**Charity Registration No. 1191983**
## **SHIFFA**
(A CHARITABLE INCORPORATED ORGANISATION)
**REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2021**
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **CONTENTS**
## **FOR THE PERIOD ENDED 31 OCTOBER 2021**
|**_______________________________________________________________________________________**|**_______________________________________________________________________________________**|
|---|---|
||**Pages**|
|Legal and administrative information|2|
|Trustees’ report|3 – 6|
|Independent examiner’s report|7 – 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Notes to the financial statements|11 – 14|
1
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **LEGAL AND ADMINISTRATIVE INFORMATION FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
|**Trustees**|Aisha Musarrat Ahmed|
|---|---|
||Khalid Yaqub|
||Razwana Akhtar|
||Ismaeel Mohammad|
||Tahmanna Khanam Choudhury|
|**Principal Address**|576 Coventry Road|
||Small Heath|
||Birmingham|
||B10 0UN|
|**Charity Number**|1191983|
|**Independent Examiner**|Mohammad Ansari|
||ASJ Financial Accounting Services|
||320a Stratford Road|
||Solihull|
||B90 3DN|
|**Bankers**|Barclays Bank Plc|
||Leicester|
||LE87 2BB|
2
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **TRUSTEES’ REPORT**
## **FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
The Trustees present their report and financial statements for the period ended 31 October 2021. The Trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "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) (effective 01 January 2019).
## **Structure, governance and management**
## _Governing document/Constitution_
The organisation is a Charitable Incorporated Organisation (CIO). The charity was established by Constitution signed on 20 September 2020 and registered with the Charity Commission on 26 October 2020, under number 1191983.
## _Tax status_
The charity is registered as a CIO and is therefore exempt from corporation tax and income tax.
## _Recruitment and training of trustees_
The Board of Trustees currently consists of five members who were recruited due to their commitment and expertise. Role descriptions, where applicable, are issued to each Trustee and a full induction is given setting out the obligations of a Trustee. The list of current Trustees can be found on page 2 of this document.
## _Organisational structure_
The Charity is principally based in Birmingham but works in Pakistan to deliver its projects. The Trustees are responsible for the governance of the Charity, and the day-to-day management is performed by the Trustees and volunteers.
## _Key risks and uncertainties_
The Trustees actively review the major risks which the Charity faces on a regular basis, in particular those relating to its operations and finances. They are satisfied that systems are in place to mitigate the charity’s exposure to the major risks. The risk management strategy comprises:
- A regular review of the risks which the Charity may face;
- The adequacy of current systems and procedures to mitigate those risks identified in the strategy; and
- The implementation of procedures designed to minimise any potential risk on the Charity should any of those risks materialise.
The strategy is reviewed regularly by the Trustees.
3
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **TRUSTEES’ REPORT**
## **FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## **Aims, objectives and activities**
_Aims, objectives and intended impacts_
## Objects:
_“The prevention or relief of poverty, sickness or financial hardship, anywhere in the world, as an expression of our Islamic faith, by providing or assisting all, irrespective of faith, in the provision of food aid, education, training, healthcare projects, disaster and the effects of war relief, all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient, and any other avenue deemed suitable through: grants, items and services to individuals in need and/or charities or other organisations working to meet these aims.”_
## _Public benefit statement_
The section of this report above entitled ‘Aims, objectives and activities’ sets out the aims and priorities of the Charity. The Trustees have considered this matter, 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;
- That the aims and work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;
- That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay
- That there is no detriment or harm arising from the aims or activities.
## _Review of achievements and performance for the period_
Since its registration 12 months ago, the Charity has begun work in fundraising from the public and supporting two main projects in Pakistan; The Nur ul Ain Orphanage based in Kotla and raising funds to start construction work on a ladies and orphans Academy (Jamiah Anaya).
We are working with a trust charity in Pakistan to deliver our projects working with orphans and ladies in need.
4
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **TRUSTEES’ REPORT**
## **FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## _Aims, objectives and intended impacts (cont.)_
## _Keys risks and uncertainties_
The Trustees actively review the major risks which the Charity faces on a regular basis, in particular those relating to its operations and finances. They are satisfied that systems are in place to mitigate the charity’s exposure to the major risks. The risk management strategy comprises:
- A regular review of the risks which the Charity may face;
- The adequacy of current systems and procedures to mitigate those risks identified in the strategy;
- The implementation of procedures designed to minimise any potential risk on the Charity should any of those risks materialise.
The strategy will be reviewed regularly by the Trustees.
## **Financial review**
## _Principal sources of funding_
The principal source of funding for the Charity is from individual donors. Voluntary donations received in the period amounted to £45,483. Costs were kept under rigid control during the period and monitored regularly.
## _Reserves Policy_
The Charity holds unrestricted funds which have been provided to the charity via donations and charitable activities. Under the terms of the donations, the charity must retain the assets in perpetuity and can only use the income to support its charitable activities.
The unrestricted funds represent income earned but not yet utilised in supporting charitable activities. At 31 October 2021, the charity held reserves of £152 as unrestricted and undesignated free reserves. Restricted reserves at the end of the year amount to £14,628.
## _Going Concern_
The Charity reported a cash inflow for the year of £30,791 (2020: inflow of £31,985) and expects to make an inflow in 2022 also. After making further appropriate enquiries and gaining assurances over income levels, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and at least the next 12 months from the date of signing these accounts, as required. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## **Future plans**
The Charity intends to continue fundraising for the building of the Academy and continue its support of the Orphanage. It also intends to increase its work to help build water wells for families that need it most near its current projects.
5
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **TRUSTEES’ REPORT**
## **FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## **Statement of Trustees’ responsibilities**
The Trustees are required to prepare financial statements for each financial year in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which give a true and fair view of the state of affairs of the Charity and the incoming resources and application of resources, including the net income and expenditure for the year. In preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- 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 adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and all other applicable law. 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.
## **Accounts preparation**
The Trustees confirm that the accounts comply with current statutory requirements, and with those of the governing instrument.
This report was approved by the Trustees on 18 November 2022 and signed on their behalf, by:
**Aisha Musarrat Ahmed** Trustee
6
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **INDEPENDENT EXAMINER’S REPORT FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## **Independent examiner’s report to the Trustees of SHIFFA**
I report on the financial statements of the charity for the period ended 31 October 2021 which are set out on pages 9 to 14.
This report is made solely to the charity’s Trustees, as a body, in accordance with section 145 and the regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
## **Respective responsibilities of Trustees and Examiner**
The Trustees are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed.
Having satisfied myself that the company is not subject to audit under charity or company law and is eligible for independent examination, it is my responsibility to:
- examine the financial statements under section 145 of the Act;
- follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Act; and
- state whether particular matters have come to my attention
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, 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 view given by the financial statements.
7
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **INDEPENDENT EXAMINER’S REPORT FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## **Independent examiner’s statement**
In the course of my examination, no matter has come to my attention:-
1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 130 of the Act; and
- to prepare financial statements which accord with the accounting records and comply with accounting requirements of the Act and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
- have not been met; or
2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
## **Mohammad Ansari**
Dated: 18 November 2022
ASJ Financial Accounting Services 320a Stratford Road Solihull B90 3DN
8
## **SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
|||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|
|||**2021**|**2021**|**2021**|
||**Note**|**£**|**£**|**£**|
|**Income from:**|||||
|Donations and legacies
|2|**280**|**45,203**|**45,483**|
|||_________|_________|_________|
|**Total income**||**280**|**45,203**|**45,483**|
|||_________|_________|_________|
|**Expenditure on:**|||||
|Charitable expenditure
|3|**128**|**30,575**|**30,703**|
|||_________|_________|_________|
|**Total expenditure**||**128**|**30,575**|**30,703**|
|||_________|_________|_________|
|**Net movement in funds**||**152**|**14,628**|**14,780**|
|**Reconciliation of funds:**|||||
|Total funds brought forward||-|
-|-|
|||_________|_________|_________|
|**Total funds carried forward**
|5|**152**|**14,628**|**14,780**|
_________ _________ _________
All incoming resources and resources expended derive from continuing activities.
The notes on pages 11 to 14 form part of these financial statements.
9
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **BALANCE SHEET AS AT 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
||||**2021**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Current assets**||||
|Cash at bank and in-hand||**14,780**||
|||_________||
|||**14,780**||
|**Creditors:**||||
|Amounts falling due||||
|within one year||**-**||
|||_________||
|**Net current assets**|||**14,780**|
||||_________|
|**Net assets**|||**14,780**|
||||**_________**|
|**Funds**||||
|Unrestricted funds|5||**152**|
|Restricted funds|5||**14,628**|
||||_________|
||||**14,780**|
||||**_________**|
The notes on pages 11 to 14 form part of these financial statements.
The financial statements were approved by the Trustees on 18 November 2022 & signed on their behalf, by:
**Aisha Musarrat Ahmed** Trustee
10
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
**NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2021**
**_______________________________________________________________________________________**
## **1. Accounting policies**
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 2019) - (Charities SORP (FRS 102)), which is the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Charity 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.
The following principal accounting policies have been applied:
## _**a) Incoming resources**_
Income includes the total funds received during the period and comprises donations collected directly or by volunteers and income from fundraising events. Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty.
Income tax reclaimable under the Gift Aid Scheme is recognised on an accruals basis once income is considered probable.
Donors are given the option to restrict their donation when it is made. Any Gift Aid claimed on restricted donations is classed as unrestricted income.
## _**b) Resources expended and basis of allocation**_
Expenditure is included when incurred and has been shown in the Statement of Financial Activities inclusive of non-recoverable Value Added Tax.
Expenditure on operational programmes is recognised in the period in which it is incurred.
Currently all costs are directly attributable to specific activities, but where required, certain shared costs will be apportioned to activities in furtherance of the objects of the Charity.
11
**SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2021**
**_______________________________________________________________________________________**
## **1. Accounting policies (cont.)**
## **c** _**) Funds accounting**_
Funds held by the charity are:
_Unrestricted funds -_ These are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
_Designated funds_ – These are unrestricted funds earmarked by the trustees for particular purposes.
_Restricted funds_ – These are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund.
## _**d) Cash at bank and in hand**_
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## _**e) Judgements in applying accounting policies and key sources of estimation uncertainty**_
In preparing the Financial Statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
The directors consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies above.
## **2. Donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**Funds**|**Funds**|**Funds**|
||**2021**|**2021**|**2021**|
||**£**|**£**|**£**|
|Voluntary donations|**280**|**45,203**|**45,483**|
||_________|_________|_________|
||**280**|**45,203**|**45,483**|
||**_________**|**_________**|**_________**|
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## **SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2021**
**_______________________________________________________________________________________**
## **3. Charitable activities - costs**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**Funds**|**Funds**|**Funds**|
||**2021**|**2021**|**2021**|
||**£**|**£**|**£**|
|Project funds sent for Pakistan projects|**-**|**30,575**|**30,575**|
|Bank charges|**128**|**-**|**128**|
||_________|_________|_________|
||**128**|**30,575**|**30,703**|
||**_________**|**_________**|**_________**|
## **4. Staff & Trustees costs**
There were no employees in the period. During the period £NIL of expenses were incurred for the reimbursement of Trustees’ expenses. The Trustees received no other remuneration in the period.
## **5. Statement of funds**
|**Restricted funds**
Zakat distribution
Nur ul Ain Orphanage
Jamiah Anaya Academy
**Total restricted funds**
**Unrestricted funds**
General reserve
**Total funds**
|**Brought**
**forward**
**£**
-
-
-
________
**-**
________
-
**________**
-
**________**|**Incoming**
**resources**
**£**
4,401
28,998
11,804
________
**45,203**
________
280
**________**
**45,483**
**________**|**Resources**
**expended**
**£**
(4,401)
(14,370)
(11,804)
_________
**(30,575)**
_________
(128)
**_________**
**(30,703)**
**_________**|**Fund**
**transfers**
**£**
-
-
-
_________
**-**
_________
-
**_________**
-
**_________**|**Carried**
**forward**
**£**
-
14,628
-
_________
**14,628**
_________
**152**
**_________**
**14,780**
**_________**|
|---|---|---|---|---|---|
13
## **SHIFFA** (A CHARITABLE INCORPORATED ORGANISATION)
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2021**
## **_______________________________________________________________________________________**
## **Restricted Project Descriptions**
## _**Zakat distribution**_
Zakat is a specific type of donation which is restricted to be distributed to the very poorest in society for their most urgent and vital needs. We use these funds to provide food, accommodation and water, as well as any other project that the Trustees deem fit when an appropriate project proposal is put forward.
## _**Nur ul Ain Orphanage**_
Nur ul Ain Sharif Trust (in partnership with SHIFFA) is a registered newly built institution in Kotla, rural North Punjab, Pakistan. It is a small institution with a great vision. We provide a caring and safe environment for the children to develop their confidence and self-esteem to become good citizens. Every penny you donate will go directly towards your child’s provision, education, nurture and care at Nur ul Ain Sharif Trust.
## _**Jamiah Anaya Academy**_
The Jamiah Anayah Academy will be used as an institution for underprivileged young ladies and orphans. It will provide them with high level contemporary college education they need along with knowledge of the world in a true Islamic ethos. The proposed building is to be a multi-functional space that will serve as an educational and residential facility for the young orphan and needy ladies. There will be a wide range of spaces from lecture theatres through to private study areas. We propose to equip the Jamia with modern technology which will enhance the learning experience.
## **6. Analysis of net assets between funds**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**£**|**£**|**£**|
|**Fund balances at 31 October 2021 are represented by:**||||
|**Net current assets**
|**152**|**14,628**|**14,780**|
||________|________|_________|
|**Total funds**
|**152**|**14,628**|**14,780**|
||**________**|**________**|**_________**|
## **7. Related parties**
There were no related party transactions in the period.
14