Charity registration number 1191989
MUSLIM STUDENT CHARITY
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 2023
The trustees present their annual report and financial statements for the year ended 30 September 2023.
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 a healthy and friendly 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.
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MUSLIM STUDENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
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
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MUSLIM STUDENT CHARITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
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, but has begun to subside at the end of 2021, with respect to the charity's activities.
The trustees' report was approved by the Board of Trustees.
Mr N Tamimi
Trustee
25 July 2024
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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 2023.
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:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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.
ZAM Mushtaq Ltd
Office 9 Dalton House 60 Windsor Avenue London SW19 2RR
Dated: 25 July 2024
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MUSLIM STUDENT CHARITY
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 5,798 | 690 |
| Investments | 4 | 58,524 | 36,215 |
| Total income | 64,322 | 36,905 | |
| Expenditure on: | |||
| Raising funds | 5 | 35,539 | 24,990 |
| Charitable activities | 6 | 4,110 | 7,350 |
| Total expenditure | 39,649 | 32,340 | |
| Net gains on investments | 10 | - | 189,278 |
| Net income and movement in funds | 24,673 | 193,843 | |
| Reconciliation of funds: | |||
| Fund balances at 1 October 2022 | 2,873,122 | 2,679,279 | |
| Fund balances at 30 September 2023 | 2,897,795 | 2,873,122 |
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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MUSLIM STUDENT CHARITY
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
| Notes Fixed assets Tangible assets 12 Investment property 13 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities The funds of the charity Unrestricted funds |
2023 £ £ 199 2,750,000 2,750,199 149,973 2,377 147,596 2,897,795 2,897,795 2,897,795 |
2022 £ £ 399 2,750,000 2,750,399 125,100 2,377 122,723 2,873,122 2,873,122 2,873,122 |
2022 £ £ 399 2,750,000 2,750,399 125,100 2,377 122,723 2,873,122 2,873,122 2,873,122 |
|---|---|---|---|
| 2,750,399 122,723 |
|||
| 2,873,122 | |||
| 2,873,122 | |||
| 2,873,122 |
The financial statements were approved by the trustees on 25 July 2024
Mr N Tamimi Trustee
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 or grantors 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.
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
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.
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 5,798 | 203 |
| HMRC JRS Grant | - | 487 |
| 5,798 | 690 |
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
4 Income from investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Rental income | 58,524 | 36,215 |
5 Expenditure on raising funds
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Fundraising and publicity | ||
| Staff costs | 12,000 | 11,928 |
| Investment management | 23,539 | 13,062 |
| Total costs | 35,539 | 24,990 |
6 Expenditure on charitable activities
| unrestricted | unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Direct costs | ||
| Depreciation and impairment | 200 | 200 |
| Share of support and governance costs (see note 7) | ||
| Support | 45 | 380 |
| Governance | 3,865 | 6,770 |
| 4,110 | 7,350 | |
| Analysis by fund | ||
| Unrestricted funds | 4,110 | 7,350 |
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
7 Support costs
| Sundries Legal and professional Accountancy fees Analysed between Charitable activities |
Support costs Governance costs £ £ 45 - - 2,795 - 1,070 45 3,865 45 3,865 |
2023Support costs Governance costs £ £ £ 45 380 - 2,795 - 5,820 1,070 - 950 3,910 380 6,770 3,910 380 6,770 |
2022 £ 380 5,820 950 |
|---|---|---|---|
| 7,150 | |||
| 7,150 |
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9 Employees
The average monthly number of employees during the year was:
| Property management and rent collection Employment costs Wages and salaries |
2023 Number 1 2023 £ 12,000 |
2022 Number 1 |
|---|---|---|
| 2022 £ 11,928 |
There were no employees whose annual remuneration was more than £60,000.
10 Gains and losses on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| Gains/(losses) arising on: | £ | £ |
| Revaluation of investment properties | - | 189,278 |
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
11 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
12 Tangible fixed assets
| Cost At 1 October 2022 At 30 September 2023 Depreciation and impairment At 1 October 2022 Depreciation charged in the year At 30 September 2023 Carrying amount At 30 September 2023 At 30 September 2022 13 Investment property Fair value At 1 October 2022 and 30 September 2023 |
Computers £ 799 |
|---|---|
| 799 | |
| 400 200 |
|
| 600 | |
| 199 | |
| 399 | |
| 2023 £ 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 14 Creditors: amounts falling due within one year Other creditors Accruals and deferred income |
2023 £ 2,750,000 2023 £ 927 1,450 2,377 |
2022 £ 2,750,000 |
|---|---|---|
| 2022 £ 927 1,450 |
||
| 2,377 |
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MUSLIM STUDENT CHARITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
15 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At General funds Previous year: At General funds |
1 October 2022 Incoming resources Resources expended Gains and losses At 30 September 2023 £ £ £ £ £ 2,873,122 64,322 (39,649) - 2,897,795 1 October 2021 Incoming resources Resources expended Gains and losses At 30 September 2022 £ £ £ £ £ 2,679,279 36,905 (32,340) 189,278 2,873,122 |
|---|---|
16 Related party transactions
There were no disclosable related party transactions during the year.
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