AL MUNTADA AL ISLAMI TRUST
ANNUAL TRUSTEES REPORT
DECEMBER 31, 2021
7 BRIDGES PLACE LONDON SW6 4HW
Charity Reg. No. 293355
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Contents
1. Forward............................................................................................ 2 2. Letter from the Chairman ............................................................... 3 3. Objectives, Mission, Vision & values .......................................... 4 4. Structure, governance and management ................................... 5 5. Principal risks and uncertainties ................................................. 7
6. preformance and activities ........................................................... 8 7. Financial review ........................................................................... 21 8. External auditor’s report ................................................................ 22 9. Financial Statements ................................................................... 24
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Forward
The Board trustees are pleased to present this Annual Report and financial statements for Al Muntada Al Islami Trust for the period from 1[st] January 2021 to 31[st] December 2021.
With the continuation of the Covid-19 pandemic crisis it remains a challenge for many organisations such as ours to operate in a normal mode. This did have an impact on the way we functioned in line with Government lockdown measures that were imposed and followed. Namely generating sufficient funds to help support our projects were hard to come by although strategies had been implemented to ease some of these difficulties.
With the gradual roll out of the vaccination programme we are optimistic that things will start to get better and with the oncoming easing of restrictions which had affected so many organisations to date.
On a happier note, with the government’s approval with the opening of places of worship earlier in the year, prayers in the month of Ramadan were successfully performed this year allowing congregations to assemble but observing strict social distancing rules and using PPE. This was indeed a great relief for everyone being able to come back to the centre for collective worship during this special time of the year.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Letter from The Chairman
In somewhat a sombre light, I present the Annual Report for Al Muntada Al Islami Trust for the period 1[st] January to 31 December 2021. This year remained a particularly challenging year again due to lack of funding as the economic effect of Covid-19 on the community. The Trust used its limited available funds carefully and remained focused on its objectives of delivering the vital services to those in need. Progress is being made to improve safety, quality and sustainability of those services provided by the Trust through our partners.
The Trust remains in close contact with its local partners at the Hammersmith & Fulham Council, third sector organisations, police, and others to ensure that we play a regular active role in discussions that affect our local community. Credit for this goes to all our staff and volunteers who have worked tirelessly making this possible due to their unfettered commitment and support during these very difficult times. My thanks and deep appreciation out to them all. I also wish to express my sincere thanks to our body of Trustees both past and present, for their continued guidance in shaping to help develop the Trust’s future priorities and services that are so important to the community we have privilege to serve.
During the earlier part of the year regular weekly meetings were had with management through Zoom meetings (which had since become the norm at least for most meetings.)
Taking things very seriously and following advice from the Hammersmith & Fulham council the centre introduced a booking in system for track & trace and regulating the number of worshippers attending Friday Jumuah’s and Eid prayers. Most people appreciated this and accepted the cautious approach we took in managing the situation.
Since the gradual easing of restrictions during the summer the centre had begun to resume its normal operation of services provided to the community much to everyone’s relief. However, towards the end of this year we now hear about the emergence of the fast-spreading Omicron coronavirus variant appearing in South Africa and has already reached our shores in the UK. This becomes an ever more worrying concern for our community and whether measures are to be implemented restricting access to places of worship.
In November 2021, the Board of Trustees were physically able to have its first face to face AGM since the lockdown was lifted. All existing projects were reviewed and evaluated. For some time now the Board has been exploring how the centre can be best used to serve its purposes and challenges that lie ahead for the forthcoming years in terms of facilities and the role it can play in helping to reduce its carbon footprint. Energy efficiency has become a key issue in view of the impending climate change that the world is facing and the effect it will have on generations to come. In the coming years it is hoped that material modifications and development can bring about a practical and healthy way of being more sustainable for our future community needs.
Chairman, Saeed Al-Ghadi
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Vision Statement
to be a leading Islamic Centre and a role model charity in delivering educational and Da’wah activities.
Mission Statement
promoting excellence in providing educational and Da’wah activities
Objectives
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The advancement of the Islamic religion in accordance with the Quran and the Sunnah
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To relieve poverty within the Muslim community;
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To advance religious education of Muslims;
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To provide, or assist in the provision of, facilities for recreation or other leisure- time occupation activities, in the interest of social welfare.
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To provide the necessary services for other charities such as HR, IT and Financial Services.
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To provide Hajj and Umrah services for the Muslim community in the UK.
Values
These traits express the belief and define the culture of the organization. We remain guided by the timeless values and teachings provided by the revelations contained within the Qur’an and prophetic example.
These values are upheld by three value pillars:
Excellence:
Our actions in serving the community are marked by excellence in our operations and conduct, which are deserving of the people we serve.
Sincerity:
In responding to the need of the community, our efforts are driven by sincerity to God and the need to fulfil our obligations to humanity.
Social Justice :
Our work is founded on providing the local community and neighbours a place to serve their needs and treated with dignity and respect.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Background
Al-Muntada Al-Islami Trust was established in 1986 as an independent organisation catering for the UK Muslim Community. During the last 35 years the Trust has expanded its work on a global level with the aim of running educational programmes, alleviating poverty-both its causes and symptoms, clarifying misconceptions about Islam and Muslims and generally to facilitate the needs of different communities through local initiatives.
STRUCTURE, GOVERNANCE AND MANAGEMENT
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Board of
Trustees
Operations
Manager
Community Facilities & Finance & Compliance & Hajj & Umrah
Human Resources
Service Maintenance Planning Quality Assurance Department
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Al Muntada Al Islami Trust is a registered charity under the Laws of England & Wales regulated by the Charity Commission. The Trust was founded in 1985 and became formally registered with the Charity Commission in 1986.
All members of the board are appointed and are committed to serving the Trust by fulfilling their roles as Trustees in keeping with its Trust Deed.
Currently serving trustees are:
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Dr Saeed Al-Ghadi (Chairman)
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Mr Salah Taifoor
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Mr Abdullah Al-Bagieh
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Mr Abdul Hakeem Montague
Induction of trustees
All our trustees are volunteers. They are chosen because they have the diverse range of skills, knowledge, and experience that Al Muntada Al Islami Trust needs to respond to key challenges. Stakeholders and partners may nominate trustees, and sometimes we will make a personal approach to potential candidates.
To ensure that the charity benefits from a professional and dynamic board, trustees are provided with a comprehensive induction and on-going training in new or emerging areas of responsibility. New trustees receive a full overview of the strategic and operational functions, as well as a welcome pack which includes a copy of Trust’s Constitution, financial statements, Board Meeting Minutes and Charity Commission guidance “The Essential Trustee.” Trustees play a significant role in the running of the charity and are always expected to keep up to date in the charity world this also includes keep abreast of “Charity Commission News” and other updates as and when they appear on the commission’s website. They are also encouraged to help identify any gaps in their training needs. The Director also keeps trustees up to date with changes in regulatory standards and training possibilities.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
LEGAL & ADMINISTRATIVE INFORMATION
| Charity Name | Al Muntada Al Islami Trust |
|---|---|
| Charity Number | Charity No: 293355 |
| Registered address | 7 Bridges Place London SW6 4HW |
| Accountant’s name and address | KWSR & Co 136 Merton High Street London SW19 1BA |
| Solicitor’s name and address | Khalid Sofi Lee Bolton Monier-Williams 1 The Sanctuary Westminster London SW1P 3JT |
| Banker’s name and address | Al-Rayan Bank 77-79 Edgware Road London W2 2HZ |
Risk Management
The Trustees have a duty to identify and review the risks to which the charity is exposed to and to ensure appropriate controls are in place to provide to provide reasonable assurance against fraud and error. The Trustees actively review the major risk to which Al Muntada Al Islami Trust is exposed to on a regular basis, those related to its operations and finances. There is a Risk Register system in place to review these risks and adequate steps are being taken to mitigate these risks.
Principal risk and mitigation:
COVID-19:
The pandemic is turning from a health crisis to a worldwide recession. This presents risks to our funding, to the health and wellbeing of our staff, to opportunities for effective collaboration, and, most importantly, to those communities who suffer the most extreme poverty and who are the most likely to be affected by political, economic and social threats.
Mitigations responses: government guidelines are applied, staff made aware and trained on how to provide a safe place, clean, signs put all around the building, sanitising stations and face cover provided.
Accountability to the people we serve:
There is a risk that the communities in whose name we act are excluded from influencing or benefiting from our programmes or are harmed or negatively impacted by them.
Mitigations responses: Our values and code of conduct are shared with partners and communities so that they are aware of the behaviours that they can expect from anyone representing Al-Muntada
Regulatory compliance
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Failure to keep abreast of national and local laws and requirements could compromise our ability to continue working and serve our beneficiaries.
Failure to demonstrate compliance with the regulatory framework, as it evolves, could damage our reputation and result in fines and other penalties.
- Mitigation responses: Our independent compliance professionals are responsible for ensuring compliance with national and local requirements, including registration, tax compliance and statutory reporting. Where required, external audits are performed.
Public benefit statement
It is estimated that there are around three million Muslims living in the United Kingdom, many of whom have been born and raised in the U.K. Al Muntada Al Islami Trust manages to help provide much needed essential services to the diverse community almost every day of the year. We have around 2500 people from all walks of life attending the centre each week to fulfil their religious obligation and find peace of heart and tranquillity which many of whom come from socially, emotionally, and economically disadvantaged backgrounds.
Plans are being studied as to how the Trust can modernise and make physical improvements to the centre for visitors. The centre is a very old building, in part pre-war and with later 1960’s additions. However, the Trust continues to consult with professionals to see where changes and adaptations could be made to improve accessibility for disabled users of the centre. It is also hoped that redesigning parts of the building will make it more energy efficient and help reduce the carbon footprint.
Security has been a point of focus in the last few years due increased reported incidents of hate crime and Islamophobia in London. As we hear more and more reports about terrorist attacks taking place and also Islamic centres becoming a target too for those extremists who wish to cause harm wherever they strike. The Trustees and management have regularly reviewed the security measures to ensure our staff, volunteers’ visitors and neighbours are safe from harm.
The centre’s philosophy is to engage and enhance good community relations stands good testament to being an open place for outreach where all can benefit particularly those in need of support. Excellent community relations continue to thrive with the local police and residents which resulted in developing a common understanding over the past 30 years much to the centre’s management.
Trusts’ activities focus on the following main areas:
Promoting education
To promote Islamic educational services, Islamic awareness and to address misconceptions while aiming to develop and preserve the Muslim identity.
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To raise the standard of Islamic education in the UK through running independent Muslim school.
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To provide access to Islamic education for all ages in an Islamic environment through lectures, seminars, and conferences.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
- To instil Islamic values and principles in our children enabling them to attain the highest level of morality though organising youth awareness programmes and activities.
Promoting faith (Dawah)
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To direct Muslims towards Islam and to invite non-Muslims to have a better understanding of Islam and Muslims.
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To provide practical solutions to various problems and issues experienced by Muslims living in the UK through counselling and marriage and relationships and mediation.
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To develop and nurture Muslim youth to attain their full potential through offering volunteering and training opportunities.
Local community
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Creating a strong Muslim community that engages cohesively with the wider society.
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Provide a full range of community services both locally and nationally.
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Engage in dialogue with government, Muslim, and non-Muslim organisations in forwarding the Muslim perspective in all relevant issues to create a more just and tolerant society.
Creation of Connections of Hope Foundation
Connections of Hope Foundation has been formed as a new separate registered charity and is being developed to oversee regulatory and compliance issues that affect the Trust and its associated organisations. This has now been permitted to take over the role of the Trust’s former DCD department.
Hajj and Umrah Services (Pilgrimages)
Since the outbreak of the Covid-19 pandemic in 2020, again it has not been possible to facilitate this year’s Hajj pilgrimage. We were notified by the Ministry of Hajj authorities that it is suspended for another year for outside organisations. This continues to cause a great deal of disappointment to those in our community who were hoping/expecting to perform the rites of Hajj. May Allah (swt) accept all the good intentions of carrying out this duty. We ask them to remain patient until the present restrictions are lifted regarding travel. We respect and accept that safety and well-being of all pilgrims must come first in any event. We are hopeful that from early next year our launch of an Umrah travel programme will be permitted and then later followed by our Hajj programme.
Performing Hajj is an obligatory duty upon every Muslim adult, male and female, whose health and means permit. Al Muntada Al Islami Trust has for the last 2 decades through its Hajj Department been assisting UK Muslims an opportunity to fulfil their most fundamental religious obligation that constitutes one of the five pillars of Islam. The department offers value for money (Umrah) and Hajj package service that attracts more pilgrims every year. This is evident from the overwhelming positive response and feedbacks we have had from participants over the years who put their trust and confidence on us. We are fully conscious of the added responsibility that comes with that trust and are committed to do even better to improve the service.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Al-Muntada Travel is proud to be associated with this special spiritual event, it has offered Umrah and Hajj packages with reliability and honesty. The overwhelming response it has met with is reflective of the trust and confidence reposed in that customers have recommended to others. We are fully conscious of the added responsibility coming with that trust.
Community Engagement
Since the lockdown measures were implemented all community engagements have been held virtually either through Zoom or Teams aps. However, at our request we had a few physical visits from H&F Environment department to help and assist us with some local issues. They have been very supportive in responding to our needs.
The Trust in its capacity as a locally respected organisation actively participates in supporting and improving the borough’s initiative of community engagement. A significant amount of time is invested in this as the Trust is a fervent believer in participating and developing good community relations where it feels it can bring about positive changes to society at large. The Trust continues to strive in this since the emergence of the Community Relationship Group and even before that in the early pioneering days of community cohesion.
Members of the Trust regularly continued to participate in monthly council meetings with other local organisations discussing local issues and needs affecting communities, meeting agencies providing support, feeding responses to central government about community concerns, providing community updates, local initiatives and progress reports that take place virtually.
H&F Faith Forum
Like most other communities many in our community have been affected by the outbreak of Corona virus in the UK in some way or another through family members, relatives or friends being infected by this spreading pandemic. It has made things very difficult indeed and taken life right out of the norm in how we need to conduct ourselves. The matter has been further complicated by the way it has led to peoples’ mental health particularly with the young. There have been an increasing number of reports through academia and media highlighting the impact and risks the lockdowns continue to have. The major problem of people feeling isolated and out of close contact with family and friends. Even with the unnatural norms of life with restrictions through social distancing rules like going out to visit socially, shopping and work.
During this time the Trust has been working closely with the local authority to mitigate the risk measures to overcome some of the difficulties experienced by communities.
The other issues are of peoples’ perceptions which are also having an effect the mind sets of many through the insurgence of social media taking centre play. There is an abundant form of messages being pumped out distorting the facts in regards to taking up vaccines. Much of this is confusing about what really is happening and appears to have a significant impact on people from BAME backgrounds. Unfortunately, this has led to people taking serious risks about their own health and that of others by not being vaccinated.
The Trust has continued to engage with the Hammersmith & Fulham Communities Faith Forum since the time it was first established. Helping to take the pulse of the local Muslim community, taking stock of concerns through regular discussions and updates, and sharing information of good practice with other faith groups and council leaders.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Safer Neighbourhood Ward Panel
As a major community organisation, which represents the interests of the local Muslim population the Trust plays an important part in engaging with the local Town Ward Safer Neighbourhood team, which has been running for many years. The purpose is to monitor the level of crime in the ward, discuss issues about nuisance that affecting the local neighbourhood and local policing matters.
The Trust is also concerned about the general wellbeing of the community and the safety of its local worshippers. The centre promotes the local Town Safer neighbourhood team of officers that patrol the streets and regularly encourage the drop in touch base commitments that they provide. A fluid relationship has been developed over many years through events and contacts with senior and local serving officers.
Since the lockdown we receive regular updates from our local neighbourly contact Annabel Cottrell who endeavours to keep all members up to date with issues of concern. We also obtain news feeds from our local BCU Commander Chief Superintendent Helen Harper on any serious issues that may affect the community.
Zakaat
Zakat is one of the Five Pillars of Islam – one of the foundations on which the rest of the religion can grow, both collectively and individually. We believe that Zakat strengthens the faith and character of the individual and build up the collective commitment and contribution of those who believe. We believe it provides foundation to flourish as a real commitment to our creator that inspires us to strive for prosperity, harmony, and justice for all.
We, at Al Muntada Trust, understand the sacred importance of Zakat and know who is eligible to receiving it according to the Quran and Sunnah. We also believe in the importance of looking after the needy in the wider community, irrespective of faith or origin.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Events / Achievements of the year
After consultation with the local authority, it was agreed to re-open the centre in line with government recommendations and with all due consideration of safety precautions and a risk managed assessment. Measures were put in place with the display of posters and banners of dos and don’ts, we ensured that PPE was made available to all those who need it and including disposable prayer mats for anyone who attends. A thorough cleansing and redecoration of the prayer hall areas had to be carried out prior to opening for everyone’s safety and wellbeing.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Worshippers queuing up for Friday Jumuah Prayers
April 21, cleaning masjid in preparation for Ramadan
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
April 21, cleaning wudu area in preparation for Ramadan
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
April 21, cleaning masjid in preparation for Ramadan
Unfortunately, with the onset of the pandemic the Trust took the difficult decision of making some of its staff redundant due to the financial impact of the Covid-19 virus. Ways were studied in which money could be saved in reducing costs and expenditure to remain viable.
Staff Training
Staff training was delivered by the chair of trustees, Saeed Al Ghadi, who ran a workshop on “How to Develop Quality Standards”. This covered a range of topics: Organisational learning cycle, benefits of Quality in key areas from planning, governance, leadership & management, user central services, managing people and learning & development with a focus on listening, observation, reflection, teamwork, monitoring & evaluation.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Reunion
A brief reunion took place in Fulham with the Trust’s former Administration Manager, Dr. Adel Daaboul, with a few former colleagues who served during the 80s and 90s.
Dr Hamze Luban Visit
In August one of our community elders’, Dr Luban, honoured us by paying us a visit on a Friday Jumuah prayer. Unfortunately, since his road accident in Fulham a few years ago he lives in a care home.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
It proved to be a very emotional time for him and many in our community who know him well from when he used to attend prayers at the centre. As a dedicated former General Practitioner, he served the community well in his selfless approach to treating patients.
Sheltered Home Visits
Occasional visits are made to frail members in our community who are physically less able to get about due to their age and medical conditions. A visit in September was made to Br. Jamil (James) Pasqual of 98 years of age. A visit was also made in December
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
ij 17 Al-MutttadaAklslaml Trusi anttual report and financlal siatemenis 2021
Fifty Plus Club
The Trust helped support a one-day trip to Margate for the elders in our community in September, it served as an opportunity for them to get together after the long period of Covid lockdown.
The group left the centre at 9.00 am and arrived at Margate promenade at around 11.00 am. It was a fine day, and some took the opportunity to have a swim along with other beach activities.
More programmes and activities are expected to be delivered in 2022 to help improve our contact with senior members of our community.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Remembrance Sunday 14 November 2021
Our Trustee, Abdul Hakeem Montague, representing the Muslim Community in Fulham took part in this year’s Remembrance Sunday parade with Hammersmith & Fulham Council leaders. Many Muslim soldiers have served, fought, and died during the world wars whilst serving the United Kingdom forces.
Credit - Matt Grayson
Plans for future periods
Youth Centre
The Trust appreciates the importance of maintaining the longevity of having youth programs running in the local community. There have been seasonal activities held here at the Centre for a great many years but always fell short of being long term in nature. The trustees recognizing this need gave their green light for establishing a specific area set inside its Centre for holding youth programs and activities.
The former restaurant area on the lower ground floor has recently been refurbished to accommodate space for this particular community need. The plan is to enable boys and girls at separate times to make full use of the facility. This will allow them to feel that they have a place in the neighborhood where they can connect and get involved with beneficial activities to learn new skills and opportunities with their peers. A full program is being developed to take this forward.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
The space will house a ventilated keep fit and break out area with a kitchenette facility. We anticipate the youth Centre will be operational in the new year with DBS checked youth leaders ready to commence their activities.
Mental Health in the Community
Informal discussions took place with Sobus, a local community organization in Fulham, to see whether it would be possible to arrange for some training in mental health issues. Since the pandemic there has been a noticeable rise with people experiencing mental health problems. It is hoped that training can be held at this Centre during the new year to understand some of the conditions and underlying factors and how best to tackle these occurrences when they manifest and are encountered in the local community.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Financial review
Income and expenditure overview
The financial statements have been prepared in accordance with the accounting policies set out on the financial statements part of the report and comply with applicable laws and requirements of the ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ (Charities SORP (FRS102)) issued by the Charity Commission.
Total income has increased by 28% £100k more than year 2020, primarily due to receiving grant from the local authority, the easing of lockdown and allow the centre to open for public compared to 2020 when the centre was closed for the whole entire period.
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Two years income trend
500000
400000
300000
200000
100000
0
2021 2020
Donations and legacies Trading activities
Grants from Government
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There were no major changes to total expenditures, a slight decrease 1.50% £6k less than 2020.
Balance sheet, reserves, and cash
Net asset position was 8% higher than year 2020, due to a surplus resulted from the government support, local council grants and furlough grants.
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
External Auditor’s Report to the Trustees of Al Muntada Al Islami Trust
We have audited the financial statements of Al Muntada Al Islami Trust for the period ended 31 December 2021 which comprise a Statement of Financial Activities, Balance Sheet, and related notes. The financial reporting framework that has been applicable law and United Kingdom Accounting Standards (United Kingdom Accepted Accounting Practice).
Respective Responsibilities of Trustees and Auditors
The trustees are responsible for preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements are in accordance with applicable law and International Standards on Auditing (UK & Ireland). Those standards require us to comply with the auditing Practices Board’s Ethical Standard for Auditors.
Scope of the Audit
An audit involves obtaining evidence about the number of disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the charity’s circumstances and have consistently applied adequately disclosed, the reasonableness of significant accounting estimates made by the trustees, and the overall presentation of the financial statements.
Opinion on the Financial Statements
In our opinion the financial statements give a true and fair view of the state of the charity’s affairs for the period ended 31 December 2021; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011.
Opinion on other matters prescribed by the Charities Act 2011
In our opinion the information given in the Trustees Report for the financial year for which the financial statements are prepared is consistent with the financial statements. The accounts have been prepared in accordance with FRS102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
Matters on which we are required to Report by Exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us following report to you if, in our opinion:
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Adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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Certain disclosures of trustee’s remuneration specified by law are not made; or
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We have not received all the information and explanations we require for audit; or
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
- The Trustees were not entitled to prepare the financial statements in accordance with the Small Companies regime and take advantage of the Small Companies Exemption in preparing the Report of the Trustees.
On behalf of KWSR & Co.:
Susan Rahman, BSc FCA (Senior Statutory Auditor)
KWSR & Co. Chartered Accountants & Registered Auditors 136 Merton High Street, London SW19 1BA 25[th] October 2022
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
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Charity Name Al Muntada Al Charity No 293355
Islami Trust
Company No
Annual accounts for the period
Period
start To Period end
date 01/01/2021 date 31/12/2021
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Section A Statement of financial activities (including summary income and expenditure account)
| Income (Note 3) Income and endowments from: Donations and legacies Other trading activities Other Total Expenditure (Notes 4) Expenditure on: Raising funds Charitable activities Total Net income/(expenditure) before tax for the reporting period Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds Endowment funds Total funds Prior year funds £ £ £ £ £ F01 F02 F03 F04 F05 255,846 - - 255,846 154,583 70,103 - - 70,103 199,960 128,078 - - 128,078 - |
|---|---|
| 454,027 - - 454,027 354,543 |
|
| - - - - 1,640 380,117 400 - 380,517 384,499 |
|
| 380,117 400 - 380,517 386,139 |
|
| 73,910 (400) - 73,510 (31,596) |
|
| (168,898) 113,147 937,466 881,715 913,311 |
|
| (94,988) 112,747 937,466 955,225 881,715 |
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section B Balance sheet as at 31-12-2021
| Fixed assets Tangible assets (Note 5) Total fixed assets Current assets Debtors (Note 6.2&6.3) Cash at bank and in hand (Note 6.1) Total current assets Creditors: amounts falling due within one year (Note 7.1 & 7.2) Net current assets/(liabilities) Total assets less current liabilities Creditors: amounts falling due after one year (Note 7.1) Provisions for liabilities Total net assets or liabilities Funds of the Charity Endowment funds (Note 8) Restricted income funds (Note 8) Unrestricted funds Total funds |
Unrestricted funds Restricted funds Endowment funds Total this year Total last year £ £ £ £ £ F01 F02 F03 F04 F05 2,757 - 937,466 940,223 941,143 |
|---|---|
| 2,757 - 937,466 940,223 941,143 |
|
| (115,650) - - (115,650) (192,966) 135,057 - - 135,057 132,525 |
|
| 19,407 - - 19,407 (60,441) |
|
| (4,345) - - (4,345) (9,763) |
|
| 23,752 - - 23,752 (50,678) |
|
| 26,509 - 937,466 963,975 890,465 |
|
| 8,750 - - 8,750 8,750 - - - - - |
|
| 17,759 - 937,466 955,225 881,715 |
|
| - 937,466 937,466 937,466 112,747 112,747 113,147 (94,988) - (94,988) (168,898) |
|
| (94,988) 112,747 937,466 955,225 881,715 |
| e or two trustees/directors on behalf of all the trustees/directors |
Print Name | Date of approval |
|---|---|---|
| Dr. Saeed AlGhadie | 25/10/2022 | |
Signed by one or two trustees/directors on behalf of all the trustees/directors
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Al-Muntada Al-Islami Trust annual report and financial statements 2021
Charity Name Al Muntada Al Islami Trust
| Charity No 293355 Statement of Cash Flows or the Year Ended 31 December 2021 Reconciliation of net income/(expenditure) to net cash flow Net income/(expenditure) for the reporting period as per the statement of financial activities Adjustment for: Depreciation Decrease/(increase) in debtors (Decrease)/increase in creditors Net cash provided by (used in) operating activities Cash flow from financing activities Loan received Net cash provided by (used in) financing activities Cash flow from investing activities Purchase of assets Net cash provided by (used in) investing activities Net increase / (decrease) in cash and cash equivalents Opening Cash and Cash equivalents Closing Cash and Cash equivalents Net increase / (decrease) in cash and cash equivalents |
2021 2020 73,510 (31,596) 920 1,226 (77,316) 319,484 5,418 (200,601) |
|---|---|
| 2,532 88,513 |
|
| - - |
|
| - - |
|
| - - |
|
| - - |
|
| 2,532 88,513 |
|
| 132,525 44,012 135,057 132,525 |
|
| 2,532 88,513 |
26
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the accounts
Note 1 Accounting policies
a) Basis of preparation
The financial statements of the Charity, which is a public benefit entity under Financial Reporting Standard 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015, the 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) (Charities SORP (FRS102)) and the Charities Act 2011 and Companies Act 2006.
The Accounting Policies are consistent with the previous year. After reviewing the charity’s forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity, therefore, continues to adopt the going concern basis in preparing its financial statements.
The accounts present a true and fair view and no changes have been made to the accounting policies. No changes to accounting estimates have occurred in the reporting period. No material prior year error has been identified in the reporting period.
b) Going Concern
Al Muntada Al Islami Trust is currently going through a recovery process to strengthen its financial resilience to continue to meet its charitable objectives. At the same time the charity is putting in measures to improve all aspects of its operations including governance, financial management, human resources, and compliance. The Trustees have reviewed the Charity’s financial position, Since the year end, the overall income position of the Charity has continued to improve but the unrestricted funds remain in deficit. A financial recovery plan to commenced in January 2020 is being put in place. This involves a significant review of all areas of the Charity particularly those that are making operating deficits, reducing charitable expenditure and costs at the centre. This will also enable the Charity to manage operational and financial risks successfully and to allow us to meet our strategic and operational goals over the next 12 months and the medium term.
The following assumptions are made in the financial projections.
The charity will be able to raise the voluntary income from donors and supporters which it has projected as there are an increasing number of supporters who are committed to continue supporting the charity. This was demonstrated during 2021 up to the report date. The organisation will focus on reviewing its cost base to ensure it is in line with its income projections.
Despite the financial recovery plan and the associated financial and cash flow forecasts the Trustees recognise that there is a material uncertainty relating to these assumptions. These conditions indicate the existence of a material uncertainty which may cast significant doubt about The Trust’s ability to continue as a going concern. The Trustees and CEO are proactively addressing the negative unrestricted funds and will continue to have day-to-day focus on income generation and cashflow forecasts and these will be reviewed monthly. As a result of these planned changes and the commitment to implement them the Trustees are of the view that it is appropriate
27
Al-Muntada Al-Islami Trust annual report and financial statements 2021
to prepare the accounts on a going concern basis. The financial statements do not include the adjustments that would result if Al Muntada Trust was unable to continue as a going concern.
The trustees are not aware of any material uncertainties which suggest the charity cannot continue as a going concern. The accounting policies have been consistently applied for all material items.
c) Incoming resources
Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when Al Muntada Trust is entitled to the funds, receipt is probable, and the amount can be measured reliably.
Gifts in Kind for which Al Muntada Trust accepts full responsibility for distribution are included in income at the value to the charity (in the case of medicines, at the lowest value of the generic equivalent as approved by the WHO) when the good are received and under the control of Al Muntada Trust. Amounts are recognised in inventory until distributed at which point the relevant cost is released to the statement of financial activities.
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities when Al Muntada Trust is entitled to the funds, receipt is probable, and the amount can be measured reliably.
The receipt in advance of a grant for expenditure that takes place in a future accounting period is accounted for as deferred income and recognised as a liability until the accounting period in which Al Muntada Trust will expend the resource.
d) Resources expended
Resources expended are recognised on an accrual’s basis.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
Support costs are those costs incurred indirectly in support of expenditure on the programmes of the Charity. Allocation of support costs and staff costs have been proportionated to the total of programme costs and corresponding thematic programme area.
Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements. They include legal advice for trustees, cost of trustees' meetings, audit fee and internal audit costs. These costs are allocated in the same way as other support costs.
e) Foreign currencies
Transactions in foreign currencies are translated at the rate of exchange at the time of the
transaction. Foreign currency balances are translated at the rate of exchange prevailing at the
balance sheet date.
Foreign currency gains and losses are recognised through the Statement of Financial Activities for the period in which they are incurred.
f) Investment property
No investment property held.
28
Al-Muntada Al-Islami Trust annual report and financial statements 2021
g) Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as Leasehold properties Straight line over the life of the lease, Freehold properties 5% Reducing balance, Computers, and software 25% Reducing balance, Fixtures, and fittings 25% Reducing balance, Office equipment 25% Reducing balance, Motor vehicles15% Reducing balance
Assets that are subject to amortisation are tested for impairment whenever events or changes in circumstance indicate.
h) Fund accounting
General funds are unrestricted funds which include buildings and equipment necessary for the proper functioning of the Charity and other funds available for use at the discretion of the Trustees in furtherance of the Charity's objectives.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for purposes.
Restricted funds are funds which are subject to specific restrictions as imposed by the donor or nature of the appeal.
i) Taxation
As a registered charity, Al Muntada Trust is exempt from taxation of income and gains to the extent that its income and gains are applicable to charitable purposes only.
j) Key judgements and estimation uncertainty
The preparation of the financial statements requires the Trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the Trustees' best judgment at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The Trustees' do not believe that there are any significant areas of estimation uncertainty that need to be disclosed .
29
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the accounts (cont.)
Note 3 Income
| Donations and Legacies Donations received in the UK Gift Aid Donations from other charities Charitable Activities Crisis relief projects |
Total Total Unrestricted Restricted 2021 2020 £ £ £ £ 90,630 - 90,630 51,386 11,075 - 11,075 197 154,141 - 154,141 103,000 255,846 - 255,846 154,583 |
|---|---|
| Total Total Unrestricted Restricted 2021 2020 £ £ £ £ - - - - - - - |
| Other trading activities Rental income Pilgrimage Others Job Retention Scheme - Furlough H&F Council Grant |
Total Total Unrestricted Restricted 2021 2020 £ £ £ £ 74,502 - 74,502 199,960 (4,399) - (4,399) - |
|---|---|
| 70,103 - 70,103 199,960 |
|
| Total Total Unrestricted Restricted 2021 2020 £ £ £ £ 102,078 - 102,078 - 26,000 - 26,000 - |
|
| 128,078 - 128,078 - |
30
Al-Muntada Al-Islami Trust annual report and financial statements 2021
----- Start of picture text -----
TOTAL INCOME 454,027 - 454,026 354,543
Section C Notes to the account (cont.)
----- End of picture text -----
| Note 4 Resources | |||||
|---|---|---|---|---|---|
| expended | Total | Total | |||
| Direct | Staff | Support | 2021 | 2020 | |
| Costs | Costs | Costs | Costs | Costs | |
| £ | £ | £ | £ | £ | |
| Raising Funds | - | - |
- |
- |
1,640 |
| Charitable Activities | |||||
| and Trading activities | |||||
| Pilgrimage | 44,925 | 124,118 | 49,931 | 218,974 | 368,073 |
| Culture & Social Affairs | 32,874 | 90,825 | 36,537 | 160,236 | 10,724 |
| Crisis relief projects | 186 | 514 | 207 | 907 | 5,702 |
| Total Charitable | |||||
| Activities and Trading | 77,985 | 215,457 | 86,675 | 380,117 | 384,139 |
| activities | |||||
| Total Expenditure | 77,985 | 215,457 | 86,675 | 380,117 | 386,139 |
| 2021 | 2020 | ||||
| Support Costs | |||||
| £ | £ | ||||
| Office Costs | 78,394 | 76,635 | |||
| IT | 2,931 | 2,875 | |||
| Governance Costs | 5,350 | 5,578 | |||
| 86,675 | 85,088 | ||||
| 2021 | 2020 | ||||
| Governance Costs | £ | £ | |||
| Audit Fees | 3,250 | 3,250 | |||
| Meeting expenses | - | 216 | |||
| Legal fees | - | 2,111 | |||
| 3,250 | 5,577 |
31
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the accounts (cont.)
Note 5 Tangible fixed assets
Cost or valuation
| Freehold | Fixtures, | |||||
|---|---|---|---|---|---|---|
| land & | fittings, and | Office |
IT | |||
| buildings | equipment | Equipment |
Equipment | Total |
||
| £ | £ | £ |
£ | £ |
||
| At the beginning of | 937,466 | 88,714 |
108,917 |
13,997 | 1,149,094 |
|
| the year | ||||||
| Additions | - | - | - |
- | - |
|
| Revaluations | - | - |
- |
- |
- |
|
| Disposals | - | - |
- |
- |
- |
|
| Transfers * | - | - |
- |
- |
- |
|
| At end of the | year | 937,466 | 88,714 |
108,917 |
13,997 | 1,149,094 |
| Depreciation and impairments | ||||||
| **Basis | SL or RB | RB | RB |
RB | Straight Line |
|
| ("SL") or | ||||||
| Reducing | ||||||
| Balance | ||||||
| ("RB") | ||||||
| ** Rate | 0.25 | 0.25 |
0.25 | |||
| At beginning | of the | - | 88,420 |
107,613 |
11,918 | 207,951 |
| year | ||||||
| Disposals | - | - |
- |
- |
- |
|
| Depreciation | - | 74 |
326 |
520 | 920 |
|
| Impairment | - | - |
- |
- |
- |
|
| Transfers* | - | - |
- |
- |
- |
|
| At end of the | year | - | 88,494 |
107,939 |
12,438 | 208,871 |
| Net book value | ||||||
| Net book value at the | 937,466 | 294 |
1,304 |
2,079 | 941,143 |
|
| beginning of the year |
32
Al-Muntada Al-Islami Trust annual report and financial statements 2021
| Net book value at the end of the year |
937,466 220 978 1,559 940,223 |
937,466 220 978 1,559 940,223 |
|---|---|---|
| Section C | Notes to the accounts (cont.) | |
| Note 6.1 Cash at bank and in hand 2021 2020 £ £ Short term cash investments (less than 3 months maturity date) - - Short term deposits - Cash at bank and on hand 135,057 132,525 Other - - Total 135,057 132,525 Note 6.2 Debtors and Prepayments 2021 2020 £ £ Trade debtors 138,194 218,194 Prepayments and accrued income 21 2,705 Other debtors - - Total 138,172 215,489 Note 6.3 Disclosure of debtors recoverable in more than 1 year (included in debtors above) 2021 2020 £ £ Trade debtors - - Prepayments and accrued income Other debtors 22,522 22,522 Total 22,522 22,522 |
||
| 22,522 22,522 |
||
33
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the account (cont.)
Note 7 Creditors and accruals
7.1 Analysis of creditors
| Accruals for grants payable Bank loans and overdrafts Trade creditors VAT Accruals and deferred income Taxation and social security Other creditors Total |
Amounts falling due within one year Amounts falling due after more than one year 2021 2020 2021 2020 £ £ £ £ - - - - - - - - - (50,151) (54,735) - - - - - - - - - - 39,506 38,672 - - 8,750 8,750 |
|---|---|
| - (10,645) (16,063) 8,750 8,750 |
7.2 Deferred income
| To account income to the correct period (accrual basis) Balance at the start of the reporting period Amount added in current period Amount released to income from previous periods Balance at the end of the reporting period Total |
Amounts falling due within one year 2021 2020 £ £ 6,300 106,698 - 6,300 - 106,698 - - 6,300 6,300 |
|---|---|
34
Al-Muntada Al-Islami Trust annual report and financial statements 2021
35 Al-MutttadaAklslaml Trusi anttual report and financlal siatemenis 2021
----- Start of picture text -----
Fund balances carried forward £ (94,988) 937,466 (253) 113,000 112,747 955,225
Gains and losses £ - - - - - -
Transfers £ - - - - - - -
Expenditure £ 380,117 - - 400 - 400 380,517
Income £ 454,027 - - - - - 454,027
Fund balances brought forward £ (168,898) 937,466 147 113,000 113,147 881,715
Purpose and Restrictions Religious duties Humanitarian/Emergency Response
Type PE, EE R or UR * U PE R R
Key: PE - permanent endowment funds; EE - expendable endowment funds; R - restricted income funds, including special trusts, of the charity; and U - unrestricted funds Fund names Unrestricted Funds Endowment Property Zakaat-ulmaal Fund Syria Crisis Fund Restricted Funds Total Funds
----- End of picture text -----*
----- Start of picture text -----
Fund balances carried forward £ (168,898) 937,466 - - - 147 113,000 - - - 113,147 881,715
Gains and losses £ - - - - - - - - - - - -
Transfers £ (397,031) - - 378 46,178 (45) - 321,649 9,615 18,900 356 - -
Expenditure £ 385,419 - - - - 720 - - - - 720 386,139
Income £ 354,543 - - - - - - - - - - - 354,543
Fund balances brought forward £ (535,053) 937,466 378 46,178 (45) 867 434,649 9,615 18,900 356 510,898 913,311
Purpose and Restrictions Education Water & Sanitation (Wash) Religious duties Religious duties Humanitarian/Emergency Response Humanitarian/Emergency Response Humanitarian/Emergency Response Humanitarian/Emergency Response
Type PE, EE R or UR * U PE R R R R R R R R
8.2 Details of material funds held and movements during the PREVOIUS reporting period * Key: PE - permanent endowment funds; EE - expendable endowment funds; R - restricted income funds, including special trusts, of the charity; and U - unrestricted funds Fund names Unrestricted Funds Endowment Property Quran Translation Fund Drop of Life Fund Iftaar Saa'em Africa Fund Zakaat-ulmaal Fund Syria Crisis Fund Eritrean Refuges Fund Gaza Crisis Fund Nepal Fund Restricted Funds Total Funds
----- End of picture text -----
Section C Notes to the accounts (cont.)
Note 9 Details of certain types of expenditure
----- Start of picture text -----
Note 9 Fees for Auditing of the accounts
Auditor’s fees
----- End of picture text -----
----- Start of picture text -----
2021 2020
£ £
3,250 3,250
----- End of picture text -----
Note 10 Paid employees
10.1 Staff Costs
----- Start of picture text -----
2021 2020
£ £
Salaries and wages 212,128 240,095
Social security costs 3,329 2,507
Pension costs (defined contribution pension
plan)
Other employee benefits - -
215,457 242,602
Total staff costs
Please provide details of expenditure on staff
None
working for the charity whose contracts are
with and are paid by a related party
No employees received employee benefits
(excluding employer pension costs) for the None
reporting period of more than £60,000
Please provide the total
amount paid to key
management personnel
(includes trustees and £38,000
senior management) for
their services to the charity.
----- End of picture text -----
| 10.2 Average head count in the year The parts of the charity in which the employees work Fundraising Charitable Activities Governance Other Total |
10.2 Average head count in the year The parts of the charity in which the employees work Fundraising Charitable Activities Governance Other Total |
This year | Last year |
|---|---|---|---|
Number |
Number |
||
| Fundraising | 1 | 1 | |
| Charitable Activities |
3 | 1 | |
| Governance | 2 | 2 | |
| Other | - | - | |
| Total | 6 | 4 |
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the accounts (cont.)
Note 11 Taxation
The Trust is a registered charity and is not therefore liable to income or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
Note 12 Post balance sheet events
No Post balance sheet events
Note 13 Related Parties
During financial year 2021, there were no Trustee or related party transactions recorded for the organisation
1
Al-Muntada Al-Islami Trust annual report and financial statements 2021
Section C Notes to the account (cont.)
Note 14 Detailed income and expenses
| Income Hajj - Sales Standing Orders – MT Donations – General Donations Boxes Just Giving Other income Gift Aid Rebate Job Retention Scheme – Furlough Donations from Overseas charities` Rent Receivable Council Grant Budget support Muntada Trust Expenses Bank Charges IT Maintenance & Support ATOL fees Salaries Travel Advertising & Printing Sundries & refreshment Cultural & Social Activities – Salaries Conferences and Courses Zakaat Distributed Media Redundancy Staff Rewards Employers N.I. Employers Pensions Salaries - Management Salaries – Maintenance Business Rate Waste Management Services Building Insurance Electricity Gas Water rate Telephone, Fax & Broadband IT Maintenance, Support & Equipment Meetings Expenses |
2021 (4,399) 2393 7,771 154,140 2,166 1,600 11,075 102,078 - 72,903 26,000 78,300 454,027 73 1,628 42,829 395 - 32,874 - - 186 29,183 487 8 3,321 122,457 60,488 20,493 1,925 7,364 14,593 12,325 3,157 7,000 2,931 - |
2020 £ 17,868 3,177 24,384 2,687 3,229 40 197 168,458 103,000 31,503 - - 354,543 203 116 1,728 48,613 4,987 68 - 540 720 1,226 18,965 - (56) 2,563 155,396 65,733 - 5,260 7,070 11,187 11,334 4,365 7,215 2,875 216 |
|---|---|---|
2
Al-Muntada Al-Islami Trust annual report and financial statements 2021
| Fundraising cost – MT MailShot & acloud Stationery & Photocopier Legal and Professional fees Building Maintenance, repairs & renewal Cleaning H&S & Fire Proctection Services Miscellaneous Expenses Hajj Bonuses Hospitality Depreciation Bad Debt Write Off |
- 248 4,613 6,107 735 1,016 5,350 5,361 1,685 8,494 678 1,259 2,390 1,313 29 245 - 9,000 - 485 920 1,226 - 1,060 380,117 386,139 |
|---|---|
| 73,910 (31,596) |
3
Al-Muntada Al-Islami Trust annual report and financial statements 2021