REGISTERED CHARITY NUMBER: 1170352
Community Education Institute
Annual Report and Unaudited Financial Statements
For the Year Ended 30 November 2023
Paragon Chartered Accountants 155 Normanton Road Derby DE23 6UR
Community Education Institute
Legal and Administration Information
| Trustees | Mr H Burhan |
|---|---|
| Mr M Azaim | |
| Mr S Ashraf | |
| Charity number | 1170352 |
| Registered office | 27 Old Gloucester Street |
| Bloomsbury | |
| London | |
| WC1N 3AX | |
| Independent Examiner | Irfan YounusFCA |
| Paragon | |
| Chartered Accountants | |
| 155 Normanton Road | |
| Derby | |
| DE23 6UR | |
| Bankers | Barclays Bank PLC |
| P O Box 299 | |
| Birmingham | |
| B1 3PF |
Community Education Institute
| Contents | ||
|---|---|---|
| Page | ||
| Trustees' Report | 1 to | 3 |
| Independent Examiner's Report | 4 | |
| Statement of Financial Activities | 5 | |
| Balance Sheet | 6 | |
| Notes to the Financial Statements | 7to | 10 |
| Detailed Statement of Financial Activities | 11 |
Community Education Institute
Trustees' Report for the Year Ended 30 November 2023
The trustees are presenting their report with the financial statements of the charity for the year ended 30 November 2023. The trustees have adopted the provisions of Accounting and Reporting by The Charities Act 2011: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity is a charitable incorporated organisation (CIO) with the founding purpose being twofold. Firstly, to provide education which, while aimed primarily at those who have an academic or religious interest in the study of Islam, is open to all. Community Education Institute aims to educate participants on the values found within the Islamic tradition, as well as other traditions, and their application to contemporary Western society. Secondly, to provide supplementary education for school children with a view to improving educational attainment. Community Education Institute hopes to inspire the recipients of the education it provides to act with integrity, honesty and civic responsibility. The trustees have considered the Charity Commission's guidance on public benefit.
The charity ensures that any fees it charges for its courses are heavily subsidised through donations efforts of friends and supporters. Student fees do not cover the full cost of running the course; therefore, the charity relies on the generosity of individuals who keep it running and facilitate the learning of others through their prayers and financial support. It is Community Education institute’s belief that knowledge should be accessible to all, which is why Community Education Institute endeavors to keep student fees as low as possible.
Significant activities
The charity has one fund; an unrestricted fund. The unrestricted fund is used to manage day-to-day unrestricted costs, and for the purposes of meeting the objectives of Community Education Institute. During the year the fund was used to make up the shortfall between the subsidised course fees and the costs of providing educational courses.
Further developments
The charity will continue to focus on education, and the provision of religious courses and supplementary education.
ACHIEVEMENT AND PERFORMANCE
The charity is satisfied that it has met its objectives and aims and is optimistic that it will continue to do so and continue to grow. A variety of educational courses were provided relating to Islamic tradition and education. These included free Quran reading classes, and general Islamic Studies classes. Also, the London Academy was set up to provide students with access to the rich variety of Islamic sciences through various weekly classes. Along with the above, supplementary classes of Mathematics and English were run for 12-week terms for children between the ages of 7 and 16 years.
FINANCIAL REVIEW
The Statement of Financial Activities shows how the charity's funds have been applied during the period. The gross receipts of the organisation were £128,412 (2022 - £96,684) of which £116,183 (2022 - £68,938) was raised internally from the heavily subsidised sale of the educational courses provided.
Donations directly related to the principal activities amounted to £12,229 (2022 - £27,746).
At 30th November 2023, the balance on the only fund, the unrestricted fund, was £69,263 (2022 - £46,445). As the charity's income is dependent upon the goodwill of supporters and friends, along with students paying the heavily subsidised course fees, the managing trustees are of the opinion that the level of direct activities should be proportionate to such income.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its Constitution, and is a charitable incorporated organisation, who’s only voting members are its charity trustees. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
Page 1
Community Education Institute
Trustees' Report for the Year Ended 30 November 2023
Recruitment and appointment of new trustees
The trustees may appoint a person who is willing to act as a trustee. There must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the charity trustees or appoint a new charity trustee.
Induction and training of new trustees
New trustees receive an induction early on in their tenure, thus ensuring their full understanding of the organisation, its operations, and its ethos and values. The induction process sets out briefs to new trustees, what is expected of trustees by the charity, the law and the Charity Commission. New trustees also receive regular updates and briefings on the above matters from senior trustees.
Organisational structure
The trustees are responsible for the overall management and control of the charity and meet regularly to manage its affairs. Trustee and volunteer resources are divided into educational courses, finance and administration.
Reserves policy
Accumulated funds comprise the accumulated surplus or deficit on the statement of financial activities which are available for use at the discretion of the trustees in furtherance of the objectives of the charity. The trustees consider that the level of reserves as at 30th November 2023 of £69,263 is satisfactory.
Related parties
The charity does not hold assets on behalf of another charity. The related parties are the trustees.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The managing trustees have examined the major strategic, business and operations risks which the organisation faces and confirm that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks.
The trustees have identified that the main risk for the charity is that of financial sustainability. The trustees regularly review the availability of the liquid funds, along with actively managing the charity's working capital to ensure this risk is minimised.
Non-financial risks arising from the educational courses that the charity provides have also been considered. These consist of health and safety risks and fire risks.
These risks are managed by ensuring that health and safety, and fire laws and regulations are followed, along with regular training for the tutors conducting the courses.
Page 2
Community Education Institute
Trustees' Report for the Year Ended 30 November 2023
Trustees’ responsibilities statement
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year 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 trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the applicable Charities SORP:
-
make judgments and accounting estimates that are reasonable and prudent:
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 2008, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on ................................................. and signed on its behalf by:
Mr M Azaim - Trustee
Page 3
Independent Examiner's Report
To the Trustees of Community Education Institute
I report to the trustees on my examination of the financial statements of the Charity for the year ended 30 November 2023 which are set on pages 5 to 11.
This report is made solely to the charity's trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the charity's financial statements carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit go beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a 'true and fair' view and my report is limited to those specific matters set out in the independent examiner's statement.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Irfan Younus FCA Paragon Chartered Accountants 155 Normanton Road Derby
Date: ..............................................
Page 4
Community Education Institute
Statement of Financial Activities Including Income & Expenditure Account for the Year Ended 30 November 2023
==> picture [490 x 388] intentionally omitted <==
----- Start of picture text -----
2023 2022
Unrestricted Unrestricted
fund funds
Notes £ £
INCOME FROM
Donations 3 12,229 27,746
Charitable activities
Sale of goods/services as part of direct charitable
Charitable activities 3 116,183 68,938
Total Income 128,412 96,684
EXPENDITURE ON
Raising funds 4 5,897 2,543
Charitable activities
Expenditure on charitable activities 5 99,697 72,579
Total resources expended 105,595 75,122
NET INCOME FOR THE YEAR/
NET MOVEMENT IN THE FUNDS 22,818 21,562
Fund Balances at 1 December 2022 46,445 24,883
FUND BALANCE AT 30 NOVEMBER 2023 69,263 46 ,445
----- End of picture text -----
The Statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The notes form part of these financial statements
Page 5
Community Education Institute
Balance Sheet 30 November 2023
==> picture [491 x 308] intentionally omitted <==
----- Start of picture text -----
2023 2022
Unrestricted Unrestricted
funds funds
Notes £ £
FIXED ASSETS
Tangible assets 7 511 681
CURRENT ASSETS
Cash at bank 73,990 50,078
CREDITORS
Amounts falling due within one year 8 (3,500) (3,500)
Other creditors (1738) (814)
NET CURRENT ASSETS 69,263 ( 45,764)
TOTAL ASSETS LESS CURRENT
LIABILITIES 69,263 46,445
NET ASSETS 69,263 46,445
INCOME FUNDS 9
Unrestricted funds 69,263 46,445
TOTAL FUNDS 69,263 46,445
----- End of picture text -----
The financial statements were approved by the Board of Trustees and authorised for issue on ................................................... and were signed on its behalf by:
Mr M Azaim - Trustee
The notes form part of these financial statements
Page 6
Community Education Institute
Notes to the Financial Statements for the Year Ended 30 November 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) '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 of Ireland (FRS 102) (effective 1 January 2015).
Incoming resources
Income is recognised when the charity is legally entitled of it after any performance conditions have been met, the accounts can be measure reliably, and it is probable that income will be received.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
-
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
-
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Page 7
Community Education Institute
Notes to the Financial Statements - continued
for the Year Ended 30 November 2023
1. ACCOUNTING POLICIES - continued
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognized.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 25% on reducing balance
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
2. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 November 2023 nor for the year ended 30 November 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 November 2023 nor for the year ended 30 November 2022.
Page 8
Community Education Institute
Notes to the Financial Statements - continued
for the Year Ended 30 November 2023
3. DONATIONS AND CHARITABLE ACTIVITES
==> picture [494 x 545] intentionally omitted <==
----- Start of picture text -----
Unrestricted Unrestricted
funds funds
2023 2022
£ £
INCOME FROM
Donations 12,229 27,746
Charitable activities
Sale of goods/services as part of direct charitable
Activities 116,183 68,938
Total 128,412 96,684
4. RAISING FUNDS Unrestricted Unrestricted
Fundraising and publicity funds funds
Fundraising and publicity 2023 2022
£ £
Advertising 5,897 2,543
5. Charitable Activities Unrestricted Unrestricted
Fundraising and publicity funds funds
Support Costs 2023 2022
£ £
Teachers 15,366 15,310
Depreciation 170 227
15,536 15,537
6. Governance Costs
Rent & venue costs 56,056 33,226
Other Office costs 0 3
Motor & travel 6,504 5,390
Computer costs 0 0
Administration costs 1,319 5,308
Accountancy and legal fees 2,900
Equipment Expense 9,402 4,089
Staffing 6,656 2,774
Course materials 1,031 4,252
Charity 293 0
84,161 57,042
----- End of picture text -----
Governance costs includes payment of the independent examiner of £1,000 (2022 - £1,000) for accounting and reporting fee.
Page 9
Community Education Institute
Notes to the Financial Statements - continued for the Year Ended 30 November 2023
6. Employees
Number of employees
There were no employees during the year (2022 : none).
7. TANGIBLE FIXED ASSETS
==> picture [492 x 501] intentionally omitted <==
----- Start of picture text -----
Computer
equipment
£
COST
At 1 December 2022 2,577
Additions -
At 30 November 2023 2,577
DEPRECIATION
At 1 December 2022 1,896
Charge for year 170
At 30 November 2023 2,066
NET BOOK VALUE
At 30 November 2023 511
At 30 November 2022 681
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Accrued expenses 3,500 3,500
Other creditors 1,738 814
5,238 4,314
9. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Unrestricted
funds funds
2023 2022
£ £
Funds balance at 30 November 2022 are
Represented by:
Tangible assets 511 681
Current assets/ (liability) 73,990 50,078
74,501 50,759
10. RELATED PARTY DISCLOSURES
----- End of picture text -----
There were no related party transactions during the year (2022 - none).
Page 10
Community Education Institute
==> picture [489 x 527] intentionally omitted <==
----- Start of picture text -----
Detailed Statement of Financial Activities
for the Year Ended 30 November 2023
2023 2022
£ £
INCOME
Donations and legacies
Donation 12,229 27,746
Charitable activities
Sale of goods/services as part of direct charitable
Activities 116,183 68,938
Total incoming resources 128,412 96,684
EXPENDITURE
Raising funds
Advertising 5,897 2,543
Charitable activities
Support costs
Teachers 15,366 15,310
Depreciation 170 227
15,536 15,537
Governance costs
Rent & venue costs 56,056 33,226
Other office costs 0 3
Motor & travel 6,504 5390
Computer costs - 0
Administration costs 1,319 5,308
Accountancy and legal fees 2,900 2,000
Equipment Expense 9,402 4089
Staffing 6.656 2774
Course materials 1,031 4252
Charity 293
----- End of picture text -----
This page does not form part of the statutory financial statements
Page 11