Registered Charity Number 1166742
## **Birmingham Arabic School**
Annual Report & Financial Statements
31[st] July 2022
## **Birmingham Arabic School Annual Report & Financial Statements**
## **Contents**
||**Page**|
|---|---|
|Trustee's Report|3|
|Independent Accountants' report|15|
|Statement of Financial Activities|16|
|Balance sheet|17|
|Notes to the accounts|18|
**2**
## **Report of the Trustees for the year ended 31[st ] July 2022**
## **Introduction**
The trustees present their annual report and accounts for the year ended 31[st] July 2022.
The Board of Trustees are satisfied with the performance of Birmingham Arabic School during the year and the position on 31[st] July 2022. The Board consider that Birmingham Arabic School is in a stable position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations. The trustees have considered the going concern assumption and are not aware of any significant doubts about the charity’s ability to continue as a going concern.
The Board of Trustees acknowledges that over the past few years the charity sector has encountered unprecedented challenges, in these times and applauds all members of Birmingham Arabic School for continuously showing unfaltering endeavours to help make it a better society.
The Board of Trustees would like to extend sincere thanks to its valued pupils, parents and volunteers for their ongoing dedication and hope to grow as a charitable entity adding value and enhancing the lives of individuals and communities.
**3**
## **Objectives, Aims and Activities of the Charity**
## **Aims and Objectives**
## **We work to:**
Advance the education of the public in the learning and study of the language of Arabic, Arabic culture, languages related to Arabic and languages in general through both extra-curricular classes, state education system, post-secondary education and private education establishments.
## **Strategy**
Birmingham Arabic School believes that the success of our community inherently lies in the achievement of our children.
We feel strongly that real academic progress is founded on a secure platform of all-round healthy development and aided by positive role models who embody the values we aspire our children to have.
This all-round development includes both the intellectual and physical aspect of emotional and spiritual development. We believe promoting these aspects of humanity will catalyse community cohesion, helping to create and sustain communities where all members are valued and work together for the common good.
Our aim is to promote a caring, secure and nurturing environment instilling a strong sense of awareness of the universality of the Islamic faith
We will empower children with the desire to learn about and celebrate diversity through each other's experiences, achievements and contributions to the local community and through a focus on the common good for all.
Our contribution to society and social cohesion is well recognised due to our successful work with the, local schools and the local community groups.
Therefore, part of the school strategy is to continue delivering its teachings despite all the challenges faced during the COVID pandemic.
**4**
## **What we do:**
The school aims to provide moral and academic excellence in a caring and secure environment. We believe that through the partnership of good governance, dedicated staff and caring parents we can provide a balanced opportunity for the realisation of our children's full potential.
Our school values prevail through everything we do: in the moral, the academic and the professional.
These values foster a responsible and caring attitude in our pupils, towards the fellow members of our community and society at large. This includes good manners and behaviour towards parents, as well as a deep respect and sense of duty towards the world we inhabit and the resources.
Birmingham Arabic School provides a sound Arabic and Islamic education. Our curriculum aims to equip children with a solid foundation to prepare them for success in whatever they wish to do, time management is key to success.
Our fees are set at an affordable and reasonable level to ensure the financial viability of the school and at a level that is consistent with our aim of providing an excellent education to our pupils. Also, we take into consideration the situation of parents with limited financial resources or those with more than two children in the school, where certain discounts will apply depending on the individual case.
Distance learning was introduced for those who live too far from the school or even outside Birmingham city, and for those who cannot offered a place due to full classes. This scheme proved to extremely helpful for those who participated. Since it provided them with a mean to receive reasonable level of education.
Our school welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that our school will be able to educate and develop a prospective pupil to the best of their potential. Assessments are undertaken to determine which level the pupil could be placed in as the school is based on academic level rather than age. A pupil goes through to the next stage by passing the three term exams. The levels are Reception A through to A- level.
An individual’s economic status, gender, ethnicity, or race do not form part of our assessment processes. The school is committed to safeguarding and promoting the welfare of our pupils and expects all staff and volunteers to share this commitment.
Parents are given regular information about their child’s academic progress through parent evenings.
Strive to continue delivering high quality teaching even during challenging times like the pandemic. To achieve this goal, the school very quickly has developed its online teaching system including the teaching materials and the delivery mechanism. All resources were provided including computers, laptops, educational links, and teacher training sessions.
**5**
## **Activities during the year**
- 1- During this year and with the COVID pandemic related issues, and to ensure stable teaching process with no interruptions or breakages in between, the school adopted full online teaching for the first two terms. Where we have significantly benefited from the experience that we have developed during the first lock down period.
- 2- With extensive negotiation with Joseph Chamberlain College Principle, we managed to secure access to Joseph Chamberlain College (JCC) building during the last term of this year and carry out face to face teachings.
- 3- After almost two years of online teaching and coming back to face-to-face teachings, engage with the parents to ensure that they provide their children with all the requirements for the face-to-face teaching and to follow all the health and safety guidelines.
- 4- Carry out certificate delivery process for the last year GCSE students, were certificates placed in a recorded delivery envelope and posted to parents.
- 5- Carry out extensive search for funding calls, participate in the seminars and zoom meetings of the funding organizations. Made one funding application, but it was not successful.
- 6- Around early June, we had a meeting with JCC Principle and were informed that due to their own restraints, Joseph Chamberlain College building will no longer available for weekend lettings, therefore, all weekends’ schools including Birmingham Arabic School will have to find another alternative for their teaching venues starting from September 2022.
- 7- Immediately after this meeting we started surveying all colleges, secondary schools and large building that can be used for our school from September 2022.
## **Achievements:**
The main achievements during this year are:
- During the first two terms of this academic year: to avoid any disruptions related to COVID pandemic issues and ensure continuous and sustainable teaching process, the school has opted for the online teaching method. During these two terms the school has developed its online teaching system, including: 1- the provision of the required number of zoom licences for all teachers and admin staff (around 50 licence).
- Every class has two teachers using one zoom link, this zoom link is emailed separately to the parents of each class in advance every Saturday, where it will be used to carry out the teaching process deliver the teaching materials.
- With many parents having more than one child in the school, which created challenges to them trying to provide the required equipment and space for all their children at the same time. Therefore, the school has opted for two teaching periods during the day, where classrooms from year one to year three will start from 9-12 am and the rest will carry on from 12-4 pm. This will allow parents to provide each group age with what they need.
- Establish Sunday zoom classes for receptions.
- The students carried out their homework tasks, scanned it, and returned to the teachers via emails for marking.
- The school has developed all the required teaching materials in terms of Power points, Words, pdfs and audio files to be delivered through this online teaching, and all the required logistics for delivering this material.
- We successfully achieved all the safeguarding requirements and ensuring the staff and children safety through these zoom sessions.
**6**
- With extensive negotiation with JCC Principle, we managed to secure access to JCC building during the last term of this year and carry out face to face teachings.
- During this period, special attention was paid to the GCSE stage through extra teaching slots, more mock tests and revision sessions which led to well-trained students and highly confident in handling GCSE exam techniques and environments. Also, arranged the full face-to-face GCSE exams supervised by EDXCEL approved invigilators, which were very happy and satisfied by the management, time keeping and organizations of the exam’s procedures.
## **Challenges:**
Uncertainty was the main challenge that the school faced during this academic year:
- 1- To function during extremely stressful conditions caused by the pandemic for everyone, including parents, teachers, and management staff.
- 2- With COVID-19 risks the JCC College was unable to decide if Birmingham Arabic School can come back to the college building in September 2022 for the coming academic year to resume its face-to-face teaching.
- 3- Making plans and adaptions to go back to smooth and effective face-to-face teaching since JC college allowed the school to go back during the last term of this academic year.
- 4- With the economic climate caused by COVID, some parents still faced difficulties to pay the school fees, which we had to make some adjustments for them so that their children can carry on their education.
- 5- A major challenge that we faced this year is that JC College has informed all schools which operate on its premisses that from September 2022, the college will stop offering its premisses for weekend schools. Therefore, we are faced the challenge of finding a building that can offer us all the facilities we need, which proved to be very difficult.
## **Our Impact and value to the community**
- The development of efficient and cost-effective online teaching program has allowed many parents to benefit from this teaching system without the need to travel and to provide for other requirements.
- School fees were adjusted to reflect parents’ economical situations in such difficult times.
- The provision of free of charge, quality online teaching for 338 students during the pandemic hard and stressful time had a major positive impact on the students’ families and added good value for the community.
- Many parents have benefited from our school teaching system even from outside Birmingham area, like Wolverhampton, Coventry, and London area.
- With the come back to face-face teaching on the last term of the academic year made a lot of difference to many families, since their children were happier to go back and enjoy direct teaching, meeting with their friends and have happy times.
**7**
## **Building for the Future – 2022 into 2023**
- Learning from the lockdown experience, to further develop and improve the online teaching process through:
- 1- Enhancing the teaching materials to be more suitable and effective for this kind of teaching system.
- 2- Further improve teacher experience in delivering direct online teaching through training on how to use the best available online teaching platforms and how to create positive and productive interactive teaching environment.
- 3- Establish two parallel running teaching systems:1- one for the face-to-face teaching, 2- another one for parents who cannot join the face-to-face system and they want to carry on with the online system. This will provide the school services to a wider range of the community.
- Since Joseph Chamberlain College will be no longer available for our school from September 2022, continue to search for a new venue for the school that can provide all school needs and allows or future school expansions.
- Carry on searching and applying for funding opportunities to further support school activities and expansion.
- Conduct a feasibility study to assess the ability of the school to provide teaching for special needs children, including providing qualified teachers, providing the suitable environment and teaching materials.
**8**
## **Public benefit that is provided by the charity.**
In setting out our objectives and planning our activities the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit. The main focus of our activities is intended to provide the facilities for the community of Birmingham.
## **Name, registered office and constitution of the charity**
The full name of the charity is Birmingham Arabic School. The full name of the charity is Al Kawthar Academy
|Charity Number|1166742|
|---|---|
|Registration Date|26thApril 2016|
|Principle and Registered Address|54-68 Bissell Street|
||Birmingham|
||B5 7HP|
||Email:birmingham-arabic-school@live.co.uk|
|Board of Trustees|Dr Saad Mustafa Mahmoud|
||Dr Adel Abdul Sabir Mohamed Sabir|
||Dr Mohamed El Hamamy|
|Accountants|Virtus Financial Services|
||Chartered Certified Accountants|
|Bankers|Lloyds Bank, Birmingham|
## **Structure, Governance and Management**
The current working trustees are responsible for the general control and management of the charity. These members give their time freely and receive no remuneration or other financial benefits. The members have a quarterly meeting and are responsible for all decisions taken in relation to running the Birmingham Arabic School and activities provided by the charity.
The day to day running of Birmingham Arabic School is undertaken by the trustees and the head teacher who oversees educational, pastoral and administrative functions with four administrative representatives to:
- Ensure the vision and values of the Birmingham Arabic School is reflected
- Review and benchmark the School's curriculum, teaching practices and examination results.
- Ensure the school is compliant to the Independent School Standard regulations – guidance given by the National Resource Centre for Supplementary Education
- Ensure the range of co-curricular activities available to our pupils is stimulating and challenging.
**9**
## **Risk Management**
The Trustees and are satisfied that all systems are in place or arrangements are in hand to manage the risks that have been identified, having ensured segregation of duties. In particular Insurance cover is in place and the finances of the school are kept under review.
Appropriate Disclosure and Barring Service (DBS) checks, supported by regularly reviewed policies are made for all those who work with children or other vulnerable groups within the school.
## **Health and Safety**
The health and wellbeing of our team and pupils remains a priority, measures have been put in place for regular monitoring and assessments to keep our members and guests safe.
Also, during this online teaching, safeguarding students during class times was taken very seriously through:
- 1- Safeguarding regulations were issued to all parents regarding how to deal with the classes and teachers.
- 2- Teachers were trained on how to apply these safeguarding regulations and what to do in cases of possible breach of these regulations.
- 3- Two teachers were assigned to each online classroom, where one teacher is responsible for carrying out the main teaching duties, and the other teacher is responsible for the safeguarding task.
- 4- Also, during the come-back-to-face teaching during the last term of this academic year, the school placed all the required measures to ensure clean and safe working environments for all children, teachers and staff.
**10**
## **Nature of the Governing Document and constitution of the charity**
The Charity is a charitable incorporated organisation and governed by the governing document. There are no restrictions in the governing document on the operation of the charity or on its investment powers, other than those imposed by charity law.
## **Recruitment and appointment of new trustees**
The process involves determining the optimum skills, knowledge and experience mix for the: current operational climate and needs, identifying potential members, promoting and explaining the activities of the Board to potential members. Quality, characteristics and qualifications are decided upon when selecting members of the Board of Trustees.
## **Relationships between the charity and related parties**
The induction of new Trustees would include an explanation of the function of the Board of Trustees and appointing a mentor for the new member to the Board of Trustees. An overview of the organisation and its activities is provided. On-going appropriate training is recommended.
## **The contribution of volunteers**
Over the past years with face to face teaching the Birmingham Arabic School had many volunteers who were involved in the school activities and willingly gave their time freely. But with the lockdown restrictions and the online teaching, the role of the volunteers became extremely limited, therefore the school did not have any volunteers this year. Also, the Trustees are professionals in their respective fields and they, together with the office bearers, continue to manage the association on a completely voluntary basis with guidance from the Charity Commission.
**11**
## **Financial Review**
## **Overview**
The charity continues to benefit from a steady income stream from its charitable activities (education), the charity raised £66k (2021: £62k). All of the income comes primarily from the charitable activities (education).
Over this past period, the charity spent £65k (2021: £80k). This is largely due to an increase in our charitable activities.
The Statement of Financial Activities show incoming resources for the year of a net inflow of £1K, (2021: (£18k), the majority of the expenditure is spent on delivering the charitable activities as stated in the Charity’s aims and objectives.
## **Support costs**
Support costs are vital for effective charity management to ensure our beneficiaries benefit from effective charitable activities. The charity invests appropriately in its infrastructure to prevent loss, fraud of entrusted funds. We aim to maintain a sensible ratio of charitable activity to support costs to guard the charity against over-ambition.
## **Reserves Policy**
## **Definition**
The term "Reserves" is used to describe that part of a charity's income funds that is freely available for its operating purposes not subject to commitments, planned expenditure and spending limits. Reserves do not include endowment funds, restricted funds and designated funds.
The trustees have resolved to establish reserves to provide for future activities, and to provide funding for the expected expenditure for six months ahead. The policy on reserves is that the existing assets are retained to produce income which is wholly utilised to support existing activities. There is no intention in the long term to either increase or reduce the capital significantly. This policy is justified in that it is necessary to preserve income at the present levels in order to maintain the activities of the charity.
The principal funding sources is income generated through charitable activities primarily. The board of trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations in respect of each fund.
## **Availability and adequacy of assets of each of the funds**
The trustees are satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
**12**
## **Free Reserves**
The Charity as at 31[st] July 2022 had free reserves of £55k (2021: £54k). The charity’s focus is on cashflow for financial sustainability. The charity’s activities are managed in accordance with cash-flow available.
The trustees are monitoring forecasts of income and expenditure planned, assessing future needs, opportunities and contingencies.
## **Transactions and Financial position**
The financial statements are set out on pages 16 to 23.
The financial statements 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 Section IA of FRS102 and the Companies Act 2006. As stated in the introduction to this report, the trustees consider the financial performance by the charity during the year to have been satisfactory.
## **Trustees' Responsibilities**
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the best practice and prepare the accounts according to the Statement of Recommended Practice and Section IA of FRS102.
In particular, charity law requires the Directors/Trustees, if they prepare accounts on an accruals basis, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Trustees are - required to :
To prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
**13**
The Directors/Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the charity legislation. 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. The Directors/Trustees are also responsible for the contents of the Trustees' report, and the accountant preparing the accounts has no responsibilities in relation to the Trustees' report.
## **Audit Exemption**
For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for complying with the requirements of the Act with respect to the accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies’ subject to small companies’ regime.
This report was approved by the board of trustees on 29[th] May 2023
## **Dr Saad Mustafa Mahmoud**
## **Trustee**
**14**
## **Report of the Independent Examiner to the trustees on the accounts of the Charity for the year ended 31 July 2022**
We report on the financial statements of the charity on pages 16 to 23.
Respective responsibilities of directors and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income did not exceed £1,000,000 and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the accounts under section 145 of the 2011 Act
to follow the procedures laid down in the general Directions given by the Charities Commission under section 145(5)(b) of the 2011 Act
to state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records, It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set in the next statement.
## **Independent Examiner's Statement**
In connection with my examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect of the requirements:
to keep accounting records in accordance with section 386 of the Companies Act 2006 and
to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities.
The Examiner's relevant professional qualification is: Chartered Certified Accountant
## **Virtus FS**
Chartered Certified Accountants Birmingham
The date upon which this report was completed is: 29[th] May 2023
**15**
|**Birmingham Arabic School**|||||||
|---|---|---|---|---|---|---|
|**Charity Number: 1166742**|||||||
|**Statement of Financial Activities**|||||||
|**for the year ended 31 July 2022**|||||||
|
||**Unrestricted**|**Restricted**|
**Total**|**Total**||
|||**Funds**|**Funds**|**Funds**|**Funds**||
||**Notes**|**2022**|
**2022**|
**2022**|**2021**||
|||**£**|
**£**|
**£**|**£**||
|**_Income_**|||||||
|Donations|3|-|-|
-|-||
|Charitable Activities||66,392|-|
66,392|61,527||
|**Total Income**||**66,392**|**-**|**66,392**|**61,527**||
|**_Expenditure_**|||||||
|_C_haritable activities|4|65,199|-|
65,199|79,645||
|**Total Expenditure**||**65,199**|**-**|**65,199**|**79,645**||
|**Net Income and Net**|||||||
|**Movement in funds for the year**||**1,193**|**-**|
**1,193**|**(18,118)**||
|**Reconciliation of funds**|||||||
|_Total funds brought forward_||54,142|-|
54,142|72,260||
|**Total Funds carried forward**|9|**55,335**|**-**|**55,335**|**54,142**||
|All activities derive from continuing operations|||||||
|The Statement of Financial Activities includes all gains and losses recognised in the||||year.|||
|**The notes on pages 18 to 23 form an integral part of these accounts**.|||||||
|||||**16**|||
## **Charity Balance Sheet Birmingham Arabic School Charity Number: 1166742**
## **Balance Sheet as at 31 July 2022**
|**Notes**
**_The assets and liabilities of the charity :_**
**Fixed assets**
Tangible assets
7
**_Total fixed assets_**
**Current assets**
Debtors
8
Cash at bank and in hand
**_Total current assets_**
**Liabilities:-**
Creditors falling due within one year
9
**_Net current assets_**
**_Total assets less current liabilities_**
**Net assets including pension asset / liability**
**_The funds of the charity :_**
Unrestricted income funds
Restricted income funds
**Total charity funds**
10|5,983
51,611|**2022**
**£**
325
325
55,010
55,335
55,335
55,335
-
55,335|1,565
55,021|**2021**
**£**
649|
|---|---|---|---|---|
|||||649
53,493|
||57,594||56,587||
||(2,583)||(3,093)||
|||||54,142|
|||||54,142|
|||||54,142
-|
|||||54,142|
**Dr S M Mahmoud Trustee**
Approved by the board of trustees on 29[th] May 2023
**The notes on pages 18 to 23 form an integral part of these accounts.**
**17**
## **Notes to the accounts**
## **1. Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation of the accounts**
The financial statements 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 Section IA of FRS102 and Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The charity has taken advantage of the exemption from the requirement to produce a cash flow statement.
Birmingham Arabic Schools meets the definition of a public entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction unless otherwise stated in the relevant accounting policy note.
## **b) Preparation of the accounts on a going concern basis**
The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern.
There were no key judgements made by the trustees which have a significant effect on the accounts.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next accounting period.
## **c) Income**
Income is recognised where the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
## **d) Expenditure and irrevocable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities, includes the costs undertaken to further the purposes of the charity and their associated costs.
- Raising funds, where the charity incurs costs of fundraising costs.
- Support costs of activities for charitable purposes comprising any costs including salary costs of any staff that are involved with supporting the charitable activities.
- Governance costs shall include all expenditure directly incurred in the management of the charity's assets and compliance with charitable and statutory requirements.
The methods and principles for the allocation and apportionment of all costs between the different activity categories of resources set out above are:-
**18**
## **Notes to the accounts (continued)**
There are a number of costs, where it is impracticable to allocate these costs precisely between administration and charitable expenditure and the trustees have allocated such costs on the basis of reasonable estimates as follows: On the basis of salary costs and estimated time spent on different activities.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **e) Tangible fixed assets**
Individuals fixed assets costing £500 or more are capitalised at costs and depreciated over their estimated useful economic live on s straight line basis.
Computer and Office equipment 25%
## **f) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **g) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments in short term deposit accounts.
## **h) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result 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.
## **i) Taxation**
The charity meets the criteria and tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore meets the definition of a charitable company for UK taxation purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within the categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. No corporation tax liability arises in the accounts.
## **j) Funds Accounting**
Funds held by the charity are:
- § Restricted funds – these are funds which are subject to specific conditions imposed by the donors or when funds are raised for a particular restricted purpose. The Charity at present holds no restricted funds.
- § Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
**19**
## **Notes to the accounts (continued)**
**1. Surplus for the financial year**
|||||**2022**|**2021**|
|---|---|---|---|---|---|
|This|is stated after crediting:|||**£**|**£**|
|Revenue from ordinary activities||||66,392|61,527|
|**2.**|**Expenses paid to trustees**|||||
|||||**2022**|**2021**|
|||||**£**|**£**|
|The|aggregate amount of expenses paid to trustees was|||Nil|Nil|
||**3.**
**Income**|||||
||||**2022**||**2021**|
|||**Educational Services**|**Total**||**Total**|
|||**£**|**£**||**£**|
|**_Income from_**||||||
|Donations||-|-||-|
|Charitable Activities||66,392|66,392||61,527|
|**Total Income**||**66,392**|**66,392**||**61,527**|
**20**
## **Notes to the accounts (continued)**
|**_Expenditure_**
**_Charitable activities_**
65,199
**Total Expenditure**
65.199
**Net Income by activity**
**1,193**
**4.**
**Analysis of charitable expenditure by activity**
**Nature of charitable expenditure**
Activities undertaken directly
Support costs of charitable activities (see Note 5)
**Total charitable expenditure analysed by activity**|65,199|66,199
79,645
65,199
79,645
**1,193**
**(18,118)**
**Educational**
**Services**
**Total 2022**
**Total 2021**
**£**
**£**
**£**
56,302
56,302 73,662
8,897
8,897 5,983|
|---|---|---|
||65.199||
||**1,193**||
|||**65,199 65,199**
**79,645**|
**5. Analysis of Total Support Costs by Activity**
|**Nature of support costs**
Educational Support Costs
Governance Costs
**Total support costs analysed by activity**|**General Support**
**Total 2022**
**Total 2021**
**£**
**£**
**£**
7,187
7,187
4,362
1,710
1,710
1,621|
|---|---|
||**8,897**
**8,897**
**5,983**|
**21**
## **Notes to the accounts (continued)**
## **6. Staff Costs and Emoluments**
The Charity had no employees in 2022 and 2021.
Volunteers have donated an unquantifiable amount of time to Birmingham Arabic School of which is impossible to reflect.
There were no fees or other remuneration to the trustees.
There were no employees with emoluments in excess of £60,000 per annum.
## **7. Tangible Fixed Assets**
## **Fixtures, fittings and Total office equipment**
## **Cost**
|As at 1st August 2021
Additions
**As at 31st July 2022**
**Accumulated Depreciation**
As at 1st August 2021
Charge for the period
**As at 31st July 2022**
**Net Book Value**
**As at 31st July 2022**|1,298
1,298
-
-|
|---|---|
||**1,298**
**1,298**|
||(650)
(650)
(325)
(325)|
||**(975)**
**(975)**|
||**325**
**325**|
|**As at 31st July 2021**|**649**
**649**|
|**8.**
**Debtors:**
Trade Debtors – Student Fees
**9.**
**Creditors: amounts falling due within one year**
Trade creditors
Other creditors|**2022**
**2021**
**£**
**£**
5,983
1,565
**2022**
**2021**
**£**
**£**
2,583
2,500
-
593
**2,583**
**3,093**|
|---|---|
**22**
## **10. Analysis of assets and liabilities representing funds**
|**At 31 July 2022**
Tangible Fixed Assets
Current Assets
Current Liabilities
**At 31 July 2021**
Tangible Fixed Assets
Current Assets
Current Liabilities||**Unrestricted**
**funds**
**£**
325
57,594
(2,583)
**55,335**
**Unrestricted**
**funds**
**£**
649
56,587
(3,093)
**54,142**||**Restricted**
**Funds**
**£**
-
-
-
**-**
**Restricted**
**Funds**
**£**
-
-
-
**-**|
|**Total**
**Funds**
**£**
325
57,594
(2,583)|
|---|---|---|---|---|---|---|
|||||||**55,335**|
|||||||**Total**
**Funds**
**£**
649
56,587
(3,093)
**54,142**|
||||||||
## **The individual funds included above are :-**
|_C_haritable activities|**Funds at**
**Movements**
**Transfers**
**Funds at**
**2021**
**in**
**Between**
**2022**
**Funds**
**Funds**
**as below**
**£**
**£**
**£**
**£**
54,142
1,193
-
55,335|
|---|---|
||**54,142**
**1,193**
**-**
**55,335**|
## **Analysis of movements in funds as shown in the table above**
|**Incoming**|**Outgoing**|**Gains &**|**Movement**|
|---|---|---|---|
|**Resources**|**Resources**|**Losses**|**In funds**|
|**£**|**£**|**£**|**£**|
|66,392|65,199|-|1,193|
|**66,392**|**65,199**|**-**|**1,193**|
## **11. Endowment Funds**
The charity had no endowment funds in the year ended 2022 (2021: £Nil).
**23**