## 



## 

## 

||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. 

6 



## **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 

7 



## 

|||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<br>Analysis of income|2<br>Analysis of income||||||||
|---|---|---|---|---|---|---|---|---|
|||||||2022|2021||
|Grants and major donations||||||12,326,815|||
|Other donations||||||7,277|||
||||||||10,576,000||
|2 (i) Gifts<br>in Kind|||||||||
|Gifts<br>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<br>,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<br>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<br>/|(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|





## 

## 

##