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

# **TRUSTEES REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2023** 

**– 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 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 2023 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 2023 were as follows: Mr Abdullah Memi  - Chairman 

Dr Mohammed Ashraf Gulam Makadam (also holding trustee) Mr Sayeed Ahmed Peerbhai (also holding trustee) Mr Ahmed Ali Mr Ahmed Patas (also holding trustee) Mr Mohammed Faruq Nazir Ahmed Nana 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 charity 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: 

1) 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 lslamic 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. The trustees believe that in furthering the objectives the interests of  'public benefit' is served. 

## **Achievements and Performance** 

In October 2022 the school had a full 3-day school inspection. The school had an overall judgement of 'inadequate'. There were number of standards which were not met and safeguarding was not effective on this occasion. 

3 



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

We had a monitoring social care inspection in January 2023 wherein safeguarding was effective and the standard relating to safeguarding was met. However, there were still some standards related to boarding which were unmet. 

In July 2023 and February 2024 there were further monitoring inspections from both social care and school. The trustees are pleased to report that many of the 'testing areas' by Ofsted were reported as good and the school met the independent school standards. 

Refurbishment works continued in the boarding blocks with painting bedrooms and hallways as well as new furniture in some bedrooms. 

The annual graduation ceremony took place in July 2023 wherein 8 students graduated as Islamic scholars. 

## **Financial Review** 

There was a £74,001 increase in donations and collections compared to the previous financial year. The donations and collections were well below the levels in recent years, however, the requirement for substantial donations and collections is no longer there because of the recently completed new constructions. There was also an increase in income from charitable activities. During the year, the overall liquid funds fell by £52,986, due to the purchase of fixed assets amounting to £73,495 and the general reduction in amounts owed by the charity. 

After a depreciation charge of £108,900 the net outgoing resources amounted to £46,326 (2021/22-net outgoing resources £96,873). The charity still had unrestricted funds in excess of £3.2m as at 31st August 2023. 

## **Reserves Policy** 

Although the unrestricted reserves are very high, the trustees were not pleased with the low amount of liquid funds as at 31st March 2023. We would prefer to hold sufficient liquid funds to fund at least three months' expenditures. The liquidity situation does improve substantially in the subsequent financial 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. 

* Although there are no imminent construction plans, the trustees' intentions in the long-term are to renovate the dining area and install modern equipment. 

## **Statement of Trustees‘ Responsibilities** 

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 Waks requires the trustees to prepare financial statements
for each financial year which gnre a true end fair view of charity and of the incoming resources and
application of resources of the charity for that year. in preparing these financial statements the Iruslees
are required to..
Select Suitab￿ accounting policies and then apply them con5rslently.
Observe the method and principles in the charities SORP IFRS 1021.
Make judgments and eslimales that are reasonable and prudent
Stale whether applicable accounting standards have been followed. sublecl lo any materlal departures
disclosed and explained in the financial slatemenls.
Prepare the financial slalemenls on the going coneern basis unless 11 is inappropriate to presume that
the charity will continue.
The trustees are responsible keeping p¥oper accounting records which disclose with reasonable
accuracy al any lime the financial position of the charity and enable them lo ensure that the financial
statements comply wrth the Charities Act 2011 and the regulalioiis rnade 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 irregularities.
This report was approved by the trustees on 27th June 2024.
fiaftjrt ￿j￿n?)

MADINA-TUL-ULOOM AL ISLAMIYA
Charity Registered number: 326933
Trustees. Report
Law applicable to charities in England and Waks requires the trustees to prepare financial statements
for each financial year which gnre a true end fair view of charity and of the incoming resources and
application of resources of the charity for that year. in preparing these financial statements the Iruslees
are required to..
Select Suitab￿ accounting policies and then apply them con5rslently.
Observe the method and principles in the charities SORP IFRS 1021.
Make judgments and eslimales that are reasonable and prudent
Stale whether applicable accounting standards have been followed. sublecl lo any materlal departures
disclosed and explained in the financial slatemenls.
Prepare the financial slalemenls on the going coneern basis unless 11 is inappropriate to presume that
the charity will continue.
The trustees are responsible keeping p¥oper accounting records which disclose with reasonable
accuracy al any lime the financial position of the charity and enable them lo ensure that the financial
statements comply wrth the Charities Act 2011 and the regulalioiis rnade 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 irregularities.
This report was approved by the trustees on 27th June 2024.
fiaftjrt ￿j￿n?)

MADINA-TUL-ULOOM AL ISLAMIYA
Charity Registered number: 326933
Trustees. Report
Law applicable to charities in England and Waks requires the trustees to prepare financial statements
for each financial year which gnre a true end fair view of charity and of the incoming resources and
application of resources of the charity for that year. in preparing these financial statements the Iruslees
are required to..
Select Suitab￿ accounting policies and then apply them con5rslently.
Observe the method and principles in the charities SORP IFRS 1021.
Make judgments and eslimales that are reasonable and prudent
Stale whether applicable accounting standards have been followed. sublecl lo any materlal departures
disclosed and explained in the financial slatemenls.
Prepare the financial slalemenls on the going coneern basis unless 11 is inappropriate to presume that
the charity will continue.
The trustees are responsible keeping p¥oper accounting records which disclose with reasonable
accuracy al any lime the financial position of the charity and enable them lo ensure that the financial
statements comply wrth the Charities Act 2011 and the regulalioiis rnade 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 irregularities.
This report was approved by the trustees on 27th June 2024.
fiaftjrt ￿j￿n?)

## **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 2023 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 2023, 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 

- sufficient accounting records have not been kept ; 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 non-compliance 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
MADINA-TUL-ULOOM AL ISLAMIYA
Charity Registered number . 326933
. Obtain an understandirvJ of inlemal contrc4 rele￿t to the audit in order to deswJn audit procedures
that are approprrale in the circumstances. bul not for the purpose of expressing an opinion on the
effectiveness of the chanws intemal control.
. Evaluate the approprtaleness of accounting policies used and the reasonableness of accounting
eslimales and related dischjsures made by the trustees.
Conclude on the appropriateness of the trustees, use of the going concem basis of aceounting and,
based on the audrt emdence obtained. whether a material uncertainty exists reiated lo events or
conditions th81 may east 5wnrfKant doubt on the chartys abilty to continue as a going concern. If we
conclude that a material uncertainty exists. we are required lo draw attention in our auditorfs report to
the related discbsures in the financial sL*emenls or. rf such disclosures are inadequate. lo modfy our
opinion. Our conclusions are based on the audit evidence obtained up lo the dale of our auditor's report.
However. future events or condrtions may cause the chanty lo cease to continue as a going concem.
Evaluate the overall presentslion. Structu￿ and content of the financial ststemenls, including the
disclosures. and whether the finanek81 slalements represent the undetying transactions and events in a
manner that achieves fair preSentat￿n li.e. gNes a trne and fair viewl.
We communicate %wth those charged with govemants regarding, among other matters, the ptanned
scope and liming of the audit and significant audit findings. including any sJgnrf¢ant deficiencies in
intemal control that we idenlify during our audil.
Use of our report
This ￿port is made solely lo the charitrfs trustees. as a body. in accordanee wilh Part 4 of the Charities
(Accounts and Reports) Regulat￿*n5 2008. Our audit worf( h8s been undertaken so that we might stale
to the chartys ttustees those matters we are required to $￿e lo them in an auditorfs report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty lo
anyone other than the charity and the thatit￿$ trustees as a bc*ty. for our audri work. for this report. or
for the opinions we have fomied.
MR AK8AR DEDA T fsenior SlatuloryAuditorJ
For and on behalfof..
CR YsfAL BUSINESS SER VICES L TD
Chartered Accountants/Reg￿tef8dAudIt0r
264, Stoney Stanton Road. Coventry. CV14FP.
Crystal 8usiness Swvices Ltd. ￿ eluible for appintmenl as auditor of the charity by virtue ofit's eligibilty
forappoinlmenlas audrforofa company UnderSeCti￿ 1212 of Ihe Companies Acl 2006.
27th June 2024

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

## **Statement of Financial Activities - (Income and Expenditure Account) Year Ended 31st August 2023** 

|**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>Legal expenses<br>Leasing costs<br>Miscellaneous expenses<br>Depreciation<br>4<br>**Governance costs**<br>Inspection costs<br>**_Total resources expended_**<br>**NET INCOMING RESOURCES**<br>**Balance at 1st September 2022**<br>**TOTAL FUNDS CARRIED FORWARD**|**31/08/23**<br>£<br>226,960<br>771,129<br>**998,089**<br>101,046<br>575,328<br>-<br>12,861<br>689,235<br>3,467<br>20,985<br>54,721<br>235<br>141,379<br>5,484<br>4,823<br>2,476<br>-<br>4,290<br>458<br>108,900<br>347,218<br>7,962<br>7,962<br>**1,044,415**<br>**(46,326)**<br>**3,264,927**<br>**3,218,601**|**31/08/22**<br>£<br>192,959<br>703,913|
|---|---|---|
|||**896,872**|
|||97,623<br>521,368<br>(31,555)<br>15,130|
|||602,566|
|||3,315<br>31,730<br>96,303<br>2,240<br>129,151<br>8,319<br>4,593<br>2,513<br>2,460<br>5,070<br>132<br>101,002|
|||386,828|
|||4,351|
|||4,351|
|||**993,745**|
|||**(96,873)**|
|||**3,361,800**|
|||**3,264,927**|



## _**ALL OF THE ACTIVITIES ARE CONTINUING**_ 

9 



MADINA-TUL-ULOOM AL-ISLAMIYA
Balance Sheet
as at 31st August 2023
Not9$
2023
2022
Flxed assets
Tangible assets
3.377,040
3,412,445
Current assets
Debtors
Cash a bank and in hand
12,076
20.115
32,191
4,052
73,101
Tl.153
Creditors: amounts falllng due wlthln one year
(190,630)
{212.670)
Net current assets
158,439
135,517
Total assets less current liabilities
3,218,601
3,276.928
Creditors: amounts falling due aftgr one ygar
112,0001
Net assets
3.218,601
3,264.928
FUNDS
Unrestricted funds
Revaluation reserve
1,632,068
1,586,533
1,678,395
1,586,533
Total Funds
3.218.601
3,264.928
The financial slalements were approved by the Board of Trustees and aulhorised for issue
on 27th June 2024.
NaMe....0..￿￿.l4 L L h.¥1.......HE
10

## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MADINA-TUL-ULOOM AL ISLAMIYA Cash Flow Statement - Year Ended 31st August 2023** 

|**Cash Flows From Operating Activities**<br>Net Incoming Resources<br>Depreciation<br>Movements in Debtors<br>Movements in Creditors<br>**Cash Flows From Investing Activities**<br>Purchase of Fixed Assets<br>Changes in Cash/Cash equivalents<br>Cash/ Cash equivalents At 1st September 2022<br>**Cash/ Cash equivalents At 31st August 2023**<br>**Analysis of Cash/Cash Equivalents**<br>Bank account balances<br>Cash in hand|**2023**<br>**£**<br>(46,326)<br>108,900<br>(8,024)<br>(34,041)<br>20,509<br>(73,495)<br>(52,986)<br>73,101<br>**20,115**<br>18,672<br>1,443<br>**20,115**|**2022**<br>**£**<br>(96,873)<br>101,002<br>576<br>95,935|
|---|---|---|
|||100,640<br>(314,755)|
|||-214,115<br>287,216|
|||**73,101**|
|||68,702<br>4,399|
|||**73,101**|



11 



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

## **Notes to the Accounts For The Year Ended 31st August 2023** 

## **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 102 and the Charities SORP FRS 102 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 2023** 

## **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 the fixed assets over the estimated useful life of the underlying asset. The following rates apply: 

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

The trustees have decided to provide depreciation on the buildings on a straight-line basis from this year (previously reducing balance basis). This has increased the depreciation provision on the buildings by £8,221. 

## **Value Added Tax** 

Expenditure is shown inclusive of VAT. 

## **Funds** 

All of the charity funds are unrestricted. 

## **2 SALARIES AND WAGES** 

Detailed information covering all the employees of the charity: 

|Gross wages and salaries<br>Employer's NI costs and Pension contributions<br>Total staff costs<br>Average number of employees for the year|**Total**<br>**2023**<br>**£**<br>559,005<br>16,323<br>575,328<br>50|**Total**<br>**2022**<br>**£**<br>507,164<br>14,204|
|---|---|---|
|||521,368|
||||
|||49|



(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. 

||**Role**|**Salary (£)**|
|---|---|---|
|Mr Abdullah Memi|Head Teacher|12,334|
|Mr Mohammed Faruq Nazir Ahmed Nana|Teacher|10,279|



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: 

Apart from the above salaries, there were no related party transactions of the charity in the period. 

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## **MADINA-TUL-ULOOM AL ISLAMIYA Notes to the Accounts For The Year Ended 31st August 2023** 

## **4.TANGIBLE FIXED ASSETS** 

|**£**<br>**Cost**<br>At 1st September 2022<br>3,723,301<br>Additions<br>39,106<br>At 31st August 2023<br>3,762,407<br>**Depreciation**<br>At 1st September 2022<br>411,074<br>Charge for year<br>75,248<br>At 31st August 2023<br>486,322<br>**Net Book Value**<br>At 31st August 2023<br>3,276,085<br>At 31st August 2022<br>3,312,227<br>**5. DEBTORS**<br>Trade debtors & prepayments<br>**6  CREDITORS: Amounts falling**<br>**due within one year**<br>Trade creditors & accruals<br>Accrued expenditures<br>**7.CREDITORS: Amounts falling**<br>**due after one year**<br>Personal loans<br>**Land &**<br>**Buildings**|**£**<br>196,986<br>34,389<br>231,375<br>96,769<br>33,652<br>130,421<br>100,954<br>100,217<br>**2023**<br>12,076<br>**2023**<br>190,630<br>-<br>190,630<br>**2023**<br>**£**<br>-<br>-<br>**Plant &**<br>**Equip -**<br>**ment**|**Totals**<br>**£**<br>3,920,287<br>73,495|
|---|---|---|
|||3,993,782<br>507,843<br>108,900|
|||616,743<br>3,377,039|
|||3,412,444|
|||**2022**<br>4,042|
|||**2022**<br>97,670<br>115,000|
|||212,670|
|||**2022**<br>**£**<br>12,000|
|||12,000|



These loans are interest-free and were all paid in December 2022. 

## **8 CONTINGENT LIABILITIES** 

Except as reflected in the financial statements, there were no contingent liabilities at 31 August 2023 (2022: £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 2023** 

## **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. 

## **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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