THE MLISLIM EDUCATIONAL TRIIST FINANCIAL ACCOLTNTS FOR THF. YF.AR F.Nt)F.D 5TH APRIL 2022 CHARITY RF.GISTRATION NIIMBER .313192
THE MUSLIM EDUCATIONAL TRUST INDF.X TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2022 Pa Contents Trusi Information Trustees, Annual Report Independ¢nt Examinerfs Rert Statement of Financial Activities Sal¢ of Publications Account Balance Sheet Noles to the Financial Accounts 8-11
THF. MUSLIM EDUCATiof4AL TRUST TRUST INFORMATION Trustee5: Dr. Zahirul Haq Bsc. MBChB Dr. Shaikh Muhammad Shahadat Husain MBBS. DA (London) Dr. Faruq NUNI Ar¢fin MBBS. PLAB (UK). USMLE Dr. A.B.M. Nazem MBBS Professor Ghulam Sarw2r M. Com. FRSA Ms Farhat Yasmeen Sarnar Bsc. PGCE Ms Suliana Nasrecn Sarwar MA. PCJCE c.harity Registration umber: 313192 Registerfd 01¢¢. 130 Stroud Green Road London N4 3RZ A¢countants: Saberd & Co Charterd A¢countants 126 Middlesex Street London EI 7HY
THE MUSLIM EDUCATIONAL TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR EliDED 5TH APRIL 2022 The Muslim Educational Trust is a registered Charir%" (Regisifdiion Nurnkr.. 31319? li was set up in 1966. The Trusl is situated at 130 Stroud Green Road. London. N4 3RZ. The Trustee5 of the Charity to the year 5th April 2022 are: Dr Zahinjl Hao. B.Sc. MBChB (appointed: November 11>99) Dr S M Shahadai Husain. MBBS. DA (London) lapwinied.. (kLober fj002) Dr Faruq Nurul Arefin. MBBS. PI.AB ILIK). USMLE (apwinied= D¢cember •002) Dr A B M Nem. MBBS lappointed.. Augusi ?(K>51 Prof Ghulam Sarw'ar. M. Com.. FRS.4 lappoinied= JanuarN. 1010) Ms Farhat Yasme¢n sa"ar Bsc. PtiCF. (appoinied: 12 March 2016) Ms Suliana Nasrecn Sarw'ar MA. PGCE lappoinied.. l? March 2016) The objectives of the Charity as per its t)eed of Declaration of Trusi (last amended 3 ISI July 2010) include the following.. To contribute to the spiritual. moral. mentsl and physical development of ihe Muslim community in the UK by securing ¢(ficient education of Muslim children in ihe primary and secondaTN' school5. b. To arrange for Ihe r¢ligious education of Muslim children in Brit15h schwls based on ihe leachings of the Qur an and Sunnah. To provide within th¢ mean5 of ihe Trusl ¢ducation facilities and ancillary services in the UK. d. To manage and equip slaff. and mainlain educaiiona] insiilutions To purchase, take on lcase hire or otherwise acquire awKI dispose of any real. personal OT anv othcr propert!, and an!. rights or privileges necessarv or convenient for the purposes of the Trust. f. To publish Islamic books. journal& maga7_ine& teaching aids and award scholarships 10 Muslim siudenls in ihc UK and elsewhere. During the year. Ihe Charity has conlinved io cary out the publishing and sale organisalion of ils books and FK>51er publicaiions desigthed to provide ben¢fii for ihe Muslim communiiN'. in raising awar¢ness and by way of provision of education ihrough its publicaiions. In carr)'ingy out these activities th¢ Trustees have made due cowh5ideration of ihe Charity Commission s gyuidance on public benefii. including when exercising¥ any power5 or caryying out any duties io which the guidance is relevant. The charity 15 managed by a Board ofTru51tt5 and is funded by ihe profitllloss) deried from the sale preedS of thc tXM)ks and educaiional matcrials published by it. rental income from reT)tin8 four rooms of the freehold properl) whcre lis offices are l(Kaied and from the sale pr(Keeds of its fT¢ehold Property ai 48. Lancaster Road, London N4 during ?008. The Charity's toial sales in¢ome from its sale of publications during the year amounted to £22,997 and after cosi of sales of £15.597 and totsl expenditure of £30.570. 8 net loss of L?3.170 arises. The Charity received a total n¢i rentsl income of £18.971 (calculated &$ gross renthl income of £26.661 deducting rental expenses of £7.690}. The Charily S total income for the year was £50.475 comprising gross rent received of £?6.661. int¢resi from bank & investment deposits 01£17. Coronavints Job Reiention Scheme Grnnt of £800 aFKi gross sales from the sale of publications of £22.997. Th¢ lotal ¢xpenditure of the charity for the year w'as £70.350 (including sales of publication expenses of £46.167 and renlal incorne expenses of £7.690). The deficii for the ycar was £19.875 which a$ mei from thc unspcni sal¢ pioceeds derived in ?008 from the sale of thc property ai 48 Lancaster Road. London N4.
THE MUSLIM EDUCATIONAL TRUST TRIISTEES, ANNLIAL REPORT FOR THE YF.AR ENDED 5TII APRIL 2022 COINTINLiATIOIl PAGE The Trustees decided to discontinue thc granis paid to thc UK Islamic Association from December 2011 and also to conlinue ihe grdnl paid to Darul Khidmah Wal Falah. UK io be used in Bangladesh. As at 5th April 2022, the TnLsi h&$ only one pan time eTnployee and otbe casual self-employed Sale5 Assi5tani. As advised by the accountani of ihe Charity. Ihe inLStees conlinued to review the amount of bank deposits held M'iih one bank in consideralion of ihecompensation limits set by the Financial Services Compensation Scheme IFSCS). The Chairnian ol.the Board of Trustee& Professor Ghulam Sarwar has been running ihe Trust on a voluntsry basis since 4th January 2010. Reserves Poli¢ As eiled aix*v¢ the Trusi receives income through the sale of its publications and through renial income of its pro. The operaiional costs of the charitj are met ihrough this income. It has been noted that over the past )'ears lh¢ Trust has ken arriving at a nei deficii posiiion for the accouniing >'¢ar. The Tnjstees believe ihai the level of reserves held should be able to allow ihe Trust to meei its charitable objectives and also io meet an). nei deficit position arising and also for unforeseen risks and contingencies. At (he Year Endcd 5 April 2022 th¢ ioial Unrestrict reserves held amounted 10 £306,787. Thi% level of reserves has been bLiili up from the sale procecds deriN'ed in 21>08 from ihe PrOrtY siliiated at 48 Lancaster R(hqd. London. N4. The Trusiees undcflake io maintain this level of r¢5erves hiCh has been decreasing ¢ach year in ordcr io meei yearly operaiing activities and cxpenses. The Trustees confirm that ulilising these Sale proceeds againsi operating costs of the charity is pemiitted in their governing d¢xumenis. The level of rcs¢rves required and the reserves policy will be reviewed on an annual ba515 by the Trustees. The Trugt is considering ways io increase sales income from ihe sale of publications of its books and journals. The amouni held in reserves is monitored regularly by the Trusiees during each finaticial year. Coronavirus During the year und¢r review. the Charily"s work was impacted by the Covid 19 pandemic apart from the global 51owdown of the Islamic publicaiions tnarkei. Howcvcr. the irustees a conscious of their responsibilities and have been doing their best to keep ihe charily running, m¢eiing the cducational needs of th¢ Muslim communit! despiie suslaining losses ovcr ihe years. Please also refer to Note l of the Accounts with regard to the Trustees assessment of going concern. There is noihing mor¢ to for ihc year ended 5th April 2022. The irustees declare that they have approved the Trustees. Annual Rcwn atrK)ve. Professor Ghula Sarwar {Chaimian. Board of Trustees> For and on behalf ol'the Trusiees of The Muslim Educational Trust Dated= 26 January 2023
INDEPENDENT Ek4MINER'S REPORT TO THE TRLTSTEES OF THE MUSLIM EDUCATIONAL TRUST CHARITY NLMBER: 313192 ON THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2022 I report to th¢ charity Trustees on my examination of the accounts of Th¢ Muslim Educotional Trust (the Trust) for the year ended 5ih April 2022. Res nsibilities and basis of re As the ¢harity Trustees of the Trust you are resp)nsible for the preratIOn of the accounts in a¢¢ordan¢e with the requiretnents of the Ch8rilies Aci 2011 ("the Act"). I report in respect of my examination of the Trust's ac¢ounts Cal¢d out under Section 145 of the 2011 Act. In carrying out my examination I have followed all Ihe applicable Dircctions gIen by the Charil). Commission under Seciion 145 (5) (b) of the 2011 Act. Inde ndent Exatninerfs Stat¢ment I have compleled my examination. I confimi thai no maierial matters have come to my attention in connection with the examination giving me cause to belieNe that in any material respccl- a¢counling records were not kept in respect of ihe Trust as required by Section 130 of the Act- or 2. the accounts do not accord lih those records: or 3. the accounts do nol comply 'ith the applicable requirements concerning the forni and contcnt of ac¢ountS Set out in the Charities (Accounts and Reports) Rcgulations 2008 other than any requiremenl that the accounts give a "truc and fair view. which is not a matter considered as port of an independent examination. I confirni there are no other matter5 to which vour allention should be drawn to enable a proper understanding of thc a¢counlS to bc reachcd. Saberd Patel FCA, Arr {Fellow) Sabera & Co. Chart¢r¢d Accounlanls 126 Middlesex Sir¢et. London, E17HY Dated.. 26th January 2023
TIIL 111 SI.I%I F.DI 1'.4TION.4I. TRI'ST "OKTHF. )"E.AR 10 I-ll .IPKII. 2022 Income & F.x ditu K¢s'trJcI kund Un5Cla fund 2021 1022 R¢stri¢d Fund LItW¢5triei¢d Fund 2021 2021 Tal 2022 Totsl 2021 In¢omt D nationy & Ciribiii Cotvnalitus Job KLl¢llilUtt Scheme Gwt 7234 7,234 8(K) 8(K) Intomt from..I55rlS RLnidl In¢4)mL Receiv¢d Ini¢r<si Ke¢eivable Sh(Kt Tem Bank rwits . tknnaiions EO Chartty 26.031 26.031 26.661 26,(4)1 17 101 26.678 27.478 7.234 26.212 33.446 Intome from Chritsblt Attii iti¢4 Gri)£$ sales from SalL ol. VubliLallOllS 22.W7 22.997 7234 44.777 Total Intomt for Iht I'txr EXPF.NDITIIRE Rtntal Intomt F'x 3.210 1.805 ).675 7.6 3.210 1.805 2.675 2.773 1.705 1.864 6.342 2.773 1.705 1,864 6.342 Loun¢il"r OthEr I1118 ExFKnses Salr of PubliialbvDs LA Ci)St of SalL tses Stall'S813riL (Jher DITeth Expen5¢S Chatit*bk F
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15,597 9.IP)8 20.832 45.527 15.597 9.738 20.83? 46.167 5.894 3.951 16.456 26.301 5,894 9.738 10.456 5,787 640 5.787 Dirtti Chxritabit L Si&tfSaiarLes TraL4 Expen5ts EauL4tional CJTants Paid Suhs(noions & Periixlkcais nditu 2.275 535 4_81X) 182 7.792 2.43% 1.447 988 53.1 4.8(X) 2.435 535 4.800 4.81N 7.9$7 1,447 6.505 7.952 Indirect I'h#riiablt Tr'.x RtL and all[ L 18hi & Fleat InSuCe Telephofie. & Intetnd l)riniin¥. Posiage & Si•i(My Repairs & MainieDOnce A¢cOunLc) Ftt (lther Professi¢ Cvmpuier sOftare & IT ank Char8 "I'rael Expenses tientrgl Ex5¢$ L05s on Dis1 Atnortisalir tkpreciaiio nditure 1.6M 1448 591 525 532 103 975 1.634 2.448 .592 1.558 433 933 870 200 975 400 1,558 433 933 870 2(K) 975 400 525 532 103 975 105 178 829 105 178 8?9 42 704 .077 42 704 1.077 65 56 8.541 65 SE6 8.541 646 9,620 9.620 7.Z34 48.768 'rolal Ei nditu Ntt Incomel L Accumulgted broughi lofward al 6 4 2021 Actumulthl Trus camed fon¥d 5.4 2022 ndiiiir¢ for tht I'v4r 119J7S} 119.X751 3?6.66: 3?6.662 31KJ.787 M6.787 337.887 337.887 326.662 J2(b,662
THE MUSLIM EDUCATIONAL TRUST SALE OF PUBLICATIONS ACCOUNT FOR TIIE YEAR ENDED 5TH APRIL 2022 r*otes 2022 2021 Total Sales for the year (AJ per Sialement of FinancialAciiviiies) 22.997 11.331 Less: Cost Of Sale5 Opcning SioLk ai cost Printing Costs during the year 19,220 25,114 6,542 25.762 25.114 Deduct: Closing Siock at Cosi (10.165) (19.220) C05t ofsoles." Per Sialement ofFinancialAclivilies_' 15.597 5.894 Gross Profit 7.400 5.437 Less F.x nses: Sale5 Stall-salaries & Svbcontrdctor Travelling Expenses Royalties Payable Freight & Delivery Sofiware Costs Postagc Stationery & Photocopying Light & Hcat Telephone. Fax & Intcrnei General Expenses 18.148 2.408 2.300 2.699 388 42 521 2.448 787 829 15.817 2,159 1.133 2,097 431 33 86? 1.558 1,4(K) 704 Tolal Erpen.se.s." Per.Siolemenl ofFinancialA¢iivilies 26.194 Net Profjtl on Sales of Publications for the Year (23,170) (20,757)
THE ML.SLIM EDL.CATIO)AL TRUST BALANCE SHEET AS AT 5TH APRIL 2022 2022 2021 Notes Fixed A55et$ Tan ible & Intan ible Assets Freehold PremLSts'. 130 Stroud Green Road. London N4 at cost rovemenlS- Balonce brought forward at 6.4.2021 rovement additions during th¢ year 24.132 24.132 49.667 49.667 49,667 73.799 49.667 73.799 Intan ible Fixed Asset Websiie at Cost Less: Amortisation 165) 584 FixlUTes Fittin Fumiture & E ui Balanee broughi fotward ai 6.4.20?1 A(Jdiiions during the year Cos¢ of DIs8[S during the year ment 62..109 430 (1,6_$9} 61,08V 57.422 61.080 47 61.127 57.978 L¢ss'. tkpre¢iation 3,149 3.658 Libra Books Balance brought forward at 6.4.2021 Addiiions 7.932 7.932 7.932 85.464 85,-389 Current Assets 10.165 ?82 50.748 155.615 512 19.220 Stock of PublieathODS ai ¢ost DebtOT5 and Prepayments Invesirnenis Cash at Bank Cash in Hand 10 129.100 93,583 468 225.J22 244,586 s: Current Liabilities Due withiN one ear Sundry CTediiors atL(J Accrua15 (3.9991 (3.313) 221.323 241.273 Net Current Assets 306.787 326.662 Tot¥1 Net A55¢ts Re re$eDted B Llnresiricttd A¢cuNJulat¢d Fund 326,662 13 306,787 PTofe5$0r Ghulam SaTwar For and on behalf of ihe Board of Trusltts Dated.. 26th January 2023
THE MUSLIM EDUCATIOIYAL TRUST NOTES TO THE ACCOUNTS FOR THE YEAK EYDED 5TH APRIL 2022 I) ACCOUNTif4G POLICIES G¢n¢ral These Accounts have been pr¢pared under the historical cost conv¢niion and in accordanc¢ with the Charities SORP {FRS 102) {Accounting and Reporting by Chariiies.. Ststement of Recornmended Practice appli¢able io charilies preparing thcir a¢counts in accordance with ih¢ Financial Reporting Standard appli¢able in ihe UK and Republic of Ireland {FRS 10?11 (effective l JanuaTh' 2019). FRS 102 {Ihe Financial Retx>rting Standard applicable in the UK and Republic of Ireland) and th¢ Charities Aci 2011. reciatioThlAmortisation Polic Tangible fixed assets arc stat¢d ai cost less depreciation. Depreciation is provid¢d at the annual rale in order to write off each a5sei over its estimated useful economic life. The dcpre¢iation rate for Fixtures. Fittings & OtTice Equipmeni held for use by the charity is I SO/0 On th¢ dUCIng balance basis. Freehold Premises with a long useful economic life is noi depreciated. Amortisation on Intangible fixed Asset is sirnight linc over 10 years. Profi from ihe Sal¢ of Publicalions The gross in¢otne genernted from the sale of the Trnst's trM)ok publications and related expenditure 15 shown separdlely under the Statewnent of Financial Activities. Please refer to the Sale of Publications Account h]ch computes ihe nei incomel{loss) derived from this activity. Under the Sale of Publication% Account. toial sales income is shown on a receivable basis. representing the invoiced value of Trusi publications during ihe year. Stock is valued at the lower ofcosi and net realisablc value. Income from Assets Interest from Short Tenn & Bank Deposits is recognised when receivable. Rental Income is recognised on a received basis. Trade Debtors Trdde debtors are amounls due to the Trust from customers for the sale of books and publicatiOll5 measured ai invoiced amounts after any discounis. Creditors Creditor5 ar¢ measured at settlement aTnount after any discoun Publi¢ Benefit Eniii Statemcnt The Trnsi is a public benefit entity. Please refer to the Trustecs. Annual Report for comments made in respect of adherence lo ihe Charily Commission's guidance on public benefit. Goin Concern These financial accounts have ix¢n prepared on a going Concern basis. based on ihe assessmeFtI made by the Trustees. The Trustees have explained ihai the Tr51 has been meeiing a significant educational need of ihe Muslim community- The TTusiees believe that the Trusi will sustain for nearly another fifteen to Iweniy years based on the preseni fInarla1 Situation. The Trustees have mentioned thal some of the present Trustees are young professionals who are aiming to steer the TTUSI and keep li running for meeting ihe educational needs of the Muslim community for which the charit). was set up. The Trustees have commenled ihai Ihey are ensuring ihat income is continued to be derived from the sale of its b(M)k5 and publications and from rental income and thai they are trying to kttp expenses to the minimum. The Trustees have also meniioned that during the year under review. Ihe charity's work was impacted b). the Covid 19 pandemic apart from ihe global slowdow) ofihe islamic publications market. The Tru5t¢cs have commented ihey are conscious of iheir re5ponsibilites and have been doingT their besi io steer the charity as a going concem despite suslaining losses over the years.
THE MLISLIM EDLCATIONAL TRUST NOTES TO THE ACCOUNTS FOR THE I'EAR ENI DED 5TH APRIL 2022 I) ACCOUNTING POLICIF.S (CONTINUED TLxation As the Trust is a registered charily. it is cxempi from taxation on its income derived fro ¢haritable activities. Defined Contribution nsion sch¢me The Trusi pays into a defined contribution occupational pension scheme for its employee. Conlributions are expensed &$ th¢y become payable. Government Grdnt5 During ihe year the Trust received the Coronavinjs Job Renleniion Scheme Ordnt for its employee when furloughed. This Grani has been rogniSed based on evidence of entitlement. probable receipt and liable wn¢asuremeni of the amouni of Grdnt. As the employee salary is apportioned to Sale of Publications Account and 20 % io Direct Chariiable expenses. the Grant has b¢¢n reflected in the accoutlts in accordance iherewilh. 2} FIXED ASSETS FOR USE BY THE CHARITY Intan ible Fixwres Fittin Fixed & Office Freehold Premises Lib Asset ui Total Cost: Ai 6th April 2021 Improvemcnts bfwd ai 6th April 2021 Addiiions during the year Cosi of Disposals At 5th April 2022 reciation/Amortisaiion At 6ih April 2021 Charge for ihe year Depreciation of Disposals At 5th April 2022 24,132 49.667 61.080 7.932 93.144 49,667 696 649 47 73.799 (A9 61.127 7,932 143,507 57,422 556 57,422 621 65 65 57.978 58,043 Net Book Value at 5th April 2022 73.799 3,149 7,932 85,464 Nei B(Kik Value at 5th April 2021 73.799 3,658 7.932 85.389 2022 2021 3) RENTAL INCOME RECEIVED Re: 130 Stroud Green Road. London N4. Gross Rentsl Income Less= Rental Income Expenses Nei Rental Income 26.661 17.690 18.971 26.031 6,342 19.689 4) INTEREST RECEIVED Money Markei DeTK>siIS Deposii Accounis BarÈk Ac¢ounts 60 39 82
THE MUSLIM EDUCATIONAL TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5TH APRIL 2022 2022 2021 5) ACCOUNTAf4CY FEE Independent Examination 975 975 6) STAFF REMUNERATIOP4 & SUBCONTRACTOR Staff Salaries IDirtti Chariiable Expenditure) Sales Staff Salari¢s & SUOnir2¢t0r Isale of Publications) 2.435 18.148 20.-$83 2.435 15.817 18.252 Analysed as follows: Salari¢5 Subcontractor Employer contributions to defined contribution pension scheme i ?.000 8.410 173 12.(KpO 6,079 173 Average number of paid staff during the year During Ihe vear ihere had been £nil Admini5tralive salaries as this work had been Caled oui by one of ihe Irusiees on a voluntao. basis. Ther¢ are no employees who received remunerntion of more than £60.0(K) during the year. Related Pa The Trust employ5 Dr M. K. Hasan who was pd a salary of £12.0. irnvel allowance of £?.074 and employer contributions into occupational pension scheme of £173. Dr M. K. Hasan IS the Spouse of ihe Trustee Ms Sulthna Nasreen Sarwar. 7) EDUCATIONAL GRANTS PAID Darul Khidmah Wal Falah. UK 4.800 4.81K> Related Parties: The following Trustees are also Trustees of t)arul Khidmah Wal Falah. UK.. l } Professor Ghulam Sarwar 2) Dr Faruq Nurul Arefin 3) Dr Zahirul Haq 4) Ms Sultana Nasreen Sarwar 10
THE MUSLIM EDUCATIONAL TRL'.ST NOTES TO THE Accouf4TS FOR THE YF.AR ENDED 5TH APRIL 2022 2022 21121 8) ROY ALTIES PAYABLE TO TRUSTEE Royalties Payable The ro)'alty is pavable to ihe Irustee Professor Ghulam SaN'ar as Author of the )OkS published by the TTUSI. Payment of rol'aliies io ihe Irustee (calculated at IOi/lo of gross sale5 of Trusi publications during ihe yearl had been agreed and approved by the other trusiee5. who acknowledg¢d ihat the trustee has been the sol¢ Author of ihe publicatlons unique to the Trust. In carrying out this activity. it was agreed ihal the irusiee had acted over and above yjomial Iruslee duties. This point was examined with reference to ihe Charity Commission guidelines and it is concluded Ihat it is in accordance iherewiih. 2.300 1.133 There were no other Trustees. remunerniion or other benefits paid to the Trustees by the Trnst. 9} TRUSTEE EXPENSES (SUBSCRlWtIONS & PERIODICALS) During ihe year one of the Trustees Éncurred MeMT5h1p subscription expense as follows which was paid for by the Trusl.. Membetship Subscription to Th¢ Royal Society for the encouragemeni of Arts. Manufa¢iure5 & Commerce 182 182 10} DEBT()RS AND PREPAYMENTS Debtors Ire Invoiced Trust Publicalions) Sundry. Debtors Prepayment5 7.483 500 1.023 900 11) INVESTMENTS HELD Money Market Deposils Basc Rate Deposil 78.357 50.743 1fj9.100 50.748 iO.748 12) SUNDRY CREDITORS AND ACCRUAts Sundry Crediiors AccTued exnseS 256 3.743 3.999 3.196 3,313 IJ) MOVEMENT IN FUND Balance At 61412021 Balance nditre At $1412022 Income Ex Resiricted Futul Unrestricted Fund Total Funds 800 49.675 50.475 1800) (69.5501 70.350 306.787 30(),787 326.662 326.662