2021-03-31-accounts - Reading And East African Community

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Reading and East African Community

Trustees' Report and Unaudited Accounts

31 March 2021

Reading and East African Community CONTENTS

	Pages
Trustees'AnnualReport	2
IndependentExaminer'sReport	4
Statement of FinancialActivities	5
SummaryIncomeandExpenditure Account	6
BalanceSheet	7
Statement ofCashflows	8
Notesto the Accounts	9 to 14
DetailedStatement of FinancialActivities	15

Page 1

Reading and East African Community TRUSTEES ANNUAL REPORT Reading and East African Community The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2021. REFERENCE AND ADMINISTRATIVE DETAILS Company No. CE008775 Charity No. 1169146 Registered Office 184 Oxford Road Reading Berkshire RGI 7PL Directors and Trustees The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year: H. Abdullah A. Fakih R. Juma Accountants Anchor Business Solutions Limited 25/26 Rabans Close Aylesbury HP19 8RS The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102). IIIID H. Abdullah Trustee 31 March 2021

Reading and East African Community INDEPENDENT EXAMINERS REPORT

Independent Examiner's Report to the trustees of Reading and East African Community

I report on the accounts of Reading and East African Community for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.

Respective responsibilities of trustees and examiner

The trustees (who are also directors of the charitable 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 year under the Charities Act 2011, s.144(2) (the 2011 Act) and that an independent examination is needed.

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 s.145 of the 2011 Act;
to follow procedures laid down in the general Directions given by the Charity Commission under
s.145(5)(b) of the 2011 Act; and
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 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 out in the statement below.

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 the requirements: to keep accounting records in accordance with the Companies Act 2006, s.386 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
Charities Statement of Recommended Practice: Accounting and Reporting by Charities,
have not been met: or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Tolulope Fasanya AFA,MIPA
Institute of Financial Accountants
Anchor Business Solutions Limited
25/26 Rabans Close

Aylesbury

HP19 8RS
31 March 2021

Page 3

Reading and East African Community STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2021

for the year ended 31 March 2021
Notes Income and endowments from: Donationsandlegacies 4 Charitableactivities 5 Total Expenditure on: Charitableactivities 6 Other 7 Total Netgainsoninvestments Netincome 8 Netincome before other gains/(losses) Othergainsandlosses: Net movementinfunds Reconciliation of funds: Totalfundsbroughtforward Totalfundscarriedforward	Unrestricted funds 2021 £ 10,000 30,617	Totalfunds 2021 £ 10,000 30,617	Totalfunds 2020 £ - 18,823
	40,617 600 22,808	40,617 600 22,808	18,823 600 7,876
	23,408 -	23,408 -	8,476 -
	17,209	17,209	10,347
	17,209	17,209	10,347
	17,209 291,743	17,209 291,743	10,347 281,396
	308,952	308,952	291,743

Page 4

Reading and East African Community SUMMARY INCOME AND EXPENDITURE ACCOUNT

for the year ended 31 March 2021

Income Gross incomefor the year Expenditure Totalexpenditurefor the year Netincome before taxfor the year Netincomefor the year	2021 £ 40,617 40,617 23,408 23,408 17,209 17,209	2020 £ 18,823
		18,823
		8,476
		8,476
		10,347
		10,347

Page 5

Reading and East African Community BALANCE SHEET

at 31 March 2021

at 31 March 2021
Company No. CE008775 Notes 2021 £ Fixed assets Tangibleassets 10 300,538 300,538 Current assets Debtors 11 187 Cashat bankandin hand 44,527 44,714 Creditors: Amountfallingdue within one year 12 (36,300) Netcurrent assets/(liabilities) 8,414 Totalassets lesscurrentliabilities 308,952 Net assetsexcludingpension asset orliability 308,952 Totalnet assets 308,952 Thefundsofthecharity Restrictedfunds 13 Unrestrictedfunds 13 Generalfunds 308,952 308,952 Reserves 13 Totalfunds 308,952	2020 £ 300,538
	300,538 187 11,318
	11,505 (20,300)
	(8,795) 291,743
	291,743
	291,743
	291,743
	291,743
	291,743

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 March 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 31 March 2021

And signed on its behalf by:

H. Abdullah

Trustee

31 March 2021

Page 6

Reading and East African Community STATEMENT OF CASH FLOWS

for the year ended 31 March 2021

Cashflowsfrom operatingactivities Netincome perStatement ofFinancialActivities Netcash provided by operatingactivities Netcashfrominvestingactivities Cashflowsfromfinancingactivities Repayment ofborrowings Netcashfrom/(usedin)financingactivities Netincreaseincash andcash equivalents Cash andcash equivalentsat the beginningofthe year Cash andcash equivalentsat the end ofthe year Componentsofcash andcash equivalents Cashand bankbalances	2021 £ 17,209 17,209 - 16,000 16,000 33,209 11,318 44,527 44,527 44,527	2020 £ 10,347
		10,347
		-
		(9,300)
		(9,300)

		1,047
		10,271
		11,318

		11,318

		11,318

Page 7

Reading and East African Community NOTES TO THE ACCOUNTS

for the year ended 31 March 2021
1 Accounting policies

Basis of preparation

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 Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) - Charities SORP (FRS 102) (effective 1 January 2015) - the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.

Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.

Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income. Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year.

assets

Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 8

Reading and East African Community NOTES TO THE ACCOUNTS

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.

Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.

Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.

Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Freehold investment property

Investment properties are revalued annually and any surplus or deficit is dealt with throug the Statement of Financial Activities. No depreciation is provided in respect of investment properties.

This treatment conflicts with the requirements of the Companies Act 2006 that all properties should be depreciated. The directors consider that, because these properties are not held for consumption, but for their investment potential it is necessary to adopt the requirements of the FRSSE in order to give a true and fair view.

Intangible fixed assets and amortisation

Intangible fixed assets (including purchased goodwill, patents and trademarks) are carried at cost less accumulated amortisation and impairment losses.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other 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.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other - short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 9

Reading and East African Community NOTES TO THE ACCOUNTS

Trade and other creditors

Short term creditors are measured at the transaction price. Other 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 10

Reading and East African Community NOTES TO THE ACCOUNTS

3 Statement of Financial Activities - prior year

3 Statement ofFinancialActivities-prior year
Income and endowmentsfrom: Charitableactivities Total Expenditure on: Charitableactivities Other Total Netincome Netincome before other gains/(losses) Othergainsandlosses: Net movementinfunds Reconciliation of funds: Totalfundsbroughtforward Totalfundscarriedforward 4 Incomefrom donationsandlegacies Grants 5 Incomefromcharitable activities Buildingfund Madrasahfee	Unrestricted funds 2020 £ 18,823 18,823 600 7,876 8,476 10,347 10,347 10,347 281,396 291,743	2020 £ - - - - - - - - - - Unrestricted £ 10,000 10,000 Unrestricted £ 5,094 25,523 30,617	2020 £ - - - - - - - - - - Total 2021 £ 10,000 10,000 Total 2021 £ 5,094 25,523 30,617	Totalfunds 2020 £ 18,823
				18,823 600 7,876
				8,476
				10,347
				10,347
				10,347 281,396
				291,743
				Total 2020 £ -
				-
				Total 2020 £ 10,768 8,055
				18,823

Page 11

Reading and East African Community NOTES TO THE ACCOUNTS

6 Expenditure on charitable activities

6 Expenditure oncharitable activities
Governancecosts Accountancyandauditfees 7 Other expenditure Motorand travelcosts Premises costs Generaladministrativecosts 8 Netincome before transfers Thisis statedaftercharging: IndependentExaminer's fee 9 Staffcosts No employee received emolumentsin excessof£60,000. 10 Tangiblefixed assets Cost or revaluation At 1 April2020 At 31 March 2021 Net bookvalues At 31 March 2021 At 31 March 2020 11 Debtors Other debtors	Unrestricted £ 600 600 Unrestricted £ - 21,010 1,798 22,808 2021 £ 600 £ 300,000 300,000 300,000 300,000 2021 £ 187 187	Total 2021 £ 600 600 Total 2021 £ - 21,010 1,798 22,808 £ 538 538 538 538	Total 2020 £ 600
			600
			Total 2020 £ 500 4,736 2,640
			7,876
			2020 £ 600 £ 300,538
			300,538
			300,538
			300,538
			2020 £ 187
			187

Page 12

Reading and East African Community NOTES TO THE ACCOUNTS

12 Creditors:

amounts falling due within one year

12 Creditors: amountsfallingdue within one year
Bankloansand overdrafts Otherloans Accrualsand deferredincome 13 Movementinfunds Restrictedfunds: Unrestrictedfunds: Generalfunds RevaluationReserves: Totalfunds 14 Analysisofnet assetsbetweenfunds Fixedassets Netcurrentassets 15 Related party disclosures Controlling party	At 1 April 2020 291,743 291,743	2021 £ 35,000 700 600 36,300 Incoming resources (including other gains/losses ) £ 40,617 40,617	Resources expended £ (23,408) (23,408) Unrestricted funds £ 300,538 8,414 308,952	2020 £ - 19,700 600
				20,300
				At 31 March 2021 £ 308,952
				308,952
				Total £ 300,538 8,414
				308,952

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 13

Reading and East African Community DETAILED STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2021

for the year ended 31 March 2021
Income and endowmentsfrom: Donationsandlegacies Grants Charitableactivities Buildingfund Madrasahfee Total income and endowments Expenditure on: Governancecosts Accountancyandauditfees Totalofexpenditure oncharitable activities Travelandsubsistence Premises costs Rates Light,heatand power Other premises costs Generaladministrativecosts, includingdepreciationand amortisation General insurances Sundry expenses Totalofexpenditure ofothercosts Totalexpenditure Netgainsoninvestments Netincome Netincome before other gains/(losses) Other Gains Net movementinfunds	Unrestricted funds 2021 £ 10,000 10,000 5,094 25,523 30,617 40,617 600 600 600 - - 294 1,713 19,003 21,010 1,295 503 1,798 22,808 23,408 - 17,209 17,209 - 17,209	Totalfunds 2021 £ 10,000 10,000 5,094 25,523 30,617 40,617 600 600 600 - - 294 1,713 19,003 21,010 1,295 503 1,798 22,808 23,408 - 17,209 17,209 - 17,209	Totalfunds 2020 £ -
			-
			10,768 8,055
			18,823
			18,823 600
			600
			600 500
			500
			339 2,822 1,575
			4,736
			1,218 1,422
			2,640
			7,876
			8,476 -
			10,347
			10,347 -
			10,347

Page 14

Reading and East African Community DETAILED STATEMENT OF FINANCIAL ACTIVITIES

Page 15