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2022-03-31-accounts

Reading and East African Community

Trustees' Report and Unaudited Accounts

31 March 2022

Reading and East African Community CONTENTS

Pages
Trustees'AnnualReport 2
IndependentExaminer'sReport 3
Statement of FinancialActivities 4
SummaryIncomeandExpenditure Account 5
BalanceSheet 6
Statement ofCashflows 7
Notesto the Accounts 8 to 13
DetailedStatement of FinancialActivities 14

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 kt 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2022. REFERENCE AND ADMINISTRAnvE D￿AlLs Company No. CE008775 Charity No. 1169146 Regirtered 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 followin8 Directors and Trustees served during the year: H. Abdullah A. Fakih R.luma Atcountants Anchor Business Solution5 Limited 25126 R8bans Close Aylesbury HP19 8RS The Trustees are resFrf)nsible 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 hJrity and hence takin8 reasonable step5 for the preve¥)tion 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 IFRS 1021. sign donbe If oft H. Abdullah Trustee 31 March 2022 Page 2

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 2022 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

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

Tolulope Fasanya AFA MIPA

Institute of Financial Accountants

Anchor Business Solutions Limited

25/26 Rabans Close

Aylesbury

HP19 8RS

31 March 2022

Page 3

Reading and East African Community STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2022

for the year ended 31 March 2022
Notes
Income and endowments
from:
Donationsandlegacies
4
Charitableactivities
5
Total
Expenditure on:
Charitableactivities
6
Other
7
Total
Netgainsoninvestments
Netincome
Netincome before other
gains/(losses)
Othergainsandlosses:
Net movementinfunds
Reconciliation of funds:
Totalfundsbroughtforward
Totalfundscarriedforward		 Unrestricted
funds
2022
£
-
13,196		 Totalfunds
2022
£
-
13,196		 Totalfunds
2021
£
10,000
30,617
13,196
600
12,043		 13,196
600
12,043		 40,617
600
22,808
12,643
-		 12,643
-		 23,408
-
553 553 17,209
553 553 17,209
553
308,952		 553
308,952		 17,209
291,743
309,505 309,505 308,952

Page 4

Reading and East African Community SUMMARY INCOME AND EXPENDITURE ACCOUNT

for the year ended 31 March 2022

Income
Gross incomefor the year
Expenditure
Totalexpenditurefor the year
Netincome before taxfor the year
Netincomefor the year		 2022
£
13,196
13,196
12,643
12,643
553
553		 2021
£
40,617
40,617
23,408
23,408
17,209
17,209

Page 5

538 io 147 •A.527 44.714 C4h •t in 39J48 39.415 1367 8.414 X4.952 .951 301.952 13

)9.505 ,9$1 For lh• y•ar •nd•¢ 31 Marth 2032 th• ¢¢w••ty tx •niw•d 477 ofthe CoryDi•J Art 2tV• fel4tkni to ynal ctyr•th And Ilinld un its Trust•• 51 M¥ch 1022 Page 6

Reading and East African Community STATEMENT OF CASH FLOWS

for the year ended 31 March 2022

Cashflowsfrom operatingactivities
Netincome perStatement ofFinancialActivities
Adjustmentsfor:
Increasein tradeand other payables
Netcash provided by operatingactivities
Netcashfrominvestingactivities
Cashflowsfromfinancingactivities
Repayment ofborrowings
Netcash(usedin)/fromfinancingactivities
Net(decrease)/increaseincash andcash equivalents
Cash andcash equivalentsat the beginningofthe year
Cash andcash equivalentsat the end ofthe year
Componentsofcash andcash equivalents
Cashand bankbalances		 2022
£
553
1
554
-
(5,833)
(5,833)
(5,279)
44,527
39,248
39,248
39,248		 2021
£
17,209
-
17,209
-
16,000
16,000
33,209
11,318
44,527
44,527
44,527

Page 7

Reading and East African Community NOTES TO THE ACCOUNTS

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

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

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.

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:
Donationsandlegacies
Charitableactivities
Total
Expenditure on:
Charitableactivities
Other
Total
Netincome
Netincome before other
gains/(losses)
Othergainsandlosses:
Net movementinfunds
Reconciliation of funds:
Totalfundsbroughtforward
Totalfundscarriedforward		 Unrestricted
funds
2021
£
10,000
30,617
40,617
600
22,808
23,408
17,209
17,209
17,209
291,743
308,952		 2021
£
-
-
-
-
-
-
-
-
-
-
-		 2021
£
-
-
-
-
-
-
-
-
-
-
-		 Totalfunds
2021
£
10,000
30,617
40,617
600
22,808
23,408
17,209
17,209
17,209
291,743
308,952

4 Income from donations and legacies

4
Incomefrom donationsandlegacies
Grants
5
Incomefromcharitable activities
Buildingfund
Madrasahfee		 Unrestricted
£
5,376
7,820
13,196		 Total
2022
£
-
-
Total
2022
£
5,376
7,820
13,196		 Total
2021
£
10,000
10,000
Total
2021
£
5,094
25,523
30,617

Page 11

Reading and East African Community NOTES TO THE ACCOUNTS

6
Expenditure oncharitable activities
Governancecosts
Accountancyandauditfees
7
Other expenditure
Premises costs
Generaladministrativecosts
8
Staffcosts
No employee received emolumentsin excessof£60,000.
9
Tangiblefixed assets
Cost or revaluation
At 1 April2021
At 31 March 2022
Net bookvalues
At 31 March 2022
At 31 March 2021
10 Debtors
Other debtors
11 Creditors:
amountsfallingdue within one year
Bankloansand overdrafts
Otherloans
Accrualsand deferredincome		 Unrestricted
£
600
600
Unrestricted
£
11,375
668
12,043
£
300,000
300,000
300,000
300,000
2022
£
187
187
2022
£
29,167
700
601
30,468		 Total
2022
£
600
600
Total
2022
£
11,375
668
12,043
£
538
538
538
538		 Total
2021
£
600
600
Total
2021
£
21,010
1,798
22,808
£
300,538
300,538
300,538
300,538
2021
£
187
187
2021
£
35,000
700
600
36,300

Page 12

Reading and East African Community NOTES TO THE ACCOUNTS

12 Movement in funds

12 Movementinfunds
Restrictedfunds:
Unrestrictedfunds:
Generalfunds
RevaluationReserves:
Totalfunds
13 Analysisofnet assetsbetweenfunds
Fixedassets
Netcurrentassets
14 Related party disclosures
Controlling party		 At 1 April
2021
308,952
308,952		 Incoming
resources
(including
other
gains/losses
)
£
13,196
13,196		 Resources
expended
£
(12,643)
(12,643)
Unrestricted
funds
£
300,538
8,967
309,505		 At 31
March
2022
£
309,505
309,505
Total
£
300,538
8,967
309,505

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 2022

for the year ended 31 March 2022
Income and endowmentsfrom:
Donationsandlegacies
Grants
Charitableactivities
Buildingfund
Madrasahfee
Total income and endowments
Expenditure on:
Governancecosts
Accountancyandauditfees
Totalofexpenditure oncharitable
activities
Premises costs
Rates
Light,heatand power
Premisesrepairsand
maintenance
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
2022
£
-
-
5,376
7,820
13,196
13,196
600
600
600
-
2,144
9,231
-
11,375
-
668
668
12,043
12,643
-
553
553
-
553		 Totalfunds
2022
£
-
-
5,376
7,820
13,196
13,196
600
600
600
-
2,144
9,231
-
11,375
-
668
668
12,043
12,643
-
553
553
-
553		 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

Page 14