ANNUAL REFI Fl C￿L srATEMENTS •• ,••• Madani Activities Financial Figures Auditors Report ALLAH, IN THE NAME OF ALLAH THE MOST BENEFICENT, THE MOST MERCIFUL WELCOME TO DAWAT-E-ISLAMI UK ADMINISTRATIVE DETAILS Trustees Serving During This Financial Year: Mr Khalid Nazir Mirza Mr Muhammad Jamil Mr Hassan Ali Safdar Mr Basharat Mohammad Secretary: Mr Khalid Nazir Mirza Charity Registration Number: 1110114 The charity is incorporated in England and Wales. Company Registration Number: 05441337 Registered Off ice: Maudsley Street, Bradford, BD3 9LE Auditor: Riaz Ahmed & Co Limited Registered Auditors Lord House 51 Lord Street Manchester M3 IHE CONTENTS PAGE About US 01 Chairman Statement Structure governance & Management Responsibilities of our Trustees & Management Strategic Report For Dawat-lslami Uk 10-11 Amazing facts & Our Centres 12-13 The Departments of Dawat-e-lslami Uk 14-36 Financial Review & Independent Auditor Report 37-43 Financial Statements & Report 44-68 ABOUT US Dawat-E-Islami UK is an Islamic Charitywhich was set up in 2005, to provide a range of services for the betterment of the public & local communities throughout England, Wales, Ireland and Pakistan. Since incorporating in 2005, Dawat-E-Islami UK has been continuously proving many services such as. education training, the prevention or relief of poverty, overseas aid and famine relief as well as other religious activities. Our charity work and services are not limited to one kind. Instead, Dawat-E-Islami UK helps; children and young people, elderly people, other def ined groups, and the general public / mankind. The way in which we have been helping the public over the past 16 years is through providing Human Resources, Buildings, Facilities & Open Spaces, Advocacy, Advise & Information as well as Grants to Organisations and Other Charitable Activates. DA WAT-E-ISLAMI UK ANNUAL REPORT 22-23 PG.I STATEMENT FROM CHAIRMAN OF TRUSTEES The year 2021 to 2022 was a turbulent twelve months, for everyone. However, Dawat-E-Islami UK successfully continued to grow and as such it is with great pride and pleasure that l once again present Dawat-E-Islami's Annual Report and Financial Statements for the f inancial year of 2021 to 2022. A year full of challenges and tribulations for people, business and charities alike due to the coronavirus-19 pandemic, through which we saw dramatic changes across the nation. However, by the unwavering support and great efforts f rom our volunteers and employees of Dawat-E-Islami UK we still managed to make it a success, by pulling managed to make it a success, by pulling together. As disaster had struck the nation, our trustees, managers and employees were working hard to implement changes to continue the work, as we adapted in ways which we never thought possible. Looking back, we not only managed to have a successful year but also helped benef it the public in the thousands through our coronavirus relief work. Through this and many other projects Dawat~E-Islami UK'S income in 2022 to 2023 exceeded £16.9 million, showing the continued steady growth of our charity and the unwavering support of all those who donated open heartedly and generously. However, as there was much despair, there was just as much optimism. Our employees and volunteers in our local branches across the UK, continued to organise a range of programmes and events online. ANNUAL REPORT 22-23 PG.2 However, as there was much despair, there was just as much optimism. Our employees and volunteers in our local branches across the UK, continued to organise a range of programmes and events online. Adapting the use of social media, we are now able to continue offering our weekly gatherings online as well as promoting the continuous welfare projects, being carried out across the world. This annual trustee report is a tribute to all the employees, volunteers and most importantly our generous donors for their loyalty and generous support. We will highlight all the works of Dawat-E-Islami UK that have been carried during this year as well as the f inancial figures. Once again, I would like to thank each one of you who have given their continued support, everyone f rom our employees and volunteers to all our generous donors. Thanks to your efforts, your Dawat-E-Islami is growing every day to provide you with the best service possible. CHAIRMAN OF TRUSTEES, (KHALID NAZIR MIRZA) ANNUAL REPORT 22-23 PG.3 STRUCTURE, GOVERNANCE AND MANAGEMENT BOARD OF TRUSTEES: WELCOMING AND TRAINING TRUSTEES: We provide a comprehensive induction process and give ongoing training in new or emerging areas of responsibility. This enables us to ensure we benefit f rom a professional and appropriate Board. All new trustees receive a full overview of the strategic and operational functions, as well as a welcome pack, which includes a copy of the financial statements, Board minutes, the Charity Commission guidance'The Essential Trustee and any recent publications. Further to this we also assign a mentor to help them settle into their new role. Dawat-E-Islami UK actively encourages all trustees to identify any training they may need, and our director keeps the trustees up to date with such training opportunities and changes in regulatory standards. Finally, Dawat-E-Islami UK continually evaluates the board's effectiveness by receiving regular performance reports, annual f inancial reports, plans, and budgets. The Board of Trustees directs and oversees the organisation under its statutory obligations. The Trustees of Dawat-E-Islami UK are committed and act accordingly as individuals and collectively, to promote the success of the charity in meeting its aims and objectives as set out in its governing documents and in ensuring its long-term security. The Board works hard and sets out the priorities and objectives, of the charity by focusing on strategic planning and governance. Through this, we can evaluate our performance and the progress of our work to providing educational and other services to the local communities. The board approves relevant new policies and procedures, as well as appraising the executive management team. They are also involved in making appointments to and dismissals f rom this team. Furthermore, The Board of Trustees works with its key stakeholders and makes sure that we satisfy our regulatory requirements as a charity. GOVERNING DOCUMENT: The name Dawat-E-Islami UK which is used refers to the charity which incorporated as a company limited by guarantee in England and Wales, with the governing document known as Memorandum and Articles originally dated 3rd May 2005. Dawat-E-Islami UK is also registered with the Charity Commission of England and Wales. RECRUITING AND APPOINTING TRUSTEES: Each member of our Board ofTrustees is a volunteer, chosen because they have the range of skills, knowledge, and experience that is needed to respond to key challenges the charity faces. Trustees are ANNUAL REPORT 22-23 PG.4 STRUCTURE, GOVERNANCE AND MANAGEMENT PUBLIC BENEFIT: ACHIEVEMENTS AND PERFORMANCE: From the previous f inancial year, we have managed to open a few more education centres in some major cities in the UK, which is part of our 10-year plan. Further to this, our Islamic colleges needed trained teachers, and we are now able to say that as the graduates start to leave our jamias most graduates are now working hard to f ill the needs of the local communities. Dawat-E-Islami UK is committed to developing strategic plans to make certain that we as an organisation provide maximum public benefit and achieve our strategic objectives, which fall under purposes defined by the Charities Act 2006. The trustees along with the members have drawn up a l year, 2 years, 5 years and 10-year plan ofwhat they want to achieve. The main aim is to fully utilise the facilities and buildings we already have and provide more public benef it in those areas as well as expand further in the UK to provide more facilities that will meet the objectives of the organisation and provide benef it to the local communities. REMUNERATION POLICY FOR KEY MANAGEMENT PERSONNEL: Dawat-E-Islami UK aims to employ the right people for the right job and therefore a conscious effort is made to employ highly experienced staff in key management positions who can build the capacity of the overall organisation. OBJECTIVES OF THE CHARITY: Dawat-E-Islami UK considers this necessary to ensure that its resources are maximised and that every penny spent on benef iciaries goes far in addressing their needs. The remuneration of key management personnel is approved by the Trustees and is benchmarked against the industry norms and prevailing standards. The aim and objectives of the organisation are to advance the Islamic faith for the benef it of the public per the teachings of Ahle Sunnat Wal Jamaat. Namely Dawat-E-Islami UK, through the Brelwi school of thought by following the doctrines of Shah Ahmed Raza Khan, Sheikh Abdul Haq Muhadith Dehlvi, Hazrat Syed Pir Mehr Ali Shah Golarvi and Hazrat Muhammad Ilyas Attar Qadri. Maythe blessing of Allah be upon them all. ANNUAL REPORT 22-23 PG.5 RESPONSIBILITIES OF OUR TRUSTEES & MANAGEMENT MOHAMMED BASHARAT TRUSTEE MOHAMMED JAMIL TRUSTEE & JAMIA TUL MADINA LEAD KHALID NAZIR MIRZA DIRECTOR & TRUSTEE HASSAN ALI SAFDAR TRUSTEE & LONDON REGION MANAGER MUHAMMAD URFAN NORTH WEST REGION MANAGER RAFAQAT ALI YORKSHIRE REGION MANAGER IMRAN ASHRAF SYED MUHAMMAD EAST MIDLANDS FAISAL SAMI REGION MANAGER WALES REGION MANAGER ABDUL HANAN MADANI QAFILAH LEAD DR ZEERAK NASIM DESIGNATED SAFEGUARDING LEAD IMRAN KHAN HAFEEZ UR REHMAN HUMAN RESOURCES MADRASSA TUL MADINAH LEAD LEAD SHABAB HUSSAIN FINANCE LEAD MOHAMMED TOUFEEQ COURSE & TRAINING LEAD NADEEM RAZA MADANI CHANNEL LEAD HAROON RASHEED LEGAL ADVICE LEAD ANNUAL REPORT 22-23 PG.6 RESPONSIBILITIES OF OUR TRUSTEES & MANAGEMENT QAMAR NAZIR PIOUS DEED DEPARTMENT LEAD SYED AMMAR UL HASAN SHAH SAMEER ASHRAF WEST MIDLANDS SOUTH WEST REGION MANAGER REGION MANAGER WASEEM ABBAS TRANSLATION DEPARTMENT LEAD NADEEM TAHIR EAST OF ENGLAND REGION MANAGER IMRAN RAFIQ SOUTH EAST REGION MANAGER SAQUIB KHAN CONSTRUCTION DEPT KHUDAM UL MASAJID ZUFISHAN SHUMAIR NORTH EAST REGION MANAGER "r WASEEM NAZIR NORTHERN IRELAND MANAGER HAROON RAUF SOCIAL MEDIA LEAD TASAWAR HUSSAIN TAWEEZAT ISTIKHARA LEAD MUZAMMAL HAIDER FAIZAN WEEKEND ISLAMIC SCHOOL LEAD MOHAMMED ZABBER MAKfABA TUL MADINA LEAD MUHAMMAD ATHAR ANSAR MAHMOOD OMAR RIAZ LEARN YOUR FAITH SCOTLAND STRATHCLYDE SCOTLAND CENTRAL LEAD MANAGER MANGER ANNUAL REPORT 22-23 PG.7 RESPONSIBILITIES OF OUR TRUSTEES & MANAGEMENT BOARD OF TRUSTEES: organisation and train future managers and team leaders internally. Our internal company developed leaders combine all their talents with internal familiarity and our company systems and processes, in order to further push the organisation forward through innovative projects and services to meet the overall objectives and gaols set out. The Executive Board of Dawat-E-Islami UK is made up of all the trustees and managers, who have been delegated responsibilities in their respective departments. Their role is to direct and oversee the work being carried out in their department within the organisation and carry out activities and achieve the goals of the wider organisation as a whole. The Executive Board works hard and sets out the priorities and objectives, of the charity through strategic planning and governance. TRUSTEES RESPONSIBILITIES: The Trustees of the charity are responsible for preparing the Trustees, Annual Report (including the Strategic Report) as well as the f inancial statements in accordance with all the latest applicable law and regulation. Regular meetings take place, through which we can evaluate our overall performance and the progress of our work in not only providing educational services but also other services to the local communities. Company law requires the Trustees of the organisation to prepare f inancial statements for each f inancial year. Under that law the Trustees of the organisation have prepared the f inancial statements in accordance with United Kingdom Accounting Standards, which comprises of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" as well as the applicable law known as the (United Kingdom Generally Accepted Accounting Practice). As an organisation, we are proud to promote our leadership program i.e. The Executive Team as a great incentive to attract and retain talent, as these are the people that will help carry the organisation forward. Through this, our ambitious employees see that they not only have career development opportunities but also are rewarded a position based on talent, expertise and ambition. Furthermore, through this programme we are able to build up the overall level of leadership abilities in our ANNUAL REPORT 22-23 PG.8 RESPONSIBILITIES OF OUR TRUSTEES & MANAGEMENT Under company law the Trustees must The Trustees are responsible for not approve the f inancial statements keeping all adequate accounting unless they are satisf led that they give records that are needed to show and a true and fair view of the state of the explain the charitable company's affairs of the charitable company and of transactions and disclose with the incoming resources and application reasonable accuracy at any time the of such resources, including the income f inancial position of the charitable and expenditure, of the charitable company and enable them to ensure company for that period. In preparing that the f inancial statements comply these f inancial statements, for the year with the Companies Act 2006. They are of 2021 to 2022 the Trustees are also responsible for safeguarding the required to: assets of the charitable company and hence for taking reasonable steps for the prevention and detection of f raud and other irregularities. Each Trustee in off ice at the date of the Trustees, Report is approved, conf irms that: As far as they are aware, there is no relevant audit information of which the company's independent auditors are unaware. and they have taken all the necessary steps to make themselves fully aware of any relevant audit information and establish that the company's auditors are aware of that information. The Annual Report, the Strategic Report and the Trustees, Report (including the Chair of Trustees, Statement) are approved by the Trustees of the Charity on 27th January 2024 and signed on its behalf by: Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Statement of the Recommended Practice, Known as; Accounting and Reporting by Charities (2015); Make judgments and estimates that are reasonable and prudent; State whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the f inancial statements; and Prepare the f inancial statements on the going concern basis, unless inappropriate to presume that the charitable company will continue in business. CHAIRMAN OF TRUSTEES, (KHALID NAZIR MIRZA) ANNUAL REPORT 22-23 PG.9 STRATEGIC REPORT FOR DAWAT-E-ISLAMI UK Dawat-E-Islami UK launched in 2005 with the objective to offer religious education and other key services required to the local Muslim communities. and continue to evolve over time to ensure that they remain in line with our development. Which is why the Executive Team ofthe charity, have come up with a long term plan of the future goals of the charity to achieve. The charity has grown rapidly since 2005, and whilst the fundamental vision and mission has not changed, the trustees and executive team have recognised in order to continue the work and further expand the work of the charity, it must f irst evolve. CHARITIES PRINCIPAL RISKS AND UNCERTAINTIES: Safeguarding: Our centres provides religious education to children. As such all our staff regardless of duties are DBS checked. Staff are also given safeguarding training. The Charity will strive to continue its growth, in order to provide help to as many people as it possible can. In addition to our overseas programmes, such as Qurbani we will also continue to have a focus on projects within the UK. Fire Safety: Large congregations take place in all of our buildings on a regular basis We continue to build on our successful throughout the year. Therefore, regular digital platforms in order to continue f ire, electricity and gas inspections take spreading the message and services of place and certif ications are provided. the charity but also continue to develop Our building are also kept in good state and utilise our fundraising approach. of repair, with the necessary insurances. Emergency lighting is installed, and all of our exits are fully signposted. We will continue to strive towards providing a high-quality donor experience and care service, ensuring visibility and transparency on donations and their impact. Radicalisation: All students are constantly being preached against extremism as well as this prevent training is also provided to students and staff alike. Furthermore, all of the documentation is checked and vetted by our management team. In order to deliver our strategic plans and growth targets, the charity has recognised that all aspects of the Charity's governance and operating structures will also need to be evolved ANNUAL REPORT 22-23 PG.10 STRATEGIC REPORT FOR DAWAT-E-ISLAMI UK Finally, the aims and objectives of the organisation itself does not lend themselves to extremism. Health & Safety: Physical Wellbeing of all attendees at the Centres. Risk assessment are carried out on all buildings. First Aid Training is provided to key personnel and First Aid Kits are placed in every building. Also, paediatric training is provided in all our centres. Dawat-E-Islami UK in other countries: The relationship is solely by association and it is loose confederate. The trustees, who are also the directors for the purposes of company law, present their strategic report for the year ended 31st May 2023, in compliance with the Section 414C of the Companies Act 2006. The strategic report was approved by the trustees of the charity on 27th January 2024 and signed on its behalf by: CHAIRMAN OF TRUSTEES, (KHALID NAZIR MIRZA) ANNUAL REPORT 22-23 PG.11 AMAZING FACTS & FIGURES OF DAWAT-E-ISLAMI UK 19 744 64 BRANCHES OF ISLAMIC COLLEGES IN THE UK STUDENTS ENROLLED IN OUR ISLAMIC COLLEGES MEMBER OF STAFF IN OUR ISLAMIC COLLEGES 83 5,720 343 BRANCHES OF MADRASSA TUL MADINA IN THE U STUDENTS ENROLLED IN MADRASSA TUL MADINA MEMBERS OF STAFF IN OUR MADRASSA TUL MADINA 600 EMPLOYEES IN THE YEAR 2022 - 2023 ANNUAL REPORT 22-23 PG.12 DAWAT-E-ISLAMI CENTRES ACROSS THE UK NORTH OF ENGLAND SCOTLAND Rochdale, OL12 OED Rochdale, OL12 ODZ Oldham, OL4 5JX Bolton, BL3 SAP Bolton, BL3 2BN Bury, BL9 6EB Manchester, M13 OYW Blackburn, BB2 6HD Blackburn, BBI 6NN Preston, PRI ILA Preston, PRI 4NN Accrington, BB5 OJB Accrington, BB5 OSG Lancashire, BB3 2RG Burnley, BBIO IXA Bradford, BDI 5JD Bradford, BD3 9LE Bradford, BD6 3ET Bradford, BD9 6JQ Bradford, BD9 SAB Halifax, HXI 4JX Newcastle, NE4 8TP Durham, TS18 3ET Middlesbrough, TSI 3HU Leeds. LS7 4BY Huddersf ield, HDI 5ND Rotherham, S60 2HY Sheff ield, S5 6QQ Dewsbury, WF13 3LB Glasgow, G42 8PR Glasgow, G74 3HW Glasgow, G72 7EB SOUTH OF ENGLAND Southend-on-sea, SSO 7JP Hounslow, TW3 3RP Luton, LU4 9JZ Aylesbury, HP19 8DY Slough, SL3 8LS Slough, SLI 2PH London, E15 4HJ London, E7 9HJ London, RM6 5A MIDLANDS, WEST ENGLAND 7 WALES Nottingham, NG3 7EE Birmingham, B33 8TN Walsall, WSI 3NX Derby, DE23 8LT Birmingham, Bll 4JP Newport, NP20 2GW Derby, DE23 8HT Birmingham, B9 4TA Bristol, BS16 3AF Leicestershire, LEI 2LG Birmingham, B19 3TG Warwickshire, CV6 5NJ Northamptonshire, PEI 5JJ Aston, B6 6NX Staffordshire, STI 4JR Northamptonshire, PEI 4EW Aston, B6 7EF Dudley, DYI 2DH Telford, TFI 3AY ANNUAL REPORT 22-23 PG.13 THE DEPARTMENTS OF DAWAT-E-ISLAMI UK STPJ DAR-UL-IFTA (UK) QURBANI SERVICE SELF REFLECTION MADANI INAMAT JAMIA TUL MADINA ISLAMIC COLLEGE MADANI QAFILAH SPIRITUAL TRAVEL MADANI CHANNEL ISLAMIC TV FAIZAN WEEKEND ISLAMIC SCHOOL MADRASSA TUL MADINA PRISONER REFORMATION KHUDAM UL MASAJID MADANI COURSES DEPARTMENT WEEKLY SPIRITUAL GATHERING ANNUAL REPORT 22-23 PG.14 THE DEPARTMENTS OF DAWAT-E-ISLAMI UK FUNERAL SERVICES DEPT WELFARE PROJECTS DEPT IT & SOCIAL MEDIA DEPARTMENT YOUTH WORK DEPARTMENT TRANSLATION DEPARTMENT SPIRITUAL CURE DEPARTMENT SPECIAL NEEDS DEPARTMENT HUMAN RESOURCE DEPT FINANCE DEPARTMENT ANNUAL REPORT 22-23 PG.15 DAR-UL-IFTA SHARIAH CONSULTATION DARUL. IFTA AHLE SUNNAT DAWAT- E - ISLAMI Dawat-E-Islami UK is not only committed to following all UK Legal requirements when it comes to the running of the charity but also follows Islamic Sharia Law. As such, all-important decisions to be taken are reviewed and approved by "Dar-ul-lfta" (Shariah Consultation Department) which is a department consisting of the highest learned scholars. The job of this department is to make sure all decisions and actions of the charity are not only under the UK Law but also, with the Islamic Jurisprudence. Furthermore, the process of Shariah guidance continues beyond the scope of internal affairs as Dar-ul-lfta 'Ahl-e-Sunnah also provides Islamic rulings and guidance to the general public. Efforts are continuously being made to help come up with solutions to problems the general public may be facing. Therefore to make this department easily accessible to the people of the whole UK, this service can be accessed through letters, e-mail and WhatsApp, as well as visiting in person to our UK Dar-ul-lftah Head Off ice in Bradford, UK. The chain of Shariah guidance through national as well as international phone numbers continues at regular intervals. Praise be to Allah. Dar-ul- lfta 'Ahl al-sunnah is a fully functioning department. ANNUAL REPORT 22-23 PG.16 DAWAT-E-ISLAMI UK QURBANI SERVICES Qurbani means sacrifice and every year during the Holy Islamic month of Dhul Hijjah, all Muslims around the world slaughter an animal- a goat, sheep, cow or camel - to reflect the Prophet Ibrahim's willingness to sacrif ice his son, Ismail, for the sake of Allah. Performing Qurbani during this holy month is obligatory for all Muslims. As such, Dawat-E-Islami UK has been able to make it easy for Muslims across the UK by providing this service for thousands of people, every year. We have been carrying out Qurbani projects since 2005 benef itting over two million people. The animals were all sacrificed in Pakistan where we have a good relationship, and the meat was distributed amongst the poor and needy in the country. Compared to the figures of the previous f inancial year Dawat-E-Islami UK performed, Cow Share: 16,141 = 2,305 Cows, Goat: 1,632 more Qurbanis this year, showing a steady growth in the department and service provided to all Muslims across the UK. Those who received the Qurbani meat include widowed women, orphaned children, refugees and poor, elderly or disabled people. For the majority of these people, meat is not part of their regular diet. The Qurbani meat allows some families to eat meat after a whole year. Further to this, when underprivileged families receive Qurbani meat, it fosters a real sense of hope for them and allows them to celebrate this important occasion ANNUAL REPORT 22-23 PG.17 MADRASA TUL MADINAH LEARNING THE QURAN In Madrasa-Tul-Madinah, young children are taught how to read the Holy Quran with correct articulation, along with fundamental Islamic Studies. Many children who are studying with us go on to memorise the Holy Quran under the guidance and supervision of this signif icant department. Currently, Madrasa-Tul-Madinah has 94 branches across the UK with approximately 6943 students (Boys and Girls) studying f ree of charge in these institutions, every week and also 401 staff members. Dawat-E-Islami UK has implemented its best policy structure in Madrasa-Tul-Madinah. As such this department, has strict policies with regards to safeguarding, learning programmes and students, progress reporting, ongoing appraisals, and teachers, tests. Madrasah Tul Madina just like the rest of our departments was able to make a swift transition to online teaching in order to make sure our students learning was not effected by the pandemic. Therefore, we have decided to make this a permanent option for parents and children who wish to learn the Holy Quran but are unable to attend classes. Our online Madrassah Tul Madina is proving to be a popular option for many students. tr4• ariL • Ja ANNUAL REPORT 22-23 PG.18 SELF REFLECTION (NEIK AMAAL) The focus of this department is all about, Self-Rectif ication, spiritual and moral character building. The pondering upon your daily actions to enable you to rectify yourself and to lead your life according to the teachings of Quran and Sunnah. These are provided for brothers and sisters, and are f illed in daily with intention to improve themselves not only f rom a spiritual point of view but also to improve ones character. By f illing in the Self Reflection form, it gives people a chance to reflect on how they dealt with certain situations such as; If someone was inappropriate with you, how did you respond? Did you respond back in an angry manner or did you control your anger as Islam teaches us? Were we polite and respectful when communicating with others? These are just some of the daily self-accountability questions one must reflect upon, and to make a conscious effort to ponder to improve one's moral character and subsequently safeguarding ones Hereafter. The l.T. department of Dawat-E-Islami UK has developed a mobile application in order to make people bound of Sharia rulings and lead their daily routine according to it. In this application, you will f ind 72 Good Deeds for Islamic Brothers, 63 for Islamic Sisters and 92 for Male Students. This application is available in 6 different languages English, Urdu, Hindi, Bangla, Gujarati And Sindhi. Submit your performance with NEIK AMAAL MOBILE APP and assess youp peligious activities. 4 V••ath4 11**1, o•0• lj ANNUAL REPORT 22-23 PG.19 MADANI CHANNEL (ISLAMIC TV) Madani Channel is a 24-hour satellite and internet TV Channel (Sky 746) which provides educational and social guidance for humanity based on Islamic principles. Its programmes are broadcasted in mainly English however, other languages such as Urdu, Arabic and Bangla is available for those who are not literate in English. Madani Channel transmits across six satellites which cover several continents. Also, live internet streaming is available f rom Dawat-E-Islami's website and social media platforms. ,1+; vvvvvvv. As well as this, Dawat-E-Islami's IT department has also developed both desktop and mobile applications to enable streaming of Madani Channel f rom anywhere in the world with access to the internet. MADANICHANNEL ENGLISH LIVE . Programmes on Madani Channel are based on religious, ethical, and social reformation of the human character. They focus on the Islamic belief system and jurisprudence, harmonising worldly affairs with religion, socio-economic reforms, and healthy lifestyle. Madani Channel is completely f ree of commercial advertisements and is funded by the generous donations of Muslims across the UK and internationally.. ANNUAL REPORT 22-23 PG.20 JAMIA TUL MADINA UK ISLAMIC COLLEGE Jamia-tul-madina is an Islamic Institute that provides extensive courses for students to become English Speaking Islamic Scholars (Ulama). There are two full-time courses available a f ive-year course for sisters and a six-year course for Brothers. TUL MADINAH ° The Jamia-tul-madina curriculum has a wide range of modules studied, which consists of Arabic, Logic, Inheritance Law, Islamic Jurisprudence, Hadith Studies, Quranic Commentary, Rhetoric and Philosophy. The aims of this department is to. produce a generation of independent English Speaking Islamic scholars to lead the community in every matter. In order to help increase the number of people that can access this course and study the department made the decision to create a part-time study course, which is a total of seven years of study. Ju This has proven quite well, as the response was very positive and a high number of students have enrolled and a currently studying. Approximately, over 950 students male and female are currently studying a full-time and part time course in our 28 branches located across the UK. ANNUAL REPORT 22-23 PG.21 MADANI QAFILAH (OUTREACH WORK) Madani Qaf ila is a f rontline department of Dawat-E-Islami UK that persuades Islamic brothers to travel away from their homes to learn the fundamental knowledge of Islam and impart it to others. If anyone wishes to see the mission of Dawat-E-Islami UK in action they should participate in the Madani Qaf ilah. The average number of participants is at least 7 people usually staying in a Masjid for at least 3 days. In this duration, they have the opportunity to pray f ive times a day with Jama'at (congregational prayer), learn a great deal of obligatory Islamic Knowledge as well as invite locals to join and learn the teachings of Islam. This department of Dawat-E-Islami UK was having a positive growth as we had also started youth retreats aimed at the younger audience in order to help them learn and connect with the religion of Islam. IJ li ANNUAL REPORT 22-23 PG.22 FAIZAN WEEKEND ISLAMIC SCHOOL (FWIS) Dawat-E-Islami UK has opened a new department Faizan Weekend Islamic School (FWIS), which was created to enable children to gain basic Islamic knowledge, something that may be missing f rom their general weekday school environment. These classes run over the weekend for two and a half hours. As such, the target audience is children aged between 6-14 years. The Syllabus created focuses upon the following areas: Fundamentals of Islam, Seerah, Sunnah and Dua, Good manners and Character building. Furthermore, the structure of this educational service is split into different levels helping cover relevant knowledge based on age groups, which is as follows: E¥4] 11,wJi Level l: 6 to 7 Year Olds Level 2: 8 Year Olds Level 3: 9 Year Olds Olds Level 5: 11 Year Olds Level 6: 12 to 14 Year Olds Level 4: 10 Year However, just like the rest of our other educational department, FWIS, also made a transition to online and this had proven to have more of a success for this department than physical classes. In total we have 350 students learning islamic and other educational modules every weekend, which is why this department is now also online as we can provide this service and benefit to more of the public in the United Kingdom. ANNUAL REPORT 22-23 PG.23 ANNUAL REPORT 22-23 PG.24 FUNERAL SERVICE DEPARTMENT Collection, Cold Storage, Ghusal, Shrouding, Coff in, Janazah, Transportation, Burial & Family Support. All of this is provided for f ree by Dawat-E-Islami UK. We are proud to offer a 24-hour funeral service, to the local Muslim community f ree of charge providing a range of services, we offer Janazah Salaah Service at any of our mosques, Full Administrative Service, Collection of the deceased in one of our purpose-built chiller, Liaison with the doctor and coroner's off ice as well as the cemetery. Furthermore, we offer a full ghusal service and transport in our off icial Dawat-E-Islami funeral hearse f rom/to home, hospital, coroner's, cemetery and Dawat-E-Islami's Funeral Service building. We also offer accommodation for both ladies and gents on the day of the funeral, and lastly offer after support, such as completion of documents and emotional support for the bereaved family. It is with a heavy heart to say that out of all of our department's, our funeral service department across the UK was the busiest. As we all know the Covid-19 pandemic had taken many lives of which many muslims were worried as to how their loved ones funeral will take place under such circumstances. However, our funeral team across the UK volunteered to become trained in provide Covid safe funerals and facilities for Muslims across the UK. We had even set up temporary funeral sites in order to facilitate for the needs of the communities during this diff icult period. A big condolence goes out to those who lost loved ones and a big thank you goes out to those who supported this initiative by this department Blllllll, , DAWAT-E-ISLAMI UK WEEKLY GATHERINGS One of if not the key way Dawat-E-Islami UK has grown over the years is through our Weekly Sunnah Inspired Gatherings. Every Thursday at 8 pm across the whole United Kingdom Dawat-E-Islami UK'S centres are f illed with people who are attending the weekly spiritual gathering, where various topics are discussed, helping people to seek guidance and Islamic knowledge. The great benef it of having a weekly spiritual gathering is amidst the challenges and responsibilities people have within the modern-day world, people across the UK join us every week to nurture their connection and closeness with Islam, discover the Prophetic ways and purify their hearts f rom spiritual diseases. ,Il 111 111 I 111 Every week topics are discussed based on Pure Islamic teachings as well as discussing key issues within the local communities, which help to guide them in how to balance their worldly affairs alongside Islam. As well as, how to tackle problems in their communities and how to be a key part of society. ANNUAL REPORT 22-23 PG.25 KHUDDAM-UL-MASAJID (BUILD A MASJID) Dawat-E-Islami UK is a "Movement for enlivening Masajids" As such the Khuddam-ul-masajid Department of Dawat-E-Islami UK is working hard to help build Masajids in areas where they are most required. The department has been assigned the task of shortlisting all the areas where the Masajids are most required. After which they then coordinate with the internal construction department to prioritise and build the Masajids in those areas. Over the years Khuddam-ul-masajid has built many Masajids in those areas where it is needed the most. Such as areas where there is no Masajid or the Masajid is too far away to access for the local community or even the current Masajid built is inadequate in size. In recent years, Dawat-E-Islami UK has recognised opportunities where we can build purpose-built mosques in order to meet the needs of the local community. In the f inancial year of 2022 to 2023 there were many Masajids that were being constructed across the UK. ONllTI ,ON POINT ,Nnw COllECTINQIIXITSIDftIIIII!I f,.;. ,SE51FPW,.. I DONATION POINT,HOW COIIECTINQIAKAT FAIZAN E MAKKAH NOW OPEN TO PUBLIC FOR 5 DAILY PRAYER JUMMAH NAMAZ AT 1.30PM 07878 694224107888658149 CAR PlfRK ENTRANCE • d-l ￿+>. 411 ROFT WALK9 MSLEY WALK NOS ANNUAL REPORT 22-23 PG.26 YOUTH EDUCATION WORK (DEPARTMENT) The Youth Education Department of Dawat-E-Islami UK has been set to actively work with schools, colleges, and university students across the United Kingdom. Regular events are held for the students on various topics and the invitation towards righteousness is presented. Many key issues and topics are covered with these students that they face on a regular basis and the feedback received show us that students f ind the events motivational, inspirational, and educational which helps them develop their Islamic identity. Some key topics which have been discussed are Knife crime, Harms of Drugs, Dangers of Speeding, Harms of Anger, Harmful effects of social media and Hatred and Bullying. These are just to name a few. The works of this department has gained great recognition f rom local police, f ire and ambulance services as well as local governments. As such, Dawat-E-Islami UK now works closely with these bodies to help deliver key topics to tackle community issues. As well as this, Dawat-E-Islami UK works closely with these youngsters in community projects such as litter picking. swers WRNE with a pen? yuu C￿,1 do Wud am hear ANNUAL REPORT 22-23 PG.27 PRISONER REFORM PROGRAMME Dawat-E-Islami UK'S executive team founded a need to start reformation work in our prisons across the UK. As such, this department was set up and has been running for quite a few years with great success. The representatives of this department of Dawat-E-Islami UK is tasked with the role of visiting various jails and prisons and spending time with inmates of different backgrounds. The aim of such meetings is the reformation of prisoners in such a way that when they are released f rom prison, they can live as law-abiding citizens who will make a positive contribution to the local community and society as a whole. Many ex-convicts have been reformed through the efforts of the Prisoner Reform department and are now contributing positively to their return to society. Dawat-E-Islami UK also arranges courses for prisoners through which they can gain basic education and life skills, which help them avoid reoffending upon release. Many of them have joined Dawat-E-Islami UK in its noble cause and now actively volunteer in the different works of Dawat-E-Islami UK. ANNUAL REPORT 22-23 PG.28 DAWAT-E-ISLAMI UK (TRANSLATION DEPARTMENT) This valuable department consists of Ulama (Scholars) of Dawat-E-Islami UK who are responsible for providing authentic Islamic literature on a wide range of topics accessible to people across the UK by translating Authentic Islamic literature f rom other languages to English. This Department has translated Islamic books written in Arabic, Persian, Urdu etc. for English readers to help make it easy for them to understand. To organise and carry out work effectively, this department is further broken down into 16 sub-departments, these are: Ala Hazarat Department | Department for Critical Review Books | Translation Department | Faizan-e-Quran Department | Faizan-e-sahaba and Ahl-e-Bait |Ameer-e-Ahl-e-Sunnat Department | Faizan-e-Auliya and Ulama | Booklets Department | Reforming Books Department | Analysis Department | Arabic Translation Department | Faizan-e-Hadith Department | Faizan-e-sahabiaat and Saalihaat | Faizan-e-madani Muzakarah | Speeches Department | Department for Coaching and Teaching Books. Through the tireless efforts, of these learned scholars, the department has successfully translated hundreds of books, not only on the fundamental knowledge of Islam but also excellent research books. In total, the department has translated books in approximately 35 languages including French, German, Spanish, Chinese, Turkish, Bangla, Indonesian, Hindi and many more. rii Jddll ANNUAL REPORT 22-23 PG.29 SPIRITUAL CURES (DEPARTMENT) Our spiritual cures department helps provide a service to all those who are afflicted across the UK and Europe. Spiritual healing is a fundamental foundation of Islam and as such this department works hard to provide a service through spiritual healing f ree of cost. As well as this, a dedicated live programme which airs once a week has been made called Spiritual Cures, where viewers can send in problems they are facing, and solutions are provided to them straightaway. To help to make this service easily accessible to all, stalls are open in all major cities across the UK as well as in our weekly gatherings. Furthermore, this service can be accessed via email, WhatsApp, and telephone calls. Further, a call centre is also set up six days a week, 12 hours a day, to listen, console and provide a remedy and relief to all problems they may be facing. To expand the work of this department, the volunteers and employees travel several times a year to train others across the UK and Europe ANNUAL REPORT 22-23 PG.30 SPECIAL NEEDS DEPARTMENT) Since the beginning of Dawat-E-Islami UK, the goal has been to make this organisation accessible to all regardless of their background. As such, our executive team came to the realisation we will need a special needs department that solely focuses on helping those who have special needs. l.e. Dumb, Deaf, Blind and other Disabilities. Such a department was created and the primary focus is to give such people the opportunity to gain education along with other opportunities to help them progress in their lives and be a helping part of society. Furthermore, sign language courses are arranged for all the Employees, Representatives & Volunteers of Dawat-E-Islami UK to learn and be trained in sign language so that they can cater for the needs of disabled brothers and reach out to this section of society effectively. For Special Islamic Brothers, Deaf and Mute Muslims app with all the media in sign language. • Get The App ANNUAL REPORT 22-23 PG.31 IT & SOCIAL MEDIA DEPARTMENT) Dawat-E-Islami UK has always looked for opportunities for any available media that could be utilised to spread the message of the Quran and Sunnah. From radio and internet streaming to satellite broadcasting, Dawat-E-Islami UK has deployed and utilised technology to benefit Islam and Muslims across the UK. Our l.T. department has advanced system inf rastructures and qualif led professionals leaving no stone unturned in the f ield of Information and Technology to deliver the message of Islam to every corner of the world. Over the years the department has developed user-f riendly mobile and desktop apps such as; Hajj & Umrah, Islamic Books Library, Al Quran-Ul-Kareem, Madani Channel, Dar-ul-lftah Ahl-E-Sunnat, Rohani Ilaj (Spiritual Cures) and Prayer Times app. All off icial Dawat-E-Islami UK social media accounts are managed by the l.T department, which helps to not only provide an excellent service where live programmes are streamed on social media sites such as Facebook and YouTube. But also gives the general public to interact and engage with Dawat-E-Islami UK and any leading personalities. Submit your performance with NEIK AMAAL MOBILE APP and assess your religious activities. Gel The App Gel The App During this f inancial year our l.T and Social Media department was working full speed ahead, as a large portion of our departments had switched over to online and it is thanks to the hard works and efforts of this department that the work of Dawat-E-Islami UK continued throughout the pandemic. ANNUAL REPORT 22-23 PG.32 DAWAT-E-ISLAMI UK HR DEPARTMENT Dawat-E-Islami UK is committed to support and develop the skills of our employees. We encourage all of our colleagues to engage with the strategy and objectives and to give their suggestions and views on performance and strategy. We are an equal opportunities employer and are proud to recruit and promote our staff based on their aptitude and ability, without discrimination. The majority of staff benef it f rom policies focussing on training and career development as well as regular supervision. Also, all our staff irrespective of their duty are DBS checked. In house Safeguarding training has also been provided to all employees and volunteers at Level l & Level 2 safeguarding courses are provided for all staff online. Prevent courses are also provided for all, as well as FGM courses for all-female staff. Dawat-E-Islami UK has also taken on the services of MeLearning, an e-learning facility providing the courses mentioned above and more. All employees now have to take the recommended courses. The trustees how now successfully rolled this out to all appropriate volunteers. ANNUAL REPORT 22-23 PG.33 DAWAT-E-ISLAMI UK HR DEPARTMENT Help f rom volunteers, in-kind gifts: Our dedicated volunteers are the heart and soul of our operations, and we rely on them to be able to deliver our services. We have a system in place where we manage all of our volunteers. During this f inancial year, volunteers in the UK alone contributed substantial hours of work by donating their time in fulf illing the objectives of the charity, through administration, and by being involved in fundraising activities. Details totalling volunteer hours have been collated during this period and we have recorded approximately1600 hours per week given by non-aid volunteers, this includes both brothers and sisters. It is also felt that the actual f igure could be much higher this time as many volunteers have given time and it has not been recorded. Furthermore, this f igure does not include our trustees time. ANNUAL REPORT 22-23 PG.34 DAWAT-E-ISLAMI UK FINANCE DEPARTMENT The Finance Department is the key part of the organisation and is responsible for acquiring funds for the charity, managing those funds and planning for the expenditure on various assets and activities. They ensure eff icient f inancial management and f inancial control which is necessary to support all the activities that take place. Furthermore, the Head Off ice Finance Department is also responsible for creating f inancial reports and end of year accounts to meet all internal and external rules and regulations. Dawat-E-Islami UK now have Qualif led Accountants who work in helping meet all regulations and standards and to further improve the f inance department of the organisation overall. In order to make sure the organisation has enough liquidity to continue its activities, the Finance Department uses a key resource known as donation boxes. These have continued to be a very good source of our donations, as through this not only regular funding is collected but outreach work is also conducted as local donation box collectors drop off and collect these boxes f rom private residences and local businesses. This helps spread the message and gives a chance to update our donors on the works being carried out in their local community by Dawat-E-Islami UK. To maximise the use of our donation boxes, this has now become a separate department within the organisation, through which the responsible employees have found innovative ways to manage this department. To help the management of all the boxes placed across the UK a purpose-built software has been developed to monitor our boxes. For example, when was the last time a box was collected, as soon as 30 days have passed, this is put on a pickup list, how much has been raised f rom each box. ID system of each box etc, as well as creating automatic receipts for the donor and collating this into banking forms. Furthermore, the trustees worked alongside the f inance department and Madani Channel department to make use of the satellite channel to raise further funds to help pay the wages of the madrassah staff. As well as this, the f inance department has sourced and implemented new ways to help raise funds through the use of services like; World pay, Paypal, Stripe, Gocardless, donate by text, standing orders etc. ANNUAL REPORT 22-23 PG.35 ANNUAL REPORT 22-23 PG.36 DAWAT-E-ISLAMI UK FINANCE DEPARTMENT The main purpose of this is to make donating to the charity easy and accessible as possible while reducing our banking costs. In addition, we are continuing to use the Cardnet machines to enable us to raise funds local via card. We have currently got over 70 machines in use. SHABAB HUSSAIN TEHAMI AWAN USMAN AHMED ASHRAF HUSSAIN MUZAMMAL HAIDER WAJID HUSSAIN RIZWAN IJAZ MUHAMMAD FAROOQ FAISAL NAWAZ TARIQ MEHMOOD ABID HUSSAIN SOHAIL MOHAMMED FINANCIAL REVIEW ANNUAL REPORT 22-23 PG.37 FINANCIAL REVIEW OF DAWAT-E-ISLAMI UK OBJECTIVES AND POLICIES: The charity's activities expose it to a number of f inancial risks including credit risk, cash flow risk and liquidity risk. The use of f inancial derivatives is governed by the charity's policies which have been approved by the board of trustees, which provide written principles on the use of f inancial derivatives to manage these risks. The charity does not use derivative f inancial instruments for any speculative purposes. evidence of a reduction in the chances of recoverability of the cash flows. The credit risk on liquid funds and derivative f inancial instruments is limited because the counter parties are banks with high credit-ratings assigned by international credit~rating agencies. The charity has no signif icant concentration of credit risk, with exposure spread over a large number of counter parties and customers. Liquidity Risk: In order to maintain liquidity to ensure that suff icient funds are available for all ongoing operations as well as any future developments, the charity has decided to use a mixture of long-term and short-term debt f inance. Any further details regarding the liquidity risk can be found with in the Statement of accounting policies in the f inancial statements. Cash Flow Risk: The charity's activities expose it primarily to the f inancial risks of the changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.Interest bearing assets and liabilities are held at f ixed rate to ensure certainty of cash flows. Endowment Fund Is Invested On A Total Return Basis: None. On the initial value of the trust for investment was established and on the initial value of the unapplied total return was established. The credit risk of the charity is primarily The policy which is used to identify the attributable to its trade receivables. The initial amounts of the trust for amounts presented in the balance investment is: An analysis was sheet are the net of the allowances for performed in order to identify the initial doubtful receivables. amounts of the trust for investment. Credit Risk: The charity's principal f inancial assets are bank balances and cash, trade and other receivables, and investments. Any allowance for impairment is made where there is an identif led loss event which, based on previous experience, is advised the charity on a total return approach to investments. ANNUAL REPORT 22-23 PG.38 FINANCIAL REVIEW OF DAWAT-E-ISLAMI UK Funds Held As Custodian Trustee On Behalf Of Others: No funds or assets are held by trustees on behalf of the Charity. All the Charity funds and assets are held in the Charity name. work the organisational reputation overall as well as the growing memberships each year and the audience, it has a bright future. The growth is happening in a controlled and measured way and fully planned as per management capacity. The charity overall has strong reserves as well as a healthy Balance Sheet. Creditor Payment Policy: All payments are made on receipt of the goods/invoice. Policy On Reserves: The Charity has strong, unrestricted and restricted, reserves and this will ensure long time sustainability. Funds In Def icit: There is no funds in def icit. The policy of the organisation, is to not fund for any activity based on a def icit basis as all the funds are raised before the activity is commenced. Principal Funding Sources: Public donations are the main source of funding. We run special events as well as regular collections ate Fridays prayer times. We do not receive any grants or political donations. •po I•()4 U?fJ J ?gf> 73J 2 499 808 3 227 076 4 050 935 28 331 46, 49] SIE 42 69 (Jn at Investment policy and objectives: The charity only invests in the opening new centres and increasing the footprint throughout United Kingdom. Going Concern: The trustees of the organisation believe that the charity does not have any Going Concern issues. They have taken into consideration all of the charitable ANNUAL REPORT 22-23 PG.39 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DAWAT-E-ISLAMI UK OPINION: We have completed the audited of the f inancial statements of Dawat-E-Islami UK (the'charity,) for the year ended 31 May 2023, which comprises of: The Statement of Financial Activities, Balance Sheet, The Statement of Cash Flows, and The Notes to the Financial Statements, including a summary of any signif icant accounting policies. 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 within the auditor responsibilities in regards to the audit of the f inancial statements section of our report. We are independent of the charity The f inancial reporting f ramework that which is in the accordance with the has been applied in their preparation is ethical requirements that are relevant to United Kingdom Accounting our audit of the f inancial statements in Standards, comprising Charities SORP- the United Kingdom, which includes all FRS 102, The Financial Reporting of the FRC'S Ethical Standards, and the Standard (FRS) applicable in the UK provisions available for small entities, in and Republic of Ireland, and any and all the circumstances set out in note to the applicable law (United Kingdom financial statements, and we have also Generally Accepted Accounting fulf illed our other ethical responsibilities Practice). in accordance with these requirements. In our opinion the f inancial statements: We believe that the audit evidence that we have obtained is suff icient as well as Give a true and fair view of the state of appropriate to provide a basis for our the charity's affairs as at 31 May 2023 opinion. and of its incoming resources and of its application of resources, including its income and expenditure, for the year then ended; CONCLUSION RELATING TO GOING CONCERN: In auditing the f inancial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparations of all of the f inancial statements is appropriate. Have been properly prepared in accordance with United Kingdom (GAAP) also know as the Generally Accepted Accounting Practice And they have been prepared in accordance with the requirements of the Companies Act 2006. ANNUAL REPORT 22-23 PG.40 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DAWAT-E-ISLAMI UK 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 signif icant doubt on the charity's ability to continue as a going concern for a period of at least twelve months f rom when the original f inancial statements were authorised for issue. knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the f inancial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. OTHER INFORMATION: We have nothing to report in this regard. The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the f inancial statements and our auditor's report thereon. OPINION ON OTHER MArrERS PRESCRIBED BY THE COMPANIES ACT 2006: In our opinion, based on the work undertaken in the course of the audit: Our opinion on the f inancial 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. The information given in the Strategic Report and Trustees, Report for the financial year for which the f inancial statements are prepared is consistent with the f inancial statements; and The Strategic Report and Trustees, Report have been prepared in accordance with applicable legal requirements. In connection with our audit of the f inancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the f inancial statements or our ANNUAL REPORT 22-23 PG.41 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DAWAT-E-ISLAMI UK MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION: basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. In our opinion, based on the work undertaken in the course of the audit: AUDITOR RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: The information given in the Strategic Report and Trustees, Report for the f inancial year for which the f inancial statements are prepared is consistent with the f inancial statements. and Reappointment of auditor: The auditors Riaz Ahmad & Co Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006. The Strategic Report and Trustees, Report have been prepared in accordance with applicable legal requirements. Our objectives are to obtain reasonable assurance about whether the f inancial statements as a whole are f ree f rom material misstatement, whether due to f raud or error, and to issue an auditor's report that includes our opinion. RESPONSIBILITIES OF TRUSTEES: As explained more fully in the Statement of Trustees, Responsibilities (set out on page 12 and 13), the trustees are responsible for the preparation of the f inancial statements and for being satisf led that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of f inancial statements that are f ree f rom material misstatement, whether due to fraud or error. 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 f rom f raud 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 f inancial statements. The extent to which our procedures are capable of detecting irregularities, including f raud is detailed below: In preparing the f inancial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern ANNUAL REPORT 22-23 PG.42 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DAWAT-E-ISLAMI UK Detecting irregularities, including f raud. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.f rc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. USE OF OUR REPORT: CE/C This report is made solely to the charitable company's trustees, 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 charity's trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed. Riaz Ahmad (Senior Statutory Auditor) For and on behalf of Riaz Ahmad & Co Limited, Statutory Auditor >ots fesi, Lord House, 51 Lord Street, Manchester, M3 IHE Date: 27/01/2024 ANNUAL REPORT 22-23 PG.43 FINANCIAL STATEMENTS f I ur company , Receipis • Sales Orders Business items • Sales {￿erS ANNUAL REPORT 22-23 PG.44 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2023 (INCLUDING INCOME & EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES) NOTE UNRESTRICTED FUNDS RESTRICTED TOTAL FUNDS 2023£ Income and Endowments from: Donations and legacies 13,165,909 3,796,956 16,962,865 Total income 13,165,909 3,796,956 16,962,865 Expenditure on: Raising funds Charitable activities Total Expenditure Net Income Net Movement in Funds (97,963) (12,248,468) (12,526,561) 639,348 639,348 (97,963) (2,294,870) (14,723,468) (2,294,870) (14,821,431) 1,502,086 2,141,434 1,502,086 2,141,434 Reconciliation of Funds: Total Funds bought forward Total funds carried forward 19,101,867 19,741,215 5,886,624 24,988,491 7,388,710 27,129,925 20 NOTE UNRESTRICTED FUNDS£ RESTRICTED TOTAL FUNDS£ 2022 £ Income and Endowments from: Donations and legacies 11,809,961 2,724,151 14,534,112 Total income 11,809,961 2,724,151 14,534,112 Expenditure on: Raising funds Charitable activities Total Expenditure Net Income/Expenditure Net Movement in Funds (23,115) (9,537,866) (9,560,981) 2,248,980 2,248,980 (23,115) (2,616,297) (12,154,163) (2,616,297) (12,177,278) 107,854 2,356,834 107,854 2,356,834 Reconciliation of Funds: Total Funds bought forward Total funds carried forward 16,852,887 19,101,867 5,778,770 22,631,657 5,886,624 24,988,491 20 ANNUAL REPORT 22-23 PG.45 All of the charity's activities derive f rom continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 20. The notes on pages 17 to 32 form an integral part of these f inancial statements BALANCE SHEET AS AT 31ST MAY 2023 NOTE TOTAL 2023£ TOTAL 2022£ Fixed Assets: Intangible Assets Tangible Assets 12 13 36,850 26,409,959 26,446,809 40,200 17,831,464 17,871,664 Current Assets: Debtors Cash at bank and in hand 14 203,212 4,426,427 4,629,639 (155,929) 252,184 7,045,429 7,297,613 (180,786) 15 Creditors: Amounts falling due within one year Net Current Assets 16 4,473,710 30,920,519 7,116,827 24,988,491 Total assets less current liabilities Amounts falling due after more than one year NetAssets 17 (3,790,594) 27,129,925 24,988,491 Funds of the Charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds 7,388,710 5,886,624 19,741,215 27,129,925 19,101,867 24,988,491 Total Funds 20 The f inancial statements on pages 44 to 65 were approved by the trustees, and authorised for issue on 27th January 2024 and signed on their behalf by: CHAIRMAN OF TRUSTEES, (KHALID NAZIR MIRZA) ANNUAL REPORT 22-23 PG.46 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MAY 2023 NOTE TOTAL 2023£ TOTAL 2022£ Cash flows f rom operating activities: Net Cash Income 2,141,434 2,356,834 Adjustments to cash flowsf rom non-cash items: Depreciation Amortisation 138,524 3,350 133,027 3,350 2,283,308 2,493,211 Working Capital Adjustments: Decrease in debtors Increase/(decrease) in creditors Net cash flow f rom operating activities Cash flows f rom investing activities: Purchase of tangible f ixed assets Cash flows f rom f inancing activities: Repayment of loans and borrowings Net decrease in cash and cash equivalents Cash and cash equivalents at Ist June 14 48,972 24,857 2,307,423 532,725 14,912 3,040,848 16 13 (8,717,019) (3,985,132) 16 3,790,594 (2,619,002) 7,045,429 (944,284) 7,989,713 Cash and cash equivalents at 31st May 4,426,427 7,045,429 All of the cash flows are derived f rom continuing operations during the above two periods. ANNUAL REPORT 22-23 PG.47 ANNUAL REPORT 22-23 PG.48 NOTES TO THE FINANCIAL STATEMENTS I. CHARITY STATUS: The charity is limited by guarantee, Financial Reporting Standard applicable incorporated in, and consequently does in the UK and Republic of Ireland (FRS not have share capital. Each of the 102)) (issued in October 2019) (Charities trustees is liable to contribute an SORP (FRS 102)), the Financial Reporting amount not exceeding £1 towards the Standard applicable in the UK and assets of the charity in the event of Republic of Ireland (FRS 102) and the liquidation. Companies Act 2006. The address of its registered off ice is: Maudsley Street Bradford BD3 9LE BASIS OF OPERATION: Dawat-E-Islami UK meets the def inition of a public benef it entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. These f inancial statements were authorised for issue by the trustees on 14th August 2023. 2. ACCOUNTING POLICIES: Summary of significant accounting policies and key accounting estimates: Going concern: The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any signif icant areas of uncertainty that affect the carrying value of assets held by the charity. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Exemption f rom preparing a cash flow statement: STATEMENT OF COMPLIANCE: The charity opted to early adopt Bulletin I published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. influence the economic decisions of users taken on the basis of these f inancial statements. The f inancial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the ANNUAL REPORT 22-23 PG.49 NOTES TO THE FINANCIAL STATEMENTS Income and endowments: Investment income: All income is recognised once the Dividends are recognised once the charity has entitlement to the income, dividend has been declared and it is probable that the income will be notif ication has been received of the received and the amount of the income dividend due. receivable can be measured reliably. Expenditure: Donations and legacies: All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Donations are recognised when the charity has been notif led in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulf ilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulf illed in the reporting period. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Grants receivable: Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant These are costs incurred in attracting and are yet to be met, the income is voluntary income, the management of recognised as a liability and included on investments and those incurred in the balance sheet as deferred income trading activities that raise funds. to be released. Raising funds: ANNUAL REPORT 22-23 PG.50 NOTES TO THE FINANCIAL STATEMENTS Grant provisions: Taxation: Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the def inition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt f rom taxation in respect of income or capital gains received within These include the costs attributable to categories covered by Chapter 3 Part 11 the charity's compliance with of the Corporation Tax Act 2010. constitutional and statutory or Section 256 of the Taxation of requirements, including audit, strategic Chargeable Gains Act 1992, to the extent management and trustees's meetings that such income or gains are applied and reimbursed expenses. exclusively to charitable purposes. Governance costs: Government grants: Tangible f ixed assets: Government grants are recognised Individual f ixed assets costing £0.00 or based on the accrual model and are more are initially recorded at cost, less measured at the fair value of the asset any subsequent accumulated received or receivable. Grants are depreciation and subsequent classif led as relating either to revenue accumulated impairment losses. or to assets. Properties continue to beshown at Grants relating to revenue are original cost due to the especial nature recognised in income over the period in of our buildings i.e. Mosques. which the related costs are recognised. Grants relating to assets are recognised Amortisation: over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. Amortisation is provided on intangible f ixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows: Asset class: Goodwill Amortisation method and rate: 5% straight line basis. Goodwill: Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made ANNUAL REPORT 22-23 PG.51 NOTES TO THE FINANCIAL STATEMENTS Depreciation & Amortisation: Borrowings: Depreciation is provided on tangible Interest-bearing borrowings are initially f ixed assets so as to write off the cost or recorded at fair value, net of transaction valuation, less any estimated residual costs. value, over their expected useful economic life as follows:. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Trade debtors: Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at Interest expense is recognised on the the transaction price. They are basis of the effective interest method subsequently measured at amortised and is included in interest payable and cost using the effective interest similar charges. method, less provision for impairment. Borrowings are classif led as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. Foreign exchange: Cash & cash equivalents: Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid Monetary assets and liabilities investments that are readily convertible denominated in foreign currencies at to a known amount of cash and are the balance sheet date are reported at subject to an insignif icant risk of the rates of exchange prevailing at that change in value. date. ANNUAL REPORT 22-23 PG.52 NOTES TO THE FINANCIAL STATEMENTS The results of overseas operations are translated at the average rates of exchange during the period and their Unrestricted income funds are general balance sheets at the rates ruling at the funds that are available for use at the balance sheet date. trustees discretion in furtherance of the objectives of the charity. Fund structure: Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). Restricted income funds are those donated for use in a particular area or for specif ic purposes, the use of which is restricted to that area or purpose. Pensions and other post retirement obligations: Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for: The charity operates a def ined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold suff icient assets to pay all Exchange differences arising on gains employees the benef its relating to or losses on non-monetary items which employee service in the current and are recognised in other comprehensive prior periods. income" and Exchange differences on transactions entered into to hedge certain foreign currency risks (see above); Contributions to def ined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. In the case of the consolidated financial statements, exchange differences on monetary items receivable f rom or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity. ANNUAL REPORT 22-23 PG.53 NOTES TO THE FINANCIAL STATEMENTS Financial instruments: position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Classif ication: Financial assets and f inancial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when and only when: Financial liabilities and equity instruments are classif led according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. a) the contractual rights to the cash flows f rom the f inancial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the f inancial asset, or Recognition and measurement: c) the charity, despite having retained some, but not all, signif icant risks and rewards of ownership, has transferred control of the asset to another party. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those f inancial assets classif led as at Financial liabilities are derecognised fair value through prof it or loss, which only when the obligation specif led in are initially measured at fair value the contract is discharged, cancelled or (which is normally the transaction price expires. excluding transaction costs), unless the arrangement constitutes a financing transaction. Debt instruments: Debt instruments which meet the If an arrangement constitutes a following conditions are subsequently f inancing transaction, the f inancial measured at amortised cost using the asset or f inancial liability is measured at effective interest method: the present value of the future payments discounted at a market rate (a) The contractual return to the holder of interest for a similar debt instrument. is (i) a f ixed amount; (li) a positive f ixed rate or a positive variable rate; Financial assets and liabilities are only offset in the statement of f inancial ANNUAL REPORT 22-23 PG.54 NOTES TO THE FINANCIAL STATEMENTS or (iii) a combination of a positive or a negative f ixed rate and a positive variable rate. (e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not (b) The contract may provide for contingent on future events, other than repayments of the principal or the to protect the holder against the credit return to the holder (but not both) to be deterioration of the issuer or a change in linked to a single relevant observable control of the issuer, or to protect the index of general price inflation of the holder or issuer against changes in currency in which the debt instrument levies applied by a central bank or is denominated, provided such links are arising f rom changes in relevant not leveraged. taxation or law. c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisf ies condition (a) and the variation is not contingent on future events other than; (f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). (l) a change of a contractual variable rate; Debt instruments that are classif led as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising f rom changes in relevant taxation or law; or (li) the new rate is a market rate of interest and satisf ies condition (a). With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through prof it or loss. (d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment. ANNUAL REPORT 22~23 PG.55 NOTES TO THE FINANCIAL STATEMENTS Investments: The resulting gain or loss is recognised in statement of f inancial activities Investments in non-convertible immediately unless the derivative is preference shares and non-puttable designated and effective as a hedging ordinary or preference shares (where instrument, in which event the timing of shares are publicly traded or their fair the recognition in statement of f inancial value is reliably measurable) are activities depends on the nature of the measured at fair value through prof it or hedge relationship. loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. Fair value measurement: The best evidence of fair value is a Investments in subsidiaries and quoted price for an identical asset in an associates are measured at cost less active market. When quoted prices are impairment. For investments in unavailable, the price of a recent subsidiaries acquired for consideration transaction for an identical asset including the issue of shares qualifying provides evidence of fair value as long as for merger relief, cost is measured by there has not been a signif icant change reference to the nominal value of the in economic circumstances or a shares issued plus fair value of other signif icant lapse of time since the consideration. transaction took place. Any premium is ignored. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. Derivative f inancial instruments: The charity uses derivative f inancial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative f inancial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. ANNUAL REPORT 22-23 PG.56 ANNUAL REPORT 22-23 PG.57 3. INCOME FROM DONATIONS AND LEGACIES: UNRESTRICTED FUNDS GENERAL RESTRICTED FUNDS TOTAL FUNDS Donations and legacies; Donations f rom individuals 12,250,006 3,796,956 16,046,962 Gift aid reclaimed 915,613 915,613 Grants, including capital grants; Governemnents grants 290 290 Total for 2023 Total for 2022 13,165,909 11,809,961 3,796,956 2,724,151 16,962,865 14,534,112 4. EXPENDITURE ON RAISING FUNDS: A) COST OF TRADING ACTIVITIES NOTE UNRESTRICTED FUNDS GENERAL£ TOTAL FUNDS Other direct costs of activities for generating funds Total for 2023 97,963 97,963 97,963 23,115 97,963 23,115 Total for 2022 TOTAL COSTS ANNUAL REPORT 22-23 PG.58 5. EXPENDITURE ON CHARITABLE ACTIVITIES: NOTE UNRESTRICTED FUNDS GENERAL RESTRICTED FUNDS £ TOTAL FUNDS£ Grant funding of activities Governance Costs 2,294,870 2,294,870 Governance costs 12,428,598 12,428,598 Total for 2023 12,428,598 2,294,870 14,723,468 Total for 2022 9,537,866 2,616,297 12,154,163 In addition to the expenditure analysed above, there are also governance costs of £12,428,598 (2022 - £9,537,866) which relate directly to charitable activities. See note 6 for further details. 6.ANALYSIS OF GOVERNANCE AND SUPPORT COSTS GOVERNANCE COSTS: UNRESTRICTED FUNDS GENERAL TOTAL FUNDS£ Staff Costs; Wages and Salaries Social Security costs Pension costs 8,578,417 535,305 99,133 8,578,417 535,305 99,133 Audit fees, Audit of the f inancial statements 7,500 141,874 3,066,369 7,500 141,874 3,066,369 Depreciation, amortisation and other similar costs Other governance costs Total for 2023 12,428,598 12,428,598 Total for 2022 9,537,866 9,537,866 ANNUAL REPORT 22-23 PG.59 7. NET INCOMING/ouTGOING RESOURCES: Net incoming resources for the year include: 2023 2022 Audit fees Depreciation of f ixed assets Amortisation of goodwill 7,500 138,524 3,350 6,000 133,027 3,350 8. TRUSTEES REMUNERATION AND EXPENSES: No trustees, nor any persons connected with them, have received any remuneration f rom the charity during the year. No trustees have received any reimbursed expenses or any other benef its f rom the 9. STAFF COSTS The aggregate payroll costs were as follows: 2023 2022 Staff Costs; Wages and Salaries Social Security costs Pension costs 8,578,417 535,305 99,133 6,706,502 381,029 71,807 9,195 Other staff costs 9,212,855 7,168,533 The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows: Staff 2023 NO 2022 NO 600 508 No employee received emoluments of more than £60,000 during the year ANNUAL REPORT 22~23 PG.60 10. AUDITORS. REMUNERATION: 2023 2022 Audit of the f inancial statements 7,500 6,000 11. TAXATION: The charity is a registered charity and is therefore exempt f rom taxation. 12. INTANGIBLE FIXED ASSETS GOOD WILL TOTAL Cost At l June 2022 At 31 May 2023 Amortisation At l June 2022 Charge for the year At 31 May 2023 Net book value At 31 May 2023 At 31 May 2023 67,000 67,000 67,000 67,000 26,800 3,350 30,150 26,800 3,350 30,150 36,850 36,850 40,200 40,200 Development costs Development costs have been capitalised in accordance with FRS 102 Section 18 Intangible Assets other thanGoodwill and are therefore not treated as a def icit to the charity. ANNUAL REPORT 22-23 PG.61 13. TANGIBLE FIXED ASSETS LAND AND BUILDINGS £ FURNITURE AND EQUIPMENT£ MOTOR VEHICLES TOTAL Cost At l June 2022 Additions At 31 May 2023 Depreciation At l June 2022 Charge for the year At 31 May 2023 17,305,346 8,660,339 25,965,685 1,328,567 56,680 1,385,247 5 18,633,918 8,717,019 5 27,350,937 802,454 138,524 940,978 802,454 138,524 940,978 Net book value At 31 May 2023 At 31 May 2022 25,965,685 17,305,346 444,269 526,113 5 26,409,959 5 17,831,464 14. DEBTORS 2023 2022 Prepayments Other debtors 28,971 223,213 252,184 203,212 203,212 15. CASH AND CASH EQUIVALENTS 2023 2022 Cash at Bank 4,426,427 7,045,429 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Other taxation and social security Other creditors Accruals 60,845 89,684 5,400 155,929 116,605 58,181 6,000 180,786 ANNUAL REPORT 22-23 PG.62 17. CREDITORS: AMOUNTS FALLING DUE AFfER ONE YEAR 2023 Bank loans 290,374 3,500,220 Other loans 3,790,594 18. PENSION AND OTHER SCHEMES DEFINED CONTRIBUTION PENSION SCHEME The charity operates a def ined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £99,133 (2022 - £71,807). 19. SHARE CAPITAL 20. FUNDS BALANCE AT ISTJUNE 2022 INCOMING RESOURCES RESOURCES EXPENDED BALANCE AT 31 MAY 2023 Unrestricted funds General 19,101,867 13,165,909 (12,526,561) 19,741,215 Restricted funds 5,886,624 24,988,491 3,796,956 16,962,865 (2,294,870) (14,821,431) 7,388,710 27,129,925 Total funds BALANCE AT I JUNE 2021 INCOMING RESOURCES RESOURCES EXPENDED BALANCE AT 31 MAY 2022 Unrestricted funds General 16,852,887 11,809,961 (9,560,981) 19,101,867 Restricted funds 5,778,770 22,631,657 2,724,151 14,534,112 (2,616,297) (12,177,278) 5,886,624 24,988,491 Total funds ANNUAL REPORT 22-23 PG.63 Details of endowment funds invested on a total return basis are as follows: TRUST FOR INVESTMENT UNAPPLIED TOTAL RETURN TOTAL ENDOWMENT None At beginning of the reporting period: Total Movements in the reporting period: Total Net movements in reporting period At end of the reporting period: Total 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS UNRESTRICTED FUNDS GENERAL TOTL FUNDS AT 31 MAY 2023 Intangible f ixed assets Tangible f ixed assets Current assets Current liabilities Creditors over l year Total net assests 36,850 26,409,959 4,629,639 (161,929) (3,790,594) 27,123,925 36,850 26,409,959 4,629,639 (161,929) (3,790,594) 27,123,925 UNRESTRICTED FUNDS GENERAL TOTL FUNDS AT 31 MAY 2022 Intangible f ixed assets Tangible f ixed assets Current assets Current liabilities 40,200 17,831,464 7,297,613 (180,786) 40,200 17,831,464 7,297,613 (180,786) Total net assests 24,988,491 24,988,491 ANNUAL REPORT 22-23 PG.64 22. ANALYSIS OF NET FUNDS AT I JUNE 2022 FINANCING CASH FLOWS AT 31 MAY 2023 Cash at bank and in hand Net debt 7,045,429 7,045,429 7,045,429 7,045,429 AT I JUNE 2021 FINANCING CASH FLOWS AT 31 MAY 2022 Cash at bank and in hand Net debt 7,989,713 (7,989,713) 7,989,713 (7,989,713) 23. RELATED PARTY TRANSACTIONS During the year the charity made the following related party transactions: Maktaba Tul Madina (an associated company sharing same ideology) sale of books stock. At the balance sheet date the amount due from Maktaba Tul Madina was £IOO,000 (2022- £120,000). Madni Education Trust (Iqra) (an associate charity) loan of funds to assist with a bank loan. At the balance sheet date the amount due f rom Madni Education Trust (Iqra) was £71,212 (2022- £71,212). Darul Madina UK (an associate company) loan to f inance working capital. At the balance sheet date the amount due from Darul Madina UK was £112,000 (2022- £32,000). Learn Your Faith (an associate company) working capital. At the balance sheet date the amount due f rom Learn Your Faith was £31,000 (2022 - £Nil) Darul Madina Leicester (an associate company) working capital. At the balance sheet date the amount due f rom Darul Madina Leicester was £4,000 (2022- £Nil). Darul madina London (an associate company) working capital. At the balance sheet date the amount due f rom Darul madina London was £2,000 (2022- £Nil). ANNUAL REPORT 22-23 PG.65 STATEMENT OF FINANCIAL ACTIVITIES BY FUND FOR THE YEAR ENDED 31 MAY 2023 UNRESTRICTED FUNDS TOTAL UNRESTRICTED FUNDS 2023 TOTAL UNRESTRICTED FUNDS 2022 Income and Endowments from: Donations and legacies Total income Expenditure on: Rasing funds Charitable activities 13,165,909 13,165,909 11,809,961 11,809,961 (97,963) (12,428,598) (12,526,561) 639,348 639,348 (23,115) (9,537,866) (9,560,981) 2,248,980 2,248,980 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds brought forward 19,101,867 16,852,887 19,741,215 19,101,867 STATEMENT OF FINANCIAL ACTIVITIES BY FUND FOR THE YEAR ENDED 31 MAY 2023 RESTRICTED FUNDS TOTAL RESTRICTED FUNDS 2023 TOTAL RESTRICTED FUNDS 2022 Income and Endowments from: Donations and legacies Total income Expenditure on: Charitable activities 3,796,956 3,796,956 2,724,151 2,724,151 (2,294,870) (2,616,297) Total expenditure Net income (2,294,870) 1,502,086 (2,616,297) 107,854 Net movement in funds 1,502,086 107,854 Reconciliation of funds Total funds brought forward Total funds carried forward 5,886,624 5,778,770 7,388,710 5,886,624 ANNUAL REPORT 22-23 PG.66 DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2023 TOTAL 2023 TOTAL 2022 Income and Endowments from: Donations and legacies (analysed below) 16,962,865 14,534,112 Total income Expenditure on: Rasing funds (analysed below) Charitable activities (analysed below) Total expenditure Net income 16,962,865 14,534,112 (97,963) (23,115) (14,723,468) (12,154,163) (14,821,431) 2,141,434 2,141,434 (12,177,278) 2,356,834 2,356,834 Net movement in funds Reconciliation of funds Total funds brought forward 24,988,491 22,631,657 Total funds carried forward 27,129,925 24,988,491 ANNUAL REPORT 22-23 PG.67 DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2023 TOTAL 2023 TOTAL 2022 Donations and legacies Appeals and donations Appeals and donations Appeals and donations Gift Aid tax reclaimed UK Government grants 3,796,956 12,250,006 915,613 290 2,724,151 11,017,584 358,215 434,162 16,962,865 14,534,112 Raising funds Consumable tools (97,963) (97,963) (23,115) (23,115) Charitable activities Charitable donations Wages and salaries Staff NIC (Employers) Staff pensions (Def ined contribution) pension scheme I Casual wages Staff training Rent and rates Rent Rates Water rates Light, heat and power Insurance Repairs and maintenance Telephone and fax Computer software and maintenance costs Printing, postage and stationery Sundry expenses Cleaning Motor expenses Travel and subsistence Advertising Accountancy fees The audit of the charity's annual accounts Legal and professional fees Bank charges Credit card charges Amortisation of goodwill Depreciation of f ixtures and f ittings Depreciation of off ice equipment Human Resources Costs Staff Welfare (2,294,870) (8,465,290) (535,305) (99,133) (32,940) (1,848) (267,684) (90,192) (67,002) (617,017) (190,350) (1,277,979) (28,513) (2,616,297) (6,463,947) (381,029) (71,807) (242,555) (9,195) (159,384) (64,425) (56,353) (304,786) (152,057) (1,157,830) (54,298) (10,123) (23,188) (5,087) (18,200) (12,026) (19,418) (58,133) (25,200) (4,034) (121,106) (42,831) (28,523) (7,200) (6,000) (56,997) (105,817) (10,662) (3,350) (120,918) (12,109) (7,500) (44,283) (179,552) (31,227) (3,350) (126,415) (12,109) (37,531) (42,656) (14,723,468) (12,154,163) END OF ANNUAL REPORT ANNUAL REPORT 22-23 PG.68 2023 | CHARITY DETAILS: Chatity Number: 1110114 Company Number: 05441337 ANNUAL REPORT www.dawateislami.co.uk