REGISIERED CHARIIY NUMBER: 1160353 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 FOR THE ISLAMIC FOUNDATION THE ISLAMIC FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page Reference and Admlnistrotlve Delalls Report of the Tr(JsleÈs Report ol Ihe Independenl Audllors Slotemenl ol Flnanclal Acllvlllès 10 Balonce Sheel Cush Flow Slolement Noles to the Cash Flow Slalemenl 13 Notes lo the Flnonclal Slolemenls 14 to 21 Detalled Statement of Flnanclal Aclivllles 22 10 23 THE ISLAMIC FOUNDATION REFERENCE AND ADMINISYRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022 TRUSTEES Prol A Ahmad DrMABari Dr M Ah%on Prol K Ahmad Dr Z PoNez Dr R Ndohammed Dr M R M Lebbai PRSNCIPAL ADDRESS The Marklield Cor)lerence Centre Rotby Lone L8ir.esler Leicestershire LE67 9SY REGISTERED CHARITY NUMBER 1160353 AUDITORS TC Group 31 High View Close Hamillon Ollice Park Leicester Leicestershire LE4 9LJ Page I THE ISIAMIC FOUNDATION REPORT OF IHE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees present their report with the linan¢icTI stotemenls ol the chorily lor the year ended 31 December 2022. The Iruslee5 have adopted the provisions ol Accounting ond Reporting by Charities.. Slotement ol Recommended Practice applicoble to chorities preparing their occount5 in accordonce with the Financial Reporting Standord applicable in the UK and Republic ol Ireland IFRS 1021 lelleclive I Jonuory 20191. OBJECTIVES AND ACTIVITIES ObJecllves and olms The key purpose ol the charity is lo promote on understanding of Islom ond the lglomic worfd. in occordonce with the objeclive5 laid out in the Injsl deeds. The Trustees confirm thol Ihey have referred lo the guidance contained in the Chority Commission's geneiol guidonce on public benelif when reviewing the Trusl's aims ond objectives and in plonning future activities. The Islomic Foundotion is dedicated to the service of knowledge through r8seorch. educolion. Iroining. and publishing with the aim ol promoting (J more Informed understanding of the 151amic loith, both amongst Muslims and others, ond losler beller ielolions belween Muslim5 ond pec>ple ol other faiths and nor)e. PvblÉ¢ benelll The Islamic Foundation Is working to provide the oeneTal public with o beller understanding ol the Islamic faith, both amongsl Muslims and non-muslims. ond losler better relotions between Muslims ond people ol other loiths ond none. The tnjstees conlim that they hove complied with the requirem6nls of section 17 01 the Chcfrilies Act 2011 to have due regard lo the public ben&lil guidonce published by th& Charity Commission lor Er)glond and Woles. Page 2 THE ISLAMIC FOLINDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 ACHIEVEMENT AND PERFORMANCE Charitable aclivitles Ouiing the year under review the Foundolion moinlained its research, educolion. inler-loilh and publishing activities. We are pleased Ihal Ihe activilies normolised aller the Covid sel b¢Jck. However. the impact ond challenges remained due to rising cogti and reduced funding. We conlinupd to work closely with our diverse ronge of volunleers, well-wishers and partners which helped us lo expond the inslitulion's profile and community services such 0$ Eid feslivol. weekend school and weekend tetreals. Last year. the foundation launched ils research progromme. Ihis progromme wlll locus on community issues bosed on Census 2021 findings, m05ques and youth developmenl. The Foundation continued to develop ond publish book5 Ihrough Kube Publishing. They included ocademic. general, classics ond chlldren's tille5. The Foundolion Iioised with various chorilies and Sponso￿ in relotion lo the distribution ol our books lo poor arKI low-income ¢hildren ond families in UK and obroad. The Muslim Wotld Book Review IMWBRI published 4 issues ol 11$ 42nd ond 43rd volume.11 wos also lounched in the digital lormol on www.mwbr.org.uk. Marklield Conference Centre conlir)ues to provide unique facilities lor the communities from across UK and even Europe. A diverse range ol community groups visited the centre lor their educotionol, sociol and cullurol oclivities. The Foundotion contributed to the edL)colionol and Iroining progrommes of some ol these groups. Our mosque, now a regislered ploce ol worship, is used exlensively by many visitors. especially on Friday. The Islami¢ Foundation Library provided on ellective and ellicienl inlomalion setvice lo all ils users. Tr)ese included students ol BA. MA. MPhil and PhD studying ol the bAarklield Inslilule ol Higher Education IMIHEI, os well 09 long and short-term visiting researchers. and members ol acodemic and non-acodemic stoll al the Foundation. During Ihe yeor. the library added over 300 new books in Arabic. English and Urdu. Ihe svbjecl areos include Ihe Qur'on, Seero, Islomic Bon￿n9 & Finonce, Interlailh studies and pluralism, Islomic Low and Philosophy, history and culture of Iduslims in Europe, porticvlody British Muslims. The librory hos also been exploring new electronic resources. The truslees participated ond contributed lo various organi501ions aclively and conducled Seclu￿ s and training online. FINANCIAL REVIEW Flnanclal poslllon At the end ol the linonciol yeor the totol funds stood at £4,019,14412021: £4.￿S.124}. The trustees be11eve this to be a sound fooling to irivesl in the future ol the choritv. The opeTaling lumover wos £528.36412021- £457,314) against expenditure of £514,34412021- %494.0121. A5 a chorily the public has the assurance thol all funds generoled musl be applied lor the purposes ol the chaiily's objectives and oclivilies. ￿ o chorily we enjoy lax exemption on our choriloble octivilie5 ond our investment income ond goins provided these are opplied lor our chariloble aims. The linoncial benefits we receive Irom Ihe lax exemptions are all opplied lo help mointain our objective5, Reserves pollcy ReseNes ore mainloined al o level thal enabled the Charity to monage financial risk and short-term income vo1otilily. They allow the Charily lo sustoir) optimal levels ol expenditure. ensvrino that linanciol commitments can be mel os they loll due. Our ieietves policy allocates money from unreslricled fund balances. which ore not invested in Iix8d assels. held in our 60 and 120 days, reserves occounls. The r8serves amount w05 capped ot £50,000 lor the linonciol year ended 31 sl December 2022 which is meonl lo be used in bridging any po55ible deloys in receiving donalions or monoging paymenls in arrears. The peiiod ol delay has been defined a5 a minimum ol o three months budgeted trading oclivity. fhis policy is however reviewed on six months bo515 Iwice in a linonciol period. as circumslonce5 evolve ond chan9e during the course ol the next linoncial year. molching changeg fo the onnual budgel. Poge 3 THE ISLAMIC FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 FUTURE PLANS Besides the income from inveslmenls, revenue from the hiring ol thè conference lacililies, lees from educolional programmes, grants from nalionol and inlernolional chorilable loundalions remain the mojor sources ol our finance. The Foundolion hos alwoys had o policy ol buildir)g our endowment fund based on property inveslmenl. 11 has perfo￿e￿ well to dale. In the post Pondemic o mojor objeclive lor the future is lo use digilol marketing lor Ivndraising lo expond our donor base. Thi5 will allow us to further expond chorftable activities such as educalionol progrommes lor the youth. mosque leodership the library servlces ond the ocodemic aclivilieg such 0$ research seminars. publication5 and journals. We ore also close lo securing the planning consent lo modernise our conference locililieg to widen the user base lo prolessionol ond higher educalional oclivilies. Ihus, enhancing the revenue. STRUCTURE. GOVERNANCE AND MANAGEMENT Governing documenl me Islamic Foundotion is registered os a Choritoble Incorporated Organisalion ICIOI, number 1160353, ond is considered to have no liability tro laxotion on il% income. Recrullment ond appolnlmenl ol new Iruslees The election ol the Iruslees is lormalised in the conslilulion. Organisallonal 5fruclure The Trustees who have ultimole responsibility lor mointenonce ol the Islamic Foundation and its policy ond strotegic dlre.clion. have delegated the day-lo-day monagement of the Foundation lo ils Director Generol, who operates through Senior Executive Committee ISECI consisting ol both selected Iruslee5 and the d6partmenlol and project heod5. The co-ordinolion ol the monagement ol the Islamic Foundotion on behalf ol the Iruslees IS the responsibility ol the Secrelary ol the Foundation. The Trustees maintoin contocl with and porticipotion in the decision-makir)g process ol Ihe Foundotion through the Administrotive Commillee which meet5 quartedy ond ils sub committees. when formed. meet os required. Inductlon and tralnlng of new Iru$lees Trustees are oppoinled with no lirnit to their tenure and os ond when the board requires. The appointment ol Trustees is preceded by consullolion lo ensure they are awore ol the oims and objectives ol the charity and their responsibililles. They are prowded regular updotes on the regulolions and their legal and inslilulionol duties. Page 4 THE ISLAMIC FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 37 DECEMBER 2022 STRucfuRE, GOVERNANCE AND MANAGEMENT Risk management The tiuslee5 hove a duly lo identify and review the risks to which the chaiily 15 exposed and lo ensure oppropriale conlrols are in ploce lo provide reasonable ossuronce ogoinsl Iroud and errol. Oblecllves and pollcles The chorily's activities expose il lo o number ol linanciol risks including credil risk, cash flow risk and liquidity rlsk. The use ol linanclal derivolives is governed by the chority'g policies approved by the boord ol Iruslees, which provide wrillen principles on the use ol linanciol derivatives lo manage these risks. The charity does not use derivalive linoncial inslrumenls lor speculative purposes. The charily'g ocliiqties expose it primorily lo the linoncial risks ol changes in foreign currency exchange ratP.5 and interest roles. The charity uses foreign exchange lorword conlTOCts ond interest rate swap contrac15 to hedge these exposures. Interest becsring assets and liabilities ole held at lixed rate lo ensure certointy ol cash flows. Credll rtsk The charity's principal linanciol assets ore bank bolonces and cosh, Irade and other receivables, and inveslmenls. The chorily's credit risk is piimorily allributable lo its trode receivobles. The omounls piesenled in Ihe balance sheet are net ol allowance5 lor doubllul receivobles. An allowonce lor impairment is made where ther8 is idenlilied loss event which. based on previous experience, is evidence ol a reduction in the recoverability ol the cash flows. The credil risk on liquid funds ond derivative linorTrcial instruments is limited because Ihe counterparties ore bonks with high credil-ralings assigned by internalionol credil-raling agencies. The chorily has no significant concentration ol credit risk. with expogure spread over a lorge number ol counterporties and customers. Llquldlty rlsk In order to maintain liquidity to ensure that sullicienl funds are ovailoble lor ongoing operations ond future developments. the chority uses o mixlLJre ol long-lerm and short-lerm debt finance. Further details regording liquidity risk can be found in the Slalemenl ol occounling policies in the linonciol stalemenls. ST ATEMENT OF TRUSTEES, RESPONSIBILITIES The Irustges ore responsible lor preporing the Report ol the Trustees ond the financial stotements in accordonce with appllcoble law ond United Kingdom Accounting Slondards Iunited Kingdom Generally Accepted Ac¢ounling Procticel. The law applicable lo charities in England ar)d Wales. the Charilies Act 201 I, Chorily (Accounls and Reportsl Roqulolions 2008 ond the provisions ol the trust deed requires the Iruslees lo prepore linoncial slalemenls ioi each lir)ancial yeor which give a true and lair view ol the stole ol allairs ol the chority ond ol the incoming resources and opplicalion ol resource5, including the income and expenditure. ol the chority lor Ihot period. In PTeparing Ih05e linonciol slot¢ment5, Ihe Iruslees ole required to select suitable accounting pollcies ond then apply them con515tently.' ob5etve Ihe methods and principles in the Charity SORP.. moke judgements ond eslimales that ore reosonoble ond prudent- stole whether applicable occountlng standards have been lollowed, subject to ony molerial deportures disclosed ond exploined in the financial slolemenls., prepare the linanciol glalemenls on the going concem bosis unless it is inoppropriale to presume Ihol the charity will continue in business. Ptsge 5 THE ISLAMIC FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 STATEMENT OF TRUSTEES, RESPONSIBILIIIES - conllnued The Irustees ore respor)sible lor keeping propor accounting records which disclose wifh reasonable occurocy al any time the linoncial position ol the chorily and lo enoble them lo ernsvre thot the linoncial stolemenls comply wilh the Chorilies Act 2011. lh8 Charity (Accounts ond Repoils) Regulolions 1008 and the provisions ol the trust deed. Ihey are olso responsible lor soleguording the ossels ol the choiity and hence lor taking reasonoble gtep5 lor the prevention and detection ol Iruud and other Irregularities. Approved by order ol the board ol trustees on 27 October 2023 ond signed on its behalf by-. Dr N4 Ahson- Trustee Poge 6 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ISLAMIC FOUNDATION Oplnlon We hqve audited Ihe linanciol slalemer)Is ol The Islamic Foundation (the 'challty'l lor the year ended 31 December 2022 which comprise Ihe Stotemenl ol Finoncial Activities, the Balance Sheet, the Cash Flow stotemenl and noles lo the linanciol 51olements, including o summary ol signilicanl accounting policies. The financial reporting Iramework that ho5 been applied in their preparolion is applicable low ond United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. In our opinion the linoncial stotemenls.. give o true and foir view of the glale ol Ihe charily's allairs as at 31 December 2022 and ol Ils incoming resources ond application ol resources, for Ihe year then ended., have been properfy prepored in accordance with Unlled Kingdom Generally Accepted Accounting Proclice., llnd have be8n prepared in accordance with the requiremenls ol the Charities Act 2011. Bas15 lor oplnlon We conducted our oudit in accordonce wlth Internotlonal Stondardl on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those slandords are further described in the Auditors. responsibilities lor the audit ol the financial slalemenls section ol our ieport. We ore independent ol Ihe charity in occordonce with the elhicol requirements that ore relevonl lo our oudil ol the linanciol stolemenls In the UK, including Ihe FRC'S Ethical Slondard, ond we have lullilled our other elhicol responsibilities in accordance with these requirements. We believe that the oudil evidence we hove obtained 15 sullicient and appropriate lo provide a basis lor our opinion. Contluslons Telallng lo golng concern In auditing the linoncial stolemenls. we have concluded thot the trustees, use ol the going concern basis ol accounling in th8 preparatiorn ol the linoncial statemenls is oppropriate. Based on the work we hove performed. we hove not idenlilied any material uncertoinlies reloling lo events or conditions thol. individuolly or collectively, moy cast significant doubl on the charily's ability lo continue as a going concem loi o period ol ol leosl twelve months from when the linoncial slalements ale oulhorised for issue. Our responsibilities and the responsibilities ol the tpJstees with respect lo going concem are described in the relevanl sections ol this report. Other Inlormallon The trLJslees are responsible foi the other inlormolion. The other information comprises the information included in the Annual Report. olhei than the financial stolement5 ond our Report ol Ihe Independent Auditors Ihereon. Our opinion on the financial slalements does not cover the other information and. except to the extent otherwise explicitly sloled in our report, we do not express ony form ol assurance conclusion Ihereon. In connection with our oudit of the linanciol %lolemenls. our responsibility is lo read the other information ond. in doing so, consider whether Ihe other information is maleriolly incon51$1enl with the financial 5tolemenls or our knowledge obtoined in the audit or otherwise oppears lo be moterially missloted. If we identify such molerial inconsistencies or apparent maleriol misstolemenls, we are iequirod to detenmine wh8lhei this gives rise lo a molerial misslotemenl in the linanciol 51alemenls themselves. 11. bosed on the work we have performed. we conclude Ihol there is o moleriol rnisslolemenl ol thi5 other information. we are required to report Ihot loct. We have nothing lo report in this regord. Mollers on whlch we aye requlred lo report by excepllon We have nothing lo report in respect ol the lollowSng matters where the Charities IAccount5 and Reports) Regulation5 2m8 requires us lo report lo you il, in our opinion.. the inlormotion given in the Report ol the Trustees is incon5151enl in ony material respect with Ihe linoncial slalemenls.. or sullicient accounling records hove not been kept., or the linanciol slalemenls ore not In agreement with the accounting records and returns., or we have not received oll Ihe information and explanations we require lor our audit. Page 7 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ISLAMIC FOUNDATION Responslbllille5 01 trustee5 As exploined more lully in the Stalemenl ol Truslees. Responsibilities, Ihe trustees a￿ responsible lor the preparation ol the linoncial slotements which oive a true and lair view, ond lor Such inlernol control as the Iruslees determine is necessory to enable Ihe preporotion ol linanciol statements that are free from molerial misslatement, whether due lo fraud or error. In preparing the Ilnonciol statements, the trustees ore responsible lor assessing the chority's obility to contir)ue as o going concem, disclosing, as applicable, motters related lo going concem and using the going concern basis ol accounting L)nless the trustees either intend to liquidale the charily QT lo cease operolions, or hove no reolistic allernolive bul to do so. Our respon51bllllles far the avdll of Ihe linonclal slolements We have been oppoinled os auditors under Section 144 01 the Charities Act 2011 and report in occordonce wilh the Act (Tnd relevant regulolions made or having ellecl Ihereunder. Our objectlves ore lo obtain reasonab16 assurance oboul whether the financial slolemenls 0$ o whole are free from moleriol misstotemenl, whether due to fraud or error. ond to issue o Report ol lh6 Independent Auditors that includes our opinion. Reasonable assuronce is o high level of ossuronce, bul is nol a guoronlee that on oudit conducted in occordonce with ISAS IUKI will alwoys detect o Mate￿01 misslalemenl when il exists. Misstat@ment5 can orige from Iroud or error ond are considered material il. individually or In the aggregate. they could reasonobly be expected lo influence the economic decisions ol users token on Ihe bosi5 01 these linonciol stotemenls. The extenl lo which our procedures ore capable ol delecling irregulorities, including Iroud is detailed below.. We obloin6d an understanding of the legol and regulatory Iromeworks Ihol are appllcoble to the charity ond determined that the most signilicont frameworks which are directly relevant 10 Specific ossertions in the linanciol stolemenls ore those that relole lo the reporting Iromework. Wo understood how the chorily 15 complying with Ihose frameworks by moking enquiries ol mqnogemenl ond those responsible lor legol ond complionce procedures. We cowoboroted our enquiries through review ol boord minulas and discussions with those charged with govemonce. We assessed the susceplibilily of the charity's financial statements lo mal&riol misslotemenl. including how traud might occur. by discussion with monogemenl Iiom voriov5 parts ol the busine5$ to understond where Ihey considered there wa5 a susceplibilily to fraud. We considered the procedures and conlrols that the charity hos established lo prevernl and delecl Iroud. and how these are monitored by managemenl. and also ony enhanced risk foclor$ such os performance largels. Based on our underslonding. we designed oui audil procedure5 10 identify any non-compliance wilh lows and regul(5tions identified in the parogroph5 above. We olso performed audit work over the risk ol management override of controls. including lesting of journal entries ond other odjuslment5 lor appropriateness, evaluoling the bv5iness rotionole ol signiliconl transactions outside the nomial course of business ond reviewing occounling eslimoles lor bios. Because ol the inherent limilolion5 of an oudil, Ihere is a risk thot we will nol delect oll irregulalllies. including those leoding lo o materiol misstatement in Ihe linonciol slalemenls or non-complionce with reoulotion. This risk increases Ihe more that compliance with a low or regulolion 15 removed from the events and tronsactions rellerted in Ihe linanciol statements. os we will be less likely lo become awore ol inslonces ol non-compliance. The risk is also gr8ater regording itTegulorilies occurring due to Iroud rother than etTor, as fraud involves intentional concealment, forgery. collusion. omission or Mi5representalion. A further description ol our responsibilities fu the audit ol the financial slalemen15 is located on the Financial Reporting Council's website ol www.Irc.org.uk/oudilorsresponsibililie5. This descrlption forms part of our Report ol the Independent Auditors. Page 8 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ISLAMIC FOUNDATION Use ol our rèport This report is mode solely lo the charity's Irvstees. os a body, in occordance with Part 4 01 the Charities (Accounts ond Reporlsl Regulolions 2ffl8. Our oudil woth has been undertaken so that we might slate lo the chorily's Iruslees those mallers we are iequired lo state lo them in an ouditors, report and lor no other purpose. To the lullesl exlenl permilled by law, we do not accept or assume responsibility lo anyone other thon the chority and Ihe charily's trvstees as a body. lor OLSr audit work. lor Ihis report, or lor the opinions we hove formed. TC Group 31 High View Close Homilton Ollice Park Leicesler Lelcestershire LE4 9LJ Dole.. 30.10.2023 Page 9 THE ISLAMIC FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 2022 Tolol funds 2021 Total funds Unreslricled fund Reslricled funds Notes INCOME AND ENDOWMENTS FROM Donations ond leoocies 150,988 19,100 170,088 109,205 Chtsritable acllvllles Hire ol Conference facilities Project lunding Makloblmadressa 115,989 4,940 8,420 115.989 4,940 8.420 43.806 1.547 Inve51menl income Other income 193,491 35.436 193.491 35,430 173,902 128,854 Tota5 509.264 19,1(X) 528,364 457.314 EXPENDITURE ON Raising funds 12.606 12,606 6.960 Charilable acllvllles Donolions Generol costs 1,153 221.388 16.064 17.217 221,388 27,0(K) 192.012 Other 263,133 263,133 268.040 Totol 498.280 16,064 514,344 494.012 NET INCOME/(EXPENDITUREI franslers belween funds 10,984 1.571 3,036 14.020 136,6981 20 Nèl movement In funds 12.555 1.465 14,020 126,6981 RECONCILIATION OF FUNDS Total luncls brought forward 3.958,918 46.206 4,005,124 4,041,822 TOTAI FUNDS CARRIED FORWARD 3.971.473 47.671 4,019,144 4.IX)5,124 The notes form part of these lir)onciol slatemenls Poge 10 THE ISLAMIC FOUNDATION BALANCE SHEET 31 DECEMBER 2022 2022 2021 Notes FIXED ASSETS Tongible o55els Inve51rnenl property 2.160,118 1,656,701 2.203,754 1,656.701 13 3.816,819 3.860,455 CLbRRkNT ASSETS Debtors Cosh ol bank ond in hand 234.149 209,876 201.780 221,923 444.025 423.703 CREDITORS Amounts falling due within one year 1207,5331 1234.8671 NEf CURRENT ASSETS 236.492 188.836 TOTAL ASSETS LESS CURRENT LIABIIITIES 4.053.311 4.049,291 CREDITORS Amounts lo11ing due aller more thon one year 134,1671 144.1671 NET ASSEIS 4.019.144 4,005,124 FUNDS Unreslricled funds Restricted funds 20 3.971,473 47,671 3.958,918 46,206 TOTAL FUNDS 4,019.144 4,005.124 The linanciol slotements were approved by the Boord ol Twslees and avlhorised lor issue on 27 October 2023 and were signed on ils behalf by.. l Ahsan- Truslee The noles form part ol these linanciol slalements Pagell THE ISLAMIC FOLINDATION CASH FLOW SIAYEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 2022 021 Noles Cash flows Irorn operaling a¢livllles Cosh generated from opeiotions Interest poid 12,2511 17601 145,707 14.1631 Net cash (used inl/provided by operating activities 141,544 Cash flows fiom 5nvesting Oc1t￿lIeS Purchase ol tangible fixed a55els Interesl received 15451 994 Nel cash (used inllprovided by investing octivilies 13,2031 449 Cash flows from Ilnanelng oclivilles New loans in year Loon ropayments in yeor 50,(K)O 1107.6201 (S.8￿1 Net cosh used in financing oclivities 15,8331 157,6201 Change In cash and Cash equivalents In the leportlng perlod Cash ond eash equlvalenls at the beginnlng ol the ieportlng perlod 112,0471 84,373 221.923 137,550 Cash ond cash equivolenls al Ihe end ol the rèportlng period 209.876 221.923 The notes form part ol thes& lin(Jnciol statements Page 12 THE ISLAMIC FOUNDATION NOTES TO THE CASH FLOW STATEMENT FOR TRE YEAR ENDED 31 DECEMBER 2022 RECONCILIATION OF NET INCOME/{EXPENDITURE) 10 NET CASH FLOW FROM OPERATING ACTIVITIES 2022 2021 Net srtcomel{expendlture) for the reportlng perfod las per the Statement ol Flnonclul Acllvltiesl Adluslmenls IOT: Depreciation charges Interest received nlerest paid Ilncreaselldecrease in debtors (Decreasellincreose in creditors 14,020 136,6981 48.247 11.4081 760 132.3691 131.5011 49.189 19941 4.163 102.623 27.424 Nel cg5h (used In)/provided by operatlons 12,2511 145,707 ANALYSIS OF CHANGES IN NET FUNDS Al 1.1.22 Cash flow Al 31.12.22 Net cash Cosh ol bank ond in hond 221.923 112.0471 09.876 221,923 112.0471 9,876 Debt Debls lolling due within l year Debls lolling due after l yeor 15.8331 144,1671 14.1671 i o,o(x) 110.0001 134.1671 150.0001 5,833 144,1671 Tolal 171.923 16.2141 165.709 The noles form port ol these linanciol slalements Poge 13 THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAI STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES Basls ol preparlng thè linancial slatemenl$ The linanciol stalemenls ol the charily, which is a public benefit ernlily under FRS 102, have been prepared in occordance with the Chorilies SORP IFRS 1021 'Accounling and Reporting by Chorilies.. Stalemenl ol Recommended Proclice appli¢oble lo charities preporing their occounls in occordonce with Ihs ￿nancIal Reporting Slandord opplicable in the UK and Republic ol Irelond IFRS 1021 lelleclive l January 20191,. Financial Reporting Slondord 102 'The Finoncial Reporting Slondard opplicoble in the UK ond Republic of Ireland. and the Chorilies Act 2011. The linanciol 51alements hove been prepoied under the hisloricol cost convention. Going concèm The accounts hove been prepored on a going concern basis. The Trustees consider Ihat there ore no molerial uncertainlies regarding the Charity's obility lo continue as a going concern. The Trustees are ol the opinion that the Chority will have occess lo sullicient lunds lo enoble it operole lor al leosl one year Irom the signing ol the balance sheet. Incomè All income 15 recoonised In the Sfalement ol Financial Activities once the charity has enlillemenl lo Ihe funds, il is probable Ihal the income will be roceived and the amount con be measured reliablv. Voluntary income including donotions, gifts, legacies ond grants that provide core funding or ore of o general nature Is recognised when the chority has entillemenl lo the income. il is proboble tho* the income will be received ond Ihe omount can be meosured with sullicienl reliobilily. Donation5 and legacies ore recognised on o receivable bos15 when receipl is probable ond the omounl can be reliably measured. Income from the hire ol the charity's *acililie5 is recognised on a receivable basis Inveslment income is is recognised on a receivable bosis Expenditure Liabilities are recognised as expenditure Os 500n os there 15 0 legal or constructive obligation commilling the charity lo Ihol expenditure, it is probable thol o Ironsler of economic benefits will be required in 5elllemenl ond the omounl ol the obligalion can be measured reliably. Expenditure is occounled lor on an occruals basis and has been c10$5ilied under heading5 that oggregtste all cost related lo the category. Where costs cannot be directly otlributed lo particular headings they have been allocated to activities on a bosis consislenl with the use ol resources. Tanglble Ilxèd asse15 Deprecialion 15 provided al the following onnual rates in order lo write off eoch osset over ils eslimoled useful life. Freehold properly Fixture5 and liltings Motor vehicles Compulerequipment 2% on reducing balanco IO% on reducing balonce 25% on reducing balonce 25% on cost Investment property Inveslmenl property is shown ot m05t recent valuotion. Any oggregalo sU￿lUS or delicil 0ri5ing from changes in loir value 15 re¢ognisecJ in the Statement ol Finonciol Aclivilies. Taxollon The charity is exemptr from lox on ils chorilable oclivilies. Page 14 continued... THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAI STATEMENTS contlnved FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES - conllnued Fund accounllng Unrestricted funds can be used in occordance with Ihe charitable objectives ot the discrelion ol the Iruslees. Reslri¢led funds con only be used for particular restricted purpose5 wilhin the objects ol the chorily. Reslriclion5 arise when specified by the donor or when funds ore raised lor porticular restricted purpose5. Further explanolion ol the nalure and purpose ol each fund is included in the notes to the financial slolements. Pènslon ¢osls und other post-retlremenl benellls The charity operates a defined conlribulion pension scheme. Contributions payable lo the charity's pension scheme ore charged lo the Stolemenl ol Finoncial Activities in the period to which they relate. DONATIONS AND LEGACIES 2022 2021 Donalions 170,088 109,205 INVESIMENT INCOME 2022 2021 Rents received Deposit occount inleresl 192,083 1.408 172,908 994 193,491 173,902 INCOME FROM CHARITABLE ACTIVITIES 2022 2021 Aclivlly Hire ol conference Hire ol Conference locililies Project funding Moktob/Madressa 115,989 4.940 8,420 43,806 1,547 Piojecl lunding Moklob income 129,349 45,353 OTHER INCOME 2022 2021 Service ¢hargos receivable Olher income COVID- government gronts 18,600 16,836 19,660 101,891 35,436 128,854 Poge 15 continued. THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAL STAfEMENTS conlinued FOR THE YEAR ENDED 31 DECEMBER 2022 RAISING FUNDS other Iradlng ocllv511es 2022 2021 Property management expenses Madressa costs 7,566 5.040 6.960 12.606 6,960 CHARITABLE ACTIVITIES COSTS Support Costs lgee note 81 Direcl C0515 Tola15 Donolions General costs 17.217 213.888 17.217 221.388 7,500 231,105 7.500 238,605 SUPPORY COSTS Governance cos15 General costs 7.5(K> TRUSTEES. REMUNERATION AND BENEFITS There were no tW51ees' remunerolion or other benefits lor the year ended 31 December 2022 nor lor the yeor ended 31 December 2021. Trustees, expense5 There were no Iruslees. expenses paid lor the yeor ended 31 December 2022 nor for the yeor ended 31 December 2a21. 10. STAFF COSTS 2022 2021 Wages and solaNes Social security costs Olhei pension cosls 198,992 11,530 3.366 173.734 8,975 2,453 213.888 185,162 The average monthly number of employees during the year wos as follows.. Adminislrotion ond governonce Other 2022 2021 10 No employees received emoluments in excess of £60.(￿). Page 16 conlinued.,. THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOX THE YEAR ENDED 31 DECEMBER 2022 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted lund Reslricled funds Total lund5 INCOME AND ENDOWMENTS FROM Donations and legocies 81.190 28.015 109.205 Charitable acllvlltes Hire of Conference locililies Project funding 43,806 1.547 43,806 1,547 Investment income Other income 173.902 128,854 173,902 128.854 Tolal 429,299 28,015 457,314 EXPENDITURE ON Raising funds 6,960 6,960 Charitoble acllvllle5 Donations General costs 27.000 27,￿0 192.012 192,012 Other 268.007 33 268,040 Tolol 466.979 27.033 494,012 NET INCOMtI(EXPENDITLIRE} Transfers be￿een funds 137,6801 12241 982 224 136,6981 Nel movement In funds 137,9041 1,206 136.6981 RECONCILIATION OF FUNDS Total funds brought lorword 3.996.822 45,000 4.041,822 TOTAL FUNDS CARRIED FORWARD 3,958,918 46,206 4,005,124 Page 17 conlinued... THE ISLAMIC FOLfNOATION NOTES TO THE FINANCIAL STATEMENTS . confinved FOR THE YEAR ENDED 31 DECEMBER 2022 12. TANGIBLE FIXED ASSETS Fixlur6S and Freehold property Motor vehicles Computer equipment Tolals COST At l Januory 2022 Additions 2,341.154 69,634 4.611 249 283 2.411,320 4.611 At 31 December 2022 2,341.154 74,245 249 283 2.415,931 DEPRECIATION Al l Januory 2022 Charge lor year 183,565 43,151 23,590 5,066 128 283 207.566 48,247 Al 31 December 2022 226,716 28.656 158 283 255,813 NET BOOK VALUE Al 31 December 2022 2,114.438 45.589 91 2,160.118 Al 31 December 2021 2.1 $7,589 46.044 2.203,754 INVESTMENT PROPERTY FAIR VALUE Al l Januory 2022 and 31 December 2022 1.656.701 NET 800K VALUE Al 31 December 2022 1,656,701 At 31 De¢ember2021 1.656.701 Inveslmenl properties were reviewed by the trustees ol the yeor end taking into account their knowledge ol local morket conditions ond the condition ol the properties owned by the Irusl. In their opinion the value shown in the fin(sncial stotements represents a molerially loir volue. DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 14. 2022 2021 Trade debtors Kube Publishing Llmiled Marklield Inslilule ol Higher Educalion Prepaymenls ond accrued income 35,468 83.240 69.687 45,754 53,860 83,140 52.386 12.394 234.149 201,780 Page 18 continued... THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAL STATEMENTS . conllnued FOR THE YEAR ENDED 31 DECEMBER 2022 15. CREDITORS.. AMOUNTS FALIING DUE WITHIN ONE YEAR 2022 2021 Bank loans and overdrafts Isee note 171 TTade creditors Toxalion ond social securily Other creditors 10,000 15,641 4.546 177,346 5.833 41,880 5,739 181.415 ?07.533 234.867 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2022 20?1 Bank loons (see note 171 34.167 44,167 17. LOANS An onalysis of the malurily of loans is given below.. 2022 Amounts lolling due within one yeor on demand.. Bank loon 10.0 5,833 Amounts falling between one and Iwo years.. Bank loon i 0,000 i 0.000 Amounts falling due between two ond live years.. Bonk loon 24,167 30.0(X) Amounts falling due in more thon live yeor5'. Repayable by in51almenls'. Bonk loan 4,167 18. SECURED DEBTS The following secured debts are included within credilots.. 2022 2021 Bonk loan5 44,167 50.0 Bank loons are secured on Ihe ossel lo which they relate. Page 19 continued... THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - conllnued FOR THE YEAR ENDED 31 DECEMBER 2022 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2022 Total funds 2021 Tolal funds Unreslricled fund Restricted funds Fixed ossets Inve5tMen15 Current assets CuThenl liabilities Long lemi liabilities 2.160.118 1.656.701 396,354 1207,5331 134.1671 2,160,118 1,656.701 444.025 1207.5331 134,1671 2,203,754 1,656.701 423.703 1234.8671 144.1671 47,671 3.971,473 47,671 4,019.144 4.(M)S,124 MOVEMENT IN FUNDS Nel movement in funds Tronslers between funds At 31.12.22 Al 1.1.22 Unrestrlcled funds Generol fund 3,958,918 10.984 1,571 3.971,473 Reslrlcled funds Scholarship IF Kenya 46,206 46,206 1,465 3.036 46.206 3.036 47.671 TOTAL FUNDS 4,a05.124 14,020 4,019.144 Nel movement in funds, includecl in the above are as follows.. Incoming resources Resources expended Movement in funds Unresfrlcled Ivnd$ General fund 509,264 1498.2801 10,984 Restrlcted funds IF Kenya 19,1(K) 116.0641 3.036 TofAL FUNDS 528.364 1514.3441 14.020 Poge 20 continued... THE ISLAMIC FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR IHE YEAR ENDED 31 DECEMBER 2022 20. MOVEMENT IN FUNDS - conllnved Comparallves lor movement in funds Nel movement in funds Transfers between funds Al 31 12.21 Al I 1.21 Unreslrlcted Ivnds Gcnerol lund 3.996.822 137,6801 12241 3,958.918 Restrlcted lunds Scholorship IF Kenyo 45,(M)O 45,0(Y) 1,206 982 224 45,1 982 224 46,206 IOTAL FUNDS 4.041.822 136.6981 4,005.124 Comparolive net movem8nl in funds. includ6d in the obove are 05 follows.. Resources expended Incoming resources ovemenl in funds Unreslrlcted Ivnds General fund 429,299 1466,9791 137.6801 Reslrlcled funds IF Kenya 28.015 127.0331 982 TOTAL FUNDS 457.314 1494.0121 136,6981 IF Kenya The fund provides educalionol programmes and courses lo orphans ond schools in Kenya. 21. RELATED PARTY DISCLOSLIRES The Islomic Foundotion IIFI hos Trustees in Common wilh the Morkh'eld Institute ol Highei Education IldlHEI. DuNng the year IF olso received income amounting lo £28,100 12021 £24,4601 from MIHE with respecl lo rent and office expenses. Al the balonce sheet dote the omounl due from MIHE wos £30,15812021- £9,3861. Al the bolonce sheet dole IF wos owed £83,240 by a compony with personnel in common 12021- £83.1401. Al the bolance sheet dale IF owed a trust £1 15.000. this being sel ogoinsl an interest in a property owned by1F. This trust has o trustee ir) common with IF12021- £115.OWI. Al the year end two trustees hove an interest in a pioperly owned by IF, this property was last valued al £800.000. Poge 21 THE ISLAMIC FOUNDATION DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 INCOME AND ENDOWMENTS Donall¢ns and legacles Donations 170.088 109.205 Investment Income Rents received Deposit occounl interest 192,083 1.408 172,908 994 193,491 173,902 Charltable actlvllles Hire ol conference Iqcililies Moklob income Project funding 115,989 8,420 4.940 43.806 1,547 129,349 45,353 other Income Service charges receivable Other income COVID- govemment grants 18.600 16,836 19,660 7,303 101,891 35,436 128.854 Total 5ncoming resources 528.364 457,314 EXPENDITURE Other tradlng acllvllles Property managemenl expenses Madressa cosls 7,566 5.040 6,960 12,606 6,960 Charllable acllvlfles Wages Social security Pensions Donolions paid 198,992 11,530 3,366 17.217 173,734 8,975 2,453 27.000 231.105 212,162 Other Hire ol equiprnent Advertising ond promotion Rates and woter Insurance Light and heof Conied Forward 2,982 58 40,385 9,623 52,302 105,350 2,570 1,350 63,321 11.023 48,248 126.512 This poge does not foim port ol the slalutory financial stol&menls Poge 22 THE ISLAMIC FOUNDATION DETAILED STATEMENT OF FINANCIAL ACTIVITIES f OR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Other Brought forward Molor ond trovel expenses Printing, postage ond slolionery Telephone IT and intemet costs Librory c05tS Repairs and mainlernonce 105.350 1.143 6.349 3.342 126.512 2,301 6,219 4.572 3.552 9.790 18,847 12.078 23.304 F li Cleaning Bank chorge5 Legal and prolossional Financiol operotions Meals and occommodolion Entertainment Freehold property dep'n Fixlures & fillings dep'n Motor vehicle dep'n Bank inleresl Bank loon inlerest 15.379 222 5,495 18,025 21.528 7.585 1,176 7,570 18,000 8,426 138 44,032 5.116 41 43,152 5,065 760 4,162 263.133 268.040 Svpport costs Governance costs Auditors. remuneration 7,5 6,850 Total r&sources expended 514.344 494.012 Nel In¢omellexpendllure} 14,020 136,6981 This page does not form part ol the stalulory linanciol slotomenls Pagts 23