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2024-03-31-accounts

Charity registration number: 1080962

Al-Mahdi Institute

Annual Report and Financial Statements for the Year Ended 31 March 2024

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

Al-Mahdi Institute

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 to 28

Al-Mahdi Institute

Reference and Administrative Details

Trustees Sheikh A Abdulhussein Mr M Ladak Mr A A Datoo Senior Management Team Sheikh A Abdulhussein, Director of the Institute Mr H Bata, Managing Director Mr M I Asaria CBE 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 Independent Examiner 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 of the charity for the year ended 31 March 2024.

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 Islamic research and resources Centre; Undertaking research and publishing any useful results for the benefit of the public; Establishing and running an outstanding educational institute (seminary) that will foster active and collaborative links with leading global educational institutes.

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.

Page 2

Al-Mahdi Institute

Trustees' Report (continued)

Achievements and performance

The achievements and performance described in this section reflect the activities carried out during the year ended 31 March 2024. These activities include those of the unincorporated charity (Reg. No. 1080962) up to 26 April 2023, at which point all assets and activities were transferred to the CIO (Reg. No. 1191746).

1. Education

This year, the Hawza Programme had 306 students enrol. 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.

2. Research

The Institute hosted its 11th annual Contemporary Fiqhi Issues workshop on 6th-7th July 2023 discussing Islamic Perspectives on the Beginning of Human Life: Jurisprudential, Theological and Social Implications’ which hosted scholars and academics from all over the world.

The Institute hosted its inaugaral Hadith & History Conference on 12th and 13th Feb 2024 titled ‘Compiling a Tradition: The History and Development of the Early Imāmī Hadith Corpora’.

The Centre for Intra-Muslim Studies (CIMS) held a two-day convention inviting scholars from all schools of thought to discuss pertinent issues such as the role and scope of gender and sexuality in Islam. The convention was held on 4th & 5th March 2024.

Following the success of the previous Contemporary Fiqhi Issues Workshop, AMI published the conference proceedings of the 2022 workshop titled “Islam and the Institution of Marriage: Legal & Sociological approaches.”

AMI Press published “The Way of Nobility: Knowledge of the Imam” a translation of translation of ‘Minhāj al-karāma fī maʿrifat by al-ʿAllāma al-Ḥillī in June 2023.

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 The Islamic views on Funeral Rites, The relationship between marital contract (nikāḥ) and intercourse in Islam, Vigilantism in Islam, The use of Cannabis for recreational and medicinal purposes, Self-Flegallation, amongst other topics. 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 tattoos in Islam, Halal compliance of stunning and slaughter of ovine, Polygyny in Islam and more. These discussions were also published as statements of guidance on the DIA website.

Page 3

Al-Mahdi Institute

Trustees' Report (continued)

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.

Financial review

The Institute showed income totalling £82,162 (2023 - £991,219) for the year ended 31 March 2024.

Expenditure for the year totalled £80,500 (2023 - £979,819) for the year ended 31 March 2024,

The financial results above above reflect the point up to which the Charity transitioned to a Charitable Incorporated Organisation.

The net assets transferred were £2.9m. Further details can be found within the structure, governance and management section of the trustees report and note 26 of the financial statements.

Policy on reserves

The charity has a number of restricted funds and details of these are given in note 21.

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.

Page 4

Al-Mahdi Institute

Trustees' Report (continued)

Plans for future periods

Aims and key objectives for future periods

Priorities and plans for the future currently include:

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Sheikh A Abdulhussein Mr M Ladak Mr A A Datoo Mr H Bata (resigned 30 April 2023)

Senior Management / Leadership Sheikh A Abdulhussein, Director of the Institute Team: Mr H Bata, Managing Director Mr M I Asaria CBE

Page 5

Al-Mahdi Institute

Trustees' Report (continued)

Structure, governance and management

Nature of governing document

The charity was an unincorporated entity established under a constitution dated 21 May 2000, which was revised in July 2003 and January 2014. It was registered with the Charity Commission under registration number 1080962.

In October 2020, the charity completed the registration process to become a Charitable Incorporated Organisation (CIO) and was registered with the Charity Commission under a new registration number, 1191746, with its latest constitution dated 3 June 2020. This transition was undertaken to provide a more robust legal structure and ensure limited liability protection for the trustees.

During the year, on 26 April 2023, the charity completed the transfer of all its assets and activities to the newly incorporated CIO. The charitable purposes and objectives of the organisation remain unchanged, and the charity’s activities continued seamlessly within the CIO following the transfer.

This report presents the activities of the unincorporated entity up to the date of transfer, after which all activities are accounted for within the CIO. The comparative period reflects the results of the unincorporated entity.

Further details regarding the transfer and the assets transferred can be found in note 26 of the financial statements.

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.

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:

Page 6

Al-Mahdi Institute

Trustees' Report (continued)

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.

The annual report was approved by the trustees of the charity on 28 January 2025 and signed on its behalf by:

......................................... Sheikh A Abdulhussein Trustee

......................................... Mr M Ladak Trustee

Page 7

Al-Mahdi Institute

Independent Examiner's Report to the trustees of Al-Mahdi Institute

I report to the trustees on my examination of the accounts of Al-Mahdi Institute for the year ended 31 March 2024.

Responsibilities and basis of report

As the charity trustees of Al-Mahdi Institute you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Al-Mahdi Institute's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of Al-Mahdi Institute as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Sajjad Rajan FCCA ACA CTA Smartax Limited

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

28 January 2025

Page 8

Al-Mahdi Institute

Statement of Financial Activities for the Year Ended 31 March 2024

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net income
Other recognised gains
and losses
Transfer of net assets to
CIO
26
Net movement in funds
Reconciliation of funds
Total funds brought
forward
Total funds carried
forward
21		 Continuing
operations
2024
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Unrestricted
funds
Discontinued
Restricted funds
Discontinued
35,851
7,000
11,145
-
8,171
-
-
-
19,995
-
75,162
7,000
(1,385)
-
(72,650)
(6,465)
(74,035)
(6,465)
1,127
535
(2,892,786)
(20,695)
(2,891,659)
(20,160)
2,891,659
20,160
-
-		 Discontinued
operations
Total
2024
£
42,851
11,145
8,171
-
19,995
82,162
(1,385)
(79,115)
(80,500)
1,662
(2,913,481)
(2,911,819)
2,911,819
-		 Total
2023
£
629,534
29,089
81,859
12
250,725
991,219
-
(979,819)
(979,819)
11,400
-
11,400
2,900,419
2,911,819

The comparative figures for 2023 all relate to discontinued operations.

The funds breakdown for 2023 is shown in note 21.

The notes on pages 11 to 28 form an integral part of these financial statements. Page 9

Al-Mahdi Institute

(Registration number: 1080962) Balance Sheet as at 31 March 2024

Note
Fixed assets
Tangible assets
15
Current assets
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
21		 2024
£
-
-
-
-
-
-
-
-
-
-
-
-		 2023
£
2,935,468
61,541
31,178
92,719
(94,628)
(1,909)
2,933,559
(21,740)
2,911,819
20,160
2,891,659
2,911,819

The financial statements on pages 9 to 28 were approved by the trustees, and authorised for issue on 28 January 2025 and signed on their behalf by:

......................................... Sheikh A Abdulhussein Trustee

......................................... Mr M Ladak Trustee

The notes on pages 11 to 28 form an integral part of these financial statements. Page 10

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024

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 charity transferred all its assets and activities to a new Charitable Incorporated Organisation as of 26 April 2023. As a result the unincorporated charity ceased on the transfer but the activities continued under the new Charitable Incorporated Organisation.

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.

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.

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.

Page 11

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

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 12

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (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.

Page 13

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

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.

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.

Page 14

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

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.

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.

Page 15

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

2 Income from donations and legacies

Donations and legacies;
General donations
Building donations		 Unrestricted
funds
General
£
35,851
-
35,851		 Restricted
funds
£
7,000
-
7,000		 Total
2024
£
42,851
-
42,851		 Total
2023
£
509,534
120,000
629,534

3 Income from charitable activities

Unrestricted
funds Total Total
General 2024 2023
£ £ £
Educational and research activities 11,145 11,145 29,089

4 Income from other trading activities

Wedding and room hire Unrestricted
funds
General
£
8,171
8,171		 Total
funds
£
8,171
8,171		 Total
2023
£
81,859
81,859

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

Page 16

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

5
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits		 Total
2024
£
-		 Total
2023
£
12

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

6 Other income

Rental and accommodation income
Government grants		 Unrestricted
funds
General
£
19,995
-
19,995		 Total
2024
£
19,995
-
19,995		 Total
2023
£
240,725
10,000
250,725

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

7 Expenditure on raising funds

a) Costs of trading activities

Wedding and hire expenses Unrestricted
funds
General
£
1,385
1,385		 Total
2024
£
1,385
1,385		 Total
2023
£
-
-

Page 17

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

8 Expenditure on charitable activities

8
Expenditure on charitable activities
Educational and research activities
Educational and research activities		 Activity
undertaken
directly
£
65,160
Activity
undertaken
directly
£
810,917		 Grant funding
of activity
£
1,621
Grant funding
of activity
£
25,386		 Activity
support costs
£
12,334
Activity
support costs
£
143,515		 2024
£
79,115
2023
£
979,818

£72,650 (2023 - £872,701) of the above expenditure was attributable to unrestricted funds and £6,465 (2023 - £107,118) to restricted funds.

Page 18

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

9 Analysis of governance and support costs

Support costs allocated to charitable activities

Educational and research activities
Educational and research activities		 Governance
costs
£
450
Governance
costs
£
28,955		 Finance costs
£
444
Finance costs
£
3,777		 Staff costs
£
11,439
Staff costs
£
110,783		 Total
2024
£
12,333
Total
2023
£
143,515

£12,333 (2023 - £142,411) of the above expenditure was attributable to unrestricted funds and £Nil (2023 - £1,104) to restricted funds.

Governance costs

Audit fees
Audit of the financial statements
Legal and professional fees		 Unrestricted
funds
General
£
-
450
450		 Total
2024
£
-
450
450		 Total
2023
£
7,017
21,938
28,955

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

Page 19

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

10 Grant-making

Analysis of grants

Analysis of grants
Grants to institutions Grants to individuals
2024 2023 2024 2023
£ £ £ £
Analysis
Educational activities 1,471 22,126 150 3,260

The support costs associated with grant-making are £299 (31 March 2023 - £4,356).

Below are details of material grants made to institutions.

Name of institution
Beta Charitable Trust
Clifton Road Food Bank		 2024
£
1,421
50
1,471		 2023
£
16,076
6,050
22,126

11 Net incoming/outgoing resources

Net incoming resources for the year include:

Audit fees
Independent examiner's fee
Depreciation of fixed assets
Finance charges payable		 2024
£
-
1,800
7,055
48		 2023
£
7,017
-
100,107
2,047

12 Trustees remuneration and expenses

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

The Director of the Institute, who is also a trustee, received remuneration of 3,864 (2023 - 58,220) during the year. The remuneration served as a salary for his capacity as a principal during the period until transfer into the CIO. Pension contributions paid by the charity totalled £91 (2023 - £1,321). Consent for the remuneration was sought for and granted by the Charity Commission in May 2010. Expenses reimbursed during the year amounted to £122 (2023 - £6,113).

The Managing Director of the Institute received remuneration of £2,961 (2023 - £3,544) during the period whilst he was a trustee.

Page 20

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

Donations made by the trustees and their families without any conditions attached totalled £822 for the year (2023 - £3,739).

13 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Other staff costs		 2024
£
29,079
-
562
344
29,985		 2023
£
386,408
30,781
7,910
5,833
430,932

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:

Administration
Teachers and lecturers		 2024
No
8
9
17		 2023
No
7
11
18

The trustees consider that key management personnel comprise of the Director of the Institute, the Managing Director, Mr M I 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 £6,992 for the period (2023 - £114,017).

14 Taxation

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

Page 21

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

15 Tangible fixed assets

Cost
At 1 April 2023
Transferred to the CIO
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Transferred to the CIO
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Land and
buildings
£
3,509,614
(3,509,614)
-
704,845
4,808
(709,653)
-
-
2,804,769		 Furniture and
equipment
£
418,987
(418,987)
-
288,288
2,238
(290,526)
-
-
130,699		 Total
£
3,928,601
(3,928,601)
-
993,133
7,046
(1,000,179)
-
-
2,935,468

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of freehold land and buildings and £Nil (2023 - £2,804,768) in respect of leaseholds.

16 Debtors

Trade debtors
Prepayments
Accrued income
Other debtors
Debtors includes £Nil (2023 - £11,479) receivable after more than one year.
Other debtors		 2024
£
-
-
-
-
-
2024
£
-		 2023
£
23,439
17,881
1,237
18,984
61,541
2023
£
11,479

Page 22

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

17 Cash and cash equivalents

Cash at bank
18 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals
19 Creditors: amounts falling due after one year
Bank loans		 2024
£
-
2024
£
-
-
-
-
-
-
-
2024
£
-		 2023
£
31,178
2023
£
10,648
28,529
4,000
16,272
22,312
12,867
94,628
2023
£
21,740

20 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 £562 (2023 - £7,910). The contribution payable to the fund at the balance sheet date was £Nil (2023 - £3,402).

Page 23

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

21 Funds

Unrestricted funds
General
Restricted funds
Religious fund
Outreach fund
Time for change
Restricted funds
Total funds
Unrestricted funds
General
Restricted funds
Building fund
Religious fund
Hawza fees
Outreach fund
Time for change
Restricted funds
Total funds		 Balance at 1
April 2023
£
2,891,659
14,903
1,992
3,265
20,160
2,911,819
Balance at 1
April 2022
£
2,880,840
-
16,826
-
2,558
195
19,579
2,900,419		 Incoming
resources
£
75,162
5,415
-
1,585
7,000
82,162
Incoming
resources
£
834,816
120,000
2,679
9,382
13,656
10,686
156,403
991,219		 Resources
expended
£
(74,035)
(1,461)
(154)
(4,850)
(6,465)
(80,500)
Resources
expended
£
(872,701)
(71,296)
(4,602)
(9,382)
(14,222)
(7,616)
(107,118)
(979,819)		 Transferred
to the CIO
£
(2,892,786)
(18,857)
(1,838)
-
(20,695)
(2,913,481)
Transfers
£
48,704
(48,704)
-
-
-
-
(48,704)
-		 Balance at
31 March
2024
£
-
-
-
-
-
-
Balance at
31 March
2023
£
2,891,659
-
14,903
-
1,992
3,265
20,160
2,911,819

Page 24

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (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

Community fund - for community activities and programs

Religious fund - giving of alms in accordance with religious guidelines

Department of mysticism and spirituality - reserved for funding activities on mysticism and spirituality

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 £Nil (2023 - £48,704) 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.

Page 25

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

22 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
23 Analysis of net funds
Cash at bank and in hand
Net cash
Cash at bank and in hand
Net cash		 Unrestricted
funds
General
£
-
-
-
-
-
Unrestricted
funds
General
£
2,935,468
72,559
(94,628)
(21,740)
2,891,659
At 1 April
2023
£
31,178
31,178
At 1 April
2022
£
94,067
94,067		 Restricted
funds
£
-
-
-
-
-
Restricted
funds
£
-
20,160
-
-
20,160
Cash flow
£
(31,178)
(31,178)
Cash flow
£
(62,889)
(62,889)		 Total funds at
31 March
2024
£
-
-
-
-
-
Total funds at
31 March
2023
£
2,935,468
92,719
(94,628)
(21,740)
2,911,819
At 31 March
2024
£
-
-
At 31 March
2023
£
31,178
31,178

Page 26

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

24 Related party transactions

Transactions with trustees relating to remuneration and expenses have been highlighted in note 12. In addition, during the year the charity made the following related party transactions:

Director of the Institute

(Trustee)

During the period, the Director of the Institute and his various family members have given donations to the charity in the way of Gift Aid. Total donations amounted to £798 (2023 - £3,739).

Also during the period the Director was in receipt of an interest free loan used to acquire a vehicle. The loan is repayable by January 2026 and was transferred to the CIO. At the balance sheet date the amount due to/from from Director of the Institute was £Nil (2023 - £16,279).

Managing Director

(Trustee during part of the year. Nephew of a trustee and key management personnel) The Managing Director received remuneration as employee of the charity totalling £2,917 (2023 - £41,700) during the period. At the balance sheet date the amount due to/from Managing Director was £Nil (2023 - £Nil).

Ms M Hussain

(Daughter of a trustee)

Ms M 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 £1,126 (2023 - £13,692) as a salary for her role during the period. At the balance sheet date the amount due to/from Ms M Hussain was £Nil (2023 - £Nil).

Donations from related entities

During the period the charity received donations of £Nil (2023 - £18,218) from an overseas charity where one of the trustees is also a trustee. In addition the charity also received donations amounting to £Nil (2023 - £85,000) from a company where one of the trustees is also a director. At the balance sheet date the amount due to/from related entities was £Nil (2023 - £Nil).

25 Non-adjusting events after the financial period

Subsequent to the year-end, in April 2024, the charity incorporated a new subsidiary company, AMI Spaces Ltd. This was held in trust under the name of Mr. Hashim Bata.

Page 27

Al-Mahdi Institute

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

26 Charity merger

Transfer to Charitable Incorporated Organisation

On 26 April 2023, the unincorporated charity completed the transfer of its assets, funds and activities to the newly established Charitable Incorporated Organisation (CIO) with registration number 1191746. The names and descriptions of the entities remained the same following the transfer.

In accordance with Section 27 of the Charities Statement of Recommended Practice (SORP) (FRS 102), merger accounting has been applied to reflect the results of the combined entities during the reporting period in the CIO entity. The application of merger accounting was required as the charity met the relevant criteria outlined in the SORP.

There were no significant adjustments necessary to align accounting policies or to adjust net assets as a result of the merger.

A breakdown of the assets and funds transferred is provided below.

Net assets transferred to CIO

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Total
2024
£
2,928,422
118,690
(112,778)
(20,853)
2,913,481

Analysis of net assets at the date of merger

Net assets
Represented by:
Unrestricted funds
Restricted funds
Total funds		 Total
2024
£
2,913,481
2,892,786
20,695
2,913,481

Page 28