Charity registration number 1185223
Company registration number CE018770 (England and Wales)
UMM KAMRAN MEMORIAL WELFARE ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr A B Siddiqui Mr S M K Ali Mr M W Ali Charity number 1185223 Company number CE018770 Registered office 27 Wealdstone Place Milton Keynes UK MK6 3JF Independent examiner Reddy Siddiqui LLP 183-189 The Vale Acton London W3 7RW
UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 10 |
UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021
The trustees present their annual report and financial statements for the year ended 31 August 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the CIO's constitution , the Companies Act 2006 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 2019)".
Objectives and activities
The CIO's objects are : To promote the benefit of people living in Pakistan by:
(a) the advancement of education and training;
(b) the relief of poverty, sickness and distress; and
- (c) the promotion of good health.
The policies adopted in furtherance of these objects and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the CIO should undertake.
Achievements and performance
This is the first year of our charity as a registered body, however, our aim remains the same since 2005 which is to help the poor and needy.
Our funds were used for the following projects:
Building houses Providing widows with sewing machines making them self-sufficient Monthly food parcels (over 70 families per month)
Medical assistance Funding marriages (buying furniture, crockery, clothing and catering) Providing disability aids – wheelchairs, walking sticks, modified and adapted bicycles Funding and supporting educational needs Providing Cooked Meals (over 24,000 during the last year) Distribution of meat (over 5,000 families)
Several water pumps, to provide clean drinking water, were installed in remote areas of Sindh. Financial assistance to supplement monthly household income .
The peak for distribution of food parcels is during the month of Ramadan, however, during last year due to Covid-19, we were able to distribute over 6,000 parcels, benefiting over 25,000 people. Due to severe rain we were also able to provide over 5,500 hot meals, in different parts of Sindh, to people who were displaced due to flooding.
Financial review
It is the policy of the CIO that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the CIO ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the CIO is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
Umm Kamran Memorial Welfare Association is constituted as a Charitable Incorporated Organisation registered with the Charity Commission on 9 September 2019 under charity number 1185223. It is governed by its constitution.
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr A B Siddiqui Mr S M K Ali Mr M W Ali
None of the Trustees have any beneficial interest in the CIO.
The Trustees' r eport was approved by the Board of Trustees.
Mr S M K Ali
Trustee Dated: 30 June 2022
Mr M W Ali Trustee Dated:30 June 2022
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
I report to the trustees on my examination of the financial statements of Umm Kamran Memorial Welfare Association (the CIO) for the year ended 31 August 2021.
Responsibilities and basis of report
As the trustees of the CIO (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the CIO are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the CIO’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no 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 the CIO as required by section 386 of the 2006 Act; or
-
2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Reddy Siddiqui LLP
183-189 The Vale Acton London W3 7RW
Dated: 30 June 2022
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and legacies | 3 | 77,713 | 62,948 |
| Expenditure on: | |||
| Charitable activities | 4 | 88,354 | 44,513 |
| Other | 8 | 43 | 13 |
| Total expenditure | 88,397 | 44,526 | |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (10,684) | 18,422 | |
| Fund balances at 1 September 2020 | 18,422 | - | |
| Fund balances at 31 August 2021 | 7,738 | 18,422 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
BALANCE SHEET
AS AT 31 AUGUST 2021
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 9 Net current assets Income funds Unrestricted funds |
2021 £ 7,978 (240) |
£ 7,738 7,738 7,738 |
2020 £ 18,542 (120) |
£ 18,422 18,422 18,422 |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 30 June 2022
Mr M W Ali Trustee
Company registration number CE018770
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
Charity information
Umm Kamran Memorial Welfare Association is a private company limited by guarantee incorporated in England and Wales. The registered office is 27 Wealdstone Place, Milton Keynes, MK6 3JF, UK.
1.1 Reporting period
[ FRS 102 3.10 An entity shall present a complete set of financial statements (including comparative information as set out in paragraph 3.14) at least annually. When the end of an entity’s reporting period changes and the annual financial statements are presented for a period longer or shorter than one year, the entity shall disclose the following: (a) that fact; (b) the reason for using a longer or shorter period; and (c) the fact that comparative amounts presented in the financial statements (including the related notes) are not entirely comparable. ]
1.2 Accounting convention
The financial statements have been prepared in accordance with the CIO's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The CIO is a Public Benefit Entity as defined by FRS 102.
The CIO has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the CIO . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.3 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the CIO has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the CIO.
1.5 Income
Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
(Continued)
Legacies are recognised on receipt or otherwise if the CIO has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Liabilities are recognised when resources are expended. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the CIO ’s contractual obligations expire or are discharged or cancelled.
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
1 Accounting policies
(Continued)
1.8 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the CIO is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the CIO’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 77,713 | 62,948 |
4 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| Heading 1 | Heading 1 |
|
| 2021 | 2020 |
|
| £ | £ |
|
| Charitable expenditure in Pakistan | 88,214 | 42,983 |
| Charitable expenditure in UK | 20 | 1,410 |
| 88,234 | 44,393 |
|
| Share of governance costs (see note 5) | 120 | 120 |
| 88,354 | 44,513 |
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
5 Support costs
| Support costs Governance costs £ £ Accountancy - 120 - 120 Analysed between Charitable activities - 120 |
2021 Support costs Governance costs £ £ £ 120 - 120 120 - 120 120 - 120 |
2020 £ 120 120 120 |
|---|---|---|
Governance costs includes payments to the independent examination of £ 100 +vat
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the CIO during the year.
7 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2021 | 2020 | ||
| Number | Number | ||
| Total | - | - | |
| There were no employees whose annual remuneration was more than £60,000. | |||
| 8 | Other | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2021 | 2020 | ||
| Financing costs | 43 | 13 | |
| 43 | 13 | ||
| 9 | Creditors: amounts falling due within one year | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Accruals and deferred income | 240 | 120 |
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UMM KAMRAN MEMORIAL WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
10 Related party transactions
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year .
Mr A. B. Siddiqui is one of the trustees of the charity and a partner of Reddy Siddiqui LLP, a firm which was engaged as an independent examiner for the accounts. However, the partner who undertook the task did not have any connection with the charity. Reddy Siddiqui LLP was paid a nominal fee of £100+vat for their services.
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