2022-12-31-accounts - The Institute Of Ismaili Studies

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	Page
Reference and Administrative information	1
Trustees' report	2-5
Independent Auditors' Report to the Trustees of The Institute of Ismaili Studies	6-7
Statement of Financial Activities, including Income and Expenditure Account	8
Balance Sheet	9
Cash Flow Statement	10
Notes to the Financial Statements	11- 19

Independent Auditor's report to the Trustees of The Institute of lsmaili Studies

Opinion

We have audited the financial statements of The Institute of lsmaili Studies ('the charity') for the year ended 31 December 2022, which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

give a true and fair view of the state of the charity'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;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (FRC's) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the Trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date the financial statements are authorised for issue.

The other information comprises the information included in the annual report, including the Trustees' report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity 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 the Companies Act 2006 requires us to report to you if, in our opinion:

the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Independent Auditor’s report to the Trustees of The Institute of lsmaili Studies

(continued)

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement on page 5, the Trustees are responsible for the preparation of financial statements which 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 charity's ability to.continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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

Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to the acts by the charity, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements. We evaluated trustees' incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated income.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, ·enquiries of management and review of internal reports in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.orq.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity'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 charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its members as a body, for our audit work, for this report, or for the opinions we have formed.

UHY Hacker Young

Colin Wright (Senior Statutory Auditor) for and on behalf of UHY Hacker Young

Chartered Accountants Statutory Auditor

26 May 2023

Quadrant House

4 Thomas More Square London E1W 1YW

		Total	Total
	Notes	2022	2021
Incoming resources
Incomefrom Donations and Legacies:
Grants and donations	2,19	12,334,092
Gift in Kind	2, 19	6,244,758	5,117,731
Other income	2	1 ,457		320
Total			15,694,051
Resources expended
Expenditure on:
Charitable activities	3	17,592,147
Total		17,592,147	15,638,580
Surplus for the year	12	988,160	55,471
Reconciliation of funds:
TotalFunds brought forward		1,731,078
Total Funds carried forward		2,719,238	1 ,731	,078

	Notes	31 December	2022	31 December	2021	2021
Fixed assets
Tangible assets	8	92,162		110,026
Heritage assets	8	196,250		179,793
Total fixed assets			288,412			289,819
Current assets
Debtors	9	1,918,697
Cash at bank and in hand	17			707,315
Total current assets		3,287,926		2,155,278
Creditors: amounts falling due within one year	10	(857,100)		(714,019)
Net current assets					1	,441	,259
Net assets			2,719,238		1,731,078
Share capitaland reserves
Called up share capital	11		100				100
Funds of the charity
Unrestricted funds	12		2,719,138
Total funds			2,719,238		1,731,078

	Notes	2022	2021
Net cash inflowfrom operating activities	16	733,842	292,258
Cash flow from investing activities
Purchase of tangible assets	8	(71 ,928)	(100,907)
Net cash used in investing activities		(71 ,928)	(100,907)
Net increase in cash	17	661,914	191 ,351
Cash at beginning of year		707,315	515,964
Cash at the end of the year	17		707,315
Cash consists of:
Cash at bank and in hand	17		707,315

Furniture, fixtures & fittings	10
Office machinery and equipment	33
Intangible fixed assets (software)	14
Heritage Assets	Nil

2 Analysis of income	2 Analysis of income
						2022	2021
Grants and major donations						12,326,815
Other donations						7,277
							10,576,000
2 (i) Gifts in Kind
Gifts in Kind from	Aga Khan Foundation (United Kingdom) (note 19)					6,244,758	5,117,731
						6,244,758	5,117,731
2 (ii) Other Income
Other income						1 ,457		320
						1,457		320
2 (iv) Income analysed by country
Switzerland
United Kingdom	(including Gift	in Kind)				6,253,492	5,118,051
						18,580,307	15,694,051
3 Analysis of Charitable Expenditure
			Researchand	Graduate	Library and	2022 Total	2021 Total
			Academic	Programmes	Special
			Publications		Collections
Direct Educational Expenditure			4,036, 183	5,877,483	534,204		8,891	,550
Support Costs				3,914,686	361,304	6,978,881
Governance Costs			63,895	93,044	8,457	165,396	66,241
				9,885,213	903,965	17,592,147	15,638,580

	Researchand	Graduate	Library and	Governance	2022 Total	2021 Total
	Academic	Programmes	Special	Costs
	Publications		Collections
Legal and professional Fees				32,104	32,104	26,993
Staffcosts	514,932	745,793	69,050	133,292	1,463,067
Other costs	2,187,959	3,168,893	292,254		5,649,106	5,266,391
Total Support and Governance costs	2,702,891	3,914,686	361,304	165,396	7,144,277

	2022	2021
Auditors' remuneration: auditfees	25,000	24,343
Auditors' remuneration: Secretarialand tax services	7,104	2,650
Depreciation of tangible fixed assets	73,335	80,466

(i) Staff Costs
	2022	2021
Permanentstaff:
Salaries and wages		5,212,286
Social security costs	630,761	568,723
Pension costs (defined contribution scheme)	547,475	524,078
Other costs	112,634	284,147
	6,924,936	6,589,234

	2022	2021
Band
E60,ooo to f69,999	9	6
f70,ooo to E79,ooo	1	3
E80,OOO to f89,999	4	4
E125,OOO to E129,999		1
E130,ooo to f134,999		1
E135,OOO to €139,999

contributio	ns are:
		2022	2021
Aggregate	emoluments	904,625	984,922
Aggregate	employer's contributions to pension scheme	83,839	94,853

	Office	Books	Heritage	Total
	Equipment		Assets
Costs
At 1 January 2022	939,890	835,193	179,793
Additions	21,806	33,665	16,457	71,928
Disposal	(44,001)			(44,001)
At 31 December 2022	917,695	868,858	196,250
Depreciation
At 1 January 2022	877,768	787,289		1,665,057
Charge for theyear	46,620	26,715		73,335
Elimination on disposal	(44,001)			(44,001)
At 31 December 2022	880,387	814,004		1,694,391
Net book value
At 31 December 2022	37,308	54,854	196,250	288,412
At 31 December 2021	62,122	47 ,904	179,793	289,819

	2022	2021	2021
Amountowed by Islamic Publications Limited (related party)	489,397		412,206
Prepayments			970,486
Other debtors	201 ,893		65,271
	1,918,697	1	,447,963

	2022	2021
Analysis of creditors
Trade and other creditors	623, 743	536,604
Accruals	233,357	177,415
	857,100	714,019

						2022		2021
100	ordinary	shares	of	El	each		100		100

12 (i) Unrestricted funds
	2022	2021
1 January	1,730,978
Surplus for the financial year	988,160	55,471
31 Decernber	2,719,138	1,730,978

12 (ii) Reconciliation of movements in funds:
	2022	2021
Surplusfor the financial year	988,160	55,471
Funds brought forward	1,731,078
Funds carried forward	2,719,238	1,731,078

Represented by:
	2022	2021
Tangible fixed assets	288,412	289,819
Current assets	3,287,926	2,155,278
Current liabilities	(857,100)	(714,019)
Balance at 31 December	2,719,238

			2022	2021
Net income			988,160	55,471
Depreciation on tangible fixed assets			73,335	80,466
Increase /	(decrease)	in creditors	143,081	(37,017)
(Increase)	/ decrease	in debtors	(470,734)	193,338
Netcash	inflow from	operatingactivities	733,842	292,258

	2022	2021
Changes in the year
At 1 January	707,315	515,964
Net cash inflow from operating and investing activities	661,914	191,351
At 31 December	1,369,229	707,315

	2022	2021
Purchase of tangible assets	71 ,928	100,907
Net cash outflow for capital expenditure	71,928	100,907