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2024-07-31-accounts

Draft Financial Statements at 21 October 2024 at 12:30:11

Charity registration number 1194451

EQUILIBRIA

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ahmed Al Ani Iyad Al Qudah Dr S Shubib Charity number 1194451 Accountants AMS Accountants Medical Ltd Floor 2 9 Portland Street Manchester M1 3BE Bankers Lloyds Bank Butler Place, Chelmsford Legg St OSC 1 Legg Street Essex, CM1 1JS

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

CONTENTS

Page
Trustees report 1 - 2
Statement of trustees responsibilities 3
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 10

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2024

The trustees present their annual report and financial statements for the year ended 31 July 2024.

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

Although Equilibria has been running successfully since 2016 on a very small scale as a non-profit organisation, Equilibria has been trading for the past 2 years as a charity and has proved to be a resounding success.

Our object is to advance the education of the public, in the subject of Islam as a religion of peace, tolerance and understanding.

What we do

At Equilibria, we recognise the importance of how lived experiences shape our understanding, therefore we have invested time and effort to develop a robust programme of visits to help foster a practical and exciting learning experience for students. Therefore we offer the following services:

Public benefit

Dehumanising or 'othering' people is the most powerful fertilizer of hate and division. Direct, personal human understanding is hatred's mortal enemy.

Dialogue enriches religious education, nurtures tolerance and builds bridges of understanding within our communities.

Equilibria uses dialogue in our works to:

Equilibria provides a local, professional and authentic way of helping our pupils and communities understand and learn about Islam as part of wider community cohesion.

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.

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee,

The trustees who served during the year and up to the date of signature of the financial statements were: Ahmed Al Ani

Alastair Ross (Retired 20 October 2024) Iyad Al Qudah Dr S Shubib

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

The Chair of the Trust is responsible for the supervision, management and direction of the trust under the advice and guidance of the trustees.

The trustees report was approved by the Board of Trustees.

.............................. .............................. Ahmed Al Ani Iyad Al Qudah trustees trustees

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

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2024

The trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EQUILIBRIA

I report to the trustees on my examination of the financial statements of Equilibria (the charity) for the year ended 31 July 2024.

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.

AMS Accountants Medical Ltd

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

Accountants

Floor 2 9 Portland Street Manchester M1 3BE

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income from:
Donations and legacies 3 6,017 8,734
Other trading activities 4 1,065 828
Total income 7,082 9,562
Expenditure on:
Charitable activities 5 7,712 9,191
Total expenditure 7,712 9,191
Net income/(expenditure) and movement in funds (630) 371
Reconciliation of funds:
Fund balances at 1 August 2023 5,647 5,276
Fund balances at 31 July 2024 5,017 5,647

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

BALANCE SHEET

AS AT 31 JULY 2024

2024
Notes
£
Current assets
Cash at bank and in hand
5,977
Creditors: amounts falling due within
one year
9
(960)
Net current assets
The funds of the charity
Unrestricted funds
The financial statements were approved by the trustees on .........................
..............................
..............................
Ahmed Al Ani
Iyad Al Qudah
trustees
trustees		 £
5,017
5,017
5,017		 2023
£
6,607
(960)		 £
5,647
5,647
5,647

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

Charity information

Equilibria is a charitable incorporated organisation. The registered address is Clarendon Dental Spa, 9 Woodhouse Square, Leeds, LS2 1AD.

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 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.

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.

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

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 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.

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.

1.7 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.

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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
2024 2023
£ £
Donations and gifts 6,017 8,734

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Non-charitable trading activities 1,065 828
5 Expenditure on charitable activities
Unrestricted Heading
Funds #ac982
2024 2023
£ £
Direct costs
Purchases 3,075 1,035
Insurance 231 205
Travel 285 62
Legal - 1,680
Teaching - 2,812
Events 3,161 2,437
Accountancy 960 960
7,712 9,191
Analysis by fund
Unrestricted funds 7,712 9,191

Draft Financial Statements at 21 October 2024 at 12:30:11 EQUILIBRIA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

6 Trustees

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

7 Employees

The company employed no people during the year.

8 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

9 Creditors: amounts falling due within one year

9
Creditors: amounts falling due within one year
Accruals and deferred income
10
Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
11
Cash generated from operations
(Deficit)/surpus for the year
Movements in working capital:
(Decrease)/increase in creditors
Cash (absorbed by)/generated from operations
12
Analysis of changes in net funds		 2024
£
960
2024
£
(630)
-
(630)		 2023
£
960
2023
£
371
960
1,331

The charity had no material debt during the year.