Whitethread Institute Report and Accounts Period ended 31rt July 2020 Charity number: 1172677 Whitethread Institute Contents Referen￿ and AdMlnL8trat￿e detalls..................................................................................................... Trustees, Report.....................................................................-................... Independent Examinerfs Report... .. . Statement of Financial ArtNities........ ..... Balance Sheet...-....-..-.-.........-.-......-..............................-..................... Statement of Cash Flows . .10 Nolesto the Accounts....- .11 PaBe 2 of 15 Whitethread Institute Reference and Administrative details Charlty name Whrtethread Institute Regbtered ch￿lty number 1172677 Principal office address 32>333 High Street Stratford London E15 2TF Chalrperson A Mangera Trustees A Mangera M Batha M Mangern R Esakjee Bankers Unity Trust Bank Nine Brindleyplace Birmin8ham BI 2HB Independent Examiner SK Accountsnts Old Poplar Library 45 Gillender Street Poplar E14 6RN Pa8e 3 of IS VJhitptf..-, Part Inst tuto Trustees, Report The trustees have pleasure in presenting their rew)rt and the financial statements for the charity for the period ended 31" Juty 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities= Statement of Recommended PractKe applicable to charities preparing their acwunts in accordance with the Flnancial Reportingstandard applicable in the UK and Republic of IreLind IFRS 1021 leffectrve ljanuary 20151. The trustees have considered the Charity Commission's guidance on pU￿1C benefrt. including the 8uidance'public benefit- runnin8 a charity IPB21'. The Tmstees present their report and the financial statements for the perh)d ended 31" July 2020. The Trustees who seNed durlngthe period and up to the date of thi5 report are set out on page 3. Structyre. Governance and Management The Charity is constituted as a Charitable Incorporated Organi5ation ICIOI Foundatbon, as a bodv corporate under Part 11 of the Charities Act 2011 on 21 April 2017. The ao registered with the Charity Commission on the same day. Objertives and Activities To athnce the religion of Islam for the public benefft in accordance with the beliefs and practlces of the four recognized Sunni schools of thought, including the provision of education and training of Muslim leaders and scholars to work in the United Kingdom and elsewhefe; and through this to promote and advance religious and racial hamlony within the United Kingdom. Achlevements and Performance In the third academicyear of the Whrtethread Instttute. the institute ran eight full-year programs. two more than the prevK)us year comprising of a module from one of our Academit tourses. We had reached a hundréd students enrollin8 in our full-time courses. We ran a course for women only whlch attracted 138 participants and a finance cOu￿e which 42 students took part in. Our student body represents l￿enty*1ght countries. spanning six continents. many of whom benefrt from our ccmjrses online. Some of these countries include America. Canada. Australia, New Zealand, Burma, Kenya and Venezuela, to name a few. Signrficantly. a large proportion of our students a￿ those already Invo￿e￿ in teaching in their respectrve communities. Moreover, 60% of our student are female students. Page 4 of 15 W4itethYead Institute 1.. Financial Review The Charity Started with £143,660 ofwhich £2,276 was restricted fvnds for sponsoring students. The third year of the Institute's courses started in September 2019 in line with the UK academic school year. Approximately £79.CQO were raised through donations in the 16 months to 31 July 2020, and around £117,C(JO came through course fees. The restricted funds were used to sponsor student fees for those who We￿ elwble for the institute's S￿nsorship polKv. Income for the 16 month period to 31" Juty 2020 amounted to £204.371 and expendtture amounted to £80.655, which resulted in a surplus of £123,716. Reserves Pollcy Per the Charr¢y Commission guidance, the Trustees re8ularty review the level of income reserves that it considers appropriate. At 31° July 2020. the Trustees consider it appropriate to aim to hold unrestricted reserves equivalent to three months, core operational running costs which a￿ in the region of £13.5￿. The unrestricted reserves at 31 July 2020 amounted to £265,806. Page S of IS lfvhitpth,'pad. !n.stitLItr Statement of Trustees, Responslbllltles The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and Untted Kingdom Accounting Standards (United Kingdom Generally Accepted Accountin8 Practice). Law applicable to charrties in England and Wale5 requires the trusteesto prepare financial statements for each financial year, which give a true and fair v￿¥ of Charity and of the incoming resources and application of resources of the Charity for that year. In preparing these financial statements the Trustee5 are required to: select suitable accounting policies and then appty them consistent￿. observe the methods and principles in the Charities SORP- make judgments and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed. sublert to any material departures disclosed and eXp￿Ined in the financial statements; and prepare the financial statements on the going con￿rn basis unless it is inappfoprlate to presume that the charity will continue in operatKIn. The trustees are responsible for keepi￿ proper accountin8 records which di5c105e with reawnable accuracy at arbv time the financial p051tion of the charity and enable them to ensure that the financial statements compty with the Charities Act 1993 and the tharity IAccounts and Reportsl Regulations 2￿8. They are also responsible for safeguarding the assets of the tharity and hence for taking reasonable steps for the prevention and detection of fraud and other. Approved by the tNstees and signed on its behalf by Date: DrAbdur-Rahman Mangera Chairperson, Board of Trustees Pa8e 6 of IS '6fvhitt.thrp.ad IriJlltute Independent Examinerfs Report To the trustees of Whltethread Institute l ￿port on the accounts of the above charitable incorporated organisation for the perk)d ended 31 July 2020, whlch are set out on pages 8 to 15. Respertive responsibilltles of trustees and examiner The charivs trustees are responsible for the p￿paratIon of the accounts in accordance with the requirements of the Charities Act 20111.the Acfl. The ChartVs trustees consider that an audit is not required for this period under section 144 of the Act and that an independent examination bs needed. It is my responsibility to: examine the accounts under section 145 of the Charities Att, to follow applicable Dirertions given by the Charty Commission (under sett￿fi 14515llbl of the Act, and To stste whether particular matters have come to my attention. Ba515 of independent examlnerfs ststement My examination was carried out in accordance w￿h general Directions glven by the Charity Commission. An examination includes a revbew of the accounting records kept by the charity and a comparison of the accounts presented wrfih those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The proCedU￿S undertaken do not provhle all the evidence that would be ￿qUired in an audit. and consequently no opinion is given as to whether the accounts present a 'true and fairf view and the report Is limited to those matters set out in the statement below. Independent examlner's statement In connertion with my examination, no material matters have come to my attention which gives me cause to believe that in. any material respect.. accounting records were not kept in accordance with SeCt￿n 130 of the Charities Ad or the accounts do not accord with the attounting ￿ordS I have no concerns and have come across no other matters in connection with the examination to which attention shoukl be drawn in order to enable a proper vnderstandin8 of the accounts to be reached. Dale: SK Accountants Address: Old Poplar Library. 45 Gillender St. Poplar. E14 6RN Page 7 of 15 Whitett4redd Instiliite Statement of Financial Activities Period Ended 31 July 2020 Unrestricted Restrlrted funds 2020 Total fvnds 2019 Totsl funds Incomin8 resources Donations and legacies Charitable artivities 78,785 116,999 8.587 87,372 116,999 22,023 76,168 Total Incomlng resources 195.784 204?71 98,191 Resoufces expended Charitable activities (71.3621 19.2931 180.6551 143,9251 Total Resources expended 171,3621 19.2931 180,6551 143,9251 Net Incon*/lexpenditure) 124,422 123.716 54,266 Net movement in funds 124,422 (7061 123,716 54.266 Recondllotlon oAfvnds.' Total funds brought forward 141.384 2.276 143,660 89,394 Total funds carried forward 265A)6 1,570 267376 143,660 Page 8 of 15 White.thrÉ3d Institute Balance Sheet As at 31 July 2020 Vnrestrirted Restricted funds funds 2020 Total funds 2019 Total funds Notes Current assets Cash at bank and in hand 268,287 1.570 269.857 147,097 Totol current ossets 268,287 1.570 269￿57 147,097 ditors: amounts falling due within one year 12,4811 12,4811 13.4371 Net current assets/lllobllltlesJ 265,806 1.570 267,376 143,660 Total assets less current liabilities 265￿6 1,570 267,376 143,660 Credltors: amunts falllng due afterone year Total net 055ets or lia￿litIeS 265,806 1,570 267,376 143,660 Funds of the Charity Restflcted income funds Unrestricted fund5 io 1.570 1,570 265,806 2,276 141.384 265.￿6 Totalfvnds 265,%)6 1,570 267,376 143,660 The flnancial statements were approved and authorised for issue bythe Board and signed on its behalf Date.. DrAbdur-Rahrnan Man8era Chairperson, Board of Trustees Page 9 0115 White+hread Institute. Statement of Cash Flows 2020 2019 Cash flows from operatlng actlvltles: Net movement in fund5 Less decrease in credicors 123.716 19561 54.266 827 Net cash Ilow of operatlng artivltles 122,760 55,093 Change In cash and cash equlvalents In the year 122,760 55,093 Cash and Cash equivalents brought forward 147.097 92.1￿￿ Total cash and cash equlydlents at the end of the year 269.857 147,097 Page 10 of 15 Vhite.+hrvad Institute Notes to the Accounts l. Accounting Polieies The principal accounting p)Ildes adopted. judgements and key Sour￿ of estimat￿1￿ uncertainty in the preparation of the flnanclal statements are as follows: Basls of preparation {FRS1021 The financial statements have been prepared in accordance with Accovntlng and Reporting by charities: Statement of Recommended Practice applicable to charfties preparing their accounts in accordance wlth the Financial Re￿rtIng Standard applicable in the UK and Republic of Ireland IFRS 1021 leffectwe l January 20151- (Charities SORP IFRS 10211, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 and the Charitie5 Act 2011. Whlteth￿ad Institute meets the definition of a public kenefit entity under FR5 102. Assets and liabilities are Initlally recognised at historical c05t or transaction value unless otherwise Stated in the relevant accounting policy notelsl. Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the ttemlsl of income have been met. it is probabbe that the income will be received. and the amount can be measured reliably. Income. whether 'capf(aV grants or 'revenue' grants. is recognised when the charlty has entitlement to the funds, any performance conditions attached to the grants have been met, rt 15 probable that the income will be re￿Ived, and the amount can be measured reliably and is not deferred. Income recewed in advance of a Project or provis￿n of other specTf*d seNice is deferred until the criteria for income recognitlon are met. Donated services and f•cilitles Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated wrth the donated item have been met. the receipt of economic benefit from the use by the charity of the item ￿ probable and that economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are retognised based on the value of the gift to the charity which is the amount the charitywould have beenwilling to payto oL*ain seNice5 or facilit￿$ of equNalent etonomic benefit on the o￿n market. Page 11 of IS li i lethrpad In%t:'tLIt¢4 Fund accountln Unrestricted funds a￿ available to spend on artN[t￿ that further any of the wrp)ses of charity. De5i8nated funds are unrestricted funds of the chaiity which the Trustees have de¢KJed to set asKletO Lse fw a speafK pUT￿se. RestrKted fund5 are donations which the donor has Specif￿ a￿ to be solety used for areas of the chariWs work or for specrf projects bein8 undertaken by the charty. Expendlture Expenditure is recognised on￿there is a legal orconstructive obligat￿n to make a payment toa third party, it 15 probable that settlement will be required. and the amount of the obligation can be measured reliably. Expenditure is classif￿d underthe following artNty headings: Irrecoverable VAT is charged as a cost against the actwity for which the expenditure was inturred. Allocation af support Costs Support costs are those functions that assist the work of the charlty but do not directly undertake charitable activfties. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charivs artistic programmes and artivities. Support cost5 have been allocated in proportion to expenditure incurred in undertaking an artivity. Tangib5e fixed a55et5 Indwidual fixed assets costing £5LKI or more are oprtaltsed at cost and are depreciated over their estimated useful econornic Ir¥es on a reduan8 balance basis as follows- Annual rate Fixtures, Fittin85 and Ekrtrtsl equipment Debtors Trade and other debtors are reCcen￿ed at the settlement amount due after any trade dlscount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand Cash at bank and cash in hand includes cash and amourts in deposit accounts. Creditors and provislons Creditor5 and wovisions are recognised where the chartty has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be meaSU￿d or estimated relrabty- Creditors and prov15￿n$ awe normal reCOgn￿ed at their Sett￿rnent amount after allowing for any trade discounts due. Page 12 of 15 lJJh;tethread Institute 2. Anatysi5 of Incornln8 Resources 2019 Total funds Total fund5 Donations and legacies Charitable actiVit￿S 78,785 116,999 195,784 8.587 87,372 116,999 204371 22,023 76,168 98.191 Total 8,587 3. Analysls of Resources expended Support 2020 Tolal 2019 Total Charflable acllvltie ActNrtw undertaken direct￿. 33.274 12.494 34,887 80.655 43.925 Total 33.274 12,494 34,887 80.656 43,925 4. Analysls of stsff costs, Charlty remuneratlon and expense5, and key management personnel. 2020 2019 Salaries and Staff Wages. Social secur￿ Costs Totsl 33.797 22,086 523 15231 33.Z74 22,609 No employees had empbyee benefrts more than £￿.(￿￿) The charity trustees were not paid or received any other ber*frts from employment with the charity, neither We￿ they reimbursed expenses duriNd the period. No other charity ￿ceiVed payment for profe55ional Of Other services supplied to the charity. Page 13 of IS Whitpth:e3d In