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2022-10-31-accounts

Charity Registration No. 1191983

SHIFFA

(A CHARITABLE INCORPORATED ORGANISATION)

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 OCTOBER 2022

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

CONTENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

Pages
Legal and Administrative Information 2
Trustees’ Report 3 - 6
Independent Examiner’s Report 7 - 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Financial Statements 12 - 16

1

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

Trustees Aisha Musarrat Ahmed Chair
Tahmanna Khanam Choudhury
Razwana Akhtar
Ismaeel Mohammad
Khalid Yaqub (appointed on: 11/07/2021)
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 YEAR ENDED 31 OCTOBER 2022

_______________

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:

The strategy is reviewed regularly by the Trustees.

3

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

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:

Review of achievements and performance for the period

In the year 2021-22, the charity continued to fundraise for and support the Nur ul Ain Orphanage but also began to build the Jamiyah Anayah University Academy building, including apartments for orphans who would be boarding at the school. The all-girls school will run on the Cambridge Curriculum and is based in Kotla Arab Ali, North Punjab. The boys graduating from Nur ul Ain, will be enrolled into local Army Cadet schools, as the provision for them is already good in these schools.

We have also had land donated for a new Women’s Refuge Shelter to be built and have started the work on this in 2022. The Project has been named, Dar ul Sakinah.

4

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

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:

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 £145,616 (2020-21: £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 £135 (2021: £152) as unrestricted and undesignated free reserves. Restricted reserves at the end of the year amount to £Nil (2021: £14,628).

Going Concern

The Charity reported a cash outflow for the year of £14,645 (2021: inflow of £14,780) and expects to make an inflow in 2022-23. Despite the low funds total, due to having no legal commitments to fund any projects, having no employee or other admin costs commitments, and 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 whilst continuing its support of the Orphanage, where a new cohort of orphans is expected to come in when the current occupants graduate to higher education schools and Cadet colleges.

It also intends to build the Refuge Shelter House and increase its work to help build water wells and provide medical care for families that need it most near its current projects.

5

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

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:

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 28 February 2024 and signed on their behalf, by:

Aisha Musarrat Ahmed

Trustee

6

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

Independent examiner’s report to the Trustees of SHIFFA

I report on the financial statements of the charity for the period ended 31 October 2022 which are set out on pages 9 to 16.

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:

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 YEAR ENDED 31 OCTOBER 2022

_______________

Independent examiner’s statement

In the course of my examination, no matter has come to my attention:-

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: 28 February 2024

ASJ Financial Accounting Services 320a Stratford Road Solihull B90 3DN

8

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 OCTOBER 2022

_______________

Restated* Restated*
Unrestricted Restricted
Total		 Unrestricted Restricted Total
Funds Funds 2022 Funds Funds 2021
Note £ £ £ £ £ £
Income from:
Donations and legacies 2
66,547 79,069		 145,616 14,908 30,575 45,483
_ _ __ __ __ _
Total income 66,547 79,069 145,616 14,908 30,575 45,483
_ _ __ __ __ _
Expenditure on:
Charitable activities 3 798 159,463 160,261 128 30,575 30,703
_ _ __ __ __ _
Total expenditure 798 159,463 160,261 128 30,575 30,703
_ _ __ __ __ _
Net income/(expenditure)
before transfer 65,749 (80,394) (14,645) 14,780 - 14,780
Transfers between funds (80,394) 80,394 - - - -
_ _ __ __ __ _
Net movement in funds (14,645)- (14,645) 14,780 - 14,780
Reconciliation of funds
Total funds brought forward 14,780- 14,780 - - -
_ _ __ __ __ _
Total funds carried forward 135- 135 14,780
-		 14,780
_ _ __ __ __ _

The notes on pages 12 to 16 form part of these financial statements.

* Prior income and expenditure split between unrestricted and restricted has been restated due to new information which came to light in the current year examination work. No changes to overall level of total funds in the charity.

9

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

BALANCE SHEET

AS AT 31 OCTOBER 2022

_______________

2022 2021
Note £ £ £ £
Current assets
Cash at bank and in-hand 10 135 14,780

__
__
Net current assets 135 14,780
__ __
Net assets 135 14,780
__ __
Funds
Unrestricted funds: General reserve 5 135 14,780
Restricted funds 5 - -
__ __
135 14,780
__ __

The notes on pages 12 to 16 form part of these financial statements.

The financial statements were approved by the Trustees on 28 February 2024 & signed on their behalf, by:

Aisha Musarrat Ahmed Trustee

10

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 OCTOBER 2022

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2022		 CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2022		 CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2022		 CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2022
_______________
Note 2022
2021
£ £
Cash flows from operating activities:
Net cash provided by operating activities 9 (14,645)
 14,780
__ __
Increase / (decrease) in cash & cash equivalents
in the reporting period (14,645)
 14,780
__ __
Cash & cash equivalents at the beginning of
the reporting period 14,780 -
__ __
Cash & cash equivalents at the end of the
reporting period 10 135 14,780
__ __

The notes on pages 12 to 16 form part of these financial statements.

11

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

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

_______________

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)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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 general funds and activities in furtherance of the objects of the Charity.

12

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

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

_______________

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 Trustees 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 Total
Funds Funds Funds Funds
2022 2022 2022 2021
£ £ £ £
Voluntary donations (see note 5) 66,547 79,069 145,616 45,483
___ ___ ___ ___
66,547 79,069 145,616 45,483
___ ___ ___ ___

13

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

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

_______________

3. Charitable activities - costs

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
£ £ £ £
Projects costs and grants (see note 5) - 159,463 159,463 365
IT and website costs 286 - 286 -
Bank charges 512 - 512 60
___ ___ ___ ___
798 159,463 160,261 425
___ ___ ___ ___

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
Nur ul Ain Orphanage
Jamiyah Anaya Academy
Dar ul Sakinah
Other

Total restricted funds

Unrestricted funds
General reserve


Total funds

 Brought
forward
£
-
-
-
-
_
-
_
14,780
__
14,780
**__ **		 Incoming
resources
£
33,225
18,520
25,369
1,955
_
79,069
_
66,547
__
145,616
**__ **		 Resources
expended
£
(34,427)
(74,722)
(47,939)
(2,375)
_
(159,463)
_
(798)
___
(160,261)
**___ **		 Fund
transfers
£
1,202
56,202
22,570
420
_
80,394
_
(80,394)
___
-
___		 Carried
forward
£
-
-
-
-
_
-
_
135
___
135
___

14

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

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

_______________

Restricted Project Descriptions

Nur ul Ain Orphanage

Nur ul Ain Sharif Trust (in partnership with SHIFFA) built an Orphanage 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. Zakat funds donated to the charity are also spent on this project.

Jamiyah Anaya Academy

The Jamiyah Anayah Academy now completed is used as an institution for underprivileged young ladies and orphans. It provides them with high level contemporary college education they need along with knowledge of the world in a true Islamic ethos. The building is a multi-functional space that serves as an educational and residential facility for the young orphan and needy ladies. There is a wide range of spaces from lecture theatres through to private study areas. We intend to equip the Jamia with modern technology which will enhance the learning experience. Zakat funds donated to the charity are also spent on this project.

Dar ul Sakinah Refuge Shelter

This is a new Women’s Refuge House being built to help women who have nowhere else to go or need a safe place to stay during difficult times. The land for this has been donated by a donor in Pakistan and the building work has begun.

6. Analysis of net assets between funds

(a)
 Unrestricted Restricted Total
funds funds funds
£ £ £
Fund balances at 31 October 2022 are represented by:
Net current assets
 135 - 135
__ __ ___
Total funds
 135 - 135
__ __ ___
(b)
 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
__ __ ___

15

SHIFFA (A CHARITABLE INCORPORATED ORGANISATION)

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

_______________

7. Related parties

There were no related party transactions in the period.

8. Volunteers

The charity is entirely administered by volunteers in the UK and Pakistan. The Charity trustees recognise the vital work of its volunteers in helping to fulfil its mission and would like to thank everyone who helps make the projects of our charity possible through their donated time and resources.

9. Reconciliation of cash flows from operating activities

2022 2021
£ £

Net income / (expenditure) for the reporting period
(14,645) 14,780
___ ___
Net cash provided by operating activities (14,645) 14,780
___ ___
10. Analysis of cash and cash equivalents
2022 2021
£ £
Cash at bank and in hand 135 14,780
___ ___
Total of cash and cash equivalents 135 14,780
___ ___
10A. Analysis of changes in net debt
At start Cashflows At end
of year in year of year
£ £ £
Cash 14,780 (14,645) 135
___ ___ ___
14,780 (14,645) 135
___ ___ ___

16