Charity registration number 1066665 (England and Wales) MUSLIM WELFARE INSTITUTE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 • xeinadin
MUSLIM WELFARE INSTITUTE LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr H M Patel Mr Y Moosa MrA Raje Charity number (England and Wales) 1066665 Principal address Unit 301 Daisyfield Business Centre Blackburn Lancashire BB13BL Auditor Xeinadin Audil Limited Ground Floor, Citygate Longridge Road Preslon Lancashire United Kingdom PR2 5BQ
MUSLIM WELFARE INSTITUTE CONTENTS Page Trustees, report Independent audilor's report statement of financial activities Balance Sheet Statement of cash flows 10 Notes to Ihe financial statements
MUSLIM WELFARE INSTITUTE TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The trustees present their annual report and financial stalements for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounling and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing Iheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" Objectives and activities The objectives of the charity are as outlined in the charity's Goveming Instrument. The main objective of the charity is needy people primarily in, but not restricted to, India, Albania and Bangladesh by focusing on the following areas: Providing housing and healthcare facilities Establishing and renovating mosques. cultural centre and madrasas Providing educalion and training in Islamic faith Public benefit The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The charity run on the basis of public benefit and not for profit purpose. Achievements and perfonnance Significant activiti&s and achievements against objectives This years annual report covers the 7 countries we are working in at present. We have separated the countries into 3 regions.. The Balkans which covers Albania. Bosnia and Macedonia. United Kingdom which covers England. Asia which covers Bangladesh. India and West Bengal. The Balkans Albania Dar* Arqam Education Centre Our new Dar- e-Arqam Education Centre in Tirana completed its fourth full year during 2024. Residential Institute - Belesh Our residential instilute at one of the local Mosques in the village of Belesh had been running for over 15 years. 10 students resided on a full time basis, where all their needs were provided for. Many sludents enrolled for shorter periods and a number of students attended part time courses throughoul Ihe year. Non Residential Institute- Laknas Our non residential institute opened in Laknas in 2015 and completed its 8th year. The institute is in use during weekdays for education classes for sludents and on the weekends for education classes for orphans and also widows. Intention is lo increase programmes at this inslitute in the coming years. Mosques Renovation Programme 6 Mosques were renovated throughout the year 2024. Food Distribution Project To assist needy families. we dislributed.. 1500 meat bags on Ihe occasion of Eid-ul-Adha. 2000 food packs during the Holy month of Ramadhan & at the time of Eid-ul-Fitr. Educational Projects 100 classes were funded by the MWI where over 1000 students received free education. Orphan5 Sponsorship 550 orphans were sponsored for 12 months.
MUSLIM WELFARE INSTITUTE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Bosnia Following a visit to Bosnia in 2018. the MWI initiated its first 2 projecls in Bosnia during the year 2020. We continued wilh this during the year 2024. Widows Sponsorship We sponsored 40 families with a cash grant of £200 each in Srebrenica. Families Sponsorship We sponsored 35 families in Mostar with £200 each. Macedonia Educational projects 13 classes were funded by the MWI where 200 children received free education. United Kingdom England Hardship Assistance Programme: Blackburn: Assistance was provided to a number of families who were going through difficult circumstances. Food, clothing, basic essentials, rental payments etc etc were provided. We worked closely with the refugees organisalions here in Blackburn, who carried out the due diligence checks. Asylum seekersl Refugees: We assisted a number of asylum seekers here in 8lackburn and the Northwest with cash grants. Asia Bangladesh Orphanage Project Our orphanage constructed at the village of Begumpur completed its 18th year. The orphanage is home to 30 orphans. A number of orphans who have reached the age of 18 have now moved on into either full time education. further studies or vocational training programmes depending on their final exam results. Education Programmes 35 part-time schools were funded where approx. 1500 children acquire secular & religious education. Food Distribution Approx 1250 families were provided with lftaar Packs in Ramadhan. Approx. 1500 gift packs were distributed prior lo the festival of Eid-ul-Fitr. 600 meat bags were distributed on the occasion of Eid-ul-Adha. Orphans Sponsorship 30 orphans sponsored. Water Programmes 45 hand pumps installed at various locations throughout the year. Income Support Programme 60 rickshaw vans distributed. Wheelchair Distribution 120 wheelchairs distributed. Group Weddings Programme Finance was provided for 35 couples who got married at the group weddings programmes that were organised during the year. Medical Projects 100 cataract operations were performed.
MUSLIM WELFARE INSTITUTE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Winter Clothing 1000 winter packs distributed during the winter period. India Masjid Construction 4 Masjids constructed. Weddings Programme 80 weddings financed. Cataract Operations 200 operations carried out. Dialysis Services 400 dialysis SeICe$ carried out. Food Distribution 2000 food parcels distributed during the holy month of Ramadhan & 2500 at the lime of Eid-ul-Fitr. Widowslorphans Sponsorship 100 orphans were sponsored in and around theAhmedabad area. West Bengall Bihar Students sponsorship 65 students sponsored to become Hafez of the Quraan at a local educational institute in Uttar Dinajpur. Masjid Construction 3 Masjids were constructed. Food Distribution 1000 food paelS distributed for the holy month of Ramadhan & 1000 at the time of Eid-ul-Fitr. Fundraising pra¢tlCgS isits MWI representativeslstaff visiled all the countries that we are working in, to assess and see the projects first hand and ensure they are running smoolhly. Financial review Reserves policy It is the policy of Ihe charily that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three to six month's expenditure. The trustèes consider that reserves at Ihis level will ensure that. in the event of a significanl drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This18vel of reserves has been maintained throughoul the year. Structure, governanco and management The trustees who served during the year and up to the date of signature of the finan¢ial 51atements were.. Mr H M Patel Mry Moosa MrA Raje Recnjitment and appointment of trustees Organisafional stnjcture The MWI truslee structure remains the same. No changes or amendmenls during the year.
MUSLIM WELFARE INSTITUTE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Other matters Risk Management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Muslim Welfare Institute has a risk management poliw which is regularly revised to identify and address all kinds of risk every year. The existing management team is well equipped to discourse, manage and report the risks internally and externally. The indicated risks identified were successfully reviewed and assessed by the senior management and trustees during the reporting period. These risks, including strategic, governance and operational risks, have been identified and ranked in terms of impact and likelihood. The trustees are satisfied Ihat systems are in place to monitor, manage and mitigate any exposure from these risks and ensure they are reviewed regularly. Property Purchase The MWI bought another premises on 18th April 2024 situated on Emerald Street this was previously a nursery. total amount paid £237.814, these premises are used for daily prayers, evening after school aclivilies, charity events to help needy people, refugees, asylum seekers and information sessions to help the local community. Statsment of trustees. responsibilities The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the truslees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charily and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the trustees are required lo= select suitable accounting policies and then apply them consislently: observe the methods and principles in Ihe Charities SORP., make judgements and eslimates Ihat are reasonable and prudenl., slate whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements.. and prepare the financial statement5 on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping sufficient a¢counling records that disclose with reasonable accuracy at any time the financial position of the charity and enable Ihem to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulalions 2008 and the provisions of the trusl deed. They are also responsible for safeguarding the assets of the charity and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees, report was approved by the Board of Trustees. Mr H M Patel Trustee Date..
MUSLIM WELFARE INSTITUTE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE Opinion We have audited the financial stalemenls of Muslim Welfare Institute (the 'charily'> for the year ended 31 December 2024 which comprise the slatement of financial activities, the balance sheet, the statemenl of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the slate of the charity's affairs as at 31 December 2024 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepled Accounting Pra¢lice- and have been prepared in accordanGe wilh the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs (UK)) and applicable law. Our responsibilities under Ihose standards are further described in the AUdit0S responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirement5 that are relevant to our audil of the financial slalements in the UK, including the FRC'S Ethical Slandard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial stalements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Ihe charity's ability to continue as a going concern for a period of at least hvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other infomiation The other information comprises the information included in the annual report other Ihan the financial statements and our auditor's report Ihereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othejwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relalion to which the Charities (Accounts and Reports) Regulations 2008 requires US to report to you if, in our opinion.. the infomiation given in the financial statements is inconsislent in any material respect with the trustees, report., or sufficient accounting records have not been kept,. or the financial statemenls are not in agreement with the accounting records.. or we have not received all the information and explanations we require for our audit.
MUSLIM WELFARE INSTITUTE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied thal they give a true and fair view, and for such internal control as the trustees determine is necessary lo enable the preparation of financial statemenls thal are free from material misstatement, whelher due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Irustees either intend lo cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulalions made or having effed thereundar. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatemenl, whelher due to fraud or error, and to issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee Ihat an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedure5 are capable of detecting irregularities. including fraud, is detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen, capabilities and skills to identify and recognise non-compliance wilh applicable laws and regulalions.. we identified the laws and regulalions applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the charities sector., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.. and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud. their knowledge of actual, suspected and alleged fraud.. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulalions. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpeGted relationships., -tested journals to identify unusual transactions.. assessed whelher judgements and assumptions made in determining the accounting estimate5 set out in notes to accounts were indicative of potential bias.. and investigated the rationale behind Significant or unusual transactions.
MUSLIM WELFARE INSTITUTE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statemenl disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with govemance; enquiring of management as to actual and potential litigation and claim5- and reviewing correspondence with HMRC. relevant regulalors including the Health and Safety Executive, and the Company's legal advisors. There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulalions to enquiry of Ihe directors and other management and Ihe inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud ¢an be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https:11 www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditofs report. Other matters Your attention is drawn to the fact that the charity has prepared financial statements in accordance with ' Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Stsndard applicable in the UK and Republic ol Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities.. Slatement of Recommended Practice issued or$ 1 April 2005 which is referred to in the extant regulations bul has now been withdrawn. This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities {A¢counts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to stale to them in an auditor'5 report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than Ihe charity and the charity's trustees as a body. for our audit work, for this report. or for the opinions we have fomied. J-aLPa Isenior Statutory Auditor) For and on behalf of Xeinadin Audit Limited. Statutory Audilor Chartered Accountants Ground Floor. Citygate Longridge Road Preston Lancashire PR2 5BQ United Kingdom Xeinadin Audit Limited is eligible for appointment as auditor of Ihe charily by virtue of its eligibility for appointment as auditor of a company under section 1212 ofthe CompaniesAct 2006.
MUSLIM WELFARE INSTITUTE STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestricted Restrictsd funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies 275.289 1,026,572 1,301,861 120.594 1,475,809 1,596.403 Total income 275.289 1,026,572 1,301,861 120,594 1,475,809 1,596,403 Expenditure on: Raising funds Charitable activities 9,612 9,612 152,433 1,007,945 1,160.378 10,000 10,000 190,186 1.519,414 1,709,600 Total expenditure 162,045 1,007,945 1,169,990 200.186 1,519,414 1,719,600 Net incomel(expenditure) 113,244 18,627 131,871 (79.592) (43,605) (123,197) Transfers between funds 24.846 (24.846) 11,827 (11.82n Net movement in funds 138,090 (6,219> 131,871 (67,765) (55.432) {123,197) Reconciliation of funds: Fund balances at 1 January 2024 317,357 10,429 327,786 385,122 65,861 450,983 Fund balances at 31 December 2024 455.447 4,210 459,657 317,357 10,429 327,786 The statement of financial adivities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivities.
MUSLIM WELFARE INSTITUTE BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Flxed assets Tangible assets 10 234,109 1,237 Current assets Debtors Cash at bank and in hand 11 189,549 40,800 303.543 27.406 230,349 330,949 Creditors: amounts falling due within one year 12 (4,801) (4.400) Net current assets 225,548 326,549 Total assets less current liabilities 459,657 327,786 The funds of the charity Restricted income funds Unrestricted funds 13 14 4,210 455,447 10,429 317.357 459,657 327.786 The financial statements were approved by the trustees on Mr H M Patel Trustee
MUSLIM WELFARE INSTITUTE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flows from operating activities Cash generated froml(absorbed by) operations 17 251,208 (54,103) Investing activities Purchase of tangible fixed assets (237,814) Net cash used In Investing activities (237,814) Net cash generated from financing activities Net increaselldecrease) in ca$h and cash equivalents 13,394 {54,103) Cash and cash equivalents at beginning of year 27,406 81,509 Cash and cash equivalents at end of year 40,800 27,406 10-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies Charity information Muslim Welfare Institute is a Unincorporated charity. The registered office address is Unit 301, Daisyfield Mill, Appleby Street, Blackburn, BB13BL. 1.1 Accounting convention The financial ststernenls have been prepared in accordance with the charity's governing document. the Charities Act 2011. FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statemenl 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)" The charity is a Public Benefil Entity as defined by FRS 102. 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 financial statements have been prepared under the historical c05t convention. The principal accounting policies adopted are sel out below. 1.2 Going concern Al the time of approving the financial statemenls, the Irustees have a reasonable expectation that the charity has adequate resources to continue in operalional existence for the foreseeable future. Thus the Irustees ¢ontinue to adopt the going concern basis of accounting in preparing Ihe financial statements. 1.3 Charitable funds Unrestricted funds are available for use at Ihe discretion of the Irustees in furtheran¢e of their charitable objectives. Restricted funds are subjecl to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors Ihat the capital must be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that inoome will be reived. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless perfomiance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gifi Aid or deeds of covenant is recognised al the time of the donation. Legacies are recognised on reIpt or othemise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a ontingent asset. 11
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Contlnuedl 1.5 Expendlture 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 activity. The costs of each activity are made up of the total of direct costs and shared cosls. 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 aclivily and support costs which are not altributable 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 are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured at cost or valuation. net of depreciation and any impairment losses. Depreciation is recognised so as lo write off the cost or valualion of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Fixtures and fittings 20h straight line method 150/0 on reducing balance The gain or loss arising on the disposal of an asset is determined as the differen between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impairn)ent of fixed assets At each reporting end dale, the charity reviews the carrying amounts of its tangible assets to delermine whelher there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to delermine the extent of the impaiment Ios5 (if any). 1.8 Cash and cash equivalents Cash and cash equivalents inGlude cash in hand. deposils held al call with banks. other short-lerm liquid inveslments with original maturilies of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Flnancial instruments The charity has elected to apply Ihe provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Instruments Issues, of FRS 102 to all of it5 financial inslruments. Financial instruments are recognised in the charity's balance sheet when the charity be¢omes party.to the contractual provisions of the instrument. Financial assets and liabilities are offset, wilh the net amounts presented in the financial statements, when there is a legally enforceable right to sel 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 financlal assets Basic financial assets, which include deblors and cash and bank balances, are initially measured at transaction price including Iransaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitute5 a financing transaction. where the transaclion is measured at the present value of the future receipts disGounted at a markel rate of interest. Financial assets classified as receivable within one year are not amortised. 12-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (Continued} Basic financial liabillties Basic financial liabililies, including credilors and bank loans are inilially recognised at transaction price unless the arrangement constitutes a financing transaction. where Ihe debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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 cosl using Ihe effective interest melhod. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's conlractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cost of any unused holiday enlitlement is recognised in the period in which the employee's services are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Income from donations and legacies Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restrictsd funds funds 2023 2023 Total 2024 2023 Donations and gifts 275,289 1,026,572 1.301,861 120.594 1,475,809 1.596,403 Expenditure on raising funds Unrestricted Unrestricted funds funds 2024 2023 Fundraising and publicity Staging fundraising events 9.612 10,000 13-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Expenditure on charitable activities Charitable activities Charitsble activities 2023 2024 Direct costs Albania project India projects Bangladesh projects West Bengal Other donations Adoption and hardship project North Macedonia 810,261 40,055 150,188 915,197 377,705 150,212 30,055 99,094 10.960 3,652 7,450 7,440 1,019,046 1,583,223 Share of support and governance costs (see note 5) Support 141,332 126,377 1,160,378 1,709,600 Analysis by fund Unrestricled funds Restricted funds 152.433 1,007,945 190,186 1,519,414 1,160,378 1,709,600 14-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Support costs allocated to activities 2024 2023 staff costs Depreciation Operaling lease charges Rates and water Insurance Light and heat Telephone Postage and stationary Advertising Sundries Bank charges Repairs and renewals Travel expenses Governance costs 78.347 4.942 4,813 847 389 2,404 711 6.954 96 10.189 3.189 8,908 8,034 11,509 86,296 218 5.215 215 389 1.265 612 9,109 5,102 3,099 2,435 4,832 7,590 141,332 126.377 Analysed between: Charitable activities 141,332 126,377 Net movement in funds 2024 2023 The net movement in funds is stated after chargingl(crediling).' Fees payable for Ihe audit of the charity's financial statements Depreciation of owned tangible fixed assets Operating lease charges 5.149 4.942 4.813 5,520 218 5,215 Trustees None of the trustees (or any persons ¢onnected with them) received any remuneration or benefits from the charity during the year. Employees The average monthly number of employees during the year was- 2024 Number 2023 Number 15-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Employees {Continued) Employment costs 2024 2023 Wages and salaries Social security costs 78,316 31 84,866 1,430 78,347 86,296 There were no employees whose annual remuneration was more than £60,000. Remuneration of key management personnel No remuneration of key management personnel during the year. Taxation The charity is exempt from laxation on its activities because all its income is applied for charitable purposes. 10 Tangible fixed assets Freehol(I land Flxtur•$ and and bulldlng$ flttings Total Cost Al 1 January 2024 Additions 10,890 10,890 237,814 237,814 At 31 December 2024 237,814 10,890 248.704 Depreciation and impairment At 1 January 2024 Depreciation charged in the year 9.653 186 9.653 4.942 4.756 At 31 December 2024 4.758 9,839 14,595 Carrying amount At 31 December 2024 233,058 1,051 234,109 At 31 December 2023 1.237 1,237 11 Debtors 2024 2023 Amounts falling due within one year: Other deblors Prepayments and accrued income 135.389 54.160 235,387 68,156 189.549 303,543 16-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 12 Creditors: amounts falling due within one year 2024 2023 Other taxation and social security Other creditors ArualS and deferred income 230 191 4,380 20 4,380 4,801 4,400 13 Restricted funds The reslricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At 1 January 2024 Incoming resources Resources expended Transfers At31 December 2024 Donations and legacies 10,429 1,026,572 {1,007.945) (24.846) 4,210 Previous year: At 1 January 2023 Incoming resources Resources expended Transfers At31 December 2023 Donalions and legacies 65.861 1,475,809 (1,519,414) (11.827) 10,429 14 Unrestrictod funds The unrestricled funds of the charity comprise the unexpended balances of donations and granls which are not subject to specific Gonditions 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. At 1 January 2024 Incoming resources Resources expended Transfers At31 December 2024 General funds 317,357 275,289 (162,045) 24.846 455,447 Previous year: At 1 January 2023 Incoming resources Resources expended Transfers At31 December 2023 General funds 385,122 120,594 (200,186) 11,827 317,357 17-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 15 Analysis of net assets between funds Unrestricted funds 2024 Restricted funds 2024 Total 2024 At 31 December 2024: Tangible assets Current assetsl(liabilities) 234,109 221,338 234,109 225,548 4,210 455,447 4,210 459,657 Unrestricted funds 2023 Restricted funds 2023 Total 2023 At 31 December 2023: Tangible assets Current assetsl{liabilities) 1.237 316,120 1,237 326,549 10,429 317.357 10,429 327,786 Purposè of Unrestricted Funds General Fund Unrestricted funds can be used in accordance wilh the charitable objectives at the discretion of the Irustees. This fund are used for various administrative and support activities. Purpose of Restricted Funds Lillah, Zakat and Sadqah Restricted fund5 can only be used for particular restricled purposes within the objectives of the charity. Restriction arise when specified by donor or when funds are raised for particular restricted purposes. Zakat and Sadqah is used for charitable activity to help and support poor and needy people eligible for Zakal and Sadqah. 16 Related party transactions There were no disclosable related party transactions during the year (2023 - none). 18-
MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 17 Cash generated froml{absorbed by) operations 2024 2023 Surplusl(deficit) for the year 131.871 (123.197) Adjustments for: Depreciation and impairment of tangible fixed assets 4,942 218 Movements in working capital: Decreasè in debtors Increase in creditors 113,994 401 68,395 481 Cash generated froml(absorbed by) operations 251,208 (54.103) 19-