**Erdington Islamic Foundaton Trustees Report and Financial Statement for the year ended 31 March 2022** ## **Contents** **Reference and Administrative Information** **Structure, Management & Governance** **Objectives and Vision** **Challenges and Achievements** **Financial Statements** ## **Trustees Report** The trustees present their annual report and financial statements for the year ended 31 March 2022 and confirm they comply with the Charities Act as amended by the Charities Act 2006, the trust deed, and the Charities SORP (FRS102). The attached financial statements form part of this report. ## **Reference and Administratve Informaton** Charity Name: Erdington Islamic Foundation. Charity Registration Number: 1195410 Address: 15 High Street, Erdington Birmingham, B23 6RG ## **Board of Trustees** Mahmood Hussain Zahid Hussain Shazad Choudhry Syed Quadri Muhammed Kaiser Pandhair ## **Chief Executve Ofcer** Mahmood Hussain ## **Secretary** Zahid Hussain ## **Auditors** Morgan Reach, Hagley Rd, Birmingham ## **Bankers** HSBC Bank, Parade, Sutton Coldfield ## **Structure, Management & Governance** Erdington Islamic Foundation is constituted as a Charitable Incorporated Organisation, registered with the Charity Commission on 05 August 2021 under charity number 1195410. It is governed by a Deed of Trust last updated on 31 January 2022. ## **Organisatonal Structure** The Trustees are responsible for the general control and management of the charity. The Trustees give their time freely and receive no remuneration or any financial benefits. The Trustees meet on a weekly basis where possible, and are responsible for the decisions taken in relation to the day to day running of the Foundation and the activities provided by the Foundation. To enable the smooth running of the charity the Trustees divide management into ‘sub-groups’, which are set up for Finance, day to day management of the building and functions, who report back with their recommendations to the meeting of the Trustees. The Chief Executive Officer chairs the meetings and responsibility is delegated where necessary to the other Trustees on the Board. ## **Recruitment and Appointment of Trustees** Existing Trustees are responsible for the recruitment of new Trustees as and when required. Potential trustees are identified as those who regularly attend activities and functions and who are willing to volunteer their own time and help. Consideration is given to a person’s eligibility, competence, and skills in the selection process. Where necessary the Trustees will seek advice and opinions from responsible community members. ## **Inducton of new Trustees** Newly appointed Trustees are given a copy of the Trust Deed and are introduced into their role. Trustees are made aware of the scope of their responsibilities from the Foundations Aims and Activities and using guidance from the Charity Commission. ## **Use of Volunteers** Volunteers are an important part of the Foundation’s resources, and we encourage all of those involved in the Foundation to share their skills and knowledge with others. Volunteers and the Trustees give their time freely without any remuneration. ## **Risk Management** The Trustees address potential risks as they arise. Recognised risks are discussed when the Trustees meet and the Trustees are satisfied that arrangements are in place to manage these risks and rectify where possible, for example financial review and holding adequate insurance. External professional advice is sought when considered necessary. ## **Objectves and Vision** The objects of the charity are set out in the charity’s Trust Deed. We review these objectives to ensure that they reflect our aims in the community under the umbrella of our faith. Our Vision is to foster an outstanding community that inspires excellence in knowledge, personal development and awakens the spirit of service to others. A Community that contributes morally, spiritually, socially and economically to the wider society. Our primary aim is to provide a faith-based community facility which will be of use and benefit to all the inhabitants of Erdington. We are in the early stages of development. The facility will provide a community centre, prayer facility, community welfare and education. ## **Challenges and Achievements** ## **Our First year** Our biggest challenge has been the purchase of a disused public house, The Cross Keys, in the Erdington area of Birmingham which is the base from which the charity’s objectives will be carried out. The building was identified in June 2021 by the founding Trust members and formed the vision for the foundation. A non-refundable deposit was paid and a timescale was fixed for completion of the purchase. An appeal went out to the wider community. The Foundation was overwhelmed at the level of support that was shown and funding was raised in the form of donations and non-interest bearing loans. Gearing for the purchase was apprx. 60% in loan finance and 40% in donations. The purchase was completed in December 2021 and this achievement served to boost confidence and support for the Foundation. The first phase of the Foundation’s challenge is complete. 31 March 2022 a loan finance balance was outstanding as stated in the accounts. The Trust reviews the timescale for reduction of this balance regularly and takes the opportunity to clear liabilities whenever possible. This has been made possible with the support of members of the local and wider community. ## **Current Challenges** It became obvious that the building had been allowed to fall into disrepair and one of the immediate challenges was to bring it into usable condition. These works included roof repairs, heating system repairs, complete cleaning of the building and various internal refurbishment works. Teams were drawn up made up of Trustees and Volunteers with the appropriate skills and knowledge to bring. Willingness to participate has been superb. Where necessary external professional services have been contracted and many works have already been carried out to make the building usable. Due regard has been given to the local historic status of the building and original features in the building are being preserved. ## **Future Challenges** An application for Change of Use is in process and the Trust is confident that the Foundation will be successful in making its vision a reality. ## **Connecton with the Community** The foundation is engaged with community members daily and a strong community spirit is being fostered. Popular activities include the formation of a Cycling Club and Team, Trekking in the countryside and encouragement of appreciating local wild spaces such as Sutton Park, New Hall Valley and other local open spaces. In house activities include table tennis, keep fit and personal learning activities. A focus is on physical, mental and spiritual wellbeing. ## **Financial Statements.** Financial Statements for the period to 31 March 2022 are annexed and form part of this report. ## **Conclusion** The Board is extremely pleased with the achievements made in its first reporting period. The Trust looks forward to the coming years for the Foundation and is confident that its vision will come to fruition. The Foundation thanks the community for its ongoing enthusiastic support. Signed M Hussain Chairman Signed Z Hussain Secretary REGISTERED COMPAP4Y NUMBER: and Wales) REGISTERED CHAR￿ P4UMBER: 119S110 i) Tl D i AIICJ O?l TO 11 AU ETdin ICF Morgan Retych C¢fftiCied ACCO￿18n1$ Mur8on Rcaeh Flousc 13() FlJgl¢%' Road Bimiinolwn rcii Midlands B169NX lion CONTFKt8 nr THF. TrINANCIAL ST . l)eFiod i Re￿rt of the TTUSlees ststemcnl ol Fin8rKial Actii'itiC5 Bolllnt¢ Sl*ct Noies lo th¢ Fi￿￿¢1￿1 SthiemLmts Dctsiled SbLieiTLenl of Filw￿l￿1 Ikcu%iIi¢S ic FoutKla PQRT OF TH . r l]K. PL Js'ri--F.S The rn]slLY5 arc di￿clor5 nf I1￿ clmrih. foi thr of t1￿. Companies Ael ?(M)6. present their i¢port iiith thc riNncial slalentcnis of thL charili. for i August ?O?l io 11 March 2012. T￿ In￿teS hdi'L tsdopiLXt tk. proii%ions of A¢¢vun¢ing Reponing b!" Chatitics.. Sthi¢men¢ of Rccommcjmlcd l¥actsec appliublc lo eh3n"tiLS pfepELrinb' thcir aceouni% in occordance iiith thL' Financial Reponil￿ Stsfyjard app]i￿bIL in UK and Rrpublic of IrLland 11-'RS 10?) IcflcclLI'C l JAn￿o- ?019}. INCORPORA TION Thc chTrritsble compam. I￿Or￿￿￿ted on i ?O•l. STRUCTURE. GOVERNANCE AND MANACEMENr Goi'crning document ThL' churiti" 18 controllLd bi. its goi'erning d￿￿nen( g ded ocintsL 8JyI conslilutes n limiiryj comp&n%'. l¥miird bi" suar&nl¢c. as dc1]T￿ bi" the Companics Act ?(X)6. REFERENCE AND ADMIPIJSTRATIVE DrfAILS R¢gislered CompADI' Dumbcr IL.n818nd and Walcyl R¢g15tcrcd Charih- number 1195410 Relli5tercd oifire l i Fligh Strttl 'Tdinglon 13tmingham F423 CJll(i Tr￿st&.t5 S M.$ Qwdri I"ruslce CIM)udhrn' Tn]slr¢ M IIELS￿l￿ Chair Z FI￿￿5alA TnL%Icc MK H P￿alE(appOInt￿ 31.1 ?21 Approi"cd bi. onler orth¢ 0fts￿￿teeS on 18 tkccmbcr ?O?l aThl 5igncd on its bch&ifbi': Page I IIYDEPF.INDF.INT EX,l.Ill%I'ER'S RF.PORTTO THE TRUSTF.ES OF F.RDlINGTONI ISLAIIIC FOU)1 D,ITIOIN Independ¢nt exarninevs report lo th¢ tru5tee5 of ErdingloD Islamic Foundation I'the Compan>.) I report to ihe charity tr￿1¢¢$ on m). ¢xamination of lh¢ accounts of the Company for the period 5 AugiLSi 2021 to 31 March 2022. Responsibilities and basis of report As tlie cl)2fiLy'S trnstees of ilie Cornpan). laThJ also its directors for the purposes of company laivl you re5tx)nsiblc for the preparaiion of ihe acco1￿￿ in accordan¢¢ I￿¢h the r¢quircrnents of ihe Cornpanies Act 2006 ('the ?006 Aci'l. Flaving sali5fLed m%'self Ihai the accounts of the Company ar¢ not required to be audited und¢r Part 16 ofihc 2006 Act atld are eligibl¢ for independeni exatntnaiton. I rew>rt in respccl of m). ¢xarnination of }"our chariiy's accounts as Carried oiit under SeciLOn 145 of the Charities 2lci ?01 I I'ihe ?01 l Act'l. In ¢anying out mv examination I ha%'e followed the Direc¢ions given by the Charity. Commtssion un¢kr S¢¢iioN 145{5) {b) of the 7011 .4ct. Independent ex#miner'$ 512temtn¢ J hav¢ completed my examination. l confinn that no matlers have come ￿ my attention in connection ivith the examination giving mc cause io belieye.. accounting re￿r￿S were noi kept in respect of the Company a5 required by Section 386 of ihe 2006 Act,. or the accoiints do noi accord ￿.1¢h those records- or th¢ accounts do noi comply M'ith ihe accouniing rtquirements of Section 396 of the 2006 Act other than any Tequirement ihai the a¢¢ounts give a irue and fair i't¢iv ii.hich is noi a n￿Ller eonsid¢ied ￿ pan of an indep¢ndtnt exaininaiion: or th¢ accounts have not been preparcd in ac¢ordance the meilJ(xls and principles of thc Staiemcni of Recommended Praetice for accounLing and reporting b). chariiies (applicable to charities preparing their accounts in accord2nc¢ with ihe Financial Reponing Standard applicable in ihe UK and Republic of Ireland (FRS 10?)}. I have no eon¢¢rn5 and have Come across no ￿h¢r matters in ¢onnection ￿7th ihe examination to Mthi¢h attentÈon should be drnwn in ihis report in order to eJEabl¢ a proper uThlerstanding of the accounts to be reached. Dr Kall￿an Shaikh. Chartered Certified AccoLWW The AssociatÈon of Chan¢r¢d Certtfied Accountants morga￿ Reaeh Chart¢r¢d Certified A¢countanLS Morgan Reacli House 136 Flagley Road Birningham Wesi Ilqidlands B169NX Dale.. Page 2 ERDlINGTOI% ISLAIIIC FOIIN'D,KTIOIN STATEI%lE.YT OF FlIN'A)CIAL,IcfiviTIES lor the Period i .lu U5t 2021 to 31 ,112reh 702? Unrestricte fund N'oies IINCONIE AIND ENI DOII'IIETr4TS FROI Donaiions and legacies 198.061 EXPENDITURE ON Raisin¥ fiind5 15.147 NET INCOIME 18?914 TOTAL FUTrqDS CklRRIED FORIVARD 182,914 The noies forrn part ofthese financial Stsiements Page 3 F.RDIYI GTONI ISLAIIIC FOlJTIND,ITION BALANI CE SHEET 31 llarch 2022 Unre51rie¢e fund FIXED ASSETS Tangibl¢ as5eis 465.000 CURREIYT,ISSETS Cath at ballk and Én harml 23.214 CREDITORS Aniounis falling due i%ithin one year 1208.3001 NET CURREiYf ASSETS (185.086) TOTtlL.ISSETS LESS CURREINT LlèlBILITIES ?79.914 CREDITORS Anioutiis fttlling due after mor¢ than one Jear (97,000) I ET ASSETS 18?914 FUNDS Unresirt¢ied funds 18?.914 TOTAL FUJNDS 182,914 The ¢hari¢able company is eoiiilcd to e.xemption from audii under Section 477 of ihe CornpanÉ¢s Act 2006 for Ihe period ended 31 March 20?2. The members have not requir¢d ihe company io obtain an audit of its financial Sthicments for the perÈ(xl ended 31 March 2022 in a¢cordante S¢¢iion 476 of ihe Cowllpanies Aa ?006. The Iruslees acknowledge iheir responsibilities for (a) ensuring tliat the eharithble company keeps accouniing records thai cOr¥￿1Y with Seeiion$ 386 and 387 of die CompJni¢s Aci 2006 attd preparing financial slaletnents ivhich give a Lrue and faÉr vie1% of ihe state of affairs of the charitable cojnpany as at ihe end of each finaneial year and of its suwplus or defi¢ii for each finan¢io1 year in accordance lviih the requirements of Se¢iions 394 and 395 and ibhich otheniise cowl}' i%ith the rcquiremcnts of the Companie5 Act 7006 relating to financial StsleMen￿ so far as applieabl¢ io the charitable ¢OTnpany. Ib) These finallcial siaiemcnts have been prepared in accordance ￿1th the provision5 appli¢able io ch&ritabl¢ Companies subjeei io the small companies Fegirne. Tjie financial statements were approved by ihe Board of TnIsL¢￿ and authorised for issue on 18 December 20?3 and were signed on its behalf b).: Trustee The rrt)tes forni part ofthese financial 5wements Pa8¢ 4 ERDINI GTOIN ISLAIIIC FOLNI DATIOIY NOTF.S TO THE FI1%￿￿rIAL sr.4TEIIEN'TS for the Period 5,lu ust 2021 10 31 llarth ?022 ACCOUNTINI C POLICIES Basis of preparing the fin#nci4115tatem¢nts Tlie financtal sial¢ments of th¢ ¢harilable compan).. i%hich is a publtc benefit entity under FRS 102. have bc¢n prepared in a¢cordanee ￿'1th ihc Charities SORP {FRS 1021 'Ac¢ounlin8 and Reportino by Charities.. Siaiemeni of R￿omIne￿￿ed Pracliee applicable io charitics prepaTing tlieir accounls in aecordanre iviih th¢ Finaneial Reporting Standard applicable in ihe UK and RepiiblÈc of Ireland IFRS 10?) ItlTee(iv¢ l January 20191., Financtal R¢porting Siandaid 102 The Financial Reptsrting Sthndard applieable in the UK and Republi¢ of Ireland, and ihe Conipanies Act ?006. The fInW￿l01 Slalements hake been prepared under th¢ hi51orical cost convention. All inconie 15 recognis¢d in the SiaLen*nt of Financial Actii'iiies once ihe ¢harit}' has tntitlcment to ihe funds. it 15 probobl¢ ihat ihc income ts.ill be receti'ed and the amount can be measured reliably. Exp*Dditure Liabilities are recognis¢d a5 eipenditwe a5 500n ￿ there is a legal or construciiv¢ obligaiion committing I ¢harÉty to ihal ¢xpendilure. 11 is probable ihal a tra￿￿fer of e¢onomic ben¢filS i¥ill be requiTcd in seiilcment and tlie amouni of ihc oblieaiion can be measured reltablv. Expendiiurc is arcoujiied for on an accnjals basis and has been classified under headings thai a_￿regate all cost relalrd lo ilje cai¢&¥ory. Il'liere ¢osts canno¢ be directly attributed LI) pllrticular headings ihey hai'e been allocaied io *iiN'ities on a basis consisi¢ni Mitli the use of resources. Tangible fjxed assets Depreciation is pro￿.ided at the follo1￿n8 annual rJtcs in order io ￿TIle off ¢a¢h a5sel o%'er ils ¢Stimaled useful Taxation The charity is e¥empi from corporation on its cha¥itable activiii¢s. Fund 4ccounting Unre51ricied funds can be us¢d in aErordance ivith the charitsbl¢ objtttives at the discrction of ihe trustees. Restri¢ced fitnds can onl). be u5¢d for particular resiricted pU￿oStS i%ithtn the objects of the charity. Rcsirictions arise Specified by the donor or ￿hen fv[￿s ar¢ rnised for particular re51rtcled pwpose5. Furt]itr explanalion of ihe nature and pwM)se of each fund is in¢lvded in the noles 10 the financial sthtements. TRUSTEES. REIllUkNERATIOW& D BEYI EFrrs Th¢r¢ w'ere no iru$1¢¢5' r¢muneraiion or other benefits for the peri(xl ended il li I8￿h 2022. Trn$t¢C5' txpenses There i%ere no trVSl¢¢s' erypenses paid for the period ended 31 Mar¢h ?02? Page 5 continu¢d... ERDINI C.TO%I ISLAIIIC FOUNI DATIOI OTES TO THE FINANCIAL sr,ITEIIENTS- rontinued for the Period 5 .lu 1151 2021 fts 31 Ilarch 2022 TANGIBLE FIXED ASSETS Freehold propety COST Additions 465.000 NET BOOK I'ALUE At 31 Illarch 2022 465.000 CREDITORS: AML OUNI TS FALLIING DUE II'ITHINI OJ%E YEAR (hher loan5-￿ithIn ihan l year 208.300 CREDITORS: AIMOUIYTS FALLI￿G DUE AFfER IllORE TH*li%' OIN'E YEAR Other loan5 (see noce 6) 97,000 LOAIYS An analysis of the rnaturiiy ofioans is giyen below. Amounts falling betiveen one ar￿ tivo years: Loans- mole than l year 97,000 IOVEMEYI T IN FUNDS movemeni in fi￿dS At 31.3.22 Unrestricted futhds General f￿nd 182.914 182,914 TOTAL FUNDS 182,914 182,914 Nel movement in fvnd5. included in ¢he above are as follo1%5: lrtorning resour¢cs Re50ure¢s expended Movement in funds Unre5tritt¢d funds General fund 198,061 {15.147) 182.914 TOTAL FUNDS 198.061 (15.147} 18?914 Page 6 continu¢d... ERDINC.TONI ISL%IIIC FOUIND,ITIOYI NOTES TO THF. FlIN'AINCI,IL ST..ITEIIEINTS- ¢ontTnued for tht Period 5 A 1151 20•1 10 31 lIa￿h 202? RELATED PARTY DISCLOSURES The¥e i%tre no relaied party traiiwiÈon5 for th¢ period end¢d 31 Ilareh ?02? Page 7 ERDINI CTOIN ISLAIIIC FOUI%D,ITIOIY DETAII.FD STATE,IIEINT OF FI,Y,INCI,IL AcfiviTIES rnr the Period 5.% ust 20?1 to 31 Ilarcb 2022 INCOI%lE AND ENDOIVII IEiYrs Donations aDd Itgaeies Donations 198.061 Total incoming re5011rces 198.061 EXPEINDITURE Support ¢05t5 Ilanagemetst In5ufdnc¢ Light and li¢ai RLpair and r¢neivals Legal &. professional expense 910 796 11.668 1.687 15.061 Finan¢e Bank charges 86 Total resoLLr¢¢s ¢xp¢nded 15.147 Net incorne 182.914 This page does Th)1 fomb part of the stswiory finan¢ial sthtements Page 8 IINDEPF.NI DESI T EX.IlllI%'ER'S REPORT TO THE TRUSTEES OF F.RDlINGTONI ISIAIIIC FOUINDèlTION Independen¢ ¢xamitt¢V5 report to tbt tr115tee5 of ErdingloD 151amic Foundatio￿ I'ibe Compan).) I report to the charity insie¢s on my ¢xamina¢ion of ihe aceouthts of the Company for the period 5 AUg￿l 2021 to 31 Nlarch 2022. Responsibilities athd basis of r¢port A5 Ilie cliarit)"s inlsiees of the Coinp2n)' (aTKI a150 its dirttiots for the purposes of¢oJnpany laiv) >'ou are responsible for the prepllfdtion of the accounts in a¢¢ordance ivith the requirements of the Companies Act 2￿6 {'the ?006 A¢t'). Having satisfied myself thai lh¢ a¢¢ounts of the Compan). are noi required ¢0 bc audiied under Part 16 of ihe 2006 Act and are eligible for independenl e.xaminaiioN I report in respea tsfm). e¥aminaiion of)"our charity's accounts as carried out linder Section 145 of ihe Charilies Act ?01 I Ilhe 2011 Aci'}. In rarr)'ing oui my ¢xominatkon I have followed Ihe Directions &iiven by the Charity Commi$5ion under Se¢iion 145(51 (b) of the ?01 l Act. Indepcndent examiner's stat¢ment I have complcted m). ex3mit*aiion. I confkrni thai no matters have Come to my attention in Connection ivith Ihe cxaminaiion giving mc rause to believe.. accounting Tecords were not kept in rtspect of the C¢)fflpany as required b). Section 386 of ihe 2006 A¢t: or Ihe accoiints do not a¢cord with those records- or the accounis do not comply ￿7th the accounting r¢quir¢ments of Seciion 396 of the 2006 A¢t oiher than gny requirement ihat ihe accounts gil'e o iwe and fair vieiv ￿h1¢h is not a matter considered a5 part of an Èndependent examination.. or the a¢LoutLts have not b¢¢n preparcd in accordan¢c i¥ith the mcihods and principles of ihe Statement of Recommended Pra¢ii¢e for accowiiing and reporting bi. ¢hori1i¢s (applicable io ehantics preparins ilieir attounts in accordance w'ith the Financial R￿￿rtIng Stsndard applicable in th¢ UK and Republic of Ireland IFRS 10211. I ha%'e no coneerns and hai'¢ come across no other T￿tter5 in conn¢¢iion wÉth the examinaiion to wljich ati¢niion should be drawn in this report in order io enable a prO￿r widetstatKling of the accounts to be reach¢d. Dr Kamrart Shaikh. Chartered Cenified Accountants The Asswiaiion of Chartered Certified A¢couniants lorgan Reach Chartered Certified Accountants MorgaTr Reach House 136 1 lagley Road Birniithgham West Nlidlands B169YL X Date.. t* im IJ&ccThY/&&< 2oLI