Registered Company Number: 08612172 Registered Charity Number: 1162805
## INTERNATIONAL WAQF FUND
(A company limited by guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1
INTERNATIONAL WAQF FUND (A company limited by guarantee)
||COMPANY INFORMATION|COMPANY INFORMATION|COMPANY INFORMATION|
|---|---|---|---|
|Trustees|Dr Awadh||Salem Awdeh Alasaime|
||Haroun Atallah (appointed 04 January 2021)|||
||Dr Alija Avdukic (appointed 03 April 2021)|||
||Nasereldin||Ahmed Haghamed (resigned 27 January 2021)|
|Company registration number|08612172|||
|Charity registration number|1162805|||
|Registered office|22 Sampson Road North|||
||Birmingham|||
||B11 1BL|||
|Principal office|22 Sampson Road North|||
||Birmingham|||
||B11 1BL|||
|Independent auditor|Grant Thornton UK LLP|||
||103 Colmore Row|||
||Birmingham|||
||B3 3AG|||
|Bankers|Barclays Bank PLC|||
||One Snow||Hill|
||Birmingham|||
||B3 2WN|||
|Solicitors|Bates Wells|||
||10 Queen Street Place|||
||London|||
||EC4R 1BE|||
2
INTERNATIONAL WAQF FUND (A company limited by guarantee)
CONTENTS
||Page|
|---|---|
|Trustees' report|4 - 6|
|Independent auditor's report|7 - 10|
|Statement of financial activities|11|
|Balance sheet|12|
|Cash flow statement|13|
|Notes to the financial statements|14 - 19|
3
INTERNATIONAL WAQF FUND (A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report and the financial statements for the year ended 31 December 2021. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
International Waqf Fund is a company limited by guarantee by its Memorandum and Articles of Association. The company operates as a registered charity and is a subsidiary of Islamic Relief Worldwide (company number 02365572) which also operates as a registered charity. The wider Group includes TIC International Ltd and IR Mauritius. The Group is part of a wider network of affiliated but independent charitable entities around the world which share the “Islamic Relief” name.
## **Organisational structure**
The charitable company is managed by the Board of Trustees, all of whom are Directors of the company, who consider all significant matters such as strategy and major expenditure at their meetings. The Trustees are responsible for the running of the charity delegating day-to-day operations to an Executive Director; Mr Lotfy El Sayed.
## **Recruitment and appointment of Trustees**
Trustees are appointed to the Board by decision from the board of Trustees of the parent Charity Islamic Relief Worldwide.
## **Induction and training of Trustees**
Newly appointed Trustees are introduced to the operations of the Charity by staff and Trustees. They are familiarized with the Charity’s governing documents and their responsibilities as Trustees.
## **Risks and Uncertainties**
The major risks to which International Waqf Fund is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks. The greatest and most immediate risk continued to be the current Covid-19 pandemic which has the potential to be far-reaching both financially and operationally. Steps taken by the Charity to mitigate the effects of the pandemic are firstly to move fundraising, as far as possible, to internet platforms and to facilitate home working for all staff. Risks are reduced by the organisation employing qualified personnel who operate according to written procedures. The Trustees consider the insurance arrangements of the company to be adequate. During the financial year qualifying third party indemnity provision was in place for the benefit of the Directors of the company.
## **Fundraising**
International Waqf Fund adheres to all relevant statutory regulations including the Data Protection Act 2018 and the Charities Act 2011. It strives for best practice in fundraising by adhering to the Code of Fundraising Practice and is committed to the Fundraising Promise. The Charity’s approach mainly utilises Digital Fundraising and does not use third party organisations to fundraise on its behalf. The Charity greatly values the generosity shown by all its donors and supporters .
## **Objectives and activities**
The purpose of the Charity is to operate under Waqf (Islamic endowment) principles, investing donors funds and utilizing the returns for the following charitable objectives –
1. the advancement of education, by means including but not limited to:
- a) establishing, operating, and maintaining schools
- b) providing training, programmes, courses, seminars, classes, workshops, performances, scholarships, bursaries, awards, grants, books, equipment, and educational aids
- c) establishing, maintaining, and operating libraries
- d) establishing, maintaining, and operating educational training centres
2. the relief and prevention of poverty, by means including, but not limited to:
- a) the provision of emergency assistance to assist those people affected by conflict or disaster
- b) the provision of food supplies
4
INTERNATIONAL WAQF FUND (A company limited by guarantee)
## TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
c) the provision of financial, technical, or other support for small business and enterprise development, which are owned by and/or primarily employ poor persons enabling them to generate a sustainable income and be self-sufficient d) initiatives to address unemployment
3. the promotion and preservation of health and well-being and the prevention and treatment of disease, by means including,
but not limited to:
- a) the provision of safe and accessible water supplies and improved sanitation
- b) the relief, the care and welfare of children and in particular orphan children
4. the advancement of sustainable development, by means including, but not limited to:
- a) the preservation, conversation and the protection of the environment and the prudent use of resources
- b) the relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities
c) the promotion of sustainable means of achieving economic growth and regeneration (sustainable development meaning “development which meets the needs of the present without compromising the ability of future generations to meet their own needs”)
5. the promotion of the third sector organisations and the efficiency and effectiveness of third sector organisations (“third sector organisations” means charities, voluntary organisations and other forms of social enterprises established for public and community benefit)
6. the advancement of such other purposes as are exclusively charitable in England and Wales as the Trustees shall determine in their sole discretion.
## **Public Benefit**
The Trustees develop strategic plans to make certain that they deliver maximum public benefit and achieve the strategic objectives which fall under purposes defined by the Charities Act 2011. The Trustees have carefully considered the Charity Commission’s general guidance on public benefit in setting objectives and planning activities.
## **ACHIEVEMENTS, PERFORMANCE AND STRATEGY**
## **Review of activities**
The Trustees are happy to report that during 2021 the International Waqf Fund (IWF) supported 12 new projects. The Charity also continued to sponsor two orphans in Gaza and maintained the microfinance project in Bosnia again in the year. Additionally, IWF completed three projects which were begun in 2020. The projects spanned 17 countries: Afghanistan, Albania, Bangladesh, Bosnia, China, Ethiopia, Indonesia, Jordan, Pakistan, Mali, Myanmar, Nepal, Russia (Chechnya), Somalia, Sri Lanka, Syria and Yemen.
The details of the projects are as follows -
- Greenhouses for income generation in Albania
- Improving rural housing in China
- Supporting Education for students in Bosnia
- Renovating Classrooms for better learning in Pakistan
- Building a new maternity centre for women and children in Mali
- Clean drinking water project in China
- Earthquake response: clean drinking water project in Indonesia
- Alternative Orphan Family Sponsorship Project (ALO) in Bangladesh
- Provided Ramadan food packs in Russia (Chechnya), Sri Lanka, Somalia and Yemen
- 315 Qurbani’s were undertaken, and meat distributed in 3 countries; Afghanistan, Ethiopia & Nepal
- Emergency flood response in Syria
- Continued to use microfinance 2017 funds to empower women through sustainable loans in Bosnia
- Completed 2020 beekeeping and honey production project in Jordan
- Completed 2020 school construction project in Myanmar
- Completed 2020 clean drinking water project in Pakistan
5
INTERNATIONAL WAQF FUND (A company limited by guarantee)
TRUSTEES' REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## **Remuneration Policy**
Pay and remuneration of International Waqf Fund’s key management personnel is set by reference to sector benchmarks. The Charity aims to keep staff pay within the median quartile of benchmarking exercises.
## **Financial Review**
This was the third year of operation of the Charity and as such the Trustees are satisfied with the financial performance of the organization especially since fundraising was hampered by the Covid-19 pandemic. A surplus of £63,038 of Unrestricted was generated in the year as well as a surplus of £332,825 against Endowment Funds. The accumulated balance of the Unrestricted Fund stood at £146,805 at the year end whilst the accumulated balance against the Endowment Fund stood at £951,777. The Trustees are grateful to the donors for their generosity and are in the process of identifying suitable investment opportunities for the endowment funds. This task being made more difficult due to the uncertain economic environment caused by the Covid-19 pandemic.
## **Strategy**
The Charity had to change its fundraising plans due to the Covid-19 pandemic. A marketing strategy to maximize donations as restrictions due to the pandemic are lifted was prepared and approved. IWF is exploring investment opportunities in the UK and abroad which will provide the best returns within the boundaries set in the investment policy.
## **Statement of trustees' responsibilities**
The Trustees (who are also directors of International Waqf Fund for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to ensure that:
• suitable accounting policies are adopted and applied consistently.
- methods and principles of the Charities SORP are followed.
- judgments and accounting estimates are reasonable and prudent.
• that applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
• the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved by the Trustees on 11[th] June 2022 and signed on their behalf by -
Haroun Atallah FRSA FCA Chair of the Board of Trustee
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INTERNATIONAL WAQF FUND (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INTERNATIONAL WAQF FUND
## **Opinion**
We have audited the financial statements of International WAQF Fund (the ‘charitable company’) for the year ended 31 December 2021, which comprise the Statement of Financial Activities and Income & Expenditure, the Balance Sheet, the Cashflow statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources including, its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements section’ of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charitable company’s business model including effects arising from macro-economic uncertainties such as Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
The responsibilities of the trustees with respect to going concern are described in the ‘Responsibilities of trustees for the financial statements’ section of this report.
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INTERNATIONAL WAQF FUND (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTERNATIONAL WAQF FUND (Continued)
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Directors’ Report, prepared for the purposes of company law, included in the Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Strategic Report and the Directors’ Report included in the Annual Report have been prepared in accordance with applicable legal requirements.
## **Matter on which we are required to report under the Companies Act 2006**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included in the Annual Report.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of trustees for the financial statements**
As explained more fully in the Statement of Trustees' Responsibilities set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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INTERNATIONAL WAQF FUND (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT
TO THEMEMBERS OF INTERNATIONAL WAQF FUND (Continued)
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities SORP (FRS 102), the Companies Act 2006, Charities Act 2011, Data Protection Act 2018 and The Charities (Protection and Social Investment) Act 2016;
- We understood how the charitable company is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of board and other minutes and through our legal and professional expenses review;
- We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur and the risk of material override of controls. Audit procedures performed by the engagement team included:
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud
- Challenging assumptions and judgements made by management in its significant accounting policies
- Identifying and testing journal entries, with a focus on unusual journals with specific risk characteristics and large value journals
- Identifying and testing related party transactions
- Inspecting the board and other committee minutes
- Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item
- These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. However, detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as those irregularities that result from fraud may involve collusion, deliberate concealment, forgery or
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INTERNATIONAL WAQF FUND (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INTERNATIONAL WAQF FUND (Continued)
intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it.
- The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
- understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation
- knowledge of the charity sector
- understanding of the legal and regulatory requirements specific to the charitable company including:
- the provisions of the applicable legislation
- guidance issued by the Charity Commission.
- The team communications in respect of potential non-compliance with relevant laws and regulations included the potential for fraud in revenue through manipulation of income and management override of controls; and
- In assessing the potential risks of material misstatement, we obtained an understanding of:
- the charitable company’s operations, including the nature of its income and expenditure and its services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement.
-
- the charitable company’s control environment, including:
- the policies and procedures implemented by the charitable company to ensure compliance with the requirements of the financial reporting framework and relevant laws and regulations
- the adequacy of procedures for authorisation of transactions and review of management accounts
-
- procedures to ensure that possible breaches of law and regulations are appropriately resolved.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
William Devitt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham
16 June 2022
10
INTERNATIONAL WAQF FUND
(A company limited by guarantee)
## STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2021
|Charitable Activities
Total Income
Fundraising
Expenditure
Charitable
Expenditure
Total Expenditure
Surplus/(Deficit) on
Activities
Movement of Funds
Funds Brought Forward
Surplus/(Deficit)in
Year
Funds Carried Forward|Unrestricted
Funds
£
428,925
428,925
207,024
158,863
365,887
63,038
83,767
63,038
146,805|Endowment
Funds
£
332,825
332,825
0
0
0
332,825
618,952
332,825
951,777|Total 2021
£
761,750
761,750
207,024
158,863
365,887
395,863
702,719
395,863
1,098,582|Total 2020
Note
£
730,345
3
730,345
204,772
4
196,104
4
400,876
329,469
373,250
329,469
702,719|
|---|---|---|---|---|
The notes on pages 14 to 19 form part of these financial statements.
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INTERNATIONAL WAQF FUND
(A company limited by guarantee)
## BALANCE SHEET AS AT 31 DECEMBER 2021
|Note
Fixed assets
Tangible assets
8
Current assets
Debtors: amounts falling due within one year
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
Net current assets
Total assets less current liabilities
Net assets
Funds
Unrestricted
Endowment|2021
£
3,311
872,560
247,817
1,120,377
(25,106)
1,095,271
1,098,582
1,098,582
146,805
951,777
1,098,582|2020
£
1,793
665,456
94,358
759,814
(58,888)
700,926
702,719
702,719
83,767
618,952
702,719|
|---|---|---|
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11[th] June 2022.
Haroun Atallah FRSA FCA Chair of the Board of Trustee
The notes on pages 14 to 19 form part of these financial statements.
12
INTERNATIONAL WAQF FUND
(A company limited by guarantee)
## CASHFLOW SATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021
Reconciliation of net income/ expenditure to net cash flow from operating activities
|Net income for the reporting
period per the SOFA
Adjustments for:
Depreciation
Increase in debtors
(Decrease) in creditors
Net cash utilised by operating activities
Cash flows from investing activities:
Purchase of property, plant, and equipment
Net decrease/ (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Consisting of:
Cash at bank and in hand|2021
£
395,863
1,438
(207,104)
(33,783)
156,414
(2,955)
153,459
94,358
247,817
247,817|2020
£
329,469
1,878
(373,306)
(69,957)|
|---|---|---|
|||(111,916)
(655)|
|||(112,571)
206,929
94,358
94,358|
The notes on pages 14 to 19 form part of these financial statements.
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Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
## **1. Company information**
International Waqf Fund is a charitable company limited by guarantee, without share capital and governed by its Memorandum and Articles originally dated 16 July 2013 and amended by Special Resolution on 21 July 2015. Originally called Islamic Relief Waqf; the company changed its name to International Waqf Fund on 25 February 2019.
The company was originally registered as a charity with the Charity Commission on 23 July 2015 but remained dormant until 1 January 2019. International Waqf Fund is a public benefit entity.
The Principal Address and Registered Office is 22 Sampson Road North, Birmingham B11 1BL.
## **2. Accounting policies**
## 2.1 Basis of preparation of financial statements
The financial statements of the Charity, which is a public benefit entity under FRS 102, 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 (FRS 102) (effective 1[st] January 2019) – (Charities SORP (FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland – (FRS 102) and the Charities Act 2011.
The financial statements have been prepared on a going concern basis under the historical cost convention.
## 2.2 Going concern
When preparing these Financial Statements, the Trustees have assessed the Company's ability to continue as a going concern and have examined the uncertainties caused by the Covid-19 pandemic. As a result of this assessment no material uncertainties have been identified by the Trustees that may cast significant doubt about the ability of the Company to continue as a going concern. The Trustees consider the fact that the Charity is a subsidiary of Islamic Relief Worldwide and can call upon the support and resources of that organization as a major factor in reaching this judgement.
## 2.3 Incoming resources
Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and that the amount can be measured reliably.
## 2.4 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.
## 2.5 Cash and cash equivalents
Cash at bank and cash in hand includes non-interest bearing accounts held at call with banks, and cash in hand. Cash equivalents includes monies deposited for less than 120 days or available within a 120 day notice period, without interest penalty.
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Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## 2.6 Fund accounting
Unrestricted funds: All donations are considered unrestricted unless specifically stated by the donor. Unrestricted funds comprise the accumulated surplus or deficit on the statement of financial activities which are available for use at the discretion of the trustees of Islamic Relief Worldwide in furtherance of the objectives of the charity.
Endowment (Waqf) funds: These are funds that have been given to Islamic Relief Worldwide subject to the restriction that they are to be held as capital or spent on a long-term charitable asset. Waqf is employed to generate a return while the original investment remains intact. Waqf returns are used to cater for long-term projects. Waqf is the Islamic equivalent of endowments.
## 2.7 Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation and impairment charges.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method unless where stated otherwise.
Depreciation is provided on the following basis:
Computer Equipment - 4 years Fixtures & fittings - 4 years
## 2.8 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.
Debtors
Debtors are measured at the settlement amount after any trade discount offered.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably.
Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## 2.9 Taxation
As a registered charity, the company is exempt from taxation of its income and gains to the extent they fall within the charity exemptions in the Corporation Taxes Act 2010 or Section 256 Taxation of Chargeable Gains Act 1992. The company is unable to recover Value Added Taxation charged on its purchases which is included in the related expense or asset in the accounts.
## 2.10 Judgments in applying accounting policies and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgments and estimates. The items where these judgments and estimates have been made include:
Provision for doubtful debts
Debtor balances outstanding at the year end and not received at the date of signing have been considered on a case-by-case basis regarding their recoverability.
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Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## **3. Income from charitable activities**
|**Income from charitable activities**|||
|---|---|---|
|Donations and legacies
Parent company grant|2021
£
356,221
405,529
761,750|2020
£
353,659
376,686|
|||730,345|
## **4. Support costs**
Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include management, administration, governance, and facilities costs. They are incurred directly in support of expenditure on the objects of the Charity. Where support costs cannot be directly attributed to particular headings, they have been allocated to costs of raising funds and expenditure on charitable activities on a basis consistent with the use of the resources.
|
resources.||||
|---|---|---|---|
|Fundraising
Charitable activities|Total
Support
Costs
£
Activities
Undertaken
Directly
£
79,898
127,126
79,898
78,965
159,796
206,091|Total
2021
£
207,024
158,863
365,887|Total
2020
204,772
196,104|
||||400,876|
## **5. Governance**
|Auditor’s remuneration (audit)
Auditor’s remuneration (non-audit work)
Legal costs
Trustees’ expenses|2021
£
4,400
0
3,130
0
7,530|2020
£
4,200
0
18,613
190|
|---|---|---|
|||23,003|
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include professional fees and costs linked to the strategic management of the Charity.
## **6. Trustees’ expenses**
|**ustees’ expenses**|||
|---|---|---|
|Meeting costs
Travel expenses|2021
£
0
0
0|2020
£
190
620|
|||190|
Trustees can claim expenses but are not remunerated.
16
Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## **7. Staff costs and emoluments**
|**Staff costs and emoluments**|||
|---|---|---|
|Gross salaries
Employer’s National Insurance
Employer’s Pension|2021
£
225,959
23,558
16,822
266,339|2020
£
176,109
17,884
8,424|
|||202,417|
The average monthly number of employees during the year was 4.5 (2020: 4). Only one member of staff earned more than £60,000 in the year; their earnings fell into the band £80,000 - £90,000 (2020: £80,000 - £90,000: 1).
Key management remuneration amounted to £93,001 (2020: £80,324), including pension costs of £9,027 (2020: £5,721).
## **8. Tangible fixed assets**
|Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020|Computer
Equipment
£
6,260
2,956
0
9,216
5,118
1,142
6,260
2,956
1,142|Fixtures &
Fittings
£
3,057
0
0
3,057
2,406
296
2,702
354
651|Total
£
9,317
2,956
0|
|---|---|---|---|
||||12,273|
||||7,524
1,438|
||||8,962|
||||3,311|
||||1,793|
17
Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## **9. Debtors**
|**Debtors**|||
|---|---|---|
|Owed by group undertakings
Other taxation
Prepayment and accrued income
Other debtors|2021
£
852,039
6,616
0
13,905
872,560|2020
£
645,372
3,782
13,067
3,235|
|||665,456|
## **10. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
**Movement in funds**
Unrestricted Funds
Brought forward
Incoming resources
Resources expended
Balance carried forward
Endowment Funds
Brought forward
Incoming resources
Resources expended
Balance carried forward||2021
£
10,823
5,444
4,439
4,400
25,106
2021
£
83,767
428,925
365,887
146,805
2021
£
618,952
332,825
0
951,777|2020
£
1,520
4,760
39, 568
13,040|
|---|---|---|---|
||||58,888|
||||2020
£
77,746
406,897
400,876
83,767
2020
£
295,504
323,448
0
618,952|
|||||
|||||
|||||
## **11. Movement in funds**
18
Commercial in confidence
INTERNATIONAL WAQF FUND (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021
## **12. Analysis of assets and liabilities representing funds**
|Fixed assets
Current assets
Creditors due within one year|Unrestricted
2021
£
3,311
171,600
(28,106)
146,805|Endowment
2021
£
0
951,777
0
951,777|Total
2021
£
3,311
1,123,377
(28,106)
1,098, 582|Total
2020
£
1,793
759,814
(58,888)|
|---|---|---|---|---|
|||||702,719|
## **13. Financial Instruments**
**Financial assets measured at amortised cost**
|2021
£
Debtors
865,944
Cash
247,817
1,113,761
**Financial liabilities measured at amortised cost**
2021
£
Creditors
15,262
Accruals
4,400
19,662|2020
£
648,607
94,358|
|---|---|
||742,965|
||2020
£
41,088
13,040|
||54,128|
## **14. Controlling party**
The ultimate parent company is Islamic Relief Worldwide, a charitable company registered in England and Wales, which is based at 19 Rea Street South, Birmingham, B5 6LB.
Islamic Relief Worldwide has the right to appoint and remove the trustees of International Waqf Fund.
Consolidated financial statements can be obtained from the Islamic Relief Worldwide website www.Islamic-relief.com.
19