Charity registration number: 1170057
Muhammadia Saifia Education Trust
Annual Report and Financial Statements
for the period from 2 March 2020 to 31 March 2021
Muhammadia Saifia Education Trust
Contents
| Reference and Administrative Details | 1 | |
|---|---|---|
| Trustee' Report | 2 | to 4 |
| Statement of Trustee' Responsibilities | 5 | |
| Statement of Financial Activities | 6 | |
| Balance Sheet | 7 | |
| Notes to the Financial Statements | 8 to 14 |
Muhammadia Saifia Education Trust
Reference and Administrative Details
Chairman Mr Sohail Liaqat Trustee Mr Sajid Amin, Treasurer Mr Sohail Liaqat Mr Waqar Ali Secretary Mr Waqar Ali Charity Registration Number 1170057 Principal Office 120 Waterloo Street Oldham OL4 1EU Independent Examiner Riaz Ahmad & Co Limited Chartered Certified Accountants Lord House 51 Lord Street Manchester M3 1HE
Page 1
Muhammadia Saifia Education Trust
Trustee' Report
The trustee present the annual report together with the financial statements of the charity for the period ended 31 March 2021.
Objectives and activities
Objects and aims
The organisation objective is to provide an education centre for the local comminity which promotes the islamic faith in the Oldham area, the centre welcomes members of all communities,ages and groups.
Objectives, strategies and activities
5 daily congregation prayers and weekly congregational prayer and sermon led by an Imamfrom th elocal community
Children's evening classes to teach basic islamic principles, Holy Quran and basis islamic rules and regulations.
Weekly and monthly gatherings held inevening, open to general public especially the youth, to discuss community problems, broaden knowledge, relate historical events and current issues.
General education classes fro general public for recitation of Quran in correct pronounciation with urdu/english translation.
Fundraising disclosures
Funda are all donations by the local population.
Public benefit
Five daily congregation prayers, religeous classes, weekly an dmonthly gathering and other special events are held for th members of th epublic where everyone is welcome.
The trustee confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Grant making policies
We do not make grants to anyone or any prganisation.
Use of volunteers
Trustees are all volunteers as well as other people who help with general upkeep of th emosque and ensure all activities are organised in a profesional manner.
Plans for future periods
Aims and key objectives for future periods
Our aim is to improve/expand our facilities and create additional space for addiotional activities.
Activities planned to achieve aims
We are planning Charity car wash, Charity BBQ,Charity Football matches and Charity food packages. This is all subject to COVID 19 restriction and full compliamce with the prevelant rules and regulations.
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Muhammadia Saifia Education Trust
Trustee' Report
Structure, governance and management
Nature of governing document
Mohammadia saifia Education Trust is constiuted as a charitable trust,registerd with the Charity Commission an dgovened by the its Constitution.
Recruitment and appointment of trustee
The current trustees are responsible for the recruitment and appointment of further trustees after consultation with th emembers. Decision i sdetermoned by the vote of trustees. We aim to recruit from the regular participants abnd skills required.
There has been no change in the current year.
Induction and training of trustees
Any new trustees are given full induction and trained on the role and initially paired with the experienced trustees to offer full training.
Arrangements for setting key management personnel remuneration
trustees are volunteers and are not remunerated for their role. The y can claim reasonable expenses but none has been claimed to date.
Financial instruments
Objectives and policies
The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustee, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
Cash flow risk
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
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Muhammadia Saifia Education Trust
Trustee' Report
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
The annual report was approved by the trustee of the charity on 16 December 2021 and signed on its behalf by:
......................................... Mr Sajid Amin Trustee
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Muhammadia Saifia Education Trust
Statement of Trustee' Responsibilities
The trustee are responsible for preparing the trustee' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustee to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustee are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustee are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustee are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustee of the charity on 16 December 2021 and signed on its behalf by:
......................................... Mr Sajid Amin Trustee
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Muhammadia Saifia Education Trust
Statement of Financial Activities for the Period from 2 March 2020 to 31 March 2021
| Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 |
Unrestricted funds £ 23,066 23,066 (7,212) (7,212) 15,854 15,854 1,612 17,466 |
Total 2021 £ 23,066 |
|---|---|---|
| 23,066 | ||
| (7,212) | ||
| (7,212) | ||
| 15,854 | ||
| 15,854 1,612 |
||
| 17,466 |
All of the charity's activities derive from continuing operations during the above period.
The notes on pages 8 to 14 form an integral part of these financial statements. Page 6
Muhammadia Saifia Education Trust
(Registration number: 1170057) Balance Sheet as at 31 March 2021
| Note Current assets Cash at bank and in hand 9 Creditors: Amounts falling due within one year 10 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 11 |
2021 £ 17,866 (400) |
|---|---|
| 17,466 | |
| 17,466 | |
| 17,466 |
The financial statements on pages 6 to 14 were approved by the trustee, and authorised for issue on 16 December 2021 and signed on their behalf by:
......................................... Mr Sohail Liaqat Chairman and trustee
The notes on pages 8 to 14 form an integral part of these financial statements. Page 7
Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Muhammadia Saifia Education Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustee consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee’s meetings and reimbursed expenses.
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
2 Income from donations and legacies
| Donations and legacies; Donations from individuals Total for period ended 31 March 2021 |
Unrestricted funds General £ 23,066 23,066 |
Total funds £ 23,066 |
|---|---|---|
| 23,066 |
3 Expenditure on charitable activities
| Unrestricted | |||
|---|---|---|---|
| funds | Total | ||
| General | funds | ||
| Note | £ | £ | |
| Governance costs | 7,212 | 7,212 |
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
Total expenditure £
4 Analysis of governance and support costs
Governance costs
| Staff costs Wages and salaries Audit fees Other fees paid to auditors Other governance costs Total for period ended 31 March 2021 |
Unrestricted funds General £ 2,095 400 4,717 7,212 |
Total funds £ 2,095 400 4,717 |
|---|---|---|
| 7,212 |
5 Net incoming/outgoing resources
Net incoming/outgoing resources for the period include:
2021 £
6 Trustee remuneration and expenses
7 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the period were: Wages and salaries |
2021 £ 2,095 |
|---|---|
No employee received emoluments of more than £60,000 during the period
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Muhammadia Saifia Education Trust
Notes to the Financial Statements for the Period from 2 March 2020 to 31 March 2021
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
9 Cash and cash equivalents
| 9 Cash and cash equivalents |
|
|---|---|
| Cash on hand Cash at bank |
2021 £ 5,349 12,517 |
| 17,866 |
10 Creditors: amounts falling due within one year
| Accruals 11 Funds Unrestricted funds General |
Balance at 2 March 2020 £ 1,612 |
Incoming resources £ 23,066 |
Resources expended £ (7,212) |
2021 £ 400 |
|---|---|---|---|---|
| Balance at 31 March 2021 £ 17,466 |
12 Analysis of net assets between funds
| Current assets Current liabilities Total net assets |
Unrestricted funds General £ 17,866 (400) 17,466 |
Total funds at 31 March 2021 £ 17,866 (400) |
|---|---|---|
| 17,466 |
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Muhammadia Saifia Education Trust
Statement of Financial Activities by fund for the Period from 2 March 2020 to 31 March 2021
| Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total Unrestricted Funds 2021 £ 23,066 |
|---|---|
| 23,066 | |
| (7,212) | |
| (7,212) | |
| 15,854 | |
| 15,854 1,612 |
|
| 17,466 |
This page does not form part of the statutory financial statements. Page 15
Muhammadia Saifia Education Trust
Detailed Statement of Financial Activities for the Period from 2 March 2020 to 31 March 2021
| Income and Endowments from: Donations and legacies (analysed below) Total income Expenditure on: Charitable activities (analysed below) Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2021 £ 23,066 |
|---|---|
| 23,066 | |
| (7,212) | |
| (7,212) | |
| 15,854 | |
| 15,854 1,612 |
|
| 17,466 |
This page does not form part of the statutory financial statements. Page 16
Muhammadia Saifia Education Trust
Detailed Statement of Financial Activities for the Period from 2 March 2020 to 31 March 2021
| Donations and legacies Appeals and donations Charitable activities Wages and salaries Water rates Light, heat and power Insurance Repairs and renewals Telephone and fax Computer software and maintenance costs Printing, postage and stationery Sundry expenses Accountancy fees |
Total 2 March 2020 to 31 March 2021 £ 23,066 |
|---|---|
| 23,066 | |
| (2,095) (528) (2,045) (1,518) (149) (12) (173) (128) (164) (400) |
|
| (7,212) |
This page does not form part of the statutory financial statements. Page 17