2023-12-31-accounts - Milton Keynes Muslim Association

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MILTON KEYNS MUSLIM ASSOCIATION

Annual Report and Accounts

For the year ended 31 December 2023

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Registered charity number 1121142 England & Wales

	Milton Keynes Muslim Association
	Registered charity number 1121142
Annual report and accounts
For the year ended 31 December 2023
Contents	Page
Trustees’ annual report	2
Independent examiner’s report to the Trustees of MKMA	9
Statement of financial activities	10
Balance sheet	11
Notes to the accounts	12

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report

For the year ended 31 December 2023

The Trustees present their annual report and accounts for the year ended 31 December 2023.

Objectives and activities

Aims and objectives

The aims and objectives of the MKMA are:

a) to support Muslims living in the UK by providing access to facilities for religious worship.
b) to promote educational opportunities for Muslims in religious and secular education.
c) to promote facilities for leisure time, social and welfare events, to be run in an Islamic manner, with the object of improving quality of life and reducing inequalities within the community.
d) to promote mutual understanding, harmony and social cohesion by engaging in just initiatives; by being proactive in promoting correct knowledge of Islam as a religion and Muslims as a diverse people; through the rightful treatment of all fellow citizens, regardless of their creed, gender or ethnicity.

Our Mission Statement

The MKMA will support Muslims living within Milton Keynes and the rest of the UK by promoting a sense of belonging to the communities in which we live and by encouraging better understanding of Islam and of Muslims across the UK.

Public benefits

The MKMA holds events, seminars, activities and classes which are open to all Muslims and non-Muslims. Invitations are regularly made to local non-Muslims to attend events with advertising being made by posters placed in prominent places, local media, via our Website, Facebook and App.

Usually, family days are held for Muslims and non-Muslims, including Family BBQs, open day café with food and drinks to fundraising.

The MKMA has teamed up with partners such as Islamic Relief, Families, Muslim Hands, UNICIF, MAP and one Umma to offer help in fundraising for a wide range of charitable needs and humanitarian disasters.

In addition, the MKMA is a founding member of Citizens: MK; Citizens: MK is an alliance that brings together schools, local faith and community groups with widely divergent interests from the Milton Keynes area and forms to effect change in Milton Keynes for the betterment of the whole community.

As well as current benefits, the MKMA is continuously looking to increase future benefits with the Islamic Centre MK which will have both a benefit to the local Muslim population and the residents living close by, as well as to local schools, colleges and other community groups.

We believe that the breadth and accessibility of our activities and programmes will demonstrate without any doubt the public benefit that our work brings to the community.

In shaping our objectives for the year and our activities the MKMA have considered the Charity Commission’s guidance on public benefit including the guidance ‘public benefit: running a charity (PB2).

Activities

The MKMA is actively involved in all areas of local society and community affairs. Through its volunteers and paid staff, the MKMA runs several activities and projects within the Milton Keynes area. This has been reflected in the time taken to reopen the mosque and continue with activities; ensuring all guidelines are implemented and followed once opened.

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report (continued) For the year ended 31 December 2023

Objectives and activities (continued)

Activities (continued)

In previous years our weekly activities conducted include Jumu’ah prayers on Fridays, Madrassa (Qur’an and Arabic school for children) four times a week, adult Islamic classes, Sisters Quran Classes, supplementary Mathematic classes,Taraweeh prayers during Ramadan and Iftar gatherings (fast-breaking meals during Ramadan). When larger premises are required, as is the case for Eid prayers and celebrations, larger establishments such as local sports centers are used. The Jumu’ah prayers were well attended by the local community members and those within the Milton Keynes area on the day. The Madrassa is attended by an average of 80 children for 6 hours a week. Iftar gatherings were held on every Saturday evening of Ramadan were attended by more than 200 people including members of the local community.

Outside of this, the MKMA engages in interfaith dialogue (via membership of MK Interfaith and MK Council of Faiths) and local community interaction (via membership of Citizens: MK and regular attendance at Neighbourhood Action Group meetings for Campbell Parish Council). The annual occurrence of Ramadan FM (RFM), the first Ramadan Radio station in Milton Keynes is a key achievement of the MKMA. The whole community benefits from this service which is wholly provided by volunteers and supported financially by local businesses and individuals.

Our ethos

Our ethos is based on three principles:

Spirituality : Everything we do is for the sake of Allah. We are always mindful of the laws of Allah, as prescribed in the Qur’an and in the Sunnah of the Prophet Muhammad (Peace Be Upon Him), as well as being mindful of the laws of the country in which we live. We endeavour to represent our religion in the best possible way at all times.

Knowledge : It is our duty to seek knowledge and to share this with others, for the sake of Allah. We aim to further our own knowledge of Islam and to further the awareness of Islam within the UK, by showing it as the beautiful deen which we know it to be.

Community : We are members of the community, who work for the community. We do not work for individual gain, but for the pleasure of Allah, and to benefit the communities to which we belong.

Achievements and performance

During the year the FCA intruded new guidance to all funeral providers , we conducted and was agreed by bereavement subcommittee that the best way to serve our community is to offer the service free of charge at the point of use and that grave cost would directly be passed onto the deceased family .all members were informed and were giving the option to receive a refund or their contribution to be retained in the fund to be used for other funerals, some of the members requested t a refund which was paid back.

A public meeting was called on 22/01/2023 where the trustees explained the reasons and offered full return of contributions. Emails to all members were sent to same effect.

MKMA continued running of the Madrassah at the Islamic Centre, Monday to Thursday 5.30pm to 7.00pm.

The maintenance of the websites - www.mkmuslims.org and www.ramadanfm.com, provision of Eid prayers and Ramadan community Iftar gatherings took place as usual.

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report (continued) For the year ended 31 December 2023

Achievements and performance (continued)

In another year of the special Ramadan radio broadcast – Ramadan FM (RFM) which was implemented as digital service. MKMA engaged in outreach work with a mix of spiritual, factual and light entertainment programs. Through RFM MKMA strives to signpost local, national and international services or information to the community here in Milton Keynes as well as our listeners in towns and cities in the UK and abroad. The RFM project is delivered by volunteers continues to offer a unique platform for the young, youth and older members of the community to develop strong skills in planning, effective communication and time management.

Usually, HM Woodhill Prison in Milton Keynes and HM young offender institution make regular visits to the Centre as part of their staff training. Our centre Manger visited many primary and secondary schools to give talk on Islam.

MKMA is enormously grateful for all the time and resources that more than 100 people donated during the year especially in making it possible to restart activities after lockdown.

Financial review

The Trustees do not have a specific reserves policy that states the maximum or minimum reserves that should be held. Unrestricted funds reserves are maintained to cover operating costs and to ensure continuity of projects. Restricted funds have a specific purpose and are held in anticipation of expenditure in relation to that purpose.

The Statement of Financial Activities shows net incoming resources of £74,771 for the year ended 31 December 2023 (2022: £39,987). Of this total, £11,228 (2022: £16,620) is restricted in its use for the MKICC project, food bank, the Bereavement Fund and other designated restricted activities as they arise. The remaining amount of £63,543 (2022: £23,366) is unrestricted and the Trustees consider that it is appropriate to hold the current level of cumulative reserves to be able to continue the Association’s operations.

During the year, the voluntary donations to the MKICC fund were £185,733 (2022: £147,850).

MKMA did not undertake any grant-making activity directly but was able to assist other charities in their relief of poverty and suffering .These collections were handed to UNICEF, MAP, one Community these funds are solely used for the relief of need and financial hardship of Muslims. The total collected was £0 (2022: £2,754). – This year MKMA did not collect Zakat-ul-Fitr. The community were advised to donate directly to a charity of their choice.

Reserves

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have set aside resources for a specific purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or the terms of a specific appeal or public collection of Zakat in accordance with the teachings of Islam.

Plans for the future

Having established the Islamic Centre, future plans of the MKMA cover the furtherance of the provision of services to and catering to the needs of the local community through the use of the Centre as a place of worship, learning and socialising. The MKMA is strengthening links with other community groups in order to improve and extend the services provided to the local community

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report (continued) For the year ended 31 December 2023

Structure, governance and management

Governing document

MKMA is governed by its Constitution and By-laws which were adopted on 28 February 2007 amended in June 2009 and amended again in February 2017; and is managed by its Trustees.

The structure of the MKMA comprises the Trustees and the Executive Committee. Throughout the year the Trustees have all been Executive Committee members and thus responsible for the governing of the MKMA. Other Executive Committee members hold the positions of Chairman, Secretary and Treasurer.

The Constitution and By-laws, as amended in February 2017 state that there shall be ten Trustees.

Appointment of Trustees

Additional persons may be appointed by the Trustees and Executive Committee, as deemed necessary in order to fulfil the aims and objectives of the MKMA. The duration of such appointments shall be determined by the Trustees and Executive Committee.

Organisation

The Board of Trustees often convenes meetings on short notice when required either face to face or by zoom

The Trustees have the power to convene a Shura (Advisory) Council; a body comprised of members of the community that provide support, advice and ideas for the work and development of the MKMA.

The work of the MKMA is undertaken by volunteers and supported by paid staff. Volunteers, including the Trustees and Executive Committee, all work for the MKMA voluntarily in their spare time and are requested to submit a Disclosure and Barring Service (DBS) check when they envisage helping the MKMA over a period of time. Such checks, however, are not always feasible for one-off events unless there is statutory regulation requiring them.

A complaints procedure was formalised as part of the changes which were made to the 2009 Constitution.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee of the Charity with a contracting party must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported.

The MKMA’s main related party is MKMA Limited, a company that was incorporated to act as a contracting party of the Association.

Risk management

The Trustees have assessed the nature of the risks the Charity faces. The Trustees consider and review these risks on a regular basis. The Trustees are satisfied that systems are in place to manage the risks identified.

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Milton Keynes Muslim Association Registered charity number 1121142

Insurance cover is in place and the finances of the MKMA are kept under review. Appropriate DBS checks, supported by regularly reviewed policies, are made for all those who work with children within the activities of the MKMA.

Trustees’ annual report (continued) For the year ended 31 December 2023

Structure, governance and management (continued)

Procedures and policies

The Trustees have put in place several controls over cash collections, banking, donations, approval of spending and expenses. They review these controls to ensure that they are effective and amend them when necessary to safeguard the assets of the charity.

Reporting

The Treasurer will endeavour to publish accounts regularly. Amounts collected at Jumu’ah prayers are announced at the following week’s Jumu’ah prayers.

Cash collection

All donation collection boxes during events organised by the MKMA are placed in public view at all times. Once the collection is complete, it is counted by an authorised person in the presence of another committee member. A record is then kept of the amount collected, signed and dated by the counter and checker. For donations received, except those directly placed in collection boxes, a receipt is issued to the donor.

Banking

All donations are banked using the charity’s bank account paying-in books on the same day, if possible.

Withdrawals

All cash withdrawals or payments made by cheque of up to £100 must be authorised by any two committee members and can be signed for by the same committee members. Any withdrawals of more than £100 must be authorised by more than two members and can be signed by any two committee members.

Expenses

Any expenses must be paid for using the MKMA cheque book. If members of the MKMA incur pre-authorised costs these are reimbursed using the cheque book on production of an expense claim form and till receipt or equivalent paperwork.

Other collections

Collections for zakat, sadaqah, and other donations and charitable causes are counted separately, and a receipt issued to the donor, where practicable.

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report (continued)

For the year ended 31 December 2023

Reference and administrative details

Registered charity

The full name of the charity is Milton Keynes Muslim Association (“MKMA”). The charity was registered with the Charity Commission on 11 October 2007. The registration number is 1121142.

Registered Address

Islamic Centre, Trubys Garden, Coffee Hall, Milton Keynes MK6 5HA.

Property and services

MKMA Limited, a related party, was incorporated as a contracting party for the Association for the construction of the Islamic Centre and for the discharging of other obligations. Accordingly, MKMA Limited owns the Islamic Centre from which the Association undertakes its operations.

Our history

The Milton Keynes Muslim Association (the “MKMA”) was created in February 2007, following on from the successful activities of the Milton Keynes Juma’a Society (the “MKJS”).

On 11 October 2007 the MKMA was registered as a charity with the Charity Commission of England & Wales.

From the time of its inception, the envisaged role of the MKMA has been and continues to be charitable work. The MKMA fosters links between all members of society both Muslim and non-Muslim and engages both the youth and older members of Milton Keynes society physically and spiritually. The aims of the MKMA are wide enough to allow for plenty of growth whilst enabling scope for many ideas which are beneficial for the Muslim community of Milton Keynes.

Going Concern

In the year there was no uncertainty in relation to the charity being a going concern.

Trustees

The following people acted as Trustees during the year and at the date of approval of this annual report:

A Abdullah M Noor M Sheikh

M M Ageli

S Ali

T Gueddar

M Hikal A Labeeb O Masuo A Suleman (Resigned 5[th] August 2023)

No trustee had any beneficial interest in the Association.

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Milton Keynes Muslim Association Registered charity number 1121142

Trustees’ annual report (continued) For the year ended 31 December 2023

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of the resources of the charity during the year. 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 accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operational existence.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent Examiner

The Trustees asked Salman Maqbool from Adam Accounting Services Ltd to undertake the independent examination of the annual accounts.

Signed on behalf of the Trustees on 6[th] January 2025.

A.Abdullah

M Hikal Amer Abdullah Morad Hikal

Commented [SM1]: Please sign

Milton Keynes Muslim Association Registered charity number 1121142

Independent examiner’s report to the Trustees of MKMA

I report to the Trustees on my examination of the accounts of Milton Keynes Muslim Association (MKMA) charity number: 1121142 for the year ended 31 December 2023, which are set out on pages 10 to 21.

Responsibilities and basis of report

As the Charity’s trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011(“the Act”).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Charities Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and

Independent examiner’s statement

I have completed my examination; I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give aa ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report order to enable a proper understanding of the accounts to be reached.

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Salman Maqbool (FCA)

Adam Accounting Services Ltd ICEAW Milton Keynes Dated: 6[th] January 2025

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			Milton Keynes Muslim Association	Milton Keynes Muslim Association	Milton Keynes Muslim Association
			Registered charity number 1121142
tatement of financial activities – Charity No 1121142
or the year ended 31 December 2023
				Total	Total
		Unrestricted	Restricted	funds	funds
		funds	funds	2023	2022
	Note	£	£	£	£
Income resources
Donations and legacies	3a	183,173	49,942	233,115	147,850
Charitable activities	3b	1,743	43,416	45,159	38,967
Other incoming resources		-	-	-	-
Total incoming resources		184,916	93,358	278,273	186,817
Resources expended
Raising funds	4a	0	0	0	0
Charitable activities	4b	-85,242	-80,191	-165,443	-109,886
Other	4c	-33,872	-4,198	-38,070	-36,944
Total resources expended		-119,114	-84,389	-203,502	-146,830
Net income/(expenditure) and net		65,800	8,970	74,771	39,987
movement in funds for the year
Reconciliation of funds:
Total funds b/f 01.01.2023	14	169,379	2,182,215	2,351,594	2,311,607
Reduction in Retained Earnings	3b	-	-13,102	-13,102
Total funds c/f 31.12.2023		232,921	2,180,341	2,413,263	2,351,594
he Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources
xpended derive from continuing activities.
n this year’s accounts we have backdated Related Party Accountancy costs of £250.00 in 2022, where they were
ot recharged to the related party ‘MKMA Ltd’. Please see Note 11 for additional details in regards to this and any
nes written in red that highlight lines affected by the change.
or further detail please refer to Accounting Policy 1(d) in regard			to Fund Accounting, Note 14 in regards to
estricted Funds and Note 15 in regard	to MKMA Ltd related party.
		10

Statement of financial activities – Charity No 1121142 For the year ended 31 December 2023

The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.

In this year’s accounts we have backdated Related Party Accountancy costs of £250.00 in 2022, where they were not recharged to the related party ‘MKMA Ltd’. Please see Note 11 for additional details in regards to this and any lines written in red that highlight lines affected by the change.

For further detail please refer to Accounting Policy 1(d) in regard to Fund Accounting, Note 14 in regards to Restricted Funds and Note 15 in regard to MKMA Ltd related party.

		Milton Keynes Muslim Association	Milton Keynes Muslim Association
		Registered charity number 1121142
Balance sheet – Charity No 1121142
As at 31 December 2023
			Restated
	Note	2023	2022
		£	£
Current assets
Fixed Assets	10	9,131	10,509
Debtors	11	2,076,974	2,076,724
Cash at bank and in hand	12	329,996	264,577
*Total current assets*		2,416,101	2,351,810
Current liabilities
Creditors: amounts falling due within one year	13	2,838	216
*Net current assets*		2,413,263	2,351,594

*Net assets*		2,413,263	2,351,594
The funds of the charity:	14
Unrestricted funds		235,178	169,379
Restricted funds		2,178,085	2,182,215
*Total charity funds*		2,413,263	2,351,594

The notes on pages 12 to 21 form part of these accounts.

Approved on behalf of all the Trustees on 6[th] January 2025 by:

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A Abdullah M Hikal Amer Abdullah Morad Hikal

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts

For the year ended 31 December 2023

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as summarised below. They have been applied consistently throughout the year and in the preceding year.

a) Basis of preparation and assessment of going concern

The financial statements have been prepared on the historic cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The presentation currency of these financial statements is sterling, and all amounts have been rounded to the nearest £1.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

b) Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was needed. No restatements were required. There was no difference in the previously reported net income under the previous GAAP and FRS 102.

c) Recognition of income

Income is included in the Statement of Financial Activities (SoFA) when:

the charity becomes entitled to the income;
any performance conditions attached to the item(s) of income have been met;
it is probable that the income will be received; and
the monetary value can be measured with sufficient reliability.

d) Fund accounting

Further details of each fund are disclosed in note 14. In this year’s accounts we have transferred funds from the MKICC Restricted Account to our General Unrestricted Account. For further detail please refer to Note 14 in regard to the Restricted Funds and Note 15 in regard to MKMA Ltd related party.

e) Matching income with related expenditure

Where income has related expenditure (as with fundraising or contract income) the income and related expenditure are reported gross in the SOFA, when practicable.

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

1. Accounting policies (continued)

f) Grants and donations

Grants and donations are only included in the SOFA when the general income recognition criteria are met (5.10 to 5.12 FRS102 SORP). Grants and donations are only included in the SOFA when the general income recognition criteria are met (5.10 to 5.12 FRS102 SORP).

g) Donated services

Identified donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

h) Tax reclaims on donations

Gift Aid reclaimable on donations to the charity is included in accordance with the income recognition policy.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise the costs of donation website support services and fundraising costs.
• Expenditure on charitable activities includes the costs of Madrassah, Ramadan FM radio project, community support services and collections for specified activities undertaken to further the purposes of the charity and their associated support costs.
Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

j) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s programmes and activities. These costs have been allocated between cost of raising funds, expenditure on charitable activities and other expenditure. The bases on which support costs have been allocated are set out in note 4.

k) Gifts in kind

Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised.

Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity.

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Milton Keynes Muslim Association Registered charity number 1121142 Notes to the accounts (continued) For the year ended 31 December 2023

1. Accounting policies (continued)

l) Volunteer help The value of any voluntary help received is not included in the accounts but is described in the Trustees’ annual report.

m) Investment income Investment income, which comprises bank interest, is included in the accounts when receivable; this is normally on notification of the interest paid by the bank.

n) Fixed assets

All assets costing more than £500 are capitalised. Depreciation on all equipment is charged on a straight line basis over 5 years. Depreciation on all vehicles is charged on a straight line basis over 10 years.

o) Debtors

Amounts owed by related parties are recognised at the settlement amount due. The debtor balance has not been amortised with interest rate as the effect of the amortisation has not been considered material and due to religious observation.

p) Cash at bank and in hand

Cash at bank and cash in hand includes cash.

q) Creditors and provisions

Creditors where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any discounts due. The creditor balances have not been amortised with interest rate as the effect of the amortisation has not been considered material and due to religious observation.

r) Governance costs

Governance costs include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to Trustees on governance or constitutional matters.

s) Bad debt provision

A provision is made against debts that are judged to be doubtful.

2. Taxation MKMA is a registered charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes.

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

3. Analysis of incoming resources

a) Income from donations and legacies

Donations Gift aid received * Restricted Contributions Zakat-ul Mal & Sadaqa Turkey/Syria/Morocco/Libya Earthquakes Islam for Deaf Medical Aid for Palestine	Unrestricted funds £ 180,523 2650 - - - - - 185,733	Restricted funds £ - - 2,560 610 24,456 4,199 18,117 49,942	Total 2023 £ 180,523 2,650 2,560 610 24,456 4,199 18,117 233,115	Total 2022 £ 144,033 - 3,092 725 - - -
				147,850

Expected in 2024 accounts is an amount for £4,728.00 in relation to 2022 HMRC Gift aid claim. The exact amount is not known and as a result we cannot be virtually certain of amount due to the charity. As such a descriptive note is included here for reference.

b) Income from charitable activities

Ramadan FM income Madrassa fees Bereavement fund Other activities Food Parcel/Bank Donations Nikkah	Unrestricted funds £ - - - 1,743 - - 1,743	Restricted funds £ 800 15,067 16,317 7,038 4,409 - 43,631	Total 2023 £ 800 15,067 16,317 8,781 4,409 0 45,374	Total 2022 £ 500 13,937 15,429 5,603 3,298 200
				38,967

In 2023 Bereavement Membership Fees relating to prior years were refunded to members amounting to a total of £13,102, (this can be seen on Page 10, Reconciliation of funds). As these refunds do not reflect income for 2023 they have been taken against retained earnings within the bereavement fund. The figure of £16,317 within the fund above is income received in 2023 within this fund.

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

4. Analysis of expenditure

a) Charitable activities

Madrassah Payments to teachers Stationery and books Madrassa - Other Ramadan FM radio project Ofcom licences Broadcasting equipment hire Equipment purchases and other Bereavement and funeral expenses Community and educational events Payroll costs (note 8)	Unrestricted funds £ - - - 0 - - - 0 - - 85,242 85,242	Restricted funds £ 11,822 100 2,873 14,795 0 0 640 640 9,032 6,923 - 15,955	Total 2023 £ 11,822 100 2,873 14,795 0 0 640 640 9,032 6,923 85,242 101,197	Total 2022 £ 7,988 993 -
				8,981
				2,240 1,800 -
				4,040
				2,106 3,650 85,355
				91,111

				Milton Keynes Muslim Association	Milton Keynes Muslim Association
				Registered charity number 1121142
o	tes to the accounts (continued)
o	r the year ended 31 December 2023
.	Analysis of expenditure (continued)
)	Charitable activities (continued)
		Unrestricted	Restricted	Total	Total
		funds	funds	2023	2022
		£	£	£	£
	Expenditure for specified activities:
	Zakat-ul-Fitr	-	-	-	2,754
	Food Parcels/Bank	-	2,029	2,029	3000
	Turkey/Syria/Morocco/Libya Earthquakes	-	24,456	24,456	-
	Islam for Deaf	-	4,199	4,199	-
	Medical Aid for Palestine	-	18,117	18,117	-
		-	48,801	48,801	5,754

	Total Expenditure on Charitable activities	85,242	80,191	165,433	109,886
)	Other
		Unrestricted	Restricted	Total	Total
		funds	funds	2023	2022
		£	£	£	£
	Public liability insurance	2,366	-	2,366	1,992
	Utilities	23,826	2,060	25,886	29,171
	Webhosting and communications	2,238	-	2,238	1,574
	Accounting software and services	1,070	-250	820	500
	Other costs	1,410	-	1,410	121
	Building and grounds maintenance	1,789	-	1,789	1,223
	Legal & Professional	408	-	408	440
	Equipment Cost	329	-	329	-
	General Exp/Subsistence	1,445	-	1,445	516
	Depreciation Expense	370	1,008	1,378	1407
	Fund Transfer*	-944	944	-	-
		34,307	3,762	38,070	36,944
	* Fund Transfer are funds that were moved between Restricted and Unrestricted Funds. The amount shown
	above is made up of £7,340 which was moved from Unrestricted funds to			RFM Restricted Fund as there was
	a shortfall in the income made over the years that did not cover the costs			for Radio FM. £8,935 was moved
	from Zakat Restricted Funds to Unrestricted funds, as in the note in ‘Financial review’, the community were
	advised that Zakat is not being collected as such these funds have been reconciled and funds				held have
	been moved to unrestricted general funds. The remaining difference is Fund transfers to bank transfers that
	occurred in previous years but did not get	allocated to the	relevant fund.
		17

Notes to the accounts (continued) For the year ended 31 December 2023

4. Analysis of expenditure (continued)

b) Charitable activities (continued)

c) Other

Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

5. Governance costs

In the year, included within other expenditure are fees for the independent examination of these accounts of £300 (2022: £250). No other costs were incurred in the current or prior year relating to the governance of the MKMA.

6. Trustees and other related party transactions

No Trustees received any remuneration in respect of their responsibilities as Trustees.

7. Fees for examination or audit of the accounts

2023	2022
£	£
363	363

8. Staff costs

The MKMA did not employ any staff during the year (2023: none). In discharging its charitable duties and obligations MKMA received people services through the employees of MKMA Limited, a related party of MKMA. During the year the services of 5 individuals (2023: 5) were received by the MKMA. These individuals provided services in cleaning and caretaking: 3 individuals (2023: 3); clerical and administrative services: 2 individuals (2023: 2). The costs of these employees of MKMA Limited of £85,242 (2022: £85,355) were recharged to MKMA. These costs are disclosed in note 4b.

Payments were made to some teachers of the Madrassah during the year in recognition of the contribution they made amounting to £11,822 (2022: £7,988). No amounts were reimbursed specifically for travelling expenses (2023: £nil).

9. Donated services

MKMA receives free services from many members of the local community which are not recorded in the accounts on the grounds that it is not possible to value the services accurately. These services have not been paid for and are not material to the accounts of the charity. They include architectural, graphics, legal, accounting, religious leadership, consultancy, teaching, event organisation and catering services amongst others.

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

10. 11. Debtors Cost As at 01.01.2023 Additions Disposals At 31.12.2023 Depreciation As at 01.01.2023 Depreciation for year Disposals At 31.12.2023 Net Book Value At 31.12.2023 At 31.12.2022	Mosque Equipment £ 1,850 - - 1,850 942 370 - 1312 538 908	Restricted Motor Vehicles £ 10,800 - - 10,800 1,199 1,008 - 2207 8,593 9,601	Total Assets £ 12,650 - -
			12,650
			2,141 1,378 -
			3,519

			9,131

			10,509

Amounts owed by related parties	2023 2022 £ £ 2,076,974 2,076,724
	2,076,974 2,076,724

Please note: The 2022 balance was £2,076,474 this has changed to the amount shown above. £250.00 was originally within the 2022 accounts for accounting services which related to related party ‘MKMA Ltd’ accounting services. This has been corrected for the year 2022 which means the accounting charges have reduced by £250.00 and the related party amounts have increased by this amount.

12. Cash at bank and in hand

Cash in hand Cash at bank	2023 £ - 329,996 329,996	2022 £ 540 264,037
		264,577

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

13. Creditors: amounts falling due within 1 year

. Creditors: amounts falling due within 1 year
Accruals Other Creditors	2023 £ 2,621 - 2,621	2022 £ - 216
		216

14. Analysis of funds

Unrestricted funds

Unrestricted funds show the income and costs relating to the wide range of activities undertaken by MKMA. These are detailed in the Trustees’ annual report and accounts.

The Madrassah, though not designated as a restricted fund, has its own bank account separate from that of the MKMA general funds and the MKICC restricted funds.

Restricted funds

Restricted funds are to be used only for the following specific purposes:

MKICC - donations have been received from members of the Muslim community in Milton Keynes and others. These donations in the past were restricted in their use for the purpose of settling costs of the MKICC which was mainly the land and buildings cost through the Related Party. In 2022 these costs were settled so any donations made by the community that were in the fund have now been transferred to Unrestricted Funds.

Collections made on behalf of other charities - collections were handed to a chosen Muslim humanitarian charity. These funds are solely used for the relief of need and financial hardship of Muslims.

Funds raised for the Bereavement Fund are used solely for the purpose of observance of last rights for members and their families.

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Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

14. Analysis of funds (continued) Unrestricted funds MKMA general fund Restricted funds MKICC MKMA – Masjid Extension Bereavement fund Madrassah Ramadan FM radio project Zakat-ul-Fitr Zakat-ul Mal & Other Total funds	1 January 2023 £ 169,378 2,076,724 - 70,501 17,434 -7,500 5,275 6,680	Income £ 184,915 500 16,317 15,067 8,140 - 60,889	Expenditure £ -119,549 250 - -9,740 -14,444 -640 -5,275 -61,444	31 Dec 2023 £ 234,744 2,076,974 500 77,078 18,057 - - 6,125
	2,169,114 2,338,492	100,913 285,828	-91,293 -210,842	2,178,734
				2,413,478

The MKMA – Restricted fund is for funds towards the potential extension of the Masjid, this is yet to be finalised but there has been a contribution towards this.

Other restricted funds movements in the year were in respect of donations received for Zakat-ul Mal, Iftar/Food Bank Donations, Earthquakes, Palestine, Islam for the Deaf appeals and Contributions to the Masjid Utility Bills.

Unrestricted funds MKMA general fund Restricted funds MKICC Bereavement fund Madrassah Ramadan FM radio project Zakat-ul-Fitr Zakat-ul Mal & Other Total funds	1 January 2022 £ 146,262 2,076,474 71,317 12,874 -3,960 4,937 3,704 2,165,345 2,311,607	Income £ 144,233 - 15,429 13,937 500 3,092 9,626 42,585 186,818	Expenditure £ -121,116 250* -3,143 -9,378 -4,040 -2,754 -6,650 -25,715 -146,831	31 Dec 2022 £ 169,378 2,076,724 70,501* 17,434 -7,500 5,275 6,680
				2,182,216
				2,351,594

*There is a difference regarding £250 income in expenditure as the expense was related to MKMA Ltd expenditure for 2022 accounts. There is also a difference in the bereavement fund carried forward which has been reduced by £13,102 reduced from Retained Earnings for refunds made to members for payments made by them in previous years, please see Note 3b.

Milton Keynes Muslim Association Registered charity number 1121142

Notes to the accounts (continued) For the year ended 31 December 2023

15. Related party transactions

MKMA Limited

During the year the MKMA had transactions with MKMA Limited (the Company). The Company was incorporated and established as a contracting party for the MKMA for the construction of the MKICC and the furtherance of the charitable objectives of MKMA. The Company provided employee services to MKMA whilst MKMA collected rental income on behalf of the Company.

Donations from the public and the community were received by the MKMA, which then makes the funds available to the Company to settle the construction and other liabilities as they fell due. These were all settled in 2022.

The directors of the Company are appointed from and by the Trustees and Executive Committee of the Milton Keynes Muslim Association. As at 31 December 2023, the Association had made net payments to contractors and suppliers on behalf of the Company of £2,076,974 (2022: £2,076,724).

Madrassah

During the year Z Saleem, the spouse of one of the Trustees, received £nil (2023: £nil) for teaching services provided to Madrassah pupils.

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