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2022-03-31-accounts

Ar-Rahmah Trust Annual Report 2022

Trustees Report and Financial Statements For the year ended 31 March 2022

Contents

Ar-Rahmah Trust Trustees' report for the year ended 31 March 2022 ........................................... 2 Message from Chairman ................................................................................................................. 3 Highlights of the year ...................................................................................................................... 5 Independent examiner's Report to the Trustees of Ar-Rahmah Trust ............................................. 8 Statement of financial activities for the year ended 31 March 2022 .............................................. 9 Balance sheet at 31 March 2022 ................................................................................................... 10 Notes to the financial statements for the year ended 31 March 2022 ........................................... 11

Ar Rahmah Trust | Annual 2021-2022 Report

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Ar-Rahmah Trust Trustees' report for the year ended 31 March 2022

The trustees present their report and the financial statements of the charity for the year ended 31 March 2022. The financial statements have been prepared based on the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document.

Reference and administrative details of the charity

Charity registration number

1121296

Correspondence address

Office 3, First Floor 437-441 Coventry Road Small Heath Birmingham

Trustees

M Asif (Chair) Zaka Ullah Saleem (Secretary) Imran Khan

Bankers

Al Rayan Bank 394 Coventry Road Birmingham B10 OUF

Independent examiner

Mainstream Accountancy Services 527 Moseley Road Birmingham B12 9BU

Ar Rahmah Trust | Annual 2021-2022 Report

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Message from Chairman

This year the COVID-19 pandemic and the measures taken to contain it have undoubtedly impacted the charity’s financial and economic activity. The charity has seen a decrease in the overall income in this financial period due to issues outside of the charity’s control.

The charity’s greatest setback was due to TSB bank unexpectedly closing the main bank account in January 2021, without any notice and neither any reason. This caused the temporary inability to transfer funds abroad because of the restrictions placed by Ar-Rayan Bank and consequently the very limited fund raising which resulted in a lower income than previous years. This also resulted in losing the many standing orders from the long-term regular donors because TSB bank did not give any time to transfer these standing orders to an alternative bank account. It seems that TSB's account closure affected the charity's reputation within the banking sector, as several attempts were made to open an alternative bank account with a couple of other banks, but the applications were refused without any reason given.

This resulted in reduced fundraising activities for various projects and increased partnerships to deliver the aid as donated by the public. During this period the charity also explored and implemented in the reduction of overheads to keep costs to a minimum until a permanent solution was found.

The covid pandemic restrictions also affected the overall income of the charity for the year end March 2022. The charity was unable to fully execute the fundraising plans. However, it continues to focus on core projects including food aid, water aid, orphans and poverty alleviation with core focus remaining on the needy people of Pakistan.

The COVID-19 pandemic measures in Pakistan impacted the charity’s work in continuing to provide education and accommodation for orphan girls in its school in Rawalpindi. Consequently, this operation was closed down.

From the 1[st] April 2021 to 31[st] March 2022 the following activities were carried out:

Income in Ramadan 2021 was £79,595.81 which was 63% lower than the previous year. However, the charity continued to generate funds in a limited manner and identified partners who could deliver aid on behalf of the charity. Al-Midrar Institute was identified as a partner on the ground in Pakistan who delivered the annual Ramadan projects.

Income in Ramadan 2021 was £79,595.81 which was 63% lower than the previous year however the charity continued to generate funds in a limited manner and identified partners who could deliver aid on behalf of the charity. Al Midrar Institute were identified as a partner on the ground in Pakistan who delivered the annual Ramadan project.

Ar Rahmah Trust | Annual 2021-2022 Report 3

The trust¢¢s are hoF¢ful th¢se obst&le5 can be ovucome in the following f￿￿ClaI year and the ¢haTity can resum¢ its wotk on the ￿n$t￿ctiOn of The Orphan Bowdillg Complex in WaTburton und its other ongoiti8 ¢hwitable ptujccts in Pakistan which lifditie for n)any very poor. vuln￿bk needy ￿¢Api¢nts. Mohammed Asif chairni￿ Truthe Ar Rahrnah Trust l Annual 2021-2022 Report 4

Highlights of the year

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About Ar-Rahmah Trust

Ar Rahmah Trust has steadily continued to expand its projects meeting the needs of orphans, widows, the poor and destitute across the world, providing them with education, health, food aid, livelihood support and most importantly empowering people with the essential knowledge and skills needed to build their own future with dignity and self-respect.

The charity aims to focus its attention on providing continuous and sustained assistance and support to orphans, poor and vulnerable women through sustainable development programmes, ensuring that they receive long term support and provision throughout the course of their lives, helping them to rebuild their future, as well as their self-esteem, bringing into their lives more optimism and purpose. Alongside this the charity also aims to prevent or in certain cases contribute to the prevention and relief of poverty across the world.

Objectives and activities

a. Summary of objectives

The objectives of the charity as set out in its Trust Deed are as follows:

  1. the advancement of education, relief of poverty and the promotion of good health anywhere in the world

  2. the relief of suffering amongst victims of natural or other kinds of disaster anywhere in the world

  3. for such general charitable purposes anywhere in the world as the trustees may deem fit from time to time.

b. Activities for achieving objectives

During the year, the charity achieved its objectives as stated in its governing document by undertaking the following charitable activities:

  1. Food aid

  2. Education

  3. Supporting orphans

  4. Healthcare

  5. Community empowerment

Structure, governance and management

a. Governing document

The charity is governed by its Trust deed which was adopted by the trustees on 2nd October 2007 and subsequently amended on 29th June 2008.

b. Method of appointment and induction of new trustees

New trustees are appointed by existing trustees and are briefed on their legal obligations under charity law, the content of the Trust Deed and recent performance of the charity.

c. Organisational structure and decision making

Ar-Rahmah Trust is a UK based charity that works with a number of partner organisation overseas through which it delivers programmes supporting Community Empowerment, Education, Food Aid, Healthcare and Orphans. The board of Trustees of the charity oversee the running of the charity on a day-to-day basis. All operational decisions are made at board meetings which are held frequently through the year.

d. Risk management

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems and procedures are in place to mitigate our exposure to those risks.

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Statement of Trustees' Responsibilities

The trustees are responsible for preparing the Trustees' Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to charities in England and Wales requires the trustee(s) 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 resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and to enable them to ascertain to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. 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 charity and financial information included on the charity's website in accordance with legislation in the United Kingdom governing preparation and dissemination of financial statements.

This report was approved by the Trustees on 15 January 2023 and signed on their behalf by:

M Asif Trustee

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Independent examiner's Report to the Trustees of Ar-Rahmah Trust l ￿port on the accounts of the Trnst for the year ended 31 M8rch 2022, which are set out on pages 9 10 18. Respective responsibilities of trustees and exaffliner Th¢ charity's tn]ste¢s are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not rcquired for this ycar under section 144(2) of the Charitics Act 2011 lthc 201 l Act) and that an independ¢nt cxamination is n¢Lded. It is my responsibiliry to.. examine the accounts under section 145 of the 2011 Act,. to follow the prix¢durcs laid down in ihe general directions given by th¢ commission und¢r s¢ction 14515}Ib) of the 2011 Act. lo state whethcr particular matters have com¢ to my att¢ntion. Basis of findependent examiner's statement My examination was carried out in accordanLe with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those ￿cordS. It also includes consideration of any urkusual itcms or disclosur¢s in the accounts and seeking explanations froin you as trustees concerning any such matters. The pr￿edureS undenaken do not pro￿lde all th¢ cvidenee that would be requi￿d in an audit and cons¢quently no opinion is givcn as to ivhctlier the account5 present a'true and fair vi¢w' and the report is limited to those matters s¢t out in the next statement. Independent examlner's statement In the Lourse ofmy examination, no matter has come to my attention.. which give5 me reasonable cause to believe that, In any material respect. the requirements: to keep accounting r¢cords in accordance with section 130 of the 2011 Aci and to prepare accounts which accord with the accounting records and comply with the accounting requiiem¢nts of the 2011 Act have not been met or to which, in my opinion. attention should be drawn in order to enable a proper undeistanding of the accounts to b¢ reached. F B B Galla Bsc (Hons), FCA MAS (Bham) Ltd TIA MaEnstrcam Accountancy Services New Inn Business Cenrre 527 Moseley Road Binningham B12 9BU 15 January 2023 Ar Rahmah Trust | Annual 2021-2022 Report

Statement of financial activities

for the year ended 31 March 2022

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
Note
£ £ £ £
Incoming and endowments
Donations 2 30,109
144778		 174,887 503,635
Charitable activities 3 - - - -
Other - - - -
Total incoming resources 30,109
144778		 174,887 503,635
Expenditure
Raising funds 4 23,496
13,990		 37,486 79,712
Charitable activities 5 20,196
41,231		 61,427 220,695
Total resources expended 43,692 55,221 98,913 300,407
Net incoming resources before transfers (13,583) 89,557 75,974 203,228
Gross transfers between funds 14 - - - -
Net movement in funds for the year (13,583) 89,557 75,974 203,228
Total funds brought forward 14 49,586 538,752 588,338 385,110
Total funds carried forward 14 36,003 628,309 664,312 588,338

All activities relate to continuing operations.

The notes on pages 11 to 18 form part of these financial statements.

Ar Rahmah Trust | Annual 2021-2022 Report 9

Balance sheet at 31 March 2022

2022 2021
Note
£ £
Fixed assets
Tangible assets 11 1,034 782
1,034 782
Current assets
Debtors 12 11,784 34,287
Cash at bank and in hand 652,330 561,891
664,114 596,178
Creditors: amounts falling due within one year 13 (836) (8,622)
Net current assets 663,278 587,556
Net assets 664,312 588,338
Charity Funds
Unrestricted Funds 14 36,002 49,586
Restricted Funds 14 628,310 538,752
Equity shareholders' funds 664,312 588,338

The financial statements were approved by the Trustees on 15 January 2023 and signed on their behalf by

M Asif

Trustee

Ar Rahmah Trust | Annual 2021-2022 Report

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Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

1.1. Basis of preparation of financial statements

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

Ar Rahmah Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2. 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 the restatement of comparative items was required.

At the date of transition to FRS 102 there were no changes in accounting policies that had an impact on previously reported balances under UK GAAP. Consequently, no restatement of previously reported balances under the previous GAAP was required.

1.3. Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

1.4. Donated services and facilities

Donated professional services and donated 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. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the trustees' annual report for more information about their contribution.

On receipt, donated professional services and donated 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.

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1. Accounting policies (continued)

1.5. Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations, gifts and grants that provide core funding or are of general nature, are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income from Charitable Activities - Including income recognised as earned from the related goods or services which are provided.

1.6. Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Charitable Activities include those costs that are directly related to the objectives of the charity.

Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements.

Support Costs for a single activity are allocated directly to that activity. Where support costs relate to several activities they have been apportioned on the basis of resources consumed by those activities. In allocating the support costs, the trustees have ensured that the costs are expended utilising the unrestricted funds available and consequently no restricted funds have been used in this respect.

1.7. Tangible fixed assets and depreciation

All assets costing more than £100 are capitalised.

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures and fittings - 15% reducing balance Computers and office equipment - 35% straight line on cost

1.8. Taxation

As a registered charity, the charity is exempt from Income and Corporation tax to the extent that its income and gains are applicable to the charitable purposes only.

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Notes to the financial statements

for the year ended 31 March 2022 (continued)

2. Income from donations

2. Income from donations
Unrestricted Restricted Total Total
funds funds funds funds
2022 2022 2022 2021
£ £ £ £
Donations 19,712 144,778 164,490 473,023
Gift Aid 10,397 - 10,397 30,612
30,109 144,778 174,887 503,635
3. Income from charitable activities
Unrestricted
Restricted		 Total Total
funds
funds		 funds funds
2022
2022		 2022 2021
£ £ £ £
Community Empowerment -
-		 - -
Food Aid - - - -
-
-		 - -

4. Raising funds

4. Raising funds
Unrestricted Restricted Total Total
funds funds funds funds
2022 2022 2022 2021
£ £ £ £
Fundraising and publicity 23,496 13,990 37,486 79,712
23,496 13,990 37,486 79,712

Ar Rahmah Trust | Annual 2021-2022 Report 13

Notes to the financial statements

for the year ended 31 March 2022 (continued)

5. Analysis of resources expended by charitable activity

Expenditure can be summarised as:

Expenditure can be summarised as:
Unrestricted Restricted Total Total
funds funds funds funds
2022 2022 2022 2021
£ £ £ £
Community empowerment 1,211
2,498		 3,709 27,494
Education -
-		 - 7,041
Emergency relief -
-		 - 9,382
Food aid 11,946
24,212		 36,158 72,233
Healthcare - 4,949
Supporting orphans - 51,271
Water aid 7,039
14,521		 21,560 48,325
20,196 41,231 61,427 220,695

6. Analysis of resources expended by activity type

Activities Grant Support and Total Total funds
undertaken funding of governance funds
directly activities costs
2022 2022 2022 2022 2021
£ £ £ £ £
Cost of generating volume
income
Fundraising and publicity 12,299 - 25,187 37,486 79,712
Charitable activities
Community empowerment 240 1,948 1,521 3,709 27,494
Education - - - - 7,041
Emergency relief - - - - 9,382
Food aid 21,332 14,826 36,158 72,233
Healthcare - - - - 4,949
Supporting orphans - - - - 51,271
Water aid - 12,720 8,840 21,560 48,325
240 36,000 25,187 61,427 220,695
Total 12,539 36,000 50,374 98,913 300,407

Ar Rahmah Trust | Annual 2021-2022 Report 14

Notes to the financial statements

for the year ended 31 March 2022 (continued)

7. Grants payable

7. Grants payable
Grants to Grants to
Institutions individuals
£ £
Community empowerment 1,948 -
Education - -
Emergency relief - -
Food aid 21,332 -
Healthcare - -
Supporting orphans - -
Wateraid 12,720 -
36,000 -
Recipients of institutional grant(s) were as follows: Total Total
2022 2021
£ £
Ar-Rahmah Trust (Pakistan) - 128,859
Al-Midrar 13,180 -
Ethar Relief - 4,000
Global Relief Trust - 1,825
Muslims In Need 22,820 23,885
Saba Relief - 2,421
36,000 160,990
8. Support and governance costs
Fundraising costs Charitable Total Total
activities funds funds
2022 2022 2022 2021
£ £ £ £
Support costs
Management and administration 21,287
21,287		 42,574
62,055
Governance costs
Legal costs 3,900
3,900		 7,800
5,400
Total 25,187
25,187		 50,374
67,455

Ar Rahmah Trust | Annual 2021-2022 Report 15

Notes to the financial statements

for the year ended 31 March 2022 (continued)

9. Net incoming resources

9. Net incoming resources
2022 2021
This is stated after charging: £ £
Depreciation of tangible fixed assets-owned by the charity 398 309
398 309
10. Staff costs
2022 2021
£ £
Wages and salaries 1,976 25,022
Social security costs 171 2,068
2,147 27,090

During the year, the charity had 1 (2021: 2) full time equivalent and a number of casual employees.

The Trust consists of its key management personnel, the trustees, and the Chief Executive Officer. The total employment benefits paid to its key management personnel were £1,976 (2021: £25,022). No employees had benefits in excess of £60,000 (2021: Nil).

During the year, no trustees received any remuneration or benefits in kind (2021: Nil).

During the year, the trustees received £796 in reimbursement of expenses (2021: £298).

11. Tangible fixed assets

11. Tangible fixed assets
Assets under the
course of
construction		 Fixtures &
fittings		 Computers &
office
equipment		 Total
£ £ £ £
Cost
At 1 April 2021 - 995 2,503 3,498
Additions - - 650 650
At 31 March 2022 - 995 3,153 4,148
Depreciation
At 1 April 2021 - 995 1,721 2,716
Charge for the year - - 398 398
At 31 March 2022 - 995 2,119 3,114
Net book value
At 31 March 2022 - - 1,034 1,034
At 31 March 2021 - - 782 782

Ar Rahmah Trust | Annual 2021-2022 Report 16

Notes to the financial statements

for the year ended 31 March 2022 (continued)

12. Debtors

12. Debtors
2022 2021
£ £
Other debtors 10,384 29,737
Prepayments & accrued income 1,400 4,550
11,784 34,287

13. Creditors: amounts falling due within one year

2022 2021
£ £
Trade creditors 695 6,786
Other creditors - 1,580
Salaries and social security 141 256
Accruals & deferredincome - -
836 8,622

Ar Rahmah Trust | Annual 2021-2022 Report 17

Notes to the financial statements

for the year ended 31 March 2022 (continued)

14. Statement of funds

Year ended 31 March 2022

Year ended 31 March 2022
Brought Incoming Resources Transfers Carried
forward resources expended in/(out) forward
£ £ £ £ £
Unrestricted funds 49,586 30,109 (43,692) - 36,003
Total unrestricted funds 49,586 30,109 (43,692) - 36,003
Restricted funds
Ar-Rahmah Mosque fund - -
Family sponsorship 4,741 4,916 (2,391) 7,266
Fidyah 2,090 931 (559) 2,462
Health 13,022 3,902 (1,429) 15,495
Orphans 369,778 44,557 (12,222) 402,113
Pakistan Need to Feed 6,571 - - 6,571
Quran Memorisation - 5,720 (115) 5,605
Qurbani - 4,994 (4,994) -
Ramadaan food programme 29 6,287 (6,228) 88
Self-reliance scheme - 931 (6) 925
Syria 126 - - 126
Uyghur Refugees 1,068 - - 1,068
Yemen Need to Feed 1,109 190 (4) 1,295
Water pump 40,279 10,335 (15,241) 35,373
Zakat 96,938 56,399 (10,437) 142,900
Zakat Al-Fitr 530 1,105 (1,475) 160
Where Most Needed 2,471 4,512 (120) 6,863
538,752 144,779 (55,222) - 628,309
Total funds 2022 588,338 174,887 (98,913) - 664,312

Ar Rahmah Trust | Annual 2021-2022 Report 18