Charity Registration Number: 1183816
Alhikmah Project
Trustees Report and Financial Statements
For the year ended 31 March 2023
Jamiat Ahl-e-Hadith Keighley
Contents
| Page | |
|---|---|
| Trustees' report | 1-3 |
| Independent examiners report | 4 |
| Statement of financial activities | 5 |
| Balance Sheet | 6 |
| Notes to the financial statements | 7-12 |
Jamiat Ahl-e-Hadith Keighley
Trustees report For the year ended 31 March 2023
The trustees present their report along with the financial statements of the charity for the year ended 31 March 2023. The financial statements have been prepared based on the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document.
Reference and administrative details of the charity
Charity registration number 1183816
Correspondence address
Sakien Taj 5 Greenhead Drive Keighley West Yorkshire BD20 6EZ
Trustees
Ekthisham Israil Shohab Ali Sakien Taj Faiz Alam
Independent Examiner
Asif Hussain ACMA 41 Woodstock Road Moseley Birmingham West Midlands B13 9BD
Bankers
Barclays Bank Plc 77 North Street Keighley West Yorkshire BD21 3SA
HSBC Bank Plc 36 North Street Keighley West Yorkshire BD21 3SF
Page 1
Jamiat Ahl-e-Hadith Keighley
Trustees Report (continued) For the year ended 31 March 2023
Structure, Governance and Management
a. Governing Document
The charity is a Charitable Incorporated Organisation (CIO) and is governed by its constitution dated 10th June 2019.
b. Method of appointment and induction of new Trustees
New Trustees are appointed by existing members of the CIO.
c. Organisational structure and decision making
The Trustees oversee the running of the charity on a day to day basis. All operational decisions are made at meetings which are held frequently throughout the year.
d. Risk management
The trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems, controls and procedures are in place to mitigate exposure to the major risks.
Objectives and Activities
a. Summary of objectives
The objectives of the Charity as set out in its constitution are summarised as follows:
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To advance the Islamic faith in accordance with the schedule of beliefs.
-
To further or benefit the residents of Keighley and the neighbourhood.
b. Activities for achieving objectives
The following activities were undertaken in the year to achieve the objectives:
-
Running of Al Hikmah Project
-
Running of Mosque and Madrassah
The Trustees frequently review the objectives and activities of the Charity to ensure that they provide an overall benefit to the public. In carrying out this review the Trustees have considered the Charity Commission's general guidance on public benefit.
Achievements and Performance
On 22 March 2022 the charity was transferred all the assets and liabilities of Jamiat Ahl-e-Hadith Keighley (charity registration number 1005321). In the year the charity maintained the running of Al Hikmah Project, the Mosque and Madrassah to achieve its objectives. The Al Hikmah Project continued with the provision of youth facilities and a nursery in line with government advice. Rental income from properties and the car park continued to be earned in the year at an increased rate.
Refurbishment of the basement in the mosque was carried out to improve services for the community. £199,650 was paid in the year to various contractors for building the new centre for Al Hikmah Project.
The Trustees are satisfied with the overall performance of the charity.
Page 2
Jamiat Ahl-e-Hadith Keighley
Trustees Report (continued) For the year ended 31 March 2023
Financial Review
a. Reserves policy
The Charity's reserve policy is to maintain a sufficient level of liquid reserves to meet short term obligations and any unforeseen expenditure. The current level of income generated by the charity is sufficient to meet our short term obligations and the Charity generated a net surplus of £8,065 in the year. The trustees wish to build up the Charity's reserves with rental income, car park income and public donations in accordance with the policy on reserves to ensure future sustainability.
b. Principle funding
During the year the Charity raised a total of £117,740 in incoming resources before charitable expenditure. This was a decrease from the previous year and was mainly due to an decrease in funds generated from the community and fundraising activities. Of the total incoming resources £21,543 were restricted donations for Al Hikmah Project, £14,011 was rental income from the residential properties, £62,795 were general unrestricted donations, £13,913 was generated from Madrassah fees and £5,478 was generated from the car park.
The loan of £50,000 made in 2019 to Fountain of Knowledge charity was partially repaid in the year by £10,000 and final repayment of the remaining £10,000 is expected next year. £50,000 was received during the year from Middlesborough masjid to fund the renovation and is repayable by 2026. The charity made a loan of £8,978 to the current imam to assist him for the visa application for his dependants.
Plans for the future
The Charity's priority is to become self sufficient from the income streams generated to meet its charitable expenditure. Renovation of the current Al Hikmah site has commenced and will be carried out over the next 2 years to provided better larger classes. Also, Madrassah activities will take place at the Al Hikmah Project site, moving from the current mosque. Fundraising activities will need to continue to generate additional funds from the general public.
Statement of Trustees' responsibilities
Charity Law requires the Trustees' to prepare financial statements for each financial year which show a true and fair view of the state of affairs of the Charity and its financial activities for that year. In preparing those financial statements, the Trustees are required to:
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select suitable accounting policies and apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any 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 operational existence.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure the financial statements comply with the Charities Act 2011. 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.
This report was approved by the Trustees on 21 December 2023 and signed on their behalf by:
…………………………………………………………………
Sakien Taj
Page 3
Jamiat Ahl-e-Hadith Keighley
Independent examiner's report to the Trustees of AlHikmah Project
I report to the Trustees on my examination of the financial statements of the Charity for the year ended 31 March 2023, which are set out on pages 5 to 12.
Respective responsibilities of trustees and examiner
The Charity's Trustees consider that an audit is not required for this year (under section 145) of the Charities Act 2011 (the Act) and that an independent examination is required.
It is my responsibility to:
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examine the accounts (under section 145 of the Act);
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to follow the procedures laid down in the General Directions given by the Charity Commission (under section 145(5)(b) of the Act, and
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to state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, I do not express an audit opinion on the accounts.
Independent examiner's statement
in the course of my examination, no matter has come to my attention
-
which gives me reasonable cause to believe that, in any material respect, the trustees have not met the requirements to ensure that:
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proper accounting records are kept (in accordance with section 130 of the Act); and
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- accounts are prepared which agree with the accounting records and comply with the accounting requirements of the Act; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
………………………………………………………………
Asif Hussain ACMA
41 Woodstock Road Moseley Birmingham West Midlands B13 9BD
Dated 23 December 2023
Page 4
Jamiat Ahl-e-Hadith Keighley
Statement of financial activities
For the year ended 31 March 2023
| Note Incoming Resources Incoming resources from generating funds Voluntary Income Donations Incoming resources from charitable activities Madrassah Fees Rental Income Car Park Income Other income Total Incoming resources Resources expended Costs of generating funds Costs of generating voluntary income Charitable activities 6 Governance costs 2 Total Resources expended 5 Net incoming resources before transfers Gross transfers between funds Net movement in funds for the year Total funds at 1 April 2022 Total funds at 31 March 2023 |
Restricted Funds 2023 £ 21,543 - - - 21,543 840 20,452 - 21,292 251 - 251 986,782 987,033 |
Unrestricted Funds 2023 £ 62,795 13,913 14,011 5,478 96,197 15,589 69,769 3,025 88,383 7,814 - 7,814 329,850 337,664 |
Total Funds 2023 £ 84,338 13,913 14,011 5,478 - 117,740 16,429 90,221 3,025 109,675 8,065 - 8,065 1,316,632 1,324,697 |
Total Funds 2022 £ 118,760 9,589 903 1,461 11,397 |
|---|---|---|---|---|
| 142,110 | ||||
| 10,132 118,048 500 |
||||
| 128,680 | ||||
| 13,430 - |
||||
| 13,430 1,303,202 |
||||
| 1,316,632 |
The notes on pages 7 to 12 form part of these financial statements
Page 5
Jamiat Ahl-e-Hadith Keighley
Balance sheet As at 31 March 2023
| Note Fixed assets Tangible fixed assets 10 Current assets Cash at bank and in hand Prepayments Debtors Creditors:amounts falling and due within one year 11 Net current assets Charity Funds Restricted funds 12 Unrestricted funds 12 Total Funds |
£ 62,827 329,950 18,978 411,755 (66,000) |
2023 £ 978,942 978,942 345,755 1,324,697 987,033 337,664 1,324,697 |
£ 178,532 134,525 20,000 333,057 (13,000) |
2022 £ 996,575 |
|---|---|---|---|---|
| 996,575 320,057 |
||||
| 1,316,632 | ||||
| 986,782 329,850 |
||||
| 1,316,632 |
The financial statements were approved by the Trustees on 21 December 2023 and signed on their behalf by:
................................................................ Sakien Taj
Page 6
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements haven been prepared in accordance with 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.
1.2 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 restriction imposed by donors which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.
1.3 Incoming resources
All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy
Voluntary income - including donations, gifts and grants that provide core funding or are of general nature, are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Income from Charitable Activities - including income recognised as earned from related goods or services which are provided.
1.4 Resources expended
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Charitable Activities include those costs that are directly related to the objectives of the Charity.
Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements.
Support Costs for a single activity are allocated directly to that activity. Where support costs relate to several activities they have been apportioned on a basis consistent with the use of the resources.
Page 7
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
1. Accounting policies (continued)
1.5 Tangible fixed assets and depreciation
All assets costing more than £500 are capitalised.
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual vale, over their expected useful lives on the following basis:
Freehold property - 2% straight line Fixtures & fittings - 12.5% straight line
Freehold land costing £560,413 is not depreciated.
1.6 Taxation
As a registered charity, the charity is exempt from Income and Corporation tax to the extent that its income and gains are applicable to the charitable purposes only.
2. Governance costs
| Accountancy costs Independent examination fees Incorporation fees Direct Costs Basis of allocation Direct Usage Wages and Salaries Usage |
Restricted Funds 2023 £ - - - - Running of Mosque 2023 £ 15,589 17,722 33,311 |
Unrestricted Funds 2023 £ 350 150 2,525 3,025 Running of Al Hikmah Project 2023 £ 840 12,961 13,801 |
Total Funds 2023 £ 350 150 2,525 3,025 Total 2023 £ 16,429 30,683 47,112 |
Total Funds 2022 £ 350 150 - |
|---|---|---|---|---|
| 500 | ||||
| Total 2022 £ 11,804 55,389 |
||||
| 67,193 |
3. Direct Costs
Page 8
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
4. Support costs
| Basis of allocation Usage 5. Analysis of resources expended by expenditure type Costs of generating voluntary income Running of Mosque Running of Al Hikmah Project Governance costs Management and administration |
Running of Mosque 2023 £ 52,047 52,047 Staff costs 2023 £ - 17,722 12,961 30,683 - 30,683 |
Running of Al Hikmah Project 2023 £ 7,491 7,491 Other Costs 2023 £ 16,429 52,047 7,491 59,538 3,025 78,992 |
Total 2023 £ 59,538 59,538 Total 2023 £ 16,429 69,769 20,452 90,221 3,025 109,675 |
Total 2022 £ 60,987 |
|---|---|---|---|---|
| 60,987 | ||||
| Total 2022 £ 10,132 |
||||
| 68,997 47,379 |
||||
| 116,376 | ||||
| 500 | ||||
| 127,008 |
6. Analysis of resources expended by activities
| Analysis of resources expended by activities | ||||
|---|---|---|---|---|
| Running of Mosque Running of Al Hikmah Project |
Activities undertaken directly 2023 £ 17,722 12,961 30,683 |
Support costs 2023 £ 52,047 7,491 59,538 |
Total 2023 £ 69,769 20,452 90,221 |
Total 2022 £ 68,997 47,379 |
| 116,376 |
Page 9
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
7. Net incoming resources
| 7. Net incoming resources | ||
|---|---|---|
| This is stated after charging Depreciation of tangible fixed assets - owned by the Charity 8. Staff costs Wages and salaries |
2023 £ 29,438 29,438 2023 £ 30,683 30,683 |
2022 £ 15,943 |
| 15,943 | ||
| 2022 £ 55,389 |
||
| 55,389 |
No employee received remuneration amounting to more than £60,000 in the year.
9. Related party transactions
During the year, no Trustees received any remuneration. During the year, no Trustees received any benefits in kind. During the year, no trustees received any reimbursement of expenses.
Page 10
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
10.Tangible fixed assets
| Cost At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Additions Disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Freehold land and building £ 1,121,405 - - 1,121,405 151,593 11,220 - 162,813 958,592 969,812 |
Fixtures and fittings £ 133,937 11,805 - 145,742 107,174 18,218 - 125,392 20,350 26,763 |
Total £ 1,255,342 11,805 - |
|---|---|---|---|
| 1,267,147 | |||
| 258,767 29,438 - |
|||
| 288,205 | |||
| 978,942 | |||
| 996,575 |
Freehold land and building includes land at cost of £560,413 which is not depreciated
11.Creditors: Amount falling due within one year
| Other Creditors Social security and other taxation Accruals and deferred income |
2023 £ 62,500 - 3,500 66,000 |
2022 £ 12,500 - 500 |
|---|---|---|
| 13,000 |
Page 11
Jamiat Ahl-e-Hadith Keighley
Notes to the financial statements For the year ended 31 March 2023
12.Statement of funds
| Statement of funds | |||||
|---|---|---|---|---|---|
| General fund Total unrestricted funds Restricted funds Al Hikmah Project Total Funds |
Brought forward £ 329,850 329,850 986,782 1,316,632 |
Incoming resources £ 96,197 96,197 21,543 117,740 |
Resources expended £ (88,383) (88,383) (21,292) (109,675) |
Transfers in/(out) £ - - - - |
Carried forward £ 337,664 |
| 337,664 | |||||
| 987,033 | |||||
| 1,324,697 |
Page 12