# **MADINA-TUL-ULOOM AL ISLAMIYA** 

# **TRUSTEES REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2021** 

**– CHARITY REGISTRATION NUMBER 326933** 



## **MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933** 

|**MADINA-TUL-ULOOM AL ISLAMIYA**<br>**Charity Registered number : 326933**||
|---|---|
|**Contents**|**Page**|
|Adminstrative Details|**1**|
|Trustees’ Annual Report|**2-5**|
|Independent Auditor's Report|**6-8**|
|Statement of Financial Activities (SOFA)|**9**|
|Balance Sheet|**10**|
|Cash Flow Statement|**11**|
|Notes to the Financial Statements|**12-15**|





## **REFERENCE AND ADMINISTRATIVE DETAILS** 

**Charity Number** 326933 **Registered Address** Butts Lane Summerfield Kidderminster DY10 4BH **Trustees** Mr Abdullah Memi Dr Mohammed Ashraf Gulam Makadam Mr Sayeed Ahmed Peerbhaibar Mr Ahmed Ali Mr Ahmed Patas Mr Mohammed Faruq Nazir Ahmed Nana Mr Yusuf Ebrahim Lorgat Mr Maksud Ahmed Gangat **Secretary** Mr Abdullah Memi **Auditors** Mr Akbar Dedat Crystal Business Services Ltd. Chartered Accountants 264 Stoney Stanton Rd Coventry . CV1 4FP **Bankers** National Westminster Bank plc Rossendale, Lancashire. 

1 



## **MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933 Trustees'  Report** 

The Trustees present their annual report and audited financial statements for the year ended 31 August 2021 and confirm that they comply with the Charities Act 2011, the Trust Deed and the Charities SORP applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

## **Administrative Information** 

Trustees who have served for the year ended 31 August 2021 were as follows: Mr Abdullah Memi  - Chairman 

Dr Mohammed Ashraf Gulam Makadarn Mr Sayeed Ahmed Peerbhaibar Mr Ahmed Ali Mr Ahmed Patas Mr Mohammed Faruq Nazir Ahmed Nana Mr Yusuf Ebrahim Lorgat Mr Maksud Ahmed Gangat 

## **Structure, Governance and Management Introduction** 

Madinatul Uloom Al Islamiya is an independent Islamic boarding school for boys dedicated to providing Islamic as well as secular education. It is situated in tranquil surroundings four miles southeast of Kidderminster. The teaching blocks and hostels are all situated within the 22 acres of the college. This means that the students are always on site and constantly under the care and supervision of dedicated staff. Students are allocated to hostels according to their age group. 

Madinatul Uloom aims to educate the students and instil in them the teachings of the Holy Qur’an and practices of our Holy Prophet Muhammad (peace be upon him) as well as other arts and sciences.  It also strives to promote and cultivate good behaviour, morals, mutual respect and tolerance. This in turn creates a friendly, caring and motivated environment. 

## **Governing Document** 

The trust is governed by its Declaration of Trust dated 29th July 1985 and is a registered charity, number 326933. The charity was established to promote the advancement of education and the advancement of the Islamic faith by the establishment of an Institution. 

## **Management** 

The Trustees meet a minimum of three times a year, or more when required to consider all matters pertaining to the performance of the charity. The Trustees have appointed the head teacher and the senior leadership team who in turn are responsible for the day to day running and management of the school. 

## **Recruitment and Induction of Trustees** 

The recruitment and induction of new trustees lies with the Trust. Trustees are responsible for seeking suitable applicants with a range of skills, experiences and commitments who will be an asset to the charity in its establishment and growth. New applicants are recommended to the Board, followed by circulation of their CV to all trustees and a full discussion being held at an appropriate Board meeting for his /her recruitment. In making the appointment, the Board looks at the skills, qualifications, relevant experience, time commitment, suitable references and most importantly sharing the vision of the Trust. The Trust is committed to equality and diversity within the organisation. The current Board consists of people from community, education, theological, financial, marketing, buildings, human resources and charitable backgrounds, all of whom bring the necessary expertise to the work of the charity. 

## **Organisational Structure** 

The trustees may from time to time make such rules and regulations in their absolute discretion as they think fit for the management of the institution and may at any time vary such rules and regulations. At trustees‘ meetings each term the trustees agree the area of activity for the trust, policies and performance. 

2 



## **MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933 Trustees'  Report** 

## **Risk Management** 

The trustees continue to monitor and review major risks which the charity is exposed to and where necessary control and implement systems and procedures to manage these risks. 

To protect against any financial misappropriation, trustees and accounting staff regularly monitor and supervise the financial affairs of the charity. 

We believe these measures are appropriate to the charity's size and the nature of its operations. 

## **Objectives and activities** 

The objectives of the Charity are to promote the advancement of education and the advancement of the Islamic faith by the establishment of an Institution in particular for the purposes of: 

I) Training adults and children for the Islamic priesthood and for the further education of suitably qualified Islamic priests. 

2) Making adequate provision for higher studies of the Holy Quran, Hadith, Fiqh, Tafseer, Islamic History and Philosophy. 

3)  Providing all our pupils with a sound education, from key stage three through to higher education. 4) Providing a comprehensive Islamic Theology Course in accordance with the Holy Qur'an and practices of our Holy Prophet Muhammad (peace be upon him) which equips its pupils the opportunity to assume scholarly roles within their communities upon its completion. 

5) Dispensing good-quality, external, independent careers advice and support, which results in pupils obtaining a good appreciation of different career opportunities. 

6) Providing an environment in which students are encouraged to adopt, through understanding, Islamic codes of practice enhancing their spiritual development with an Islamic ethos. 

7) Providing an environment in which students are encouraged to develop self-discipline, respect for oneself, fellow students and staff; contributing towards a well ordered, safe and caring school. 

8) Creating an atmosphere of courtesy, tolerance, openness and trust which impedes abuse, intimidation, harassment, teasing and bullying; in line with British values. 

9) Safeguarding and promoting the well-being of all boarders with due attention to their physical and mental health and emotional well-being. 

10) Ensuring there are equal opportunities for all boarders regardless of their ethnic origin, culture, linguistic background and disability. 

11)  Developing an awareness and respect for differing cultures that are around us. 

12) Helping students to understand their own immediate and long-term needs and encouraging them to be sensitive to the needs and feelings of others within the school and the community at large, bettering one's own life morally and religiously as well as the lives of others. 

13) Encouraging students to exercise choice within the framework of the school and be aware of the effects of their choices upon themselves and upon those around them. 

14) Developing an awareness of the importance of good citizenship and a realisation of how, as citizens, each student is equally responsible for its maintenance. 

15) Creating an effective link with parents and guardians as major partners in the development of boarders. 

16) Nurturing each pupil into a caring, open-minded whole person, enhancing their qualities of leadership and abilities to work as part of a team such that they are knowledgeable enquirers and thinkers and prepared suitably for the next stage in their education. 

## **Achievements and Performance** 

In December 2020 the school had an assurance visit from Ofsted. This was part of a phased return to routine inspection after Ofsted had suspended all inspections due to COVID-19. The result of this visit was that inspectors did not find any ‘serious or widespread concerns in relation to the care or protection of children.’ 

3 



## **MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933 Trustees'  Report** 

In July 2021 the school had an emergency monitoring inspection. All standards that were checked were met. An excerpt from the report is reproduced below: 

_The school meets the requirements of the schedule to the Education (Independent School Standards) Regulations 2014 ('the independent school standards'), the national minimum standards for boarding schools and associated requirements that were checked during this inspection._ 

In November 2022 and January 2023, there were further visits from Ofsted. Some issues were raised which the trustees feel have been addressed. At the date of this report a further follow up visit is anticipated. 

Apart from the above inspections the school completed the construction of the WC and ablution area in the main block. The staff and students now have access to brand new WC and ablution area complete with underfloor heating. 

The school continues to upgrade and refurbish the accommodation blocks as and when needed. 

The GCSE grades were the best to date with 100% of the students achieving at least 9 – 4 grades. 

## **Financial Review** 

A summary of the year's finances can be found on the subsequent pages of the financial statements. 

The school's principal funding source is from school fees and donations. Overheads remained fairly consistent after taking into account the increased staff costs due to the extra demand for the teaching staff to achieve a good teacher student ratio. 

## **Reserves Policy** 

The Trustees considers holding unrestricted reserves amounting to approximately three months' average expenditure. At this level, the Trustees feel they would be able to continue the current activities of the charity in the event of a significant drop in funding. 

The Board of Trustees is satisfied with the performance of the charity during the period and the position at April 2023 and considers the charity in a strong position to continue its activities during the coming year. 

## **Future Plans** 

The Board of Trustees' future plans are to: 

*  Ensure the school is stays fully compliant and that all standards are continuously met. 

* Continue to provide good quality education by investing in resources, training and staffing. 

* Complete the construction of the multi-purpose hall which will house the Islamic theology, hifz and tajweed classes. The hall will also be used for assemblies, seminars and examinations. * Complete the construction of a dedicated dining area which will be equipped with modernised equipment. 

## **Trustee's Responsibilities in relation to the Financial Statements** 

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

4 



MADINA-TUL-ULOOM AL ISLAMIYA
Charity Registered number . 326933
Trustees. Report
Law applicable to charities in England and Wales requi￿$ the trustees lo prepare financial
statements for ea¢h financial year which give a true end fair view of charity and of the incorning
resources and application of resources of the charity for that year. in preparing these financial
statements Ihe trustees are required to-.
Select suitable accounting policies and then appty them consistenty
Observe the method and principles in the charities SORP IFRS102}
Make judgrnen15 antj estimates that are reasonable and prudent
Stale whether applicable accounting stsndards have been folbwed. subject to any material
departures disclosed and explained in the financial statements
Prepare the financial statements on the going ¢on¢em basis unle55 it 15 inappropriate lo presume
that the ¢haritv will continue
The Iruslees are responsible for keeping proper ac¢ounts"ng records which disclose wilh reasonable
a¢cura¢y at any time the financial posil¢on of the charity and enable them lo ensure that the financial
statements comply with the Charities Act 2011 and the regulations made under that Act. They are
also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for
the prevention and detection of fraud and other irregukrities.
This report was approved by the trustees on 3rd May 2023.
..Name..............................................................

## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933** 

## **Opinion** 

We have audited the financial statements of Madina-Tul-Uloom Al Islamiya for the year ended 31st August 2021 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion the financial statements: 

• give a true and fair view of the state of the charity's affairs as at 31st August 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

• 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. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

6 



## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MADINA-TUL-ULOOM AL ISLAMIYA Charity Registered number : 326933** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- the charity has not kept adequate accounting records; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on pages 4 and 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

7 



INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF
MAOINA-TUL-ULOOM AL ISLAMIYA
Charity Registered number . 326933
Oblain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the ¢ircumstances. bul nol for the purpose of expre55ing an
opinion on the effectiveness of the charity's internal control.
. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related diselosures made by the trustees.
Conclvde on the appropriateness of the trustees. use of the going concem basis of accountin9
and, based on the audit evidence obtained. whether a material uncertainty exists related lo events
or condilions that may cast significant doubt on the charity's ability lo continue as a going concem.
If we conclude that a material uncertainty exists, we are required lo draw attention in our auditorfs
report lo the related disclosures in the financial statements or, rf such disc105ure5 are inadequate,
lo modify our opinion. Our conclusions are based on the audit evidence obtsined up to the dale of
OUT audilorfs report. However. fvture events or condiiions may cause the charty lo cease lo
continue as a going concem.
Evaluate the overall presentation, structure and content of the financial statements. including the
disclosures. and whether the financial slatemenls represent the undeflying transacbons and events
in a manner that ach￿Ve5 fair preSentat￿n li.e. gives a Irue and fair view).
We communicate with those char9ed with 9oveman¢e regarding. among other matters. the
planned scope and liming of the audtt and s￿nIficant audit findings. including any significant
deficiencies in internal control that we Klentify during our audiL
Use of our report
This report is made solely lo the charity's Iruslees. as a body. in accordance wlh Part 4 of the
Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that
we might slate to the charity's trustees those matter5 we are required to stste to them in an
auditor's report and for no other purpose. To the fullest exlenl pemiitted by law. we do not accept or
assume responsibility to anyone other than the Charity and the Charity's trustees as a body. for our
audit work. for this report. or for the opinions we have fofmed.
MR AKBAR DEDA T (Senior Statutory Auditor)
For and on behalf of..
CR YsfAL BUSINESS SER VICES L TD
Chartered Ac¢ountantthegistered Auditor
264, Ston&y Stanton Road. Coventry. GVI 4FP.
Crystal Business Serwces Ltd. is eligible to a¢t as an 8uditor ITn temis of section 1212 of th8
Companies Act 2006.
3rd May 2023

## **MADINA-TUL-ULOOM AL-ISLAMIYA Statement of Financial Activities - (Income and Expenditure Account) Year Ended 31st August 2021** 

|**Notes**<br>**INCOMING RESOURCES**<br>Donations<br>1<br>Incoming resources from charitable activities<br>1<br>**_Total incoming resources_**<br>**RESOURCES EXPENDED**<br>**Charitable activities**<br>Catering<br>Staff costs<br>2<br>Job retention scheme grants<br>School stationery, examination fees,training<br>**Support Costs**<br>Office costs<br>Repairs and Maintenance<br>Rates<br>Travel<br>Utilities<br>Waste collection, cleaning<br>Insurance<br>Bank charges<br>Leasing costs<br>Miscellaneous expenses<br>Depreciation<br>4<br>**Governance costs**<br>Accountancy and legal fees<br>Inspection costs<br>**_Total resources expended_**<br>**NET INCOMING RESOURCES**<br>**Balance at 1st September 2020**<br>**TOTAL FUNDS CARRIED FORWARD**|**31/08/21**<br>£<br>657,211<br>603,173<br>**1,260,384**<br>62,221<br>499,980<br>(116,993)<br>16,880<br>462,088<br>3,300<br>41,245<br>9,074<br>1,531<br>77,223<br>7,509<br>4,100<br>3,322<br>5,070<br>2,128<br>69,433<br>223,935<br>-<br>5,183<br>5,183<br>**691,206**<br>**569,178**<br>**2,792,622**<br>**3,361,800**|**31/08/20**<br>£<br>125,497<br>527,734|
|---|---|---|
|||**653,231**|
|||49,241<br>499,833<br>(56,487)<br>31,733|
|||524,320|
|||8,010<br>14,549<br>8,588<br>418<br>71,850<br>10,236<br>3,198<br>-<br>-<br>-<br>40,709|
|||157,558|
|||3,000<br>3,351|
|||6,351|
|||**688,229**|
|||**-34,998**|
|||**2,827,620**|
|||**2,792,622**|



9 



MADINA-TUL-ULOOM AL4SLAMIYA
Balance Sheet
as at 31st August 2021
Notes
2021
2020
Fixed assets
Tangible assets
3.198.691
2.912,770
Current assets
Debtors
Cash at bank and in hand
4.628
287,216
291.844
24.373
54,149
78.522
Creditors: amounts falling due within one year
{51.210)
(80.845)
Nel current assets
240.634
-2.323
Total assets le￿ current Ilabllltles
3.439.325
2.910,447
Credltors: amounts falling due after one year
177.5251
(117,8251
Net assets
3,361.800
2.792,622
FUNDS
Unrestrfeted funds
Transfer from pemianent endowment
1.657,294
117.973
1.775.267
1,088.116
1,088.116
117,973
1.586,S33
Permanent endowment
Revaluation reserve
1.586.533
Total Funds
3,361,800
2,792,622
The financial statements were approved by the Board of Trustees and authorised for issue
on 3rd May 2023.
rt13.&)..u.L LA.F.i... ...¢L4.C j
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10

## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MADINA-TUL-ULOOM AL ISLAMIYA Cash Flow Statement - Year Ended 31st August 2021** 

|**Cash Flows From Operating Activities**<br>Net Incoming Resources (exc. interest earned)<br>Depreciation<br>Movements in Debtors<br>Movements in Creditors<br>**Cash Flows From Investing Activities**<br>Purchase of Fixed Assets<br>Capital grants received<br>Changes in Cash/Cash equivalents<br>Cash/ Cash equivalents At 1st September 2020<br>**Cash/ Cash equivalents At 31st August 2021**<br>**Analysis of Cash/Cash Equivalents**<br>Bank account balances<br>Cash in hand|**2021**<br>**£**<br>569,178<br>69,433<br>19,745<br>(69,935)<br>588,421<br>(355,354)<br>233,067<br>54,149<br>**287,216**<br>282,338<br>4,878<br>**287,216**|**2020**<br>**£**<br>(34,998)<br>40,709<br>(9,086)<br>79,127|
|---|---|---|
|||75,752<br>(54,768)<br>-|
|||20,984<br>33,165|
|||**54,149**|
|||47,172<br>6,977|
|||**54,149**|



11 



## **MADINA-TUL-ULOOM AL ISLAMIYA Notes to the Accounts For The Year Ended 31st August 2021** 

## **1  ACCOUNTING POLICIES** 

Basis of Preparation 

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 201 l. 

The trust constitutes a public benefit entity as defined by FRS **l** 02. 

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. 

## **Reconciliation with previous Generally Accepted Accounting Practice** 

In preparing that accounts, the trustees have considered whether in applying the accounting policies required by FRS **l** 02 and the Charities SORP FRS I02 a restatement of comparative items was needed. No restatements were required. 

## **Incoming Resources:** 

## **Donations, legacies and similar incoming resources** 

These are included in the Statement of Financial Activities (SOFA) when: 

- the charity becomes entitled to the donation, legacy or similar income and any conditions for receipt are met. 

-  the trustees are reasonably certain they will receive it; and 

- the trustees are reasonably certain that the value can be reliably measured. 

## **Tax reclaims on donations and gifts** 

Incoming resources from tax claims are included on the SOFA at the same time as the gift to which they relate, to the extent that tax recoverability is certain. 

## **Incoming resources from fund raising** 

These are reported gross in the SOFA. 

## **Gifts in kind for sale or distribution** 

These are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. 

## **Gifts in kind for use by the charity** 

These are included in the SOFA as incoming resources when receivable 

## **Intangible income (e.g. donated facilities)** 

This is only included in the accounts when the benefit received is actually quantifiable, receivable and material, and the cost is being borne by a third party. When included it is valued at the lower of the cost borne by the third party, and the reasonable estimate of the value to the charity 

## **Investment income** 

This and any associated tax credits are included in the accounts when receivable. 

## **Expenditure & Liabilities:** 

## **Liability recognition** 

Generally liabilities are recognised as soon as there is a legal obligation or constructive obligation committing the charity to expenditure 

12 



**MADINA-TUL-ULOOM AL ISLAMIYA Notes to the Accounts For The Year Ended 31st August 2021** 

## **Assets:** 

## **Tangible fixed assets for use by the charity** 

These are only capitalised when they can be used for more than a year and cost more than £250. They are valued at cost or a reasonable value on receipt. The charity does not have a policy of revaluation. Depreciation is charged on a reducing balance basis over the estimated useful life of the underlying asset. The following rates apply: 

Plant & Equipment 25% reducing balance Buildings 2% reducing balance 

## **Value Added Tax** 

Expenditure is shown inclusive of VAT. 

## **Funds** 

Restricted 

Restricted funds are subject to specific conditions imposed by the donors 

## Permanent Endowment 

The capital of such funds will be held until the objectives of the Trust are satisfied. 

## **2 SALARIES AND WAGES** 

Detailed information covering all the employees of the charity: 

|Gross wages and salaries<br>including Employer's NI costs and Pension contributions<br>Total staff costs<br>Average number of employees for the year|**Total**<br>**2021**<br>**£**<br>487,489<br>12,491<br>499,980<br>47|**Total**<br>**2020**<br>**£**<br>488,583<br>11,250|
|---|---|---|
|||499,833|
||||
|||48|



(No employees were paid more than £60,000). 

The trustees received no pay in executing their duties as trustees. However, they received remuneration for the following services. 

|<br>the following services.||||
|---|---|---|---|
|||**Role**|**Salary (£)**|
|Mr Abdullah Memi|Head Teacher||11,358|
|Mr Mohammed Faruq Nazir Ahmed Nana||Teacher|10,237|
|Mr Yusuf Ebrahim Lorgat||Teacher|11,358|



All payments are sanctioned by the Governance Documents as allowed by the Charity Commission. Had the Charity employed external individuals to fill these positions then the cost to the Charity would have been significantly higher. 

## **3 TRUSTEES AND OTHER RELATED PARTIES** 

Trustee Expenses: 

No expenses were paid to trustees during the year. 

## Related party transactions: 

There were no related party transactions of the charity in the period. 

13 



## **MADINA-TUL-ULOOM AL ISLAMIYA Notes to the Accounts For The Year Ended 31st August 2021** 

## **4.TANGIBLE FIXED ASSETS** 

|**£**<br>**Cost**<br>At 1st September 2020<br>3,187,030<br>Additions<br>341,864<br>At 31st August 2021<br>3,528,894<br>**Depreciation**<br>At 1st September 2020<br>278,470<br>Charge for year<br>65,008<br>At 31st August 2021<br>343,478<br>**Net Book Value**<br>At 31st August 2021<br>3,185,416<br>At 31st August 2020<br>2,908,560<br>**5. DEBTORS**<br>Trade debtors & prepayments<br>**6  CREDITORS: Amounts falling**<br>**due within one year**<br>Trade Creditors & Accruals<br>**7.CREDITORS: Amounts falling**<br>**due after one year**<br>Personal Loans<br>**Land &**<br>**Buildings**|**£**<br>63,148<br>13,490<br>76,638<br>58,938<br>4,425<br>63,363<br>13,275<br>4,210<br>**2021**<br>4,628<br>15,250<br>**2021**<br>51,210<br>51,210<br>**2021**<br>**£**<br>77,525<br>77,525<br>**Plant &**<br>**Equip -**<br>**ment**|**Totals**<br>**£**<br>3,250,178<br>355,354|
|---|---|---|
|||3,605,532<br>337,408<br>69,433|
|||406,841<br>3,198,691|
|||2,912,770|
|||**2020**<br>24,373|
|||24,373<br>**2020**<br>80,845|
|||80,845|
|||**2020**<br>**£**<br>117,825|
|||117,825|



The loan to the Charity is interest free, unsecured and not repayable on demand. 

## **8 CONTINGENT LIABILITIES** 

Except as reflected in the Financial Statements, there were no contingent liabilities at 31 August 2021 (2020: £NIL) 

## **9 OTHER INFORMATION** 

1. Capital Commitments 

There were no capital commitments at the year end. 

2. The charity has not given any guarantees to third parties that could be called on at the year end. 

_3._ The charity has not granted any loans that are outstanding at the year end to any institution associated with the charity. 

_4_ The charity did not make any ex-gratia payments during the year. 

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## **MADINA-TUL-ULOOM AL ISLAMIYA Notes to the Accounts For The Year Ended 31st August 2021** 

## **10 DECLARATIONS BY TRUSTEES** 

## **Designated Funds** 

The charity does not have any designated funds. 

## **Discontinued, continuing and acquired operations** 

All the charity's operations are continuing and there no operations that were discontinued or acquired during the year. 

## **Permanent Endowment Fund** 

The trustees, after having made all enquiries with previous professional advisors and trustees, have decided that this fund is no longer appropriate. They have decided to move it to unrestricted funds. 

## **Revaluations** 

None of the charity's functional fixed assets have been revalued during the year. 

## **Subsidiaries** 

The charity has no subsidiary undertakings. 

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