activities and include office costs,
governance costs, administrative payroll costs. They are incurred directly in support of
expenditure on the objects of the charity and include project management carried out at
Headquarters. Where support costs cannot be directly attributed to particular headings
they have been allocated to cost of raising funds and expenditure on charitable activities
on a basis consistent with use of the resources overheads have been allocated on the
basis of full cost recovery method based on expenditure proportion of each project and
fundraising cost.
Fund-raising costs are those incurred in seeking voluntary contributions and do not in-
clude the costs of disseminating information in in support of the charitable activities.
The analysis of these costs is included in notes13, 4, 12 & 14)
(fl Tangible fixed assets
Tangible fixed asset5 are stated at cost lor deemed costl or valuation less accumulated
depreciation and accumulated impairment losses. Cost includes costs directly attributa-
ble to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the
cost, less estimated residual value, of each asset on a systematic basis over its expected
useful life as follows..
IT equipment 25% Straight line basis. The method has been changed from this year. l Last
year 25% reducing balance basis I
47

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
(g) 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 recog-
nised in expenditure.
(h) Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transac-
tion costs. Subsequently, they are measured "at amortised cost using the effective inter-
est rate method, less impairment. If an arrangement constitutes a finance transaction it
is measured at present value.
( l ) Provisions
Provisions are recognised when the charity has an obligation at the balance sheet date as
a result of a past event, it is probable that an outflow of economic benefits will be re-
quired in settlement and the amount can be reliably estimated.
48

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2 Donation5 and legacies
2020
Unrestricted
2020
Restricted
Total
2020
2019
Unrestrlcted
2019
Restrlcted
Total
2019
Received in UK
381.551
842,588
1,224,139
308.383
1,302.083
1,610,466
Received in Overseas
98,000
98,000
381.551
842.588
1.224.139
308.383
1.400.083
1.708.466
Gift Aid tax claim
28,237
71,456
99,693
25,771
110,603
136,374
Gift in Kind
190,100
190,100
287,480
287,480
409,788
1,104,144
1.513,932
334.154
1,798,166
2,132,320
49

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
3 Expenditure On
Direct
Costs
Human
Re50urce5
Su
ort
osts
Total
2020 Costs
Total
2019 Costs
Raising Funds
Property management costs
90,729
88,119
12,779
191,627
24,150
385,097
24,150
49,281
Charitable activitie5
Ernergency Relief
Education
Healthcare
288,075
50,051
156,354
45,036
264,534
92,844
16,131
50,391
14,515
85,255
40,576
7,050
22,023
6,343
37,261
421,495
73,232
228,768
65,894
511,207
13,584
533,048
115,226
693,913
WASH
Religious Dues
387,050
Total Charltable actlvltles
804,050
259.136
113,253
1.176.439
1.866.978
Total resources expended
918.929
347.255
126.032
1.392.216
2.301.356
4 Support costs
Office
Co5t5
Finance
& IT Costs
Governance
Costs
Total
2020
Total
2019
Raising Funds
8,727
1,997
2,055
12,779
16,894
Charltable activities
Emergency Relief
EdLJcation
27,709
4,814
15,039
6,341
1,102
3,442
991
6,526
1,134
3,542
40,576
7,050
22,023
6,343
37,261
30.533
811
Healthcare
31.838
6,882
41,446
W￿H
4,332
1,020
Religious Dues
25,445
5,822
5,994
86,066
19,695
20.271
126,032
128,404
50

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
5 TANGIBLE FIXED ASSETS
Freehold
Property
IT
Equipment
Charity
Total
Cost
At 01 january 2020
Additions
3,118,120
18,132
7.399
3,136,252
7,399
As at 31 December 2020
3.118.120
25.531
3.143.651
Depreclatlon
At01 lanu3ry2020
Charge for the year
Disposals
9,079
6,384
9,079
6,384
As at 31 December 2020
15.463
15.463
Net book values
As ai 31 December 2020
3,118.120
10,068
3,128,188
NBV at31 December 2019
3.118.120
9,053
3.127,173
DEBTORS AND PREPAYMENTS
2020
2019
Trade Debtors
Other Debtors
10.626
13,714
214
24.340
214
CREDITORS: AMOUNTS FALLING DUEWITHIN ONEYEAR
2020
2019
Trade Creditors
Taxation and Social Seiurity
NEST (Pension Provider)
VAT control account
Other Creditors and Accruals
49,398
7,400
1 ,070
10,372
8,870
2,330
67,380
57.868
88.952
CREDITORS:AMOUNTS FALLING DUE AFTER MORE THAN 1 YEAR
2020
2019
Loan for property purchase
1,014,646
1,014,646
1.014.646
1.014.646
51

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
RESTRICTED FUNDS AND
UNRESTRICTED FUNDS
Asat
01 Jan 2020
Incoming
Resources
Resources
Expended
Transfers
Asat
31 Dec 2020
Restricted funds
Emergeniy Relief
Education
Healthcare
169,259
51,928
133,538
60,887
3 27,758
33,132
4 11,087
88,869
2 43.298
1444,0321
141,1101
1176,4681
182,7041
1405,6911
3S,864
7,978
1206,2351
88,849
51,928
161,922
67,052
WASH
Religious Dues
162,393
Total Restrlcted funds
415.612
1.104,144
{1,150,OOSI
369,751
Endowment fund
2.034.976
124.1501
2.010.826
Unrestricted fund5
Programme funds
General fund
Designated funds (fixed assets)
21,240
1358,7061
9,053
277,935
131,853
1205,4561
112,6051
137,2561
36,241
1,015
56,463
1203,2171
10,068
Total Unrestricted funds
{328.4131
409.788
1218.0611
1136.6861
Total funds
2.122.175
1.513.932
{1.392.2161
2.243.891
10 NET ASSETS BY FUNDS
Unrestricted
Restricted
Total
Tangible fixed assets
Net current assets
10,068
1146,7541
3,118,120
1737,5431
3,128,188
1884.2971
1136,6861
2.380.577
2.243.891
11 ANALYSIS OF CHANGE IN NET FUNDS
OpeTring
balance
1 Janua
202
Closing
balance
31 December
2020
Cash flow
movement
C35h at bank and in hand
98,386
65,491
163.877
52

MUNTADA AID
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
12 Auditor's r¢mun¢ration
2020
2019
Fees payable to the charity's auditor for the audit of the charity's annual account
The charity has entered into a liability limitation agreement with the charitls
auditor which wa5 approved on 30th April 2019
5,000
5,000
13 Tru5tees' and key management personnel remuneration and expense5
2020
2019
The trustees neither received nor waived any remuneration during the year
The tot31 amount of employee benefit received by key management personel
Number of trustees are accruing pension arrangements during the year
The trustees did not have any epenses reimbursed during the year
14 Staff costs and employee benefits
2020
2019
The average monthly number of employee sl IfLJII time equivalentl during the year was as follows
Raising funds
Charitable activities
71161
121191
Governance
31131
61141
The total staff costs and employee benefits were as follow5-
2020
2019
Wage5 and salrie5
Social security
Defined contribution pension c05t
312,295
456,134
29,445
32,750
5,468
5,867
347.208
494.751
15 Interest payable and slmllar expenses
2020
2019
Interest on bank loans and overdrafts during the year
16 Related party transactlons
2020
2019
Related parry transactions during the year
53

The Trustees Declare that they have read, understood and approved the report.
Signed on behalf of the trustees..
Hisham Bella
Treasurer
The Board of Trustees
@ALL RIGHTS RESERVED 2021.
MUNTADA AID, FIRST FLOOR, LMC BUSINESS WING, 38 - 44 WHITECHAPEL ROAD, E1 1JX.
REG CHARITY NO: 1157117 EMAIL: INFO@MUNTADAAID.ORG
54