number: 1166149

MUSLIM CHARITIES FORUM

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017 MUSLIM CHARITIES FORUM

CONTENTS

Page

Administrative Information

Chairman's Foreward 2-3

Trustees' Report 4-9

Independent Examiner's Report 10-11

Statement of Financial Activities 12

Balance Sheet

Notes to the Financial Statements 14-23 MUSLIM CHARITIES FORUM

ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2017

Trustees

Dr Hany Abdul Gawad El-Banns OBE Syed Lakthe Hasssnain Dr. Oihmsn Moqbel Imran Madden (resigned 11 October 2016) Shuaib Yusaf (appointed 12 January 2017) Tufail Hussein Khan (appointed 11 October 2016) Shan-e-Abbas Sadik Hassanali Hassam (appointed 27 September 2016) Adeem Younis (appointed 6 July 2016, resigned 6 January 2017)

Charity registered number 1166149

Principal ofBce

6 Whitehorse Mews, 37 Westminster Bridge Road, London, London, SE1 7QD

Director of Operations

Monowara Gani

Financial Management Consultant

Max Manzoor Wahid

Accountants haysmacintyre, 26 Red Lion Square, London, WC1R 4AG Bankers

HSBC Bank pic, 12 Cslthorpe Road, Birmingham, 815 1QZ Solicitors

Bates Wells Braithwaite, 10 Queen Street Place, London, EC4R 1BE

Page 1 MUSLIM CHARITIES FORUM

CHAIRMAN'S FOREWARD FOR THE YEAR ENDED 31 MARCH 2017

The Chairmen presents his statement for the period.

Dear Readers

This year we celebrated our 10th anniversary at MCF; a significant milestone since the journey to create a strong advocacy body for the Muslim charity sector began in 2007. A decade on, we all have much to be proud of. During the psst 12 months, we have continued to fulfil our duty in representing the interests and improving the effectiveness of the Muslim NGO sector.

This year, MCF led delegations to the Turkey-Syria border to assess the needs of those living in refugee camps, travelled to Somaliland with members to find out what exactly must be done to avert the effects of a severe drought, and most recently, in partnership with the Organisation for Islamic Cooperation under the auspices of the Federal Government of Somalia including the UN OCHA, MCF called a meeting of global NGOs in Mogadishu to renew intentions to stave off impending famine and work together to collaborate in responding to the drought and famine.

MCF has continued to represent members and the Muslim charity sector on the issues that affect them and their operations as NGOs, a recent example includes the issue of bank de-risking and the difficulties in transfening funds to places of desperate need. MCF is part of a HMG-NGO working group that is in consultation and talks with the Home Office, HM Treasury and banks on the banking issues its members face. Moving forwards there are still challenges for Muslim-led charities. The impacts of counter-terrorism policy have unfairly stigmatised and targeted Muslim-led charities, hampering the operational effectiveness of many, particularly those providing essential humanitariian assistance in areas of dire need. We must also work to overcome the barriers to engaging with institutional bodies and learning how as charities, we can make a positive impact together. MCF's membership has continued to grow and this year we welcomed more and more members into our community with numbers now standing at 16. I know they will benefit from their membership and bring their own knowledge and experience that will help strengthen the sector.

The highlight of the year is welcoming Clare Short as our newest patron for MCF alongside our current patrons, Andrew Mitchell MP and Sir Stephen Bubb. During Clare's time in Parliament spanning over 26 years, she was the Secretary of State for International Development for 6 years through which she successfully led many initiatives and changes across the world including her work with African poverty where she persuaded Chancellor Gordon Brown to write off the British debts of Africa's poorest nations. We believe Clare's wealth of experience, knowledge and will insight be an immensely important addition to MCF's work and future, and we look forward to working closely with Clare.

One of the activities key within MCF this year has to be the evaluation review of the last 10 years of MCF, and the development of its new 3-year strategy. MCF has been serving the Muslim INGO sector now for over 10 years and the landscape in which we operate as an umbrella body is continuing to change year on year. Our work, impact and activities required a sincere look in order to improve and serve our members better, and parficularly to inform the new strategy. I am pleased to say that we started this journey in December and I look forward to reporting back on its success in the coming year.

Page 2 MUSLIM CHARITIES FORUM

CHAIRMAN'S FOREWARO FOR THE YEAR ENDED 31 MARCH 2017

I hope that this report of our activities shows you what we can all do when we work together —our collective solidarity is one of our greatest strengths.

The need for a forum where charities csn come together to discuss, debate, share ideas and work together on issues concerning the wider charitable snd international development sector is becoming more important than ever. I look forward to MCF leading the way in this mission.

Yours sincerely

Name Dr y El-Ban E Chairman Date P Pt0& 6&$64- AD I+

Page 3 MUSLIM CHARITIES FORUM

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2017

Director of Operations Summary

2016-2017 has been a rewarding but challenging year with the outgoing of key staff members and the incoming of new staff members, as well as the launch of the successful Annual Humanitarian Awards. A sense of invigoration and support is being felt across the sector and more charities are looking to join MCF, with our membership currently standing at 16 with a further 4 charities applying and several more showing serious interest. This year MCF has undertaken a full review of its work, purpose and future in consultation with members, stakeholders, past/current staff and trustees. The review was primarily undertaken as a spring board towards developing MCF's new 3-year strategy to be launched sometime within 2017-2018.

MCF has continued to work with its members to provide training, opportunities and partnerships. This year there has been a key focus on collaboration and co-ordination activities such as raising awareness of the impeding drought and famine in East Africa through a report and co-ordination meetings, high level advocacy engagement with one countrt/s federal government and the UNOCHA, and a briefing at the House of Commons. - 2016 2017 has also been a year of reflection, introspection and change. In addition to the collaboration work, MCF has been focusing on strengthening its through not only the development of a new strategy, but by also putting key pieces in place to enable our members to take ownership of the Muslim INGO sector's success and direction. Key items that are being implemented include new working groups such as the 'Programmes' working group and the 'Advocacy and Policy' working group as well as a new and improved MEAL system to track MCF's impact and activities. The next 12 months focus which has already started includes:

1. Launching MCF's new 3-year strategy

2. Development of a robust MEAL system as part of the annual work plan and annual key performance indicators

3. Governance review and recruitment of more trustees

4. Newly developed website, communications and improved brand awareness

5. Launching new working groups including; 'programmes' and 'advocacy, policy and research' [existing working groups include the 'finance and compliance' working group and the '' working group]

6. Launching the UK NGO —INGO steering committee to explore effective and collaborative domestic UK programmes and an domestic charities membership arm of MCF

7. Focus on services to members in particular collaborative support for the sector, and the continuation of MCF's portfolio of training and seminar opportunities

8. Research and development into a new 'ladder system' membership process allowing all Muslim INGO charities to join MCF including coaching plans to meet key milestones in any charity's development and success up the ladder

9. Joint co-ordination and learning initiatives including research, programmes and in emergency crisis response

10. Membership recruitment including building MCF's partnerships and networks

Page 4 MUSLIM CHARITIES FORUIN

I would like to thank the staff and the trustees for their dedication, commitment and support of MCF including our partners and stakeholders who continue to work with MCF and the Muslim charitable sector. I would also like to thank our members who continue to support MCF and have entrusted us to be their umbrella body for the Muslim charitable sector. We hope that we can continue fulfilling that trust.

Yours Sincerely

Monowara Gani Director of Operations

Page 5 MUSLIM CHARITIES FORUM

The board of Trustee present their Report and Accounts for the year ended 31 March 2017 Accounts

The Accounts have been prepared in accordance with the accounting policies set out in note 1 to the Accounts and comply with the Charity's governing document, applicable law and the requirements of the Statement of Recommended Practice SORP 2015 (FRS102) and the Charities Act 2011. Overview

Muslim Charities Feorum (MCF) is committed to creating a strong, proactive, transparent and efficient Muslim charity sector in the UK

Since being set-up in MCF's 2007, aim has been to provide an effective advocacy and capacity building resource for Muslim-led NGOs as well the tools and expertise to improve operational efliciency and deliver better services.

Afi MCF members share a common vision of alleviating poverty and suffering of the neediest; a mission inspired the by Islamic values of unity, co-operation and compassion. These values are the drivers behind the work we do for our members. It is by supporting and sustaining an effective Muslim-led charity sector that our members have been able to continue to play vital roles in the humanitarian and international development sectors From delivering essential projects in war-tom countries such as Syria and Iraq, places of severe famine and drought such as Ethiopia and Somaliland, as well as combating poverty in countless others across the globe, MCF's members continue to be beacons of light in a sometimes dark world.

By facilitating and promoting co-operation amongst Muslim charities we believe a strong, unified and generous sector will continue to flourish

Vision

Our vision is to see Muslim INGOs become recognised ss sector leaders; to cooperate with each other and external stakeholders whilst continuing to improve people's lives across the world. Mission

Our mission is to establish a healthy, accountable, effective and professional Muslim charitable sector in the UK through good governance, conducting research, forming partnerships, enhancing cooperation, capacity building, and sharing experiences and ideas

Activities

To achieve our mission MCF works within the following areas:

Advocacy Research and Development Training and Capacity Building Partnerships, Co-ordination and Cofiaboration

Some of our key activities this year included:

Duty of Care Seminar at CAFOD Seminar regarding the duty organisations have of making sure staff are safe when on the field and in dangerous zones.

Somaliland Foreign Minister roundtable at African Relief Fund Roundtable discussion regarding the Somaliland drought and how the Muslim charity sector's response can be better coordinated.

Page 6 MUSLIM CHARITIES FORUM

Trustees Disqualification Seminar, Slmons Muirhead 8 Burton Charity Commission and law professionals from SMAB talk to MCF members and their trustees about new charity governance laws and how they will affect trustees and the respective charities.

MCF Members Working Group Meetings [Finance 8 Compliance, Volunteers/Programmes] Volunteer Manager Working Group - An MCF led discussion on importance of volunteers, best practices in volunteer management, challenges in the area as well as the need to work together and improve standards among MCF members.

Finance & Compliance Working Group Meetings - Presentation on corresponding banks; de-risking; measuring compliance cases within each charity and procedures for providing evidence to MCF for representation during advocacy situations.

MCF Humanitarian Awards 2017 MCF Awards and Dinner ceremony celebrating ten years of MCF snd 30 years of the Muslim charity sector. A fully booked event held at Church House in Westminster and attended by member and non-member charities, global dignitaries/ambassadors from different countries, as well as Members of Parliament and House of Lords.

HING-NGO Working Group [Counter Terrorism 8 Sanctions affecting Humanitarian work] MCF congnued work on issues affecting member's humanitarian work as a result of bank de-risking and CT legislation. MCF has been part of the report led by the Home Office which involves collecting detailed case studies of aspects of de-risking and charities; preparing a table-top exercise with key stakeholders to work through case studies and identify blocking points, and; preparing a report with recommendations. The table-top exercise and meetings involved a range of representatives from Government [such as HM Treasury, DFID, Foreign ONce], regulators [such as the Charity Commission], banks as well as NGO representatives including MCF members who have contributed case studies, advice and input.

East Africa Famine Debrief and Collaboration Meeting, London. Debrief and roundtable discussion between MCF members and external organisations to debrief members on the unfolding crisis, and discuss how to work together more effecgvely in addressing the crisis.

High Level Collaboration Meeting, Mogadishu, Somalia. High level collaboration and co-ordination meeting held in Mogadishu with the UN OCHA, Organisation for Islamic Cooperation, the Federal Government of Somalia and The Humanitarian Forum on renewing response to famine and better collaboration. MCF helped organise the event as well as produced an outcomes report on behalf of the meeting.

House of Common Crisis Debrief East Africa Drought 8, Famine, London. MCF along with member charities, held a debrief meeting and launched the outcome report after the recent delegation to Somalia. The meeting intended to bring agencies working in the area closer together and to establish links of support for newly established Somslian Ministry for Humanitarian Affairs, and in particular its national co-ordination centre in response to the famine.

PLANS FOR THE FUTURE

With a newly developed team and renewed efforts to grow, MCF is going through a strategy development process and considering key partnerships to facilitate the work of its members. MCF will be investing in developing its communications, its advocacy work and in particular the services it offers its members.

FINANCIAL REVIEW

Muslim Charities Forum received , grants and other income worth 6223,116 compared to 6175,102 in 2015/16. 654,129 of the total income received constitutes restricted grants and this translates to approximately 24'k of our total income (compared to 0'/a in 2015/16). At the end of the fiscal year 2016/17 we brought forward a positive bank balance of 6151,071.

In accordance with SORP 2015, support costs have been allocated between charitable activities and . The statement of Financial Activities portrays that Muslim Charities Forum spent 6176,767 or 96'k of its total expenditures on charitable activities, 60 or 0'/e on fund raising and 63,390 or 2'lo on governance activities.

Page 7 MUSLIM CHARITIES FORUM

Reserves Policy

It is the policy of MCF that unrestricted funds which have not been designated for a specific use should be maintained at level will a which ensure that, in the event of a significant drop in funding, they will be able to continue the charitl/s current activities while consideration is given to ways in which additional funds may be raised.

It is also the MCF policy to hold sufficient funds, currently three months for administrative expenditures, or currently at 630,000, for closure of the charity should the need arise. At the year end free reserves total f88,623. Risk management

The trustees continue to assess the major risks to which MCF is exposed too and are satisfied that systems are in place to mitigate the exposure to major risks. The biggest risk facing the charity is fundraising. The charity relies wholly on its members for funding and does not follow the traditional street fundraising scenario. The AGM has discussed this scenario in almost every trustees meeting and have recommended the increase in members and therefore membership fees. The charity has been able to increase members this year and is discussing dynamic plans for increasing its membership base even further.

Exclusively Charitable Activities

The members come from a wide spectrum of social and charitable mores and backgrounds. The organizations and NGOs who benefit from the implementation of the aims of the Forum are diverse. Not afi of their activities might be regarded as "exclusively charitable" as defined by English law. The Board of Trustees assists NGOs whose aims and activities are not afi entirely "exclusively charitable", and that they make it clear at the outset that they are only supporting those activities which are "exclusively charitable" as defined by English law. References to NGOs in this Report should be read with the understanding that the Board of Trustees and members of the Steering Committee are fully aware of this requirement.

Public Benefit

As a charity, Muslim Charities Forum must be able to demonstrate that its objects and activities are for the public benefit as required by the Charities Act 2011.The Trustees have afi reviewed the guidance issued by the Charity Commission on public benefit and have ensured that Muslim Charities Forum's objects and activities comply with this statutory requirement. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

This Report explains our main activities and achievements in carrying out our aims.

Governance and internal control

The systems of internal control are designed to provide reasonable assurance against material mis-statement or loss. They include: ~ a strategic plan and an annual budget approved by the Board of Trustees; regular consideration by the Board of Trustees of financial results, variance from budgets, non-financial indicators and bench working reviews; delegation of authority and segregation of duties; Monthly review of the financial ledgers; Identification and management of risks (to the extent possible in an organisation of this size).

Page 8 MUSLIM CHARITIES FORUM

STATEMENT OF TRUSTEES' REPONSIBILITIES

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).

The law applicable to charities in England 8 Wales 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities SORP; Make judgements and estimates that are reasonable and prudent; State whether applicable accounting standards have been followed, subject to any material departures disdosed and explained in the financial statements; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, 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 end other inegularities.

In so far as we are aware:

There is no relevant audit information of which the charity's auditor is unaware; and

The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Examiners haysmacintyre were appointed Examiners to the charity and a resolution proposing that they be re-appointed will be put to the Board of Trustees.

This report was approved by the Trustees, on 0 144 Ogllnd signed on their behalf by:

Dr Hany Abdul Gawad El-Banns OBE Chairman Dr. Othman Moqbel Treasurer

Page 9 MUSLIM CHARITIES FORUM

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2017

Independent Examiner's Report to the Trustees of Muslim Charities Forum

I report on the financial statements of the Charity for the year ended 31 March 2017 which are set out on pages 12 to 23.

This report is made solely to the charity's Trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. My work has been undertaken so that I might state the to charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the charity's Trustees as a body, for my work or for this report.

The financial statements have been prepared in accordance with Accounting end Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on the after 1 January 2015. Respective Responsibilities of Trustees and Examiner

The charity's Trustees are responsible for the preparation of the financial statements, and they consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed.

It is my responsibility to: ~ examine the financial statements under section 145 of the Act; ~ follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Act; and ~ state whether particular matters have come to my attention. Basis of Independent Examiner's Report

My examination was canied out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a compariison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a 'true snd fair view' and the report is limited to those matters set out in the statement below.

Page 10 MUSLIM CHARITIES FORUM

INDEPENDENT EXAMINER'S REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2017

Independent Examiner's Statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements: ~ to keep accounting records in accordance with section 130 of the Act; and ~ to prepare financial statements which accord with the accounting records, Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) and in other respects comply with the accounting requirements of the Act. have not been met; or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Signed: Dated. g y)(sv+nl Qv

Murtaza Jesse FCA haysmacintyre, 26 Red Lion Square, London, WCI R 4AG

Page 11 INUSLIM CHARITIES FORUM

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2017

Unrestricted Restricted Total Total funds funds funds funds 2017 2017 2017 2016 Note f f f f INCOME FROM:

Donations and legacies 2 168,989 54,129 223,118 175,102

TOTALINCOME 168,989 54,129 223,118 'l75, 102

EXPENDITURE ON: Charitable activities 4 127,862 54,295 182,157 245,644

TOTAL EXPENDITURE 5 127,862 54,295 182,157 245,844

NET INCOME I (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES 41,127 (166) 40,961 (70,742) NET MOVEMENT IN FUNDS 41,127 (166) 40,961 (70,742) RECONCILIATION OF FUNDS: Total funds brought forward 47,496 46,720 94,216 164,958

88,623 46,554 135,177 94,216 TOTAL FUNDS CARRIED FORWARD

The notes on pages 14 to 23 form part of these financial statements.

Page 12 MUSLIM CHARITIES FORUM

BALANCE SHEET AS AT 31 MARCH 2017

2017 2016 Note 6 6 FIXED ASSETS Tangible assets 175 CURRENT ASSETS Debtors 10 34,079 5,080 Cash at bank and in hand 151,071 148,067

185,150 153,147 CREDITORS: amounts falling due within one year (49,973) (59,106)

NET CURRENT ASSETS 135,177 94,041

NET ASSETS 135,177 94,216

CHARITY FUNDS Restricted funds 12 46,554 46,720 Unrestricted funds 12 88,623 47,496

TOTAL FUNDS 135,177 94,216

The financial statements were ap ved by the Trustees on si) e)01)E(ni(~ garland signed on their behalf, by:

Dr ltlany Abdul Gawad El-Senna OBE Chairman

The notes on pages 14 to 23 form part of these financial statements.

Page 13 MUSLIM CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true fair' and view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. 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) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.

Muslim Charities Forum constitutes a public benefit entity as defined by FRS 102. 1.2 Income

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

For legacies, entitlement is taken as the earlier of the date on which either. the chadity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' Report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 14 MUSLINI CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

ACCOUNTING POLICIES (CONTINUED)

1.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by acfivity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Charitable activities and Governance costs are costs incurred on the charttjjs educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

1.4 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is cerned out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures and fittings 25% on net book value Computer equipment 33% on net book value

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. 1.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued et the amount prepaid net of any trade discounts due.

1.7 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 15 MUSLIM CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

ACCOUNTING POLICIES (CONTINUED)

1.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.10 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

INCOME FROM DONATIONS AND LEGACIES

Unrestricted Restricted Total Total funds funds funds funds 2017 2017 2017 2016 6 8 F Donations 1,589 54,129 55,718 14,806 Grants 10,000 Membership income 167,400 167,400 150,294

Total donations and legacies 168,989 54,129 223,118 175,102

Total 2016 165,326 9,776 175,102

Page 16 MUSLIIN CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

3. DIRECT COSTS

Total Total Governance Activities 2017 2016 f 6 6 6 salaries Wages, & social security 82,760 82,760 99,877 Depreciation 175 175 5?5 Sundries 74 Travel and subsistence 2,935 2,935 Bank 4,358 charges 200 200 248 Membership fees 237 237 205 Staff training & recruitment 1,406 1,406 3,424 Rent, insurance & utilities 17,875 17,875 21,253 Telephone, email 8 fax 12 12 1,203 Printing, postage, & stationary 748 748 1,608 Meeting expenses 1,296 1,296 12,649 Professional & legal 3,390 12,106 15,498 43,268 Project expenses 509 509 5,833 IT Website 4,378 4,378 6,168 DCLG Project 45, 100 Somaliand food aid 29,363 29,363 Annual Humanitarian Awards 24,767 24,767

3,390 178,767 182,157 245,844

At 31 March 2015 3,390 242, 454 245,844

4. GOVERNANCE COSTS

Unrestricted Restricted Total Total funds funds funds funds 2017 2017 2017 2016 6 6 6 Governance 3,390 3,390 3,390

5. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE

Other costs Total Total 2017 201? 2015 6 6 Charitiable Activities 178,767 178,767 242,454 Expenditure on governance 3,390 3,390 3,390

182,157 182,157 245,844

Total 2016 245,844 245,844

Page 17 MUSLIM CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

6. NET INCOME/(EXPENDITURE) This is stated after charging:

2017 2016 f Depreciation of tangible fixed assets: - owned by the charity 175 576

During the year, no Trustees received any remuneration (2016 - 8NIL). During the year, no Trustees received any benefits in kind (2016 - ANIL). During the year, no Trustees received any reimbursement of expenses (2016 - ANIL).

7. EXAMINER'S REMUNERATION

The Independent Examiner's remuneration amounts to an Independent Examination fee of 62,825 (2016- 82,825).

Page 18 MUSLIM CHARITIES FORUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

8. STAFF COSTS

The average number of persons employed by the charity during the year was as follows:

2017 2016 No. No. Charitable activities 3 3

No employee received remuneration amounting to more than 860,000 in either year.

The Director of Operations is considered the key staff for the charity - the total emoluments for key staff in 2016 were 636,398 (2016 - 840,000)

9. TANGIBLE FIXED ASSETS

Office Computer equipment ettuipment Total 6 Cost

At 1 April 2016 and 31 March 2017 1,816 8,628 10,444 Depreciation At 1 April 2016 1,710 8,559 10,269 Charge for the year 106 69 175

At 31 March 2017 1,816 8,628 10,444 Net book value At 31 March 2017

At 31 March 2016 69 'I 75

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

9. TANGIBLE FIXED ASSETS (continued)

10. DEBTORS 2017 2016 6 Trade debtors 34,079 5,060

11. CREDITORS: Amounts falling due within one year 2017 2016

Trade creditors 46,733 55,666 Accruals and deferred income 3,240 3,240

49,973 59,106

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

12. STATEMENT OF FUNDS

STATEMENT OF FUNDS ~ CURRENT YEAR

Balance at Balance at 31 March 1 April 2016 Income Expenditure 2017 6 6 6 f Unrestricted funds General Funds - all funds 47,496 168,989 (127,862) 88,623

Restricted funds

SAKHAA Grant 46,726 (166) 46,554 Somaliand Collaboration 29,363 (29,363) Humanitarian Award Ceremony 24,766 (24,766)

46,720 54,129 (54,295) 46,554 Total of funds 84,216 223,118 (182,157) 135,177

STATEMENT OF FUNDS ~ PRIOR YEAR

Balance at Balance at 1 Gains/ 31 March April 2015 Income Expenditure (Losses) 2015 6 6 6 F Unrestricted funds General - Funds all funds 89,270 175,102 (198,878) 47,496

59,270 175,102 (196,876) 47,495

Restricted funds

SAKHAA Grant 50,838 (3,918) 46,720 Somaliand Food Project 45,050 (45,050)

95,688 (48,958) 46,720

Total of funds 184,958 175,102 (245,844) 94,216

Description of Funds—

Sakhaa Grant: is a restricted to provide relief projects all across the Hom of Africa and in particular for Somalia and for building the capacity of smaller charities directly involved in the delivery of relief projects.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2917

12. STATEMENT OF FUNDS (continued)

Humanitarian Award Ceremony is restricted funding celebrated and recognised the remarkable achievements of the British Muslim charity sector over the past 30 years, bringing together leaders from Muslim-led charities with other faith and non-faith based organisations for a night of celebration and reflection.

Somalia Collaboration is restricted funding for a high level collaboration and co-ordination meeting held in Mogadishu with the UN OCHA, Organisation for Islamic Cooperation, the Federal Government of Somalia and The Humanitarian Forum on renewing response to famine and better collaboration.

SUMMARY OF FUNDS ~ CURRENT YEAR

Balance at Balance at 31 March 1 April 2016 Income Expenditure 2917 6 6 General funds 47,496 168,989 (127,862) 88,623 Restricted funds 46,726 54,129 (54,295) 46,554

94,216 223,118 (182,157) 135,177

SUMMARY OF FUNDS - PRIOR YEAR

Balance at Balance at 1 31 March April 2015 Income Expenditure 2016 F 6 6 General funds 69,270 175,102 (196,876) 47,496 Restricted funds 95,686 (48,968) 46,720

164,958 175,102 (245,844) 94,216

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted Restricted Total funds funds funds 2017 2017 2017 8 8 8 Current assets 138,596 46,554 185,150 Creditors due within one year (48,973) (49,973)

88,623 46,554 135,177

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Unrestricted Restricted Total funds funds funds 2016 2016 2016 f 6 8 Tangible fixed assets 175 175 Current assets 106,602 46,545 153,147 Creditors due within one year (59,106) (59,106)

47,496 46,720 94,216

14. RELATED PARTY TRANSACTIONS

Balance at Received Paid year end 8 8 Zakat House 17,542 Human Appeal 13,986 Islamic Relief UK 25,000 84 Muslim Hands 25,000 1,170 The World Federation 25,632 Penny Appeal 26,082 Al Khair Foundation 30,000

The chadty has received funds or made payment to other organisations where the Trustees have involvement as follows:

Zskat House - Dr. Hany El Banns is a trustee. Human Appeal - Dr Othman Moqbel is the Chief Executive. Islamic Relief UK - Mr Imran Madden is the UK Director. Islamic Relief UK - Mr Tufail Hussein Khan is the Deputy Director. The World Federation - Shan-e-Abbss Sadik Hassanali Hassam is the Secretary General. Muslim Hands - Syed Lakthe Hassanain is the Chairman. Penny Appeal - Adeem Younis is the Chairman. Al-Khair Foundation - Mr Shuaib Yusaf is the Chief Executive,

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