Islamic Relief SA2013 Annual Report & Financial Statements

Contents

Message from the Country Director

Our Strategy and Organisational Objectives

Protecting Life and Dignity

Emergency projects around the world

Empowering Communities

Campaigning for Change

Seasonal Projects: Ramadan

Seasonal Projects: Qurbani

Orphan and Child Welfare

• Orphan Sponsorship• Osizweni Community Centre• Educate-A-Child Project

Events

• 10 Year Anniversary Gala Dinner• Evening of Inspiration Concert Series• Mandela Day• Amsterdam Million Rand Challenge

Future Plans

Audited Financial StatementsPa

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Message from the Country DirectorAs salamu alaykumPeace be upon you all

It gives me great pleasure to present the 2013 Annual Report and audited financial statements for Islamic Relief South Africa.

As you will read in this report, the past year saw the Islamic Relief global humanitarian family, bring about a lasting change in new and innovative ways, and minimize the impact of disasters in a more disruptive world.

This document showcases some of the successful projects Islamic Relief South Africa had implemented both locally and abroad. We also reflect on some of the challenges we still face as a growing organization and provide a glimpse into our future plans.

This year saw Islamic Relief South Africa form a number of strategic partnerships with likeminded organisations.

One notable partner is the 2 Oceans Education Foundation (2OEF) that provides holistic development and educational guidance for some of the country’s most vulnerable school-aged children.

Through our “Educate A Leader” project and the 2OEF Education model, we believe we can provide one of the most effective ways to help address and re-dress the socio-economic imbalances in our country.

This initiative together with our flagship Osizweni (Orphans and Vulnerable children) model, exemplifies Islamic Relief’s strategy towards overall and effective social development.

We were also fortunate to have appointed brand ambassadors from different fields of interest, to support our various initiatives for the betterment of society.

The notable individuals include local athlete and educator Irafaan Abrahams, South African cricketer Vernon Philander and internationally renowned Nasheed artists Zain and Rashid Bhikha.

We also celebrated our tenth anniversary of service in South Africa with two successful events. We firstly hosted a three city gala dinner that not only helped to raise much-needed funds for our local and international projects but also confirmed that Islamic Relief is a vital conduit to provide humanitarian and relief aid needs both locally and globally.

The second event that we are especially proud of is the four-city “Evening of Inspiration” nasheed extravaganza that coupled socially conscious artists with our organizational aims to help raise awareness about the plight of the disadvantaged and vulnerable persons in our communities.

The world marked the passing of former President Nelson Mandela and at Islamic Relief we are particularly proud that we can continue his legacy of selfless service by supporting a worldwide initiative to fund the Oncology wing of the Nelson Mandela Children’s Trust Hospital.

Finally, as I reflect on our various successes I am also reminded that the world is in crisis. Children in amongst others Palestine, Syria, Iraq, Burma, Central African Republic are enduring disastrous humanitarian ordeals that no person should ever have to endure.

Therefore despite the positive efforts made, we also know that our work is needed even more and thus we need to continue to exert our efforts with more fervor and intensity in the coming years. Was Salaam Yours in serving Humanity

Yusuf Patel Country Director South Africa

Our strategyOur ambitious Global Strategy 2011 - 2015 sets out how we are putting our faith into action to secure the greatest possible positive impact on the people we serve. We are guided by the timeless values and teachings of Islam, with challenging aims designed to facilitate real social change. In addition, we are also fulfilling a set of core promises throughout our work:

Strengthening local capacity: We empower communities to manage their own affairs, and develop the capacity of civil society itself.

Protecting children: We mainstream child protection and ensure that our programmes are child-focused.

Providing Islamic perspectives: We are a policy leader on Islamic humanitarianism, and we develop distinctive, practical approaches to the key issues that are affecting our world.

Protecting the environment: We promote climate-change adaptation as well as initiatives to safeguard the environment from further harm.

As we approach the end of our current strategy, this Annual Report reflects on our progress in achieving our aims.

Objectives and ActivitiesThe overarching aim of Islamic Relief Worldwide is to provide relief of poverty in any part of the world.

Inspired by our Islamic faith and guided by our values, we envisage a caring world where communities are empowered, social obligations are fulfilled and people respond as one to the suffering of others.

We aim to do this through our relief, development and advocacy work with vulnerable communities around the world - regardless of race, political affiliation, gender or belief and without expecting anything in return.

Our mission is to mobilise resources, build partnerships and develop local capacity, as we work to:

• Enable communities to mitigate the effect of disasters, prepare for their occurrence and respond by providing relief, protection and recovery

• Promote integrated development and environmental custodianship with a focus on sustainable livelihoods

• Support the marginalised and vulnerable to voice their needs and address the root causes of poverty.

As we lead the way in Islamic humanitarianism, during 2011-2015 we will:

• Understand the threats to our world, and prepare people for them

• Address the underlying causes of poverty through our programmes and policies

• Develop a deeper faith-based framework for humanitarianism and development that offers leadership and guidance on issues affecting the developing world.

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Protecting life and dignity

Responding to disasters and reducing their impactIslamic Relief has been responding to emergencies for almost three decades and every year, we increase the work we do to protect those living in high risk areas. In 2013, we continued to provide a lifeline for vulnerable communities affected by disaster and poverty around the world.

Syria: ongoing emergency relief

As violent conflict in Syria rages on, we continued to provide a humanitarian lifeline for those suffering in the worst humanitarian crisis for our time.

Working deep inside war-torn Syria, we delivered essential items such as food, hygiene kits and medicine to help more than 1.4 million people. Over 672,300 vulnerable Syrians seeking safety in nearby countries also benefited from Islamic Relief programmes.

In Iraq, Islamic Relief managed the Al Qaem camp - where our medical clinic treated 40,000 Syrian patients. Hundreds participated in classes to develop their employability skills, such as English language and computing.

As part of our programmes in Lebanon, 12,000 Syrian and Palestinian children benefitted from psychosocial support, in a project which also helped hundreds of displaced families to come to terms with their experiences.

In Jordan, we covered the cost of rented accommodation for 141 poor families and distributed over 388,300 World Food Programme (WFP) Vouchers - enabling families to buy essential supplies. In addition, our Egypt programme provided cash assistance to more than 63,973 people facing destitution.

The Philippine: typhoon response

In November 2013, Islamic Relief teams were on the ground in the aftermath of one of the most powerful storms to ever make landfall. Our emergency response to Typhoon Haiyan reached 133,160 people across the hardest-hit areas this year.

Working with a local partner, we grappled with challenges such as blocked roads and damaged airports to get vital aid to vulnerable communities - mostly in northern Cebu. Over 20,000 families received food parcels and water. Tents provided shelter to almost 2,400 families that had lost their homes. People used Islamic Relief plastic sheeting and repair kits to improve their makeshift shelters

Emergency projects around the world

Cyclone Phailin crashed into coastal communities in India in October, affecting around 12 million people. We responded with emergency food aid, benefitting over 18,000 of the most vulnerable individuals.

Almost one million people were affected by flooding across Sudan, which damaged or destroyed tens of thousands of homes. We distributed hygiene kits, sleeping mats and mosquito nets, and worked with the government to give over 10,000 people access to safe water.

In Gaza, floodwaters inundated hundreds of homes and heavy rains damaged temporary shelters in refugee camps. We provided vital aid, including food, mattresses, blankets and hygiene kits.

In Niger, over 2,300 families living in a refugee camp bought essential staples using the World Food Programme vouchers that we distributed.

Children and breastfeeding mothers suffering malnutrition in communities around the world received nutritional support. Around 81,800 people benefited in northern Mali, as well as over 106,400 Afghans and 4,100 people in Pakistan.

In south eastern Bangladesh – where 1.3 million people were affected by flooding – almost 8,800 families received cash grants that enabled them to rebuild their livelihoods.

Protecting communities from disasters

In 2013, we continued much-needed work to protect vulnerable communities from the impact of disasters. We taught Indonesian school-children what to do when an earthquake strikes, and trained the personnel of mosques to prepare for disasters and to respond effectively - using the religious buildings as emergency shelters - when the worst happens.

In Chad, we kicked-off a comprehensive project to improve the resilience of communities affected by seasonal flooding. Over 1,800 people are benefitting from the scheme, which is constructing emergency shelters and training community volunteers to respond to emergencies – and help prevent the spread of disease when the floodwaters come.

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Empowering Communities

Promoting development and sustainable livelihoods Every year, our development programmes around the world help poor communities to improve their lives. Our sustainable development projects give people the opportunity to lift themselves out of poverty through improving their livelihoods and giving them access to better essential services.

Improving food security

In some of the world’s poorest countries, we are reducing dependency on humanitarian aid by improving food security.

In Malawi - where 1.85 million people face hunger – we trained communities to look after fully-stocked fishponds that provide a sustainable source of food and income.

In Niger, we employed local people to help improve irrigation systems for much needed farming land and establish plantations.

To achieve long-term change, communities are learning to protect vital natural resources – with women empowered as breadwinners and community decision makers.

Better access to essential services

In Niger’s poorest region, 460 vulnerable children benefitted from a comprehensive project covering three Tillabery primary schools. The project included providing better water, sanitation and heating facilities, and hundreds of children were given school bags filled with stationery. We also improved healthcare provision for over 5,000 people by providing the local health centre with essential medicines and equipment.

In Mandera county, Kenya, more than 5,000 people can now access water locally. We improved the existing infrastructure and added new systems such as water tanks and pumps, and a solar power generator.

Over 10,700 people in Sudan’s Blue Nile state also gained improved access to water in 2013, when new hand pumps were installed. Communities were trained to maintain their water sources and to prevent the spread of disease. In addition, an integrated project provided communities in West Darfur with access to essential services including water, healthcare and education – and also created opportunities for hundreds of people to earn a living.

In Pakistan’s mountainous Bagh district, over 21,100 people benefitted from a unique project to improve access to water as well as other essential services in remote communities. We installed rain-water harvesting systems in poor households, improved local roads, and constructed safe walking paths to make it easier for local children to get to school.

In rural Rangpur, around 1,100 poor Bangladeshis regained their sight, thanks to cataract operations – with thousands more benefitting from eyecare services and general health advice. In Somalia, at a clinic on the outskirts of the capital, over 10,000 people received essential healthcare, many of them expectant and new mothers.

Also in 2013, Tataouine regional hospital in Tunisia received vital equipment, including foetal monitors and intensive care unit beds. In addition, approximately 300,000 people in the West Bank will now have improved access to local healthcare as a community hospital is provided with a fully equipped operating room as well as other essential apparatus.

In Gaza, 350,000 people will benefit from the extensive repairs carried out on two damaged health clinics.

Campaigning for change

A force for social justiceWe work to tackle the root causes of poverty and suffering worldwide, in accordance with the prophetic example of speaking out against injustice. This year, our challenging advocacy and campaigning efforts gave vulnerable and marginalised communities a voice, and were an active force for positive change.

Protecting children’s rights

Over 2,000 Kenyan children living in an informal settlement in Nairobi benefitted from an ambitious child protection initiative. An advertising campaign put issues such as child homelessness, substance abuse and domestic violence at the top of the agenda. Children in four schools learned about protection issues. We also trained dozens of teachers and community leaders, and together they developed an action plan that prioritises child welfare..

Syria war: action to ease suffering

This year saw greater focus than ever on our efforts to end the suffering of Syria’s brutal conflict. We pushed for access and humanitarian corridors in the war-torn country. Our ‘Syria: Two Years, Too Long’ report set out key recommendations to reduce the suffering of Syrians, and was presented to the UK government. A petition called for international action to secure better access to the country. In addition – as part of our Take Action for Syria campaign – children around the world wrote letters to Ban-Ki-Moon, calling for the United Nations to save Syria’s children.The report provided eight key recommendations to ease the suffering of the Syrian people and called for the implementation of humanitarian corridors inside Syria

Pakistan: calling for an end to debt

This was also the year we joined forces with the Jubilee Debt Campaign to call for an end to Pakistan’s debt crisis. In a country in which over 50 million people live below the poverty line, the poorest are paying the heaviest price as the debt burden suffocates public spending and development. Our ‘Unlocking the Chains’ campaign pushed for a full and transparent audit of Pakistan’s debt, and for unjust debts to be cancelled

Tackling global hunger and poverty

We responded to the deepening humanitarian crisis in Mali, one of the poorest countries on the planet. Our report on the on-going crisis called for immediate international action, and a publication, ‘Greening the Desert’, set out a framework for tackling poverty through water solutions.

In addition, we threw our weight behind a global day of action on hunger, delivered as part of our work through the ‘Enough Food for Everyone IF’ partnership. We mobilised communities in Bangladesh, Indonesia, South Africa and the UK to lobby for action to address a global food crisis in which over 200 children die from malnutrition every hour. Ahead of a key G8 hunger summit, world leaders and other donors pledged $4.1 billion to tackle malnutrition - which could save the lives of almost two million children by 2020

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Ramadan

This year, our seasonal food distributions once more provided poor families with vital nutrition during the festive periods. Over two million people benefitted from quality Qurbani meat, and - with a budget of almost £3.9 million GBP - our biggest ever Ramadan distribution reached 735,375 people in 31 countries across the globe.

Ramadan is a month of reflection, prayer and fasting for Muslims. During this time, observers gain a better understanding of the suffering of impoverished and hungry people around the world. The month also reminds Muslims of the importance of charity, and their obligation to be charitable throughout the year.

Our fitrah hamper projects supports more than 3,000 of South Africa’s poorest citizens. Our campaign also included supporting households in Zimbabwe where we facilitated hamper distribution and mass Iftaar programmes at the Mbare mosque in Harare.

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Orphan Iftaar Evening 2013

One of the highlights for the Islamic Relief South Africa family is hosting our annual Orphan Iftaar Evening. It is an opportunity for our donors and supporters to meet and spent time our orphaned and vulnerable children, who has benefitted from your charity.

Islamic Relief annually provides meat to impoverished communities through its Qurbani programme, which was initiated in 1986. This project allows donors to purchase sheep and goats for sacrifice for specific countries on the day of Eid-ul-Adha.

By implementing the Qurbani project, we are able to reach a diverse range of recipients who include widows, orphans, the elderly and refugees. It also enables them to celebrate this auspicious day with dignity.

The Qurbani project complements Islamic Relief’s on-going food security programme, which provides orphaned and vulnerable families with a food pack on a monthly basis.

This year, Islamic Relief performed Qurbani (sheep / goats / cattle) regionally in Malawi, Zimbabwe and South Africa.

Qurbani

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Orphan SponsorshipIslamic Relief’s Oprhan programme aims to alleviate the suffering of orphans living in the world’s most impoverished countries.

This is done through an integrated One-to-One sponsorship programme that sees to the health, educational and social welfare needs of orphaned children.

Islamic Relief began working with orphaned children in 1986 and to date, support more than 30,000 children worldwide.

Osizweni Community CentreAn integrated Community modelMore than 600 orphans and vulnerable children are being supported by Islamic Relief South Africa at the Osizweni Community Centre in Ennerdale, south of Johannesburg.

Osizweni targets those infected and affected by HIV and Aids, including widows and female-headed households and those living with disabilities.

It was designed to facilitate Ennerdale’s youth as well as the elderly who needed an environment to bridge the gap with people who are facing extreme poverty.

The Department of Agriculture recently donated a borehole facility, which serves as an irrigation system for the large communal food garden on the premises, which is run by staff and avid community gardeners.

Islamic Relief donors also contributed towards a sewing room that is equipped to manufacture school uniforms, clothes for winter and blankets. Some of these items are sold to the community, with a portion of the income used to cover some of the Centre’s running costs.

Educate A Child

Strategic Partnership: 2 Oceans Education Foundation

Islamic Relief South Africa formed a strategic partnership with the 2 Oceans Education Foundation to provide disadvantaged youth to access to quality education in townships across South Africa.

The project has been endorsed by Minister of Science and Technology, Naledi Pandor and Department of Education and offers a holistic approach to education. This would entail establishing free, low cost schooling, which includes a sports academy and leadership academy model where learners are empowered.

“Islamic Relief together with the 2 Oceans Education Foundation are committed to making quality education more easily accessible to those living in impoverished areas as we strongly believe that education is an imperative in escaping poverty.”

– Yusuf Patel, Islamic Relief South Africa Country Director

Strategic Partnership: Nelson Mandela Children’s Hospital Fund

Africa suffers from a lack of dedicated pediatric facilities with only four on the continent; two situated in Cairo, one in Nairobi and one in Cape Town. This compares dismally to developed countries.

As part of Nelson Mandela’s dedication and compassion for children, one of his last wishes was to establish a state of the art children’s hospital to serve all of Southern Africa.

Given the shared values of the Nelson Mandela Children’s Hospital Trust and Islamic Relief Worldwide, Islamic Relief South Africa is leading an initiative to raise funds to help build a hospital.

According to the Nelson Mandela Fund, the founding institution of the Nelson Mandela Children’s Hospital Trust, the facility will not merely serve as a hospital, but will work towards the creation of a “dedicated academic tertiary and quaternary pediatric referral facility, serving the children of southern Africa, irrespective of socio-economic standing.”

Islamic Relief has pledged to raise $10 million to support the development of the hospital’s Oncology wing.

“Nelson Mandela was an inspiration for many around the world. He dedicated his life to equality, justice, reconciliation and freedom. His global legacy is far-reaching and profound. Islamic Relief is proud to support a hospital, which will carry his name and will be a leading light in the treatment of children. We pray that this will be a fitting tribute to his legacy.”

– Dr Mohamed Ashmawey, Chief Executive Officer of Islamic Relief Worldwide

The Educate A Child campaign is aimed at raising awareness of the challenges faced by orphans and vulnerable children who cannot further their basic schooling because of extreme poverty.

Through this fundraising project, we are assisting approximately 1,000 righst holders from pre-school through to Primary, Secondary and Tertiary levels.

Many rights holders come from child-headed households or are being raised by grandparents.

The annual ‘Ready for School’ project forms parts of the educational campaign, which provides young learners with uniforms and school supplies.

Stanlib generously supported this initiative with a generous donation of R50,000 which helped us kit out more than 200 learners for the new school year.

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Amsterdam Million Rand ChallengeIslamic Relief South Africa joined forces with the Amsterdam Million Rand Challenge and educator Irafaan Abrahams, to ensure that good, quality education becomes more easily accessible to those living in impoverished communities across South Africa.

“We strongly believe that education is imperative to escaping the vicious cycle of poverty. Our contribution to Irafaan’s Amsterdam Marathon Challenge should be viewed, not as a donation, but as an investment in the future of this country,” said IRSA Country Director Yusuf Patel during the official launch of the initiative in Cape Town on Wednesday.

Islamic Relief’s Educate-a-Child campaign is aimed at raising awareness about the challenges faced by orphans and vulnerable children (OVC); many of whom cannot further their basic education because of extreme poverty.

During the school year, the NGO ensures that new school uniforms and stationery are handed out to beneficiaries of IRSA’s Orphan and Child Welfare program, restoring their dignity in the classroom.

“Our research has found that many learners coming from poor households drop out of school as their guardians cannot afford to purchase the necessary school materials. This is a serious concern and we are working closely with partners such as Irafaan Abrahams and the 2 Oceans Education Foundation, to meet our educational objectives.”

EventsIslamic Relief South Africa celebrated its 10th anniversary in 2013 and hosted a series of events to showcase some of its success stories.

10 year Anniversary Gala DinnerThe 10th Anniversary Gala Dinner was hosted by comedian Joey Rasdien and featured special appearances by IR Scotland’s Habib Malik and nasheed artist Bandar Ashour.

In September and October, we brought together leading performers and artists from across the Islamic world for an Evening of Inspiration concert series, with world-class production and dynamic performances by Zain Bhikha, Dawud Wharnsby, Khaled Belrhouzi and comedian Omar Regan.

The events helped raise awareness of Islamic Relief’s activities and generated much-needed funds for children around the world.

Evening of Inspiration Concert SeriesIn September and October, Islamic Relief South Africa brought together leading performers from the Islamic cultural world for an Evening of Inspiration concert series.

Talented artists who shared their talents with ardent South African fans included Zain Bhikha, Dawud Wharnsby, Khaled Belrhouzi and comedian Omar Regan.

The event helped raise awareness of IRSA’s activities and generated much needed funds for children around the world.

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Impact-led Approach

Islamic Relief South Africa (IRSA) strongly believes in empowering the people we assist with the abilities and skills needed to remove themselves from the viscous poverty cycle. We aim to address this through a sustainable, integrated approach of bringing good quality education to children in underprivileged communities instead taking them to access education elsewhere. We envision that this will enable these children to improve their own lives and exit the poverty cycle.

Closer to Ground

Until now, most of our campaigns were focused on our international humanitarian appeals, but now we are determined to increase our efforts locally. There are far too many social issues directly related to poverty within South Africa and so we have identified the need to shift our focus to what is happening on our own doorstep. We aim to tackle these poverty-related ills with the assistance of other local organisations who share the same vision of poverty alleviation as we do to ensure we maximise the reach and impact of our efforts.

Providing Islamic Perspective

The work IRSA does is driven by Islamic values which makes it imperative that we strive to lead the way in Islamic policy on humanitarian issues. We will continue to use our faith-guided values and beliefs to implement our new strategies and projects with the hope that the changing coming from within the organisation will help change the lives of entire communities. We strongly believe that Islamic teachings are vital to our mission to alleviating poverty.

Strengthen Local Capacity

Our plans to establish resource centres in local townships will have a positive impact on poverty levels in the country. The resource centre will assist vulnerable youth to equip themselves with computer literacy skills, which is an essential skill in today’s workforce. IRSA is committed to ensuring that these communities will be able to manage their own affairs after Islamic Relief has provided them with the necessary assistance.

Every Penny put to good use

IRSA will continue to be transparent about our financial affairs. We have been and always will be committed to increasing the output of our projects and to increasingly cut down on administrative expenses.

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AUDITED FINANCIAL STATEMENTS

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FINANCIALSBoard Letter

Report on the financial statementsWe have audited the accompanying financial statements of the Islamic Relief Worldwide-South Africa NPC, which comprises the directors’ report, statement of financial position as at 31 December 2013, and the statement of comprehensive income, statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes set out on pages 4 to 14.

Directors ‘responsibility for

the financial statements

The company’s directors are responsible for the preparation and the fair presentation of these financial statements in accordance with International Financial Reporting Standards for Small AND Medium –sized Entities, and in the manner required by the Companies Act of South Africa. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. These standards required that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the porpose of expressing an opinion on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Qualification

In common with similar organisations, it is not feasible for the organisation to institute accounting ‘controls over collections of income other than interest prior to the initial entry of the collections in the ‘accounting records. Accordingly, it was impracticable for us to extend our examination beyond the ‘receipts actually recorded.

Qualified Opinion

In our opinion, except for the effects on the financial statements of the matters referred to in the preceding paragraphs, the financial statements fairly present, in all material respects, the financial position of the Islamic Relief Worldwide- South Africa NPC as at 21 December 2013, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium –sized Entities, and in the manner required by the Companies Act of South Africa Act of South Africa.

Supplementary information

The supplementary schedules set out on pages 15 and 16 does not form part of the annual financial statements and is presented as additional information. We have not audited these schedules and accordingly we do not express an opinion on it.

Douglas &VelcichChartered Accountants (SA)Registered Accountants and AuditorsJohannesburg14 th June 2014

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERSISLAMIC RELIEF WORLDWIDE –SOUTH AFRICA NPCREGISTRATION NO.2004/025107/08

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ISLAMIC  RELIEF  WORLDWIDE  -­‐  SOUTH  AFRICA  NPCREGISTRATION  NO.  2004/025107/08SUMMARISED  AUDITED  ANNUAL  FINANCIAL  STATEMENTS

SUMMARISED  STATEMENT  OF  COMPREHENSIVE  INCOMEFOR  YEAR  ENDING 31-­‐Dec-­‐13 31-­‐Dec-­‐12

R RR'000 R'000

INCOME

Restricted 26  055                             30  458                            Unrestricted 8  003                                 6  560                                Other 126                                       155                                      

TOTAL  INCOME 34  184                           37  173                          

EXPENDITURE

Project/Programme  Distribution  (South  Africa) 21  584                             7  716                                Project/Programme  Distribution  (International) 17  931                             3  976                                Operational  Costs 8  525                                 6  686                                

TOTAL  EXPENDITURE 48  040                           18  378                          

SURPLUS/(DEFICIT)  FOR  THE  YEAR (13  856)                         18  795                          

STATEMENT  OF  CASHFLOW  FOR  Y/E   31-­‐Dec-­‐13 31-­‐Dec-­‐12R R

R'000 R'000OPERATING  ACTIVITIES

Cash  received  from  donors 33  097                             36  521                            Cash  spent  on  projects (39  515)                         (11  692)                        Cash  paid  to  suppliers  and  employees (8  289)                               (6  558)                              

CASH  GENERATED  BY  OPERATIONS (14  707)                         18  271                          

Other  Income 125                                       155                                      

NET  CASH  INFLOW  (OUTFLOW) (14  582)                         18  426                          

Acquisition  of  tangible  assets (155)                                     (45)                                        

NET  INCREASE  (DECREASE)  IN  CASH  RESOURCES (14  737)                         18  381                          

CASH  AT  BEGINNING  OF  YEAR 23  914                           5  533                                

CASH  AT  YEAR  END 9  177                                 23  914                          

FINANCIALSSummarised Statement

FINANCIALSBalance Sheet

ISLAMIC  RELIEF  WORLDWIDE  -­‐  SOUTH  AFRICA  NPCREGISTRATION  NO.  2004/025107/08SUMMARISED  AUDITED  ANNUAL  FINANCIAL  STATEMENTS

BALANCE  SHEET  AS  AT 31-­‐Dec-­‐13 31-­‐Dec-­‐12R R

R'000 R'000

ASSETS 11  251                           25  023                          

Non-­‐current  Assets 545                                       540                                      

Land  and  Buildings 315                                       315                                      Equipment 230                                       225                                      

Current  Assets 10  706                           24  483                          

Cash  and  Cash  Equivalents 1  529                                 568                                      Trade  and  Other  Receivables 9  177                                 23  915                            

TOTAL  ASSETS 11  251                           25  023                          

RESERVES  AND  LIABILITIES 11  252                           25  022                          

Accumulated  Funds 11  102                           24  958                          

Restricted  Funds 5  375                                 21  841                            Unrestricted  Funds 5  727                                 3  117                                

Current  Liabilities 150                                       64                                          

Accounts  Payable 150                                       64                                          

TOTAL  RESERVES  AND  LIABILITIES 11  252                           25  022                          

STATEMENT  OF  CHANGES  IN  RESERVES  AS  AT  31  DECEMBER  2013

Restricted   UnrestrictedFunds Funds TotalR'000 R'000 R'000

Balance  as  at  31  Dec  2011 5  774                             389                                       6  163                                

Surplus  for  the  year 16  066                         2  728                                 18  795                            

Balance  as  at  31  Dec  2012 21  840                         3  117                                 24  958                          

(Deficit)  Surplus  for  the  year (16  466)                       2  610                                 (13  856)                        

Balance  as  at  31  Dec  2013 5  374                             5  727                                 11  102                          

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FINANCIALSGraphs

Islamic Relief focusses on providing maximum benefit to its rights holders. Over the years, operational expenditure has been kept to a minimum, except when it has come to delivering benefit to rights holders.

The relationship between unrestricted and restricted funds measures the strength of our organisation in several aspects. Unrestricted funds are donated to Islamic Relief in order for the organisation to further its objectives. It can be used for operational requirements, resource requirements as well as in programmes and projects which arise in either cases of emergencies, or as a result of natural or unnatural disasters.

Restricted Funds are funds which are donated to Islamic Relief for particular causes, programmes and projects. Such cases include donations towards Ramadhan, Qurbani, Back to School Programmes, as well as water projects, projects in countries such as Palestine, Sudan, Central African Republic, etc.

Islamic Relief South Africa are recipients of Sadaqah, Zakat and Lillah and ensures that funds are receipted, safeguarded and utilised in accordance with its global policy and framework.

Over the years, our unrestricted funds income has grown to between 23% and 25%. We predict a slight drop in unrestricted funds income in 2015, and this is in line with our anticipated increase in overall income.

In respect of distribution, It is Islamic Relief South Africa’s goal to reduce the gap between income and distribution to bring it in line with generally acceptable operational funds being kept – currently 6 to 8 months of our operational budget. This is to safeguard the organisation in terms of its ability to respond to an emergency, and to ensure that the organisation does not come under threat of inoperability due to scarcity of funds.

One of the most responsible tasks faced in finance is the management and control of operational expenditure. In this regard, Islamic Relief measures within its budget, and targets an operational bandwidth of expenditure within 12% to 14%. This will improve as the anticipated overall income bandwidth increases.

Islamic Relief South Africa is a registered non-profit company (2004/025107/08), a non-profit organisation (043-357NPO) and we are also registered as an Public Benefit Organisation (PBO 930018104). Our policy framework and governance measures up to and mostly exceeds best practice standards in the world.

Islamic Relief South Africa prides itself through its transparency and accountability.

If you require information relating to our policy, processes, financial guidelines, or financial reports, do not hesitate to email us on finance@islamic-relief.org.za or call 021-6960145 to ask to speak to our Head of Finance for any queries you may have.

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Islamic Relief South Africa

Johannesburg1st Floor,57 Mint RoadFordsburgTel: 011 836 1054Fax: 011 836 1055

Durban1st Floor, 169 Brickfield RoadOverportTel: 031 208 2838Fax: 031 207 9141

Cape Town62 Little RoadAthloneTel: 021 696 0145Fax: 021 696 1783

P.O Box 19434 Dormerton 4015,South Africa

Registered charity: PBO 930018104