2023-03-31-accounts - The Aziz Foundation

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AZIZFOUNDATION BUILDING COMMUNITIES TOGETHER The Aziz Foundation Annual Report and Financial Statements For the year ended 31 March 2023 Charity Regislralion Number 1169558 The Aziz FnOI10n I

CONTENTS Report5 Reference ond administration information Truslees, report Independent ouditor's reporl 10 Financial statements statement of financial activities Balance sheet stalement of cash flows Principal accounting policies Noles lo the financial stolements 15 19 Azo FOundalK I I

REFERENCE AND ADMINISTRATION INFORMATION Board of Truslees Asrf Haroon Aziz (Chairl Hussein Haroon Aziz Rahima Aziz Talat Hobib Malik Principol office 16 Babmaes Street London SWIY 6HD Charily registralion number 1169558 Auditor Buzzacoll LLP 130 Wood Streel London EC2V 6DL Banker5 Barclays Bank I Churchill Ploce Canory Whorf London E145HP The Azii Foundolion12

Tru$lee$' report for the year to 31 March 2023 TRUSTEES, REPORT The Trustee5 presenl their slalutory report, togelher with the financial 5tatemenls of The Aziz Foundation. for Ihe year to 31 March 2023. Governance and Management Constitution The Azz Foundotion Ithe"Foundation"I commenced its operalions on 14 Augusl 2015 following the adoption of its conslilulion and was regislered as a Charitable Incorporated Organisation ICIOI wth the Chorify Commission on 10 October 2016. charity registration number 1169558. Board of Trustees As al 31 March 2023, the Fovndolion has four Trustees who have served Ihroughout the period covered in this report. They are named in the reference and administrative informolion on page 2. The constitution requires a minimum of three Trustees to be active during each reporting year. The Trustee5 do nol receive ony remuneration for their work as Trustees. New Trustees may be appoinled by the Board of Trustees. Proposed new Truslees would be required lo meet the exi51ing Board, and if opproved, would be provided with The Aziz Foundation constitution and brought up fo dale on Ihe Foundation's grant making processes, annual reportlsl, relevant Charity Commission policies and charity law. The Trustees are responsible for overall strategy ond specific time-sensisive priorities across the Foundalion's grant making work. They receive updates on finances and performance, as well os informalion on the impact of major grants. They ore also provided with updates on charity low and matters relating lo the adminislration of the Foundation. The Trustees are responsible for preparing Ihe Trustees, report ond financial statemenls, which must comply wilh statutory reqvirement5 and Ihe Foundalion's governing documenl. The Trustees consider that they comprise Ihe key management of the charity in charge of direcling and controlling. running and operating Ihe charity on a day-t doy bosis. The Trustees maintain the Foundation's rec(xds and information systems and manage the financial affairs of the Foundation. They are responsible for the safeguarding of the Foundation's assets and for taking reasonable Steps for the detection and prevention of fraud and other irregularities. The Founuulion13

Trvstees, report for the year to 31 March 2023 Governance and Management Iconlinuedl Management The Aziz Foundation deliversa dynamic progromme of philanthropicwork that awards scholarships, occasional grants and sponsors internships. The implemenlolion of the F(wndation'5 work progromme is delegaled to the staff who work closely with the Chair of Trustees. The staff are responsible for delivering the Fovndation's slrolegic objectives and priorities, implemenling its work programmes, and for Ihe monitoring and managemenl of grants and awords. Policies and processes for internal organisational development and exlerr)al granl making hove been set up, and all staff have been Irained in these policies. The bulk of the work is the management of the Masters Scholarships programme and the inlernships scheme. Three Progromme managers, whowork closely as a team and are in regvlor communicolion with Ihe Choir of Ihe Trustee5, carry this out. Since January 2023. the Programme Managers hove been supported byo Communications Manager ond an Internships Monager. Related parties During the yeor, the Foundolion received donations. both in the form of cash and in- kind support. from Miflats Basildon, Miflats Croydon, Coventry House, Croydon Investment, Basildon Properties, Bracknell Properties ond Trocadero (London). Risk Management Through formol governance policies and procedures. corefully moniloring programmes and ensuring that controls exist over key financial systems. Ihe Foundotion has established effective ways to mitigate and monage risk5 to ils work. Further, afler examining operational risks faced by Ihe Foundation at different levels of governance ond manogement, measures, procedures and checks have been put in place lo ensure Ihat grant moking and scholarships are monitored os necessary. For example, before grants are awarded the Foundolion will carry out detailed due diligence on applicanl organisalions and their projecls, including speaking to ony current funders of the opplicants. Once gronts are awarded, where possible the Foundation slaff visit grantees, premises. projects and evenls lo inspect the work Ihal the Foundalion has awarded granls towards. Also, prior to making the final grant award. the Foundation requests progress reports from the grantees. Similarly, before awording o scholarship, the Foundation's staff conduct dve diligence on applicants including reviewing evidence of Iheir student debt and qualification5 as well a5 inleTviewing them ond obtaining references. After a scholarship is awarded, recipients are expected to submit reports from their university confirming their progres5 on Iheir course. The Aiz FoundcJlion 14

Truslees, report for the year to 31 March 2023 Governance and Management Icontinuedl Risk Management Icontinuedl Any risk around internships is managed through scrvliny of the host organisalion, interviewlsl wilh prospeclive interns and obtaining references for the interns. Host organisations also submit regular reports on the interns and the Foundation's stoff will meel separalely wilh the intern lo discuss their experiences during the internship. The Trustees have examined the risks faced by the Foundotion and are salisfied that syslems are In place to manage and miligate exposure to those risks. statement of Trustees, Responsibilities Th& Trust&es are responsible f(J preparing Ihe Tru5tees' report and financial slatements in accordance with applicable law and United Kingdom Accounling Standards Iunited Kingdom Generally Accepted Accounting Praclicel. The law applicable to charities in England and Wales requires the Trustees to prepare financial slatements for each financial year which give a true and foir view of the state of affairs of the charity and of the income and expenditure of Ihe chority for thot year. In preparing Ihese financiol stalements, the Trustees are required to.. selecl suitable accounting policies ond then apply Ihem consistently; observe established meth<xls and principles in Accounting and Reporting by Charitie5, Stalement of Recommended Praclice, applicable to charilie5 preparing Iheiraccounts in accordance with Ihe Financial Reporting Standord, applicable in Ihe United Kingdom IFRS 1021: make judgements and estimates that are reasonable and prudent,. state whether applicable Uniled Kingdom Accounling Standards have been followed, subjecl to any material departures disclosed and explained in the ffnoncial slatemenls; and prepare the financial statements on the going concern basis, unless it is inappropriale lo presvme Ihal the charity will continue in operation. The Trustees are responsible for keeping proper accounting record5 Ihal disclose with reasonable accuracy at any time Ihe financial position of the charity and enable Ihem to ensure thol the financial slalemenls comply with the Charities Act 2011. They are also responsible for sofeguarding Ihe assets of the charity and hence for taking reasonable steps for the detection and prevention of fraud and other irregularities. Thè Azlz Foundation 15

Trustees, report for the year to 31 March 2023 Governance and Management Icontinuedl statement of Trustees, Responsibilities {continuedl In so for as the Trustees are aware.. there is no relevant audil information of whlch the charity's audifors are unaware., ond the Trustees hove laken all steps Ihal they oughl to have taken to make themselves aware of any relevanl audit information and lo establish that the charity's auditors are aware of that informalion. Charitable Objectives and Policies Choritable Objectives The Foundation is a grant making charity and supports purposes which are within those lisled in Ihe Charities Acl 2011. It assists individuals who wll ultimately benefil communities thot the Foundation supports. The Foundalion makes grants in accordonce with ils constilulion and granl making policies. The objectives of the Foundotion are lo further such exclusively charitable purposes for the public benefit according to the law of Englond and Wale5 OS the charity Truslees shall determine in their absolute discretion. Trustees take core to ensure that where grants are not made to regislered charities. they are always made for charitable purp05e5 and the use of any grant5 made is monitored closeW. When reviewing the Foundalion's aims and objectives. the Truslees consider the potential benefit to the public and the furthering of the Foundalion's mission lo supporl disadvantaged communities. The Foundation is refining how impact assessment is incorporated into its work, always oiming to learn from those it seeks lo benefit. Grant Making Policy At the end of each financial year, the Trusfees review the Foundalion's grant moking policy for the forthcoming year. They consider the Foundation's overall grant making strategy os required, including long-lerm and shorl-lerm issues thal may affect the Foundotion's grantees. The Trustees award grants only to UK universities. registered charities and organisalions running prqects for charitoble purposes in accordance with the Chorilies Act 2011. Those applicants not registered as a chority are reviewed on a case-by-case basis, considering the slotus of the appliconl, ils ganIsational structure, and the requesled purpose of the grant. The AZIL Foundolion | 6

Truslees. report for the year to 31 March 2023 Charitable Objectives and Policies {continuedl Grant Making Policy Iconlinuedl The Trustees have ultimate responsibility for all gronl moking decksions in line with the Foundation's charilable purposes and any restrictions ogreed with funding partners. However, the Trustees may delegale certain decision-making responsibilities to the Foundation's staff. The Truslees reserve Ihe righl not lo approve ony recommendation or nominalion if, afler due considerotion. they determine Ihal the resulting grant would not be charitable OT falls outside its priorilies. Terms and condilions for grants are drafled by the Foundation's Programme Managers in discu55ion with grantees. Funding Priorities The Foundolion's grant making during this financial year has focused on awarding 5cholar5hips to those looking lo study Moslers Degree5. This Moslers Scholarship scheme covers tuition fees for British Muslims studying Masters courses al Universities in the UK. The aim is lo support emerging leoder5 who have a high level of commitment to the communily as well as aspirations to leod and inspire in Iheir respective field. In Pcfrlicular, we are supporting people who can.. positively transform perceptions of Islam ond Muslims in Ihe UK by promoting understanding ond engagement., and facilitate better representation and contribulion of Muslim communilies to civil 50ciely. The Foundation's scholarships progromme is designed to channel the Foundation's efforls into developing leadership within Muslim communities thol is bolh credible and efleclive, with the professional and academic skillset to be al the forefront of calaly5ing enduring change. The current priority areas are.. Law. Media and Journalism. Policy, Technology, Suslainabilily and Arts and Culture. The Maslers Scholarships programme represenls a major initialive dedicated exclusively to Brilish Muslim communities.11 builds on the successes of the Foundation's existing scholarships schemes a fact acknowledged by the Board - and further widens the pool of British Muslims benefited by the Foundation. This exponsion of the programme slems from Ihe need to supplement o focus on specific academic areas in which there is an underrepresentalion of British Muslims. with an opproach Ihat reaches out lo greater numbers acr055 disciplines. This is a slrategy grounded in the principle that leader5 in Ihe community make an impacl in various professional capacities and walk5 of life. During the financial yeor, 74 scholarships were awarded to studenls starting postgraduate course5 at 22 different UK vniversilies. The A2ii Founcjolion 17

Trustees. report for the year to 31 March 2023 Charitable Objectives and Policies Icontinuedl Funding Priorities Icontinuedl This year the Foundotion continued lo odd more universities lo ils lisl of Preferred Partner inslitutions. The Foundation has been building slrong ar)d close relotionships with universities lo help ensure campuses are frierldly and inclusive space5 for Muslim sludents and is pleased to have welcomed around ten new universities as partners. Additionally, the Foundation focilitated 32 internships and opprenticeships. These internships are opportunities for British Muslims to secure work experience in induslries in which they are Iraditionally underrepresented, 50 Ihey feel encouraged lo consider careers in Ihese industries, and Successfully compete for jobs. The Foundation has been prioritising inlernships wilh media organisations and has so far offered internships ol news outlets including the Evening Slandord. the Financial Times and The Bureau of Invesligalive Journalism. More broadly, the Foundation is also awarding internships in areas oligned wilh ils scholarship subjecl areas such as Law and has recenlly sponsored internships at Garden Court Chambers. Fundraising Statement The charity does not actively solicit donations ond therefore is not regislered with the Fundraising Regulator or does not subscribe to any fundraising code of practice. During 2022123, the charity received no complaints aboul fundraising activilies. Aclivlties. Performance and Achlevements Review of Activities The Foundation's work is broodly made up of sponsored inlemships paid to host organisations, tuition fee only scholarships awards, paid directly lo Ihe university, and some grants. Grants Awarded 53 grants were awarded during 2022123. This includes grants for 32 inlernships and grants lo other organi5alions such os the National College for Ihe Training of Journalists, Journalism Diversity Fund and the Yovng Westminster Foundalion. The Azr£ FnoI1 18

Trvstees, report for the year lo 31 March 2023 Financial Review Results for Ihe financial yeai A summary of the year's results can be found on poge 15 of Ihis reporl and financial slalements. During Ihe year ended 31 March 2023, total income amounted to £2,155,05712022- £1,482,542). all of which was unreslricled in nature. The Trustees made granls lotalling £1,950.92212022 - £1,313,530) including allocated slaff cosls. In addition, the charity incurred sUPPOrt costs of £204.13512022- £169,012). Re5erve$ Pollcy The Trustees have examined the Foundation's requirements for reserves considering the main risks lo the Foundation and its future granl making projeclions. The Trustee5 hove received assurance from AA Properly Holdings Limited and ACT Properly Holdings Limited Ihal Ihe companies will provide funds lo the Foundation, on a timely basis, for the next 12 months from the dale of this report to enable the Foundation to pay the grant5 thot become poyoble and for any adminislralive running cosls of Ihe Foundation. This supportwill protect the Foundation and ils long-term chorilable giving slralegy by providing sufficienl additional resources, a5 required, lo odjust to changing financial crcumstances. In lighl of this assurance the Truslees do not consider il nece55ary for the F(xJndalion to hold free reserves. Future Plans The Foundation continues to offer a comprehensive postgraduate scholarships scheme. which supports emerging leaders within Muslim communities in the UK. As the scholarships programme becomes more established, the Foundation has b grown its internships programme to help extend ils focu5 and impact. The Foundation has been forging ahead wilh its preferred portnership5 scheme and is regularw meeting with universilies and welcoming new universities on board os partners. For the upcoming year. the Foundation intends to conlinue this work lo secure portner5hips with more universities so Ihat we can offer scholarships at a wider ronge of inslilulions committed lo creating an inclusive leorning environment for Brilish Muslim students. To further Ihis line of work. the Foundalion is olso developing the 'Muslim Friendly Universities, iniliative to focilitate equality, diversily and inclusion IEDII interventions on university campuses, with the aim of bettering the experiences of British Muslim students. Scholarships have also been delimited by subjecl area. namely lo Law, Media and Journalism, Policy. Technology, Suslainability and Arts and Cultvre. Eligible candidates have had to demonstrate how their chosen programme will ossist them in realising their aspiralions in these professional oreas. The Board of Trvslees will work alongside the Foundation's staff to review Ihese designated subjecl calegories lo decide whether they should be modified in the coming year. The Foundotion | 9

Truslees, report foi the year to 31 March 2023 Future Plans Icontinuedl The internship5 programme is an exciting oddilion lo the Foundation's philanthropic endeavours and it is expected to be a growing area ofwork in the nexl financial year. Signed on beholf of the Board of Trustees JAI•~ Truslee (Chairl Approved by the Trustee5 On= Truslee Asif Haroon Aziz The AZE Foundoti(x) 110

Independent auditor’s report for the year to 31 March 2023

Independent auditor’s report to the Trustees of the Aziz Foundation

Opinion

We have audited the accounts of The Aziz Foundation (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

♦ give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its income and expenditure for the year then ended;
♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
♦ have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorized for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

The Aziz Foundation | 11

Independent auditor’s report for the year to 31 March 2023

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

♦ the information given in the Trustees’ annual report is inconsistent in any material respect with the accounts; or
♦ sufficient accounting records have not been kept; or
♦ the accounts are not in agreement with the accounting records and returns; or
♦ we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

The Aziz Foundation | 12

Independent auditor’s report for the year to 31 March 2023

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

♦ the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations; and
♦ we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011).

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

♦ making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
♦ considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

♦ performed analytical procedures to identify any unusual or unexpected relationships;
♦ reviewed cashbook entries to identify unusual transactions; and
♦ assessed whether judgements and assumptions made in determining the accounting estimate for the investment property valuation were indicative of potential bias.

The Aziz Foundation | 13

Independent auditor’s report for the year to 31 March 2023

Auditor’s responsibilities for the audit of the accounts (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

♦ review of the minutes of meetings of those charged with governance; and
♦ enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

12 December 2023

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Aziz Foundation | 14

statement of ffnanclal actlvllles (Includlng Income and expendlture account) for the yeor to 31 March 2023 Year to 31 March 2023 Unrestricted Restricted Total furnds funds Year to 31 Morch 2022 Total Unfestslcled Resfvlded lund5 funds Notes Income from.. Donotions Coronoviru5 Job Retention Scheme Investment income Tolal Income 1 2.154,957 2,154.957 1,438,835 1.438.835 43,675 32 1,482.542 43.675 32 1,482.542 100 100 2.155.057 2,155,057 ExpendlluTe on.. Charitoble activtlieg- Promoting ond enhoncing choritoble work . Gronts poyoble . Support COStS Tolal expendlluie 2 1,950.922 204,135 2,155,057 1.950,922 204.135 2,155.057 1.313.530 169,012 1.482.542 1,313.530 169.012 1,482.542 Nel Income ond n•t movemenl In funds Reconclllallon ollvnds Totol funds at l April 2022 Total funds at 31 Morch 2023 The charity hos no recognised goins ond losses otherlhan Ih05e Shown obov8 ond therefore no separate statement of totol recognised gains and losses hos been presented. All of the charity's activitEs derived from conlinuing OperatnS during the obove two financial period5. The Azti FnoI10n 115

Balance sheet as at 31 March 2023 21Y23 Total 2022 Tolol Noles Cuent asse1$ Debtors Cash CJI bank ¢nd in hand 1.748.222 1.144 .749,366 1.154,664 7,939 1,162.603 Uabllllles Creditor5.' follirng due wthn one yeor Net current assets 7 (1,235,085) 514,281 1893.4361 279.167 Creditor5.' amount folling due after more thon one yeor (514.2811 1279.1671 Tt)tal nel ossets The funds ol thè ehoilly Income funds Restricted funds Unrestricted generol fijnds Approved by Ihe Trustees ond Signed on their beholf by.. Truslèe Icharl Approved by Ihe Trustees on.. 6 December 2023 Trustee Asif Haroon Aziz Tre A2iZ Fowdation116

statement of cash flows for the year to 31 March 2023 Yeor to 31 March 2023 Total Year to 31 Morch 2022 Tolol Notes Cash flows from operalin9 actfvitles Net cosh flows (used inl yovided by operatin9 activities 16,795) 16.795) 6.105 6.105 Chttnge In cash and ctssh eqvlvoFent$ (0.7951 6.105 Co$h gnd cash equSvolents ol l Aprll 2022 Cash and cash eqvfvalent5 al 31 March 2023 7.939 1.144 1.834 7.939 Note5 to the 5taternent ol cash flows lor the year ended 31 Morch 2023.. Reconclllollon of net movement In funds lo nel cash Ilows from opeioting activilies Year to 31 March 2023 Total Year lo 31 March 2022 Total Nel movemenl In lunds (0$ per statement of hnanclol acmvtttesl Adlvslments for.. Ilncreosè) d6creose in debtors Increase Idecreasel in creditor5 Net cash (used Inl provlded by operatlng octfvllles 1593,558) 586.763 {6,795) 17.688 111.5831 6,105 Analysls ot cash and cash equlvalents Year to 31 Maich 2023 Totol Year to 31 March 2022 Total Cosh and c05h equivolent5 Icash ot bank and in handl 1,144 7.939 No seporole reconciliolion ol nel debt has begn prepared as there is no difference befvrfeen the nel Cosh Idebll ol the ch(ty ond the above c05h and cosh equivalenl5. The AZE Foundoliox) 117

Principal accounting policies for the year to 31 March 2023 The principal accounling policies odopfed. judgements ond key 50vrces of esh"malion uncertainty in the preporolion of the finonciol 51atements are laid out below. al Basis of preparation These finoncial slalemenls hove been prepared lor the year lo 31 March 2023. wlh comparative informolion for the yeor fo 31 Moreh 2022. The finoncial Statements have been prepared under the hi51orical c051 convention with items recognised al cost or tronsoction value unle55 Otherwse sloled the relevont occounliry policies below th@ notes lo these financial slalemenls. The finonciol slalemenls have been prepored n accordonce wth Accounting and Reporting by Choritie5.' Slotemenl ol Recommended Prorticè applicable lo charities preparing their occounts in occordance with the Financial Reporting Slondcjrd applicoble in the United Kingdom and Republic of elond IFRS 1021 Ichaiilies SORP FRS 1021. the Financial Reporting Stondard applicoble in the UK ond Repvblic of Iieland IFRS 1021 and the Choiilies Act 2011. The charity constitutes o public benefit enlily os defned by FRS 102. The financial 5talemenls are presented in steding ond or8 rounded lo the neorest pound. bl Critical accounting estimates and areas of judgement other thon the ossessmenl of going concern. as sel out below. the preparolion of the fnancial statement5 did not require the Trustees lo moke ony significant judgement5 or e5h"motes. cl Asse55ment of going concern The Trustees hove ossessed whether the use ol the going concem assumption is appropriate in pieporing these financial slalements. The frustees have mode this assessment in re5P8d to a period ol one year from the date of opprovol of these financial statement5. The Trustee5 have received assuronce trom AA Property Holdings Linited that the company will provide funds lo the Fovndotion. on a timely bosS5. lor the next 12 month5 from the balonce sheet dale to enable the Foundolion lo pay the gronts thot become payoble ond for any odministrotive running c05t5 of the Fovndotion. The Trustees ol the chority hove concluded that there are no moterial uncertointies relaled lo events or conditions thot moy cost swnificant doLJbl on the ability of the charity lo continue os o golng concern. The fruslees are ol the opinion that the charily will have sufficient resources to meet its liobilities a5 they fall due. dl Income recognition Iricome is rec0grned in the year in whKh the charity is entitled lo receipl. the amount can be measured refiobty. ond it is probable that income wll be received. Income durng the yeoi 15 comprised entirety ol donations which are reCOgne when the charity hos conlirmotion ol both Ihe omount and Settlement date. In the event of donolrons pledged bul not received. the amount is accrued lor where the recelpl is con&deied proboble. In the event that a donolion is subject lo conditions thol reqvire o level of perlormonce before the chority is entild to the funds. the income is delewed and not recognised until either th05e conditions are fully met. or Ihe fulfilmenl ol those conditions 15 wholty within the control of the chority and il proboble thol those conditions wll be fulfilled in the reporting period. Donated services and locililies provided to the chorily ore recogni58d in the period when it 15 probable that the economic benefits will flow to the charity. wovided they can be measured reliably. This is normally when the Service is providedlthe facilities are used by the charty. Thg AZE F(yJndalvJn 118

Prlnclpal accounttng policies for the year to 31 March 2023 d) Income recognition Icontinuedl An eqvivolent omovnt is inclvded cts expenditure. Donotèd services and lacli ities are recogni58d on the basis ol the value ol the gill lo the charity which is Ihe amount the Ch(tY would have been willing lo pay lo obtain locililie5 or services of equivolent economic benefit on the open market. el Expenditure recognition abilities ue recogrmsed as expenditvre 05 soon os there is o legol or constrv¢tive obligation commitling the charity to make o payment to a third porty. it is probable that o Iiansler ol economic benelils wqll be required in settlement and the amount ol obligation con be me05ured reliab. Expendiluie comprises granls payable 05 Part of the Foundation's choritable actiwties. as well 05 administrative cost5 pertaining to the charily and its gronl-moking. Grants poyoble are includtrd in the slalemenl ol financial activities when opproved and when the intended recipient has either received the lund5 01 been informed ol the deClon to moke the donation and has solisfied all related condition5. Gronts approved but not poid at the end ol the linanciol period ttie occrued for. Grants where the beneficiary has not been inlomed or has to meet certain conditions before the gront is released are not occru8d lor but noted os linanciol commitment5 in the notes to the linonciol stotement5. All expenditure is Stoled inclusive of irrecoverable VA T. fl Debtors Debtors ore recognis&d ot thè settlement amount, les5 ony prtsvi5ion for non-recoverability. Prèpaym8nts are volued ot the amount prepaid. fftey have been discounted to the presenl value of the fulure c05h receipt where such discounting is materiol. gl Cash at bank and in hand Cosh ol bonk on¢Y in hend represents such occovnts ond instruments that are ovoiloble on demand or have a moturity of les5 thon three month5 from the date ol ocqvi5ition. h) Creditors Creditors are recogntsed when there is on obligotion al the balonce sheet dole as o result ol o post event, it is probable thol o Ironsler of economic benefit will be required in 5etllemenl, and the omounl ol the settlement con be estimated reliably. Creditors ue recognised al the omount the chorily onticipote5 rt will pay 10 5eltle the debt. Where materiol they hove been discounted to the present volue ol the future cash payment. il Fund accounting The general unrestricted fund5 represent funds ov010b for the generol chorilable purp05e5 of tho charity at the discretion ol the Tnjslees. Restricted lund5 comprise monies raised for. or their use re5tricled lo, o specific purpose. or conlributK)ns subjecl lo donor-imposed conditions. Il Pension scheme Contributions ore nto o pergonol pen5Dn scheme lor oll employees. Pension contribvtKJns ore chorged lo the Slalemenl ol linoncial Aclivitie5 in the year in which they fall due. kl Allocation of support costs Support costs, comprising the stuff costs ol the corporole Ivnction. ore opportioned to the chorilable activity based on the lime spent by empknyee5 in proce55ing and monitoring scholarships and other progromme work. The Aziz Fndatn | 19

Notes to Ihe financial statements for the year ended 31 March 2023 l Donotions Yeur lo 31 March 2023 Uniesliicled Reslricted Tolal funds funds Year lo 31 Morch 3)22 Totol Lsnreslrtcled Reslrtcled funds fund5 Donotions Donotion5 in kind Re-meosurem&nl ol umovnt5 receivable 1.5d2.000 13.200 1.542.000 I,422.{0 13,200 13.gyj 1,422.CQO 13.200 599.757 2,154.957 599,757 3.635 2,154.957 1.438.835 3.5 1.438.Pa5 Total funds Tre donation in kind tateS lo the in-sand svpport the Foundation recewgd Iiom Criterion Capitol Limited con$15ting o15toff time ond provision ol office premise5. 2 Grants payable Yeor to 31 March 2023 Unre5tricltrcl Restricted lotal funds fvnds Yeor lo 31 March 2022 Tolol Unrestrlcted Reshlcted lunds funds Masters ScholaT$hlp$ Direcl gront costs Cancelkd grants 793.977 793,977 590,098 1106,2401 483.858 590.098 1106.2401 483.858 793,977 793,977 Generol Fund Direct gronl costs Cancelled gronls 1,156,945 1.156,945 832.288 832.288 1.156.945 1.156.945 829,672 829.672 Total funds 1.950.922 1,950,922 1.313.53) 1.313.530 During the yeor. the number of gion15 owc¥ded was 05 follows.. Masters Scholarships". 7412022- 501 Bur50ries.' O12022- 61 Grants.. $312022- 321 3 Support costs Year to 31 Maich 2023 Total Year lo 31 March )22 Total staff cost5 Inole 41 Olhei odminislrolion cosls oirice preISeS gift in kind Avdil fee Total funds 169,236 IS,499 13.200 6.200 204.135 142.2 7.559 13,2CX) 169,012 Th& Aziz Foundolion 120

Notes to the Ilnanclal statements lor the year ended 31 March 2023 4 Staff cost5 Year lo 31 Mwch 2023 Tolal Yeai to 31 Murch 2022 Total stolf costs during the yeor were 0$ folbw3'. Wages and 5alaiies soc1 securily c0515 other pen5i0n cost5 1S4.177 126,876 12,784 2593 142253 3,448 169,234 No employee earned £60.mO per onnum or more lincluding loxable benelilsl during the year12022 - none). The overoge number of employees. anolysed by function. wos os follows: 2023 22 No. Gronl ond chority odmin15trotion 5 Taxation The Allz Foundolion is a registered chority and therefore is not liable to income lox or corporolion lax on income derwed from it5 choritoble aclriitEs as it folls within the VarU$ exemptions ovoiloble lo regSslered choritie5. 6 Deblors 2023 Total 2cr22 Tolal DonotDn5 recgivablg Inole I I I 1.748,222 1.154.664 7 Creditor5.' falling due wthin one year 2023 Totol Totol Gronts poyoble Accruols Total cieditots lolling due wthin one year 1.226.716 8.369 1,23S,085 875.067 8.369 883.436 Giant commilmenls ot l April 2022 Commitments mode In the yeor Gronts poid during the yeor Gront cotrmilmenls 0131 Morch 2)23 1,154.234 1.167.740 1.950,922 1.313.530 (1.364.159) 11.327.0361 1.740.997 1.154.234 Falling due wlhin one year Falling dve in more thon one yeLTr Inole 81 1.226,716 514.281 1.740.997 875.067 279,167 1,154.234 The AZE Foundolion121

Notes to the financial Sfotements for the year ended 31 March 2023 Creditors: falling due after more than one year 2023 Tolgl 3)22 Tolol Grants poyobl@ (note 71 514.281 279.167 9 Analysis of net assets between funds Resfvlcted funds General tvnd Total 2023 Fund baknnce5 0131 Morch 23 ore represented by.. Net cuirent 0$5ets Creditors.. amoun15 falling due aftei more thon one year Tot01 nel ossels 514.281 1514.2811 Restricted funds General fund Total 2022 Fund bolance5 a131 hlarch 2022 ore represented by.. Net cuffent ossets Credilors.. umounts fouing due oftermoFe than one yeor rool nel ossets 279. 167 1279.1671 10 Remuneration of Truslees and key management personnel The Trustees consider that they comprise th8 key monagemenl ol the ChilY in charge ol directing and controlling. running and operating the chority on a doy-to-day basis. The Trustee5 rèeèivè no remunerotion or reimbursement of expènses irn connection with their duts. I l Relaled party Iransactions During the yeor. thè Foundation received donotions. both in the form ol cash ond iTrkind 5UPPOrt totalling £1.555,200 12022 - £1,435.2001. from AA Property Holdings Limitèd through Bracknell Property. hAiflols Boiildon and Miflats Croydorn. The Chair ol the Fovndotion is the Selllor ol the Aiz Family Stor Tfusl. which is the ultimote owner of the companiES. Amounts receivable at 31 March X>23 were £1.748.22212022.. £1.154.6641. Additionally. Rahimo Aiz woi aworded o discretionary tvition fèes scholarship in financiol yèar 2022-23 for on omount ol £nil12022- £9.2501. She wos not in any way involved in this decision or award. The Azr£ nalKIn 122

AZIZFOUNDATION BUILDING COMMUNITIES TOGETHER The Aziz Foundation Annual Report and Financial Statements For the year ended 31 March 2023 Charity Regislralion Number 1169558 The Aziz FnOI10n I

Independent auditor’s report for the year to 31 March 2023

Independent auditor’s report to the Trustees of the Aziz Foundation

Opinion

In our opinion, the accounts:

♦ give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its income and expenditure for the year then ended;
♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
♦ have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

The Aziz Foundation | 11

Independent auditor’s report for the year to 31 March 2023

Other information

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

♦ the information given in the Trustees’ annual report is inconsistent in any material respect with the accounts; or
♦ sufficient accounting records have not been kept; or
♦ the accounts are not in agreement with the accounting records and returns; or
♦ we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

The Aziz Foundation | 12

Independent auditor’s report for the year to 31 March 2023

Auditor’s responsibilities for the audit of the accounts

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

♦ the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations; and
♦ we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011).

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

♦ making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
♦ considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

♦ performed analytical procedures to identify any unusual or unexpected relationships;
♦ reviewed cashbook entries to identify unusual transactions; and
♦ assessed whether judgements and assumptions made in determining the accounting estimate for the investment property valuation were indicative of potential bias.

The Aziz Foundation | 13

Independent auditor’s report for the year to 31 March 2023

Auditor’s responsibilities for the audit of the accounts (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

♦ review of the minutes of meetings of those charged with governance; and
♦ enquiring of management as to actual and potential litigation and claims.

www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of our report

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

12 December 2023

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Aziz Foundation | 14

The Trustees The Aziz Foundation 16 Babmaes Street London SW1Y 6HD

12 December 2023

Our ref AFA002/KP/TB

Dear Trustees

Post-Audit Report – Year ended 31 March 2023

The purpose of this letter is to bring to the attention of the Trustees as those charged with governance the findings from our recent audit of the financial statements of The Aziz Foundation for the year ended 31 March 2023, for your consideration and to enable you to address matters arising where appropriate. Throughout this letter, “you” and “your” refer to the Trustees. “We” and “our” refer to Buzzacott LLP

We appreciate that you will already be aware of some of the matters contained in this letter. However, in accordance with International Standards on Auditing (UK) (ISAs) we are communicating them to you formally.

1. Purpose of the audit

As auditor, we are responsible for performing the audit in accordance with ISAs (UK), which is directed towards forming and expressing an opinion on the financial statements for the year ended 31 March 2023 that have been prepared by management with the oversight of those charged with governance, and other matters required by legislation.

Our work has been carried out in accordance with our audit planning letter dated 14 August 2023.

Our audit work included consideration of the internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of your system of internal control.

Buzzacott LLP is a limited liability partnership and is registered in England and Wales with registered number OC329687

A list of LLP members is available at our registered office address as above. Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales.

The matters being reported are limited to those that were identified during the audit and that we conclude are of sufficient importance to merit being reported to those charged with governance.

2. Audit progress

We were able to complete the majority of the work in line with the agreed timetable. However, there were some delays in receiving the relevant information regarding grants payable.

We would like to take this opportunity to thank all those with whom we dealt during the audit for their assistance and co-operation, in particular Saadia Mahmood and Aftab Ahmed.

3. Annual report and financial statements’ format

The financial statements have been prepared, as last year, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS 102).

There are no significant changes to the format of the financial statements this year.

4. Auditor’s report

We do not propose any modifications to our audit report and, therefore, we are issuing an unqualified opinion in the report.

The wording of our auditor’s report is unchanged from last year.

5. Adjustments made during the audit

Other than presentational amendments which have no impact on the reported results for the year, there were no adjustments made to the figures presented to us for audit.

6. Unadjusted misstatements

We are pleased to report that we found only clearly trivial misstatements during our audit for the period.

7. Accounting policies, accounting estimates and disclosures

The accounting policies used in preparing the financial statements are unchanged from the previous year.

Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the charity. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the charity.

Page 2 of 8

The Trustees The Aziz Foundation

12 December 2023

8. Letter of representation

We enclose the letter of representation which we will request the trustees to approve and sign at the same time as the financial statements. This includes acknowledgement of the trustees’ responsibility for the design and implementation of internal controls to prevent and detect fraud.

As set out in our planning letter, we understand the following applied to the year ended 31 March 2023.

Trustees exercised effective oversight of management's processes for identifying and responding to the risks of fraud in the charity and a system of internal controls was in place to mitigate these fraud risks.
The key areas at most risk of fraud at the charity are through payments being made to false beneficiaries.
Trustees were not aware of any instances of actual, suspected, or alleged fraud, including misconduct or unethical behaviour related to financial reporting or misappropriation of assets.
There have not been any out of the ordinary transactions.

If the above information is incorrect, please contact Katharine Patel or Tom Beswick.

9. Segregation of duties

We recognise that the number of your accounting staff makes a complete system of internal control impracticable and that the trustees exercise close personal supervision, which we consider reasonable in the circumstances. We have taken this into account in conducting our audit and in preparing this letter.

10. Accounting and internal control systems

Our work during the audit included an examination of some of the charity’s transactions, procedures and controls with a view to expressing an opinion on the financial statements for the year ended 31 March 2023.

This work was not directed primarily towards discovering weaknesses, other than those that would affect our audit opinion, or towards the detection of fraud. We have included in this report only matters that have come to our attention as a result of our normal audit procedures and consequently our comments should not be regarded as a comprehensive record of all weaknesses that may exist or of all improvements that might be made.

For the first time this year, and in light of the revised auditing standard (ISA 315) referred to in our planning letter, we placed increased emphasis on the charity’s IT controls and wider IT environment. Information was gathered at the planning stage in respect of access permissions to key systems housing financial data with controls over access being checked as part of the audit. We also gained a deeper understanding of the charity’s general IT infrastructure, its data storage and back up procedures.

We found no significant deficiencies in the accounting and internal control systems during our audit.

Page 3 of 8

The Trustees The Aziz Foundation

12 December 2023

11. Prior year observation

We raised one observation in the prior year post audit report in relation to authorisation of expenditure. We are pleased to report that, based upon our audit testing this year, this appears to have been resolved.

12. Materiality

Materiality threshold £43,100

Reporting threshold: £2,155

Materiality refers to the relative significance of a particular matter in the context of the financial statements as a whole. An item would be considered material if its omission or its erroneous inclusion would reasonably influence the decisions of those using the financial statements.

We are required to report corrected audit misstatements, and uncorrected audit misstatements in excess of our reporting threshold which is set at 5% of overall materiality.

Our materiality threshold is based on 2% of expenditure. A lower level of materiality may be selected for specific areas of the financial statements and for some disclosure items e.g. transactions and other financial arrangements with trustees and their connected persons.

When considering the impact of misstatements discovered during the course of our audit and considering the implications for our report of such misstatements, we will refer to this level amongst other things. Whether a misstatement is ‘material’ or not is ultimately down to the auditor’s judgement.

13. Professional ethics

In accordance with our profession’s ethical guidance and further to our letter to you dated 14 August 2023 confirming audit planning arrangements there are no further matters to bring to your attention in relation to Integrity, Objectivity and Independence.

14. Current developments

We have attached a summary of other recent and ongoing developments as Appendix A to this report. The matters included in this appendix may not all be directly relevant to the charity. However, we are aware that trustees may be involved with more than one organisation, and therefore we have included items for general information.

Page 4 of 8

The Trustees The Aziz Foundation

12 December 2023

15. Updates, insights and seminars

As part of our commitment to the charity sector, during the year the Charity Team issues occasional Updates and Insights on matters of relevance to the sector and also holds a number of seminars free of charge throughout the year. We would be delighted to welcome representatives of your charity to our seminars or to add trustees and management to our email distribution lists if this would be welcome. News and Insights are also available on our website at News and insights (buzzacott.co.uk), where there is also an opportunity to sign up to our mailing list should you wish.

16. Conclusion

This letter has been prepared for your private use only. It has been prepared on the understanding that it will not be shared with any third party without our prior written consent and we can therefore assume no responsibility to any other party. Any recommendations contained herein are based on the information you have provided and UK law and judicial and administrative interpretation as of the date of this letter. Should the facts provided to us be incorrect or incomplete, or should they change, our recommendations may be inappropriate. Buzzacott LLP accepts no liability for losses arising from changes in UK law, interpretation or practice or in public policy that are first published after the date of this letter.

If you require any further information or assistance, we shall be very pleased to help you.

Yours faithfully

12 December 2023

Page 5 of 8

The Trustees The Aziz Foundation

12 December 2023

Trustees’ Annual Report and Accounts

Financial Reporting Exposure Draft (FRED) 82

The Financial Reporting Council (‘FRC’) is currently undertaking its second triennial review of Financial Reporting Standard 102 (FRS 102), the underlying accounting framework under which the charity prepares its accounts. During 2023, the FRC released FRED 82, which outlined the proposed revisions to the next edition of FRS 102 and the consultation period closed on 30 April 2023. The FRC is currently considering the responses to this, and we expect a final version to be released in early 2024.

For more information please visit:

https://www.frc.org.uk/getattachment/e7cf66c5-7f1b-45b1-8620-2bd754f6c97f/20221215-FRED-82-At-aglance.pdf

Development of new Charity Statement of Recommended Practice (SORP)

An exposure draft of the new SORP is expected in late 2023, with implementation expected for accounting periods commencing on or after 1 January 2025. Briefings on 15 topics with proposed changes that have been considered by the SORP Committee are available at: https://charitysorp.org/engage-briefings-to-inform-theengagement-process-in-developing-the-next-sorp

Sustainability and reporting

Whilst many companies and organisations are including sustainability and climate change-related information in their annual reports, only the largest private and listed companies are required to provide such information. This disclosed information is not yet subject to any independent ‘checking’ which has resulted in the ‘greenwashing’ claims about some unverified information contained in annual reports.

June 2023 saw the issue of the first two international sustainability reporting standards aimed at improving trust and confidence in company disclosures about sustainability and climate change. The two IFRS Sustainability Disclosure Standards are internationally effective from 1 January 2024 although they have not yet been adopted by UK standard setters. However, it is likely that compliance will become mandatory in the near future. To begin with, the obligation may only be for large companies but, the ‘trickle down’ process is likely to require many organisations to ensure that they can provide adequate information to others in their supply chain who have the reporting obligation. As is usually the way, the reporting obligation will ultimately be extended to smaller and not-for-profit entities.

In anticipation of the above, it is advisable to start discussions around sustainability reporting and data early and more information can be found at: https://www.ifrs.org/issued-standards/ifrs-sustainability-standardsnavigator/.

Page 6 of 8

The Trustees – Aziz Foundation

12 December 2023

Charity Commission guidance on cost of living pressures

The Charity Commission has published guidance on managing financial difficulties as a result of the cost of living crisis covering key topics regarding trustee duty and decision-making, practical tips on what to do in situations where charities are in financial difficulty, what to do if the charity cannot continue to operate and a reminder on reporting serious incidents.

The detailed guidance can be seen at: https://www.gov.uk/guidance/manage-financial-difficulties-in-your-charityarising-from-cost-of-living-pressures

Additional questions on Charity Annual Returns

The questions posed in the Charity Commission’s Annual Return have been updated for financial years starting on or after 1 January 2023. The most significant changes relate to smaller charities where, depending on the level of income, the number of responses required may be reduced. Narrative changes to some questions have been made to improve clarity and improvements in the glossary and guidance have also been made to help charities answer questions quickly and accurately.

The detailed list of questions can be found at Appendix 8 at the following link:

https://www.gov.uk/government/consultations/charity-commission-revisions-to-the-annual-return-2023-25

Guidance on internal controls

The government has updated their guidance (CC8) on internal financial controls for charities. The revised guidance includes updates on digital payment systems, fraud and cybercrime. The Charity Commission's internal control checklist, a tool available for trustees and charity management to check controls against the latest legal requirements has also been updated to reflect the latest guidance. The Charity Commission recommends that internal financial controls should be reviewed at least once a year. The updated guidance and checklist can be found at Internal financial controls for charities at https://www.gov.uk/government/publications/internalfinancial-controls-for-charities-cc8

Trustee Quiz

The Charity Commission has released a new Trustee Quiz to enable trustees to test their knowledge of their roles and responsibilities. It is aimed to engage trustees with questions based on everyday scenarios in a bid to identify any knowledge gaps and to act as a refresher for all trustees. The quiz takes three minutes to complete with feedback provided for each question and a score out of 10.

The quiz can be found at: https://beingacharitytrustee.campaign.gov.uk/take-the-trustee-quiz/

Page 7 of 8

The Trustees – Aziz Foundation

12 December 2023

UK employment law

A number of employment law regulatory changes have taken place in recent months including increases in statutory sick pay, updated redundancy pay calculations and national minimum wage increases which can impact organisations and their HR processes and documentation. The following insight provides detailed commentary on the changes and information on how Buzzacott can support: https://www.buzzacott.co.uk/insights/an-update-onuk-employment-law-2023

Compliance

Safeguarding

The Charity Commission has published a guide on the responsibilities for charities and trustees to keep everyone safe including staff, volunteers, and beneficiaries. Trustees must ensure their charity identifies and manages risks, have safeguarding policies and practices in place, carry out relevant checks (e.g. DBS), protect volunteers and staff, and have procedures to handle and report incidents appropriately.

A detailed overview of safeguarding in charities, and how to implement the above action points can be found at: https://www.gov.uk/guidance/safeguarding-for-charities-and-trustees

Tax

Charity tax returns – why are they so important?

Whilst it is not compulsory for charities to file a tax return, HMRC is able to perform random checks on charities to ensure exemptions are being claimed correctly. There is no blanket exemption on income generated by a charity because of their charitable status. If a charity receives income that does not fall under the available exemptions, then the profit element of the income will be subject to tax. The main forms of exempt charitable income are:

Donations and legacies;
Trading income, where this derives from activities in furtherance of or ancillary to the charity’s objectives, or activities carried out by the charity’s beneficiaries; and
Certain investment and property income.
If there is non-charitable trading income that does not fall under the above exemptions, the small-scale taxable trades exemption can be applied whereby a tax liability will not be applied if the non-charitable trading income is less than 25% of the charity’s total income, subject to a cap of £80,000. If £80,000 is breached, the total non-charitable trading income will be taxable. Further information can be found at: https://www.buzzacott.co.uk/insights/charity-tax-returns-why-are-they-so-important

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The Trustees – Aziz Foundation

12 December 2023