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2024-12-31-accounts

Registered number: 04805117 Charity number: 1100481

The Muath Trust

Trustees' Report and Financial Statements

For the year ended 31 December 2024

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 - 44

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 2024

Trustees Dr Dawood Abdul Malek Yaha Al-Hidabi
Mr Jaffer Mansour Mohammed Al-Shamery
Mr Nageeb Mohammed Ali
Mr Kassim Mohamed Salem Ahmed,Treasurer
Dr Yahya Al-Jalal
Mrs Faten Abdul Galil Yafai
Saeed Nasser
Mr Mohammed Abdulrahman Dabwan Saif (appointed 18 January 2024, resigned 1 May
2025)
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 Rawaad Mahyub
Independent auditor Dains Audit Limited
2 Chamberlain Square
Paradise Circus
Birmingham
B3 3AX
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 2024

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 January 2024 to 31 December 2024. 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:

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 2024

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, education, training & employment, business development, facilities management, care services, faith & cultural services and youth & community 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

2. Education, Training & Employment Department

3. Business Development Department

4. Facilities Management

Page 3

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2024

Objectives and activities (continued)

5. Community Care Services Department

6. Faith and Cultural Services

7. Youth & Community Engagement Department

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 grants amounting to £447,000 for the funding of 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.

This year saw the development and launch of the Trusts 2030 ‘Transforming Lives’ Strategy. The Strategy was launched at our Community Iftar on 14th March 2024 attended by community members, staff, volunteers and other stakeholders from the City Council, WM Police and NHS Trust.

Our 2030 vision is to build a welcoming, aspirational and thriving community based on values of trust, service, excellence and accountability. The mission of the Trust is to support individuals and strengthen families to reach their full potential.

Page 4

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2024

Achievements and performance (continued)

The Strategy outlines three key strategic objectives and six key focus areas as follows:

3 key objectives:

Six focus areas:

  1. Welfare and social mobility

  2. Health and wellbeing

  3. Community engagement

  4. Youth services

  5. Research and development

  6. Advocacy and voice

The internal enablers include:

The second part of 2024 saw the drafting of the Annual Action Plan for 2025 based on departmental plans to deliver the strategy and monitor its progress with quarterly reviews.

b. Review of activities

1. Education, Training & Employment

The department developed a new initiative called ‘The skill up team’ to deliver key interventions for the community. On one of the consortium projects we worked on we managed to exceed the target set for registered clients by over 300%. In 2024 we delivered 7 different cohorts of ESOL classes, workshops and events. We have received a lot of positive feedback from our service users and from our partners on the effectiveness of these initiatives. The Jobs fair held in October was successful attracting 13 exhibitors and over 80 participants.

The Trust continues to provide a range of services to support the economic and social welfare of the communities. This includes advising those seeking employment and aiding those seeking career enhancement.

Page 5

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued)

For the year ended 31 December 2024

Achievements and performance (continued)

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.

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, such as for the over 50s.

Page 6

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued)

For the year ended 31 December 2024

Achievements and performance (continued)

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:

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:

The Trust has also continued to support the Amanah Football Club (AFC) by providing facilities for their meetings, training, and functions.

This year we also launched the ‘Amanah Warm Spaces’ project providing open access to our centre 2 days a week, where community members can come and use Wifi, charge phones, have hot and cold drinks as well as hot soup and meet other people in a warm and safe environment.

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.

Page 7

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2024

Achievements and performance (continued)

Volunteering:

Volunteering is a key pillar of the 2030 strategy. We are looking at developing our volunteering offer, especially with the youth programmes.

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.

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.

As at 31 December 2024, consolidated funds amounted to £9,094,502 (2023 - £9,145,479) comprising restricted funds of £243,068 (2023 - £161,343), designated funds of £7,743,444 (2023 - £7,624,709) and unrestricted general funds, equivalent to the free reserves of the group, of £1,107,990 (2023 - £1,359,427). £7,668,444 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 three 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.

Page 8

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2024

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.

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 comprised of 8 members throughout the year, administer the company. The board meets at least four times a year to evaluate the work, share ideas and agree on future strategy. In addition, there are a number of sub-committees including a Safeguarding Committee, Finance and Audit Committee, the Mosque Committee and Schools Governing Committee, that meet more frequently and report back to the board of Trustees. The Management Committee no longer exists. 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.

Page 9

The Muath Trust

(A company limited by guarantee)

Trustees' report (continued)

For the year ended 31 December 2024

Structure, governance and management (continued)

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.

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 Trust will endeavour to deliver on its 2030 ‘Transforming Lives’ Strategy, launched in March 2024, with annual action plans prioritising young people, families and refugees and newly arrived communities.

The Trust will develop new investment portfolios benefiting from its experience of endowment assets such as the portfolio (Rose Tavern and others) it already acquired and expanding those opportunities with more acquisition and better investment. Discussions have already been started with some philanthropists and development banks and these will be explored further.

The management will continue developing systems for efficient and effective implementation of its plans and gradually introducing new cultures of planning, monitoring, evaluating and reporting and 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, losses through focused management of the assets and revenues.

The Trust has the TQC subsidiary whose operations will be reviewed and revenues monitored to maintain a high level of service. The assets and facilities of the Trust can make a real profitable source of income and will be continuously reviewed to enhance the assets and ensure sustainable income stream for the organisation.

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 2024

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

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:

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_________
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Mr Kassim Mohamed Salem Ahmed

Trustee - Treasurer, Chair of the Finance and Audit Committee

Date: 15 September 2025

Page 11

The Muath Trust

(A company limited by guarantee)

Independent Auditor's 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 2024 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 Auditor's 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 Auditor's 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:

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:

Page 13

The Muath Trust

(A company limited by guarantee)

Independent Auditor's 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

Page 14

The Muath Trust

(A company limited by guarantee)

Independent Auditor's 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:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 Auditor's report.

Page 15

The Muath Trust

(A company limited by guarantee)

Independent Auditor's 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 Auditor's 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

15 September 2025

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 2024

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
2024
£
77,510
806,920
1,222,837
1,661
2,108,928
1,121,578
1,201,905
2,323,483
(214,555)
-
81,853
(132,702)
8,984,136
(132,702)
8,851,434		 Restricted
funds
2024
£
265,364
446,559
-
-
711,923
-
548,345
548,345
163,578
-
(81,853)
81,725
161,343
81,725
243,068		 Total
funds
2024
£
342,874
1,253,479
1,222,837
1,661
2,820,851
1,121,578
1,750,250
2,871,828
(50,977)
-
-
(50,977)
9,145,479
(50,977)
9,094,502		 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

The notes on pages 21 to 44 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 2024

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		 222,519
1,627,295
1,849,814
(423,756)		 2024
£
7,025,730
642,714
7,668,444
1,426,058
9,094,502
243,068
8,851,434
9,094,502		 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

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 - Treasurer, Chair of the Finance and Audit Committee

Date: 15 September 2025

The notes on pages 21 to 44 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 2024

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		 1,432,232
1,195,996
2,628,228
(333,495)		 2024
£
6,672,300
301
183,400
6,856,001
2,294,733
9,150,734
243,068
8,907,666
9,150,734		 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

The Charity's net movement in funds for the year was £(37,808) (2023 - £(138,335)).

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 - Treasurer, Chair of the Finance and Audit Committee

Date: 15 September 2025

The notes on pages 21 to 44 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 2024

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Purchase of tangible fixed assets
14
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
The notes on pages 21 to 44 form part of these financial statements		 2024
£
280,385
(302,359)
(302,359)
(21,974)
1,649,269
1,627,295		 2023
£
161,844
(28,968)
(28,968)
132,876
1,516,393
1,649,269

Page 20

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2024

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 2024

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 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 2024

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 2024

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 2024

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 2024

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 2024

4. Income from donations and legacies

Mosque donations
Other donations in support of the trust
Mosque donations
Other donations in support of the trust		 Unrestricted
funds
2024
£
-
77,510
77,510
Unrestricted
funds
2023
£
-
16,064
16,064		 Restricted
funds
2024
£
265,364
-
265,364
Restricted
funds
2023
£
209,583
-
209,583		 Total
funds
2024
£
265,364
77,510
342,874
Total
funds
2023
£
209,583
16,064
225,647

Page 27

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

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
2024
£
48,260
-
15,128
304,801
296,145
142,586
806,920
Unrestricted
funds
2023
£
51,825
-
10,550
353,853
243,888
161,069
821,185		 Restricted
funds
2024
£
-
446,559
-
-
-
-
446,559
Restricted
funds
2023
£
-
459,258
-
-
-
-
459,258		 Total
funds
2024
£
48,260
446,559
15,128
304,801
296,145
142,586
1,253,479
Total
funds
2023
£
51,825
459,258
10,550
353,853
243,888
161,069
1,280,443

Page 28

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted Total Total
funds funds funds
2024 2024 2023
£ £ £
Trading subsidiary income 1,222,837 1,222,837 1,128,035

Income in 2023 was wholly attributable to unrestricted funds.

7. Investment income

Unrestricted Total Total
funds funds funds
2024 2024 2023
£ £ £
Bank interest 1,661 1,661 129

Income in 2023 was wholly attributable to unrestricted funds.

Page 29

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

8. Expenditure on raising funds

Consolidated trading subsidiary expenditure

Staff costs
Trading expenses
Depreciation
Staff costs
Trading expenses
Depreciation		 Unrestricted
funds
2024
£
868,559
241,806
11,213
1,121,578
Unrestricted
funds
2023
£
800,280
217,298
10,506
1,028,084		 Total
funds
2024
£
868,559
241,806
11,213
1,121,578
Total
funds
2023
£
800,280
217,298
10,506
1,028,084

Page 30

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

9. Analysis of expenditure by activities

Operational Services
Operational Services
Analysis of direct costs
Staff costs
Operational services		 Direct costs
2023
£
1,052,385		 Direct costs
2024
£
1,157,545
Grants paid
2023
£
60,105		 Support
costs
2024
£
592,705
Support costs
2023
£
611,849
Total
funds
2024
£
1,047,602
109,943
1,157,545		 Total
funds
2024
£
1,750,250
Total
funds
2023
£
1,724,339
Total
funds
2023
£
971,524
80,861
1,052,385

Page 31

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Premises expenses
Vehicles and travel
Insurance
Office administration
Bank charges
Governance		 Total
funds
2024
£
172,411
261,199
4,912
40,319
55,943
6,830
51,091
592,705		 Total
funds
2023
£
159,539
308,779
7,947
41,730
49,373
6,628
37,853
611,849

Page 32

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

10. Analysis of grants

Grants to delivery partners
Grants to delivery partners		 Grants to
Institutions
2024
£
-
Grants to
Institutions
2023
£
60,105		 Total
funds
2024
£
-
Total
funds
2023
£
60,105

The Group has made the following grants to institutions during the year:

. Name of Institution

Northstar Community and Economic Development Services Ltd
Ashiana Community Project		 2024
£
-
-
-		 2023
£
24,626
35,479
60,105

The grants in the prior year were made to partners in delivering two European Social Fund (ESF) projects in the local community aimed at catalysing skills development and increasing employment prospects.

Page 33

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

11. Auditor's remuneration

2024 2023
£ £
Fees payable to the Group's auditor for the audit of the Group's annual financial
statements 12,815 11,650
Fees payable to the Group's auditor in respect of:
Tax compliance services 1,725 1,650
All non-audit services not included above 3,175 3,775

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 Group
2024
£
1,791,393
97,692
27,076
1,916,161		 Group
2023
£
1,659,306
91,840
20,658
1,771,804		 Charity
2024
£
981,066
50,703
15,833
1,047,602		 Charity
2023
£
916,183
45,353
9,988
971,524

The average number of persons employed by the Charity during the year was as follows:

Group Group Charity Charity
2024 2023 2024 2023
No. No. No. No.
Staff 162 154 109 103

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 £66,392 (2023 - £56,344).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year, no expenses were reimbursed to Trustees (2023 - £NIL).

Page 34

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

14. Tangible fixed assets

Group

Cost
At 1 January 2024
Additions
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Freehold
property
£
1,663,547
29,900
1,693,447
417,309
33,791
451,100
1,242,347
1,246,238		 Long-term
leasehold
property
£
6,976,933
-
6,976,933
1,399,964
118,659
1,518,623
5,458,310
5,576,969		 Motor
vehicles
£
7,670
-
7,670
1,534
1,227
2,761
4,909
6,136		 Fixtures and
fittings
£
663,187
267,159
930,346
593,909
26,114
620,023
310,323
69,278		 Office
equipment
£
168,649
5,300
173,949
160,275
3,833
164,108
9,841
8,374		 Total
£
9,479,986
302,359
9,782,345
2,572,991
183,624
2,756,615
7,025,730
6,906,995

Page 35

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

14. Tangible fixed assets (continued)

Charity

Cost
At 1 January 2024
Additions
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Freehold
property
£
1,233,859
29,900
1,263,759
340,750
25,197
365,947
897,812
893,109		 Long-term
leasehold
property
£
6,976,933
-
6,976,933
1,399,964
118,659
1,518,623
5,458,310
5,576,969		 Motor
vehicles
£
7,670
-
7,670
1,534
1,227
2,761
4,909
6,136		 Fixtures and
fittings
£
663,187
267,159
930,346
593,909
26,114
620,023
310,323
69,278		 Office
equipment
£
159,089
-
159,089
156,929
1,214
158,143
946
2,160		 Total
£
9,040,738
297,059
9,337,797
2,493,086
172,411
2,665,497
6,672,300
6,547,652

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 2024

15.
Investment property
Group
Valuation
At 1 January 2024
At 31 December 2024
Charity
Valuation
At 1 January 2024
At 31 December 2024		 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
2024
£
669,314
(88,544)
580,770		 Group
2023
£
669,314
(75,158)
594,156		 Charity
2024
£
210,000
(51,800)
158,200		 Charity
2023
£
210,000
(47,600)
162,400

Page 37

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

16. Fixed asset investments

Charity
Cost
At 1 January 2024
At 31 December 2024		 Investments in subsidiaries
£
301
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
2024
£
161,740
-
10,175
12,604
38,000
222,519		 Group
2023
£
48,491
-
10,043
27,136
162,897
248,567		 Charity
2024
£
93,990
1,286,227
1,411
12,604
38,000
1,432,232		 Charity
2023
£
26,649
1,210,966
1,456
1,004
162,897
1,402,972

18. Creditors: Amounts falling due within one year

Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2024
£
151,404
-
9,942
24,662
237,748
423,756		 Group
2023
£
134,731
6,622
63,658
11,900
85,155
302,066		 Charity
2024
£
142,768
-
-
17,622
173,105
333,495		 Charity
2023
£
127,115
-
53,716
7,280
58,474
246,585

Page 38

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

19. Statement of funds

Statement of funds - current year
Balance at 1
January
2024
£
Unrestricted funds
Designated funds
Reserves
75,000
Fixed assets
7,549,709
7,624,709
General funds
General funds
1,359,427
Total Unrestricted funds
8,984,136
Restricted funds
Community projects
8,993
Mosque fund
152,350
161,343
Total of funds
9,145,479		 Income
£
-
73,500
73,500
2,035,428
2,108,928
446,559
265,364
711,923
2,820,851		 Expenditure
£
-
(172,411)
(172,411)
(2,151,072)
(2,323,483)
(373,699)
(174,646)
(548,345)
(2,871,828)		 Transfers
in/(out)
£
-
217,646
217,646
(135,793)
81,853
(81,853)
-
(81,853)
-		 Balance at 31
December
2024
£
75,000
7,668,444
7,743,444
Unrestricted funds
Designated funds
Reserves
Fixed assets
General funds
General funds
Total Unrestricted funds
Restricted funds
Community projects
Mosque fund
Total of funds
1,107,990
8,851,434
-
243,068
243,068
9,094,502

Page 39

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

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
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

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 40

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

20. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Investment property
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior period
Tangible fixed assets
Investment property
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
7,025,730
642,714
1,606,746
(423,756)
8,851,434
Unrestricted
funds
2023
£
6,906,995
642,714
1,706,493
(272,066)
8,984,136		 Restricted
funds
2024
£
-
-
243,068
-
243,068
Restricted
funds
2023
£
-
-
191,343
(30,000)
161,343		 Total
funds
2024
£
7,025,730
642,714
1,849,814
(423,756)
9,094,502
Total
funds
2023
£
6,906,995
642,714
1,897,836
(302,066)
9,145,479

Page 41

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

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
Decrease in debtors
Increase 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
2024
£
Cash at bank and in hand
1,649,269		 Group
2024
£
(50,977)
183,624
-
26,048
121,690
280,385
Group
2024
£
1,627,295
Cash flows
£
(21,974)		 Group
2023
£
(124,791)
170,045
6,622
35,263
74,705
161,844
Group
2023
£
1,649,269
At 31
December
2024
£
1,627,295

Page 42

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2024

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 £27,076 (2023 - £20,658). Contributions totalling £15,952 (2023 - £3,550) were payable to the fund at the balance sheet date and are included in other creditors.

25. Operating lease commitments

At 31 December 2024 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		 Group
2024
£
3,590
5,386
8,976		 Group
2023
£
3,590
8,976
12,566		 Charity
2024
£
3,590
5,386
8,976		 Charity
2023
£
3,590
8,976
12,566

26. Related party transactions

The charitable company had a net loan account balance of £1,286,227 (2023 - £1,210,966) due from its subsidiary undertakings at the balance sheet date as detailed below:

Muath Trading Ltd
Trust Quality Care Ltd		 2024
£
953,883
332,344
1,286,227		 2023
£
917,333
293,633
1,210,966

Movements in the loan accounts did not impact upon income or expenditure in the year aside from a £77,304 (2023 - £59,686) management charge from the charitable parent company to Trust Quality Care Ltd, and a £30,000 management charge from the charitable parent company to Muath Trading Ltd (2023 - Nil).

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 43

The Muath Trust

(A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2024

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
2024 2024 2024
£ £ £
Trust Quality Care Ltd 1,183,598 (1,171,530) 13,257
Muath Trading Ltd 39,239 (52,408) (69,188)

The subsidiaries have the same registered office address as the parent Charity and both are included in this consolidation.

Page 44