REGISTERED CHARITY NUMBER: 1160383
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 January 2021
for
Rabia Institute CIO
Lindley Adams Limited Chartered Accountants 28 Prescott Street Halifax West Yorkshire HX1 2LG
Rabia Institute CIO
Contents of the Financial Statements for the Year Ended 31 January 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | ||
| Notes to the Financial Statements | 6 | to | 10 |
| Detailed Statement of Financial Activities | 11 |
Rabia Institute CIO
Report of the Trustees
for the Year Ended 31 January 2021
The trustees present their report with the financial statements of the charity for the year ended 31 January 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the charity are the advancement of the Islamic faith in particular the Islamic faith Sunni Hanafi Brevli Sect in Halifax and in particular but not exclusively by:
a) the provision of an educational institute and other buildings and premises ancillary thereto for use by all students of the Rabia Institute
b) the appointment of qualified teachers and support workers
c) the establishment of such societies and groups to support the emotional, mental and wellbeing of service users
d) the provision of early years creche and nursery facilities to support the development of children
e) to arrange exhibitions both nationally and internationally with a view to building relationships with other institutes and scholars and the inviting of scholars to Rabia Institute.
Public benefit
Our objectives are set to reflect our faith and community aims.The trustees review the objectives and activities on an annual basis to ensure they continue to reflect our aims. In carrying out this review the trustees have complied with their duties as detailed in the Charities Act 2011 section 17(5) by reviewing the Charity Commissions general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
Social investments
The charity aims to promote the Islamic faith in Halifax by providing educational facilities.
Volunteers
The charity is grateful for the assistance of 2 volunteers during the year.
ACHIEVEMENT AND PERFORMANCE
The Rabia Institute continues to play a central role in the provision of Islamic education for women living in Halifax and surrounding areas. As students have advanced to a higher level of learning, our teaching format has been tailored for smaller class sizes to accommodate one to one support.
Unfortunately the Institute has been heavily impacted due to the coronavirus pandemic and has been operating on a very minimal basis during the year. The Institute has remained closed for most of the year so there has been no income from tuition fees or book sales but we have received grant income in the form of the coronavirus job retention scheme which has allowed us to furlough staff.
FINANCIAL REVIEW
Financial position
Due to the lack of income from tuition fees and book sales the Institute has recorded an excess of expenditure over income of £6099 for the year (2020 excess of income over expenditure of £23).
Principal funding sources
Due to closures brought about by the pandemic there was no income from tuition fees or the sale of books . The only income during the year was grant income in the form of the coronavirus job retention scheme which has allowed us to furlough staff.
Reserves policy
The total reserves of the charity at 31st January 2021 were £5012 (2020 £1111) Free reserves amounted to £4298 ( 2020 £9945.) There are no restricted reserves held by the charity.
The policy on unrestricted reserves is that these will be accumulated to meet the future needs of the charity.The trustees intend to increase the free reserves over the coming years.
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Rabia Institute CIO
Report of the Trustees
for the Year Ended 31 January 2021
FINANCIAL REVIEW
Going concern
The trustees have considered the position regarding going concern particularly in the light of Covid-19.
Although teaching has been suspended during the pandemic, the Institute is keen to resume classes as soon as it is safe to do so and are looking at a strategy for virtual classes to take place.In the meantime staff have been furloughed under the government scheme which has mitigated the cost to the Institute.The trustees have looked at forecasts and are satisfied that the charity has adequate resources to continue to operate for the foreseeable future.
The Institute has sufficient liquid funds to meet its liabilities as they become due and expenditure will not be authorised unless sufficient funds are in place.For these reasons the trustees continue to adopt the going concern basis for preparing these financial statements.
FUTURE PLANS
The Institute is keen to resume classes as soon as it is safe to do so and are looking at a strategy for virtual classes to take place. Moving forward we seek to further strengthen ourselves as the primary provider of Islamic education to females locally, especially to those who would ordinarily find it difficult to access such learning.
Circumstances permitting we are also keen to develop the Institute's extra curricular offerings based on insight and suggestions from current students.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is a charitable incorporated organisation and is controlled by its governing document, its constitution which was adopted on 4th February 2015.The organisation was recognised as a charity on 9th February 2015.
Recruitment and appointment of new trustees
There must be a minimum of three and a maximum of six trustees and apart from the first charity trustees , every trustee must be appointed by a resolution passed at a properly convened meeting of the charity trustees.
In selecting individuals for appointment as charity trustees, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
Organisational structure
The day to day management of the charity is undertaken by the trustees who make all the decisions regarding the operation of the charity.
Induction and training of new trustees
A policy is in place for inducting new trustees and training sessions will be given to new trustees to familiarise themselves with the charity and their obligations.
Key management remuneration
Remuneration of staff is governed by market rates.
Related parties
The only related parties are the trustees and no trustee is remunerated or has any benefit in kind.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure compliance with all legislation. External risks to funding are monitored to ensure action can be taken on a timely basis to diversify sources of income and cut costs if required.
There are additional risks involved with Covid-19 especially in regard to safeguarding and the trustees are following government guidance and suspended teaching during the lockdown periods.They have also taken advantage of the government furlough scheme to cut costs during the pandemic.
These procedures are periodical reviewed to ensure they still meet the needs of the charity.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number 1160383
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Rabia Institute CIO
Report of the Trustees
for the Year Ended 31 January 2021
Principal address
16 Milton Place Halifax West Yorkshire HX1 5EW
Trustees
A Hamid A Ahmed R Aziz
Accountants
Lindley Adams Limited Chartered Accountants 28 Prescott Street Halifax West Yorkshire HX1 2LG
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 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 14 April 2022 and signed on its behalf by:
A Hamid - Trustee
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Rabia Institute CIO
Statement of Financial Activities
for the Year Ended 31 January 2021
| 31.1.21 | 31.1.20 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Charitable activities | 3 | ||
| Charitable | 2,007 | - | |
| Other trading activities | 2 | - | 7,710 |
| Total | 2,007 | 7,710 | |
| EXPENDITURE ON | |||
| Raising funds | 6,632 | 6,302 | |
| Charitable activities | |||
| Charitable | 1,474 | 1,385 | |
| Total | 8,106 | 7,687 | |
| NET INCOME/(EXPENDITURE) | (6,099) | 23 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 11,111 | 11,088 | |
| TOTAL FUNDS CARRIED FORWARD | 5,012 | 11,111 | |
| CONTINUING OPERATIONS |
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 4
Rabia Institute CIO
Balance Sheet
31 January 2021
| 31.1.21 | 31.1.20 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Tangible assets | 7 | 714 | 1,166 |
| CURRENT ASSETS | |||
| Stocks | 8 | 700 | 700 |
| Debtors | 9 | 526 | - |
| Cash at bank and in hand | 3,708 | 9,811 | |
| 4,934 | 10,511 | ||
| CREDITORS | |||
| Amounts falling due within one year | 10 | (636) | (566) |
| NET CURRENT ASSETS | 4,298 | 9,945 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 5,012 | 11,111 | |
| NET ASSETS | 5,012 | 11,111 | |
| FUNDS | 11 | ||
| Unrestricted funds | 5,012 | 11,111 | |
| TOTAL FUNDS | 5,012 | 11,111 |
The financial statements were approved by the Board of Trustees and authorised for issue on 14 April 2022 and were signed on its behalf by:
A Hamid - Trustee
The notes form part of these financial statements
Page 5
Rabia Institute CIO
Notes to the Financial Statements
for the Year Ended 31 January 2021
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.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance Computer equipment - 20% on cost
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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.
At present there are no restricted funds.
Financial Instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Going Concern
The trustees have considered the position regarding going concern particularly in the light of Covid-19.
Although teaching has been suspended during the pandemic, the Institute is keen to resume classes as soon as it is safe to do so and are looking at a strategy for virtual classes to take place.In the meantime staff have been furloughed under the government scheme which has mitigated the cost to the Institute.The trustees have looked at forecasts and are satisfied that the charity has adequate resources to continue to operate for the foreseeable future.
The Institute has sufficient liquid funds to meet its liabilities as they become due and expenditure will not be authorised unless sufficient funds are in place.For these reasons the trustees continue to adopt the going concern basis for preparing these financial statements.
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continued...
Rabia Institute CIO
Notes to the Financial Statements - continued
for the Year Ended 31 January 2021
1. ACCOUNTING POLICIES - continued
Grants
Government grants and third party contributions and donations are recognised as due to the charity when there is reasonable assurance that the charity will comply with any conditions attached to the payments and that the grants or contributions will be received.
Grants recognised as income are presented separately in the notes to the accounts.
2. OTHER TRADING ACTIVITIES
3.
| 31.1.21 | 31.1.20 | ||
|---|---|---|---|
| £ | £ | ||
| Tuition fees | - | 6,750 | |
| Book sales | - | 960 | |
| - | 7,710 | ||
| INCOME FROM CHARITABLE ACTIVITIES | |||
| 31.1.21 | 31.1.20 | ||
| Activity | £ | £ | |
| Grants | Charitable | 2,007 | - |
During the year the charity received grants of £2007 from the government in respect of the Coronavirus job retention scheme to support the charity to furlough staff.The grant is unconditional and has all been recognised as income in the financial statements for the current year.
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 January 2021 nor for the year ended 31 January 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 January 2021 nor for the year ended 31 January 2020.
5.
STAFF COSTS
| 31.1.21 | 31.1.20 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 6,632 | 4,944 |
| 6,632 | 4,944 | |
| The average monthly number of employees during the year was as follows: | ||
| 31.1.21 | 31.1.20 | |
| Support staff | 3 | 4 |
No employees received emoluments in excess of £60,000.
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continued...
Rabia Institute CIO
Notes to the Financial Statements - continued for the Year Ended 31 January 2021
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |||||
|---|---|---|---|---|---|
| fund | |||||
| £ | |||||
| INCOME AND ENDOWMENTS FROM | |||||
| Other trading activities | 7,710 | ||||
| EXPENDITURE ON | |||||
| Raising funds | 6,302 | ||||
| Charitable activities | |||||
| Charitable | 1,385 | ||||
| Total | 7,687 | ||||
| NET INCOME | 23 | ||||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 11,088 | ||||
| TOTAL FUNDS CARRIED FORWARD | 11,111 | ||||
| 7. | TANGIBLE FIXED ASSETS | ||||
| Fixtures | |||||
| and | Computer | ||||
| fittings | equipment | Totals | |||
| £ | £ | £ | |||
| COST | |||||
| At 1 February 2020 and 31 January 2021 | 1,272 | 1,570 | 2,842 | ||
| DEPRECIATION | |||||
| At 1 February 2020 | 725 | 951 | 1,676 | ||
| Charge for year | 139 | 313 | 452 | ||
| At 31 January 2021 | 864 | 1,264 | 2,128 | ||
| NET BOOK VALUE | |||||
| At 31 January 2021 | 408 | 306 | 714 | ||
| At 31 January 2020 | 547 | 619 | 1,166 |
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Rabia Institute CIO
Notes to the Financial Statements - continued
for the Year Ended 31 January 2021
| 8. | STOCKS | |||
|---|---|---|---|---|
| 31.1.21 | 31.1.20 | |||
| £ | £ | |||
| Stock of books | 700 | 700 | ||
| 9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31.1.21 | 31.1.20 | |||
| £ | £ | |||
| Prepayments and accrued income | 526 | - | ||
| 10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31.1.21 | 31.1.20 | |||
| £ | £ | |||
| Accrued expenses | 636 | 566 | ||
| 11. | MOVEMENT IN FUNDS | |||
| Net | ||||
| movement | At | |||
| At 1.2.20 | in funds | 31.1.21 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 11,111 | (6,099) | 5,012 | |
| TOTAL FUNDS | 11,111 | (6,099) | 5,012 | |
| Net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 2,007 | (8,106) | (6,099) | |
| TOTAL FUNDS | 2,007 | (8,106) | (6,099) | |
| Comparatives for movement in funds | ||||
| Net | ||||
| movement | At | |||
| At 1.2.19 | in funds | 31.1.20 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 11,088 | 23 | 11,111 | |
| TOTAL FUNDS | 11,088 | 23 | 11,111 |
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continued...
Rabia Institute CIO
Notes to the Financial Statements - continued
for the Year Ended 31 January 2021
11. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 7,710 | (7,687) | 23 |
| TOTAL FUNDS | 7,710 | (7,687) | 23 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.2.19 | in funds | 31.1.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 11,088 | (6,076) | 5,012 |
| TOTAL FUNDS | 11,088 | (6,076) | 5,012 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 9,717 | (15,793) | (6,076) |
| TOTAL FUNDS | 9,717 | (15,793) | (6,076) |
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st January 2021 or for the year ended 31st January 2020..
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Rabia Institute CIO
Detailed Statement of Financial Activities
for the Year Ended 31 January 2021
| 31.1.21 | 31.1.20 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Other trading activities | ||
| Tuition fees | - | 6,750 |
| Book sales | - | 960 |
| - | 7,710 | |
| Charitable activities | ||
| Grants | 2,007 | - |
| Total incoming resources | 2,007 | 7,710 |
| EXPENDITURE | ||
| Other trading activities | ||
| Opening stock | 700 | 500 |
| Book purchases | - | 1,558 |
| Wages | 6,632 | 4,944 |
| Closing stock | (700) | (700) |
| 6,632 | 6,302 | |
| Charitable activities | ||
| Postage & stationery | 93 | 272 |
| Computer costs | 118 | 100 |
| Telephone | 120 | - |
| Fixtures and fittings | 139 | 107 |
| Computer equipment | 313 | 314 |
| 783 | 793 | |
| Support costs | ||
| Governance costs | ||
| Accountancy and legal fees | 456 | 456 |
| Payroll costs | 235 | 136 |
| 691 | 592 | |
| Total resources expended | 8,106 | 7,687 |
| Net (expenditure)/income | (6,099) | 23 |
This page does not form part of the statutory financial statements
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