Charity registration number: 1080962 

## Al-Mahdi Institute 

Annual Report and Financial Statements for the Year Ended 31 March 2022 



## **Al-Mahdi Institute** 

## **Contents (continued)** 

|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 6|
|Independent Auditors' Report|7 to 10|
|Statement of Financial Activities|11|
|Balance Sheet|12|
|Cash Flow Statement|13|
|Notes to the Financial Statements|14 to 29|





## **Al-Mahdi Institute** 

## **Reference and Administrative Details** 

**Trustees** Sheikh Arif Abdulhussein Mr Mehboob Ladak Mr Abbas Ali Datoo **Principal Office** 60 Weoley Park Road Selly Oak Birmingham B29 6RB **Charity Registration Number** 1080962 **Bankers** HSBC Bank Plc 96 High Street Kings Heath B14 7LD **Auditor** Smartax Limited Chartered Certified Accountants and Statutory Auditors 38 Station Road Harrow Middlesex HA2 7SE 

Page 1 



## **Al-Mahdi Institute** 

## **Trustees' Report** 

The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 March 2022. 

## **Objectives and activities** 

## _**Objects and aims**_ 

The principle objectives of the charity, in line with those set out in the governing document, include: Provision of an Institute for Islamic research and resources. Undertaking research and publication of any useful results for the benefit of the public. 

More specifically this includes, but is not limited to: 

i. To educate and train scholars and orators who are capable of positively engaging with challenges of plural contemporary societies, through a thorough grounding in the tools of Muslim scholarship and their value in promoting common human values. 

ii. To conduct research and studies, to publish scholarly and grass roots works in pursuit of the objectives of the Institute. 

iii. To maintain libraries and centres to facilitate the attainment of the objectives. 

iv. Conduct outreach activities disseminating the scholarly work of the institute and serving humanitarian goals. 

v. Intra and inter-faith activities as a platform for public engagement and social cohesion on matters arising from the plural context of society and in pursuit of shared human goals. 

vi. Community service programmes seeking to aid volunteering and third sector work in general, with particular focus on capacity building amongst youth groups and women's networks. 

vii. To raise funds and invite and receive contributions from any person or persons whosoever including business organisations by way of subscriptions, donations or otherwise for its charitable objects. 

## _**Public benefit**_ 

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. 

## **Achievements and performance** 

Achievements have included: 

## 1. Education 

This year, the Hawza Programme had 72 students enrolled in Semester One (Sept 21 – Feb 22) and 43 students enrolled in Semester Two (Mar 22 – Jul 22). In order to support the increase in demand for distance learning over the years, the Al-Mahdi Institute ('AMI') has continued to upgrade its learning management systems, class recording systems and equipment to ensure a seamless and efficient virtual learning environment for students especially during the pandemic. 

As part of the collaborative partnership with the University of Birmingham, three more AMI students were awarded a post-graduate scholarship to study the MA in Islamic Studies programme at University of Birmingham. 

Page 2 



## **Al-Mahdi Institute** 

## **Trustees' Report (continued)** 

## 2. Research 

The Institute hosted its 9th annual Contemporary Fiqhi Issues workshop on 1st – 2nd July 2021 discussing ‘Free Speech, Scholarly Critique, and the Limits of Expression in Islam’ which hosted scholars and academics from all over the world. 

Following the success of the previous Contemporary Fiqhi Issues Workshop, AMI published the conference proceedings of the 2020 workshop titled “The Regulations of Purity and Impurity in Islam.” AMI Trustee, Shaykh Arif Abdulhussein published the fourth volume of his multi-volume series titled ‘Islam and God-Centricity: Plurality and Mutability of Religion.’ 

AMI Press published “Clearing the Soul for Paradise” a comprehensive summa of theology by al-ʿAllāma al-Ḥillī in June 2021. 

The International Centre for Collective Ijtihad (ICCI) continued to virtually host experts and religious scholars to discuss contemporary issues faced by Muslims around the world such as animal sacrifice at Hajj, permissibility of reciting prayers in one’s native language, permissibility of keeping dogs as pets etc. These discussions were also published as statements on the ICCI website with full justifications. 

The Islamic Centre for Decree & Doctrines (DIA) also hosted virtual discussions with scholars of diverse Muslim backgrounds to address pertinent issues revolving around the permissibility of non-Muslims entering mosques, the environment, permissibility of sex-reassignment surgery and more. These discussions were also published as statements of guidance on the DIA website. 

## 3. Outreach 

The Inter-Religious Symposia (IRS) continued to host meetings inviting scholars from the Abrahamic traditions to discuss the ‘Sin and Human Nature in Islam, Judaism and Christianity’ and ‘Redemption in Islam, Judaism and Christianity.’ 

The Centre for Intra-Muslim Studies (CIMS) held a its first two-day convention inviting scholars from all schools of thought to discuss pertinent issues such as the role and scope of female leadership, Islam and Science and the diversity and differences within Muslim scholarly traditions. The convention was held on 2nd – 3rd October 2021 and hosted twelve presenters and several delegates and community leaders. 

## _**Key non-financial performance indicators**_ 

Strategic and specific performance review of above activities operates at multiple levels; project managers/responsible staff operate under review from the Education and Research Board, who in turn are accountable to trustees. 

Each activity stream undergoes periodic review by the Education and Research Board - this is informed by recorded stakeholder feedback (e.g. from students, community participants, collaborative organisations, patrons and members of the general public). Assessment of impact is measured against such feedback, the long term goals of the Institute and the cost-effectiveness of the said activity. 

Page 3 



## **Al-Mahdi Institute** 

## **Trustees' Report (continued)** 

## **Financial review** 

The Institute showed income totalling £961,245 (2021 - £907,723) for the year ended 31 March 2022. An increase of £53,522 (2021 - £98,389) on income in the year ended 31 March 2021. The increase is primarily due to the increase in rental and accomodation income and fees earnt from wedding and room hire that had reduced during the Covid-19 pandemic. 

Expenditure totalled £882,465 (2021 - £837,928) for the year ended 31 March 2022, an increase of £44,537 (2021 £6,504) compared to the previous year ended 31 March 2021. As educational activities grow costs are anticipated to increase. 

The asset position remains strong with funds of £2.9 million (2021 - £2.8 million). 

## _**Policy on reserves**_ 

The charity has a number of restricted funds and details of these are given in note 23. 

The charity continues to build up and keep sufficient reserves in order to meet its charitable objectives. 

## _**Risk management**_ 

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. 

## _**Principal funding sources**_ 

The charity is supported currently primarily by a number of key donors. The Trustees ensure that they have processes for the identification of significant donors and recording of such donations in order to comply with legislative requirements. 

## **Plans for future periods** 

## _**Aims and key objectives for future periods**_ 

Priorities and plans for the future currently include: 

- Maintain the open philosophy and non-dogmatic pursuit of excellence in training students of Muslim religious thought in the educational programmes of the Institute. 

- Grow the student intake across all streams of the educational programmes 

- Increase scholarship funding for students 

- Increase rigor of virtual learning processes 

- Continue to increase the research output of the Institute through hosting workshops and seminars at AMI, and by driving faculty publications and contributions to AMI events 

- Build on existing partnerships, and develop new institutional relationships, towards delivery of collaborative research and teaching programmes 

- Continue to be at the forefront of Muslim engagement in inter-faith activities across the Institute’s education, research and outreach programmes 

- Continue translation projects including completion of the Hilli project 

- Continue the pursuit of attaining primary supervisory status for PhD 

Page 4 



## **Al-Mahdi Institute** 

## **Trustees' Report (continued)** 

## **Structure, governance and management** 

## _**Nature of governing document**_ 

The charity is an unincorporated charity formed under a constitution dated 21 May 2000 and revised in July 2003 and January 2014. It has been registered with the Charity Commission under registration number 1080962. 

In October 2020 the charity completed the registration process of becoming a Charitable Incorporated Organisation (CIO) and is registered with the Charity Commission under registration number 1191746. The charity is currently in the process of arranging the transfer of its assets and activities across to the new entity. 

## _**Recruitment and appointment of trustees**_ 

The trustees are elected by the members at the annual general meeting and serve office for a period of three years after which they may put themselves up for re-election. The constitution provides for a minimum of three trustees and not more than five trustees due for re-appointment in any one year. 

## _**Organisational structure**_ 

The trustees have overall responsibility for the activities of the charity but delegate day to day operational matters to the principle and relevant staff. 

Page 5 



## **Al-Mahdi Institute** 

## **Trustees' Report (continued)** 

## **Statement of Trustees' Responsibilities** 

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. 

The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees 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. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Disclosure of information to auditor** 

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware. 

## **Reappointment of auditor** 

A resolution for the re-appointment of Smartax Limited as auditors of the charity is to be proposed at the forthcoming Annual General Meeting. 

The annual report was approved by the trustees of the charity on 27 January 2023 and signed on its behalf by: 

......................................... Sheikh Arif Abdulhussein Trustee 

......................................... Mr Mehboob Ladak Trustee 

Page 6 



## **Al-Mahdi Institute** 

## **Independent Auditor's Report to the Members of Al-Mahdi Institute** 

## **Opinion** 

We have audited the financial statements of Al-Mahdi Institute (the 'charity') for the year ended 31 March 2022, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, 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 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 those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, 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. 

## **The impact of uncertainties due to COVID-19 and Britain exiting the European Union on our audit** 

Uncertainties related to the effects of COVID-19 and Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the trustees, such as recoverability of investments, intangible assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the charity's future prospects and performance. 

The COVID-19 pandemic has had an unprecedented impact upon the worldwide economy. At the date of this report, the full range of possible effects upon charities cannot be estimated or assessed due to the current levels of uncertainty around government and consumer responses to what might happen. 

Brexit is one of the most significant economic events of the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. 

We applied a standard firm-wide approach in response to these uncertainties when assessing the charity's future prospects and performance. No audit should be expected to predict the unknown factors or all possible future implications for a charity and this is particularly the case in relation to COVID-19 and Brexit. 

Page 7 



## **Al-Mahdi Institute** 

## **Independent Auditor's Report to the Members of Al-Mahdi Institute (continued)** 

## **Conclusions relating to going concern** 

In auditing the financial statements, 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 the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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 auditor’s report thereon. 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 form 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 the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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** 

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. 

We have nothing to report in respect of the following matters where the Charities (Accounts and Report) Regulations 2008 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 audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 6), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal 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 trustees are responsible for assessing the charity'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 charity or to cease operations, or have no realistic alternative but to do so. 

Page 8 



## **Al-Mahdi Institute** 

## **Independent Auditor's Report to the Members of Al-Mahdi Institute (continued)** 

## **Auditor Responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 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 (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 procedures are capable of detecting irregularities, including fraud is detailed below: 

We gained an understanding of the legal and regulatory framework applicable to the charity and the environment in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, financial reporting legislation, the Charities Act 2011 and UK pensions and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management regarding correspondence with regulators and tax authorities. 

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it and therefore we have communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit. 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates. We addressed the risk of management override of internal controls through testing journals. We evaluated whether there was evidence of bias by the directors in accounting estimates that represented a risk of material misstatement due to fraud. We challenged assumptions and judgements made by management in any significant accounting estimates. 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

Page 9 



## **Al-Mahdi Institute** 

## **Independent Auditor's Report to the Members of Al-Mahdi Institute (continued)** 

## **Use of our report** 

This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

...................................... Smartax Limited Chartered Certified Accountants and Statutory Auditors 38 Station Road Harrow Middlesex HA2 7SE 

27 January 2023 

Page 10 



## **Al-Mahdi Institute** 

## **Statement of Financial Activities for the Year Ended 31 March 2022** 

|**Note**<br>**Income and Endowments from:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Other trading activities<br>Investment income<br>5<br>Other income<br>6<br>Total income<br>**Expenditure on:**<br>Raising funds<br>7<br>Charitable activities<br>8<br>Total expenditure<br>Net (expenditure)/income<br>Gross transfers between funds<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>23|**Unrestricted**<br>**funds**<br>**£**<br>497,877<br>53,720<br>35,394<br>2<br>242,988<br>829,981<br>-<br>(866,707)<br>(866,707)<br>(36,726)<br>114,580<br>77,854<br>2,802,985<br>2,880,839|**Restricted**<br>**funds**<br>**£**<br>131,264<br>-<br>-<br>-<br>-<br>131,264<br>-<br>(15,758)<br>(15,758)<br>115,506<br>(114,580)<br>926<br>18,653<br>19,579|**Total**<br>**2022**<br>**£**<br>629,141<br>53,720<br>35,394<br>2<br>242,988<br>961,245<br>-<br>(882,465)<br>(882,465)<br>78,780<br>-<br>78,780<br>2,821,638<br>2,900,418|**Total**<br>**2021**<br>**£**<br>659,104<br>39,614<br>-<br>-<br>209,005|
|---|---|---|---|---|
|||||907,723|
|||||(9,477)<br>(828,451)|
|||||(837,928)|
|||||69,795<br>-|
|||||69,795<br>2,751,843|
|||||2,821,638|



All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 23. 

The notes on pages 14 to 29 form an integral part of these financial statements. Page 11 



## **Al-Mahdi Institute** 

## **(Registration number: 1080962) Balance Sheet as at 31 March 2022** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>15<br>Investments<br>16<br>**Current assets**<br>Debtors<br>17<br>Cash at bank and in hand<br>18<br>**Creditors: Amounts falling due within one year**<br>19<br>**Net current liabilities**<br>**Total assets less current liabilities**<br>**Creditors: Amounts falling due after more than one year**<br>20<br>**Net assets**<br>**Funds of the charity:**<br>**Restricted income funds**<br>Restricted funds<br>**Unrestricted income funds**<br>Unrestricted funds<br>**Total funds**<br>23|**2022**<br>**£**<br>2,961,476<br>-<br>2,961,476<br>76,966<br>94,067<br>171,033<br>(200,645)<br>(29,612)<br>2,931,864<br>(31,446)<br>2,900,418<br>19,579<br>2,880,839<br>2,900,418|**2021**<br>**£**<br>3,019,521<br>6,579|
|---|---|---|
|||3,026,100|
|||40,404<br>125,674|
|||166,078<br>(210,518)|
|||(44,440)|
|||2,981,660<br>(160,022)|
|||2,821,638|
|||18,653<br>2,802,985|
|||2,821,638|



The financial statements on pages 11 to 29 were approved by the trustees, and authorised for issue on 27 January 2023 and signed on their behalf by: 

......................................... Sheikh Arif Abdulhussein Trustee 

......................................... Mr Mehboob Ladak Trustee 

The notes on pages 14 to 29 form an integral part of these financial statements. Page 12 



## **Al-Mahdi Institute** 

## **Cash Flow Statement for the Year Ended 31 March 2022** 

|**Note**<br>**Cash flows from operating activities**<br>Net cash income<br>**Adjustments to cash flows from non-cash items**<br>Depreciation<br>7<br>Investment income<br>5<br>**Working capital adjustments**<br>Increase in debtors<br>17<br>(Decrease)/increase in creditors<br>19<br>Decrease in deferred consideration<br>20<br>Net cash flows from operating activities<br>**Cash flows from investing activities**<br>Interest receivable and similar income<br>5<br>Purchase of tangible fixed assets<br>15<br>Reduction in capital investment<br>Net cash flows from investing activities<br>**Cash flows from financing activities**<br>Repayment of loans and borrowings<br>19<br>Net (decrease)/increase in cash and cash equivalents<br>Cash and cash equivalents at 1 April<br>Cash and cash equivalents at 31 March|**2022**<br>**£**<br>78,780<br>94,642<br>(2)<br>173,420<br>(36,562)<br>(12,968)<br>(114,580)<br>9,310<br>2<br>(36,597)<br>6,579<br>(30,016)<br>(10,901)<br>(31,607)<br>125,674<br>94,067|**2021**<br>**£**<br>69,795<br>94,981<br>-|
|---|---|---|
|||164,776<br>(26,963)<br>31,864<br>(110,421)|
|||59,256|
|||-<br>(42,270)<br>29,214|
|||(13,056)<br>47,000|
|||93,200<br>32,474|
|||125,674|



All of the cash flows are derived from continuing operations during the above two periods. 

The notes on pages 14 to 29 form an integral part of these financial statements. Page 13 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022** 

## **1 Accounting policies** 

## **Statement of compliance** 

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. 

## **Basis of preparation** 

Al-Mahdi Institute meets the definition of a public benefit entity under FRS 102. The nature of the Charity's operations and principal activities are the provision of an Institute for Islamic research and resources, undertaking research and publication of any useful restful for the benefit of the public. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going concern** 

The financial statements have been prepared on a going concern basis. 

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. 

## **Judgements and key sources of estimation uncertainty** 

In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. 

The key source of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements is the valuation of investments. The charity's investments are stated at their estimated fair value based on the discounted value of future expected income flows. 

## **Income and endowments** 

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability. 

## _**Donations and legacies**_ 

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. 

Page 14 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## _**Gift aid**_ 

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

## _**Other trading activities**_ 

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

## _**Investment income**_ 

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

## _**Other income**_ 

Rental income is recognised in the period in which the income falls due on an accruals basis. 

## **Expenditure** 

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount 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 costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

## _**Raising funds**_ 

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. 

## _**Charitable activities**_ 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its educational activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

## _**Grant expenditure**_ 

Grants payable are charged in the year when the offer is conveyed to the recipient. Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure. Where a grant has been made for the benefit of an individual, or a group of individuals, through the means of an institution, this is recorded as a grant to the institution. 

## _**Grant provisions**_ 

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. 

## **Support costs** 

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, staff costs by the time spent and other costs by their usage. 

Page 15 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **Governance costs** 

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements. 

## **Irrecoverable VAT** 

Irrecoverable VAT is charged against the category of resources expended for which it was incurred. 

## **Taxation** 

The charity is considered to be exempt from tax on its charitable activities. 

## **Tangible fixed assets** 

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 

## **Depreciation and amortisation** 

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: 

**Asset class Depreciation method and rate** Long-term leasehold property Straight line over 50 years Equipment and fittings Reducing balance over 4 years 

## **Impairment of fixed assets** 

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

## **Fixed asset investments** 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost (which is equivalent to fair value) and subsequently measured at fair value at each balance sheet date. They are comprised of assets held under an agreement, generating a stream of rental income, with specific capital repayments over their economic lives. The fair value of the investments is reduced over time, reflecting the discounted future income streams, net of capital repayments, to which the charity is entitled. Any modifications to the terms of agreement are reflected in impairments in the investment. 

Income from fixed assets investments is accounted for as receivable over the term of the financial instrument and shown as rental income in the Statement of Financial Activities. 

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. 

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the fair value at the year end. 

Page 16 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **Trade debtors** 

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date. 

## **Cash and cash equivalents** 

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

## **Trade creditors** 

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Creditors are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. 

Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 

## **Provisions** 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 

## **Foreign exchange** 

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. 

Exchange differences are recognised in the Statement of Financial Activities in the period in which they arise. 

## **Fund structure** 

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

## **Operating leases** 

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term. 

Page 17 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

Assets held for use in operating leases are included in fixed assets at cost and depreciated over their useful life. 

Rental income from operating leases is recognised on a straight line basis over the term of the lease. 

## **Pensions and other post retirement obligations** 

The Charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. 

## **Financial instruments** 

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

## **2 Income from donations and legacies** 

|Donations and legacies;<br>General donations<br>Building donations<br>Gift aid reclaimed|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>475,037<br>-<br>22,840<br>497,877|**Restricted**<br>**funds**<br>**£**<br>11,264<br>120,000<br>-<br>131,264|**Total**<br>**2022**<br>**£**<br>486,301<br>120,000<br>22,840<br>629,141|**Total**<br>**2021**<br>**£**<br>518,552<br>120,000<br>20,552|
|---|---|---|---|---|
|||||659,104|



Page 18 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

£507,498 of the prior year income was attributable to unrestricted funds and £151,606 to restricted funds. 

## **3 Income from charitable activities** 

|Educational activities|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>53,720|**Total**<br>**2022**<br>**£**<br>53,720|**Total**<br>**2021**<br>**£**<br>39,614|
|---|---|---|---|



£38,056 of the prior year income was attributable to unrestricted funds and £1,558 to restricted funds. 

## **4 Income from other trading activities** 

|Wedding and room hire|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>35,394<br>35,394|**Total**<br>**funds**<br>**£**<br>35,394<br>35,394|**Total**<br>**2021**<br>**£**<br>-|
|---|---|---|---|
||||-|



Page 19 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **5 Investment income** 

|Interest receivable and similar income;<br>Interest receivable on bank deposits<br>**6**<br>**Other income**<br>Rental and accommodation income<br>Job Retention Scheme grants|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>2<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>206,477<br>36,511<br>242,988|**Total**<br>**2022**<br>**£**<br>2<br>**Total**<br>**2022**<br>**£**<br>206,477<br>36,511<br>242,988|**Total**<br>**2021**<br>**£**<br>-|
|---|---|---|---|
||||**Total**<br>**2021**<br>**£**<br>161,695<br>47,310|
||||209,005|



All of the prior year income was attributable to unrestricted funds. 

## **7 Expenditure on raising funds** 

## **a) Investment management costs** 

|Other investment management costs;<br>Impairment write down of investments|**Total**<br>**2022**<br>**£**<br>-<br>-|**Total**<br>**2021**<br>**£**<br>9,477|
|---|---|---|
|||9,477|



All of the prior year expenditure was attributable to unrestricted funds. 

Page 20 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **8 Expenditure on charitable activities** 

|Educational activities<br>Educational activities|**Activity**<br>**undertaken**<br>**directly**<br>**£**<br>711,314<br>**Activity**<br>**undertaken**<br>**directly**<br>**£**<br>681,919|**Grant funding**<br>**of activity**<br>**£**<br>16,178<br>**Grant funding**<br>**of activity**<br>**£**<br>8,395|**Activity**<br>**support costs**<br>**£**<br>154,973<br>**Activity**<br>**support costs**<br>**£**<br>138,137|**2022**<br>**£**<br>882,465|
|---|---|---|---|---|
|||||**2021**<br>**£**<br>828,451|



£866,707 (2021 - £795,831) of the above expenditure was attributable to unrestricted funds and £15,758 (2021 - £32,620) to restricted funds. 

## **9 Analysis of governance and support costs** 

## **Support costs allocated to charitable activities** 

|Educational activities<br>Educational activities<br>**Governance costs**<br>Audit fees<br>Audit of the financial statements<br>Legal and professional fees|**Governance**<br>**costs**<br>**£**<br>28,077|**Finance costs**<br>**£**<br>10,098<br>**Finance costs**<br>**£**<br>12,245<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>5,880<br>22,197<br>28,077||**Staff costs**<br>**£**<br>116,798<br>**Staff costs**<br>**£**<br>105,019<br>**Total**<br>**2022**<br>**£**<br>5,880<br>22,197<br>28,077|**Total**<br>**2022**<br>**£**<br>154,973<br>**Total**<br>**2021**<br>**£**<br>138,137<br>**Total**<br>**2021**<br>**£**<br>5,280<br>15,593|
|---|---|---|---|---|---|
||**Governance**<br>**costs**<br>**£**<br>20,873|||||
|||||||
||||||20,873|



All of the prior year governance costs were attributable to unrestricted funds. 

Page 21 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **10 Grant-making** 

## **Analysis of grants** 

|**Analysis**<br>Educational activities|**Grants to institutions**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>12,051<br>878|**Grants to individuals**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>4,127<br>7,517|
|---|---|---|



The support costs associated with grant-making are £3,446 (31 March 2021 - £1,680). 

Below are details of material grants made to institutions. 

||**2022**|**2021**|
|---|---|---|
|**Name of institution**|**£**|**£**|
|Beta Charitable Trust|12,051|878|



## **11 Net incoming/outgoing resources** 

Net incoming resources for the year include: 

|Audit fees<br>Depreciation of fixed assets<br>Finance charges payable|**2022**<br>**£**<br>5,880<br>94,642<br>6,388|**2021**<br>**£**<br>5,280<br>94,981<br>9,613|
|---|---|---|



## **12 Trustees remuneration and expenses** 

During the year the charity made the following transactions with trustees: 

## **Sheikh Arif Abdulhussein** 

Sheikh Arif Abdulhussein received remuneration of £56,918 (2021 - £56,569) during the year. 

The remuneration served as a salary for his capacity as a principal during the year. Pension contributions paid by the charity totalled £1,321 (2021 - £1,313). Consent for the remuneration was sought for and granted by the Charity Commission in May 2010. No expenses were reimbursed during the current or prior year. 

Donations made by the trustees and their families without any conditions attached totalled £12,094 for the year (2021 - £9,661). 

Page 22 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **13 Staff costs** 

The aggregate payroll costs were as follows: 

|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**<br>Wages and salaries<br>Social security costs<br>Pension costs<br>Other staff costs|**2022**<br>**£**<br>393,306<br>28,904<br>7,415<br>15,094<br>444,719|**2021**<br>**£**<br>403,042<br>33,221<br>7,260<br>4,251|
|||447,774|



The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows: 

|charity during the year expressed as full time equivalents was as follows:|||
|---|---|---|
|Administration<br>Teachers and lecturers|**2022**<br>**No**<br>9<br>11<br>20|**2021**<br>**No**<br>6<br>14|
|||20|



The trustees consider that key management personnel comprise the Sheikh Arif Abdulhussein, Mr Hashim Bata, Mr Mohamed Iqbal Asaria CBE and the trustees. The cost to the charity of remuneration of key management personnel (composing of gross pay, benefits in kind, employer's national insurance and employer's pension) was £139,886 for the year (2021 - £133,617). 

No employee received emoluments of more than £60,000 during the year 

## **14 Taxation** 

The charity is a registered charity and is therefore exempt from taxation. 

Page 23 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **15 Tangible fixed assets** 

|**15 Tangible fixed assets**||||
|---|---|---|---|
|**Cost**<br>At 1 April 2021<br>Additions<br>At 31 March 2022<br>**Depreciation**<br>At 1 April 2021<br>Charge for the year<br>At 31 March 2022<br>**Net book value**<br>At 31 March 2022<br>At 31 March 2021|**Land and**<br>**buildings**<br>**£**<br>3,509,614<br>-<br>3,509,614<br>564,461<br>70,192<br>634,653<br>2,874,961<br>2,945,153|**Furniture and**<br>**equipment**<br>**£**<br>308,292<br>36,597<br>344,889<br>233,924<br>24,450<br>258,374<br>86,515<br>74,368|**Total**<br>**£**<br>3,817,906<br>36,597|
||||3,854,503|
||||798,385<br>94,642|
||||893,027|
||||2,961,476|
||||3,019,521|



Included within the net book value of land and buildings above is £Nil (2021 - £Nil) in respect of freehold land and buildings and £2,874,960 (2021 - £2,945,153) in respect of leaseholds. 

Page 24 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **16 Fixed asset investments** 

|**16 Fixed asset investments**|||||
|---|---|---|---|---|
|Other investments<br>**Other investments**<br>**Cost or Valuation**<br>At 1 April 2021<br>Reduction in capital outstanding<br>At 31 March 2022<br>**Net book value**<br>At 31 March 2022<br>At 31 March 2021||**2022**<br>**£**<br>-<br>**Unlisted**<br>**investments**<br>**£**<br>6,579<br>(6,579)<br>-<br>-<br>6,579||**2021**<br>**£**<br>6,579|
|||||**Total**<br>**£**<br>6,579<br>(6,579)<br>-<br>-<br>6,579|



In the prior year an agreement was reached to sell the fixed asset investments. 

## **17 Debtors** 

|Trade debtors<br>Prepayments<br>Accrued income<br>Other debtors|**2022**<br>**£**<br>18,440<br>11,584<br>23,342<br>23,600<br>76,966|**2021**<br>**£**<br>3,560<br>-<br>9,492<br>27,352|
|---|---|---|
|||40,404|



Debtors includes £15,200 (2021: £17,600) receivable after more than one year. 

|Other debtors<br>**18 Cash and cash equivalents**<br>Cash at bank|**2022**<br>**£**<br>15,200<br>**2022**<br>**£**<br>94,067|**2021**<br>**£**<br>17,600|
|---|---|---|
|||**2021**<br>**£**<br>125,674|



Page 25 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **19 Creditors: amounts falling due within one year** 

|Bank loans<br>Trade creditors<br>Other loans<br>Other taxation and social security<br>Other creditors<br>Accruals<br>Deferred consideration|**2022**<br>**£**<br>10,653<br>15,963<br>7,000<br>16,889<br>26,364<br>4,880<br>118,896<br>200,645|**2021**<br>**£**<br>8,874<br>49,335<br>10,000<br>9,308<br>14,021<br>4,400<br>114,580|
|---|---|---|
|||210,518|



## **20 Creditors: amounts falling due after one year** 

|**20 Creditors: amounts falling due after one year**|||
|---|---|---|
|Bank loans<br>Deferred consideration|**2022**<br>**£**<br>31,446<br>-<br>31,446|**2021**<br>**£**<br>41,126<br>118,896|
|||160,022|



The deferred consideration of £118,896 (2021 - £233,476) included in creditors falling due within and after more than one year is payable to the vendors of the leasehold property in equal instalments of £120,000 (including notional interest) per annum. 

## **21 Obligations under leases and hire purchase contracts** 

## **Operating lease commitments** 

Total future minimum lease payments under non-cancellable operating leases are as follows: 

|**Other**<br>Within one year<br>Between one and five years|**2022**<br>**£**<br>5,352<br>-<br>5,352|**2021**<br>**£**<br>5,747<br>5,352|
|---|---|---|
|||11,099|



## **22 Pension commitments** 

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £7,415 (2021 - £7,260). The contribution payable to the fund at the balance sheet date was £1,316 (2021 - £1,305). 

Page 26 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **23 Funds** 

|**Unrestricted funds**<br>General<br>**Restricted funds**<br>Building fund<br>Scholarship fund<br>Garden fund<br>Religious fund<br>Outreach fund<br>Time for change<br>**Restricted funds**<br>**Total funds**<br>**Unrestricted funds**<br>General<br>**Restricted funds**<br>Building fund<br>Scholarship fund<br>Garden fund<br>Religious fund<br>**Restricted funds**<br>**Total funds**|**Balance at 1**<br>**April 2021**<br>**£**<br>2,802,985<br>-<br>1,190<br>2,812<br>14,651<br>-<br>-<br>18,653<br>2,821,638<br>**Balance at 1**<br>**April 2020**<br>**£**<br>2,743,313<br>-<br>1,190<br>7,340<br>-<br>8,530<br>2,751,843|**Incoming**<br>**resources**<br>**£**<br>829,981<br>120,000<br>-<br>-<br>5,092<br>5,972<br>200<br>131,264<br>961,245<br>**Incoming**<br>**resources**<br>**£**<br>754,559<br>120,000<br>8,160<br>550<br>22,906<br>151,616<br>906,175|**Resources**<br>**expended**<br>**£**<br>(866,707)<br>(5,420)<br>(1,190)<br>(2,812)<br>(2,917)<br>(3,414)<br>(5)<br>(15,758)<br>(882,465)<br>**Resources**<br>**expended**<br>**£**<br>(805,308)<br>(9,579)<br>(8,160)<br>(5,078)<br>(8,255)<br>(31,072)<br>(836,380)|**Transfers**<br>**£**<br>114,580<br>(114,580)<br>-<br>-<br>-<br>-<br>-<br>(114,580)<br>-<br>**Transfers**<br>**£**<br>110,421<br>(110,421)<br>-<br>-<br>-<br>(110,421)<br>-|**Balance at**<br>**31 March**<br>**2022**<br>**£**<br>2,880,839|
|---|---|---|---|---|---|
||||||-<br>-<br>-<br>16,826<br>2,558<br>195|
||||||19,579|
||||||2,900,418|
||||||**Balance at**<br>**31 March**<br>**2021**<br>**£**<br>2,802,985|
||||||-<br>1,190<br>2,812<br>14,651|
||||||18,653|
||||||2,821,638|



Page 27 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

The specific purposes for which the funds are to be applied are as follows: 

Building fund - for the full development of the Selly Oak campus and student accommodation and meeting its deferred payment obligations 

Scholarship fund - for the funding of students on specific progammes 

Garden fund - for maintenance of the campus garden 

Religious fund - giving of alms in accordance with religious guidelines 

Hawza fees - for the purpose of specific educational courses 

Outreach fund - to encourage to donate to those who were less fortunate and globally to support funding for deserving projects in line with the charity's ethos and philosophy 

Time for change - to hold events to celebrate the birth anniversaries of the holy personalities born in the Islamic months of Rajab and Shaban 

During the year there were transfers in the sum of £114,580 (2021 - £110,421) from the restricted building fund to unrestricted funds. This was to reflect that these funds had been fully spent on their restricted purpose in the payment or the development of the Selly Oak campus and student accommodation. 

## **24 Analysis of net assets between funds** 

|**24 Analysis of net assets between funds**||||
|---|---|---|---|
|Tangible fixed assets<br>Current assets<br>Current liabilities<br>Creditors over 1 year<br>Total net assets<br>Tangible fixed assets<br>Fixed asset investments<br>Current assets<br>Current liabilities<br>Creditors over 1 year<br>Total net assets|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>2,961,476<br>136,845<br>(186,036)<br>(31,446)<br>2,880,839<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>3,019,521<br>6,579<br>129,816<br>(192,909)<br>(160,022)<br>2,802,985|**Restricted**<br>**funds**<br>**£**<br>-<br>34,188<br>(14,609)<br>-<br>19,579<br>**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>36,262<br>(17,609)<br>-<br>18,653|**Total funds at**<br>**31 March**<br>**2022**<br>**£**<br>2,961,476<br>171,033<br>(200,645)<br>(31,446)|
||||2,900,418|
||||**Total funds at**<br>**31 March**<br>**2021**<br>**£**<br>3,019,521<br>6,579<br>166,078<br>(210,518)<br>(160,022)|
||||2,821,638|



Page 28 



## **Al-Mahdi Institute** 

## **Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)** 

## **25 Analysis of net funds** 

|Cash at bank and in hand<br>Net cash<br>Cash at bank and in hand<br>Net cash|**At 1 April**<br>**2021**<br>**£**<br>125,674<br>125,674<br>**At 1 April**<br>**2020**<br>**£**<br>32,474<br>32,474|**Cash flow**<br>**£**<br>(31,607)<br>(31,607)<br>**Cash flow**<br>**£**<br>93,200<br>93,200|**At 31 March**<br>**2022**<br>**£**<br>94,067|
|---|---|---|---|
||||94,067|
||||**At 31 March**<br>**2021**<br>**£**<br>125,674|
||||125,674|



## **26 Related party transactions** 

Transactions with trustees relating to remuneration and expenses have been highlighted in note 9. In addition, during the year the charity made the following related party transactions: 

## **Sheikh Arif Abdulhussein** 

(Trustee) 

During the year, Sheikh Arif Abdulhussein and his various family members have given donations to the charity in the way of Gift Aid. Total donations amounted to £12,094 (2021 - £4,661). 

Also during the year Sheikh Arif was provided with an interest free loan of £20,000 used to acquire a vehicle. The loan would be repayable by January 2026 with repayments deferred to commencing in 2023. At the balance sheet date the amount due from Sheikh Arif Abdulhussein was £20,000 (2021 - £20,000). 

## **Mr Hashim Bata** 

(Nephew of Sheikh Arif Abdulhussein and key management personnel) 

Mr Hashim Bata received remuneration as employee of the charity totalling £37,398 (2021 - £34,658) during the year. At the balance sheet date the amount due to/from Mr Hashim Bata was £Nil (2021 - £Nil). 

## **Ms Mahdiyah Hussain** 

(Daughter of Sheikh Arif Abdulhussein) 

Ms Mahdiyah Hussain works as a faculty member at the Institute teaching theology, legal theory, and jurisprudence to first and second year students and manages the Institute’s research activities. She received remuneration of £14,220 (2021 - £21,175) as a salary for her role during the year. At the balance sheet date the amount due to/from Ms Mahdiyah Hussain was £Nil (2021 - £Nil). 

Page 29