**Registered number: 04805117 Charity number: 1100481**
## **The Muath Trust**
Trustees' Report and Financial Statements
For the year ended 31 December 2023
## **The Muath Trust**
## **(A company limited by guarantee)**
## **Contents**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 11|
|**Independent auditor's report on the financial statements**|12 - 16|
|**Consolidated statement of financial activities**|17|
|**Consolidated balance sheet**|18|
|**Charity balance sheet**|19|
|**Consolidated statement of cash flows**|20|
|**Notes to the financial statements**|21 - 45|
**The Muath Trust**
## **(A company limited by guarantee)**
## **Reference and Administrative Details of the Charity, its Trustees and Advisers For the year ended 31 December 2023**
|**Trustees**|Mr Adnan Abdul Rahman Saif,Chair(resigned 18 November 2023)|
|---|---|
||Dr Dawood Abdul Malek Yaha Al-Hidabi|
||Mr Jaffer Mansour Mohammed Al-Shamery|
||Mr Nageeb Mohammed Ali|
||Dr Ali Abdul RahmanQirbee(resigned 11 May2023)|
||Mr Kassim Mohamed Salem Ahmed,Treasurer|
||Dr Yahya Al-Jalal|
||Mrs Faten Abdul Galil Yafai|
||Dr Saeed Nasser(appointed 25 November 2023)|
||Mr Mohammed Abdulrahman Dabwan Saif(appointed 18 January2024)|
|**Company registered**
**number**
04805117
**Charity registered number**
1100481
**Registered office**
The Bordesley Centre
Stratford Road
Camp Hill
Birmingham
B11 1AR
**Company secretary**
Mrs Faten Abdul Galil Yafai
**Chief executive officer**
Mr Salem Ahmed (Acting CEO to May 2023)
Mr Rawaad Mahyub (CEO from June 2023)
**Independent auditors**
Dains Audit Limited
15 Colmore Row
Birmingham
B3 2BH
**Bankers**
National Westminster Bank Plc
30a Harborne Road
Birmingham
B15 3AA
Al Rayan Bank
24a Calthorpe Road
Birmingham
B15 1RP||
Page 1
**The Muath Trust**
## **(A company limited by guarantee)**
## **Trustees' report**
**For the year ended 31 December 2023**
The Trustees present their annual report together with the audited financial statements of the Charity for the 1 January 2023 to 31 December 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Objectives and activities**
## **a. Policies and objectives**
The objects and principal activities of the charity are:
- To advance the education of the public in particular but not exclusively through the provision of educational and training services for all members of the community, particularly but not limited to those of Yemeni origin;
- To enable those who were not born in the United Kingdom or whose parents were not born in the United Kingdom to take a fuller part in British society;
- To relieve poverty by the provision of advice and financial and other assistance to those in need, hardship or distress;
- To provide facilities in the interests of social welfare for the recreation and other leisure time pursuits of those in need of those facilities by reason of their age, youth, infirmity or disablement, poverty or social or economic circumstances;
- To do other charitable purposes for the benefit of the community, particularly but not limited to those of Yemeni origin, as the board of directors determine from time to time.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Strategies for achieving objectives**
The Muath Trust was established in 1990 and then incorporated 19 June 2003. It is one of the largest community-led third sector initiatives in the United Kingdom. Founded by members of the Yemeni community, the Charity plays a pivotal role in helping the community integrate within the wider society by helping to enhance its capacity and encouraging its members to play a more effective role in society. Since its inception, the Charity has strived to offer high quality education and training and provided essential services that cater to the needs of different sections of the community.
The Charity is committed to delivering its programmes by entering into strategic partnerships with key stakeholders and other specialist institutions. Over the years, the Trust has entered into long standing partnerships with a number of local, national, public and private sector institutions to further its objects.
Conscious of the growth of the Trust and the variety of services it seeks to provide to achieve its objectives, management found it necessary to review its operations, its ways of working and its performance and proposed a new structure that will help transparency, accountability and capacity leading to enhanced quality of services.
Page 2
**The Muath Trust**
## **(A company limited by guarantee)**
## **Trustees' report (continued)**
**For the year ended 31 December 2023**
## **Objectives and activities (continued)**
## **c. Activities undertaken to achieve objectives**
The charity delivers a very wide range of activities, serving very young children from two years old to the elderly, the youth, adult education, volunteers and women and providing excellent facilities for conferencing and banqueting. The Trust’s structure now consists of seven key departments delivering a range of activities: Support Services, Employment Opportunities, Education & Training, Conference and Meeting facilities, Care Services, Faith & Cultural Services and Community Welfare & Engagement.
## **d. Grant-making policies**
The charity makes grants to project delivery partners as instructed by the grant funding provider and in accordance with supplementary delivery partner agreements.
## **e. Main activities undertaken to further the Charity's purposes for the public benefit**
## **1. Support Services**
- a. IT b. HR c. Finance d. Marketing
- e. Research, monitoring, evaluation, accountability & learning (MEAL)
## **2. Education, Training & Employment Department**
- a. Nursery b. Amanah Arabic School - supplementary education
- c. Vocational & Soft Skills (L2 & L3)
## **3. Business Development Department**
- a. Fundraising and grants
- b. Overseas partnerships
- c. External relations
## **4. Facilities Management**
- a. Conferences, banqueting halls, sports facilities
- b. Accommodation, business units
- c. Maintenance
Page 3
**The Muath Trust**
**(A company limited by guarantee)**
## **Trustees' report (continued)**
## **For the year ended 31 December 2023**
## **Objectives and activities (continued)**
## **5. Community Care Services Department**
- a. Trust Quality Care Ltd:
- i. Care home and
- ii. Domiciliary care services
## **6. Faith and Cultural Services**
- a. Amanah Masjid, faith services, community education and cultural research
## **7. Youth & Community Engagement Department**
- a. Amanah youth services
- b. Women’s projects
- c. Community events & sports facilities
- d. Elderly services
- e. Volunteers
- f. Information, Advice and Guidance (IAG)
Page 4
**The Muath Trust**
**(A company limited by guarantee)**
## **Trustees' report (continued)**
**For the year ended 31 December 2023**
## **Achievements and performance**
## **a. Main achievements of the Charity**
The Trust continued to work closely with many partners such as faith leaders, Birmingham City Council, Department of Culture, Media and Sports (DCMS), Department for Levelling Up (DLUC), West Midlands Police, West Midlands Combined Authority and other partners to support the services provided to the community.
This year we managed to secure £156,000 of funding for a number of projects for work with young people, the elderly and for the local community in general which included a community fund to counter the effects of the cost of living crisis.
The Trust maintained its delivery of several activities while enhancing its working systems & staffing structure, promoting planning, accountability, transparency and performance. We strengthened partnerships and refocused on education & training, and youth services by prioritising funding opportunities for these services.
## **b. Review of activities**
## **1. Education, Training & Employment**
The training and employment projects funded through the ESF programme came to an end (Stepping Up in June 2023 and AEGIS in March 2023). Employment support for 40 adults between January and March which included: CV and cover letters support, mock interviews and job applications. The Trust also focused on cultural education, successfully maintaining Arabic supplementary schools.
The Trust continues to provide a range of services to support the economic and social welfare of the local community. This includes advising those seeking employment and aiding those seeking career enhancement.
## **2. Community Care Services Department**
## **Day Nursery & Childrens’ Activities:**
The Amanah Day Nursery provides a holistic nurturing & caring environment and delivers a moral and spiritual education guided by Islamic ethos. It is open to all sections of the local community and has the capacity to enrol 55 children aged 2 to 4 years old each year. The nursery is well-resourced and the children have access to an enclosed outdoor play area. It employs dedicated and qualified staff who are trained in safeguarding, first aid and child protection. The Nursery follows the Early Years Foundation Stage which ensures a broad balanced education for the children. The Nursery received an ‘Outstanding’ rating in all areas at the last Ofsted inspection in October 2022.
- We have continued to focus on parent partnerships; involving the parents in their children’s learning - through newsletters, daily communication and regular emails. Parents have access to the nursery to view its facilities and have regular meetings with staff; especially parents of children with special needs and those who need support and guidance.
- Regular safety measures are in place to maintain the safety of the children and staff. This is done through risk assessments and following government guidelines.
Page 5
**The Muath Trust**
**(A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 December 2023**
## **Achievements and performance (continued)**
## **Trust Quality Care Ltd:**
The Trust established a new wholly owned subsidiary company under the name of Trust Quality Care Ltd for the purpose of delivering Home Care Services. This involves providing personal and health care assistance to the elderly and adults in their own homes. The Company was approved by Care Quality Commission, the regulating authority in the UK, as a registered provider of personal care in February 2016. It was also approved by Birmingham City Council as an authorised home care provider in July 2016 to take on clients registered with social services. The Company also provides services to private clients who register directly.
## **Rosemary Lodge Rest Home:**
Rosemary Lodge Rest Home has been run by Trust Quality Care since its acquisition by a London based charity in February 2020. The home, a 29-bed residential unit is located in Kings Heath, Birmingham. The Company received CQC approval in February 2020 and registration with Birmingham City Council was completed in March 2020. All staff and operations have been transferred from the previous company to TQC. The last CQC inspection found that there was good practice all round.
## **3. Assets, Conference & Banqueting Department**
The Muath Banqueting and Conference Centre offers facilities which cater for various types of events. With our Grade II* listed, 18th Century building we are a unique wedding and conference venue.
The Centre offers quality facilities for functions, meetings, weddings, conferences and an array of other activities and programmes which are well used by local organisations and the community.
It provides a limited number of accommodation bedsits for those, mainly elderly, wishing to live onsite and benefit from some of the services and support the Trust offers.
## **4. Faith and Cultural Services**
## **Amanah Masjid (Mosque):**
The Amanah Masjid in Birmingham has become prominent, catering to a large congregation of worshipers on a daily basis. In addition to prayer facilities, the Masjid offers various non-formal educational programmes and community services for adults and youth. Notable achievements and contributions include:
- Raising awareness and providing guidance on hygiene and safety after the pandemic in coordination with other Birmingham Masjids and the Department of Public Health of BCC.
- Celebrating events like Ramadhan and Eid.
- Ongoing regular meetings of the Masjid Committee to oversee risk assessment and event planning, ensuring compliance with Government Guidance for Places of Worship.
Page 6
## **The Muath Trust**
## **(A company limited by guarantee)**
**Trustees' report (continued)**
**For the year ended 31 December 2023**
## **Achievements and performance (continued)**
## **5. Community Engagement Department**
## **Youth and Sports:**
The Centre has made use of its own resources, including the Youth Club and Sports facilities, to provide young people with opportunities to participate in various activities and programs. Notable achievements this year include:
- Regular Youth Club sessions on Fridays and Saturdays and some Sundays.
- Enabling the youth to benefit from Trust facilities by organizing events during school mid-term holidays and summer vacations.
- Encouraging the youth, both boys and girls, to organize fundraising events and support their activities, with additional support from the Trust through grants.
The Trust has also continued to support the Amanah Football Club (AFC) by providing facilities for their meetings, training, and functions.
## **Information, Advice and Guidance (IAG):**
The Trust offers this valuable service to the community, providing assistance to citizens in need on matters related to housing, benefits, bills, training, employment opportunities, immigration, signposting and many other issues.
## **Elderly Services:**
The Trust has given special attention to caring for the elderly in the community by offering secure supported housing within the Bordesley Centre as well as providing dedicated services and programmes.
Delivering a contract awarded by Birmingham City Council, which has given much needed support to the isolated and vulnerable elderly. The regular weekly programmes and the lunch club are held on Wednesdays.
## **Volunteering:**
Volunteering played a crucial role during the Covid period, but efforts started to decline post Covid-19. The Trust focused on doubling efforts in organizing this valuable activity; aiming to engage better with the community and involve the youth in self-development and community contributions.
## **Other areas:**
The Trust is actively developing strategies to enhance engagement with communities, authorities, and partners.
## **Support Services Department:**
This department offers support to other departments, namely HR, Finance, IT, Media & Marketing, Research & MEAL.
Page 7
**The Muath Trust**
**(A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 December 2023**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The group's financial position and performance is set out in the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and accompanying notes.
At at 31 December 2023, consolidated funds amounted to £9,145,479 (2022 - £9,270,270) comprising restricted funds of £161,343 (2022 - £137,439), designated funds of £7,624,709 (2022 - £7,765,786) and unrestricted general funds, equivalent to the free reserves of the group, of £1,359,427 (2022 - £1,367,045). £7,549,709 of fixed assets are included in designated funds now that the fixed assets that represent the funds have been purchased and the restrictions pertaining to the source funding have therefore been met.
The Trustees have considered the level of financial reserves required to enable the charity to meet its obligations on an ongoing basis. The Trustees consider that they should aim to hold, as unrestricted general funds, a level of reserves equivalent to two months outgoing resources plus an estimate of the current liability for redundancy pay on existing staff.
Given the number of projects and their diverse sources of funding, the Trustees consider that this level of reserves would enable the company to arrange an orderly reduction in activities in the event of a major loss of funding. The long term strategy is to build reserves through operating surpluses and donations. The management of the Charity and the Trustees are aware of the need to react immediately to any shortfall in funding.
## **c. Material investments policy**
Under the Memorandum and Articles of Association, as amended by a special resolution dated 25 November 2014, the charity has the power to make any investment which the Trustees see fit.
Page 8
**The Muath Trust**
**(A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 December 2023**
## **Structure, governance and management**
## **a. Constitution**
The Charity and the Group is registered as a charitable company limited by guarantee and was incorporated on 19 June 2013 which is governed by its Memorandum and Articles of Association, as amended by a special resolution on 25 November 2014 with a Companies House registration number of 04805117. The wholly owned subsidiaries being Muath Trading Limited and Trust Quality Care were each incorporated on 17 September 2014 and 15 April 2015 respectively and they are also governed by their Memorandum and Articles of Association per each of their dates of incorporation. The company has a registered office address of The Bordesley Centre, Stratford Road, Birmingham, B11 1AR.
The Charity and the Group is governed and constituted under a Memorandum and Articles of Association dated 19 June 2003 as amended by a special resolution on 25 November 2014 and is a registered charity with a charity number of 1100481.
## **b. Methods of appointment or election of Trustees**
The management of the Group and the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum and Articles of Association.
## **c. Organisational structure and decision-making policies**
The Board of Trustees, which comprises up to 15 members (presently 7), administer the Charity. The board meets at least once a year to evaluate the work, set objectives and agree on future strategy. In addition, there are a number of sub-committees including a Management Committee that meets more frequently to manage the Charity and it reports back to the board of Trustees. The Management Committee includes a number of trustees, a legal advisor, as well as experienced members of the communities served by the Charity. A Chief Executive Officer is appointed by the trustees to manage the implementation of strategy, policies and day-to-day operations. The new departmental structure includes 7 Senior managers who implement the day-to-day activities of the Trust.
## **d. Policies adopted for the induction and training of Trustees**
New Trustees undergo an orientation day to brief them on their responsibilities and legal obligations under the law and policies contained in the following: Charity and Company Law, the content of the Memorandum and Articles of Association, the Committee and decision-making processes, the business plan and recent financial performance of the Charity.
During the induction day new trustees meet key employees and other Trustees. In addition, they are encouraged to attend appropriate external training events to facilitate their understanding of their role in the Trust.
## **e. Related party relationships**
During the year the Charity has two wholly owned subsidiaries being Muath Trading Ltd and Trust Quality Care Ltd. The transactions of these subsidiaries are included within the consolidated financial statements.
Page 9
**The Muath Trust**
## **(A company limited by guarantee)**
## **Trustees' report (continued)**
**For the year ended 31 December 2023**
## **Structure, governance and management (continued)**
## **f. Financial risk management**
The Trustees have assessed the major risks to which the Charity and the Group is exposed, in particular those related to the operations and finances of the Charity and the Group, and are satisfied that systems & procedures are in place to mitigate our exposure to the major risks.
The Trustees are satisfied that the appropriate systems are in place to manage the risks that have been identified. Comprehensive insurance cover is in place and DBS checks are carried out for all staff and particularly all staff that work with children and vulnerable groups.
Also, as part of a drive for good practice, regular reviews of policies and procedures are undertaken and HR and Health & Safety support and services are provided by a professional company.
## **Plans for future periods**
The new organisational structure which began to be rolled out in 2022 was fully in place by the end of 2023. This will be the cornerstone for the implementation of the Trust’s strategy in the short term and medium-term.
The vision and mission of the Trust will continue to be refined and will be coupled with enhanced policies and procedures, new systems of work, introduction of new financial services and systems, all facilitated by better management of human resources. The Trust will develop new investment portfolios benefiting from its experience of endowment assets such as the portfolio it has already acquired (Rose Tavern and others) and expanding those opportunities with more acquisition and better investment management. Discussions have already been started with some philanthropists and development banks and these opportunities will be explored further.
The Management will continue developing systems for efficient and effective implementation of its plans and gradually introducing a new culture of planning, monitoring, evaluating and reporting as well as ensuring greater transparency and rigorous accountability.
The Trust has been exploring ways of commissioning bid writers and will actively explore new funding and investment opportunities to sustain adequate income streams whilst ensuring reduction of any wastage and losses through focused management of its assets and revenues.
The Trust’s TQC subsidiary’s operations will be reviewed and revenues monitored to maintain a high level of service and profitability. The assets and facilities of the Trust will continue to be a profitable source of income and will be continuously reviewed to enhance the assets and ensure a sustainable income stream for the organisation well into the future.
The key remit of the Trust has always been Education and Training, and management will enhance the focus for more provision, with better grants and funding, of education, training and research. The Trust will need to connect with successful academic institutions, partner, cooperate and work together with like-minded and motivated organisations to serve the communities and society. The Trust will be guided by its motto to Inspire-Serve-Promote individuals for the welfare of community and serenity of society.
Page 10
**The Muath Trust**
## **(A company limited by guarantee)**
## **Trustees' report (continued)**
**For the year ended 31 December 2023**
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
## **Auditors**
The auditors, Dains Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion regarding the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
**----- Start of picture text -----**
___________________________
**----- End of picture text -----**
**Mr Kassim Mohamed Salem Ahmed**
Trustee
> Date: 12.09.2024
Page 11
**The Muath Trust**
## **(A company limited by guarantee)**
## **Independent Auditors' Report to the Members of The Muath Trust**
## **Opinion**
We have audited the financial statements of The Muath Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2023 and of the Group's 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 Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
## **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 Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 12
**The Muath Trust**
**(A company limited by guarantee)**
## **Independent Auditors' Report to the Members of The Muath Trust (continued)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company 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 in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
Page 13
**The Muath Trust**
**(A company limited by guarantee)**
## **Independent Auditors' Report to the Members of The Muath Trust (continued)**
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such 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 Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditors' 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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charity and to the group through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity and the group, including the financial reporting legislation, Companies Act 2006, taxation legislation, anti-bribery, employment, and environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Page 14
**The Muath Trust**
## **(A company limited by guarantee)**
## **Independent Auditors' Report to the Members of The Muath Trust (continued)**
We assessed the susceptibility of the the charitable company’s and the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the charitable company’s and the group's legal advisors.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 15
**The Muath Trust**
## **(A company limited by guarantee)**
## **Independent Auditors' Report to the Members of The Muath Trust (continued)**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Andrew Morris FCA (Senior statutory auditor)**
for and on behalf of
## **Dains Audit Limited**
Statutory Auditor Chartered Accountants
Birmingham
Date: 1 2 / 0 9 / 2 0 2 4
Page 16
## **The Muath Trust**
## **(A company limited by guarantee)**
## **Consolidated Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2023**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
**Total income**
**Expenditure on:**
Raising funds
8
Charitable activities
9
**Total expenditure**
**Net income/(expenditure)**
Taxation
Transfers between funds
19
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
19
Net movement in funds
**Total funds carried forward**
19|**Unrestricted**
**funds**
**2023**
**£**
**16,064**
**821,185**
**1,128,035**
**129**
**1,965,413**
**1,028,084**
**1,047,296**
**2,075,380**
**(109,967)**
**(6,622)**
**(32,106)**
**(148,695)**
**9,132,831**
**(148,695)**
**8,984,136**|**Restricted**
**funds**
**2023**
**£**
**209,583**
**459,258**
**-**
**-**
**668,841**
**-**
**677,043**
**677,043**
**(8,202)**
**-**
**32,106**
**23,904**
**137,439**
**23,904**
**161,343**|**Total**
**funds**
**2023**
**£**
**225,647**
**1,280,443**
**1,128,035**
**129**
**2,634,254**
**1,028,084**
**1,724,339**
**2,752,423**
**(118,169)**
**(6,622)**
**-**
**(124,791)**
**9,270,270**
**(124,791)**
**9,145,479**|Total
funds
2022
£
817,452
1,313,686
1,195,625
94
3,326,857
1,077,276
1,709,633
2,786,909
539,948
(705)
-
539,243
8,731,027
539,243
9,270,270|
|---|---|---|---|---|
The notes on pages 21 to 45 form part of these financial statements.
Page 17
## **The Muath Trust**
## **(A company limited by guarantee) Registered number: 04805117**
## **Consolidated balance sheet**
## **As at 31 December 2023**
|**Note**
**Fixed assets**
Tangible assets
14
Investment property
15
**Current assets**
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**248,567**
**1,649,269**
**1,897,836**
**(302,066)**|**2023**
**£**
**6,906,995**
**642,714**
**7,549,709**
**1,595,770**
**9,145,479**
**161,343**
**8,984,136**
**9,145,479**|283,830
1,516,393
1,800,223
(220,739)|2022
£
7,048,072
642,714|
|---|---|---|---|---|
|||||7,690,786
1,579,484|
|||||9,270,270|
|||||137,439
9,132,831|
|||||9,270,270|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
___________________________
**Mr Kassim Mohamed Salem Ahmed** Trustee
## Date: 12.09.2024
The notes on pages 21 to 45 form part of these financial statements.
Page 18
## **The Muath Trust**
## **(A company limited by guarantee) Registered number: 04805117**
## **Charity Balance sheet**
## **As at 31 December 2023**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
16
Investment property
15
**Current assets**
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
**Total funds**|**1,402,972**
**1,300,802**
**2,703,774**
**(246,585)**|**2023**
**£**
**6,547,652**
**301**
**183,400**
**6,731,353**
**2,457,189**
**9,188,542**
**161,343**
**9,027,199**
**9,188,542**|1,369,339
1,264,764
2,634,103
(169,150)|2022
£
6,678,223
301
183,400|
|---|---|---|---|---|
|||||6,861,924
2,464,953|
|||||9,326,877|
|||||137,439
9,189,438|
|||||9,326,877|
The Charity's net movement in funds for the year was £(138,335) (2022 - £518,136).
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
___________________________
## **Mr Kassim Mohamed Salem Ahmed**
Trustee
## Date: 12.09.2024
The notes on pages 21 to 45 form part of these financial statements.
Page 19
## **The Muath Trust**
## **(A company limited by guarantee)**
## **Consolidated statement of cash flows**
**For the year ended 31 December 2023**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
21
**Cash flows from investing activities**
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
22|**2023**
**£**
**161,844**
**-**
**(28,968)**
**(28,968)**
**132,876**
**1,516,393**
**1,649,269**|2022
£
288,751
1,099
(11,635)
**(10,536)**
**278,215**
1,238,178
1,516,393|
|---|---|---|
The notes on pages 21 to 45 form part of these financial statements
Page 20
**The Muath Trust**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **1. General information**
The Muath Trust is a private charitable company limited by guarantee and registered in England and Wales. Its company and charity registered numbers and registered office address are shown on page 1 of these financial statements. Its principal activities and charitable aims are set out in the Trustees' Report.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Muath Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and all of its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Company status**
The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
## **2.3 Going concern**
The Group’s charitable activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees' Report.
The Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. Thus they have concluded that it is reasonable to continue to prepare the financial statements on a going concern basis.
Page 21
**The Muath Trust**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **2. Accounting policies (continued)**
## **2.4 Income**
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 income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared 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.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
Page 22
**The Muath Trust**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **2. Accounting policies (continued)**
## **2.5 Expenditure (continued)**
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Taxation**
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Page 23
**The Muath Trust**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.
Depreciation is provided on the following bases:
|Freehold property|- 2% straight-line on buildings|
|---|---|
|Long-term leasehold property|- 2% straight-line on buildings|
|Motor vehicles|- 20% reducing balance|
|Fixtures and fittings|- 20% reducing balance|
|Office equipment|- 20% straight-line|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.
## **2.9 Investment property**
Investment properties are measured initially at cost and subsequently measured at fair value at the reporting date, except where that property is rented to another group entity. The fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Depreciation is not provided on investment property measured at fair value. Changes in fair value are recognised in the Consolidated statement of financial activities.
## **2.10 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.11 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.12 Cash at bank and in hand**
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.
Page 24
**The Muath Trust**
## **(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **2. Accounting policies (continued)**
## **2.13 Liabilities and provisions**
Liabilities 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.
Liabilities 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.
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 in the Consolidated statement of financial activities as a finance cost.
## **2.14 Financial instruments**
The Group 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.
## **2.15 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.
## **2.16 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.17 Employee benefits**
Termination benefits do not provide the Group with future economic benefits. As a result, these benefits are recognised immediately in the Consolidated statement of financial activities once the Group is demonstrably committed to terminate employment.
Page 25
**The Muath Trust**
## **(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **2. Accounting policies (continued)**
## **2.18 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group 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.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Critical accounting estimates and areas of judgement**
In the application of the Group’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.
Critical accounting estimates and assumptions:
In the view of the Trustees in applying the accounting policies adopted, no estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
Critical areas of judgement:
## **Depreciation**
The Trustees have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate given the activities of the charity.
Page 26
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **4. Income from donations and legacies**
|Mosque donations
Other donations in support of the trust
Mosque donations
Capital donations
Other donations in support of the trust|**Unrestricted**
**funds**
**2023**
**£**
-
16,064
16,064
Unrestricted
funds
2022
£
-
537,000
13,030
550,030|**Restricted**
**funds**
**2023**
**£**
209,583
-
209,583
Restricted
funds
2022
£
200,887
-
66,535
267,422|**Total**
**funds**
**2023**
**£**
**209,583**
**16,064**
**225,647**|
|---|---|---|---|
||||Total
funds
2022
£
200,887
537,000
79,565
817,452|
Page 27
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **5. Income from charitable activities**
|Education & Training
Project Grant Funding
Nursery Fees & Childrens Centre
AAS & Tahfeedh
Conference & Units Hire
Residential Accommodation
Education & Training
Project Grant Funding
Nursery Fees & Childrens Centre
AAS & Tahfeedh
Conference & Units Hire
Residential Accommodation|**Unrestricted**
**funds**
**2023**
**£**
51,825
-
10,550
353,853
243,888
161,069
821,185
Unrestricted
funds
2022
£
57,133
185,183
10,021
251,540
169,840
114,502
788,219|**Restricted**
**funds**
**2023**
**£**
-
459,258
-
-
-
-
459,258
Restricted
funds
2022
£
-
525,467
-
-
-
-
525,467|**Total**
**funds**
**2023**
**£**
**51,825**
**459,258**
**10,550**
**353,853**
**243,888**
**161,069**
**1,280,443**|
|---|---|---|---|
||||Total
funds
2022
£
57,133
710,650
10,021
251,540
169,840
114,502
1,313,686|
Page 28
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **6. Income from other trading activities**
## **Income from non charitable trading activities**
||**Unrestricted**|**Total**|Total|
|---|---|---|---|
||**funds**|**funds**|funds|
||**2023**|**2023**|2022|
||**£**|**£**|£|
|Trading subsidiary income|1,128,035|**1,128,035**|1,195,625|
## **7. Investment income**
||**Unrestricted**|**Total**|Total|
|---|---|---|---|
||**funds**|**funds**|funds|
||**2023**|**2023**|2022|
||**£**|**£**|£|
|Bank interest|129|**129**|94|
Page 29
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **8. Expenditure on raising funds**
## **Consolidated trading subsidiary expenditure**
|Staff costs
Trading expenses
Depreciation
Staff costs
Trading expenses
Depreciation|**Unrestricted**
**funds**
**2023**
**£**
800,280
217,298
10,506
1,028,084
Unrestricted
funds
2022
£
886,609
180,639
10,028
1,077,276|**Total**
**funds**
**2023**
**£**
**800,280**
**217,298**
**10,506**
**1,028,084**|
|---|---|---|
|||Total
funds
2022
£
886,609
180,639
10,028
1,077,276|
Page 30
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **9. Analysis of expenditure by activities**
|Operational Services
Operational Services|**Direct costs**
**2023**
**£**
1,052,385
Direct costs
2022
£
1,283,511|**Grants paid**
**2023**
**£**
60,105
Grants paid
2022
£
(84,083)|**Support**
**costs**
**2023**
**£**
611,849
Support costs
2022
£
510,205|**Total**
**funds**
**2023**
**£**
**1,724,339**|
|---|---|---|---|---|
|||||Total
funds
2022
£
1,709,633|
## **Analysis of direct costs**
|Staff costs
Operational services|**Total**
**funds**
**2023**
**£**
**971,524**
**80,861**
**1,052,385**|Total
funds
2022
£
1,202,028
81,483
1,283,511|
|---|---|---|
Page 31
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **9. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Depreciation
Premises expenses
Vehicles and travel
Insurance
Office administration
Bank charges
Governance
Loss on sale of fixed assets|**Total**
**funds**
**2023**
**£**
**159,539**
**308,779**
**7,947**
**41,730**
**49,373**
**6,628**
**37,853**
**-**
**611,849**|Total
funds
2022
£
161,657
232,756
7,380
24,634
43,964
5,578
25,627
8,609
510,205|
|---|---|---|
Page 32
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **10. Analysis of grants**
|Grants to delivery partners
Grants to delivery partners|**Grants to**
**Institutions**
**2023**
**£**
60,105
Grants to
Institutions
2022
£
(84,083)|**Total**
**funds**
**2023**
**£**
**60,105**
Total
funds
2022
£
(84,083)|
|---|---|---|
The Group has made/(cancelled) the following grants to institutions during the year:
|**Name of institution**
Northstar Community and Economic Development Services Ltd
Ashiana Community Project
Narthex, Sparkhill|**2023**
**£**
**24,626**
**35,479**
**-**
**60,105**|2022
£
595
64,185
(148,863)
(84,083)|
|---|---|---|
The grants have been made to partners in delivering two European Social Fund (ESF) projects in the local community aimed at catalysing skills development and increasing employment prospects.
Grants previously awarded to Narthex were cancelled in the prior year due to their underdelivery and subsequent withdrawal from the partner network.
Page 33
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **11. Auditor's remuneration**
||**2023**|2022|
|---|---|---|
||**£**|£|
|Fees payable to the Group's auditor for the audit of the Group's annual financial|||
|statements|**14,575**|13,250|
|Fees payable to the Group's auditor in respect of:|||
|Tax compliance services|**1,650**|1,800|
|All non-audit services not included above|**850**|750|
## **12. Staff costs**
|Wages and salaries
Social security costs
Pension costs|**Group**
**2023**
**£**
**1,659,306**
**91,840**
**20,658**
**1,771,804**|Group
2022
£
1,947,948
106,407
34,282
2,088,637|**Company**
**2023**
**£**
**916,183**
**45,353**
**9,988**
**971,524**|Company
2022
£
1,134,213
58,295
9,520|
|---|---|---|---|---|
|||||1,202,028|
The average number of persons employed by the Charity during the year was as follows:
||**Group**|Group|**Company**|Company|
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||**No.**|No.|**No.**|No.|
|Staff|**154**|190|**103**|135|
No employee received remuneration amounting to more than £60,000 in either year.
The amount of employee benefits received key management personnel for their services to the charity totalled £56,344 (2022 - £78,134).
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year, no expenses were reimbursed to Trustees (2022 - £NIL).
Page 34
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **14. Tangible fixed assets**
## **Group**
|**Cost**
At 1 January 2023
Additions
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
At 31 December 2023
**Net book value**
At 31 December 2023
At 31 December 2022|**Freehold**
**property**
**£**
**1,663,547**
**-**
**1,663,547**
**384,038**
**33,271**
**417,309**
**1,246,238**
1,279,509|**Long-term**
**leasehold**
**property**
**£**
**6,976,933**
**-**
**6,976,933**
**1,281,305**
**118,659**
**1,399,964**
**5,576,969**
5,695,628|**Motor**
**vehicles**
**£**
**-**
**7,670**
**7,670**
**-**
**1,534**
**1,534**
**6,136**
-|**Fixtures and**
**fittings**
**£**
**641,889**
**21,298**
**663,187**
**580,454**
**13,455**
**593,909**
**69,278**
61,435|**Office**
**equipment**
**£**
**168,649**
**-**
**168,649**
**157,149**
**3,126**
**160,275**
**8,374**
11,500|**Total**
**£**
**9,451,018**
**28,968**
**9,479,986**|
|---|---|---|---|---|---|---|
|||||||**2,402,946**
**170,045**
**2,572,991**|
|||||||**6,906,995**|
|||||||7,048,072|
Page 35
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **14. Tangible fixed assets (continued)**
## **Company**
|**Cost**
At 1 January 2023
Additions
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
At 31 December 2023
**Net book value**
At 31 December 2023
At 31 December 2022|**Freehold**
**property**
**£**
**1,233,859**
**-**
**1,233,859**
**316,073**
**24,677**
**340,750**
**893,109**
917,786|**Long-term**
**leasehold**
**property**
**£**
**6,976,933**
**-**
**6,976,933**
**1,281,305**
**118,659**
**1,399,964**
**5,576,969**
5,695,628|**Motor**
**vehicles**
**£**
**-**
**7,670**
**7,670**
**-**
**1,534**
**1,534**
**6,136**
-|**Fixtures and**
**fittings**
**£**
**641,889**
**21,298**
**663,187**
**580,454**
**13,455**
**593,909**
**69,278**
61,435|**Office**
**equipment**
**£**
**159,089**
**-**
**159,089**
**155,715**
**1,214**
**156,929**
**2,160**
3,374|**Total**
**£**
**9,011,770**
**28,968**
**9,040,738**|
|---|---|---|---|---|---|---|
|||||||**2,333,547**
**159,539**
**2,493,086**|
|||||||**6,547,652**|
|||||||6,678,223|
As required by National Westminster Bank, there is a legal charge over the long-term leasehold property to provide security in the event of a breach of the banking agreement with this entity.
Page 36
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
|**15.**
**Investment property**
**Group**
**Valuation**
At 1 January 2023
At 31 December 2023
**Charity**
**Valuation**
At 1 January 2023
At 31 December 2023|**Freehold**
**investment**
**property**
**£**
**642,714**|
|---|---|
||**642,714**|
||**Freehold**
**investment**
**property**
**£**
**183,400**|
||**183,400**|
The investment property was valued by the trustees on an open market for existing use basis.
Under the historical cost accounting rules, the carrying value of the investment property would have been:
|Historical cost
Accumulated depreciation|**Group**
**2023**
**£**
**669,314**
**(75,158)**
**594,156**|Group
2022
£
669,314
(61,772)
607,542|**Charity**
**2023**
**£**
**210,000**
**(47,600)**
**162,400**|Charity
2022
£
210,000
(43,400)
166,600|
|---|---|---|---|---|
Page 37
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **16. Fixed asset investments**
|||**Investments**|
|---|---|---|
||**in subsidiaries**||
|**Charity**||**£**|
|**Cost**|||
|At 1 January 2023||**301**|
|At 31 December 2023|||
|||**301**|
|See note 27 for details concerning the subsidiary undertakings.|||
## **17. Debtors**
|Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Grants receivable|**Group**
**2023**
**£**
**48,491**
**-**
**10,043**
**27,136**
**162,897**
**248,567**|Group
2022
£
107,708
-
9,757
27,603
138,762
283,830|**Company**
**2023**
**£**
**26,649**
**1,210,966**
**1,456**
**1,004**
**162,897**
**1,402,972**|Company
2022
£
38,617
1,190,518
438
1,004
138,762|
|---|---|---|---|---|
|||||1,369,339|
Page 38
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **18. Creditors: Amounts falling due within one year**
|Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2023**
**£**
**134,731**
**6,622**
**63,658**
**11,900**
**85,155**
**302,066**|Group
2022
£
161,955
705
13,764
9,876
34,439
220,739|**Company**
**2023**
**£**
**127,115**
**-**
**53,716**
**7,280**
**58,474**
**246,585**|Company
2022
£
154,581
-
-
6,058
8,511|
|---|---|---|---|---|
|||||169,150|
At the balance sheet date, the Group was holding £Nil (2022 - £1,019) of income received in advance for care services.
Page 39
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **19. Statement of funds**
**Statement of funds - current year**
|**Unrestricted**
**funds**
**Designated**
**funds**
Reserves
Fixed assets
**General funds**
General funds
**Total**
**Unrestricted**
**funds**
**Restricted funds**
Community
projects
Mosque fund
International
donations -
Tahfeedh
**Total of funds**|**Balance at 1**
**January**
**2023**
**£**
**75,000**
**7,690,786**
**7,765,786**
**1,367,045**
**9,132,831**
**-**
**137,439**
**-**
**137,439**
**9,270,270**|**Income**
**£**
**-**
**-**
**-**
**1,965,413**
**1,965,413**
**367,908**
**209,583**
**91,350**
**668,841**
**2,634,254**|**Expenditure**
**£**
**-**
**(159,539)**
**(159,539)**
**(1,915,841)**
**(2,075,380)**
**(358,915)**
**(226,778)**
**(91,350)**
**(677,043)**
**(2,752,423)**|**Taxation**
**£**
**-**
**-**
**-**
**(6,622)**
**(6,622)**
**-**
**-**
**-**
**-**
**(6,622)**|**Transfers**
**in/(out)**
**£**
**-**
**18,462**
**18,462**
**(50,568)**
**(32,106)**
**-**
**32,106**
**-**
**32,106**
**-**|**Balance at 31**
**December**
**2023**
**£**
**75,000**
**7,549,709**
**7,624,709**|
|---|---|---|---|---|---|---|
|||||||**1,359,427**|
|||||||**8,984,136**|
|||||||**8,993**
**152,350**
**-**
**161,343**|
|||||||**9,145,479**|
Page 40
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
**For the year ended 31 December 2023**
## **19. Statement of funds (continued)**
**Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Reserves
Fixed assets
**General funds**
General funds
**Total Unrestricted funds**
**Restricted funds**
Community projects
Mosque fund
International donations -
Tahfeedh
**Total of funds**|Balance at
1 January
2022
£
75,000
7,860,545
7,935,545
604,959
8,540,504
-
190,523
-
190,523
8,731,027|Income
£
-
537,000
537,000
1,996,968
2,533,968
525,468
200,886
66,535
792,889
3,326,857|Expenditure
£
-
(170,266)
(170,266)
(1,770,670)
(1,940,936)
(525,468)
(253,970)
(66,535)
(845,973)
(2,786,909)|Taxation
£
-
-
-
(705)
(705)
-
-
-
-
(705)|Transfers
in/(out)
£
-
(536,493)
(536,493)
536,493
-
-
-
-
-
-|Balance at
31 December
2022
£
75,000
7,690,786
7,765,786|
|---|---|---|---|---|---|---|
|||||||1,367,045|
|||||||9,132,831|
|||||||-
137,439
-
137,439|
|||||||9,270,270|
Designated funds comprise reserves set aside by the charitable company only for use with prior approval from the Board and unrestricted amounts tied up in fixed assets.
Restricted funds comprise grant funding for specific community projects, mosque donations and contributions from international regions for programmes as stipulated by the donors. Such funds are therefore unavailable for general use in running the Bordesley Centre.
Page 41
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **20. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Investment property
Current assets
Creditors due within one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Investment property
Current assets
Creditors due within one year
**Total**|**Unrestricted**
**funds**
**2023**
**£**
6,906,995
642,714
1,706,493
(272,066)
8,984,136
Unrestricted
funds
2022
£
7,048,072
642,714
1,662,784
(220,739)
9,132,831|**Restricted**
**funds**
**2023**
**£**
-
-
191,343
(30,000)
161,343
Restricted
funds
2022
£
-
-
137,439
-
137,439|**Total**
**funds**
**2023**
**£**
**6,906,995**
**642,714**
**1,897,836**
**(302,066)**
**9,145,479**
Total
funds
2022
£
7,048,072
642,714
1,800,223
(220,739)
9,270,270|
|---|---|---|---|
Page 42
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **21. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/(expenditure) as per Statement of financial activities
**Adjustments for:**
Depreciation charges
Tax charges
Loss on the sale of fixed assets
Decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**
**22.**
**Analysis of cash and cash equivalents**
Cash in hand and at bank
**23.**
**Analysis of changes in net debt**
**At 1 January**
**2023**
**£**
Cash at bank and in hand
**1,516,393**|**Group**
**2023**
**£**
**(124,791)**
**170,045**
**6,622**
**-**
**35,263**
**74,705**
**161,844**
**Group**
**2023**
**£**
**1,649,269**
**Cash flows**
**£**
**132,876**|Group
2022
£
539,243
171,685
705
8,609
82,408
(513,899)
288,751
Group
2022
£
1,516,393
**At 31**
**December**
**2023**
**£**
**1,649,269**|
|---|---|---|
Page 43
**The Muath Trust**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2023**
## **24. Pension commitments**
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £20,658 (2022 - £27,215). Contributions totalling £3,550 (2022 - £3,512) were payable to the fund at the balance sheet date and are included in other creditors.
## **25. Operating lease commitments**
At 31 December 2023 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**Group**
**2023**
**£**
**3,590**
**8,976**
**-**
**12,566**|**Group**
2022
£
3,590
10,771
1,795
16,156|**Company**
**2023**
**£**
**3,590**
**8,976**
**-**
**12,566**|Company
2022
£
3,590
10,771
1,795|
|---|---|---|---|---|
|||||16,156|
## **26. Related party transactions**
The charitable company had a net loan account balance of £1,210,966 (2022 - £1,190,518) due from its subsidiary undertakings at the balance sheet date as detailed below:
|Muath Trading Ltd
Trust Quality Care Ltd|**2023**
**£**
**917,333**
**293,633**
**1,210,966**|2022
£
917,333
273,185
1,190,518|
|---|---|---|
Movements in the loan accounts did not impact upon income or expenditure in the year aside from a £59,686 (2022 - £53,273) management charge from the charitable parent company to Trust Quality Care Ltd.
Amounts owed by the subsidiaries are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Details of key management personnel remuneration can be found in note 12.
Page 44
**The Muath Trust**
## **(A company limited by guarantee)**
## **Notes to the financial statements**
## **For the year ended 31 December 2023**
## **27. Principal subsidiaries**
The following were subsidiary undertakings of the Charity:
|**Names**|**Company**|**Principal activity**|**Class of**|**Holding**|
|---|---|---|---|---|
||**number**||**shares**||
|Trust Quality Care Ltd|09543547|Provision of care|Ordinary|100%|
|||services|||
|Muath Trading Ltd|09223310|Property rental|Ordinary|100%|
The financial results of the subsidiaries for the year were:
|**Names**|||**Net assets /**|
|---|---|---|---|
||||**(liabilities)**|
||**Income**|**Expenditure**|**31 December**|
||**2023**|**2023**|**2023**|
||**£**|**£**|**£**|
|Trust Quality Care Ltd|**1,090,581**|**(1,063,629)**|**13,257**|
|Muath Trading Ltd|**37,454**|**(23,910)**|**(56,019)**|
The subsidiaries have the same registered office address as the parent Charity and both are included in this consolidation.
Page 45