REGISTERED COMPANY NUMBER: 03544402 REGISTERED CHARITY NUMBER: 1073862 MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Xeinadin Audit Ltd {Statutory Auditor) Ground Floor Citygate Longridge Rd Preston PR2 5BQ
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Page Referen¢e and Administrative Details Report of tho Trustees Report of the Independent Auditors 8 to 10 Statem•nt of Financial Activities 11 Ststement of Flnancial Position 12 Statement of Cash Flows 13 Notes to the Statement of Cash Flows 14 Notes to the Financial Statements 15 to 22
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2024 Trustees DrAAI Majid Dr H Al Majid Mr M S Al-Astewani Dr H S A Al-Khaffaf Mr l A B Al-salam Mrs F Javid MrAA O Kawooya Mr N Mahmood Mr S B Salam Mr A U Sheikh Mr F Zaheer Mr S A Chaudhri MrA Y Rahman (appointed 3.8.24) Reglstered office Hartrey Hall Alexandra Road Soulh Manchester M16 8NH Reglstered cornpany number 03544402 Registered charity number 1073862 Auditors Xeinadin Audit Ltd (Statutory Auditor) Ground Floor Citygate Longridge Rd Preston PR2 58Q Page 1
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 035444021 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 The trustees, who also serve as directors of the charity under the Companies Act 2006, present their report along with the financial statements of the charity for the year ending 31 August 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.- Statement of Recommended Practice applicable to charities preparing their accounts following the Financial Reporting Standard applicable in the UK and the Republic of Ireland {FRS 1021 {effective 1 January 2019). The trustees who served during the year and up to the date of this report are listed on page Manchester Islamic Educational Trust (MIET) Ltd was incorporated on 9 April 1998 as a company limited by guarantee under company number 3544402 and has been granted charitable status under the Charities Act 1960. on 8 February 1999 under registration number 1073862. MIET operates KD Grammar School for Boys. Manchester Islamic Grammar School for Girls Ifom)erly known as Manchester Islamic High School for Girls) - the name change has been approved by the Department for Education, and Manchester Muslim Preparatory School. These schools operate from IM) different sites. While following the national curriculum like mainstream schools, these schools, in addition, also place a strong emphasis on the provision and teaching of the Islamic failh to enrolled pupils. This ensures that when they leave School. their direction is established toward higher education and high achievements. while also modelling themselves as modern British Muslims. strong and confident in their faith. Some of our pupils have excelled and have joined Cambridge and Oxford Universities. The autumn term was marked by a major milestone as we successfully relocated MIGSG and MMPS to our new site in September. setting the tone for a transformative and inspiring start to the academic year. We were especially pleased to have passed the material change inspection ahead of the move-an outcome that reflects the meticulous planning, rigorous compliance, and collaborative effort of everyone involved in the project. The confimiation that the new premises meet all required standards for both pupils and staff represents a significant achievement in the Trust's history. This milestone not only marks the physical realisation of a long-standing vision but also ushers in a new era of educational opportunity, with an environment purpose-built to support learning. collaboration, and holistic development. The transition to the new building has provided both schools with expanded classroom capacity and upgraded facilib'es, greatly enhancing the overall learning experience for our pupils. A further highlight this year was the successful integration of Manchester Muslim Preparatory School IMMPS) into the new campus in January. Since then, both MMPS and Manchester Islamic Grammar School for Girls IMIGSGI have operated seamlessly under one roof. with a strong and growing spirit of collaboration between the Senior Leadership Teams. With such a significant move and both schools now sharing a single site, some challenges have naturally arisen- however, these have been swiftly and effectively addressed to ensure minimal disruption and to maintain the high standards expected across both institutions. This unified approach continues to strengthen our schools, shared vision and capacity for educational excellence. Land and buildings on these sites are fully owned by MIET. The Trust, which is a limited company, is governed by the policies made from time to time by the trustees together with the terms of its Memorandum and Articles of Association, which set out the objects and powers of the company. The trustees are also directors of the charity under the Companies Act 2006. The power of appointing new trustees is vested in the trustees. The procedure to appoint or withdraw a trustee is adopted under the Trust Deed. New appointments must serve a minimum probationary period of six months. or longer as the case may be. based on personal competence. independence of character. judgment, and specialist skills, and there are no relationships or circumstsnces likely to affect, or could appear to affect, the Board's judgment. Subject to a sat15factory outcome of the probationary period, a permanent trusteeship may be offered. The Board may also, by unanimous agreement as specified in its Memorandum and Articles of Association, appoint an employee as a Trustee. prowded no special financial gain may accrue to this Trustee. No such appointments or resignations took place during the reporting period. An appropriate level of instruction is provided for bolh new and existing Trustees to update their knowledge and place them in a position where they can sensibly identify their role and responsibilities. From time to time, Trustees go on formal relevant training courses that our Schools and indiwdual Trustees identify are required for them to be able to discharge hi51her duty. Moreover. the Trustees are also encouraged to attend relevant external briefings and training courses. They are particularly encouraged to attend various schools. functions and to meet with members of the Senior Leadership Team and staff to understand fvrther the nature of the schools, busines5. Moreover, the Trustees meet regularly to manage the affairs of the schools and to di5CUSS Other affairs. The Board comprises members from a variety of backgrounds, and there are sub-comrnittees dealing with various aspects of the operation. All major decisions are ratified by the Board of Trustees. Additionally, the trustees are responsible for setting out the strategy of the Trust and monitoring its progress towards the stated aims and objectives. No additional trustee was appointed, and no trustee resigned during this year. Page 2
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 035444021 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 Staff and management are required to progress the aims and objectives of the schools under the Trust's control. Furthemiore, pupils and staff are continuously encouraged to contribute to the local and wider community by establishing and developing links at various levels. The daY-ldaY management of each school is delegated to the respective Headteacher, supported by their Senior ManagemenULeadership Team. The Head of each School undertakes the key leadership role. overseeing the educational. pastoral, and administrative functions in consultation with the senior staff. The day-to-day admir)istration of each School is undertaken in line with the policies and procedures approved by the Trust. Significant expenditure decisions and major capital projects are referred to the Trust for prior approval by the school management. In addition, there are sub-committees covering staffing. curriculum. safeguarding. health & safety, finance, and buildings. which meet more regularly and are attended by the respective school leaders. This team, in turn. delegates the responsibility to the teaching and non-tea¢hing staff to ensure smooth implementation. The Trust is overseen by the Board of Trustees, which annually appoints a Chairperson, Wice Chairperson. and TasUrer. Additionally, the Board appoints various coordinators and personnel responsible for crucial policies pertaining to the schools, such as Safeguarding of children, Health & Safety, Finance. and the Ethos and Vision of the schools and the Trust Furthermore, the Trustees have employed a Trust Administrative Manager to provide comprehensive oversight of the school's operations and perfomiance. This manager reports to the Chairperson, VI Chairperson, and Treasurer. Each school boasts a dedicated professional leadership team. with many members already trained in Senior Leadership roles or actively encouraged to pursue such training from accredited institutions. The Trust bears the cost of this training. Moreover, school leadership is encouraged to foster middle leadership skills among staff and departments within each school. The Trusys primary objective is to advance education in the United Kingdom. alongside Islamic educats'on. It aims to provide and maintain schools in the UK to facilitate young individuals in understanding the doctrines and practices of the Islamic faith and the Arabic language. The Trust adheres to current regulations, actively promoting the governmenvs Prevent Strategy and the values of democracy and British society. Objectives and activities Objectives and aims Investment policy The Board of Trustees is authorised under the Memorandum and Articles of Association to make and hold investments using the general funds of this Charity. However. no such investments are presently held or have been made. Part of one of Trusvs properties. the North Wing of Hartley Hall, is rented to Hartley Hall of Residence Ltd, and it has not been valued separately. No separate valuation for the part of the propety rented to Hartley Hall of Residence has been done as the trustees feel it would not serve any putrpose, as the property in its entirety has been valued for rebuilding purposes. To obtain a fair rent. an outside rental valuation agency was previously employed to determine this. Rent based on this valuation is being received from Hartley Hall of Residence. Risk managernent The trustees actively review the major risks which the charity faces regularly and believe that maintaining reserves, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have a150 examined other operational and business risk5 fad by the charity and confirm that they have established systems to mitigate the significant risks. In addition to the risk assessment5 carried out for insurance, the schools also carry out numerous other risk assessments as required by the various regulations goveming schools. Additionally. in accordance with normal commercial practice, the Trust has purchased insurance, which also includes protection for the Trustees and staff from claim5 arising from negligent acts. errors. or omissions occurring whilst on School business. Page 3
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 035444021 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 Intendgd irnpact and strategies Within these objecb'ves. MIET aims lo provide services that are beneficial to the community it serves. The charity's goal is to benefit the public in the broadest sense by educating children in a faith-based ethos and environment. MIET firmly believes Ihat such an ethos and environment serve the public interest and are beneficial for the children who receive the services provided. Education rooted in a faith ethos lays a strong foundation for higher education, enabling individuals to become better citizens who Can contribute more effectively to the nation. For these reasons, MIET inib'ally established faith-based schools.. the Islamic High School for Girls in 1992 (now known as Manchester Islamic Grammar School for GiAs}, followed shortly thereafter by Manchester Muslim Preparatory School. KD Grammar School for Boys was established in 1999. The schools implement the aims and objectives of the Trust and further the interest of public benefit by striving to provide an outstanding independent education. This is achieved through rigorous academic tuition. fostering awareness of spiritual values, and developing artistic, moral, cultural. and social skills in all pupils. The aim is to create an 6nvironment where each pupil Can begin lo realise their potential, thereby building self-confidence and self-esteem in preparation for a contented and fulfilling life, contributing to the welfare of the wider community. Education appropriate to the needs of boys and girls aged 3 to 16 is offered. Progression is as important as attainmenl., the schools consistently achieve a higher value-added Component to their educational mix and regime than the national average. As diagnostic tools become more sophisticated. it is increasingly evident that some children require specialist SEND support. The schools are equipping themselves to provide this support wherever possible. The Trust has committed to conlinually upskill its SEND coordinators to enhance provision and service in this area. The Trustees aim to create a supportive and caring environment where each pupil is recognised and educated as an individual. MIET seeks to produce academically and spiritually well-educated young men and women with highly developed interpersonal skills and a broad range of interests. enabling them to compete at any level. Over the years, the Trust has extended additional financial help and assislance to those less fortunate who have difficulty paying full fees. as well as offering discounts to siblings. The trustees continue to explore the possibility of offering A-levels at the schools for pupils who have completed their GCSES. It is worth mentioning that no discounts or incentives, financial or otherwise, are offered to any trustee with a child enrolled in any of our schools. The Trusfs marketing and effective fundraising efforts in recent years have sparked increasing community interest resulting in higher-than-usual enrolment applications and the successfrjl purchase of the new building. Trustees. EHT. and the SLT teams from both High schools were very pleased with our outstsnding 2023 GCSE exam results. where all pupils in the high schools achieved their full potential and aspirational grades. Academic performance across the Trust remained strong during the year, reflecting the collective efforts of pupils. stsff, and leadership teams. We are particularly proud of the achievements at Manchester Islamic Grammar School for Girfs IMIGSGI. where the GCSE results in August 2023 were outstsnding. These results are a true reflection of the dedication and hard work of our pupils, alongside the tireless support of both teaching and non-teaching stsff. In addition. the school continues to grow steadily, with three full Year 7 form entries-a clear indication of the school's growng reputation and the continued trust placed in it by the community. We hope to replicate these outcom85. and the level of improvement accomplished will reflect on all subsequent cohorts. To that purpose, the Schools implement intervention strategies in every subject, typically. this begins in January. but this year, the school began at the start of the academic year to enhance pupil support. This year, ovr high schools held their annual presentation evenings on separate occasions. once again celebrating pupils, achievements with enthusiasm and pride. The events were well-attended and reffected the wbrant spirit of each school Community. The spring and summer temis remained busy with a full calendar of activities, enrichment opportunities. and the continued settling-in process at the new site following the successful relocation in September. Although school fees had increased for the current academic year, only a small number of parents chose to withdraw their children, however, there was a renewed interest in our schools from other parents an indication of the community's continued confidence in the schools. Staff have continued to respond positively to the new pay scheme. which remains well-received and appreciated across all schools. The scheme has contributed to improved morale, stronger staff retention, and a shared sense of being valued and supported in their roles. This positive response has been further reinforced by strong leadership and management support.. this has contributed to rnaintaining high levels of staff performan and commitrnent to our schools, shared goals. This year marked the first full academic year in our newly acquired building, which has quickly become a vibrant hub for staff. pupils, and parents alike. A series of welcome events and orientation sessions were successfully held for new families joining us in September. Staff also continued to engage with both current and prospective parents frorn both schools, showcasing the facilities and highlighting the opportunities the new site offers for enhanced learning and community engagement. Page 4
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 03544402) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 This year marked the first full academic year wth both MMPS and MIGSG operating under the oversight of the Independent Schools Inspectorate IISII, following successful registration with the Independent Schools Association (ISAI last year. All MIET schools are now regulated by a single inspectorate, ensuring alignment in standards across the Trust. MIGSG, having met all regulatory requirements in its first compliance inspection in June 2024. continues to uphold the standards set by ISI. Financial management remained responsible and prudent. with discretionary funds d1cted towards high-impact areas to enhance the pupil experience. Enrolment levels across the schools remained stsble, and the Trustees remain confident in the Schools, continued ability to meet the objectives set out in the Articles of Association. strategic report Achievement and performance The trustees are pleased that the academic attainment and achievement of our schools have shown improvement throughout the year. The public examination results for GCSES continued to reflect the high level of progress. improvement. and achievement expected from the pupils at both schools. Teaching and learning continue to improve. Staff are continuously being trained lo improve in this area.. regular CPDS and staff insets are organised- extra-curricular activities continue to expand. The organisation of interfaith exchange programmes, fundraising for various Appeals and Charities. such as Penny Appeal, Islamic Relief, British Heart Foundation, etc., is again being regularly conducted to impart the importance of such actiirities in raising awareness among the children and character building. The aim is to foster an appreciation amongst our pupils of the needs of others less fortunate than themselves. This social awareness and sensitivity are fostered by regular fundraising. For all good causes, the Schools raised around £610.702 during the year. The Trustees are also sats'sfied that the schools achieve their stated objectives throughout the year. The annual Umrah trip remains a cherished and impactful experience for pupils and staff from both high schools. It continues to serve as a valuable initiative, not only nurturing spiritual growth and a strong sense of community, and supporting our schools. wider visibility and appeal. The trip reflects a unique ethos and well-rounded educational values upheld by our schools. Ongoing enthusiasm and positive responses from pupils, parents, and the broader community reaffirm its Significan and the role it plays in enhancing the Trust's reputation. In line with maintaining the buildings and keeping the schools in good and presentable condition. and to fijlfil the Health & Safety guidelines. regular repair and maintenance work is carried out. The schools, computer systems are regularly upgraded or replaced, as neSsary. to 5UPPOrt and enhance the quality of education. The Schools have interactive boards as an additional resource to be used by staff to inform the pupils better and facilitate their educational experience more robustly. All this is in line with the Trusvs strategy to improve their educational facilities and to provide an atmosphere where pupils can feel safe and learn in an environment conducive to learning. The Trustees, policy is to award scholarships based on the individual's ability. Whether or not a scholarship is offered, parents also have the opportunity to apply for a means-tested bursary to supplement it so that their children can corne to the schools. Means-tested bursaries are also available to new entrants to the School to widen public access. and they are also available to existing parents encountering unforeseen hardship through no fault of their own, whose children's education is at a critical stage. In line with the policy and vision of the Trust. MIET aims to provide British values to their pupils. which 15 in no way different from the values expressed by their faith.. values of tolerance, peace. coexisten. to be charitable, et¢. The pupils are taken to houses of worship of other religions and faiths.. pupils of other faiths arè invited to visit our schools, and pupils from our schools visit schoo15 of other faiths or none. Each school is fortunate to have staff that is hard working and fully committed, and. in turn. is led by a capable leader and Senior Managemenv Leadership Teams. New structure in the fomi of a promotion of a senior leadership member to the position of Headteacher or a 16ader. under the guidance of the very experienced executive Headteacher. The position of the Executive Headteacher. a scheme which was instituted in 2017, include5 oversight of all three schools, providing guidance when needed. experience, and support when and where required. There have been a few staff changes during the year at all the schools,. this 15 in line with such changes taking place at all schools during the academic year. The Boys School and the Preparatory School also have a Depuly Headteacher to help the leadership. The Senior Managemenu Leadership Team of each School continues to review the curriculum and extr8-¢urricular activities to ensure their relevance in improving the quality of education. Under its charitable objectives. the Schools continued to provide a highquality education blended with failh-based subjects and curriculum for ils pupils. The Schoo15 will continue to improve and broaden their curriculum using ongoing feedback. Page 5
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 035444021 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 Strategic report Flnancial review Financial position Our schools, principal funding sources are from school fees. which amounted to £3,757,089 (2023: £3.190,3311. The schools continue to hire out facilities, including during vacations and after-school hours. and have contributed £96.115 to tre income. This facility is provided to the community and the public at discounted priSIrateS to facilitate ease of availability to benefit the community and public. Overhead perntage has remained fairly consistent throughout the period. Although the principal source of fijnding for running the schools is th8 fee charged from the pupils, fundraising is being pursued continuously by the schools and the Trust to augment the funds needed. Reserves poll¢y Thi5 policy details that the charity presently maintains unrestricted funds and sufficient asset value to cover unforeseen and major expenditure and shortfalls in income of at least months. This reserve is to be considered unrestricted. The trustees remain confident in their ability to raise the necessary fvnds. thereby adhering to the maintenance of a balanced budget. The Trust also has the following written policies.. 1. Volunteer policy. 2. Conflict of interest policy. 3. Investment policy. Golng concern The trustees consider that the projected net income and the value of realisable assets will be rnore than adequate to cover the current liabilities of the charity. Hence, the trustees conclude that the accounts comply with the requirements of the Trusvs governing body, and it remains a going concern. Remuneration poll¢y The charity follows a policy on remuneration very much dependent on the demand and supply of requirement of personnel with a particular skill set or specialism at the given time. It nevertheless considers the overall budgetary and financial position of the charity at that particular time. The risk of losing personnel to other organisalions willing to pay more lucrative remuneration always exists.. however, the charity offsets this by employing younger personnel. It institutes a very rigorous and robust training and professional development programme to add and provide rigour lo teaching and learning and olher areas associated wth improvtng the provision of education. Another attraction offered, especially to the higher management level staff. is to provide a very pleasant and friendly workplace environment where they are made to feel important and valued. Strategic Report, financial review, plans for future perlods The key plans related to the charitable aspects of the schools remain as follows.. 1. Improvement in teaching & learning., 2. Prepare for futu school inspections. 3. To maintain our schools, continuous work in giving our pupils every opportunity to be the best they can be, both in and outside the classroom., 4. High expectations and learning strategies tailored to the individual pupil lead to high levels of attainment: 5. Pupils are encouraged to take on challenges, to overcome setbacks, and to see failure as part of the journey to success. to develop the resilience. initiative, flexibility. creativity. and collaborative skills that wll prepare them for the next stage of their education and later life. 6. Our plans are financed primarily from fee income and other resour$. The Trustees view our bursary and scholarship awards as important in widening access lo the education our schools provide and are committed to maintsining these budgets in the fvture. 7. Greater emphasis was given to continuous development & training of staff members so that improved teaching and learning and greater numbers could be classified as "Outstanding" and "Good" in their field of work.. 8. Continued forensic review of budgets and financial spending., 9. Improvement of the marketing plans for recruiting extra pupils in all schools., A. Manchester Islamic Grammar School for Girls and Manchester Muslim Preparatory School have relocated to a larger site that can accommodate both schools and allow future expansion. B. Having both schools on one site will allow the redu¢tion in management staff and will permit Ihe use of other non-teaching and teaching staff much more efficiently because of having both schools in one place. This wll. of cour58. release more income to raise educational achievement and long-term sustainability- C. One important consideration which should not be ignored is the impression and the feeling of pride that the establishment of these Islamic schools on this site and in this building will have on our community. and the message it will carry to all communities in the area. Page 6
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 03544402) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 Structure, governance and management Governing document The charity is controlled by its governing document. a deed of trust, and constitutes a limited company. limited by guarantee, as defined by the Companies Act 2006. ststement of trustees. re$pon$ibilities The trustees are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounling Practice. Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair ew of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing these financial statements. the trustees are required to.. select suitable accounting policies and then apply them consistently., make judgements and estimates that are reasonable and prudent.. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply wth the Companies Act 1985. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit information of which the charity's auditors are unaware.. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are awaTe of that information. Auditors The auditors, Xeinadin Audit Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporating a strategic report. approved by order of the board of trustees. as the company directors. on ..2410612025.. and signed on the board's behalf by.. Mr F Zaheer- Trustee Paga 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD Opinlon We have audited the financial statements of Manchester Islamic Educational Trust Ltd (the 'charitable company,) for the year ended 31 August 2024 which comprise the Ststement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial portIng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Slandards {United lfjngdom Generally Accepted Accounting practi). In our opinion the financial slatements.. give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditu, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements 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. Con¢lu$ions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going ¢oncern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfom)ed, we have not identified any material UnrtaIntieS relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve 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 Ihe relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report. other than the financial statements and our Report of the Independent Auditors theFeon. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report. we do not express any fom of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with Ihe financial statements or our knowledge obtained in the audit or otherwise appears to be materially misslated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misststsment in the financial statemenls 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. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infomiation given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the light of the knowledge and understanding of the charitable company and tts environment obtained in the course of the audit. we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns.. or certain disclosures of trustees, remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audiL Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities. the trustees (who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the tnjstees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do $0. Our responsibilltles for the audit of the flnan¢ial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 influen the economic decisions of users laken on the basis of these financial statements. Our approach to identifying and assessing the risks of material misslatement in respect of irregularities, including fraud and non-compliance with laws and regulations. was as follows.. the engagement partner ensured that the engagement team collecb'vely had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations 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 gUlarlY and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to matsrial misstatement, including obtaining an understanding of how fraud might occur, by". making enquiries of management as lo 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 regulations. To address the risk of fraud through management bias and override of controls. we.. performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates set out in notes to accounts were indicative of potential bias- and investigated the rationale behind significant or unusual transactions. in response to the risk of irregularities and non-compliance with laws and regulations. we designed prOdureS which included. but were not limiled to.. agreeing financial statement 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 claims.. and reviewing correspondence with HMRC. relevant regulators 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 idenlify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsrespon5ibilities. This description foms part of our Report of the Independent Auditors. Page g
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company, members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have fomied. Farook Patel (Senior Statutory Auditor) for and on behalf of Xeinadin Audil Ltd (Statutory Auditor) Ground Floor Citygate Longridge Rd Preston PR2 5BQ Date.. Page 10
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024 2024 Totsl funds 2023 Total funds Unrestricted funds Restricted fund Notes Income and endowments from Donations and legacies 610.702 610,702 475,433 Charitable activities Charitable activities 3,862,505 3,862.505 3.316,540 Investsment income Other income 96,115 96.115 78,000 7,583,997 Total 4.589,322 4.569.322 11,453,970 Expenditure on Charitable activities Charitable activities 4.913,243 4,913,243 4,410.424 NET INCOMEI{EXPENDITURE} {343.9211 {343,921) 7,043,546 Reconclllation of funds Total funds brought forward 10,442.226 10.442.226 3,398,680 Total funds carried forward 10,098.305 10.098.305 10,442,226 The notes form part of these financial statements Page11
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD (REGISTERED NUMBER: 035444021 STATEMENT OF FINANCIAL POSITION 31 AUGUST 2024 2024 Total funds 2023 Total funds Unrestrlcted funds Restricted fund Notes Fixed assets Tangible assets 10 15.621,324 15,621,324 14,856,565 Current assets Debtors Cash at bank and in hand 305.533 141,032 305.533 141,032 910,699 126.351 446,565 446.565 1,037,050 Creditors Amounts falling due within one year 12 12.656.876} {2,656,876) {738.6S6) Not current assets {2.210.3111 {2,210,311) 298,394 Total assets less ¢urront liabilities 13,411,013 13,411,013 15.154,959 Creditors Amounts falling due after more than one year 13 13,312,708) 13.312.708) {4,712,7331 NET ASSETS 10.098.305 10,098.305 10,442.226 Funds Unrestricted funds 15 10,098.305 10,442.226 Total funds 10,098.305 10,442,226 The financial statements were approved by the Board of Trustees and authorised for issu6 .2410612025.. and were signed on its behalf by.. on Mr F Zaheer- Trustee The notes form part of these financial statements Page 12
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notes Cash flows from operatlng a¢tivities Cash generated from operations S41.260 2,349,342 Net cash provided by operating activities 541.260 2,349,342 Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets {1,135,076) 113,585,740) 9,104,258 Net cash used in investing activities {1.135,076) {4.481.4821 Cash flows from financing actlvlties New loans in year Loan repayments in year 1.031,000 1422.5031 3.491.500 11,521.500) Net cash provided by financing activities 608.497 1,970.000 Change in cash and cash equivalents in the reporting period Cash and ¢ash equivalents at the beginning of the reporting period 14.681 (162,140) 126,351 288,491 Cash and ¢a$h equivalents at the end of the reporting period 141.032 126.351 The notes form part of these financial statements Page 13
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 Recon¢iliation of net (exponditureyincome to net cash flow from operatlng activities 2024 2023 Net lexpenditure)Iln¢ome for the reportlng period (as per the Statement of Financial Actlviti¢s) Adjustments for: Depreciation charges Profit on disposal of fixed assets Rendable deposits retlassification Decreasellincrease) in debtors (Decreasellincrease in creditors 1343.9211 7.043,546 370,317 346.264 {7,583.997} 297.200 1375.2541 2,621,583 605,166 190,302) Net cash provided by operations 541,260 2.349,342 Analysls of changes in net dobt At 1.9.23 Cash flow At 31.8.24 Net cash Cash at bank and in hand 126,351 14.681 141,032 126.351 14.681 141.032 Debt Debts falling due within 1 year Debts falling due after 1 year {470,0001 {1.808.497) {1.500,000) 1,200,000 (2,278,497} 1300.0001 (1,970,000) {608,4971 12.578,4971 Total (1,843,649) (593.8161 {2,437,4651 The notes form part of these financial statements Page 14
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies Bas1$ of preparing the financlal statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charib'es SORP (FRS 1021 '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 IFRS 1021 (effective 1 January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Crltl¢al accounting judgements and key sources of estimation un¢•rtainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors. including expectations of future events that are believed to be reasonable under the Circumstances. Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity.. it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be Teliably measured. The following specific policies are applied to particular categories of income.. Income from school fees represents fees earned in respect of the provision of education to pupils during the year. Fees for education to be prowded in fijture years are carried forward as deferred income in the balance sheet. Income trom donations or grants is recognised when there is evidence of enlitlement to the gift, receipt is probable and its amount can be measured reliably. Income from investments is included in the year in which it is receivable. Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Expenditure on raising funds includes the costs of all fundraising activities. events. nonrycharitable trading actimties, and the sale of donated goods. Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries. including those support costs and costs relating to the governan of the charity apporttoned to charitsble activities. All costs are allocated to expenditure categories reflecting the use of the resource. Dire costs attributable to a single activity are allocated directly to that activity- Shared ¢osts are apportioned beeen the activities they contribute to on a reasonable. justifiable and consistent basis. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful Freehold prop8rty Short leasehold Plant and machinery Fixtures and fittings Motor vehicles Computer equipment 2°h per annum straight line basis Straight line over 10 years 15.kn on reducing balan 15 % on reducing balance 25'/o on reducing balance 334A on reducing balance Taxation The charity is exempt from corporation tax on its charitsble activities. Fund a¢counting Unrestricted fijnds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted fijnds can only be used for particular restricted purposes wthin the objects of the charity. Restrictions arise when specified by the donor or when fund5 are raised for particular restricted purposes. Page 15 continued...
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024 Accounting poll¢les - continued Fund ac¢ountlng Further explanation of the nature and purpose of each fund is included in the notes lo the financial statements. Company limited by guarantee Manchester Islamic Educational Trust Limited is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member. or wthin one year after he or she ceases to be a member. Pension cosls and other post-retlrement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Financial In$trum¢nt$ The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amottysed cost. Financial assets held at amortised cost comprise cash and bank in hand, trade debtors and other debtors. A specific provision is made for debts for which recoverability is in doubt. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes. Cost plus finance The charity has entered a commodity murabaha purchase and sale agreement with a financial institution for debt finance purposes. Under the terms of the agreement, the charity purchases non-precious metal commodities from the financial institution on a deferred payment basis and sells these through this financial institulion to a third party. The payable related to the purchased commodity under an agreement is recognised at the value of consideration paid and is presented as commodity murabaha purchase liability in the statement of financial position. The difference between the sale and purchase price is recognised as a financing cost and accrued on an amortised cost basis over the period of agreement. Going concern As of 31 August 2024. the charity has outstanding loans totalling £5.294.005. resulting in a net current liability of £2,210,311. Following the year end, the charity has repaid £1.200.000 of the loans through a new one year bridging facility, wth plans to finalise the refinancing of the remaining loans by September 2025.. should there be any delays, alternative arrangements can be made with our current lender, Nester Platform Ltd. In light of these circumstances. the trustees believe it is appropriate to prepare the financial statements on a going concern basis. and no adjustments have been made that would indicate otherwise. Donations and legacies 2024 2023 Donations receiv8d 610.702 475,433 Inveslment income 2024 2023 Rents received 96,115 78.000 Page 16 continued...
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 AUGUST 2024 Income from charltsble aclivities 2024 2023 Activity Charitable activities School fees Books. sundry fees and miscellaneous income Grants 3,757,089 3,190,331 Charitable activities Charitable activities 70,416 35,000 126,209 3,862.505 3.316.540 Grants received, included in the above, are as follows= 2024 2023 Islamic Relief 35.000 Charitable actlvltles costs Support costs {see note 6) Direct Costs Totsls Charitsble activities 3,356.049 1,557,194 4,913.243 Support costs Infonnation technology Governance costs Management Finance Totals Charitable activities 1,245,034 231.479 25,216 55.465 1.557.194 Net in¢omel(expendlturel Net incomel{expenditure) is stated after chargingllcrediting).. 2024 2023 Auditors, remuneration Depreciation - owned assets Hire of plant and machinery Other operating leases IDeficit}Isurplus on disposal of fixed assels 6,600 370.317 12,284 60.251 50,000 6.000 346,264 8.271 163,773 {7.583.9971 Trust¢os' remuneration and beneflts During the year, the charity paid remuneration of £60,000 {2023.' £60,500) to Mr A U Sheikh in addition to their trusteeship. Trustees. expenses There were no Irustee expenses paid for the year ended 31 August 2024 {2023'. £nill. Page 17 continued..
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024 Staff costs 2024 2023 Wages and salaries Social security costs Other pension costs 2,706.719 217,162 52,416 2,362,912 188.622 44,886 2,976,297 2,596,420 The average monthly number of employees during the year was as follows.. 2024 72 45 2023 72 48 Teaching staff Support staff 117 120 The number ol employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was". 2024 2023 £70,001- £80.000 The key management personnel of the charity comprise the Trustees. the head teachers and the trust administrators. The total employee benefits of the key management petsonnel of the charity were £259,712 12023.. £252,189). 10. Tangible fixed assets Freehold property Short leasehold Plant and machinery Cost At 1 September 2023 Additions Disposals 15.423,640 1.077,995 177,909 74.770 {177,9091 At 31 August 2024 16,501,635 74.770 Depreciatlon At 1 September2023 Depreciation Eliminated on disposal 761.983 330,173 177,909 25.603 7.375 (177,9091 At 31 August 2024 1.092.156 32.978 Net book value At 31 August 2024 15,409.479 41,792 At 31 August 2023 14,661,657 49,167 Page 18 continued..
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 AUGUST 2024 10. Tanglble fixed assets Continued Flxturos and fittings Motor vehicles Computer equipment Totals Cost At 1 September 2023 Additions Disposals 788.110 54,825 15,271 15,726 2,256 16,495,426 1.135.076 1177,9091 At 31 August 2024 842.935 15,271 17,982 17,452,593 Depreciation At 1 September 2023 Depreciation Eliminated on disposal 653,332 28.440 14.845 107 5,189 4.222 1.638.861 370,317 1177.9091 At 31 August 2024 681,772 14.952 9,411 1.831.269 Net book value At 31 August 2024 161.163 319 8.571 15,621,324 At 31 August 2023 134.778 426 10,537 14,856,565 Manchester Islamic Educational Trust owns two freehold properties and these are situated as follows: Hartley Hall. Alexandra Road South, Manchester Fielden Campus, Barlow Moor Road. West Didsbury In the opinion of the Trustees, the cost of professionally valuing these assets to include a value in the accounts oulweighs the benefits to the users of the ac¢ounts. They are insured for £28m which is an estimate of their reinstatement value. A fixed and floating charge over the undertaking and all propety and assets present and future was created on 23 September 2022 and 10 October 2022 by Nester Platfomi Ltd. These charges are still outstanding. 11. Debtors 2024 2023 Amounts falling due within one year. Trade debtors Other debtors Prepayments and accrued income 28,581 265.508 11,444 38,188 442,472 14,506 305,533 495,166 Amounts falling due after more than on6 year.. Other debtors 415,533 Aggregate amounts 305,533 910.699 Page 19 continued..
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024 12. Creditors: amounts falling due wlthln one year 2024 2023 Interest free loans {see note 141 Trade creditors Social security and other taxes Pension control account other creditors Refundable deposits Accruals and deferred income 2,278,497 184.258 55,264 9,763 99,054 4,500 25.540 470,000 80,507 61.842 8,858 78.904 17,500 21.045 2,656,876 738,656 Till the date of approving these accounts. the charity has repaid a loan of £1,200,000 which is included in interest free loans. 13. Creditors: amounts falling due after more than one year 2024 2023 Interest free loans (see note 14} Refundable deposits Murabaha payable 300.000 297,200 2.715.508 1,500,000 297.200 2,915,533 3.312,708 4,712.733 The charity has entered a commodity murabaha purchase and sale agreement with a financial institution. Under the terms of the agreement. the charity has purchased a non-precious metal commodities from the financial institution on a deferred payment basis and has simultaneously sold these through financial institution to third parties. The outstanding balance as of 31 August 2024 of £2,715,508 represents the purchase price under this agreement. Durin9 the year, the financing cost incurred on the commodity murabaha purchase agreement was £200,025. 14. Loans An analysis of the maturity of loans is given below.. 2024 2023 Amounts falling due wilhin one year on demand.. Interest free loans 2,278.497 470,000 Amounts falling be88n one and years.. Interest free loans 300.000 1.500.000 15. Movement in funds Net movement In funds At 31.8.24 At 1.9.23 Unrestricted funds Unrestricted donations 10,442.226 {343.9211 10.098,305 TOTAL FUNDS 10,442,226 {343.921) 10,098,305 Page 20 continued...
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - Contlnued FOR THE YEAR ENDED 31 AUGUST 2024 15. Movement in funds - continued Net movement in funds, included in the above are as follows.. Incorning regour¢es Resources expended Movement In funds Unrestrl¢ted funds Unrestricted donations 4.569.322 14.913.243) 1343.9211 TOTAL FUNDS 4.569.322 14.913,2431 1343.9211 Comparatives for movement in funds Net movement In funds At 31.8.23 At 1.9.22 Unrestrlctod fund5 Unrestricted donations 3.398.680 7,043.546 10.442.226 TOTAL FUNDS 3,398.680 7,043.546 10.442,226 Comparative net movement in fiJnds, included in the above are as follows: Incoming rosources Resources expended Movement in funds Unrestricted funds Unrestricted donations 11,453.970 (4,410.4241 7,043,546 TOTAL FUNDS 11,453,970 (4,410,424) 7,043,546 16. Employee benefit obligatlons The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £52,41612023.' £44.8861. 17. Related party disclosures During the year, one of the trustee Mr F Zaheer has advanced £25,00012023.' £25,000) to the charity as a loan. The loan is interest free and repayable on demand. During the year. one of the trustee Mr S B Salam has advanced £100.000 {2023.' £100,000) to the charity as a loan. The loan is interest free and repayable on demand. During the year. a charity Makki Masjid in which Mr F Zaheer is a trustee has advanced £40.000 12023.. £100,000) to the charity as a loan. The loan is intsrest free and repayable on demand. During the year, a charity Brit15h Muslim Heritage Centre in which Mr F Z8heer and Mr N Mahmood are trustees has advanced £137,49712023= £125,000) to the charity as a loan. The loan is interest free and repayable on demand. One of the trustee currently sends his children to our schools and fully adheres to this policy by paying the stsndard school fees wlhout any discounts or special considerations. During the year, the Charity received the following donations from related parties. Page 21 continued...
MANCHESTER ISLAMIC EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024 17. Related party disclosures - continued 2024 Amount 1£) 125.000 2023 Amount (£1 105,000 25.000 5.000 14.000 1.368 2,835 Hartley Hall of Residence Ltd Trustee Mr S B Salam Trustee Mr F Zaheer Brighter Future Initiative Makki Masjid British Muslim Heritage Cent 11,000 87.503 Page 22