## **RAZA EDUCATION CENTRE**
## **Report of the trustees for the year ending 31[st] August 2021**
(Registered Charity Number 1184608)
The Trustees present their annual report together with the financial statements of Raza Education Centre year ending 31[st] August 2021. The financial statements comply with Charities Act 2011 and 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 2015).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **a. CONSTITUTION**
The charity was setup by a constitution on 24/05/2019 and is a registered charity (Number 1184608).
The charity is referred to as a Madrasah, which is a type of school for Islamic studies.
## **b. APPOINTMENT OF TRUSTEES**
The first trustees were the founding members of the charity. In future they will be elected by way of a special meeting and by way of a vote as per the constitution.
In selecting persons to be appointed as trustees, the Trustees shall take into account the benefits of appointing a person who is able by virtue of his or her personal or professional qualifications to make a contribution to the objects or the managements of the Charity.
## **c. ORGANISATIONAL STRUCTURE AND DECISION MAKING**
The Board of Trustees provide continuous direction and support to the Charity and its staff.
## **d. RISK MANAGEMENT**
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operation and finance, and are satisfied that systems and procedures are in place to mitigate our exposures to major risk.
## **e. USE OF VOLUNTEERS**
We use a limited number of volunteers throughout the year to help in both faith and community activities.
## **AIMS AND OBJECTIVES**
## **a. POLICIES AND OBJECTIVES**
The objects of the CIO are to advance and promote the Islamic religion, faith, culture and principles for the benefit of the public through:
- The following of Sunni Hanafi beliefs and principles
- The advancement of the education of Muslim children and adults through amongst other things the promotion of Islamic teachings and practices and initiation, development, publishing and distribution of such literature;
- The organisation of Islamic functions, seminars and talks;
- The promotion of unity and friendship among the Muslims and non-Muslim communities.
- Raising funds for the benefit of the charity.
- Raising and donating funds for charitable causes, including but not limited to helping other charities, such as mosques or places of religious worship (of Muslim faith).
- Distributing surplus funds to assist other charities.
## **b. HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT**
The charity carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities, summarised below, provide benefits to those who worship at the mosque and the wider community of Accrington.
- Community events: these are for the benefit of the wider community, such as talks, conferences and meetings.
- Madrasah – we have set up a Madrasah to teach the youth of the community on how to read the Quran and learn Islamic history as well as the rules of Islam. Fees were charged to cover the teachers salaries. The Charity is working alongside other Charities to advance Islamic education for the Muslim youth.
## **ACHIEVEMENTS AND PERFORMANCE**
## **a. REVIEW OF ACTIVITIES / LOCK DOWN / CORONAVIRUS**
Raza Education Centre have throughout the year helped the advancement in Islamic knowledge for youths and adults in the local area and helped anybody wishing to learn about Islam.
We have also provided resources to the community through books and general one to one advice and held open days as well many events on a monthly basis whereby talks were given by guest speakers.
During the year the trustees and mosque committee have had a number of meetings to ensure that adequate financial controls are being followed by all members involved on a daily basis, with adequate procedures and rules.
## **FINANCIAL REVIEW**
## **a. RESERVES POLICY**
The free reserves are held to secure the long-term financial security of the charity.
The trustees consider that this level of reserves is required to enable the charity to fulfil its obligations and commitments.
The reserves increased during lockdown as students continued to donate to the charity and as the charity was mostly closed, the wages were not paid to the staff and we recruited less staff.
If the Madrasah was open on a usual basis without lockdown, the reserves would be less as the fees income generated is mostly spent on wages.
## **b. PRINCIPAL INCOME**
The principal income is fees.
## **PLANS FOR THE FUTURE**
## **a. FUTURE DEVELOPMENTS**
We hope to increase the number of classes set at the Madrasah which will allow more students to enrol to learn about Quran and Islam as a religion. By Having more students, our fees should increase and allow us to hold more events to promote Islam to the community.
The current fees are set at £25 per student per month and £30 per student per month for advanced Quran lessons.
Signed on Behalf of the trustees on 03/09/2021:
Khizar mehrban ………………………… Mr KHIZAR MEHRBAN (Trustee)
Charity registration number: 1184608
## Raza Education Centre
known as
Raza Academy
Annual Report and Financial Statements
for the Year Ended 31 August 2021
## **Raza Education Centre**
## **known as Raza Academy**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Statement of Trustees' Responsibilities|2|
|Independent Examiner's Report|3|
|Statement of Financial Activities|4|
|Balance Sheet|5|
|Notes to the Financial Statements|6 to 10|
## **Raza Education Centre**
## **known as Raza Academy**
## **Reference and Administrative Details**
## **Chairman**
Mr Khizar Mehrban
**Trustees**
Mr Raheel Rangzeb Mr Saleem Hussain Mr Harris Ali Mr Zahoor Ahmed **Charity Registration Number**
1184608
**Principal Office**
39 Lower Antley Street Accrington Lancashire BB5 0BA
**Auditor**
Kingham Accountants Limited Kingham House 161 College Street St Helens Merseyside WA10 1TY
**Accountants**
A.Y.A Accountants Limited 82 Blackburn Road Accrington Lancashire BB5 1LL
**Bankers**
Barclays Manchester City 2
Page 1
## **Raza Education Centre**
## **known as Raza Academy**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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 15 October 2021 and signed on its behalf by:
The financial statements on pages 4 to 10 were approved by the trustees, and authorised for issue on 15 October 2021 and signed on their behalf by:
……......................................
Mr Khizar Mehrban Chairman
Page 2
## **Raza Education Centre**
## **known as Raza Academy**
## **Independent Examiner's Report to the trustees of Raza Education Centre**
I report to the trustees on my examination of the accounts of Raza Education Centre for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity trustees of Raza Education Centre 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 Raza Education Centre'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:
1. accounting records were not kept in respect of Raza Education Centre as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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.
...................................... Paul Kingham Instiute of Chartered Accountants England & Wales (ICAEW)
Kingham House 161 College Street St Helens Merseyside WA10 1TY
15 October 2021
Page 3
## **Raza Education Centre**
## **known as Raza Academy**
## **Statement of Financial Activities for the Year Ended 31 August 2021**
||**Unrestricted**
**Total**|
|---|---|
||**funds**
**2021**|
|**Note**|**£**
**£**|
|**Income and Endowments from:**||
|Charitable activities|55,488
55,488|
|Total income||
||55,488
55,488|
|**Expenditure on:**||
|Charitable activities|(15,638)
(15,638)|
|Total expenditure||
||(15,638)
(15,638)|
|Net income||
||39,850
39,850|
|Net movement in funds||
||39,850
39,850|
|**Reconciliation of funds**||
|Total funds carried forward
12||
||39,850
39,850|
All of the charity's activities derive from continuing operations during the above period.
The notes on pages 6 to 10 form an integral part of these financial statements. Page 4
## **Raza Education Centre**
## **known as Raza Academy**
## **(Registration number: 1184608) Balance Sheet as at 31 August 2021**
||**2021**|
|---|---|
|**Note**|**£**|
|**Fixed assets**||
|||
|Tangible assets
9|160|
|**Current assets**||
|||
|Cash at bank and in hand
10|40,750|
|**Creditors: Amounts falling due within oneyear**
11||
||(1,060)|
|**Net current**assets||
||39,690|
|**Net**assets||
||39,850|
|**Funds of the charity:**||
|**Unrestricted income funds**||
|||
|Unrestricted funds|39,850|
|**Total funds**
12||
||39,850|
The financial statements on pages 4 to 10 were approved by the trustees, and authorised for issue on 15 October 2021 and signed on their behalf by:
......... ................................ Mr Khizar Mehrban Chairman
The notes on pages 6 to 10 form an integral part of these financial statements. Page 5
## **Raza Education Centre**
## **known as Raza Academy**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **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**
Raza Education Centre 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.
## **Transition to FRS 102**
In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was required. No restatements are required as a result of the transition to FRS 102.
## **Income and endowments**
## **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.
Page 6
## **Raza Education Centre**
## **known as Raza Academy**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **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.
## **Tangible fixed assets**
Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **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.
## **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.
## **2 Income from charitable activities**
|**2**
**Income from charitable activities**||
|---|---|
||**Unrestricted**|
||**funds**
**Total**|
||**General**
**funds**|
||**£**
**£**|
||55,488
55,488|
|**Total for 2021**||
||55,488
55,488|
|**3**
**Expenditure on charitable activities**||
||**Unrestricted**|
||**funds**
**Total**|
||**General**
**funds**|
|**Note**|**£**
**£**|
|Governance costs|15,638
15,638|
Page 7
## **Raza Education Centre**
## **known as Raza Academy**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **4 Analysis of governance and support costs**
Staff costs Wages and salaries Audit fees Audit of the financial statements
Other fees paid to auditors
Depreciation, amortisation and other similar costs Other governance costs
## **Total for 2021**
## **5 Net incoming/outgoing resources**
Net incoming/outgoing resources for the year include:
|Net incoming/outgoing resources for the year include:|||
|---|---|---|
||**2021**||
||**£**||
|Audit fees||360|
|Depreciation of fixed assets||40|
## **6 Trustees remuneration and expenses**
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **7 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:||
|---|---|
||**2021**|
||**£**|
|**Staff costs during the year were:**||
|||
|Wages and salaries|12,424|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
Page 8
## **Raza Education Centre**
## **known as Raza Academy**
**Notes to the Financial Statements for the Year Ended 31 August 2021**
||**2021**|
|---|---|
||**No**|
|Employees|7|
No employee received emoluments of more than £60,000 during the year
Page 9
## **Raza Education Centre**
## **known as Raza Academy**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **8 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **9 Tangible fixed assets**
||**Furniture and**
**equipment**
**Total**|
|---|---|
||
**£**
**£**|
|**Cost**||
|Additions|200
200|
|At 31 August 2021|200
200|
|**Depreciation**||
|Charge for theyear|40
40|
|At 31 August 2021|40
40|
|**Net book value**||
|At 31 August 2021|160
160|
|**10**
**Cash and cash equivalents**||
||**2021**|
||**£**|
|Cash at bank|40,750|
|**11**
**Creditors: amounts falling due within one year**||
||**2021**|
||**£**|
|Accruals|1,060|
|**12**
**Funds**||
||**Incoming**
**Resources**
**Balance at 31**|
||**resources**
**expended**
**August 2021**|
||**£**
**£**
**£**|
|**Unrestricted funds**||
|General||
||55,488
(15,638)
39,850|
Page 10
## **Raza Education Centre**
## **known as Raza Academy**
## **Statement of Financial Activities by fund for the Year Ended 31 August 2021**
||**Total**|
|---|---|
||**Unrestricted**|
||**Funds**|
||**2021**|
||**£**|
|**Income and Endowments from:**||
|Charitable activities|55,488|
|Total income||
||55,488|
|**Expenditure on:**||
|Charitable activities|(15,638)|
|Total expenditure||
||(15,638)|
|Net income||
||39,850|
|**Reconciliation of funds**||
|Total funds carried forward||
||39,850|
This page does not form part of the statutory financial statements. Page 11
## **Raza Education Centre**
## **known as Raza Academy**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2021**
||**Total**|
|---|---|
||**2021**|
||**£**|
|**Income and Endowments from:**||
|Charitable activities(analysed below)|55,488|
|Total income||
||55,488|
|**Expenditure on:**||
|Charitable activities(analysed below)|(15,638)|
|Total expenditure||
||(15,638)|
|Net income||
||39,850|
|**Reconciliation of funds**||
|Total funds carried forward||
||39,850|
This page does not form part of the statutory financial statements. Page 12
## **Raza Education Centre**
## **known as Raza Academy**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2021**
||**Total**|
|---|---|
||**2021**|
||**£**|
|**_Charitable activities_**||
|||
|General Donations|55,488|
||55,488|
|**_Charitable activities_**||
|||
|Wages and salaries|(12,424)|
|Insurance|(571)|
|Printing, postage and stationery|(1,136)|
|Islamic Books and Essentials|(407)|
|Accountancy fees|(700)|
|The audit of the charity's annual accounts|(360)|
|Depreciation of office equipment|(40)|
||(15,638)|
This page does not form part of the statutory financial statements.
Page 13
Raza Education Centr¢
known as RazA Academy
Independent Examiner's R¢port to the trustees of Raza Education Centre
I report to ihe trustees on my examijiation of the accounts of Raza Education Centre for the ycar ended 31
Aiigust 2021.
Re5pon$iblllti¢s and basks of report
As the chariry. IrLlStees of Raza Ediicaiion Cen¢re yL are rtsponsible [1 the prepaTation of the acColts in
a¢cordaiice with the requirtmeTrts of the Chaiities Ad 201 i {'Ihe Act'l.
I rEPOIt ID respect of my exaniination of ihe Ra2a Edlleatton Ceirtr¢'s accounis Carried our under section 145 or
the 2011 Act ar in carrying oiii niy exaniination I have folloived all tlK 4)plicable Dircctions gIert by Ihe
Cliarity Commisshoii ullder 5cclioii 145(5Kbl of the Act.
Ind¢pendellt eiarniner'5 Stalemeni
I have coinpleted my exainination. I confim) thai no rnater1 matters have coine io my attention in connection
vith the ¢xamination giving me cau5¢ to believe th in any niat¢rial resr*d-
accounting record$ were not kepl iii respect of Raza Educaiion Centre a5 required by section 130 of the
Act: or
2. the accounts do not 3ccord with those records. OT
3. th¢ account5 do not comply with the accounling requirem¢nt5 con¢¢Thing the form and conlent of ac¢ounts
set ot iii th¢ Charities IA¢¢ounts and ReEx)rtsl RegulaTiOll5 2008 other Ihan any requiTeiiient ihai the
counts give a 'true and fair which 15 not a n)ley ¢0osidered ss part of an independent
examinatioii.
I h#v¢ no ¢on¢erns and have a¢ro&s no othtr matters in coTrne¢tion with the exaniination to ivhich altention
shoiild be drawn in this report in order io ertable 2 proper uiider51anding ofth¢ acryjiints to be reached.
Paul Kingliam
1115tiuie Df Cha
td Ar¢oun¢anis Eng[ld & Walcs {ICAEW)
Kingliaiii House
161 College Street
St Helerbs
M¢rs¢ysid¢
WAIO ITY
15 O¢tober 2021
Page 3