Charlty reglstration number 1150090 Company registration number 08208466 (England and Wales) MAHABBA NETWORK ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Caladine Chartered CertiFied Accountontrs
MAHABBA NETWORK LEGAL AND ADMINISTRATIVE INFORMATION Trusts85 K Knight P Simpson l Gardner Secretary Scox Charlty number 1150090 Company number 08206456 Prfnclpal addr•g1 Reach Conference Centre River5id8 Court Pride Park Derby Derbyshire DE24 8HY Reglsterod offlce Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF Independent ex•mlnor John CaladSne FCCA CTA FCIE Caladine Limited Chantry House 22 Upperton Road Eastboume East Sussex BN21 1BF
MAHABBA NETWORK CONTENTS Page TruBt8es' report Statement of trustees, responslblllties Independent examlnerfs report Statsment of flnancSal actlvltle8 statement of financial posltion Notes to the Itnanclal statements 7-12
MAHABBA NETWORK TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The trustees present their annual report and financial statements for the year ended 31 August 2024. The financial statement5 have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the chanty's Memorandum and Artlcles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charilles preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) leffectiV8 1 January 2019).. Obiectlves and actlvltle8 The charity objects are for the public benefrt to advance the Chrlstian Falth in accordance with the Statement of Beliefs in the United Klngdom or the World as the TTUStees may from time to time think fit, and to fulfil such other purposes which are exclusively charitable accordlng to the Law of England and Wales and are connected with the charitable work of the Charity. PubliG benefit The trustees have complled wlth their duty In section 1715) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission and conslder th8 objects and artivities of the Charlty to be for Public B8nefit. A¢hlevements and perfonnance Mahabba is B gr85sroot8-led nelwork focussed on encouraglng Christlans to pray for Muslims as well 88 facilltating sultable practical out-workings for sharing their faith and building relationships. The following are sorne highlights from the past year, Our Network followed on from the previous in-per50n Vislon Day with a fulty, dlgital and online V151on Hour in June 2024. We gathered even more people and heard encouragements, storles and shared vision for praying for and interacting with Muslims: "The experience of being there was great and l enjoyed watching the short stories." agaln facllltated various onllne Workshops and serninars vi8 Zoom. These wer8 predomlnantly delivered by volunteers from within the Nemiork with a partlcular passlon or experience. Among others, one sought to help ChTiStians understsnd how to engage wlth Muslims in a predominantly hostlle atmosphere. Another focussed on how to support Muslims when they had suffered a bereavement in their famity Mahabba again made Ramadan an annual focus for gathering Christians lo pray for Muslims across the 30 days. Different Mahabba groups from across the Neork took tums to host and lead a central gathering for prayer and discussion during the rnonlh Another highlight was a campalgn led by the Prayer Clrcle (a group of volunteers that facilitates the actlvity of a partlcular are8 in the Network): namely a seven-day prgyer challenge to increase awareness of reaching Musllms among Christians who have never considered before considered it= 'A realty great encouragement which has continued to help me to keep praying & have conversatlons with my Muslim neighbours & colleagues.. Flnanclal review The charity recorded a deficit for the year of £2,808 (2023= deficlt of £5,203). At the financial year end the charity held funds of £17,529 {2023'. £20,337). The charity has a reserve policy of maintaining reserves equivalent to at least three months operating expenditure. The charity ha5 met this policy throughout the year. Major risk5 The trustees have a55essed the major risks to which the charity is exposed, and are satisfied that Sy51ems are in place to mitigate exposure to the major risks. Structure, governance and managernent The charity is a company limited by guarantee, incorporated on 7 September 2012.
MAHABBA NETWORK TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The trustees, who are also the directors for the purpose of company law, and who s8rved during the year and up to the date of 51gnature of the financial statements were-. A Dimmock (Treasurer) K Knight P Simpson l Gardner N Sultan (Reslgned 6 December 2023) (Reslgned 23 June 2024) Recruitment and appointment of trustees trustees are appointed by the existing ones and su5tsble tralnlng and Induction is provided. None of the tru5te&s has any beneficial Interest In the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a wlnding up. The trustees. report was approved by the Board of Twsteas. Katd Kni.9At Pkijlip Sitqpson K Knight Trustee P Slmpson Trustee 7 March 2025
MAHABBA NETWORK STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The trustees, who are also the directors of Mahabba NebNork for the purpose of company law, are responsibl8 for preparing the Trustee5' R8POrt and the financlal ststements in accordance with applicable law and United Kingdom Accounting Standards (United Klngdom Generally Accepted Accounting Practice). Company Law 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 resources, including the incorne and expenditure, of the charltable company for that year. In preparing these financial statements. the trustees are required to,. select suitable accountlng pollcies and then appty them ¢onslst8ntly' observe the methods and princlples In the Charities SORP., make judgements and esllmates that are Teasonable and prudent., state whether appllcable UK Accounllng Stsndards have baan followed, sublect to any materlal departures disclosed and explained in the financlal statements., and prepare the financlal Statements on the golng concern basls unless It Is inapproprlat8 to presume that the charity will continue In operation. The trustees are responslble for keeping adequate accounting records that dlsclose wlth reasonable accuracy at any time the financlal positlon of the charity and enable them to ensure that the financlal Statements comply with the Companles Act 2006. 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.
MAHABBA NETWORK INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MAHABBA NETWORK I report to the trustees on my examlnation of the financial statements of Mahabba Network (the charlty) for the year ended 31 August 2024. Responslbllltles and bas18 of report As the trustees of the charity {and also its direclors for the purposes of company law) you are responslble for the preparation of the financial statements in accordance wlth the requirements of the Companies Act 2006 (the 2006 Ad). Having satlsfied myself that the financial statements of the charlty are not required to be audited under Part 18 of the 2006 Act and are eligible for Independent examination, I report in respect of my examination of the charity's financial statements carried out under sectlon 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examlnation I have followed all the applicable Directlons given by the Charlty Commission under section 145{5>{bl ofthe 2011 Act. Independent examIne5 Statèment I have completed my examlnatlon. I confirn that no matters have come to ffly attentlon In connection with the examination giving me cause to believe that in any material respect.. accounting records were not kepl In respect of the charity as requlrad by section 386 of the 2006 Act; or the financial statements do not accord wilh those recordB', or the financial statements do not Gompty with the accounting requlrements of 6ectlon 396 of the 2006 Act other than any requirement that the accounts glve 8 tru8 and fair view whlch Is not a matter consldered as part of an Independent examination., or the financlal statements have not been prepared In accordance with the methods and prlnciples of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financlal Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021. I have no concems and have come across no other matters in connection with the examlnation to whlch attentlon should awn In this report In order to enable a proper understanding of the flnancial statements to be aChed. John Caladlne FCCA CTA FCIE Chartered Certlfled Accountant Caladine Llmited Chantry House 22 Upperton R08d Eastbourne East Sussex BN21 1BF Dated.. 7 March 2025
MAHABBA NETWORK STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 Unrestrlcted fund5 2024 Unrestrlcted funds 2023 Note• Income frorn: Donatlons and legacles 25,114 23,313 Total Incoma 25,114 23.313 Expendlture on: Charitsble actlvities 27,922 28,516 Tolal expondlture 27.922 28,518 Not oxpendltur• and movement In fund• (2,808) 15,203) Reconclllatlon of funds: Fund balances at 1 Septefflber 2023 20,337 25,540 Fund balancas at 31 Augu8t 2024 17,529 20,337 The statement of financlal activities Includes all galns and losses recognijed In the year. All incom8 and expenditure derive from conts'nuing actlvitieB.
MAHABBA NETWORK STATEMENT OF FINANCIAL POSITION AS AT31 AUGUST 2024 2024 2023 Note Current assets Trade and other receivables Cash at bank and in hand 10 82 20,327 21,777 20,409 (2,880) 21,777 11,440) Current Ilabllltle8 11 Net current assets 17,529 20.337 The funds of the charlty Unrestrlcted funds 12 17,529 20,337 17,529 20,337 The company Is entitled to the exemptlon from the audlt r8qulrement contalned In 88Ction 477 of the Companies Act 2006, for the year ended 31 August 2024. The members have not required the company to obtsin an audit of its nancial statements for the year In question In accordan with section 478. The dlrectors acknowledge their responsibilbtles for cornplying with the requirements of the Companies Act 2006 wlth respect to arxounling records and the preparatlon of financlaS statement6. The rnembers have not requlred the company to obtsin an audit of its financial statements for the year ID questlon In accordance with sectlon 478. These financlal statements have been prepared In accordance with the provlslons applicable to companies 8ubJect to the sm811 companies reglme. The financlal $t8t8ments were approved by the trustees on 7 March 2025 td Kni,9ht Phillip SifqPSO K Knight Trustee P Simpson Trustee Company reglstration number 08206456 (England and Wales)
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies Company Infomiatlon Mahabba Network is a private company limited by guarantee incorporated in England and Wales. The reglstered office is Chantry House, 22 Upperton Road, Eastbourne. East Sussex, BN21 1BF. 1.1 Accountlng convention The financial statements have been prepared In accordance with the charitys Memorandum and Articles of Associatlon, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicab18 to charities preparing their accounts in accordance with the Financlal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) {effective 1 January 20191" The charity Is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletln 1 not to prepare a Ststement of Cash Flows. The financlal statements are prepared In sterling, whlch Is the functional currency of the charlty. Monetary amounts in these flnancial statements are rounded to the nearest £. The financial statement5 have been pr&pared under the hlstorlcal co8t conventlon. The princlpal accounting policies adopted are 8et out below. 1.2 Golng concern At the time of approving the financial statements, the trustees have a reasonable expectatlon that the charity has adequate resources to continue In operatlonal existence for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accountlng in preparlng the financial Statement8. 1.3 Charltable fund8 Unrestricted funds are available for use at the discretion of the trustees In furtherance of thelr charitable oblectlv88. Restrfcted funds are subject to speclfic conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are $81 out in the notes to the financial statements. 1.4 Income Income is recognised when the charity 15 legally entitled to it after any perfomance conditions have been met, the amounts can be measured rellably, and St 15 probable that income will be received. Cash donations are recognised on receipt. other donations are recognised once the charity has been notified of the donatlon, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognlsed at the time of the donation. 1.5 Expendlture Expenditure is recognised once there is 8 legal or constructive obllgation to transfer economic benefit to a third paty, 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 classified by activity. The c051s of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct Costs attributable to a single activity are allocated directly to that activty- Shared c051s which contribute to more than one aclivity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis conslstent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies {Contlnued} Expenditure is recogn15ed when an obligatlon exist5, payment is probable and the amounl is me8surable. Resources expended include irrecoverable VAT. 1.6 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposlts held at call wlth banks, other Short-le liquid investments with original maturities of Ihree months or less, and bank overdraft5. Bank overdrafts are shown wlthin borrowings in current liabilit18S. 1.7 Flnanclal instruments The charity has elected to apply the provisions of Section 11 '8aslc Financlal Instruments, and Section 12 'Other Financlal Instruments Issues, of FRS 102 to all of its financial Instruments. Financial Instruments are recognlsed in the charity's balance sheet then the charity becomes paty lo the Gontractual provlsion8 of the Instrumenl. Flnanclal assets and Ilabilities are offset, wlth the net amounts presented in the financlal statements. when Iherels 818gally enforceable rlght to set off the re¢ognlsed amounts and there Is an intentlon to settle on a net basis or to realise the asset and settle the Ilability simultaneou51y. Basic flnancial assets Baslc financlal assets, whlch include trade and olher receivables and cash and bank balances, are Inlllally measured at transaction price includlng transaction costs and are subsequently carried at amortised cost using the effective Interest method unless the arrangement constitutes a flnancing transaction, where the transaction is measured al the psent value of the future receipts discounted at a markel rate of Interest. Flnancial assets classlfied as recelvable within one year are not amortised. Baslc financial Ilabllitie5 Baslc financlal liabililies, Including trade and other payables and bank loans are initially recognised at transactlon price unless the arrangement constitutes a financing transaction, where the debt instrument is measured al the present value of the future payments discounted at a market rate of Interest. Financial liabllities classified as payable within one year are not amortised. Debt Instruments are subsequently Carrled at amortised cost, using the effectlve interest rate method. Trade payables are obllgations to pay for goods or servlces that have been acquired in the ordinary Course of operations from suppllers. Amounts payable are classified as current liabilities if payment is due wlthln one year or less. If not, they are presented a5 non-current liabilities. Trade payables are recognised initially at Iransaction price and subsequently measured at amortlsed cost using the effective interest method. Derecognltlon of financlal Ilabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.8 Employee beneflts The cost of any unused holiday entltlement is recognised in the period In which the employee's services are ceived. Terminatlon benefits are recognised immediately a5 an expense when the charity is demonstrably committed to terminate the employmenl of an employee or to provide temiination benefit5. 1.9 Taxatlon The twstees consider that the charity is not Ilable to United Kingdom corporation taxation on its chariiable activities.
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Critical accountlng estimatès and Judgements In the application of Ihe charity'5 accounting policies. the trustees are required to make judgements, estimates and assumption5 about the carrying arnount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assurnptions are based on historical experience and other factors that are consldered to be relevant. Actual results may differ from these estimates. The estimates and undedylng assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recogni56d In the period in which the estimate Is revised where Ihe revision affects only that perlod, or in the period of the revlslon and future Perlods where the revlslon affects both current and future periods. Income from donatlon8 and legaclas Unrestrlcted Unrestrlcted funds fund$ 2024 2023 Donations and glfts Grant5 14,114 11,000 15,813 7,500 25,114 23,313 Exp•ndlture on charltable actlvltle8 Charltsble •ctlvltles Charitable activities 2024 2023 Dlre¢t costs Webslte and Social Media Conference8 and Events Travel Sundry Expenses 7,892 952 916 429 7,303 2,918 977 273 10,189 11,471 Grant funding of activities (see note 5) 500 1,500 Share of 8UPPOrt and governance costs (see note 6) Support Govemance 15,578 1,655 13,852 1,693 27,922 28.516 Analysis by fund Unrestricted funds 27,922 28.516
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Grants payable Charltable activitles 2024 Charitable activities 2023 Grants to Institutions: Fountsins Church Eastons Chrfstian Famlly Centre 1,000 500 500 1,000 Grants to Individuals 500 500 1,51JO Support cogtg allocated to •ctlvltles 2024 2023 Rent Insurance Support- Contractors Postage and statlonary Subscdptions Bookkeeping Governance costs 995 132 12,400 321 1,370 360 1,655 1,095 88 12,000 296 225 150 1,693 17,233 15,545 Anal sed be ee Charitable actlvilies 17,233 15,545 2024 2023 Govemance costs comprlse: Accountancy Bank tharges Independent Examination 988 215 452 988 253 452 1,655 1,693 Governance costs above includes payrnents lo the Independent Examination of £452 12023: £452) for Independent Examination work and £98812023= £988) for other services. 10-
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Trustees Durlng the year two trustees received expenses for travel totaling £106. During the year truste85 made aggregate donations of £nll {2023.' £60) Employees There were no employees during the year. 2024 Number 2023 Number Total There were no employees whose annual remuneration was more than £80,000. Taxatlon The charlty Is exempt from taxatlon on bts activities because all it8 income Is applled for charltsble purposes, 10 Trade and other recelv•blo• 2024 2023 Amounts falllng due wlthln onè yoar: Other recelvables 82 11 Current Il•bllltles 2Q24 2023 ArKTuals and deferred Income 2,880 1.440 12 Unrestrlcted funds The unrestricted funds of the chartty comprlse the unexpended balance5 of donations and grants whlch are not subject to specific condltions by donors and grantors as to how they may be used. These include deslgnated funds which have been set aside out of unrestricted funds by the trustees for specrfic purposes. At1 September 2023 Incoffllng resources Re8ourco5 axpended Tran8ferg At 31 August 2024 Generosity (tithe) fvnd General funds 5.312 15,025 (500) (27,422) 4.812 12.717 25,114 20,337 25,114 {27,922) 17,529 11
MAHABBA NETWORK NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 12 Unrestrlcted funds Icontlnued Prevlou3 year: At1 Sepiember 2022 Incomlng resources Resourc08 expended Tran¥fevs At 31 August 2023 Generosity (tithe) fund General funds 5,312 15,312) 5,312 15,025 25.540 23,313 (28,516) 25,540 23,313 28,518 20,337 To ensure clear presentatlon in the accounts, the trustees have declded to show the Generosbty (tithe) fund sepérately. This fund represents monies set aside by the trustees to be used for speclfic project upon receipt of approprfate grant appllcatlons. PreVIous these funds have been incorporated wlthln General Funds, but golng forwards this will be Itemised seperately and this 1$ reflected in the transfrr above. 13 Relat•d party tran8actlon• There were no di8closable relatsd paty transactions during the year. 12