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2022-07-31-accounts

education | literacy | skills | training | development | support | sponsorship | empowerment

Charity Registration No. 1191868

MUSLIM FUTURES

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Charity Registration No. 1191868

MUSLIM FUTURES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Salma Haq (Appointed 1st December 2021) Saud Khan (Appointed 1st January 2022) Naveed Siddique Freeda Yousaf Ummar Yousaf Charity number 1191868 Registered office 570 Cranbrook Road Ilford Essex IG2 6RE Independent examiner AGP Consulting Q West Great West Road Brentford TW8 0GP Bankers TSB Bank Plc 797-799 High Road Leytonstone London E11 4QS

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Charity Registration No. 1191868

MUSLIM FUTURES

CONTENTS

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Page
Legal and Administrative Information 2
Trustees Report 4 - 6
Accountants' Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10-14
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Charity Registration No. 1191868

MUSLIM FUTURES

TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

The Trustees present their Annual Report and Financial Statements for the year ended 31[st] July 2022.

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 charity's Constitution, the 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[st] January 2019).

Objectives and Activities

The Muslim Futures vision continues to be centred on the concept of the alleviation of poverty and hardship through education and learning for all, where opportunities are created for personal development, selfempowerment, and societal improvement.

To fulfil this vision, Muslim Futures has established its Aims and Objectives as ‘Objects’ as defined in the amended Constitution. The Objects of the charity are,

“The prevention or relief of poverty or financial hardship, the relief of sickness, and the advancement of education anywhere in the world as the Trustees deem fit by providing grants, items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty, relieve sickness, or advance education.”

There has been no change in these during the year.

In delivering these Objects, Muslim Futures continues to work with communities across the UK and internationally, in providing education, literacy, skills and training opportunities through support, development, sponsorship and empowerment, with a specific emphasis on child development, juvenile and youth support and supporting the sick, disabled, homeless, widowed, and orphaned.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding which activities the charity should undertake.

During 2021-2022, by far our busiest and most productive year, Muslim Futures carried out many activities in conjunction with one or more partner organisations. Some are listed below:

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Charity Registration No. 1191868

Achievements and Performance

For a small charity with a limited income and a small core donor membership, achievements can often be difficult to quantify. With so many worthy causes, each donation is very highly regarded, and every penny spent is carefully considered. Despite this the Trustees are pleased to share some successes here;

The Trustees confirm that they have referred to the guidance on public benefit contained in documents produced by the Charity Commission, when reviewing the aims and objectives of the charity and planning future activities.

Financial Review

Our overall objectives in relation to fundraising was to maximise the amount of voluntary income raised and to ensure that we did so at a reasonable cost to income ratio.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between 3- and 6- months’ 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 charity’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.

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Charity Registration No. 1191868

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to such major risks.

Future Development

The Trustees are satisfied with the continued progress and development of the Charity in relation to its stated objects. The Charity was established in August 2010 to prevent or relieve poverty or financial hardship, relieve sickness, and advance education, and the Trustees are satisfied that the focus of the work meets these criteria.

Muslim Futures intends to continue its focus on organisational efficiency aimed at increasing investment in key long-term development projects and focus on fewer countries to further enable effective and efficient utilisation of resources. This means that our activities in the future will remain focused on areas of key impact and change to people’s lives, within specific locations, in pursuit of our aims and objectives, with a greater emphasis on education, literacy, learning, skills development, training and job creation. We believe our activities over the last 12 months is achieving these objectives, and our work in strengthening our existing links with our project partners in Tanzania, Pakistan, Bangladesh, and Palestine and developing new relationships with new partners in Afghanistan and Yemen reflects this approach.

The Trustees intend to continue their work to further enhance existing and new project activities based on the relationships and working models built with their project implementation partners. These relationships with our partners are vital to the long-term development and success of Muslim Futures and we recognise the value they bring to our team in helping us to deliver the donor’s intentions. The Trustees strive to work harder in this respect and develop a closer bond with each of the partners.

Structure, Governance and Management

The charity is currently an Unincorporated Association and is governed by its document of governance, entitled “Constitution”, drafted, and amended in accordance with guidance from the Charity Commission of the UK, dated as adopted on the 16th of October 2020, replacing the previous document of governance dated 27th August 2010.

The Trustees who served during the year and up to the date of signature of the Financial Statements were:

Salma Haq Saud Khan Naveed Siddique Freeda Yousaf Ummar Yousaf

New Trustees are appointed by majority decision. Normally Trustees are people who already have an existing involvement with, and knowledge of, the charity. Induction meetings for new Trustees are held prior to their first Board meeting. The Trustees meet three times each year. Other ad-hoc meetings and telephone conferences involving either the whole Board or selected members of The Trustees are also held as required. Office bearers are responsible for the day-to-day running of the charity and manage the staff and volunteers of the charity on behalf of the Trustees. The charity has the following office-bearers:

Chair of Trustees - Ummar Yousaf Secretary - Freeda Yousaf Treasurer - Naveed Siddique

The Trustee’s Report was approved by the Board of Trustees.

............................................................................... ............................................................................... 30th May 2023 Ummar Yousaf Date Trustee

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Charity Registration No. 1191868

MUSLIM FUTURES

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MUSLIM FUTURES

I report to the Trustees on my examination of the financial statements of Muslim Futures, (the charity) for the year ended 31 July 2022.

Responsibilities and basis of report

As the Trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of 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

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1[st] January 2015.

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 charity as required by section 130 of the 2011 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable 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 financial statements to be reached.

30 May 2023 ............................................................................... ............................................................................... Forhad Ahmed, FCA Date

AGP Consulting

Q West Great West Road Brentford TW8 0GP

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Charity Registration No. 1191868

MUSLIM FUTURES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022

Notes
Income from:
Donations and Legacies
3
Interest Receivable
4
Total income
Expenditure on:
Charitable activities
5
Net income for the year / Net movement in funds
Fund balances at 1 August 2021
Fund balances at 31 July 2022		 Unrestricted
Funds
2022
£
151,929
3
151,932
130,191
21,741
25,524
47,265		 Unrestricted
Funds
2021
£
42,645
23
42,668
40,835
1,833
23,691
25,524

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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Charity Registration No. 1191868

MUSLIM FUTURES

BALANCE SHEET

AS AT 31 JULY 2022

Notes
Fixed Assets
Tangible Assets
10
Current Assets
Debtors
11
Cash at bank and in hand
Net Current Assets
Total Assets less current liabilities
Income Funds
Unrestricted funds		 2022
£
-
46,172
46,172		 2022
£
1,093
46,172
47,265
47,265
47,265		 2021
£
20
24,276
24,296		 2021
£
1,228
24,296
25,524
25,524
25,524

The Financial Statements were approved by the Trustees on 30[th] May 2023

............................................................................... Ummar Yousaf Trustee

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Charity Registration No. 1191868

MUSLIM FUTURES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

1. Accounting Policies

1.1. Charity information

Muslim Futures, is an Unincorporated Association and is governed by its document of governance, entitled “Constitution”, drafted, and amended in accordance with guidance from the Charity Commission of the UK, dated as adopted on the 16[th] of October 2020, replacing the previous document of governance dated 27[th] August 2010.

1.2. Accounting convention

The Financial Statements have been prepared in accordance with the charity's Constitution, the Charities Act 2011, 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[st] January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cashflows.

The Financial Statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice, which is referred to in the Regulations, but which has since been withdrawn.

The Financial Statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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 charity 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 the stated charitable objectives.

Restricted funds are subject to specific conditions defined by donors at the point of donation 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 charity.

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Charity Registration No. 1191868

1.5. Income

Income is recognised when the charity 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 charity 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.

Legacies are recognised on receipt or otherwise if the charity 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;

1.7. Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

25% reducing balance basis.

The gain or loss arising from the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the statement of financial activities.

1.8. Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any).

1.9. 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.

1.10. Financial Instruments

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

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Charity Registration No. 1191868

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 payments 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 obligated 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.

De-recognition of financial liabilities

Financial liabilities are de-recognised when the charity’s contractual obligations expire or are discharged or cancelled.

2

Critical accounting estimates and judgements

In the application of the charity’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

Donations and Gifts Unrestricted
Funds
2022
£
151,929		 Unrestricted
Funds
2021
£
42,645

4 Interest Received

Interest Receivable Unrestricted
Funds
2022
£
3		 Unrestricted
Funds
2021
£
23

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Charity Registration No. 1191868

5 Charitable Activities

Depreciation & Impairment
Donations Made
Share of support costs
(see note 6)		 Charitable
Expenditure
2022
£
364
126,623
126,987
3,204
130,191

6 Support Costs

Advertising & Promotion
Printing & Stationery
Postage & Delivery
Processing Services
Professional Fees
Travel
Telecoms & Data Services
Utilities
Rent & Rates
Miscellaneous Expenses
Analysed between
Charitable activities		 Support
Costs
2022
£
262
55
15
863
35
33
175
288
1,458
20
3,204
3,204		 Governance
Costs
2022
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
Costs
2022
£
262
55
15
863
35
33
175
288
1,458
20
3,204
3,204		 Total
Costs
2021
£
42
162
110
50
29
620
-
-
-
-
1,013
1,013

7 Trustees

None of the Trustees (or any person connected with them) received any renumerations or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

e year was:
2022 2021
Number Number
Total - -

There were no employees whose renumeration was more than £60,000.

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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Charity Registration No. 1191868

10 Tangible Fixed Assets

10
Tangible Fixed Assets
Cost
At 1st August 2021
Additions
At 31st July 2022
Depreciation & Impairment
Depreciation charged in the year
At 31st July 2022
Carrying Amount
At 31st July 2022
At 31st July 2021
11
Debtors
Amounts falling due within one year
Other Debtors
12
Trustee and Related Party Transactions		 2022
£
-		 Fixtures
& Fittings
£
1,228
229
1,457
364
364
1,093
1,228
2021
£
20

During the year a charge for rental was paid to Mrs Freeda Yousaf, who is a Trustee of the charity, of £1,458 (2020-2021; nil) which was an arm’s length charge for the use of her property as an office.

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