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2025-03-31-accounts

Charity registration number 1117731 (England and Wales) Company registration number 04324371

KENT MUSLIM WELFARE ASSOCIATION

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

KENT MUSLIM WELFARE ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Irfan Aziz (Appointed 18 May 2025)
Mohammad Redwanul Ferdous Tito
Humair Shaheen (Appointed 18 May 2025)
Mohammad Ehsan Ahmed (Appointed 18 May 2025)
Issa Rumjaun
Waseem Mahmood Mirza
Agha Naeem Ahmed Khan
Majid Arshad
Ahmed Zaki Rawfy
Rizwan Ahmed Chohan
Ajaib Hussain (Appointed 15 December
2025)
Sajid Pervez Khan (Appointed 17 May 2026)
Senior management Irfan Aziz General Secretary
Ajaib Hussain Chairman
Waseem Mahmood Mirza Treasurer & Authorised
signatory
Charity number (England and Wales) 1117731
Company number 04324371
Principal address 114 Canterbury Street
Gillingham
Kent
ME7 5UH
Registered office 114 Canterbury Street
Gillingham
Kent
ME7 5UH
Auditor Kaiser Nouman Nathan LLP
Unit D
17 Plumbers Row
London
E1 1EQ
Accountants AAD (UK) Ltd
Unit 2A
85-87 Woodgrange Road
London
E7 0EP
Legal Advisors Morlings Solicitors
1, 2 & 3 Clarendon Place
King Street
Maidstone, Kent
ME14 1BQ

KENT MUSLIM WELFARE ASSOCIATION

CONTENTS

Page
Trustees report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 20

KENT MUSLIM WELFARE ASSOCIATION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the KMWA's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".

Objectives and activities

The immediate short-term goals along with all the other activities KMWA is already engaged with are:

  1. Maintenance and Upkeep of the current Masjid building

  2. Preparations for Ramadhan

  3. Continue fundraising for the New Masjid

  4. Improve Organisational Excellence

  5. Improve community communications

The construction of the New Masjid has been a priority in the long-term development of the infrastructure and facilities for the community. This project has been both involving and time-consuming for all those engaged, however good progress has been made over the last few years. And by the end of this financial year Phase 1 (Ground works), Phase 2 (Slabs) and Phase 3 (Floors and basic structure) has been completed. Since August 2024 the building works of the New Masjid has been on hold due to insufficient funds.

The majority of these activities are trustee and coordinator driven but we need to do more to have a balanced skill set in the BOT and a united, driven team of Trustees and Coordinators to meet the challenges of the future and position ourselves for the New Masjid. Every April there are elections to bring new blood, new energy and those who have the skills to come on board and we encourage that.

The policies adopted in furtherance of these objectives are consistent and there has been no change in these during the year.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the KMWA should undertake.

KENT MUSLIM WELFARE ASSOCIATION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

The construction of the new Masjid has been a priority in the long-term development of the infrastructure and facilities for the community. This project has been both involving and time-consuming for all those engaged, however good progress has been made over the last few years. And by the end of this financial year Phase 1 (Ground works), Phase 2 (Slabs) and Phase 3 (Floors and basic structure) has been completed.

The existing Masjid has continued with its ongoing activities. Ramadhan including daily Iftar arrangements for the community with hundreds attending was a great success. The Masjid is completely at full capacity during Traweh Jamaat, Friday Salat and for the two Salat -ul-Eids. A community Iftar “Taste Ramadhan 2024 ” and “ Masjid Open Day 2024” was also arranged for none-Muslims to experience a part of Ramadhan and meet the community which was highly appreciated.

The Imams have led the prayers and educated the community on many relevant topics that are important for Muslims. Guest speakers were arranged when needed to bring fresh inspiring talks. The Children’s Madrasa (School) operated very well during the weekend and evenings to meet the educational needs of the Muslim Children and their Parents.

The School liaison group has been quite active arranging school visits to the Masjid and making presentations to school assemblies in Medway for a better understanding of Islam and Muslims. Over ten local schools visited with an average of 60-90 children in attendance. The Kids group has continued with its range of activities such as kite flying and Micro bit coding workshops to create opportunities for local children and adults to have fun and learn new skills through participating in extracurricular activities. The Youth group had to move out due to limited space in the Masjid for sporting activities. But we will continue to work with our youth and build an environment where the youth are engaged and contribute to the well-being of the community and the Masjid. The Ladies group too have continued with their good work to full-fill the needs and aspirations of the Muslim women and their families through weekly programs. The Volunteers group have continued with the collection and distribution of food and essential items to the needy in Medway and refugee families. The Outreach group have made great inroads in bridging the gap with other communities in Medway for a better understanding and community cohesion. This has been achieved through being members of Medway Interfaith Action (MIFA) and participating in Interfaith Week and the annual Peace Walk in Medway as well as regular participants in Independent Advisory Group (IAG) to the Police.

FINANCIAL REVIEW

Reserves policy

The Trustees aim to maintain unrestricted free reserves equivalent to approximately six months' operating expenditure, including employee salaries, which equates to £40,681, in line with the Charity's Constitution. This provides sufficient financial stability to meet ongoing commitments, manage unforeseen events, and ensure the continued delivery of the Charity's objectives.

The level of reserves is reviewed annually by the Trustees and adjusted where appropriate in light of the Charity's financial position and future commitments.

Investment policy

Under its Memorandum of Association, the charity has power to invest in any way the trustees wish.

Future plans

The KMWA will continue to expand and develop its activities to provide improved communication channels, increasing community participation, and expanding educational, welfare, and youth programmes to better serve the needs of the local community.

Structure, governance and management

Governing Document

The KMWA is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

KENT MUSLIM WELFARE ASSOCIATION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Reference And Administrative details

Registered Company number: 04324371

Registered Charity number: 1117731

Registered office: 114 Canterbury Street, Gillingham, Kent ME7 5UH

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Irfan Aziz (Appointed 18 May 2025) Mohammad Redwanul Ferdous Tito Humair Shaheen (Appointed 18 May 2025) Craig Kennett (Resigned 18 May 2025) Chaudhry Muhammad Azeem (Resigned 18 May 2025) Enamul Hoque (Resigned 18 May 2025) Zafar Mahmood (Resigned 18 May 2025) Syed Muhammad Ishtiaq (Resigned 18 May 2025) Mohammad Ehsan Ahmed (Appointed 18 May 2025) Issa Rumjaun Waseem Mahmood Mirza Bashir Ahmed (Resigned 17 May 2026) Agha Naeem Ahmed Khan Majid Arshad Ahmed Zaki Rawfy Rizwan Ahmed Chohan Ajaib Hussain (Appointed 15 December 2025) Atif Waseem Khalid Sajid Pervez Khan (Appointed on 17 May 2026)

(Appointed 15 December 2025) (Appointed 18 May 2025 and resigned 3 December 2025) (Appointed on 17 May 2026)

Company Secretary Irfan Aziz

Auditors Kaiser Nouman Nathan LLP Unit D 17 Plumbers Row London E1 1EQ

Recruitment and appointment of Trustees

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of the KMWA.

Organisational structure

The board of trustees administers the charity. The board meets quarterly.

Induction and training of trustees

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of KMWA. New trustees are given a full induction by the director. Trustees can retire then they wish as they do not serve under a fixed term of tenure.

Wider network

At present KMWA does not consider itself part of a wider network.

KENT MUSLIM WELFARE ASSOCIATION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Related parties

KMWA has no tied organisations or companies.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Public Benefit Statement

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Statement of Trustees' Responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-observe the methods and principles in the Charities SORP

-make judgements and estimates that are responsible and prudent;

-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Auditors

The auditors, Kaiser Nouman Nathan LLP, will be proposed for appointment at the forthcoming Annual General Meeting.

The report of the Trustees was approved by the Board of Trustees and signed on it's behalf by:

Irfan Aziz

Waseem Mahmood Mirza

14 August 2026

14 August 2026

KENT MUSLIM WELFARE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF KENT MUSLIM WELFARE ASSOCIATION

Qualified opinion

We were engaged to audit the financial statements of Kent Muslim Welfare Association (the ‘KMWA’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the emphasis of matter and as described in the basis for the qualified opinion paragraph, the financial statements:

Basis of Qualified opinion

The evidence available to us was limited because we were appointed as auditors during the year and we have been unable to carry out auditing procedures necessary to obtain adequate assurance regarding the opening balances and comparatives figures because the financial statements for the year ended 31 March 2024 were unaudited. Any adjustments to the opening balances would have a consequential effect on the net movement in funds (profit) for the year.

We were unable to obtain alternative means to satisfy ourselves concerning loan existence, fixed asset valuation (Asset under construction - New Mosque) including the ongoing legal dispute with the contractor in terms of payments demanded.

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 KMWA 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.

Emphasis of matter

We draw your attention to Note 1.2 and Note 19 to the financial statements that describes the directors/trustees assessment for the charity to appropriately adopt the going concern basis of accounting in preparing the financial statements. Our opinion is not modified in this respect of this matter.

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.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

KENT MUSLIM WELFARE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KENT MUSLIM WELFARE ASSOCIATION

Other information

The trustees are responsible for the other information, The other information comprises the information included in the annual report other than the financial statements and our report of the Independent Auditors thereon. 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.

In connection with our audit if the financial statements 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the comparative, balances as at 31 March 2024 were unaudited and we were unable to obtain alternative means to satisfy ourselves concerning loan existence, fixed asset valuation (Asset under construction) and the ongoing legal dispute with the contractor in terms of payments demanded.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

Except for the matters described in the basis for qualified opinion, In the light of the knowledge and understanding of the KMWA and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

Arising solely from the limitation on scope of our work relating to comparatives and valuation of assets and liabilities under construction, referred above:

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees who are also the directors of the KMWA for the purpose 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 KMWA’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.

KENT MUSLIM WELFARE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KENT MUSLIM WELFARE ASSOCIATION

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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

To address the risk that revenue could be misstated due to fraud. we:

KENT MUSLIM WELFARE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KENT MUSLIM WELFARE ASSOCIATION

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any materials misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Other matters

Comparative information in the financial statements is derived from the company’s prior period financial statements which were not audited. This is non-compliance with the Companies Act 2006.

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.

Dinesh Bathmanathan

(Senior Statutory Auditor)

For and on behalf of Kaiser Nouman Nathan LLP, Statutory Auditor Chartered Certified Accountants

Unit D 17 Plumbers Row London E1 1EQ 17 August 2026

KENT MUSLIM WELFARE ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and legacies
3
45,449
390,735
Investments
4
14,316
-
Total income
59,765
390,735
Expenditure on:
Charitable activity costs
5
43,422
12,878
Governance costs
5
25,063
-
Total expenditure
68,485
12,878
Gain on revaluation of
investment property
8
130,000
-
-
-
Transfers between funds
-
-
Net movement in funds
121,280
377,857
Reconciliation of funds:
Fund balances at 1 April 2024
225,261
2,886,208
Prior year adjustment
18
(76,718)
Prior year adjustment
18
(25,000)
Restated balance at 1 April
2024
148,543
2,861,208
Fund balances at 31 March
2025
269,823
3,239,065		 Total
Unrestricted
Restricted
Total
funds
funds
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
436,184
40,390
366,075
406,465
14,316
11,726
-
11,726
450,500
52,116
366,075
418,191
56,300
100,879
23,216
124,095
25,063
22,283
-
22,283
81,363
123,162
23,216
146,378
130,000
-
-
-
-
-
-
-
-
-
2,029,319
2,029,319
499,137
(71,046)
2,372,178
2,301,132
3,111,469
219,589
489,030
708,619
(76,718)
(25,000)
3,009,751
3,508,888
148,543
2,861,208
3,009,751		 Total
Unrestricted
Restricted
Total
funds
funds
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
436,184
40,390
366,075
406,465
14,316
11,726
-
11,726
450,500
52,116
366,075
418,191
56,300
100,879
23,216
124,095
25,063
22,283
-
22,283
81,363
123,162
23,216
146,378
130,000
-
-
-
-
-
-
-
-
-
2,029,319
2,029,319
499,137
(71,046)
2,372,178
2,301,132
3,111,469
219,589
489,030
708,619
(76,718)
(25,000)
3,009,751
3,508,888
148,543
2,861,208
3,009,751
418,191
124,095
22,283
146,378
-
-
2,029,319
2,301,132
708,619
3,009,751

KENT MUSLIM WELFARE ASSOCIATION

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
Fixed assets
Tangible assets
9
Investment property
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
13
Net assets
The funds of the KMWA
Restricted income funds
Unrestricted funds		 2025
£
£
3,789,147
230,000
4,019,147
21,416
259,958
281,374
(616,633)
(335,259)
3,683,888
(175,000)
3,508,888
3,239,065
269,823
3,508,888		 2024
as restated
£
£
3,779,814
100,000
3,879,814
-
148,102
148,102
(843,165)
(695,063)
3,184,751
(175,000)
3,009,751
2,861,208
148,543
3,009,751

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 14 August 2026 and were signed on its behalf by:

Irfan Aziz General Secretary

Waseem Mahmood Mirza Treasurer

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Kent Muslim Welfare Association is a private company limited by guarantee incorporated in England and Wales. The registered office is 114 Canterbury Street, Gillingham, Kent, ME7 5UH.

1.1 Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

1.2 Assessment of going concern

The trustees, having made appropriate enquiries, consider that adequate resources exist for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the year ended 31 March 2025. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no 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 are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity's financial position or going concern.

1.3 Critical accounting judgements and key sources of estimation uncertainty

Preparation of the accounts requires the trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include: -estimating the useful economic life of tangible fixed assets.

-allocation of support costs across charitable activities.

1.4 Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Grant income

Government grants, including non-monetary grants shall not be recognised until there is reasonable assurance that:

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Governance costs

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to the strategic management of the charity.

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.7 Allocation and apportionment of costs

Overhead and support costs relating to charitable activities have been apportioned based on staff time.

1.8 Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land and buildings Overall useful life of 50 years straight line Leasehold land and buildings 0% on reducing balance Plant and equipment 25% on reducing balance

1.9 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.10 Cash at bank and in hand and debtors

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to be present value of the future cash receipt where such discounting is material.

1.11 Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow Group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

1.12 Taxation

The company is considered to pass the tests set out in Sch. 6, para. I of the Finance Act 20 IO and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.13 Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.14 Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Creditors and provisions are recognised at the moment the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material.

2 Charitable activities

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Donations and gifts
45,449
-
Mosque building project
-
363,540
Fitrana, Saddaqah, Zakat
-
21,866
Disaster Relief
-
5,329
45,449
390,735		 Total
Unrestricted
Restricted
Total
funds
funds
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
45,449
40,390
-
40,390
363,540
-
347,842
347,842
21,866
-
9,242
9,242
5,329
-
8,991
8,991
436,184
40,390
366,075
406,465		 Total
Unrestricted
Restricted
Total
funds
funds
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
45,449
40,390
-
40,390
363,540
-
347,842
347,842
21,866
-
9,242
9,242
5,329
-
8,991
8,991
436,184
40,390
366,075
406,465
406,465

4 Income from investments

Unrestricted Unrestricted
funds funds
2025 2024
as restated
£ £
Rental income 13,800 11,411
Interest receivable 516 315
14,316 11,726

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

5 Charitable expenditure

Unrestricted
Restricted
2025
2025
£
£
Direct costs
Staff costs
33,913
-
Depreciation
2,666
-
Charitable activities
1,345
12,878
Community development
-
-
Printing & stationery
425
-
Telephone
525
-
Subscription
35
-
Legal & professional
22,050
-
Repairs and maintenance
646
-
Sundry expenses
1,933
-
Insurance
1,265
-
Water rates
2,110
-
Light & heat
1,572
-
Travel
-
-
68,485
12,878		 Total
Unrestricted
Restricted
Total
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
33,913
32,538
-
32,538
2,666
76,734
-
76,734
14,223
5,718
23,216
28,934
-
100
-
100
425
-
-
-
525
511
-
511
35
35
-
35
22,050
723
-
723
646
3,000
-
3,000
1,933
700
-
700
1,265
233
-
233
2,110
1,662
-
1,662
1,572
508
-
508
-
700
-
700
81,363
123,162
23,216
146,378		 Total
Unrestricted
Restricted
Total
2025
2024
2024
2024
as restated as restated as restated
£
£
£
£
33,913
32,538
-
32,538
2,666
76,734
-
76,734
14,223
5,718
23,216
28,934
-
100
-
100
425
-
-
-
525
511
-
511
35
35
-
35
22,050
723
-
723
646
3,000
-
3,000
1,933
700
-
700
1,265
233
-
233
2,110
1,662
-
1,662
1,572
508
-
508
-
700
-
700
81,363
123,162
23,216
146,378
146,378

Governance costs

Governance costs Governance costs
Included within support costs are Governance costs:
Audit fee 21,000
Accountancy fee 1,050
22,050

Charitable activities costs

Direct costs
Direct costs
Support
Unrestricted
Restricted
Costs
£
£
£
Charitable activities
34,383
12,878
9,039
Governance costs
-
25,063
34,383
12,878
34,102
Support costs
Management
Finance Governance
Costs
£
£
£
Charitable activities
-
-
9,039
Governance costs
3,013
-
22,050
3,013
-
31,089		 Total
£
56,300
25,063
81,363
Total
£
9,039
25,063
34,102

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

6 Trustees

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

7 Staff Costs

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Pension costs		 2025
Number
4
2025
£
33,617
296
33,913		 2024
Number
3
2024
£
32,159
379
32,538

There were no employees whose annual remuneration was more than £60,000.

8 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2025 2024
Gains/(losses) arising on: £ £
Revaluation of investment properties 130,000 -

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

9 Tangible fixed assets
Freehold land Leasehold Plant and Total
and buildings land and equipment
buildings
as restated under as restated
construction
£ £ £ £
As restated
Cost
At 1 April 2024 132,766 3,723,722 4,359 3,860,847
Additions - 11,999 - 11,999
At 31 March 2025 132,766 3,735,721 4,359 3,872,846
Depreciation and impairment
At 1 April 2024 76,718 - 4,315 81,033
Depreciation charged in the year 2,655 - 11 2,666
At 31 March 2025 79,373 - 4,326 83,699
Carrying amount
At 31 March 2025 53,393 3,735,721 33 3,789,147
At 31 March 2024 56,048 3,723,722 44 3,719,814
10 Investment property
2025
£
Fair value
At 1 April 2024 100,000
Net gains or losses through fair value adjustments 130,000
At 31 March 2025 230,000
Investment property comprises of 3 Bedroom Terraced House at 30 Dawes Street ME7 5UQ. The fair value of
the investment property has been arrived at on the basis of a valuation carried out at 31 March 2025 by Tate
Woodburn Chartered Surveyors, who are not connected with the KMWA. The valuation was made on an
open market value basis by reference to market evidence of transaction prices for similar properties.
11 Debtors
2025 2024
Amounts falling due within one year: £ £
Other debtors 21,416 -

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

12 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors (Ruprai Construction Ltd)
Other creditors
Accruals and deferred income		 2025
2024
£
£
As restated
883
1,465
330,000
565,000
263,700
276,700
22,050
-
616,633
843,165		 2025
2024
£
£
As restated
883
1,465
330,000
565,000
263,700
276,700
22,050
-
616,633
843,165
843,165

13 Creditors: amounts falling due after more than one year

2025 2024
£ £
As restated
Other creditors 175,000 175,000

14 Contingent liabilities

Legal Claim

The charity is currently involved in a legal dispute arising from a claim made by contractor Ruprai Construction Limited in relation to the construction of New Mosque (Asset Under Construction). The trustees, having considered legal advice received, believe that the outcome of the matter is uncertain and that it is not currently possible to determine whether a liability will arise.

Accordingly, no provision has been recognised in these financial statements. If the claim is unsuccessful, the charity may be required to make payments estimated at up to £808,704 together with any related legal costs. The matter remains ongoing at the reporting date and will be reviewed as further information becomes available.

15 Related party transactions

At 31 March 2025, the charity owed £285,000 (2024: £285,000) in respect of unsecured, interest-free Qarz-eHasana loans from trustees and persons connected with trustees. The loans were provided in prior years to support the construction of the new mosque and have varying repayment dates. No interest was charged or paid during the year. All loans were unsecured and no guarantees were provided by the charity. During the year, the charity received donations of £17,300 (2024: £14,630) from trustees and persons connected with trustees. These donations were made without conditions that would, or might require the charity to alter significantly the nature of its existing activities.

Name Job role/Relationship 2025 2024
M Ehsan Ahmed Trustee £5,000 £5,000
Waseem M Mirza Trustee/ Treasurer £30,000 £30,000
Faheem Anwer Volunteer/ Former Election Commissioner £10,000 £10,000
Saeed Khan Volunteer/ Former Trustee/ Election Commissioner £20,000 £20,000
N Z Ramjaun Wife of Trustee - Issa Rumjaun £10,000 £10,000
Jaleel Ahmed Chohan Father of Trustee - Rizwan Ahmed Chohan £25,000 £25,000
Zahida Chohan Related to Trustee - Rizwan Ahmed Chohan £5,000 £5,000
Robina Pervez Sister of Faheem Anwer Coordinator/ Volunteer £5,000 £5,000
Issa Rumjaun Trustee/ Former Chairman £175,000 £175,000
Total £285,000 £285,000

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

16 Movement in funds

16 Movement in funds
At 1.4.24 Net movement
At 31.3.25
in funds
£ £ £
Unrestricted funds:
General fund 225,261 121,280 346,541
Prior year adjustment (76,718) (76,718)
Restricted funds:
Restricted funds 2,886,208 377,857 3,264,065
Prior year adjustment (25,000) (25,000)
TOTAL FUNDS 3,009,751 499,137 3,508,888
Net movement in funds, included in the above are as follows:
Incoming Resources Gain on
resources expended investment Movement in
property funds
£ £ £ £
Unrestricted funds:
General fund 59,765 (68,485) 130,000 121,280
Restricted funds:
Restricted funds 390,735 (12,878) - 377,857
TOTAL FUNDS 450,500 (81,363) 130,000 499,137
Comparative for movement in funds:
At 1.4.23 Net movement
At 31.3.24
in funds
£ £ £
Unrestricted funds:
General fund 219,589 5,672 225,261
Restricted funds:
Restricted funds 489,030 2,397,178 2,886,208
TOTAL FUNDS 708,619 2,402,850 3,111,469
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Gain on
resources expended investment Movement in
property funds
£ £ £ £
Unrestricted funds:
General fund 52,116 (46,444) - 5,672
Restricted funds:
Restricted funds 391,075 (23,216) 2,029,319 2,397,178
TOTAL FUNDS 443,191 (69,660) 2,029,319 2,402,850
A current year 12 months and prior year 12 months combined position is as follows:
At 1.4.23 Net movement
At 31.3.25
in funds
£ £ £
Unrestricted funds:
General fund 219,589 126,952 346,541
Prior year adjustment (76,718) (76,718)
Restricted funds:
Restricted funds 489,030 2,775,035 3,281,065
TOTAL FUNDS 708,619 2,825,269 3,550,888

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

(Continued)

16 Movement in funds

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

above are as follows:
Incoming Resources Gain on
resources expended investment Trf between Movement in
property funds funds
£ £ £ £ £
Unrestricted funds:
General fund 111,881 (114,929) 130,000 126,952
Prior year adjustment (76,718) (76,718)
Restricted funds 781,810 (36,094) - 2,029,319 2,775,035
TOTAL FUNDS 893,691 (151,023) 130,000 1,952,602 2,825,269
Fund Type Fund Name Income Expenditure Trf between Movement in
funds funds
£ £ £ £
Restricted funds: 2024 Mosque Building 347,842 -
Project 347,842
Sadaqah 3,336 - 3,336
Zakaat 1,629 4,003 (2,374)
Fitrana 4,277 4,175 102
Disaster Relief 8,991 15,038 (6,047)
Transfer between funds 2,029,319 2,029,319
Total 366,075 23,216 2,029,319 2,372,178
Fund Type Fund Name Income Expenditure Movement in
funds
£ £ £
Restricted funds: 2025 Mosque Building 363,540 -
Project 363,540
Fitrana/ Sadaqah/
21,866		 9,775
Zakat 12,091
Disaster Relief 5,329 3,103 2,226
Total 390,735 12,878 377,857

17 Auditor's liability limitation agreement

The charity has entered into a liability limitation agreement with Kaiser Nouman Nathan LLP, the statutory auditor, in respect of the statutory audit for the year ended 31 March 2025. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements and was approved on 15 October 2025.

KENT MUSLIM WELFARE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

18 Prior year adjustment

During the audit of the financial statements, a number of prior period errors were identified in the comparative financial statements for the year ended 31 March 2024. The comparative figures have been restated in accordance with FRS 102 Section 10 Accounting Policies, Estimates and Errors and the Charities SORP (FRS 102).

The prior period errors identified were as follows:

Leasehold buildings

Leasehold building additions of £60,000 had not been recognised within tangible fixed assets. The corresponding liability had also not been recognised and has therefore been included within other creditors.

Freehold building depreciation

Depreciation had not previously been charged on a freehold building acquired on 31 March 1995, contrary to the requirements of FRS 102. The building is now being depreciated on a straight-line basis over its estimated useful life of 50 years.

Loan liability

A loan liability of £25,000 existing at 31 March 2024 had been omitted from the accounting records. The corresponding adjustment has been recognised against restricted funds.

The effect of the restatement on the Statement of Financial Position at 31 March 2024 is summarised below:

Statement of Financial Position/Funds Adjustment
£
Tangible Fixed assets - leasehold building additions 60,000
Tangible fixed assets – accumulated depreciation (76,718)
Net decrease in tangible fixed assets (16,718)
Other creditors (amounts falling due within one year) 60,000
Loan creditors (amounts falling due after more than one year) 25,000
Unrestricted funds (76,718)
Restricted funds (25,000)
Total reduction in funds (101,718)
The comparative figures for the year ended 31 March 2024 have been restated accordingly.

19 Events after the reporting period

The charity is in legal dispute with Ruprai Construction Ltd in relation to a claim for unpaid invoices amounting to £808,704 in relation. This claim is in relation to building work on the new mosque (Asset under construction) and has not been recognised in these financial statements as the trustees dispute the validity of the claim. The matter has been referred to the charity's solicitors and remains subject to ongoing legal proceedings. The trustees are unable to determine the outcome of the dispute at the date these financial statements were approved.