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2020-07-31-accounts

REGISTERED CHARITY NUMBER: 702652

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2020

FOR

LEICESTER ISLAMIC ACADEMY

Watergates Ltd (Statutory Auditor) 109 Coleman Road Leicester Leicestershire LE5 4LE

LEICESTER ISLAMIC ACADEMY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2020

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Page
Reference and Administrative Details 1
Trustees' Report 2 to 15
Report of the Independent Auditors 16 to 17
Statement of Financial Activities 18
Statement of Financial Position 19
Statement of Cash Flows 20
Notes to the Statement of Cash Flows 21
Notes to the Financial Statements 22 to 31
Detailed Statement of Financial Activities 32 to 34
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LEICESTER ISLAMIC ACADEMY

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST JULY 2020

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TRUSTEES Mr A H I Patel
Mr A Patas
Mr H I Suleman
Mr I A Desai
Dr M A Makadam
Mr A Mahomed
Dr M H Mukadam
Mr M Suleman
PRINCIPAL ADDRESS 320 London Road
Leicester
Leicestershire
LE2 2PJ
REGISTERED CHARITY NUMBER 702652
AUDITORS Watergates Ltd (Statutory Auditor)
109 Coleman Road
Leicester
Leicestershire
LE5 4LE
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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

The trustees present their report with the financial statements of the charity for the year ended 31st July 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Mission Statement

Leicester Islamic Academy is an Islamic school and educational centre for the Muslim community. The very foundation of the school is based on the Qur'an and traditions (Sunnah) of the Holy Prophet Muhammad (PBUH). The school sees each pupil as being of equal worth and deserving of the school's best efforts. The school is committed to excellence. All its members are encouraged to realise their full potential and worth in order to take their place as responsible and contributing members of the wider society.

School Motto

Excellence Everyday

School Values

H onesty E quality A spiration R esilience T hankfulness

Attendance

Intent

Leicester Islamic Academy ensures the best for all its pupils to enjoy learning and to attend school without missing a day. An action plan has been put into place: this is a working document, allows the analysis of attendance and punctuality.

Implement

Implementation of a new school's Management system (SIMS) attendance registers last year has been an asset on tracking the daily attendance and punctuality. It also allows us to have regular updates on the following:

Authorised absence means that the School has either given approval in advance for a student of compulsory school age to be away, or has accepted an explanation offered afterwards as justification for absence.

Unauthorised absence is where the School is not satisfied with the reasons given for an absence.

Number of minutes each individual is late. This permits us to track the pupil every term and gives us a report which then can be shared with individual parents.

Attendance Data/reports can be printed for pupils with persistent absences allowing the Attendance office to arrange meetings with the individual parents.

This system is very beneficial as all this data was manually imputed by admin/attendance officer.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

'Session' is a term related to the recording of absence data - every school day must have two 'sessions' (morning and afternoon) divided by a break for which attendance must be recorded.

Impact

At LIA we expect 100% attendance from all pupils including F1 and F2. Exceptions are made when children are unwell and we keep accurate records of attendance of pupils and these records are inspected by various agencies. Parents/Guardians must explain a child's absence from school by a letter, a phone call or by visiting the school in person.

However, although as an Independent School there is no official EWO, LIA is in regular contact with The EWO Grace Mistry/Fiona Leavis. This has ensured all queries and concerns for any absences or leavers are passed onto the LA. Also updated regulations are passed on immediately.

Strategies for the promotion of Attendance:

Average attendance for the academic year 2019/2020 (28/08/2019 - 22/03/2020)

F1 - Yr6 93.20% Yr1 - Yr6 93.90%

Detailed attendance for the academic year 2019/2020

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||| |---|---| |Year Groups|%age attendance| |Nursery|92.6%| |Reception|91.0%| |Year 1|92.0%| |Year 2|94.2%| |Year 3|93.1%| |Year 4|94.7%| |Year 5|93.9%| |Year 6|95.3%| |Children on roll for the academic year 2019/2020| |August 2019|242| |September 2019|243| |October 2019|242| |November 2019|242| |December 2019|238| |January 2020|241| |February 2020|239| |March 2020|240|

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

The curriculum development and progress

LIA aims to provide a broadly based and balanced curriculum.

From September 2014, LIA has implemented the New Curriculum. At LIA we cater for children from 3 -11. We promote Islamic, spiritual and moral values and preserve the ethos of the school and ensure the inclusion of all pupils. We aim to prepare pupils for their lives as responsible Muslim adults in the wider society. We also aim to educate all pupils to become successful learners, to work hard with sincerity, enjoy learning, pursue excellence and become life-long learners and achievers.

Children are taught to respect one another, themselves and the community. We have very high expectations of our children in terms of their behaviour and academic achievements. We reinforce high quality teaching through inviting visitors to the school and learning outside the classroom, by going on educational trips.

EYFS

The Early Years Foundation Stage (EYFS) at the school consists of Nursery (Foundation Stage 1) and a Reception (Foundation Stage 2). In this phase, the children follow the EYFS curriculum. The curriculum covers seven areas of learning. These are divided into Prime areas and Specific areas:

Prime Areas

Specific Areas

In all areas of learning, the Islamic ethos and values are implemented and promoted as are the British values. Additionally, children also receive a Religious Studies lesson and an Arabic lesson during their school week.

In the EYFS, the Fundamental British Values are promoted through every day activities. These are not separate lessons taught. They are implicitly embedded in the Early Years and have been so since September 2014. The fundamental British values are promoted by the EYFS curriculum and the Islamic ethos. These are linked to the areas of learning, particularly Personal, Social and Emotional Development and Understanding the World. Now they are being more explicitly expressed.

KS1/KS2

From Year 1 children are taught English, Maths, Science, History (including Islamic History), Geography, Religious Education, Arabic, Computing, Physical Education, Art, Design and Technology and PSHEE (Personal, Social, Health, Economic Education).

All lessons are underpinned with Islamic values and children are taught how to apply the academic knowledge within the Islamic framework in their daily life. The day begins with du'aas in the playground followed by recitation of the last 10 surahs of the Qur'aan in the classroom after registration. Children in the EYFS also have the opportunity to recite the last 10 surahs. Children memorise the hadith of the week and are given an opportunity to discuss current affairs.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Religious Education encourages pupils to develop a sense of identity and belonging. It enables them to flourish individually within their communities and as citizens in a pluralistic society and the global community; thus enabling them to nurture self-respect, confidence and to raise their self-esteem. This will help permit them to integrate successfully in the multicultural society without compromising their Islamic Beliefs.

Personal and Social Education

PSHEE/SEAL (Social, emotional Aspects of Learning) curriculum revolves around 6 main topics which are taught each half term across the whole school. These topics are:

Islam and Citizenship (ICE) for Key Stage 2 only - The aim of ICE is to teach the National Curriculum of SEAL/Citizenship through an Islamic perspective:

Fundamental British Values

The fundamental British values are as follows:

The Fundamental British Values are actively promoted throughout the school and are included in our ethos. As an Islamic school, the Fundamental British Values compliment the values promoted by our Islamic teachings. The children are taught SMSC development (Spiritual, Moral, Social and Cultural) which is imperative in promoting the Fundamental British Values.

The school embodies democracy within its ethos and learning culture. Religious studies lessons promote respect and tolerance for other faiths and beliefs, non-beliefs and all fellow human beings.

The school embeds the importance of respect for fellow human beings, tolerate differences and to love all. ICE and Citizenship lessons promote the importance of individual liberty and the important of the rule of law, as do the school rules. The values developed at school, will equip children to demonstrate skills and attitudes that will allow them to contribute to life in modern Britain as a British Muslim Citizen. The Fundamental British Values and Islamic values are at the heart of all our teaching and learning.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Islamic values and fundamental British values are promoted in unison so that children may know that they are one and the same. The school teaches the children that Islam promotes unity among all communities and encourages the children to be proactive Muslims who engage within their society and communities for the common good of all of humanity. Through citizenship, children are encouraged to be proactive within their local and then eventually wider communities.

Additionally, at LIA, children have a good level of SMSC development (Spiritual, Moral, Social and Cultural). These are learnt through the promotion of the Fundamental British Values and Islamic Values and ethos of the school.

Physical Education

At LIA we recognize the importance of having both a healthy mind and a healthy body. Therefore, we introduced specialised sports coaching into the delivery of our PE curriculum. This has been a resounding success and both pupils and parents have reported an increased positive attitude towards sports activities. Alongside this we have included sports provision for all lunch times.

Holistic Learning and character development

This development plan was inspired by The Prince William Award.

The scheme was started by HRH Prince William The Duke of Cambridge KG KT Royal Patron. The Prince William Award aims to do just this - to develop children's personal skills and equip children with resilience.

"I believe that an individual's academic success, wellbeing and mental health depends not only on traditional qualifications, but on nurturing non-academic attributes like self-confidence, discipline and determination. It is not enough that someone is good at English and Maths if they cannot withstand the pressures that life throws up" (HRH Prince William The Duke of Cambridge KG KT Royal Patron) .

Wow Walking, ECO School, Vegetable Patch (Pastoral), Student Council Debate session, STEM session, Sewing, Art Craft, Landmarks Models, Prophet Stories.

These sessions include both practical and reflective learning, with classroom-based review through cross curricular subjects. The main aim is to permit our children to become resilient, confident and share their own skills by creating a school environment where children learn virtues that enable them to be changing mediators in their communities.

Working with Parents

We, at Leicester Islamic Academy firmly believe that education is a two way system where school and parents work hand in hand to ensure that all children develop and achieve their best.

We have close links with parents where we keep them informed about school matters and their children's progress and life at school through homework diaries, parents' afternoons, assemblies and fund raising events.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

LIA Gems

In LIA gems there are 3 dedicated rooms for the children attending the setting; Baby Room which is 0 to 2 years of age which opens up their learning experience at LIA Gems giving them the strong foundations that they need to flourish and cherish in this enriched environment, moving onto Toddler Room which is for children aged 2 years to 3 years, they continue their developmental journey here supported by the qualified and competent level 3 staff ending in the Preschool Room for children above the age of 3.This Room gives each child the independence and ability to start to take learning further for preparation for School. The curriculum is the Early Years Foundation Stage Framework consisting of specific and prime areas embedded in an Islamic ethos.

LIA Gems have constructed and build a Forest School within our grounds, bringing the natural world into our learning curriculums, providing outdoor provision that supports and provides exploratory instincts to the children's learning.

Each staff member is delicately and systematically chosen to suit the needs of each room and each individual child. We provide opportunities for all staff to further develop their skills through continuous professional development and adapt accordingly to changes in the Curriculum. There are high expectations from management at LIA for the staff to deliver at the highest potential and give each child a unique learning journey throughout LIA Gems Nursery.

Complaints procedure

There is an approved procedure for dealing with complaints. If parents have an enquiry or a concern, they are encouraged to contact the school so that the matter can be discussed with the Head Teacher. In the majority of cases most questions and anxieties can be dealt with in this way. However, if complaints cannot be resolved in this way, then the formal procedure involving the governors can be followed. A copy of the complaints procedure is available upon request and on our website.

For the academic year 2019-20 we did not have any formal complaints.

Public benefit

The trustees have referred to the information contained in the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Community Cohesion and Collaborative Work

We at LIA have always promoted respect for people belonging to all faiths and culture. We are pleased that the school continues to work effectively with the local community. We welcome volunteers from the community to work with children in the school and appreciate the help they provide. Parents and volunteers help with various activities such as reading, supporting class teachers, sports activities, school visits and with fund raising events.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Fundraising

Throughout the year fundraising was held for various charities raising £191.78. Food sales, non uniform days and ProKick also raised £1,375 in total.

ACHIEVEMENT AND PERFORMANCE

Early Years

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Good level of development 2018 2019
Reading Exp or Exc 71% 83%
Writing Exp or Exc 54% 72%
Number Exp or Exc 74% 94%
Shape and Space Exp or Exc 83% 94%
Overall GLD in 12 areas of learning 49% (71.5%) 69% (71.8%)
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Key

Exp: Expected Exc: Exceeding (): National

Next Steps

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Phonics Test Year 1

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2018 2019
Result 85% 86%
National 82% 91%
Greater Depth at LIA (Achieved above 87%) 85% 79%
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Our results, as seen above shows a steady increase in the children achieving expected marks in Phonics. This means we are making good progress to get the children exposed to reading as quick as possible. No data available for 2019/2020 due to the COVID-19 National Lockdown.

Next Steps

Key Stage 1

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2018 2019 National 2019
Reading EXS 100% 96% 75%
S.P.A.G EXS 96% 100%
Maths EXS 64% 100% 76%
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Key

EXS: Expected standard

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Next Steps

Key Stage 2

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||||| |---|---|---|---| |2018|2019|National 2019| |Reading EXS|85%|71%|73%| |S.P.A.G EXS|93%|81%|78%| |Maths EXS|93%|77%|89%|

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Key

EXS: Expected standard

Due to National Lockdown, all formal assessments including KS2 SATs were cancelled however teachers used formative judgements to inform next steps in planning in order to close learning gaps.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Next Steps

Speaking and Listening Strategies

Reading Comprehension Strategies

Writing Strategies

Maths Strategies

School Events

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

School Trips

Achievements

CPD for School Staff

A termly CPD calendar is in place for the staff. This allows staff to be updated on any legislation changes and professional development needed according to the New Curriculum Framework.

All training sessions are planned accordingly to the changes required, giving opportunities to members of staff to lead sessions as well as the Senior leads. We have introduced a 3 T's start to sessions- Teachers Top Tips, to share best practice and include all staff as trainers. This is important professional development.

FINANCIAL REVIEW

A summary of the financial results for the year is set out in the statement of financial activities on page 18 of the financial statements.

During the year Leicester Islamic Academy generated a net surplus of £455,040 (2019: £58,886). The increase in net income was broadly due to increase in voluntary income.

In 2020, the fee and other direct charitable income fell by 7% to £696,803 (2019: £749,428) whereas voluntary income increased to £408,439 (2019: £105,435). The fee income primarily reduced as a result of school closure due to Covid-19 which has resulted in the school having to credit some of the fees to reflect the change in quality of academic education due to remote learning as well as reduced number of privately funded nursery sessions. The voluntary income has increased significantly as more time and resources were allocated to raise donations in order to assist Leicester Islamic Academy with settlement of the bank loan.

Other incoming resources of £173,941 (2019: £39,996) was generated during the year which included income from provision of ethos services as well as government grants together with trading income in the form of hall hire and fundraising events of £5,862 (2019: £3,840). The changes have resulted in total incoming resources being increased by 42.9% to £1,284,595 (2019: £898,699).

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

Total resources expended has remained in line with last year with cost of learning resources increasing and IT related costs reducing.

Reserves policy

The trustees review the charity's reserves policy periodically and at least on an annual basis. Leicester Islamic Academy requires financial reserves to maintain and advance its activities and long term aims and objectives. Reserves are required to:

Post Balance Sheet Events

The implications and consequences of the current Covid-19 pandemic cannot be fully quantified at this stage, but could have the potential to be extremely far-reaching both financially and operationally. This is the case even where restrictions are lifted according to the government's best estimates. It is difficult to accurately predict how long the current pandemic will last and what impact this will have on Leicester Islamic Academy's future income. However as at the point of authorising the accounts, we have reviewed financial performance based on management figures, which we feel adequately reflect the current uncertain environment. We are satisfied that there will be sufficient cash resources generated from Academy's activities to enable Leicester Islamic Academy to continue without the requirement of any external finance.

Going Concern

In view of the financial performance and the reserves position as at the balance sheet date, the Board of Trustees has a reasonable expectation that Leicester Islamic Academy will have the resources to continue in operational existence for the foreseeable future.

The Trustees believe there are no material uncertainties that call into doubt our ability to continue as a going concern. The annual financial statements have therefore been prepared on the basis that the charity is a going concern.

FUTURE PLANS

Having successfully established the Voluntary Aided Secondary School, the trustees have made an unanimous decision to take the school from being an independent entity to a state maintained school. Work is currently being carried out to achieve this goal.

In addition, the trustees are also actively planning to increase the number of students on roll with a view to increase its income.

Over the last few years, the school has been actively working to enhance the holistic development of all our pupils to fulfil the school's vision. As of August 2021 (academic year 2021/2022), the school will be introducing a bespoke Islamic Studies programme to the curriculum that will be delivered by specialist subject leaders who have undergone appropriate training.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Leicester Islamic Academy is a registered UK Charity and is governed by its Trust Deed executed on 8 December 1989 as amended by supplemental deeds dated 10 March 2002 and 21 November 2006.

It is an unincorporated charity and it was registered with Charity Commission of England and Wales on 20 March 1990 under charity number 702652.

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

Leicester Islamic Academy was opened in 1982 by the LIA Trust and grew rapidly to become a large Muslim school catering for boys and girls between the ages of three to sixteen. In September 2007, the secondary part of the school obtained voluntary aided status and senior pupils moved to the newly created Madani High School, a purpose-built school nearby.

The Trust retains overall responsibility for the two schools: it owns the LIA building and provides the Foundation Governors for Madani Schools Federation. There are strong links between LIA and Madani Schools Federation, but recent changes in the admission policy for voluntary aided schools have meant that former LIA pupils can no longer be guaranteed a place at Madani Schools Federation, though it is still the destination of choice for most parents.

The Trust has delegated the proprietorship of LIA to the school's Board of Governors, many of whom are also trustees, on the condition that the school continues to operate in accordance with the religious values and the practices as contained in its Trust Deed.

The Board of Governors

Mr H Suleman Chair of Governors Mrs T A Jakhura Headteacher Mr R Laher Governor Mrs F Essat Governor Ms. A Dassu Governor Mr M Patas Governor Mr O Bawa Governor Mr Z Desai Governor Mr Z Suleman Governor Senior Leadership Team Mrs T Jakhura BCom, QTS Headteacher Mrs R Razaq BA (Hons), QTS Assistant Head Mrs A Suleman FDLT RS Teacher/SENCO Mrs S Suleman MAAT, CSBM Business Manager Miss M Maramba BA (Hons), PGCE KS1 Phase Leader Miss A Qureshi BA (Hons), QTS EYFS Phase Leader

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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LEICESTER ISLAMIC ACADEMY

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST JULY 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Approved by order of the board of trustees on 28th May 2021 and signed on its behalf by:

Mr H I Suleman - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LEICESTER ISLAMIC ACADEMY

Opinion

We have audited the financial statements of Leicester Islamic Academy (the 'charity') for the year ended 31st July 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

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 Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF LEICESTER ISLAMIC ACADEMY

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted 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 formed.

Nazir Malida FCCA (Senior Statutory Auditor) for and on behalf of Watergates Ltd (Statutory Auditor) Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 109 Coleman Road Leicester Leicestershire LE5 4LE

28th May 2021

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LEICESTER ISLAMIC ACADEMY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2020

Notes
INCOME AND ENDOWMENTS
FROM
Donations and legacies
2
Charitable activities
4
Educational services
Other trading activities
3
Other income
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Educational services
Other
Total
NET INCOME
Transfers between funds
17
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 31/7/20
Fixed
Unrestricted
Restricted
asset
Total
fund
funds
fund
funds
£
£
£
£
55,869
16,570
336,000
408,439
696,803
-
-
696,803
5,862
-
-
5,862
173,491
-
-
173,491
932,025
16,570
336,000
1,284,595
3,197
-
-
3,197
767,224
16,570
-
783,794
42,564
-
-
42,564
812,985
16,570
-
829,555
119,040
-
336,000
455,040
1,289,269
-
(1,289,269)
-
1,408,309
-
(953,269)
455,040
1,705,942
3,136
953,269
2,662,347
3,114,251
3,136
-
3,117,387		 31/7/19
Total
funds
£
105,435
749,428
3,840
39,996
898,699
-
785,100
54,713
839,813
58,886
-
58,886
2,603,461
2,662,347

The notes on page 0 form part of these financial statements

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LEICESTER ISLAMIC ACADEMY

STATEMENT OF FINANCIAL POSITION 31ST JULY 2020

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one
year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS
Amounts falling due after more
than one year
15
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
fund
£
2,920,041
132,098
122,781
254,879
(60,669)
194,210
3,114,251
-
3,114,251		 Restricted
funds
£
-
-
3,136
3,136
-
3,136
3,136
-
3,136		 Fixed
asset
fund
£
-
-
-
-
-
-
-
-
-		 31/7/20
Total
funds
£
2,920,041
132,098
125,917
258,015
(60,669)
197,346
3,117,387
-
3,117,387
3,114,251
3,136
3,117,387		 31/7/19
Total
funds
£
2,950,995
176,409
112,898
289,307
(140,641)
148,666
3,099,661
(437,314)
2,662,347
1,705,942
956,405
2,662,347

The financial statements were approved by the Board of Trustees and authorised for issue on 28th May 2021 and were signed on its behalf by:

Dr M A Makadam - Trustee

The notes on page 0 form part of these financial statements

-19-

LEICESTER ISLAMIC ACADEMY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 31/7/20
£
455,021
(4,689)
450,332
-
-
(437,313)
(437,313)
13,019
112,898
125,917		 31/7/19
£
72,317
(11,355)
60,962
(6,425)
(6,425)
(53,889)
(53,889)
648
112,250
112,898

The notes on page 0 form part of these financial statements

-20-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2020

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING
Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors		 1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING
Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors		 ACTIVITIES
31/7/20
31/7/19
£
£
455,040
58,886
30,953
32,616
4,689
11,355
44,311
(47,172)
(79,972)
16,632
Net cash provided by operations 455,021
72,317
2.
ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS
Net cash
Cash at bank and in hand		 At 1.8.19
£
112,898		 Cash flow
At 31.7.20
£
£
13,019
125,917
112,898 13,019
125,917
Debt
Debts falling due after 1 year		 (437,314) 437,314
-
(437,314) 437,314
-
Total (324,416) 450,333
125,917

The notes on page 0 form part of these financial statements

-21-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2020

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost Fixtures and fittings - 15% on cost Computer equipment - 20% on cost

TAXATION

The charity is exempt from tax on its charitable activities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

-22-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

1. ACCOUNTING POLICIES - continued

GOING CONCERN

The Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Financial Review.

2. DONATIONS AND LEGACIES

3.

4.

Donations
Gift aid
OTHER TRADING ACTIVITIES
Fundraising events
Hall hire
INCOME FROM CHARITABLE ACTIVITIES
Activity
Goods and services
Educational services
Fees income
Educational services		 31/7/20
£
392,984
15,455
408,439
31/7/20
£
4,542
1,320
5,862
31/7/20
£
36,281
660,522
696,803		 31/7/19
£
93,240
12,195
105,435
31/7/19
£
-
3,840
3,840
31/7/19
£
30,111
719,317
749,428

-23-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

5. RAISING FUNDS

RAISING DONATIONS AND LEGACIES

Fundraising
6.
CHARITABLE ACTIVITIES COSTS
Educational services
7.
GRANTS PAYABLE
Educational services
8.
SUPPORT COSTS
Educational services		 Direct
Costs
£
587,096		 31/7/20
£
3,197
Grant
funding of
activities
Support
(see note
costs (see
7)
note 8)
£
£
16,570
180,128
31/7/20
£
16,570
Governance
Other
costs
£
£
177,128
3,000		 31/7/19
£
-
Totals
£
783,794
31/7/19
£
36,864
Totals
£
180,128

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st July 2020 nor for the year ended 31st July 2019.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31st July 2020 nor for the year ended 31st July 2019.

-24-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

10. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Teaching staff
Administration staff
No employees received emoluments in excess of £60,000.		 31/7/20
£
596,035
6,753
602,788
31/7/20
35
18
53		 31/7/19
£
580,311
6,200
586,511
31/7/19
28
9
37

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Educational services
Other trading activities
Other income
Total
EXPENDITURE ON
Charitable activities
Educational services
Other
Total
NET INCOME/(EXPENDITURE)		 Unrestricted
fund
£
65,435
749,428
3,840
39,996
858,699
748,236
39,996
788,232
70,467		 Restricted
funds
£
40,000
-
-
-
40,000
36,864
-
36,864
3,136		 Fixed
asset
fund
£
-
-
-
-
-
-
14,717
14,717
(14,717)		 Total
funds
£
105,435
749,428
3,840
39,996
898,699
785,100
54,713
839,813
58,886

-25-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
12.
TANGIBLE FIXED ASSETS
COST
At 1st August 2019
Disposals
At 31st July 2020
DEPRECIATION
At 1st August 2019
Charge for year
Eliminated on disposal
At 31st July 2020
NET BOOK VALUE
At 31st July 2020
At 31st July 2019		 Unrestricted
fund
£
(65,245)
5,222
1,700,720
1,705,942
Freehold
property
£
3,091,776
-
3,091,776
157,769
26,295
-
184,064
2,907,712
2,934,007		 Restricted
funds
£
-
3,136
-
3,136
Fixtures
and
fittings
£
77,510
(34,547)
42,963
73,597
1,552
(34,547)
40,602
2,361
3,913		 Fixed
asset
fund
£
65,245
50,528
902,741
953,269
Computer
equipment
£
87,495
(40,961)
46,534
74,420
3,107
(40,961)
36,566
9,968
13,075		 Total
funds
£
-
58,886
2,603,461
2,662,347
Totals
£
3,256,781
(75,508)
3,181,273
305,786
30,954
(75,508)
261,232
2,920,041
2,950,995

Included in cost or valuation of land and buildings is freehold land of £1,777,032 (2019 - £1,777,032) which is not depreciated.

The freehold property includes 'Governors statutory contribution' of £1,952,892 (Land £1,777,032 and Building £175,860) for the establishment of Madani Schools Federation (Voluntary Aided), Evington Valley Road, Leicester.

-26-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

----- Start of picture text -----
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/20 31/7/19
£ £
Trade debtors 113,733 164,420
Prepayments and accrued income 18,365 11,989
132,098 176,409
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/20 31/7/19
£ £
Trade creditors 15,137 26,813
Taxation and social security 3,476 4,980
Other creditors 42,056 108,848
60,669 140,641
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/7/20 31/7/19
£ £
-
Bank loans (see note 16) 437,314
16. LOANS
An analysis of the maturity of loans is given below:
31/7/20 31/7/19
£ £
Amounts falling due in more than five years:
Repayable by instalments:
-
Bank loans more 5 yr by instal 437,314
----- End of picture text -----

-27-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Fixed asset fund
Fees support needy students
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Restricted funds
Fixed asset fund
Fees support needy students
TOTAL FUNDS		 At 1.8.19
£
1,705,942
953,269
3,136
956,405
2,662,347
as follows:		 Net
movement
in funds
£
119,040
336,000
-
336,000
455,040
Incoming
resources
£
932,025
336,000
16,570
352,570
1,284,595		 Transfers
between
funds
£
1,289,269
(1,289,269)
-
(1,289,269)
-
Resources
expended
£
(812,985)
-
(16,570)
(16,570)
(829,555)		 At
31.7.20
£
3,114,251
-
3,136
3,136
3,117,387
Movement
in funds
£
119,040
336,000
-
336,000
455,040

-28-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.8.18
in funds
£
£
Unrestricted funds
General fund
1,700,720
70,467
Restricted funds
Fixed asset fund
902,741
(14,717)
Fees support needy students
-
3,136
902,741
(11,581)
TOTAL FUNDS
2,603,461
58,886
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
858,699
Restricted funds
Fixed asset fund
-
Fees support needy students
40,000
40,000
TOTAL FUNDS
898,699		 Transfers
between
funds
£
(65,245)
65,245
-
65,245
-
Resources
expended
£
(788,232)
(14,717)
(36,864)
(51,581)
(839,813)		 At
31.7.19
£
1,705,942
953,269
3,136
956,405
2,662,347
Movement
in funds
£
70,467
(14,717)
3,136
(11,581)
58,886

-29-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Fixed asset fund
Fees support needy students
TOTAL FUNDS		 At 1.8.18
£
1,700,720
902,741
-
902,741
2,603,461		 Net
movement
in funds
£
189,507
321,283
3,136
324,419
513,926		 Transfers
between
funds
£
1,224,024
(1,224,024)
-
(1,224,024)
-		 At
31.7.20
£
3,114,251
-
3,136
3,136
3,117,387

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Fixed asset fund
Fees support needy students
TOTAL FUNDS		 Incoming
resources
£
1,790,724
336,000
56,570
392,570
2,183,294		 Resources
expended
£
(1,601,217)
(14,717)
(53,434)
(68,151)
(1,669,368)		 Movement
in funds
£
189,507
321,283
3,136
324,419
513,926

TRANSFERS BETWEEN FUNDS

The transfer of £1,289,269 represented element of 'Governors statutory contribution' which was historically funded by restricted donations as well as bank loan obtained to fund the contribution. The amount shown was net of outstanding bank loan.

During the year the bank loan has been settled and there are no further restriction in place on this fund. The balance is therefore transferred to unrestricted fund. The details of 'Governor statutory contribution' is referred to in note 12 of these financial statements.

-30-

LEICESTER ISLAMIC ACADEMY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2020

18. RELATED PARTY DISCLOSURES

Total donations of £266,350 was received from Madani School Federation. H I Suleman and A Patas who are trustees of the charity are also members of governing body of Madani School Federation. The donation was received to assist Leiceser Islamic Academy to settle bank loan.

Total donations of £6,000 was received from Muslim Community College (Intl), a company limited by guarantee. Dr M A Makadam who is a trustee of the charity was also a director of Muslim Community College (Intl) as at 31 July 2020. In addition, another director of Muslim Community College (Intl) H A Patas is a close relative of another trustee A Patas. The donation was received to assist Leiceser Islamic Academy to settle bank loan.

-31-

LEICESTER ISLAMIC ACADEMY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2020

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Other trading activities
Fundraising events
Hall hire
Charitable activities
Goods and services
Fees income
Other income
Ethos services
Government grants
Total incoming resources
EXPENDITURE
Raising donations and legacies
Fundraising
Charitable activities
Wages
Pensions
Rates and water
Insurance
Carried forward		 31/7/20
£
392,984
15,455
408,439
4,542
1,320
5,862
36,281
660,522
696,803
29,996
143,495
173,491
1,284,595
3,197
420,789
4,871
9,083
11,948
446,691		 31/7/19
£
93,240
12,195
105,435
-
3,840
3,840
30,111
719,317
749,428
39,996
-
39,996
898,699
-
460,952
4,986
8,139
12,717
486,794

This page does not form part of the statutory financial statements

-32-

LEICESTER ISLAMIC ACADEMY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2020

Charitable activities
Brought forward
Light and heat
Telephone
Postage and stationery
Sundries
Books and resources
Events and activities
Teacher training
Repairs and maintenance
Cleaning
Accountancy
School inspection charges
IT costs
Bad debts
Freehold property
Fixtures and fittings
Computer equipment
Fees settlement needy students
Other
Consultancy
Ethos services
Legal and professional fees
Freehold property
Bank loan interest
Support costs
Other
Wages
Pensions
Governance costs
Auditors' remuneration		 31/7/20
£
446,691
12,094
332
3,638
1,340
28,549
1,578
1,423
5,636
2,641
881
2,720
22,781
29,201
22,933
1,552
3,106
16,570
603,666
3,497
29,996
1,020
3,362
4,689
42,564
175,246
1,882
177,128
3,000		 31/7/19
£
486,794
6,436
1,516
3,538
753
10,802
2,319
7,349
11,891
5,323
4,863
1,886
41,626
13,313
22,933
1,552
4,769
36,864
664,527
-
39,996
-
3,362
11,355
54,713
119,359
1,214
120,573
-

This page does not form part of the statutory financial statements

-33-

LEICESTER ISLAMIC ACADEMY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2020

Total resources expended
Net income		 31/7/20
£
829,555
455,040		 31/7/19
£
839,813
58,886

This page does not form part of the statutory financial statements

-34-