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 Re￿rt 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 0￿1¢¢. 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 N￿em. 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) deri￿ed from the sale pr￿eedS 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 ￿e￿iled 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 PrO￿rtY 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 pre￿ratIOn 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 Ca￿l¢d out under Section 145 of the 2011 Act. In carrying out my examination I have followed all Ihe applicable Dircctions gI￿en 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'trJc￿I kund Un￿5￿Cla fund 2021 1022 R¢stri¢*d Fund LItW¢5triei¢d Fund 2021 2021 T￿al 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¢rrting 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 Tr￿51 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 fInar￿la1 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 r￿ogniSed 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 & SU￿Onir2¢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 Ca￿led 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 p￿d 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 MeM￿T5h1p 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 ex￿nseS 256 3.743 3.999 3.196 3,313 IJ) MOVEMENT IN FUND Balance At 61412021 Balance ndit￿re 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