Charity registration number: 1184908
## At-Tawheed Foundation
Annual Report and Financial Statements for the Year Ended 31 March 2021
## **At-Tawheed Foundation**
## **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|
|Cash Flow Statement|8|
|Notes to the Financial Statements|9 to 14|
## **At-Tawheed Foundation**
## **Reference and Administrative Details**
## **Trustees**
Mohammed Nazakit Dr Mohammed Fazlulla Haris Farhan Abbas Malik (appointed on 28/02/2021) Qari Zaka Ullah Saleem (resigned on 11/02/2021) Mr Naumaan Shabir (resigned on 11/02/2021) Anwar Ali (appointed on 19/02/2021 and resigned on 24/03/2021)
## **Principal Office**
Markaz At-Tawheed Rectory Road Shelton Stoke-on-Trent ST1 4PW
**Charity Registration Number** 1184908 **Bankers NatWest**
1 Upper Market Square Hanley Stoke-on-Trent ST1 1NS
## **Independent Examiner**
Adeel Khan Jadoon FCCA SAF Accountants 2 Bow Meadow Grange Manchester M12 4HG
Page 1
## **At-Tawheed Foundation**
## **Trustees' Report**
The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021.
## **Objectives and activities**
## _**Objects and aims**_
The CIO constitution defines the charity's objects are to advance the Islamic religion in accordance with the Ahl-ul-Hadith creed and methodology for the benefit of public in particular but without limitation, through the holding of prayer meetings, lectures, producing and/or distributing literature on Islamic faith to enlighten others about Islamic religion.
The objectives for the year were to continue to raise funds to maintain and improve existing facilities. Funds are raised by voluntary collections in the mosques. There are no specific fundraising targets set, the charity relies on the willingness of individuals to contribute what they can afford to donate.
## _**Public benefit**_
The trustees have considered this, in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit, and have concluded that:
- the aims of the charity continue to be charitable;
- the work done by the charity gives identifiable benefits to the charitable sector and both directly and indirectly to individuals in need;
- the benefits are for the public; not unreasonably restricted in anyway;
- there is no detriment or harm arising from the aims or activities.
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.
## **Achievements and performance**
During this year the charity continued to improve its activities, finance as well as facilities as listed below:
- a) Provide services of mosques to promote Islamic faith to all age groups.
- b) Provide supplementary school (Madrasah) classes to teach the children the Quran and Islamic Studies.
- c) Arrange regular talks and lectures.
- d) Facilitate youth empowerment workshops.
- e) Arrange special talks for sisters.
- f) Each centre is financially independent; there is no transfer of funds between the centres.
The charity runs the following three mosques within Stoke on Trent:
1. Markaz At-Tawheed, Rectory Road, Shelton
2. Markaz As-Sunnah, Ladywell Road, Tunstall
3. Markaz Al-Huda, Furnace Road, Normacot
## **Financial review**
During the year, the charity raised £741k (2020: £0) and after spending £41k (2020: £0), the charity carry forward reserves were £700k (2020: £0).
During the period, At-Tawheed Foundation Trust (Charity reg: 1130558) incorporated into a CIO At-Tawheed Foundation (Charity reg: 1184908). As part of this process, both entities signed a transfer agreement that required At-Tawheed Foundation Trust (Charity reg: 1130558) to transfer all its assets and liabilities to the CIO (Charity reg: 1184908). During the period, At-Tawheed Foundation Trust (Charity reg: 1130558) transferred its properties and loans into the CIO (Charity reg: 1184908). The transfer was treated as a grant given of £686k from At-Tawheed Foundation Trust (Charity reg: 1130558). This grant includes: £190k of cash balances and £496k of fixed assets.
## _**Policy on reserves**_
The charity has sufficient reserves to meet future core costs
Page 2
## **At-Tawheed Foundation**
## **Trustees' Report**
## **Plans for future periods**
The charity envisages to conduct the following tasks as part of its plans for the future.
**Promotion of faith:** Propagation of Muslim faith to the younger generation by introducing a range of activities that attract and inspire them more than the traditional services offered.
## **Renovation:**
1. **Markaz at-Tawheed:** To complete the construction of a new mortuary to cater for the needs of the Centre.
2. **Markaz As-Sunnah:** To complete the renovation of the main hall of the centre and construct a double story structure to cater for the needs of the congregation.
3. **Markaz Al-Huda:** To expand the existing prayer hall due to the increase in the number of the congregation.
## **Structure, governance and management**
## _**Nature of governing document**_
The charity is a charitable incorporated Organisation (CIO), governed by CIO constitution and registered with the Charity Commission on 15 August 2019.
## _**Organisational structure**_
Trustees are responsible for setting strategies and policies for ensuring these are implemented.
## _**Major risks and management of those risks**_
The charity's trustees have considered the major risks to which the charity is exposed and have reviewed potential risks. Systems and procedures have been put in place to manage the risks and to mitigate any adverse outcomes.
The annual report was approved by the trustees of the charity on 22/04/2021 and signed on its behalf by:
......................................... Mohammed Nazakit Chair
Page 3
## **At-Tawheed Foundation**
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments 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.
Page 4
## **At-Tawheed Foundation**
## **Independent Examiner's Report to the trustees of At-Tawheed Foundation**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 14.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of At-Tawheed Foundation 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 At-Tawheed Foundation’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 At-Tawheed Foundation 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.
...................................... Adeel Khan Jadoon FCCA SAF Accountants 2 Bow Meadow Grange Manchester M12 4HG
Date: ............................. 22/04/2021
Page 5
## **At-Tawheed Foundation**
## **Statement of Financial Activities for the Year Ended 31 March 2021**
|**Note**
**Income and Endowments from:**
Donations and legacies
2
Other income
3
Total income
**Expenditure on:**
Charitable activities
4, 6
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
15
**Note**
**Income and Endowments from:**
Donations and legacies
Other income
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
15|**Unrestricted**
**Funds**
**£**
726,003
14,981
740,984
(41,471)
(41,471)
699,513
699,513
-
699,513
**Unrestricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-|**Total**
**2021**
**£**
726,003
14,981|
|---|---|---|
|||740,984|
|||(41,471)|
|||(41,471)|
|||699,513|
|||699,513
-|
|||699,513|
|||**Total**
**2020**
**£**
-
-|
|||-|
|||-|
|||-|
|||-|
|||-
-|
|||-|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 15.
Page 6
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **(Registration number: 1184908) Balance Sheet as at 31 March 2021**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Debtors
12
Cash at bank and in hand
13
**Creditors: Amounts falling due within one year**
14
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
15|**2021**
**£**
561,556
525
138,671
139,196
(1,239)
137,957
699,513
699,513
699,513|**2020**
**£**
-
-
-|
|---|---|---|
|||-
-|
|||-|
|||-|
|||-|
|||-|
The financial statements on pages 6 to 13 were approved by the trustees, and authorised for issue on 22/04/2021 and signed on their behalf by:
......................................... Mohammed Nazakit Chair
Page 7
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Cash Flow Statement for the Year Ended 31 March 2021**
|**Cash flows from operating activities:**
Net income for the reporting period
(as per the statement of financial activities)
Adjustments for:
Non-cash grants
Depreciation charges
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash generated from operations**
**Cash flows from investing activities:**
Purchase of tangible fixed assets
**Net Cash Flows**
**Cash and Cash Equivalents**
Cash and cash equivalents at beginning of period
Net change in cash for period
Cash and cash equivalents at end of period|**2021**
**£**
699,513
(496,539)
6,766
(525)
1,239
210,454
(71,783)
138,671
-
138,671
138,671|**2020**
**£**
-
-
-
-
-|
|---|---|---|
|||-|
|||-|
|||-|
|||-
-|
|||-|
Page 8
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
At-Tawheed Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **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.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Grant provisions**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.
## **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.
Page 9
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **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:
Freehold Land - No depreciation
Buildings - 50 years (straight line)
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **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.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Page 10
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **2 Income from donations and legacies**
|**2 Income from donations and legacies**
Donations and legacies;
Donations
Grants
Gift aid reclaimed|**Unrestricted**
**funds**
**General**
**£**
39,541
686,462
-
726,003|**Total**
**Total**
**2021**
**2020**
**£**
**£**
39,541
-
686,462
-
-
-
726,003
-|
|---|---|---|
Grants include receipt of fixed assets of 496,539 and cash of 189,923 from At-Tawheed Foundation Trust (Charity reg: 1130558).
## **3 Other income**
|**3 Other income**||||
|---|---|---|---|
|Fees and supplies
Job Retention Scheme grant|**Unrestricted**
**funds**
**General**
**£**
2,430
12,551
14,981|**Total**
**2021**
**£**
24,30
12,551
14,981|**Total**
**2020**
**£**
-
-|
||||-|
## **4 Expenditure on charitable activities**
|Staff costs
Facilities
Utilities
Insurance
Travel
Office expenses
Governance
Grants
Consultancy|**Activity**
**undertaken**
**directly**
**£**
24,067
7,429
5,022
435
62
1,056
-
-
3,400
41,471|**Total**
**2021**
**Total**
**2020**
**£**
**£**
24,067
-
7,429
-
5,022
-
435
-
62
-
1,056
-
-
-
-
-
3,400
-
41,471
-|
|---|---|---|
## **5 Analysis of governance and support costs**
## **Governance costs**
|Independent examiner fees
Examination of the financial statements
Other governance costs|**Unrestricted**
**funds**
**General**
**£**
-
-
-|**Total**
**2021**
**£**
-
-
-|**Total**
**2020**
**£**
-
-|
|---|---|---|---|
||||-|
Page 11
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **6 Net incoming/outgoing resources**
Net outgoing resources for the year include:
|Depreciation of fixed assets|**2021**
**2020**
**£**
6,766
**£**
-|
|---|---|
## **7 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
## **8 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**
Wages and salaries
Social security costs|**2021**
**£**
24,067
-
24,067|**2020**
**£**
-
-|
|||-|
Average number of employees during the year: 11
No employee received emoluments of more than £60,000 during the year
## **9 Independent examiner's remuneration**
|**9 Independent examiner's remuneration**|||||
|---|---|---|---|---|
||**2021**||**2020**||
||**£**||**£**||
|Examination of the financial statements||-||-|
Page 12
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **10 Taxation**
The charity is a registered charity and is therefore exempt from taxation
## **11 Tangible fixed assets**
|**11 Tangible fixed assets**||||||
|---|---|---|---|---|---|
|**Cost**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
At 31 March 2021
**Net book value**
At 31 March 2021
At 31 March 2020
**12 Debtors**
Trade debtors
**13 Cash and cash equivalents**
Cash on hand
Cash at bank
**14 Creditors: amounts falling due within one year**
Trade creditors
Other taxation and social security
Accruals|**Land and**
**buildings**
**£**
-
568,322
568,322
-
6,766
6,766
561,556
-||**Furniture and**
**equipment**
**£**
-
-
-
-
-
-
-
-
**2021**
**£**
525
**2021**
**£**
-
138,671
138,671
**2021**
**£**
150
999
90
1,239||**Total**
**£**
-
568,322
568,322
-
6,766
6,766
561,556
-
**2020**
**£**
-
**2020**
**£**
-
-|
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
||||**2021**
**£**
525
**2021**
**£**
-
138,671
138,671
**2021**
**£**
150
999
90
1,239|||
||||||-|
||||||**2020**
**£**
-
-
-|
||||||-|
Page 13
## **At-Tawheed Foundation**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
|**15 Funds**
**Unrestricted funds**
General
**Unrestricted funds**
General
**16 Analysis of net assets between funds**
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets
**17 Analysis of net funds**
Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt|**Balance at 1**
**April 2020**
**£**
-
**Balance at 1**
**April 2019**
**£**
-|**Incoming**
**resources**
**£**
740,984
**Incoming**
**resources**
**£**
-
**At 1 April 2020**
**£**
-
-
**At 1 April 2019**
**£**
-
-|**Resources**
**expended**
**£**
(41,471)
**Resources**
**Expended**
**£**
-
**Unrestricted**
**funds**
**General**
**£**
561,556
139,196
(1,239)
699,513
**Unrestricted**
**Funds**
**General**
**£**
-
-
-
-
**Cash flows**
**£**
138,671
138,671
**Cash flows**
**£**
-
-|**Balance at 31**
**March 2021**
**£**
699,513|
|---|---|---|---|---|
|||||**Balance at 31**
**March 2020**
**£**
-|
|||||**Total funds**
**2021**
**£**
561,556
139,196
(1,239)|
|||||699,513|
|||||**Total funds**
**2020**
**£**
-
-
-|
|||||-|
|||||**At 31 March 2021**
**£**
138,671|
|||||138,671|
|||||**At 31 March 2020**
**£**
-|
|||||-|
Page 14