Charity registration number: 1179149
KASGUMA HEALTH WELFARE TRUST
Annual Report and Financial Statements
for the Year Ended 31 March 2022
KASGUMA HEALTH WELFARE TRUST
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 15 |
KASGUMA HEALTH WELFARE TRUST
Reference and Administrative Details
Trustees Zaid Rehman Mohammed Mustafa Rabnawaz Khan Nazar Hussain Mr Mohammed Munir Charity Registration Number 1179149 Principal Office 15 Alexandra Road Oldham OL8 2BG Auditor Riaz Ahmad & Co Limited Chartered Certified Acountants Lord House 51 Lord Street Manchester M3 1HE
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KASGUMA HEALTH WELFARE TRUST
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2022.
Objectives and activities
Objects and aims
The object of the charity is to provide relief to persons, whether or not they are resident or temporarily located in Pakistan but in particular citizens of Kasguma who are in conditions of need, hardship or distress as a result oflocal, national or international disaster or by reason of their social and economic circumstances and to relieve sickness and to preserve and protect good health outcomes.
To improve healthcare in Kashmir.
Objectives, strategies and activities
The Charrity has started activity in the year by raising funds for many different health and welfare projects. These include
. Provision of ongoing healthcare facilities at Kasguma General Hospital
. Eye camp to treat patients with eye disease such as glucoma, cataracts and low vision.
. Dental workshop for local school children to help improve dental healthcare
. Sanitation and fresh water provision tolocal schools and building works toimprove school buildings
. Provision of medical treatment to victims of the earthquake
. Provsion of food packages to those effected by economic impact of COVID 19 lockden in Kasguma, Sehlar, Bhimber, Kalri and Samanhi.
Fundraising disclosures
Fundraising activities commenced in the year with the ramadhan appeal on social media and Radio appeal to encourage expatriates of kasguma living in uK to make donations towards th echaritable work. The funds received are predominantly donations from the members of the public with some from Oak Trust and Midland Aid International.
Public benefit
The health facilities, including hospital, camps and relief packagesare accessible by any member of public withput any vharge or subscription..
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Social investment policies
The Charity is for the social benefit of genral public and every one will be treated equally.
The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Grant making policies
the Charity does not make any grants
Structure, governance and management
Nature of governing document
The Charity is governed by its constitution which was agreed at the registeration stage and there has been no changes since.
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KASGUMA HEALTH WELFARE TRUST
Trustees' Report
Recruitment and appointment of trustees
Trustees are recruited from local community who can offer expertise, time and fund raising activities.
Arrangements for setting key management personnel remuneration
no remuneration ispaid to trustees or any volunteers. There ar no employees in United Kingdom.
Organisational structure
The organisation has no hieriarchal structure. It is controlled by the trustees who make all the decisions.
Financial instruments
Objectives and policies
The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
Cash flow risk
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
The annual report was approved by the trustees of the charity on 30 May 2022 and signed on its behalf by:
......................................... Mohammed Mustafa Trustee
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KASGUMA HEALTH WELFARE TRUST
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 30 May 2022 and signed on its behalf by:
......................................... Mohammed Mustafa Trustee
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KASGUMA HEALTH WELFARE TRUST
Independent Examiner's Report to the trustees of KASGUMA HEALTH WELFARE TRUST
I report to the trustees on my examination of the accounts of KASGUMA HEALTH WELFARE TRUST for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity trustees of KASGUMA HEALTH WELFARE TRUST you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the KASGUMA HEALTH WELFARE TRUST's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of KASGUMA HEALTH WELFARE TRUST as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Riaz Ahmad Chartered Certified Acountants ACCA
Lord House 51 Lord Street Manchester M3 1HE
30 May 2022
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KASGUMA HEALTH WELFARE TRUST
Statement of Financial Activities for the Year Ended 31 March 2022
| Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 Note Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 11 |
Unrestricted funds £ 83,010 83,010 (59,015) (59,015) 23,995 23,995 15,507 39,502 Unrestricted funds £ 77,122 77,122 (79,390) (79,390) (2,268) (2,268) 17,775 15,507 |
Total 2022 £ 83,010 |
|---|---|---|
| 83,010 | ||
| (59,015) | ||
| (59,015) | ||
| 23,995 | ||
| 23,995 15,507 |
||
| 39,502 | ||
| Total 2021 £ 77,122 |
||
| 77,122 | ||
| (79,390) | ||
| (79,390) | ||
| (2,268) | ||
| (2,268) 17,775 |
||
| 15,507 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 11.
The notes on pages 8 to 15 form an integral part of these financial statements. Page 6
KASGUMA HEALTH WELFARE TRUST
(Registration number: 1179149) Balance Sheet as at 31 March 2022
| Note Current assets Cash at bank and in hand 9 Creditors: Amounts falling due within one year 10 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 11 |
2022 £ 39,802 (300) 39,502 39,502 39,502 |
2021 £ 15,807 (300) |
|---|---|---|
| 15,507 | ||
| 15,507 | ||
| 15,507 |
The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 30 May 2022 and signed on their behalf by:
......................................... Mohammed Mustafa Trustee
The notes on pages 8 to 15 form an integral part of these financial statements. Page 7
KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
KASGUMA HEALTH WELFARE TRUST meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
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.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
2 Income from donations and legacies
| Donations and legacies; Donations from individuals Total for 2022 Total for 2021 |
Unrestricted funds General £ 83,010 83,010 77,122 |
Total funds £ 83,010 |
|---|---|---|
| 83,010 | ||
| 77,122 |
3 Expenditure on charitable activities
| Note Governance costs Total for 2021 |
Unrestricted funds General £ 59,015 79,390 |
Total funds £ 59,015 |
|---|---|---|
| 79,390 |
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
Total expenditure £
4 Analysis of governance and support costs
Governance costs
| Audit fees Other fees paid to auditors Other governance costs Total for 2022 Total for 2021 |
Unrestricted funds General £ 300 58,715 59,015 79,390 |
Total funds £ 300 58,715 |
|---|---|---|
| 59,015 | ||
| 79,390 |
5 Net incoming/outgoing resources
Net incoming/(outgoing) resources for the year include:
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2022
KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
£
6 Trustees remuneration and expenses
7 Auditors' remuneration
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
9 Cash and cash equivalents
| 9 Cash and cash equivalents |
|||
|---|---|---|---|
| Cash at bank 10 Creditors: amounts falling due within one year Accruals 11 Funds Balance at 1 April 2021 £ Unrestricted funds General 15,507 Balance at 1 April 2020 £ Unrestricted funds General 17,775 |
Incoming resources £ 83,010 Incoming resources £ 77,122 |
2022 £ 39,802 2022 £ 300 Resources expended £ (59,015) Resources expended £ (79,390) |
2021 £ 15,807 |
| 2021 £ 300 |
|||
| Balance at 31 March 2022 £ 39,502 |
|||
| Balance at 31 March 2021 £ 15,507 |
12 Analysis of net assets between funds
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KASGUMA HEALTH WELFARE TRUST
Notes to the Financial Statements for the Year Ended 31 March 2022
| Current assets Current liabilities Total net assets Current assets Current liabilities Total net assets 13 Analysis of net funds Cash at bank and in hand Net debt Cash at bank and in hand Net debt |
Unrestricted funds General £ 39,802 (300) 39,502 Unrestricted funds General £ 15,807 (300) 15,507 At 1 April 2021 £ 15,807 15,807 At 1 April 2020 £ 17,775 17,775 |
Total funds at 31 March 2022 £ 39,802 (300) |
|
|---|---|---|---|
| 39,502 | |||
| Total funds at 31 March 2021 £ 15,807 (300) |
|||
| 15,507 | |||
| At 31 March 2022 £ 15,807 15,807 At 31 March 2021 £ 17,775 17,775 |
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KASGUMA HEALTH WELFARE TRUST
Statement of Financial Activities by fund for the Year Ended 31 March 2022
| Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities Total expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total Unrestricted Funds 2022 £ 83,010 83,010 (59,015) (59,015) 23,995 23,995 15,507 39,502 |
Total Unrestricted Funds 2021 £ 77,122 |
|---|---|---|
| 77,122 | ||
| (79,390) | ||
| (79,390) | ||
| (2,268) | ||
| (2,268) 17,775 |
||
| 15,507 |
This page does not form part of the statutory financial statements. Page 16
KASGUMA HEALTH WELFARE TRUST
Detailed Statement of Financial Activities for the Year Ended 31 March 2022
| Income and Endowments from: Donations and legacies (analysed below) Total income Expenditure on: Charitable activities (analysed below) Total expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2022 £ 83,010 83,010 (59,015) (59,015) 23,995 23,995 15,507 39,502 |
Total 2021 £ 77,122 |
|---|---|---|
| 77,122 | ||
| (79,390) | ||
| (79,390) | ||
| (2,268) | ||
| (2,268) 17,775 |
||
| 15,507 |
This page does not form part of the statutory financial statements. Page 17
KASGUMA HEALTH WELFARE TRUST
Detailed Statement of Financial Activities for the Year Ended 31 March 2022
| Donations and legacies Appeals and donations Charitable activities Charitable donations Accountancy fees Bank charges |
Total 2022 £ 83,010 83,010 (58,625) (300) (90) (59,015) |
Total 2021 £ 77,122 |
|---|---|---|
| 77,122 | ||
| (79,000) (300) (90) |
||
| (79,390) |
This page does not form part of the statutory financial statements. Page 18