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2020-07-31-accounts

REGISTERED CHARITY NUMBER: 1158044

INSPIRING GRACE

TRUSTEES' REPORT AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

INSPIRING GRACE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Page
Reference and Administrative Details 1
Trustees' Report 2 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 10
Detailed Statement of Financial Activities 11 to 12

INSPIRING GRACE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2020

Trustees Anisa Rasul
Mazaffar Iqbal Rauf
Muhammad Umar Iqbal
Tahir Hussain Anwar
Mohammed Amad
Principal address 172 Regent St
Nelson
BB9 8SG
Registered charity number 1158044
Independent examiner Riley Moss 2018 Limited
Chartered Accountants
Riley House
183-185 North Road
Preston
Lancashire
PR1 1YQ

Page 1

INSPIRING GRACE TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020

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

The objectives of the trust as set out in its governing document are:

1) The prevention of relief of poverty in Pendle, Lancashire and the surrounding area through the provision of essential food items to individuals and families in need.

2) The advancement of education through providing educational courses which promote, sustain and increase individual and collective knowledge and understanding on topics related to Islamic theology, jurisprudence and spirituality.

3) To advance the Islamic Faith through the holding of weekly prayer meetings where people gather to sing Islamic hymns in praise of God and the Prophet Muhammad (PBUH)

4) The promotion of community participation in healthy recreation for the benefit of the inhabitants of Pendle, Lancashire and surrounding area.

Achievement and performance

It has been a very challenging year for the charity with the pandemic which has caused disruption to many of our services, but has allowed us to focus on our food poverty projects in particular. The demand particularly in the first lockdown went up multifold on previous years and we had to secure lots of different funding pots and engage with more volunteers to help us to keep up with this demand. We created a street community champions programme which was very successful and created important links with the local council as a key partner in the relief efforts. Prior to the lockdown, we successfully added to our growing sports programmes by delivering new weekly sessions of Brazilian Jiu Jitsu for adults and children as well as launching our scouts club. This has allowed us to create a structured programme for young people from ages 6-14 as they develop from beavers to cubs to scouts. During the lockdown our team completed a 6 week programme to become affiliated with the international Fight4Peace programme which uses the martial arts to engage young people and develop skills such as gaining qualifications and becoming more employable.

Financial review

Financial position

Monthly figures are submitted by respective heads of each area (food, sports, education etc.) between days 1 and 5 at the start of each month. The figures are checked against the monthly bank statement by the treasurer and queried/corrected if necessary. Restricted funds are carefully monitored with spreadsheets in place to monitor the expenses in line with the income for the respective restricted pot.

Reserves policy

It is the policy of the charity to maintain unrestricted funds at a minimum level. This provides sufficient funds to cover management and administration and support costs.

Future plans

We expect the future period is going to involve the majority of our efforts on the food poverty programme. We will continue to work with our local partners and the local community to help those in need in the local area. We have also developed a zakat programme which provides financial support to eligible local people and expect the demand will rise the longer the pandemic goes on. We will also use the period where some of our sessions can continue to do some fundraising for the charity whether that is in the writing of bids, promoting our online donation pages and taking part in crowd and match funding initiatives.

Page 2

INSPIRING GRACE TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020

Structure, governance and management

Inspiring Grace is a registered UK Charity under charity number 1158044. It is an unincorporated charity. The governing document is a Trust Deed. The trustees named on page 1 have served throughout the year. The trustees have the power to appoint any person to be a trustee in accordance with the provisions of the Trust Deed. An appointed trustee holds office within the limits permitted by law.

Statement of trustees' responsibilities

The trustees 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"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 26 May 2021 and signed on its behalf by:

Mazaffar Iqbal Rauf - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF INSPIRING GRACE

Independent examiner's report to the trustees of Inspiring Grace

I report to the charity trustees on my examination of the accounts of Inspiring Grace (the Trust) for the year ended 31 July 2020.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Farook Patel FCA Riley Moss 2018 Limited Chartered Accountants Riley House 183-185 North Road Preston Lancashire PR1 1YQ

26 May 2021

Page 4

INSPIRING GRACE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Income and endowments from
Donations and legacies 85,781 77,251 163,032 50,724
Expenditure on
Charitable activities 2
Charitable activities 57,758 41,242 99,000 49,142
NET INCOME 28,023 36,009 64,032 1,582
Reconciliation of funds
Total funds brought forward 9,866 22,519 32,385 30,803
Total funds carried forward 37,889 58,528 96,417 32,385
----- End of picture text -----

The notes form part of these financial statements

Page 5

INSPIRING GRACE

BALANCE SHEET 31 JULY 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Current assets
Cash at bank 38,439 58,528 96,967 32,715
Creditors
Amounts falling due within one year 5 (550) - (550) (330)
Net current assets 37,889 58,528 96,417 32,385
Total assets less current liabilities 37,889 58,528 96,417 32,385
NET ASSETS 37,889 58,528 96,417 32,385
Funds 6
Unrestricted funds 37,889 9,866
Restricted funds:
Restricted funds 58,528 22,519
Total funds 96,417 32,385
----- End of picture text -----

The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2021 and were signed on its behalf by:

Mazaffar Iqbal Rauf - Trustee

Tahir Hussain Anwar - Trustee

The notes form part of these financial statements

Page 6

INSPIRING GRACE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting policies

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

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.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from 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.

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.

Page 7

continued...

INSPIRING GRACE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

2. Charitable activities costs

----- Start of picture text -----
||||| |---|---|---|---| |Direct|Support| |Costs|costs|Totals| |£|£|£| |Charitable activities|98,450|550|99,000|

----- End of picture text -----

3. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2020 nor for the year ended 31 July 2019.

4. Staff costs

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |Admin|3|1|

----- End of picture text -----

No employees received emoluments in excess of £60,000.

During the year Inspiring Grace has paid wages and salaries of £30,682 (2019: £10,053)

5. Creditors: amounts falling due within one year

----- Start of picture text -----
||||| |---|---|---|---| |2020|2019| |£|£| |Other creditors|550|330| |Movement in funds| |Net| |movement|At| |At 1.8.19|in funds|31.7.20| |£|£|£| |Unrestricted funds| |Unrestricted funds|9,866|28,023|37,889| |Restricted funds| |Restricted funds|22,519|36,009|58,528| |TOTAL FUNDS|32,385|64,032|96,417|

----- End of picture text -----

6. Movement in funds

Page 8

continued...

INSPIRING GRACE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

6. Movement in funds - continued

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

Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds
TOTAL FUNDS
Incoming
resources
£
85,781
77,251
163,032
At 1.8.18
£
15,409
15,394
30,803
Resources
Movement
expended
in funds
£
£
(57,758)
28,023
(41,242)
36,009
(99,000)
64,032
Net
movement
At
in funds
31.7.19
£
£
(5,543)
9,866
7,125
22,519
1,582
32,385

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

Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
34,476
(40,019)
(5,543)
16,248
(9,123)
7,125
TOTAL FUNDS 50,724
(49,142)
1,582

Restricted Funds - This comprises of 23 restricted funds received for the various purposes which all related to the objectives and activities of the charity.

Page 9

continued...

INSPIRING GRACE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2020

7. Related party disclosures

There were no related party transactions for the year ended 31 July 2020.

Page 10

INSPIRING GRACE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

Income and endowments
Donations and legacies
General donations
Sports course fees
Building Fund
Sport
LCC Food
Food Bank
I Will Foundation
Magic Grants
Zakat
Skeleton
Archery GB
Awards to All
Charles Hayward
Sport England
CCG 2020
LCC Refugee YP
PCC Grant
Dulverton Trust
Christal Foundation
StreetGames
IFAN
Lancs Community Foundation
Groundwork
Leatherselles
Goodthings Foundation
Sadaqah for Brother
Duchy of Lancaster
Neighbourly
Total incoming resources
Expenditure
Charitable activities
Charitable activities
Building fund
LCC food expenditure
Sports
Syria project and other project expenditure
I Will Foundation
Scouts
Zakat
Foodbank
Carried forward
2020
£
74,148
11,632
1,183
-
-
6,006
-
-
800
-
600
10,000
4,000
14,710
6,000
4,000
3,000
4,958
3,000
2,000
500
5,000
500
3,000
2,500
95
5,000
400
163,032
163,032
36,772
500
-
11,664
-
1,260
5,012
2,500
5,991
63,699
2019
£
22,882
11,594
1,210
1,250
1,400
318
4,200
500
6,110
1,260
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,724
50,724
18,252
1,000
1,016
13,973
2,182
1,800
7,089
3,500
-
48,812

This page does not form part of the statutory financial statements

Page 11

INSPIRING GRACE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

----- Start of picture text -----
2020 2019
£ £
Charitable activities
Brought forward 63,699 48,812
Magic Grants 474 -
CCG 200 2,670 -
Awards for All 5,265 -
-
Charles Hayward 2,439
Skelton 1,228 -
-
Sport England 4,440
-
LCC Refugee TP 2,240
PCC Grant 530 -
Christal Foundation 540 -
Dulverton Trust 630 -
StreetGames 300 -
IFAN 500 -
-
Lancs Community Foundation 5,000
Leatherselles 3,000 -
Sadaqah for Brother 95 -
Neighbourly 400 -
-
Duchy of Lancaster 5,000
98,450 48,812
Support costs
Governance costs
Accountancy and legal fees 550 330
Total resources expended 99,000 49,142
Net income 64,032 1,582
----- End of picture text -----

This page does not form part of the statutory financial statements

Page 12