- **MIRZA SHARIF** MIRZA SHARIF **AHMAD** AHMAD
- **FOUNDATION** FOUNDATION
# ANNUAL REPORT
For the Year Ended 30 September 2024
## **TABLE OF CONTENTS**
|03|TRUSTEES & ADVISORS|TRUSTEES & ADVISORS|TRUSTEES & ADVISORS|TRUSTEES & ADVISORS|TRUSTEES & ADVISORS|
|---|---|---|---|---|---|
|04|TRUSTEES’ REPORT|||||
||||||OUR ACTIVITES|
||||||FINANCIAL REVIEW|
||||||CORPORATE GOVERNANCE|
|09|STATEMENT OF TRUSTEES' RESPONSIBILITIES|||||
|10|RISK & INTERNAL CONTROL|RISK & INTERNAL CONTROL||||
|12|RESERVES & INVESTMENT|||||
|15|INDEPENDENT AUDIT REPORT|||||
|22|STATMENT OF FINANCIAL ACTIVITES|||||
|23|STATEMENT OF FINANCIAL POSITION|||||
|24|STATEMENT OF CASH FLOWS|||||
|25|NOTES TO THE FINANCIAL STATEMENTS|||||
## _TRUSTEES & ADVISORS_
## **BOARD OF TRUSTEES**
Dr Chaudhry Nasir Ahmad- **Chairman** Shajar Ahmad Farooqi **(FCA)** Mirza Mahmood Ahmad Zaheer Ahmed Choudhry Fateh Ahmad Khan Dahri
## **COMPANY SECRETARY**
Shajar Ahmad Farooqi **(FCA)**
RSM UK Audit LLP
**INDEPENDENT AUDITOR**
Chartered Accountants & Statutory Auditors Davidson House, Forbury Square, Reading, Berkshire, RG1 3EU, United Kingdom
## **SOLICITORS**
Bishop & Sewell LLP 59-60 Russell Square, London, WC1B 4HP, United Kingdom
## **BANKERS**
National Westminster Bank Plc. 2nd Floor G3, 2 Cathedral Hill, Guildford, GU1 3ZR, United Kingdom
Tahir House 22 Deer Park Road, London, SW19 3TL, United Kingdom
## **REGISTERED/ PRINCIPAL OFFICE**
Tel: +44 (0) 208 544 7602 / 7627-8 Fax: +44 (0) 208 542 8896
Email: info@msaf.org.uk Web: www.msaf.org.uk
## **CHARITY NO.**
1115258
## **COMPANY NO.**
05689730
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## _TRUSTEES’ REPORT_
The Trustees (who are also directors of the Charity for the purpose of the Companies Act) are pleased to present their report together with the financial statements of the Charity for the year. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity's governing document, the Companies Act 2006, the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (2019).
Mirza Sharif Ahmad Foundation (MSAF) (Charity) is a charitable company limited by guarantee, incorporated on 27th January 2006 and governed by its Memorandum and Articles of Association of the same date.
The Trustees are solely responsible for the decision-making process. Based on this, they are considered to be the Charity's key management personnel.
Under the terms of the guarantee, each member has agreed to contribute £1 in the event that the Charity is wound up.
## **PUBLIC BENEFIT**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing Charity's aims and objectives (as set out above) and in planning future activities and setting appropriate policies for the year.
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## _TRUSTEES’ REPORT (CONTINUED)_
## **OUR OBJECTIVES**
The objects for which the Charity is established are as follows:
The advancement of the Muslim faith worldwide as expounded by Hadhrat Mirza Ghulam Ahmad of Qadian, the Promised Messiah and the Founder of the Ahmadiyya Movement and interpreted by his successor known as Khalifatul Masih. The present Khalifatul Masih is Hadhrat Mirza Masroor Ahmad Khalifatul Masih V;
The advancement of religious and secular education;
The advancement of education, in particular in the field of scientific research and learning;
The relief of those in financial need, hardship and distress;
The relief of sickness and those in poor health;
The relief and assistance of people in any part of the world who are the victims of war or other conflicts, natural disasters, trouble, or catastrophe;
Holding, managing and dealing with property which shall include (amongst other things) to improve, manage, construct, repair, develop, exchange, let on or lease, mortgage, charge, sell, dispose of, turn to account, grant licenses, options, rights and privileges in respect of, or otherwise deal with, all or any part of such property.
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## _TRUSTEES’ REPORT (CONTINUED)_
## **OUR ACTIVITIES**
Our activities are as follows:
- The propagation of Islam worldwide;
- The building of mosques, hospitals and schools;
- Scientific research and development;
- The award of scholarships for higher education;
- The provision of emergency relief in cases of natural disasters; and
- Assistance to the deserving and needy.
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## _FINANCIAL REVIEW_
## **Income**
The Charity has been reliant on income from Ahmadiyya Muslim Jamaat International, which amounted to £2,643k during the year to 30th September 2024 (30th September 2023, £2,346k).
## **Borrowing**
The Charity has had an increase in borrowing to £4,562k (30th September 2023, £2,877k) from Ahmadiyya Muslim Jamaat International as a social investment which was invested mainly in the Islamabad redevelopment project and in 13 other properties (30th September 2023, 11 properties).
## **Expenses**
£3,396k was expended on the charitable objectives during the year 2024 (30th September 2023, £2,560k).
## **Lease of Islamabad Tilford (UK)**
On 1st January 2022, Mirza Sharif Ahmad Foundation signed a lease agreement with Ahmadiyya Muslim Jamaat International in relation to Islamabad property. Under this agreement, Mirza Sharif Ahmad Foundation acted as the landlord, while Ahmadiyya Muslim Jamaat International is the tenant for a 99-year lease for a premium of £33 million GBP.
## **Achievements & Performance**
The Board is proud to announce that the Charity has successfully achieved its objective of advancement of the Muslim faith by providing free residential accommodation to ministers of religion through 32 properties acquired so far.
## **Future Plans**
The main objectives for future periods are to continue supporting the advancement of the Muslim faith by providing residence to religious scholars and scholarships for higher education.
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## _CORPORATE GOVERNANCE_
The governing body of MSAF is the Board of Trustees, which comprises five members. The Board formally met twice during the year and twice after the yearend, but the Trustees often meet informally.
Potential Board members are selected from the worldwide Ahmadiyya Muslim Community. The existing Board then considers its existing skill and experience requirements to ensure that potential Trustees are recruited to maintain a balanced range of professional, academic, and necessary skills and experience.
The induction process for any newly-appointed trustee comprises an initial meeting with the trustees, followed by a review of the grant-making process, powers, and responsibilities of the Board.
Information supplied as part of the introduction process includes copies of the latest Board minutes, a copy of the latest annual report and financial statements, a copy of the Memorandum and Articles of Association, and a copy of the Charity Commission's guidance " _The Essential Trustee: What you need to know, what you need to do"._
On an ongoing basis, Trustees are encouraged to attend seminars and conferences about sector issues and matters relevant to the Charity.
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## _STATEMENT OF TRUSTEES' RESPONSIBILITIES_
## **IN RELATION TO THE FINANCIAL STATEMENTS**
The Charity Trustees _(who are also the directors of the company for the purposes of company law)_ are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (the United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity Trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charity for that period.
In preparing the financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charities SORP; Make judgments and estimates that are reasonable and prudent; State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement.
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the Charity's financial position and enabling them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for maintaining the integrity of the corporate and financial information on the charitable company's website.
The Trustees are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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## _RISK & INTERNAL CONTROL_
The Trustees are responsible for ensuring that the Charity has an appropriate system of controls, financial and otherwise. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reassurance that:
- Its assets are safeguarded against unauthorised use or disposition;
- Proper records are maintained, and financial information used within the Charity or for publication is reliable; and
The Charity complies with relevant laws and regulations.
As part of the Charity's risk management process, the trustees acknowledge their responsibility for the Charity's system of internal control and review its effectiveness. The Trustees also recognise that such a system is designed to manage rather than eliminate the risk of failure to achieve the Charity's objectives and can only provide reasonable, not absolute, reassurance against material misstatement or loss.
The Trustees have set policies on risk and internal controls, which cover the following:
- The responsibility of management to implement the trustees' policies and identify and evaluate risks for their consideration on an ongoing basis;
- Consideration of the type of risks the Charity faces;
- The level of risks that they regard as acceptable;
- The likelihood of the risks concerned materialising;
- The costs of operating particular controls relative to the benefit obtained; and
- The Charity's ability to reduce the incidence and impact on the business of risks that do materialise;
- Arrangements for monitoring and reporting on risk and control matters of importance, together with details of corrective action being undertaken.
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## _RISK & INTERNAL CONTROL_
A summary of the Trustees' consideration of the major risks to which the Charity is exposed, together with the management of those risks, is as follows:
## **RISK**
Income is not available from funding.
## **APPROACH**
MSAF to provide properties to Ahmadiyya Muslim
Community, and in return, the Community would ensure
any related costs are met.
## **RISK**
Properties in the portfolio may get damaged.
## **APPROACH**
MSAF has taken out full insurance cover – the properties are maintained and supervised to a high standard and regularly reviewed.
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## _RESERVES & INVESTMENT_
## **RESERVES**
At present, any excess of income over expenditure is retained as unrestricted funds unless received as part of a specific grant or designated to a specific purpose by the trustees.
The balance on undesignated reserves as at 30th September 2024 is £49k (30th September 2023, £356k).
The balance on designated social investment funds as at 30th September 2023, is £9,443k (30th September 2023, £9,320k). This balance has been designated to reflect the external investment by a third party.
It is the Trustees' policy to establish a level of reserves sufficient to enable the Charity to operate as a going concern. This policy objective is specifically to ensure the Charity could cover one year's worth of grants payable from reserves, which for 2023 would equate to £287k.
## **INVESTMENT**
Investment decisions are taken by the Board of Trustees, and funds are invested in properties.
## **SOCIAL INVESTMENT**
The Charity has borrowed funds from Ahmadiyya Muslim Jamaat International for objectives similar to those of MSAF. This is to help the poor and needy and provide a reasonable standard of accommodation.
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## _RESERVES & INVESTMENT_
## **GRANTMAKING POLICIES**
The Trustees award grants to other charities with similar objectives and the Ahmadiyya Muslim Community both in the UK, where they are most needed, having first been assessed by the Trustees on a case-by-case basis. As a result, grants are made to institutions and individuals to ensure that work is done on all our objectives throughout the period. The grant application process is designed to be as easy as possible whilst still drawing out the key information needed for a decision.
## **PLANS FOR THE FUTURE**
We aim to establish a robust portfolio of properties that offers sustainable and economical housing options to our organisation's employees. Our goal is to expand our property holdings to meet the increasing demand because we believe that housing is more than brick and mortar.
To achieve this, we, on a continuous basis, search the market for suitable properties and invest resources to acquire them. Our focus is not only on expanding our portfolio but also on maximising community satisfaction. Our enlightened strategies allow us to support the well-being of our community by spending conscientiously.
## **AUDITOR**
RSM UK Audit LLP has indicated its willingness to continue in office.
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## _STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR_
The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees has confirmed that they have taken all the steps they should have taken as trustees to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved and authorised for issue by the Board of Trustees and signed on its behalf on ______________________ by: 26 June 2025
**Shajar Ahmad Farooqi FCA Trustee/Secretary Mirza Sharif Ahmad Foundation**
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## _INDEPENDENT_
## _AUDITOR’S REPORT TO THE MEMBERS OF MSAF_
## **OPINION ON FINANCIAL STATEMENTS**
We have audited the financial statements of Mirza Sharif Ahmad Foundation (MSAF) (the 'charitable company') for the year ended 30th September 2024 which comprise the Statement of Financial Activities (incorporating an income and expenditure account), the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).
## **IN OUR OPINION THE FINANCIAL STATEMENTS:**
Give a true and fair view of the state of the charitable company's affairs as at 30th September 2024 and of the company's incoming resources and application of resources, including its income and expenditure, for the year then ended;
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
Have been prepared in accordance with the requirements of the Companies Act 2006.
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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## _AUDITORS’ REPORT (CONTINUED)_
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
## **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.
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## _AUDITORS’ REPORT (CONTINUED)_
## **OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the Trustees' Report, which includes the Directors' Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The Directors' Report included within the Trustees' Report have been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Trustees’ Report.
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## _AUDITORS’ REPORT (CONTINUED)_
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Statement of Trustees' responsibilities set out on page 7, 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 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 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.
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## _AUDITORS’ REPORT (CONTINUED)_
## **THE EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD**
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non- compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the sector, including the legal and regulatory framework that the charitable company operates in and how the charitable company are complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
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## _AUDITORS’ REPORT (CONTINUED)_
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company's governing document and tax legislation.
We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees' Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council's website at:
## **http://www.frc.org.uk/auditorsresponsibilities**
This description forms part of our auditor's report.
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## _AUDITORS’ REPORT (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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Kerry Gallagher (Senior Statutory Auditor)**
For and on behalf of RSM UK AUDIT LLP, Statutory Auditor, Chartered Accountants, Davidson House, Forbury Square, Reading, Berkshire, RG1 3EU
**DATE:** 26 June 2025
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## _STATEMENT OF FINANCIAL ACTIVITIES_
_(Incorporating Income and Expenditure Account) For the year ended 30 September 2024_
|||Unrestricted|**Total Funds**|**Total Funds**|
|---|---|---|---|---|
|||Funds|**to 2024**|**to 2023**|
||Note||||
|**INCOME FROM:**||**£ '000**|**£ '000**|**£ '000**|
|Donations and legacies|2|2,643|2,643|2,307|
|Other trading activities|3|569|569|519|
|**TOTAL INCOME**||3,212|**3,212**|2,826|
|**EXPENDITURE ON:**|||||
|Charitable activities|4|3,396|3,396|2,560|
|**TOTAL EXPENDITURE**||3,396|**3,396**|2,560|
|**NET INCOME BEFORE TRANSFERS**||(184)|**(184)**|266|
|**GROSS TRANSFERS BETWEEN FUNDS**||-|-|-|
|**NET MOVEMENT IN FUNDS**||(184)|(184)|266|
|**RECONCILIATION OF FUNDS**|||||
|Total funds at 1 October||9,676|9,676|9,410|
|**Total funds at 30 September**||9,492|**9,492**|9,676|
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_STATEMENT OF FINANCIAL POSITION_ For the Year Ended 30 September 2024 _Company number 5689730_
**----- Start of picture text -----**
As at 30
As at 30
September 2023
September 2024
—_ (Restated)
Note £ '000 £ '000
FIXED ASSETS
Tangible assets 8 14,045 13,101
CURRENT ASSETS
Debtors 9 175 318
ee
Cash at bank and in hand 13 59
188 373
a
CREDITORS: amounts falling due within one 10 (179) (175)
year
NET CURRENT ASSETS 9 202
a
TOTAL ASSETS LESS CURRENT 14,054 13,303
LIABILITIES
CREDITORS: amounts falling due after more 11 (4,562) (3,627)
than one year
__
NET ASSETS 9,492 9,676
FUNDS
Unrestricted Funds
Undesignated general funds 13 49 356
a
Designated property assets funds 13 9,443 9,320
9,492 9,676
a
**----- End of picture text -----**
These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and have been approved on___________________ and signed on their behalf by:26 June 2025
Ch. Nasir Ahmad Chairman
S. A. Farooqi FCA Trustee and Secretary
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## _STATEMENT OF CASH FLOWS_
_For the Year Ended 30 September 2024_
**----- Start of picture text -----**
2024 2023
£'000 £'000
**----- End of picture text -----**
**----- Start of picture text -----**
Notes
**----- End of picture text -----**
## **Cash inflow from operating activities:**
Net cash used in operating activities 14
Interest paid
## **Cash flow from investing activities** :
Purchase of tangible fixed assets
Disposal of Tangible fixed assets
Net cash used in investing activities
## **Cash flow from financing activities:**
Proceeds of new borrowings (social investment) Repayment of borrowings (bank loans) Proceeds of new borrowings (bank loan)
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
**Relating to:** Cash at bank and in hand
## **Total**
**----- Start of picture text -----**
23 132
(16) (18)
7 114
(1,000) (1,053)
12 15
(988) (1,038)
1,685 964
(750) (33)
- -
935 931
(46) 7
59 52
13 59
13 59
13 59
**----- End of picture text -----**
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_NOTES TO THE FINANCIAL STATEMENTS_
## _For the year ended 30 September 2024_
- 1 **LEGAL STATUS**
The charity is a company limited by guarantee and incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per voting member of the Charity .
The Charity 's objectives and aims are disclosed in the Trustees' report on page 4.
## **ACCOUNTING CONVENTION**
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the requirements of the Companies Act 2006 and under the historical cost convention. The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the Charity 's governing document and 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 published on October 2019 (the FRS 102 Charities SORP 2019).
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1,000.
The Charity meets the definition of a public benefit entity under FRS 102.
## **GOING CONCERN**
The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts. The trustees are satisfied that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about its ability to continue as a going concern. This conclusion has been formed as a result of the strong net assets position of the Charity at the year-end of £9,492k and from the continued support from Ahmadiyya Muslim Jamaat International by means of grants provided and the social investment funding for the Islamabad project. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **TANGIBLE FIXED ASSETS AND DEPRECIATION**
Items of a capital nature are reviewed for their purpose and are capitalised where they are considered to provide an ongoing use to the Charity. Freehold property is valued at cost or on a valuation carried out at the initial date of transfer to MSAF.
Depreciation is charged against fixed assets commencing with the year of acquisition at rates estimated to write off their cost or valuation less any residual value over the expected useful lives which are as follows:
|Fixtures, fittings and equipment|1 year|
|---|---|
|Plant and Machinery|4 years|
|Motor vehicles|4 years|
Assets under construction are currently not being depreciated, due to the assets not being in use at the year end.
Any assets which are impaired in value are written down to their recoverable amount.
No depreciation is provided on freehold land.
Depreciation is not provided on freehold buildings as the residual value is deemed to render any depreciation charge immaterial.
## **CASH AND CASH EQUIVALENTS**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
## **FINANCIAL INSTRUMENTS**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments under section 11 of FRS 102. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument.
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument, and are offset only when the charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
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## _NOTES TO THE FINANCIAL STATEMENTS_
## _For the year ended 30 September 2024_
## **FINANCIAL ASSETS**
Trade and other debtors which are receivable within one year and which do not constitute a financing transaction initially measured at the transaction value and subsequently measured at settlement value.
## **FINANCIAL LIABILITIES**
Basic financial liabilities, including trade and other payables are initially recognised at transaction value unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently measured at settlement value.
## **DONATIONS AND GIFTS**
Donations and gifts are recognised in the Statement of Financial Activities when the charity has entitlement to the funds and it is probable that the income will be received and the amount can be measured reliably. Gifts in kind are recognised at market value.
## **RENTAL INCOME**
Rental income is included in the Statement of Financial Activities when receivable.
## **GRANTS PAYABLE**
Grants payable are expensed when events have created a valid expectation in other parties that the Charity will discharge its liabilities.
## **EXPENDITURE**
Expenditure is recognised on an accruals basis as a liability is incurred.
## **APPORTIONMENT OF EXPENDITURE**
Expenditure (including irrecoverable VAT) is apportioned under the guidance of SORP and analysed between costs of generating funds, charitable activities and governance costs:
Expenditure is recognised on an accruals basis as a liability is incurred.
## **The method of apportionment is as follows:**
1. Costs attributable solely to one activity are allocated to that activity;
2. Costs which contribute directly to the output of more than one activity are apportioned on a reasonable, justifiable and consistent basis;
3. Support costs are apportioned based on the following criteria:
|General Management|
Total cost of activity|
|---|---|
|PR & Communication|
Total cost of activity|
|Administration|
Total cost of activity|
|Finance|
Total cost of activity|
|Currency translation gains|
Total cost of activity|
|Governance|
Total cost of activity|
## **FOREIGN CURRENCIES**
Transactions in foreign currency are recorded at the rate of exchange prevailing at the time of transaction. Foreign currency balances are translated into sterling at the exchange rates prevailing at the balance sheet date. Any gains or losses are included in the Statement of Financial Activities.
## **FUND ACCOUNTING**
Unrestricted funds are donations and other incoming resources receivable or generated in furtherance of the charity ’s objectives without further specified purpose and are available as general funds. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for specific purposes.
## **JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In the application of the charitable company’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. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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## _NOTES TO THE FINANCIAL STATEMENTS_
## _For the year ended 30 September 2024_
## **JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued)**
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
## **Useful economic lives of tangible assets**
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property plant and equipment, and the corresponding accounting policy for the useful economic lives for each class of assets.
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
The trustees do not consider any of these judgements or estimations to have any significant effect on the financial statements.
## **2 DONATIONS AND LEGACIES**
|**DONATIONS AND LEGACIES**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|**Total**|
||Funds|Funds|**2024**|**Funds 2023**|
||£'000|£'000|**£'000**|**£'000**|
|Donations from institutions and individuals|2,643|-|2,643|2,307|
In the year to 30 September 2024, £Nil donations (2023: £Nil) from institutions and individuals were restricted.
||**2024**|**2023**|
|---|---|---|
|Donations and legacies are split as follows:|**£'000**|**£'000**|
|Income from UK sources|2,643|2,307|
|**OTHER TRADING ACTIVITIES**|**2024**|**2023**|
||**£'000**|**£'000**|
|Rent receivable|567|510|
|Profit on Disposal of Fixed Assets|2
569|9
519|
Donations and legacies are split as follows:
**3 OTHER TRADING ACTIVITIES**
## Profit on Disposal of Fixed Assets
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## _NOTES TO THE FINANCIAL STATEMENTS_
## _For the year ended 30 September 2024_
|**4**|**CHARITABLE ACTIVITIES**|||**Activities**
**undertake**|**Grant**
**funding of**|**Support**
**costs**|**Total Cost**|**Total Cost**|
|---|---|---|---|---|---|---|---|---|
|||||**n directly**|**activities**||**2024**|**2023**|
|||||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
||1. Propagation of Islam worldwide|||296|2,857|239|3,392|2,555|
||2. Building of Mosques, Hospitals & Schools|||-|-|-|-|-|
||3. Scientific Research & Development|||-|-|-|-|-|
||4. Scholarships for Higher Education|||-|-|-|-|-|
||5. Emergency Relief - Natural Disasters|||-|-|-|-|-|
||6. Assistance to deserving and needy|||-|4|-|4|5|
||Total charitable expenditure|||296|2,861|239|3,396|2,560|
|||**Activity 1**|**Activity 2**|**Activity 3**|**Activity 4**|**Activity 5**|**Activity 6**|**Total**|
||**Activities undertaken directly**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£ '000**|
||Central properties|296|-|-|-|-|-|**296**|
|**Total payable for the year ended 30 September 2024**||296|-|-|-|-|-|**296**|
|**_Total payable for the year ended 30 September 2023_**||_243_|-|-|-|-|-|**_243_**|
|||**Activity 1**|**Activity 2**|**Activity 3**|**Activity 4**|**Activity 5**|**Activity 6**|**Total**|
||**Grant funding of activities**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£ '000**|
|Ahmadiyya Muslim Jamaat International||2,574|-|-|-|-|-|**2,574**|
|Ahmadiyya Muslim Association, United Kingdom||283|-|-|-|-|-|**283**|
|Grants to individuals||-|-|-|-|-|4|**4**|
|**Total payable for the year ended 30 September 2024**||**2,857**|-|-|-|-|**4**|**2,861**|
|**_Total payable for the year ended 30 September 2023_**||**_2,066_**|-|-|-|-|**_5_**|**_2,071_**|
|||**Activity 1**|**Activity 2**|**Activity 3**|**Activity 4**|**Activity 5**|**Activity 6**|**T otal**|
||**Support costs**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|**£'000**|
||General Management|105|-|-|-|-|-|107|
||Administration|134|-|-|-|-|-|139|
|**Total payable for the year ended 30 September 2024**||**239**|-|-|-|-|-|246|
|**_Total payable for the year ended 30 September 2023_**||**_246_**|_-_|_-_|_-_|_-_|_-_|_264_|
Of the total charitable expenditure in the year to 30 September 2024, £3,396,000 was attributable to unrestricted funds and £nil to restricted funds. Included within support costs are governance costs amounting to £1,000 (2023: £9,000) . These costs are apportioned on the total cost of each activity.
The auditor's remuneration amounted to £24,000 (2023: £22,250,). The remuneration received for non audit services amounted to £nil (2023: £nil.
**5 AUDITOR'S REMUNERATION**
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_NOTES TO THE FINANCIAL STATEMENTS_
_For the year ended 30 September 2024_
**----- Start of picture text -----**
6 STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL 2024 2023
—””:—C
£'000 £'000
Wages and salaries 99 101
National Insurance 5 5
a
Pension 1 1
105 107
po
**----- End of picture text -----**
The average number of employees during the year was 4 (2023: 4). During the year 3 (2023: 3) employees were engaged in the propagation of Islam worldwide with 1 employee engaged in administration. No employees received emoluments in excess of £60,000 during either year.
The charity considers its Board of Trustees as its key management personnel. No members of the key management personnel received remuneration in the current or previous year.
The trustees did not receive any emoluments or reimbursed expenses during either year.
- **7 TAXATION**
The company is a registered charity and as such its income and gains falling within Section 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.
## **8 TANGIBLE FIXED ASSETS**
**----- Start of picture text -----**
Fixtures,
Freehold land Plant & Motor
fittings & Total
& buildings machinery vehicle
equipment
ae
£'000 £'000 £'000 £'000 £'000
COST
At 1 October 2023 13,511 119 249 83 13,962
Additions 999 - 1 - 1,000
re
Disposal - - - (15) (15)
At 30 September 2024 14,510 119 250 68 14,947
ee
DEPRECIATION
At 1 October 2023 505 82 249 25 861
Depreciation charge - 29 1 16 46
re
Disposal - - - (5) (5)
At 30 September 2024 505 111 250 36 902
es
NET BOOK VALUE
At 1 October 2023 13,006 37 - 58 13,101
a
At 30 September 2024 14,006 8 - 32 14,045
**----- End of picture text -----**
The net book value of fixture, fittings & equipment at 30 September 2024 represents fixed assets used for administration purposes.
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## _NOTES TO THE FINANCIAL STATEMENTS_
_For the year ended 30 September 2024_
**----- Start of picture text -----**
9 DEBTORS
Other debtors
Advance to staff
Accrued Income
Receivable from employees
Prepayments
Loans repayable in more than one year
**----- End of picture text -----**
**----- Start of picture text -----**
2024 Restated 2023
£'000 £'000
79 57
- 1
- 162
1 4
36 44
116 268
59 50
175 318
**----- End of picture text -----**
2023 debtors have been restated to include the balance receivable from employees previously included in creditors.
**----- Start of picture text -----**
10 CREDITORS - amounts falling due within one year
Other Creditors
Other tax and social security
Accruals
Bank Loan due less than 1 year
**----- End of picture text -----**
**----- Start of picture text -----**
2024 2023
Restated
£'000 £'000
Other Creditors
17 11
Other tax and social security 4 5
Accruals 158 100
Bank Loan due less than 1 year - 59
2023 creditors have been restated to exclude the balance from employees now included in creditors. 179 175
2024 2023
DUE £'000 £'000
MORE THAN 5
2 - 5 YEARS Total
YEARS
Loan from Ahmadiyya Muslim Jamaat International - 4,562 4,562 2,877
Bank Loans - - - 750
- 4,562 4,562 3,627
**----- End of picture text -----**
2023 creditors have been restated to exclude the balance from employees now included in creditors.
**----- Start of picture text -----**
11 CREDITORS - amounts falling due in more than one year
**----- End of picture text -----**
Ahmadiyya Muslim Jamaat International, a registered charity , has provided funds to MSAF. Their objective is to help the poor and needy and providing a reasonable standard of accommodation. MSAF has invested these funds in residential properties. AMJ International retains a formal charge on these properties and its trustees retain the right to charge interest. No interest has been charged for the year ended 30 September 2024 (2023: Nil). The loan is not due for repayment within 12 months from the balance sheet date.
During the year, the company fully repaid all outstanding bank loans that were secured against the properties held as freehold land and buildings (refer to Note 8). The charges over these properties have now been satisfied and released by the bank as of 3 June 2024. As at 30 September 2024, the company has no outstanding secured bank loans.
## **12 FINANCIAL INSTRUMENTS**
**----- Start of picture text -----**
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
**----- End of picture text -----**
**----- Start of picture text -----**
2024 2023
£'000 £'000
138 270
4,741 3,802
**----- End of picture text -----**
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## _NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 September 2024_
**----- Start of picture text -----**
13 FUNDS
Year Ended 30 September 2024 Balance b/fwd Incoming Resources OutgoingResources Transfers Balance c/fwd
Unrestricted funds £'000 £'000 £'000 £'000 £'000
Undesignated general funds 356 3,212 (3,396) (123) 49
Designated fund for building projects - - - - -
Designated property assets funds 9,320 - - 123 9,443
9,676 3,212 (3,396) - 9,492
**----- End of picture text -----**
**----- Start of picture text -----**
Outgoing
Year Ended 30 September 2023 Balance b/fwd Incoming Resources Resources Transfers Balance c/fwd
Unrestricted funds £'000 £'000 £'000 £'000 £'000
Undesignated general funds 109 2,826 (2,560) (10) 356
Designated property assets funds 9,310 - - 10 9,320
9,410 2,826 (2,560) - 9,676
**----- End of picture text -----**
The transfers are to reflect the balance on the building project fund and additions made to properties in the year
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## _NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 September 2024_
## **13 FUNDS (continued)**
**----- Start of picture text -----**
2024 2023
Unrestricted Total Total
Designated
Un-designated
property assets
general funds funds
£'000 £'000 £'000 £'000
Tangible fixed assets 40 14,005 14,045 13,101
Long term Investments - - - -
Current assets 188 - 188 373
Current liabilities (179) - (179) (171)
Long term liabilities - (4,562) (4,562) (3,627)
Net assets 49 9,443 9,492 9,676
**----- End of picture text -----**
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **Year Ended 30 September 2024**
**----- Start of picture text -----**
2023 2022
Year Ended 30 September 2023 Unrestricted Total Total
Designated
Un-designated
property assets
general funds funds
£'000 £'000 £'000 £'000
Tangible fixed assets 95 13,006 13,101 12,098
Long term Investments - - - -
Current assets 373 - 373 147
Current liabilities (112) (59) (171) (139)
Long term liabilities - (3,627) (3,627) (2,696)
Net assets 356 9,320 9,676 9,410
**----- End of picture text -----**
Undesignated general funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
The designated building project fund are funds utilised by the charity towards their building projects, this includes funds provided by third parties. The designated property fund represents the amount of unrestricted funds attributable to the charity ’s freehold property.
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**----- Start of picture text -----**
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 September 2024
14 NET CASH FLOW FROM OPERATIONS
2024 2023
£'000 £'000
Net income for year (184) 266
(9)
Profit on disposal of Non-Current Assets (2)
Depreciation 46 44
Decrease / (Increase) in debtors 143 (219)
Increase / (Decrease) in creditors 4 32
Interest paid 16 18
Net cash flow from operating activities 23 132
15 CONSOLIDATED ANALYSIS OF CHANGES IN NET DEBT
30th September
1st October 2023 Cashflow
2024
£'000 £'000 £'000
Current Bank Borrowings 59 (46) 13
Non-Current Bank Borrowings (750) 750 -
Total liabilities (691) 704 13
16 Related Party Transactions
No related party transactions occurred during the period (2023: Nil).
END
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mw
:
**----- End of picture text -----**
## **14 NET CASH FLOW FROM OPERATIONS**
## **15 CONSOLIDATED ANALYSIS OF CHANGES IN NET DEBT**
## **16 Related Party Transactions**