Registered number: 08820017 Charity number: 1171689
RANDEREE CHARITABLE TRUST FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2022
LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 4 |
| Independent Auditors' Report on the Financial Statements | 5 - 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Statement of Cash Flows | 11 |
| Notes to the Financial Statements | 12 - 29 |
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 DECEMBER 2022
| Trustees | Shireen Randeree |
|---|---|
| Zaid Randeree | |
| Simon Mitchell | |
| Faisal Randeree | |
| Norman Waller | |
| Company registered number 08820017 Charity registered number 1171689 Registered office 85 Strand London WC2R 0DW Chief executive officer Fatimah Ashrif Independent auditors Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB Bankers National Westminster Bank Plc 1 Princess Street London EC2R 8BP Solicitors Bates Wells Braithwaite 10 Queen St London EC4R 1BE |
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees (who are also Directors for the purposes of Company Law) present their annual report together with the audited financial statements of the charity for the ended 31 December 2022. The Trustees and Directors confirm that the Annual Report, which includes the Directors report, and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2019).
Since the charity qualifies as small under section 383, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Trustees
The Trustees who served during the year and since the year end were as follows:
Shireen Randeree Zaid Randeree Simon Mitchell Faisal Randeree Norman Waller
Structure, governance and management
Randeree Charitable Trust is an incorporated charity, constituted by its Memorandum and Articles dated 18 December 2013 as amended on 28 November 2017. The company registered as a charity on 20 February 2017.
The Charity is run by the Board of Trustees, detailed above. The Trustees meet and communicate regularly to review performance of the Charity, consider risks and issues affecting the Charity, and to review the future plans of the Charity.
Appointment of new Trustees is governed by the Memorandum and Articles of the Charity. The members of the Board of Trustees are authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing Trustee. The new Trustees are briefed about their duties from the current Trustees.
The Trustees actively review the major risks the Charity faces on a regular basis. The Trustees have also examined other operational and business risks faced by the Charity and have established systems to mitigate these risks.
Objectives and Activities
The objectives of the charity are to make grants for the charitable purposes of advancing education and amateur sports for the public benefit, to empower young people from disadvantaged backgrounds and support other such charitable purposes which satisfy The Charity Commission's guidance on public benefit.
The short-term and long-term objectives of the charity during the year were to use donations received to make charitable distributions in furtherance of the charity's objectives. The grants have been made to organisations and projects which promote: education, inclusion and empowerment of young people from disadvantaged communities; community cohesion through interfaith dialogue and research; and amateur sports. This is the strategy that the charity has been using to further its aims, with the Trustees and Directors deciding which individuals and organisations to make grants to.
In establishing the objectives and activities of the Charity, the Trustees have given careful consideration to the Charity Commission's guidance on public benefit.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Objectives and Activities (continued)
The two main criteria which the charity uses to measure success (i.e. its key performance indicators) are the volume of donations received and donations paid to further the charity’s objectives. The Trustees and Directors are also keen to ensure impact of the projects it supports and does this through a reporting procedure agreed with each grantee as seems appropriate to the nature of the project.
Achievements and performance
In 2022, the charity honoured its commitments to support specific projects made in preceding years including those relating to the support of young people in education and careers, and promoting interreligious understanding. The Trust continues to follow the progress and projects of partner charities, organisations and institutions, and those engaged in its areas of interest with the intention of more proactive grant making in 2023.
Financial review
During the year, the Charity achieved a surplus of £85,469 (2021 - £401,581). As at 31 December 2022 the charity had unrestricted funds of £2,823,846 (2021 - £2,785,517) and restricted funds of £1,657,880 (2021 - £1,610,740).
It is the policy of the Trustees to continue to build reserves and use the funds to make donations for charitable purposes. The level of donations made by the charity fluctuates year on year depending on availability of funds and need. In addition, fixed costs are kept to a minimal level and are usually funded by investment income raised in the year. As such, the Trustees do not consider the need to set a formal reserves policy.
The principal risks which affects the charity’s future financial position are an adverse movement in the value of investments held and a significant decrease in donation or investment income. These risks are monitored by the Trustees on a regular basis.
The Charity did not carry out any significant fundraising activities in the current or prior year.
Plans for future periods
The Trustees remain committed to advancing education, empowering young people from disadvantaged backgrounds through encouragement of civic engagement, leadership and mentoring initiatives and intends to continue using donations received to make charitable distributions to further this advancement. In addition, the Trustees are keen to continue to support the work of organisations engaged in interfaith dialogue and research to promote deeper understanding within and across communities. The charity has developed relationships with a number of trusted and widely respected organisations with shared objectives which it intends to continue to fund and collaborate with so as to further its aims.
In 2022, the Trust collaborated with other significant charities to successfully deliver a nationwide training programme for young British Muslim faith leaders. The aim of the programme was to develop the skills necessary for the support of their communities and especially young people. The Trust intends to build on this work going forward.
Trustees are actively looking to the long-term future of the Trust and are considering ways in which to increase the overall income from its assets with the aim of securing additional funding for its charitable objectives so that it is less reliant on external donations in the future.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Charity for the purposes of company law) 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).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees 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 of the Charities SORP (FRS 102)
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 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 Companies Act 2006. 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.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
Auditors
The auditors, Lubbock Fine LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the trustees have taken advantage of the small company exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the Trustees and signed on their behalf by:
Shireen Randeree
Trustee
Date: 29 September 2023
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RANDEREE CHARITABLE TRUST (A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RANDEREE CHARITABLE TRUST
FOR THE YEAR ENDED 31 DECEMBER 2022
OPINION
We have audited the financial statements of Randeree Charitable Trust (the 'charity') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. 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 financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RANDEREE CHARITABLE TRUST (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
OTHER INFORMATION
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RANDEREE CHARITABLE TRUST (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 financial statements.
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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
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Enquiries of management, including obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
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identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
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detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
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the internal controls established to mitigate risks related to fraud or non-compliance of laws and regulations; and
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Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes audit partners and staff who have extensive experience of working with charities in similar sectors and this experience was relevant to the discussion about where fraud risks might arise.
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Charities Act, Charities SORP 2019 and the Companies Act 2006.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty.
As a result of these procedures, we considered the particular areas that were susceptible to misstatement due to fraud were in respect of unrecorded grant commitments and the lack of dedicated finance function. Our procedures to respond to risks identified included the following:
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Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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Enquiring of management concerning actual and potential litigation and claims;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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Reading minutes of meetings of those charged with governance;
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RANDEREE CHARITABLE TRUST (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
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In addressing the risk of fraud through management override of controls; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of the charity’s operations;
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Performing after date reviews to assess the need to recognise additional grant commitments;
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� Substantive testing on a sample of transactions in the year.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
USE OF OUR REPORT
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Lee Facey (Senior Statutory Auditor)
for and on behalf of
Lubbock Fine LLP
Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB
Date: 29 September 2023
Page 8
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Raising funds 5 Charitable activities 6 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2022 £ 86,456 302,292 388,748 43,548 306,871 350,419 38,329 2,785,517 2,823,846 |
Restricted funds 2022 £ 205,155 356,300 561,455 356,299 158,016 514,315 47,140 1,610,740 1,657,880 |
Total funds 2022 £ 291,611 658,592 950,203 399,847 464,887 864,734 85,469 4,396,257 4,481,726 |
Total funds 2021 £ 418,447 386,048 |
|---|---|---|---|---|
| 804,495 | ||||
| 136,782 266,132 |
||||
| 402,914 | ||||
| 401,581 | ||||
| 3,994,676 | ||||
| 4,396,257 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 29 form part of these financial statements.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
REGISTERED NUMBER: 08820017
BALANCE SHEET
AS AT 31 DECEMBER 2022
| Note Fixed assets Investments 12 Investment property 11 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current liabilities / assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
359,528 943,741 1,303,269 (1,784,155) |
2022 £ 1,325,000 5,305,775 6,630,775 (480,886) 6,149,889 (1,668,163) 4,481,726 1,657,880 2,823,846 4,481,726 |
216,507 1,240,485 1,456,992 (334,060) |
2021 £ 812,207 4,500,000 5,312,207 1,122,932 6,435,139 (2,038,882) 4,396,257 1,610,740 2,785,517 4,396,257 |
|---|---|---|---|---|
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Shireen Randeree
(Trustee)
Date: 29 September 2023
The notes on pages 12 to 29 form part of these financial statements.
Page 10
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Dividends, interests and rents from investments Purchase of investments Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 19 The notes on pages 12 to 29 form part of these financial statements |
2022 £ (590,465) 293,721 - 293,721 (296,744) 1,240,485 943,741 |
2021 £ (413,236) 272,112 (800,000) (527,888) (941,124) 2,181,609 1,240,485 |
|---|---|---|
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. GENERAL INFORMATION
The charity is a private company limited by guarantee, incorporated in England and Wales. Its registered office and principal place of business is 85 Strand, London, WC2R 0DW. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
The financial statements are presented in sterling which is the functional currency of the charity and are rounded to the nearest £.
2. ACCOUNTING POLICIES
2.1 Basis of preparation of 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Randeree Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Consolidation
In the opinion of the Trustees, the charitable company and its subsidiary undertakings comprise a small group. The charitable company has therefore taken advantage of the exemption provided by Section 398 of the Companies Act 2006 not to prepare consolidated accounts. In addition, the aggregate gross income of the charitable company and its subsidiaries after taking into account consolidation adjustments was less than £1m and therefore there is no requirement to prepare consolidated accounts in accordance with the Charities Act.
2.3 Going concern
The Charity is in the main reliant on donation and rental income and the support of related parties to meet its running costs. Due to the nature of its activities, the majority of the Charity's expenditure is incurred directly on grant making and so the Charity is able to control its direct charitable expenditure based upon the level of donation and rental income that it has received and the anticipated ongoing support of related parties.
The Trustees consider it appropriate to prepare the financial statements on a going concern basis on the assumption that sufficient incoming resources will be generated to meet the Charity's running costs. The financial statements do not include any adjustment which would result if there were insufficient funds available in respect of the Charity's operations.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2. ACCOUNTING POLICIES (CONTINUED)
2.4 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donation income is recognised in the period when the pledge is made.
Rental income is recognised when due with the relevant accrued and deferred income adjustments processed.
On receipt, donated professional services, donated facilities and donated properties are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.
2.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and governance costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT except for transactions relating to opted to tax investment properties.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2. ACCOUNTING POLICIES (CONTINUED)
2.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(Losses) in the Statement of Financial Activities incorporating Income and Expenditure Account.
Investments in subsidiaries are valued at cost less provision for impairment.
2.8 Investment Property
Investment property is carried at fair value derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.
2.9 Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities incorporating Income and Expenditure Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
2.10 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.12 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
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RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2. ACCOUNTING POLICIES (CONTINUED)
2.13 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
2.15 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.
2.16 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account.
Page 15
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
3. INCOME FROM DONATIONS AND LEGACIES
| Unrestricted funds 2022 £ Donations and gifts 86,456 Unrestricted funds 2021 £ Donations and gifts 335,207 |
Restricted funds 2022 £ 205,155 Restricted funds 2021 £ 83,240 |
Total funds 2022 £ 291,611 |
|---|---|---|
| Total funds 2021 £ 418,447 |
4. INVESTMENT INCOME
| Unrestricted funds 2022 £ Rental Income 291,340 Lease incentives 8,571 Bank interest receivable 2,381 302,292 Unrestricted funds 2021 £ Rental Income 271,912 Lease incentives 8,571 Bank interest receivable 200 280,683 |
Restricted funds 2022 £ - 356,300 - 356,300 Restricted funds 2021 £ - 105,365 - 105,365 |
Total funds 2022 £ 291,340 364,871 2,381 |
|---|---|---|
| 658,592 | ||
| Total funds 2021 £ 271,912 113,936 200 |
||
| 386,048 |
Page 16
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
5. EXPENDITURE ON RAISING FUNDS
Costs of raising voluntary income
| Unrestricted funds 2022 £ Management fees 13,528 Property costs 30,020 43,548 Unrestricted funds 2021 £ Management fees 12,770 Property costs 18,647 31,417 |
Restricted funds 2022 £ - 356,299 356,299 Restricted funds 2021 £ - 105,365 105,365 |
Total funds 2022 £ 13,528 386,319 |
|---|---|---|
| 399,847 | ||
| Total funds 2021 £ 12,770 124,012 |
||
| 136,782 |
Page 17
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Summary by fund type
| Unrestricted funds 2022 £ Grants making activity 264,898 Mosaic Leadership Programme 41,973 306,871 Unrestricted funds 2021 £ Grants making activity 193,632 |
Restricted funds 2022 £ 79,000 79,016 158,016 Restricted funds 2021 £ 72,500 |
Total 2022 £ 343,898 120,989 |
|---|---|---|
| 464,887 | ||
| Total 2021 £ 266,132 |
7. ANALYSIS OF EXPENDITURE BY ACTIVITIES
| Grant making activity Mosaic Leadership Programme Grant making activity |
Activities undertaken directly 2022 £ - 79,016 79,016 |
Grant funding of activities 2022 £ 230,624 - 230,624 Grant funding of activities 2021 £ 170,312 |
Support costs 2022 £ 113,274 41,973 155,247 Support costs 2021 £ 95,820 |
Total funds 2022 £ 343,898 120,989 |
|---|---|---|---|---|
| 464,887 | ||||
| Total funds 2021 £ 266,132 |
Page 18
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
7. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)
ANALYSIS OF SUPPORT COSTS
| Professional fees - non property Management fees Audit and accountancy fees Electricity Rent and rates Bad debts Impairment of investment Entertainment Travelling and accomodation Bank charges Professional fees - non property Management fees Audit and accountancy fees Professional fees Stationery Entertainment Electricity Rent and rates |
Grant making activity 2022 £ 46,546 29,400 12,782 304 198 11,836 12,207 - - 113,274 Grant making activity 2021 £ 1 47,745 25,800 11,040 10,203 214 50 289 478 95,820 |
Mosaic Leadership Programme 2022 £ 39,500 - 2,256 - - - - 180 38 41,973 Mosaic Leadership Programme 2021 £ - - - - - - - - - - |
Total funds 2022 £ 86,046 29,400 15,038 304 198 11,836 12,207 180 38 |
|---|---|---|---|
| 155,247 | |||
| Total funds 2021 £ 1 47,745 25,800 11,040 10,203 214 50 289 478 |
|||
| 95,820 |
During the current and prior year, the charity had no employees and therefore no employees with remuneration above £60,000.
Page 19
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
8. ANALYSIS OF GRANTS
| Cambridge Muslim College The Woolf Institute Azhar Academy Muslim Aid St Edmunds College Prince's Trust International Al Mannar British Institute of International and Comparative Law Other grants to institutions |
Grants 2022 £ 44,408 60,000 20,500 20,000 32,216 10,000 10,000 15,000 18,500 230,624 |
Total funds 2022 £ 44,408 60,000 20,500 20,000 32,216 10,000 10,000 15,000 18,500 |
|---|---|---|
| 230,624 |
The Charity entered into a License to Occupy arrangement commencing 3 November 2022 with two beneficiaries in respect of a property leased by the Charity. The license fee payable by the beneficiaries to the Charity was a peppercorn. This arrangement was entered into as a way to further the Charity's objectives.
| Faith Belief Forum Cambridge Muslim College The Woolf Institute Azhar Academy Muslim Aid The Muslim Cultural Heritage Centre Trust UKIM West London Islamic Centre Islamic Relief City University Kings College Other grants to institutions Grants to individuals |
Grants 2021 £ 10,000 48,445 30,000 20,000 20,000 10,000 10,000 10,000 10,610 (17,143) 13,000 5,400 170,312 |
Total funds 2021 £ 10,000 48,445 30,000 20,000 20,000 10,000 10,000 10,000 10,610 (17,143) 13,000 5,400 |
|---|---|---|
| 170,312 |
Page 20
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
9. AUDITORS' REMUNERATION
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual | ||
| accounts | 11,950 | 8,000 |
| Fees payable to the Charity's auditor in respect of: | ||
| All non-audit services not included above | 3,088 | 3,040 |
10. TRUSTEES' REMUNERATION AND EXPENSES
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL).
11. INVESTMENT PROPERTY
| Valuation At 1 January 2022 Additions At 31 December 2022 |
Freehold investment property £ 4,500,000 805,775 |
|---|---|
| 5,305,775 |
The historical cost of the investment properties as at 31 December 2022 was £5,321,785.
The freehold investment properties were valued at £5,305,775 as at 31 December 2022 by the Trustees who are qualified property managers.
On 17 April 2018 an option was granted by the Charity to a beneficiary to purchase an investment property from the Charity within five years at an agreed price of £1.6m which is also the considered valuation at 31 December 2022. The option was exercised in January 2023 and the property was sold to the beneficiary for the agreed price.
On 1 June 2022, an investment property with a valuation of £800,000 was gifted to the charity from a subsidiary company, Swallow Holdings Limited.
Page 21
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12. FIXED ASSET INVESTMENTS
| Cost or valuation At 1 January 2022 Additions At 31 December 2022 Impairment Charge At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Investments in subsidiary companies £ 812,207 1,325,000 |
|---|---|
| 2,137,207 | |
| 812,207 | |
| 812,207 | |
| 1,325,000 | |
| 812,207 |
On 1 June 2022 a property with a value of £800,000 owned by Swallow Holdings Limited, a subsidiary company, was transferred to the Charity. The investment in the subsidiary was subsequently impaired by £800,000 to reflect the revised value of the shares following the transfer of the property. The impairment has been set off against the income totalling £800,000 arising from the gift of the property on the Statement of Financial Activities due to the transactions being connected.
PRINCIPAL SUBSIDIARIES
The following were subsidiary undertakings of the Charity with the Charity owning 100% of the ordinary share capital of each entity:
| Names | Company | Registered office or principal | Principal activity |
|---|---|---|---|
| number | place of business | ||
| Mossley Hill-BG Properties | 8329 | Second Floor, The Quadrant, | Property Investment |
| Limited | Manglier Street, P.O Box 1312 | ||
| Victoria, Mahé | |||
| Swallow Holdings Limited | 8630 | Second Floor, The Quadrant, | Property Investment |
| Manglier Street, P.O Box 1312 | |||
| Victoria, Mahé | |||
| Mall Holdings Ltd | 14299 | Second Floor, The Quadrant, | Property Investment |
| Manglier Street, P.O Box 1312 | |||
| Victoria, Mahé |
Page 22
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12. FIXED ASSET INVESTMENTS (CONTINUED)
The subsidiaries prepare financial statements to 31 March each year which is not coterminous with the Charity. The financial results of the subsidiaries for the year ended 31 March 2023 were:
| Names | Income | Expenditure | Profit/(Loss) | Net assets / |
|---|---|---|---|---|
| £ | £ | / Surplus/ | (liabilities) | |
| (Deficit) for | £ | |||
| the year | ||||
| £ | ||||
| Swallow Holdings Limited | - | (786,529) | (311,389) | (135) |
| Mall Holdings Ltd | 117,107 | (41,412) | 61,869 | 1,565,257 |
Mossley Hill-BG Properties Limited was dormant during the year ended 31 March 2023 and had net assets of £nil at the balance sheet date.
13. DEBTORS
| Trade debtors Other debtors Prepayments and accrued income |
2022 £ 16,568 267,265 75,695 359,528 |
2021 £ 21,445 189,651 5,411 |
|---|---|---|
| 216,507 |
Page 23
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income Grants payable |
2022 £ 187,000 2,828 872 1,329,547 202,759 61,149 1,784,155 |
2021 £ 187,000 2,090 7,070 4,548 105,092 28,260 |
|---|---|---|
| 334,060 |
Deferred income of £30,136 (2021 - £39,462) relates to 2023 rental income received in advance. Deferred income also includes a landlord contribution on a new lease totalling £38,029 (2021 - £32,183) which will be released to the Statement of Financial Activities as related expenditure is incurred.
Included in accruals is a lease incentive creditor totalling £8,571 (2021 - £8,571) which will be released to the Statement of Financial Activities over the term of the lease.
Other loans totalling £187,000 (2021 - £187,000) are unsecured, interest free and repayable on demand.
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 1,668,163 | 2,038,882 |
Deferred income also includes a landlord contribution on a new lease totalling £1,400,306 (2021 - £1,762,452) which will be relased to the Statement of Financial Activities as related expenditure is incurred.
Included in accruals is a lease incentive creditor totalling £267,857 (2021 - £276,429) which will be released to the Statement of Financial Activities over the term of the lease.
Page 24
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
16. STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR
| Unrestricted funds General Funds Restricted funds Property Fund Property lease incentive Fund Zakat Fund Mosaic Leadership Programme Fund Total of funds |
Balance at 1 January 2022 £ 2,785,517 1,600,000 - 10,740 - 1,610,740 4,396,257 |
Income £ 388,748 - 356,300 120,087 85,068 561,455 950,203 |
Expenditure £ (350,419) - (356,300) (79,000) (79,015) (514,315) (864,734) |
Balance at 31 December 2022 £ 2,823,846 |
|---|---|---|---|---|
| 1,600,000 - 51,827 6,053 |
||||
| 1,657,880 | ||||
| 4,481,726 |
The Property Fund relates to the property referred to in Note 11.
The property lease incentive relates to a contribution towards service charges, insurance premiums, rates utilities and other financial outgoings for Park Crescent.
The Zakat Fund represents donations received which are to be spent on Zakat eligible projects.
Mosaic Leadership Programme Fund relates to training for British Muslim faith leaders to develop the skills necessary to support their communities and young people.
Page 25
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
16. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR
| Unrestricted funds General Funds Restricted funds Property Fund Property lease incentive Fund Total of funds |
Balance at 1 January 2021 £ 2,394,676 Balance at 1 January 2021 £ 1,600,000 - 1,600,000 3,994,676 |
Income £ 615,890 Income £ 105,365 83,240 188,605 804,495 |
Expenditure £ (225,049) Expenditure £ (105,365) (72,500) (177,865) (402,914) |
Balance at 31 December 2021 £ 2,785,517 |
|---|---|---|---|---|
| Balance at 31 December 2021 £ 1,600,000 10,740 |
||||
| 1,610,740 | ||||
| 4,396,257 |
Page 26
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
17. ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
| Unrestricted funds 2022 £ Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year 1,325,000 3,705,775 (192,946) (1,746,127) (267,856) 2,823,846 Total ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unrestricted funds 2021 £ Investment propert Fixed asset investments y Current assets Creditors due within one year Creditors due in more than one year 812,207 2,900,000 (348,383) (301,877) (276,430) 2,785,517 Total |
Restricted funds 2022 £ - 1,600,000 1,496,215 (38,028) (1,400,307) 1,657,880 Restricted funds 2021 £ - 1,600,000 1,805,375 (32,183) (1,762,452) 1,610,740 |
|---|---|
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Page 27
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
| 18. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW ACTIVITIES Net income for the year (as per Statement of Financial Activities) Adjustments for: Impairment on investments Dividends, interests and rents from investments Increase in debtors Decrease in creditors Interest receivable Non cash donations Net cash used in operating activities 19. ANALYSIS OF CASH AND CASH EQUIVALENTS Cash in hand Total cash and cash equivalents 20. ANALYSIS OF CHANGES IN NET DEBT At 1 January 2022 £ Cash at bank and in hand 1,240,485 Debt due within 1 year (187,000) 1,053,485 |
FROM OPERATING 2022 2021 £ £ 85,469 401,581 12,207 - (291,340) (271,912) (143,021) (125,699) (251,399) (104,799) (2,381) (200) - (312,207) (590,465) (413,236) 2022 2021 £ £ 943,741 1,240,485 943,741 1,240,485 Cash flows At 31 December 2022 £ £ (296,744) 943,741 - (187,000) (296,744) 756,741 |
|---|---|
Page 28
RANDEREE CHARITABLE TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
21. OPERATING LEASE - LESSOR
As at 31 December 2022 the total of the Charity's future minimum lease receipts under non-cancellable operating leases was:
| Not later than 1 year Later than 1 year and not later than 5 years |
2022 £ 109,000 45,000 154,000 |
2021 £ 90,000 135,000 |
|---|---|---|
| 225,000 |
The Charity receives rent from leasing out investment properties.
22. RELATED PARTY TRANSACTIONS
During the year, property management fees of £13,528 (2021 - £12,770) were charged by Pelham Incorporated Limited, a company in which Shireen Randeree, a trustee, is a director and controlling shareholder.
During the year the charity received gifts in kind, for administration and rental space, at a value of £15,000 (2021 - £15,000) from Pelham Incorporated Limited.
At 31 December 2022, an amount of £267,264 (2021 - £172,507) was held in a client account and was due from Pelham Incorporated Limited.
During the year, £57,712 (2021 - £42,079) was paid to Treasured Insight Limited for key management personnel services provided in the year.
23. POST BALANCE SHEET EVENTS
The option referred to in note 11 was exercised in January 2023 and the property was sold to the beneficiary for the agreed price.
In May 2023, an investment property owned by a subsidiary of the Charity with a value of £1.325m was gifted to the Charity.
Page 29