The Trustees present their annual report and financial statements for the year ended 31 December 2023.
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 trust deed, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016).
The charity's objectives are that it may in its discretion, in accordance with the Islamic laws, provide the following, particularly in developing countries:
(1) relieving poverty and suffering
(2) providing medical care
(3) promoting family values
(4) caring for orphans, aged people and all in need
(5) providing all levels of education and vocational training and
(6) promoting the Islamic religion
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Grant making policy:
1. Requests for donations are forwarded to the charity's Distribution Committee.
2. Upon receipt of the requests, the appropriate due diligence of the requesting party is performed as the Committee deems fit.
3. The Distribution Committee discusses the merits of the requests in the light of the reports and makes decisions as it may think fit.
4. The Distribution Committee's decision is unanimous.
Public Benefit
The trustees have considered the guidance produced by the Charity Commission on the provisions of public benefit and they confirm that Public benefit has been provided by supporting other charities in the UK and overseas.
The trustees always ensure that the programmes undertaken are in line with their objectives and aims set out above.
International Development Foundation's affairs and activities for the year are presented in the attached financial statements which show a deficit of expenditure over income of £75,084 (2022: £95,352). The balance of the unrestricted funds was £101,502 at 31st December 2023 (2022: £176,586).
The charitable expenditure during the year has been made in accordance with the key objectives of the charity.
It remains the trustees ultimate policy to hold undistributed funds to ensure sufficient reserves for 3-6 months costs of the Charity. However, in the last few years there have been some unexpected events which have resulted in the charity holding more than the Trustees would have envisaged. These events being:
A few years ago there was a large investment disposal resulting in the charity having more funds than the Trustees were expecting to spend on charitable causes
The COVID 19 pandemic meant that there were less meetings held by the Trustees due to travel restrictions
The pandemic also meant that many of the charitable works which were planned pre COVID were postponed and the Trustees needed to research other projects in that time
Charitable donations by IDF have continued in 2023 and the Trustees expect the unrestricted funds to be used in the future with only 3-6 months being held in reserve from them on.
Risk Management
The Trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Future Plans and Projections
The trustees' future plans is to carry on giving donations to the Islamic Foundation during the 2023 as per prior years.
Governing document
The charity is controlled by its governing document and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Trustee directors and their interests
The Trustees, who are also the directors for the purpose of company law, and who served during the year were:
There are three founding directors (all members of the Bin Mahfouz family) who are permanent trustees of the charity. The remaining directors are re-elected annually to the board of Trustees, by agreement of the board at the AGM.
None of the Trustees have any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Organisational structure
International Development Foundation (IDF) is a registered charity and a company limited by guarantee, which does not have a share capital. Except where disclosed, the trustees do not have any financial interest in the company or significant contracts in which there is a material interest.
The directors who are also trustees meet regularly to assess and approve grant applications through a Distribution Committee, which has been established to supervise donations by the charity.
The directors do not recommend payment of final dividend.
The trustees' report was approved by the Board of Trustees.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of International Development Foundation (IDF) for the year ended 31 December 2023, set out on pages 5 to 11 from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/
This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter dated 13 August 2019. Our work has been undertaken solely to prepare for your approval the financial statements of International Development Foundation (IDF) and state those matters that we have agreed to state to the charity's Trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than International Development Foundation (IDF) and the charity's Trustees as a body, for our work or for this report.
It is your duty to ensure that the charity has kept adequate accounting records and to prepare statutory accounts that give a true and fair view under the Companies Act 2006. You consider that the charity is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of International Development Foundation (IDF). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
International Development Foundation (IDF) is a private company limited by guarantee incorporated in England and Wales. The registered office is 3rd Floor, 12 Stanhope Gate, London, W1K 1AW.
The accounts have been prepared in accordance with the charity's trust deed, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs related to the category.
Costs of generating funds are the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient in the control of the charity.
Provisions for the grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about whether the timing of the grant or the amount of grant payable.
Governance costs
Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
None of the Trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed any expenses (2022- £Nil).
The average monthly number of employees during the year was:
The company is a registered charity and is, therefore, exempt from taxation.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Controlling entity
The charity is controlled by the trustees who are all directors of the company.
Related party transactions
During the year, Sedco Services Limited, a company incorporated in England, provided accounting services to the value of £6,531 (2022: £6,531). The trustees, A S Bin Mahfouz and W Bin Mahfouz are also shareholders of Sedco Services Limited. At the balance sheet date the amount of £6,531 (2022: £6,531) was outstanding and the services were provided at arms length with the approval of the non-conflicted trustees following detailed evaluation.