Docusign Enwebp& ID.. A19F8B5E-AFF94354-ADA4-E730BEBFBE33 Company Numbèr.. 09982930 Charlty Numbar: 116602S Issa Foundation Trustees, Report and Accounts Financial Statements 31 December 2023 INTERNAfioNAL
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA4E730BEBFBE33 ISSA FOUNDATION CONTENTS Pagè Charity information Trustees, Report Ilncluding Directors, Report and Strategic Report) Independent auditors rert to the Members 8-10 Statement of financial activities IlnclLJding Income and Expenditure Account) 8818nce sheet 12 Cash flow stat8m8nt 13 Notes to the financial statements 14-25
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION CHARITY INFORMATION Tru$tees M1s$8 Z Issa Company Secretary J Patel Registered offi¢e Waterside Head Office Haslingden Road Blackburn BB12FA Auditor MHA Richard House 9 Winckley Square Preston PR1 3HP Campany règlstration numbèr 09982930 Charlty r•glstratlon numbar 1166025
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 Th8 Trust8es, who are also directors of th8 charty for the purposés of the Cornpani85 Ad, present their report and the audited financial statements of the charity for the year ended 31 December 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice ISORPI Accounting and Reporting by Charities. IFRS 1021 in preparing the annual report and financial statements of the charity. The financial statements have been ppared in accordan with the accounting policies set out in notes to the accounts and comply wrth the charity's governing document, the Charities Act 2011 and Accounting and R8POrting by Charities.. Statement of Recotnmended Piactice applicable to charities preparing their accounts in 8rdance with the Financial Reporting Stsnd8rd applicable in the UK and Republic of Ireland. Structura, govarnanca and managèmènt Issa Foundation is a registered charity in UK number 1166025 and is consts'tuted under a trust deed dated 14th March 2016. The charity was Ic>unded by brothers Zuber Issa and Mohsin Issa. The charity also has a voluntary sub-committee and a s8cr8tary who play a vital ro18 in advising the Trustees on various projects. The Trustees and the sub-cornmittee meet every quarter and the Trustees make decisions based upon recommendations Irc>m sub-committee. The sub-committee consists of individuals with numerous skills and abilities, ranging from construction, health care and previous charity experience. The mernbers of the volunteer sub-oomrllittee are., Ilyas Rehmani., Muhammad Sadiq Patel,. Siraj Ahmed Patel,. Zubair Desai., Irfan Ali., Harun Patel and Mohamed Valli. Trustees of the charity and key management personnel The directors of thg charitable wmpany ore ts Truste8s for the purposes of charity law. The Trustees who have served during the year and since the year end are set out on page 1. The charity considers its key management personnel comprise the two Trustees, who make decisions regarding the awarding and payment of grants to projects, and the voluntsry advisory subcommittee. New Trustees are appointed by the existing Trustees and serve for 5 years after which time they may put themselves fOard for re-appointment. No remuneration is paid to the Trustees or sub-committee members. Trustees are rewrnrnended to di1058 all rglev8nt interests and regist8r them with the sub-committee. Rlsk rèvlaw Major risks identified within the organisation are banking, fraud and issues relating to extremism activities. To mitigate the identified risks Issa Foundation have increased security measures and implemented additional dug diligenog ch&cks frorn the beginning to thg end of ev8ry proj8Ct. We are working with established charitable organisations with on-ground presence in the selected areas of operation, which may expose Issa Foundation to financial risks. We have procedures in place to eliminate these Iinancial risks as highlighted below. BhuT*wol Anlk 620/720 6161720 670/720 6121720 5951720 588/ 720 581 /720 5771 720 5581720 551 1 720 5481 720 5361 720 527/ 720 5051 720 500/ 720
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 Comprehensive vetting of 811 charitsble org8nisations. Organisations to which grants are awarded must be a government registered charity in their respective country. Fac8 to fac8 meetings h8ld with all eharitablé organisations who arè awardod grants, this is usually done via online web conferencing and visits to relevant countries. References obtained Irorn worklprojects carried out with other charitable organisations. Field visits by either Trustees or sub-committee merllbers for charilable projects. ObjectNes, activities and public benefit The purpose of the charity is the advancement of education, health and employment of people in need, in particularfy disadvantaged commLJnities. By supporting projects that address these issues, the activrty may 8150 protnote other Identifiable projects from tItTI8 to as detertnined by th8 Trustees. In 2023, the charity had spent over £3.97M12022'. £7.81MI supporting projects in the following categories:_ Cate ent EdLJC8tion Food Health Social W8ter 1,115,301 2,411.271 321,061 89,215 37,500 3,974.348 Our strategy involves on ground humanitarian support, providing food. water, medical assistance, and shelter. This is then improved and then developed to form a way of life and routine, leading towards freedom from dependence on others. We are dedicated in providing support to orphans, widows and less fortunate regardless of race, culture or ion.
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES, REPORT IINCLUDING DIRECTORS, REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 Grant making policy Proposals are invited fr(>m registered ¢haritsble organisation$ undertaking humanitarian projo¢ts to support communities, in particularly disadvantaged groups. Requests received are reviewed by the sub-cornmittee who then advise the Trustees of the merits of each project and give advi on the level of funding to be provided. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year. Social investment policy The Trustees assess grant applications on 8 case-by-case basis with the assistsnce of the SU1¢0mmIttee. In some cases, the Trustees may identfy organisalions whose work is in line with the charrty's objectives but who have the ability to raise their own funds in the mid-to-long term. In these circumstances they may d8tertlline that the most 8ppropriate form of support would be a conogssion8ry loan which is rgpayablg on dernand. Strategic report Aehlev•m•nts and performancè The Trustees of Issa Foundation would like to thank the sub-committee for their invaluable contribution to the charity. Our projects in the year have been in India, Malawi and UK. We maintain our support in funding lor the mtsst vulnerable in India and Malawi through our healthcare, liv8lihood projects, education, shelter and fd programrn8S, Wlth the aid of our partners and by the leadership, zeal, inspiration and dedication of our Trustees and sub-corrmittee members. Issa Foundation Is proud to b8 supporting Th8 Maon8 Vocational Training Centre IMWfCI which offers students appr8nticeship in key construction skills, carpentry, joinery, bricklaying and plLJrnbing. Th8 objective of this programme is to equip young men and women with the technical and vocational skills and knowledge to promote self-reliance and break the cycle of poverty. The Trustees of Issa FoundatioN would like to thank 811 partners and volunteers for their support. IELIEF LJND issa 1*1 102J
Docusign Enwebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 Financial review The charty's main source of inc(>me is voluntary donations and interest received on unexpended donations. Donation5 received during the year amounted to £7,512,05012022.. £4,007,100). Th8 balance held within the bank account has resulted in interest generated during the year of £4,869 12022.. £5,778), which has been transferred to a separate unrestricted interest fund as can be seen in nc>te 14 to the accounts. Grants totslling £3,974,34812022.. £7,819,891) have been awarded to projeots. Detsils of these projgcts can be found in note 6 to the accounts. 15sa Foundation has baén prédominantly funded by thé Trustéès of thè Foundation, and thè rélatèd Grft Aid claims on their donations. for the purpose of meeting the charity's aims and objectives. The current reserves are to be assigned to charitable projects as and when they have been identified, vetted and approved. Reserves policy Unrestricted funds Lillah Lillah comprises the gift aid recovered on Zakat donations. The Lillah fund balance at 31 December 2023 of £9,865,17312022.. £8,643, 1141 will be applied to future awards operating costs of the ch8rity. The Lillah fund includes fixed assets of £17,980,46812022'. £14,118,326). Zèkat Donation5 collected on annual religious ground5 frorn able Muslitns to help the poor. The Zakat fund b81ance at 31 December 2023 of £10,823,41512022'. £8,501,086) will be applied to future awards. Interest Funds generated from interest received on the amounts held within the charity bank account and the bank accounts of individual Muslims. The interest fund balance at 31 Dember 2023 of £142.420 12022.. £253,297) will be applied to future awards under Ihe guidance ol religious ruling. The level of funds is reviewed before grant commitments are made lo ensure that the balance of these funds is always sufficient to cover current and proposed grant commitments and ongoing administration costs. The Trustees are concemed to maximise the benefit to disadvantaged communities ol their grant making policy. All unrestricted reserves are to be used on future charitable projects. Fundralslng standards Infomiatlon The charity does not raise funds from the general public. Plan5 for future periods The principal objective of Issa Foundation is housing, advancement of education, health, empowering those in need, in partlcular disadvantaged individuals and communities, by supporting projects that addiess these issues. The charity will continually identify projects from tirne to time as determined by our partners, trustees and volunteers.
Docusign Enwebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 Auditor Following the merger of MHA M(x)re & Smalley with MHA, the company's independent auditor has now b8come MHA. A resolution to reappoint MHA as independent auditoi will be proposed at the next Annual General Meeting. Trustèès, rè$ponsibilitie$ The Trustees Iwho are also the directors of Issa Foundation for the purposes of company lawl are responsible for preparing the Trustees, Report (including the Strategic Report) and the financi81 statetnents in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Cotnp8ny law requir8S the Truste8S to pr8P8r8 financi815tatem8nts foi 8ach financi81 p8riod, which give 8 true and fair view of the state of affairs of the charitable company and of the incoming resources and application ol resources, including the income and expenditure, of the charitsble company for the period. In preparing these financial statements, the Trustees are reqUId to". select suitable accounling policies and then apply them consistently. observe the methods and principles in the Charities SORP 2019 IFRS1021. make judgernenls and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalemenis. pr8pare the financial statements on the going conc8rn basis unless it is inappropriato to presume that ihe charitable company will continue in operats'on. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any tirne the financial position of th8 charitable company and enable thern to ensure that thé 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 irregularrties. 11
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED 31 DECEMBER 2023 In so far as the Trust88s are aware.. there is no relevant audit information ol which the charitable company's auditor is unaware,. and the Trustees have tsken all steps that they ought to have taken lo make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. In approving the Trustees. Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors. This report was approved by the Trustees on August 2, 2024 sNd by. 414M2CUC88943F"" "" "" "" . Z Issa Trustee
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023 Opinion We have audited th8 financial statements of Issa Foundation (the 'charit8ble company'l for th8 year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Stalement and the notes to the financial statements, including significant accounting policies. The financial reporting framéw(>ik that has béén appli8d In their préparation Is applicabltr law and Unitèd Kingdom A¢oounting Standards, including Financial R8porting 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 lair view of the stale of the charitable company's affairs as at 31 December 2023, and of its incoming resources and application ol resources, including its income and expendilure, 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. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and 8pplicab18 law. Our responsibilities under those 5t8ndards are further d85cribed in the Auditor responsibilities for the audit of the financial statements section of our report. We 3re independent of the charitable cornpany in accordance with the ethical requirewents that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have lullilled our olher ethical responsibilities in aooordance with these requirements. We bèlieve that the audit evidenoe we have obtained is suffiGient and appropriate lo provide a basis for our opinion. Concluslons r&lallng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of ccounting in the preparation ol the financial statements Is appropriate. 8ased on the work we have performed, we have not identified any materia1 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to conts.nue as a going concem for a period of at least twelve months from when the financial statements are authorised for issu8. Our responsibilities and the responsibilities of the trustees with respect to going eoncem are described in the relevant stiOnS of this report. Other infomiation The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor's report thereon.The trustees are responsible for the other information contained within the annual report. Our opinion on the finanual statements does not cover the other information and, exp1 to the extent otherwise explicitly stated in our report, we do not express any forrn of assurance conclusion thereon. Our responsibilily 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 course ol the audit or otherwise appears to be materially misstated. If we identify such rnaterial inconsistencies or apparent material misstaterllents. we are required to determine whether this gives rise lo a material misstatement in the financial statements themselves. 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 nolhing lo report in this regard.
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work und8rtaken in th8 cours8 of th8 audit.. the information given in the Trustees, report lincorporating the strategic report and the directors, report) for the financial year for which the financial stat8m8nts are pr8pared is consistent with the financial statements., and the strategic report and the directors, report have been prepared in accordance with apPIable legal requirements. In the light of the knowledge and understsnding of the charitable cornp8ny and its environment obtsined in the course of the audit, we have not identified material misstatements in the strategic report and the directors, report. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to you rf, 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 dirlorS. remuneration specrfied by law are not made.. or we hav8 not received all the information and expl8nalions we require for our audit. Responsibilities of Trustees A5 explained more fully in the Trustees. Responsibilthes Statement set out on pages 6-7, the Ttustees (who are 8150 the directors of the charitable company for the purposes of company lawl 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 frotn material misstatement, whether due to fraud or errol. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concèin, disclosing, as applieablÈ, mattérs rèlated to going conGèrn and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable cotmpany or to cease operations, or have no realistic altemative but to do so. Audltor responsSbllStles for the audlt of the flnancSal statements Our objectives are lo 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 assLJrance is a high level of assurance, but is not a guarantee that an audit ondLJCted in accordanGe with ISAS IUKI will always d8t8Ct a material misstatement when it exists. Misslalements can arise frorn fraud or error and are considered material if, indiwdually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these rinancial statements. Irregularities. including fraud, are instances of non-mplIance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstalemenls in respect of irregularities, including fraud. The specific piocedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. Obtaining an understanding of the leg818nd regulatory fr8mework5 that the Gharitable company operates in, focusing on those laws and regulations that have had a direct eff8cI on the financial ststements.,
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2023 Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud., Enquiry of management and those charged with governance around actual and ptstential litigation and daims", Auditing the risk of fraud in revenue by way of cut off testing and confirming completeness of donations received during the accounting period., Performing audit work over the risk of management override of controls, ineluding testing of joumal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias., Reviewing minutes of meetings of those charged with governance,. and Reviewing financial 5talemenl disclosures and lesling to supporting documentslion to assess compliance with applicable laws and regulations. Because of the inherent lirnitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increase5 the more that complianc8 Wlth a law or regulation is removed frotn the events and transactions reflected in the financial st8tements. as we will be less likely lo become aware of instances of non- complianTr. The risk is a0 greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepreseniation. A further description of our responsibilrties for the financial statements is located on the FRC'S website at.. www.frc.o .uklauditorsres onsibilities . This descripb.on ft)rms part of our guditor's report. Use of our report This report is made solely tts the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Cotmpanies Act 2006. Our audit work has been undertaken so that we tmight 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 anyonè other than thÈ eharitablè company and th8 eharitablè company's mambèrs as a body, for our audit work, for this report, or for the opinions we h8ve forrned. DQF3B7E625469 Paul Williams BAIHonsl FCA Senior Statutory Auditor For and on behalf of MHA, Statutory Auditor Preston, United Kingdom August 2, 2024 Oate MHA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales Iregistered number OC3123131 -10-
Docusign Enw8bp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds Restricted Total funds Totsl funds funds 2023 2022 Not• In¢om* and endowments from: Donations and lega¢ies InStMentS Other income 7,512,050 109,042 29,832 7,512.050 109,042 29.832 4,007,100 5, 778 Total income and endowments 7,650,924 7,650.924 4,012,878 EXpendire on: Gharilable aclimlies 4,223,338 4.223.338 7,937,817 Total oxpèndltura 4,223,338 4,223,338 7,937,877 Net movement in fvnds 3,427,586 3,427.586 (3,924,939) Rewn¢iliation of funds Total funds brought forward 17,397,497 17,397.497 27,322,436 Total funds carrlèd forward 20,825,083 20.825.083 17,397,497 All income and expenditure derives from continuing activities. The ststement of financial activities includes all gains and losses recognised in the period. The notes on pages 14 to 25 form part of these financial statements.
Docusign Enw8bp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2023 Total funds 2023 Total funds 2022 Unrestricted funds Rastricted funds Not• Fixèd assèts: Tangible fixed assets 17,980,468 17,980.468 14, 118,326 Curr•nt ass•t&' Debtors Current asset inStmentS Cash at bank and in hand 12 13 62,103 525,000 2,384,291 62,103 525,IXIO 2,384.291 69,983 525,0( 2, 785,520 2,971,394 2.971,394 3,380,503 Liabilitie& Creditors.. amounts falling due wthin one year 14 126,779 126,779 107,332 Not ¢urr¢nt as*ts 2,844,615 2,844,615 3,279, 171 Total assets less current 20,825,083 20,825.083 17,397,497 Net ats 20,825,083 20,825.083 17,397,497 Charity fund& Unr8strict8d funds Restricted funds 15 15 20,825,083 20,825,083 17,397,497 20,825,083 20.825.083 1T,397,497 These financia August 2, 20 518tements were approved and authorised for issue by the Board of Trustees on d signed on its behalf by.. by. 414C89?F Z Issa Trustee Company registration number.. 09982930 The notes on pages 14 to 25 form part of these financial statements. -12-
Docusign Env8lop& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 Total lund$ Totsl fund$ 2023 2022 Cash flows from operating activities.. Net cash generated fmm operating activities 1351.871 (3,900,486) Cash flows from investing activities DIendS and interest tr(wD InStMentS Payments to acquire tangible fixed assets 109.042 5,778 13.862.142) (8,698,634) Net ¢a¥] generated from inveng activities 13,753,100) (8,692,856) Net cth pmvided by (used in) investing 8ctivities Change cath and cath equivalents in the reportrng period 1401.2291 112.593.3221 Cash and cash equlvalentsat the start of the repotlng perli)d 2.78&520 75,378.842 Cash and cash equivalentsat the end of the reporting period 2,364.291 2,785.520 Reconciliation of net incomellexpenditurel to net cash flow from operating activities 2023 2022 Net income for the reporting period Adjusknents for: Instment income receivable Ilncreasel I decrease in debtors Increase I Idecreasel in creditors 3,427,586 (3,924,939J 1109,0421 7,e80 25,447 (5, 778) 166,9231 97, 174 Net cash generated from operating activities 3,351.871 (3,900,466J Analysis of cash and cash equivalents 2023 2022 Current account 2,384,291 2, 785.520 2,384,291 2, 785.520 -13-
Docusign Enwebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Aecountlng pollclas Basis of preparation Issa Foundation is a company limited by guarantee Iregistered in England and Wales) and does not have share capital. The liability of the members is limited and is not to exceed £1 per member. The address of the registgr8d office is given in the charty information on page 1 of thes8 financial staternents. The nature of th8 charity's operstions and principal activities are detailed in the Trustees Report on pages 2 lo 7. Th8 charity constitut85 a public benefit entity as defined by FRS 102. The financi815tatements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charits'es preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Financial Reporting Stsnd8rd applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Ad 2011. the Companies Act 2006 and UK Generally A¢¢epled Practice. Th8 financial statetn8ntS 8r8 prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accoLJnting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated. Going concern The financial ststements have been prepared on a going eoncetn basis as the Trustees believe that no rnat8rial uncertainties 8XiSt. Th8 Trustees have consid8red the 18v81 of funds h81d and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level ol reserves ftsr the charity to be able to continue as a going eoncern. Income recognltlon All incoming resources are included in the Statement of Financial Activities ISOFAI when the charity is legally entitled lo the income alter any perf0rrnan conditions have been met, the amount can be measured reliably and it Is probable that the income will be received. For donations to be recognised the charity will have been notified of the arnounts and the settlement dale in writing. If there are conditions attached to the donation and this requires a level of perfortnance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. No amount is included in the financial statetnents for volunteer time in line with the SORP IFRS 1021- Further detail is given in the Trusiees, Annual Report. Investment income is earned through holding assets for investment purposes such as cash. It includes bank interest. Interest incotlle is recogni5ed using the effective interest method. School tuition fees are recognised in the Statement of Financial Activities in the period in which it is re1Vable, where the receipt is probable and can be measured reliably. Expendlture recognltlon All expenditure is accounted for on an accruals basis and has been classified under headings th81 aggregate all costs related lo the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. -14-
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Aecountlng pollcls Icontlnudl Expenditure on charitable activities includes grants paid and associated support costs of running the charity. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered. this is accrued as soo)n as the recipient is notified of the grant. as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relats.ng to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of th8 chaiity. Support costs allocatlon Support costs are those that assist the work of the charity but do not direcly represent charitable activities and include office costs, gc>vernance costs, and administrative payroll costs. They are incurred directly in support of 8xperTrditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allwated to expenditure on charitable activities on a basis consistent with use of the res(xJrces. Tangible fixed assets Freehold property & assets in the course of construction are stated at historical cost. Assets in the course of construction are transferred to freehold property upon completion of the development. Depreciation has not been charged on freehold buildings as the trustees consider the estimated residual value ol the properly to be a significant proportion of the book value, such that the depreciation would be immat8rial. The estimat8d residual value is expect8d to be high dug to thg Charity's policy of maintaining the propety such that physical deterioration does not occur and the costs of such maintenance are charged in the year of incidence. Inve$tment propgrty Investment property, which is property held to earn rentals andlor for capital appreciation, is initially recognised at cost, which indudes the purchase cost and any directly attributable expenditLJre. Subs8qUgntly it is me8sur8d at fair v8lu8 at the reporting end dat8. The surplus or defiGit on revaluation is recognised in statement of financial activities. Inv•stm•nts Social investments are programme related investments being a concessionary loan issued to a charity beneficiary. Concessionary loans indude those receivable from a third party which are interest free and are made to advanee charitable purposes. All loans are measured at cost, less impairment. Dèbtors and credltors rècalvablèlpayabla wlthln on* yaar Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Employee benefits When employees have Tendere(J service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Th8 charity operat8s a defined Contribution plan for the benefit of its employees. Contributions 8re expensed as they become payable. -15-
Docusign Envebp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Aecountlng pollcls Icontlnudl Tax The charity is an exempt charity within the meaning ol schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it tneet5 the definition of a ¢h8ritable oornp8ny for UK corporation tsx purposes. Funds Unrestricted funds are available lor use al the discretion of the Trustees in furtherance ol the general objectives of the charity and which have not been designated foi other purposes. Restricted funds are funds which 3re to be used in accordance with specrfic restrictions imposed by donors or which have been raised by the charrty for paraUlar purposes. Judgements and key sources of estimation uncertainty There have been no significant judgernents lapart frc>m those involving Èstimates) made in the process of preparing the financial statements. Th8re hav8 be8n no k8y a55Utnptions concerning the futur8 and other key sourc8s of estimation uncertainly al the reporting dete that have a significant risk of causing a maleri818djuslment lo the carrying amounts of assets and liabilities within the next financial year. -16-
Docusign Env8bp& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Ineomè from donatlons and lègaclas Unres¢ri¢ted funds Reri¢ted Total funds funds 2023 Donations 7,512,050 7,S12,050 7,512,050 7,512,050 Unrestricted funds Restricted Totsl funds funds 2022 Donations 4,007, 100 4,007, 100 4,OOT, 100 4,007, 100 Income from investments Unr&lct8d funds R•strlctad Total funds funds 2023 Bank interest Rental inGome 4,869 104,173 4,869 104,173 109,042 109,042 Unresfricted funds Restricted Total funds fiJnd5 2022 Bank InteSt 5,778 5, 778 5,778 5, 778 Othèr ineomè Unrastrlctad funds Rèstrlctad Total funds funds 2023 School tuition fees 29,832 29,832 29,832 29,832 -17-
Docusign Env8lop& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities Unreicted funds Restricted Totsl funds funds 2023 Grants eXpendIre (note 61: Grants payable 3,974,348 3,974,348 Grant related support costs.. G0ManCe a1 SUprt costs Inole 51 248,990 248,990 4,223,338 4,223,338 Unre&ricted funds Restricted Tot81 fiJnd5 nds 2022 Grants expenditure (note 6)." Grants pable 7,819,891 7,819,891 Gr8nt rel8ted sjpport cos Govemance and support costs (note 5) 717,926 117,926 7,937,817 7,937, 817 Allocation of support costs Gov8rnanc8 Support 2023 Bass of £ apportlonment Subscriptions AdK*rtising & matheting Insurance 1,725 1,788 2,154 2,916 8,512 16121 38,083 7,625 6,220 139,342 1,090 2.675 5,525 1,725 Supwrt cost 1.788 Supwrt cost 2,154 SuppDrt Cost 2,916 Supwrt Cost .512 SuppDrt cost 16121 Supwrt Cost 38,083 Time Spent 7.625 Supwrt cost 6.220 SuppDrt Cost 139,342 Supwrt cost 1,090 Supwrt Cost 2.675 Supry)rt Cost 5,525 Supwrt Cost 4440 G0ManCe cost 2,100 Gownance cost 25.407 Gownan¢e cost Gas Bank Charges Wages and salaries Sutconlractors Tra1 unrecodb1e landlord costs Sundry 8xp8nse5 Rates Security Audit fees Other fees payable to the auditor Professional fees 4,440 2,100 25.407 31,947 217,043 248,990 -18-
Docusign Env8bp& ID.. A19F8B5E-AFF94354-ADA4E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Alloeatlon of support costs Icontlnuadl Govemance Support 2022 Ba$ of £ apportionment Subscriptions InSunCe Electricity Gas Bank charges Wages 2nd salaries Sundry expenses Rales Security Audit fees Other fees payable to the auditor Pnfessional fees 615 3,435 5, 730 443 (300) 56,814 40 18,049 27,459 615 Support cost 3,435 Support cost 5, 730 Support cost 443 Support Gosl (30Q) Support cost 56, 8f4 Time spent 40 Support cost 18, (M9 Support cost 27,459 Support cost 5, 280 Govemance cost 348 Go¥Emance cost 13 Govemance cost 5,280 548 13 5, 641 t 12,285 117,926 Analysis of grants The charity undertakes its charitable activities through grant making and awarded grants to a number of org8nis8tion5 in furtherance of its oharitable activities. 2023 2022 Balance payable brought forward Preiiously awarded grants released New grants awarded in the 3,974,348 7,819,891 Net grant cost in the period Inole 41 3.974.348 7.819, 891 3,974,348 7,879, 897 Grants p8id in the period 13,974,348) (7,819, 891) Balance payable carried forward During thé yèar grants wèr8 madè as dètailèd bèlow.. -19-
Docusign Envelop& ID.. A19F8B5E-AFF94354-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Analysls of grants leontlnu•dl Anatysis by institution 2023 2022 Ajmal Foundation Lokhar)dwala General Hospital Masjide Tauheedul Mosque RenOtion Blackbum Marf(az Education India Public Trust Hakim-ul-lslam Academy Society Intemational Humanitarian Relief Malawi Relief Fund UK Munshi Trust Valan Hospital Welcare Hospital Masjide Vali 416,834 2,626,574 7,014 30,000 59,215 41,134 2,193.397 101,253 310,000 2,079.714 )5,585 20,423 5.158 46,166 96.000 2,136.350 668,338 36,061 15.023 3,974,348 7,819,891 Anatysis by ¢8tegory 2023 2022 Education 1,115.301 2,411,271 321,061 3C16, 895 6,398, 709 91,735 648, 000 154, 597 140, 555 80, (IOQ Health Housing Orphanage Social Water 89.215 37,500 3,974,348 T,879, 891 Auditor's remuneration The auditor's remuneration amounts to an audit fee of £4,500 12022.. £4,080) excluding VAT and fees in relation to assistance with charity tax affairs of £95012022.. £3201 exduding VAT. -20-
Docusign Envelop& ID.. A19F8B5E-AFF94391-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Trust•ès' and kay managèmènt parsonn•l rèmunaratlon and •xpènsas The Trustees neither received nor waived any remuneration during the period. There were no employee benefits received by key rnanagement personnel during the period. The charity considers its key management personnel comprise the two Trustees who make all decisions regarding the awarding and payment of grants to projects and the voluntary advisory subcommittee. The Trustees did not have any expenses reimbursed during the period. 10 Staff costs and employee benefit5 The average monthly number of employees and full time equivalent IFTEI during the period was as follows.. 2023 Number 2022 Numbar Charitable acti11¢$ The total staff costs and employee benefits were as follows.. 2023 2022 Wages and salaries So¢ial security Defined contribution pension costs 37,788 55,000 201 1, 613 295 38.083 56,814 No employees received tot81 etnployee benefits (excluding employer pension oostsl of more than £60,000. -21-
Docusign Envebp& ID.. A19F8B5E-AFF94391-ADA¥E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 11 Tanglblè flxad assèts Freehold property Investsnent A5%0ts under prop8ty construction Total At l January 2023 5.560.752 4557.574 14. 178.326 Additions Transfers 7.226 3.8.916 11,235.9611 3.862.142 1,235.961 At 31 December 2023 1,235,961 5,567.978 11,176,529 17.980,468 Depre¢lallotr) At l January 2023 Charge for the year At 31 December 2023 Net book value At 31 December 2023 1,235,961 5,567.978 11,176,529 17.980,468 At 31 DeGeniber2022 5.560.752 8.557.574 14. 1t8,326 The investrnenl property valuation has been considered by the Trustees at 31 December 2023. they consider the lair value to be equal to the historic cost. 12 Debtors 2023 2022 Trade debtots Prepayments 32,583 29,520 69,983 62.103 69.9 13 Current asset investments 2023 2022 PrcEramme rdated i$[MentS 525.COO 525.0( 525,(KIO 525,000 Programme related investtnents are concessionary loans made to a charity beneficiary. These are interest free loans repayable on demand. -22-
Docusign Envebp& ID.. A19F8B5E-AFF94391-ADA4E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 14 Cr•dltors.' amounts falllng duè wlthln onè yèar 2023 2022 Trade creditors Accruals and defeThed income 73,491 53,288 96,052 5, 280 126,779 101,332 15 Fund reconciliation Balan¢e at 31 D8cèmb8r 2022 Balance at 31 Dèe8mbèr 2023 Income Expendlture Transfers UnrestriGted funds 8,643,114 8,501.086 253,297 1,638,005 6,008,050 4,869 1421,8711 13,685,721) 1115,7461 9,859,248 10,823,415 142,420 Zakat Interpst To181 UnreslriG1 funds 17,397,497 7,650.924 14,223,338) 20,825,083 RestriGted fvnds Total funits 17,397,497 7,650,924 14,223,338) 20,825,083 Unr•5tricted fund5 Lillah Lillah comprises the gift aid recovered on Zakat donabons. The religious restrictions placed on the use ol Zakat donations for the original donor do not apply to the related gift aid income. Zakat Donations collected on annual religious grounds from able Muslims to help the poor. No administrative expenses or other operating expenses are paid for by this fund. Interest Funds generated from interest received on the amounts held within the charity bank account and the bank a¢¢ounts of individual Muslims, thesè funds ale dis¢harg8d under the guidan¢& of religious ruling. All funds may be applied for any purpose which falls under the primary objects and activities ol the charity. -23-
Docusign Enwebp& ID.. A19F8B5E-AFF94391-ADA4E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 14 Fund raconelllatlon Icontlnuèdl Balance at 31 Decwnber 2021 8a13nce at 31 D8c8mb 2022 Income Expendlture Transfers UnTeicted fvnd& Lillah Zakat lft]leresl 8, t22, 788 12,841,382 358,266 801,000 3,206, 100 5, 778 (280,674J f7,546,396) (110, 747) 8,643, 114 8,501,086 253.297 Total unTrslriGted funds 21,322,436 4,012,878 f7,937,817) 17,397,497 Restricted funds Total fvnds 21,322,436 4,012,878 (7,937,817) 17,397,497 15 Analysls of net assets between funds Unreicted funds Restricted funds Total 2023 Fixed assets Cash at bank and in hand Other current assetslliabilities 17,980,468 2,384,291 460,324 17.980,468 2.384,291 460,324 20.825,083 20.825,083 Unrericted Ricted funds fijnds Totsl 2022 Fixed assets Cash al bank and h8nd Other GuTrEnl 88sels/li8biliti&s 14,118,326 2, 185,520 493, 657 74. 118, 326 2, 785, 520 493, 651 IT,39T,497 77.397,497 -24-
Docusign Enwebp& ID.. A19F8B5E-AFF94354-ADA4-E730BEBFBE33 ISSA FOUNDATION NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 16 Rèlai•d party transactlons Mr Z Issa and Mr M Issa were both Trustees of the charity throughout the period. During the period Mr Z15sa and Mr M Issa both tnade charitable donations to the charity. The total of the charitable donations made by the Trustees was £6,000,000, with a further £12,050 from a close family member of the Trustees. Income of £7,500,000 was received as a result of the UBS UK Donor-Advised Fund recovering Grft Aid of £1,500,000 on these donations. During the y88r th8 charity was r8charg8d costs r81ating to capital 8xp8nditure of £3,866,90812022.. £2,163,541) by Monte Developments Limited, a company in which Mr M Issa and Mr Z Issa are directors and ultimale owners. -25-