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2022-09-30-accounts

Charity registration number 1191989

MUSLIM STUDENT CHARITY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

MUSLIM STUDENT CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr M Kozbar Ms Z Mohammed Mr O Sawalha Mr M A Rehman Mrs A Said Mr N Tamimi

Charity number 1191989 Independent Examiner ZAM Mushtaq Ltd Office 9 Dalton House 60 Windsor Avenue London SW19 2RR

MUSLIM STUDENT CHARITY

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Independent auditor's report
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 13

MUSLIM STUDENT CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022

The trustees present their annual report and financial statements for the year ended 30 September 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 governing document, 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 January 2019).

Objectives and activities

The Muslim Student Charity (MSC) was originally established in 1968 under the number 259232. The charity was registered as Charitable Incorporated Organisation (CIO) on 26 October 2020, under the number 1191989. It is dedicated to improving Muslim students' welfare and developmental needs within the British higher and further education system.

The charity's objectives are unique, as indeed MSC is in this field of student welfare; MSC seeks to acquire longterm "Waqf" investments aimed at generating a sustainable income to financially support the core activities of Muslim Students in the UK. The charity is aiming to purchase and make available high-quality accommodation for Muslim Students.

MSC also works to support campuses' Islamic education and development work of Student Islamic Societies by providing them with event sponsorship, logistical support, free or subsidised brochure literature, and materials, etc. MSC continues to develop tomorrow's community leaders by providing effective support and Islamic guidance to young Muslim Students through necessary leadership development programmes, residential and tours designed to expose and give young leaders access to renowned scholars.

Strategies

The trust plans to further develop its projects and services to a higher quality. The trust (Waqf) also intends to continue developing partnerships with more organisations to benefit a wider range of Muslim Student.

MSC strives to provide Muslim students with the necessary training and guidance through true Islamic teachings of moderation, tolerance, and consideration. It also helps them achieve their excellence.

We seek to make this Trust more durable and beneficial for the Muslim student community. The core part of our strategy is student welfare, raising awareness of the tolerant Islamic values and constructive coexistence on campuses. As well as preparing future knowledgeable and responsible leaders for the Muslim and the wider community.

Public Benefit

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

Significant Activities

Over this financial year, the MSC continued to serve Muslim students mainly by providing accommodation in an Islamic environment. The effects of the global Coronavirus COVID-19 pandemic are still haunting us and affecting the charity's activities but to a lesser extent. MSC also continued to work and collaborate with other UK organisations including the Federation of Student Islamic Societies (FOSIS).

Having adopted a clear vision of the future of the charity, centred on the development of the student accommodation building, the board of Trustees worked with a project manager to execute the elaborated plan for the refurbishment project. The application has been submitted to the Brent Council.

Grant making policies

The charity continues to support the activities of Muslim students through supporting projects run by Student Islamic Societies in both further and higher education in the United Kingdom and in coordination with FOSIS as the national umbrella organisation for Muslim students in the UK.

MUSLIM STUDENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Achievements and performance

The charity continues to use part of its surplus funds for the year to support the activities of Muslim students in the UK.

Fundraising activities

The charity primarily raises its funds from the rental income of its investment property where also the principal office is situated at.

Investment performance

The trustees continue to maintain the property to ensure that it is of a high standard and ensure that the funds generated are efficiently and effectively maintained.

Financial review

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 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 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.

Risk Policy

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 the major risks, especially the finances, which are kept under review.

Plans for future periods

To continue to serve the Muslim student community.

To improve our services.

To finish the planning phase and move to begin the project to refurbish the property, which will increase income for the charity.

Structure, governance and management

The charity is a charitable incorporated organisation. It was registered on 26 October 2020. The transfer from the unincorporated charity number 259232 took place on the same date.

The trustees who served during the year and up to the date of signature of the financial statements were: Mr M Kozbar

Ms Z Mohammed Mr O Sawalha

Mr M A Rehman Mrs A Said Mr N Tamimi

Recruitment and appointment of new trustees

The existing trustees are responsible for the recruitment of the new trustees.

The trustees believe this approach ensures that new trustees are respected members of the Muslim student community and ensures that they are served by the best possible manner.

In selecting new trustees, we seek to identify people who are or were active within student institutions and are willing to volunteer to help make a positive impact on student's lives. The process allows due consideration of the person's eligibility, personal competence, and interests in students' development wellbeing.

Organisational structure

MUSLIM STUDENT CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

The charity trustees are responsible for the general control and management of the charity. the trustees give their time freely and receive no remuneration or other financial benefits.

The trustees meet together as a body regularly and are responsible for all decisions taken in relation to running the charity. To assist in the smooth running of the charity the trustees have appointed an administrator to help them with the day-to-day running and management and report back with his remarks and recommendations to the full meeting of the trustees chaired by the chair of the trustees.

Induction and training of new trustees

Following appointment, new trustees are introduced to their new role and given a copy of the trust deed and a guide to the policies and procedures adopted by our charity. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act and initially assisted by existing trustees on particular activities and projects.

Going concern

The Trustees have considered the effect of the Covid-19 outbreak that has been spreading worldwide early 2020 with respect to the charity's activities. The outbreak has had an impact on the charity's income and activities.

Whilst the outbreak has caused disruption to charity's income and activities, the Trustees remain confident that it will be able to continue its operations.

The trustees' report was approved by the Board of Trustees.

..............................

Mr N Tamimi

Trustee

Date: .............................................

MUSLIM STUDENT CHARITY

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF MUSLIM STUDENT CHARITY

I report to the trustees on my examination of the financial statements of Muslim Student Charity (the charity) for the year ended 30 September 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 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:

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.

ZAM Mushtaq Ltd

Office 9 Dalton House 60 Windsor Avenue London SW19 2RR

Dated: .........................

MUSLIM STUDENT CHARITY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2022

**Unrestricted ** Unrestricted
funds funds
2022 2021
Notes £ £
Income and endowments from:
Donations and legacies 3 690 7,967
Investments 4 36,215 11,776
Other income 5 - 12
Total income 36,905 19,755
Expenditure on:
Raising funds 6 24,990 18,823
Charitable activities 7 7,350 2,138
Total expenditure 32,340 20,961
Net gains/(losses) on investments 11 189,278 -
Net income/(expenditure) for the year/
Net movement in funds 193,843 (1,206)
Fund balances at 1 October 2021 2,679,279 2,680,485
Fund balances at 30 September 2022 2,873,122 2,679,279

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

All income and expenditure derive from continuing activities.

MUSLIM STUDENT CHARITY

BALANCE SHEET

AS AT 30 SEPTEMBER 2022

Notes
Fixed assets
Tangible assets
13
Investment property
14
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
£
399
2,750,000
2,750,399
125,100
(2,377)
122,723
2,873,122
2,873,122
2,873,122		 2021
£
£
599
2,560,722
2,561,321
120,335
(2,377)
117,958
2,679,279
2,679,279
2,679,279		 2021
£
£
599
2,560,722
2,561,321
120,335
(2,377)
117,958
2,679,279
2,679,279
2,679,279
2,561,321
117,958
2,679,279
2,679,279
2,679,279

The financial statements were approved by the Trustees on .........................

.............................. Mr N Tamimi Trustee

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

Charity information

Muslim Student Charity is charitable incorporated organisation. The charity number is 1191989. The principal place of activity is 38 Mapesbury Road, London, NW2 4JD.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, 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 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 Cash Flows.

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 has 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.

1.2 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.

1.3 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 charity.

1.4 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.

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

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.

1.5 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.

1.6 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 so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers

25% Straight Line

The gain or loss arising on 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.

1.7 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

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 in order 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.

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.

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

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 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 charity’s contractual obligations expire or are discharged or cancelled.

1.10 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 charity 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 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

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 203 11
HMRC JRS Grant 487 7,956
690 7,967

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

4
5
6		 Investments
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
Rental income
36,215
11,776
Other income
Total Unrestricted
funds
2022
2021
£
£
Other income
-
12
Raising funds
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Staff costs
11,928
10,356
Investment management
13,062
8,467
24,990
18,823		 Investments
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
Rental income
36,215
11,776
Other income
Total Unrestricted
funds
2022
2021
£
£
Other income
-
12
Raising funds
Unrestricted Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Staff costs
11,928
10,356
Investment management
13,062
8,467
24,990
18,823
8,467
18,823

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

7 Charitable activities

Depreciation and impairment
Share of support costs (see note 8)
Share of governance costs (see note 8)
Support costs
Support
costs
Governance
costs
£
£
Postage and stationery
-
-
Sundries
380
-
Subscriptions
-
-
Legal and professional
-
5,820
Accountancy fees
-
950
380
6,770
Analysed between
Charitable activities
380
6,770		 Unrestricted
Funds
Unrestricted
Funds
2022
2021
£
£
200
200
380
388
6,770
1,550
7,350
2,138
2022Support costs Governance
costs
2021
£
£
£
£
-
3
-
3
380
227
-
227
-
158
-
158
5,820
-
-
-
950
-
1,550
1,550
7,150
388
1,550
1,938
7,150
388
1,550
1,938		 Unrestricted
Funds
Unrestricted
Funds
2022
2021
£
£
200
200
380
388
6,770
1,550
7,350
2,138
2022Support costs Governance
costs
2021
£
£
£
£
-
3
-
3
380
227
-
227
-
158
-
158
5,820
-
-
-
950
-
1,550
1,550
7,150
388
1,550
1,938
7,150
388
1,550
1,938
2,138
2021
£
3
227
158
-
1,550
1,938
1,938

8 Support costs

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Property management and rent collection 1 1

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

10 Employees (Continued)
Employment costs 2022 2021
£ £
Wages and salaries 11,928 10,356

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

11 Net gains/(losses) on investments

Unrestricted Total
funds
2022 2021
£ £
Revaluation of investment properties 189,278 -

12 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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13 Tangible fixed assets

Tangible fixed assets
Computers
£
Cost
At 1 October 2021 799
At 30 September 2022 799
Depreciation and impairment
At 1 October 2021 200
Depreciation charged in the year 200
At 30 September 2022 400
Carrying amount
At 30 September 2022 399
At 30 September 2021 599

MUSLIM STUDENT CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

14 Investment property

Investment property
Fair value
At 1 October 2021
Net gains or losses through fair value adjustments
At 30 September 2022		 2022
£
2,560,722
189,278
2,750,000

Investment property comprises 38 Mapesbury Road, London, NW2 4JD. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 12/1/23 by Dexters, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Freehold
15
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 2022
£
2,750,000
2022
£
927
1,450
2,377		 2021
£
2,560,722
2021
£
927
1,450
2,377

16 Related party transactions

There were no disclosable related party transactions during the year.