OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-12-31-accounts

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

Company Number: 09982930 Charity Number: 1166025

Issa Foundation

Trustees’ Report and Accounts

Financial Statements 31 December 2024

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

CONTENTS

Page
Charity information 1
Trustees’ Report (Including Directors’ Report and Strategic Report) 2 – 11
Independent auditors report to the Members 12 – 14
Statement of financial activities (Including Income and Expenditure Account) 15
Balance sheet 16
Cash flow statement 17
Notes to the financial statements 18 - 32

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

CHARITY INFORMATION

Trustees M Issa
Z Issa
Company Secretary J Patel
Registered office Waterside Head Office
Haslingden Road
Guide
Blackburn
BB1 2FA
Auditor MHA
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
Company registration number 09982930
Charity registration number 1166025

-1-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees, who are also directors of the charity for the purposes of the Companies Act, present their report and the audited financial statements of the charity for the year ended 31 December 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Structure, Governance and Management

The Issa Foundation is a registered UK charity (No. 1166025), established under a trust deed dated 14 March 2016. It was founded by brothers Zuber Issa and Mohsin Issa.

The charity is supported by a voluntary advisory sub-committee and a secretary, who contribute valuable guidance on project selection and delivery. The Trustees and sub-committee meet quarterly, with the Trustees making decisions based on sub-committee recommendations. The sub-committee comprises individuals with diverse expertise in areas including construction, healthcare, and charitable operations.

Members of the sub-committee are:

Trustees and Key Management Personnel

The Trustees, who are also directors of the charitable company, served throughout the reporting period and their names are listed on page 1 of this report.

The charity considers its key management personnel to include the two Trustees, who are responsible for key decisions regarding grant-making, as well as the members of the voluntary advisory sub-committee.

New Trustees are appointed by the existing Trustees for a term of five years, with the option to be reappointed. Trustees receive no remuneration and are encouraged to declare and register any potential conflicts of interest with the sub-committee. All new Trustees receive a formal induction.

Risk Management

The Trustees have identified several major risks to the organisation, including:

To address these, the Foundation has implemented enhanced security measures and rigorous due diligence processes that cover every stage of project delivery.

Given that the Foundation works in collaboration with established charitable partners operating on the ground in various regions, it remains exposed to some financial risk. However, the Trustees have put in place comprehensive procedures to minimise these risks, including careful vetting of partner organisations, monitoring of fund usage, and regular audits of funded activities.

-2-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Due Diligence and Grant-Making Process

Objectives, Activities and Public Benefit

The charity's core mission is to advance education, healthcare, and employment opportunities for people in need, with a particular focus on disadvantaged communities. By supporting initiatives that address these critical areas, the charity also remains open to funding other impactful projects as identified and approved by the Trustees.

In 2024, the charity disbursed over £3.57 million (2023: £3.97 million) to support initiatives across the following categories:

Category Spent (£)
Education
Food
Health
Housing
Social		 542,877
1,143,235
244,767
1,303,204
323,746
3,557,829

Strategic Approach

Our approach begins with the provision of direct humanitarian aid—food, clean water, medical care, and emergency shelter. This immediate support forms the foundation for long-term development, empowering communities to transition towards self-sufficiency and resilience.

We are committed to supporting orphans, widows, and those in need—irrespective of race, culture, or religion—with compassion, dignity, and respect

Grant-Making Policy

The Issa Foundation invites proposals from registered charitable organisations delivering humanitarian projects that support communities, particularly those serving disadvantaged groups. All proposals are reviewed by a dedicated sub-committee, which evaluates the merits of each project and advises the Trustees on the appropriate level of funding to be awarded.

The Trustees confirm that, in setting and reviewing the grant-making policy for the year, they have taken into account the Charity Commission’s general guidance on public benefit. This guidance continues to inform the charity’s strategic aims and future activities.

Social Investment Policy

Grant applications are assessed individually by the Trustees with support from the sub-committee. In cases where an organisation’s objectives align closely with those of the Issa Foundation and the organisation demonstrates the capacity for mid- to long-term financial sustainability, the Trustees may offer support through a concessionary loan. These loans, which are repayable on demand, are designed to encourage financial independence while supporting impactful initiatives.

-3-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Strategic Report

Achievements and Performance

The Trustees of the Issa Foundation express their sincere appreciation to the sub-committee for their invaluable contributions throughout the year.

During the reporting period, the Foundation delivered impactful projects in India, Malawi, and the United Kingdom. We continued our commitment to supporting the most vulnerable through initiatives focused on healthcare, education, livelihoods, shelter, and food provision. These efforts were made possible through the support of our partners and the unwavering dedication, leadership, and passion of our Trustees and subcommittee members.

One of the highlights of the year was our ongoing support for the Maone Vocational Training Centre (MVTC). MVTC offers apprenticeships in essential construction trades including carpentry, joinery, bricklaying, and plumbing. This programme is designed to equip young men and women with practical skills that foster selfreliance and provide a pathway out of poverty.

The Trustees extend heartfelt thanks to all our partners, volunteers, and supporters whose contributions have made these achievements possible.

Financial review

The charity’s main source of income is voluntary donations and interest received on unexpended donations. Donations received during the year amounted to £8,569,765 (2023: £7,512,050). The balance held within the bank account has resulted in interest generated during the year of £1,042,620 (2023: £4,869), which has been transferred to a separate restricted interest fund as can be seen in note 16 to the accounts.

Grants totalling £3,557,829 (2023: £3,974,348) have been awarded to projects. Details of these projects can be found in note 7 to the accounts.

Issa Foundation has been predominantly funded by the Trustees of the Foundation, and the related Gift Aid claims on their donations, for the purpose of meeting the charity’s aims and objectives.

The current reserves are to be assigned to charitable projects as and when they have been identified, vetted and approved.

Reserves policy

Unrestricted funds

Lillah

Lillah comprises the gift aid recovered on Zakat donations. The Lillah fund balance at 31 December 2024 of £10,276,947 (2023: £9,859,248) will be applied to future awards and operating costs of the charity. The Lillah fund includes fixed assets of £21,796,823 (2023: £17,980,468).

Zakat

Donations collected on annual religious grounds from able Muslims to help the poor. The Zakat fund balance at 31 December 2024 of £15,320,891 (2023: £10,823,415) will be applied to future awards.

Interest

Funds generated from interest received on the amounts held within the charity bank account and the bank accounts of individual Muslims. The interest fund balance at 31 December 2024 of £1,152,923 (2023: £142,420) will be applied to future awards under the guidance of religious ruling.

The level of funds is reviewed before grant commitments are made to ensure that the balance of these funds is always sufficient to cover current and proposed grant commitments and ongoing administration costs. The Trustees are concerned to maximise the benefit to disadvantaged communities of their grant making policy.

All unrestricted reserves are to be used on future charitable projects.

-4-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Fundraising standards information

The charity does not raise funds from the general public.

Plans for future periods

The principal objective of Issa Foundation is housing, advancement of education, health, empowering those in need, in particular disadvantaged individuals and communities, by supporting projects that address these issues.

The charity will continually identify projects from time to time as determined by our partners, trustees and volunteers.

Auditor

MHA previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. MHA have indicated their willingness to be reappointed as statutory auditors.

Trustees’ Responsibilities

The Trustees, who also serve as the directors of the Issa Foundation for the purposes of company law, are responsible for preparing both the Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice).

Under company law, the Trustees are required to prepare financial statements for each financial period that provide a true and fair view of the state of affairs of the charitable company and of its incoming resources and how those resources are applied, including its income and expenditure for the period.

In preparing the financial statements, the Trustees must:

The Trustees are also responsible for maintaining adequate accounting records that accurately reflect the financial position of the charity at any given time, and for ensuring that the financial statements comply with the Companies Act 2006. Furthermore, they are responsible for safeguarding the charity’s assets and taking reasonable steps to prevent and detect fraud or other irregularities.

-5-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Ramadan Food Distribution 2023

Borehole 2023

-6-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Ramadan 2024 Food Packs Malawi

-7-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Valan PS

-8-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

Cataract Malawi 2023

100 E Rickshaw UP India

-9-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

100 E rickshaw Assam India

200 LCH Assam India

-10-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2024

In so far as the Trustees are aware:

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

September 26, 2025

This report was approved by the Trustees on ……………………………………

………………………………………………………..

Z Issa

Trustee

-11-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Issa Foundation (the ‘charitable company’) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Trustees' Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

-12-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2024

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-13-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ISSA FOUNDATION FOR THE YEAR ENDED 31 DECEMBER 2024

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/descriptionof-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

MHA

14 Mannin Way Lancaster Lancashire LA1 3SW

September 29, 2025 Date ………………………

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)

MHA is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

-14-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Income and endowments from:
Donations and legacies
2
Income from investments
3
Other income
4
Total income and endowments
Expenditure on:
Charitable activities
5
Total expenditure
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Net movement in funds		 Unrestricted
funds
£
8,569,765
1,238,876
102,387		 Restricted
funds
£
-
-
-		 Total funds
Total funds
2024
2023
£
£
8,569,765
7,512,050
1,238,876
109,042
102,387
29,832
9,911,028
7,650,924
3,985,350
4,223,338
3,985,350
4,223,338
5,925,678
3,427,586
20,825,083
17,397,497
26,750,761
20,825,083
9,911,028 -
3,985,350 -
3,985,350 -
5,925,678
20,825,083		 -
-
26,750,761 -

All income and expenditure derives from continuing activities.

The statement of financial activities includes all gains and losses recognised in the period.

The notes on pages 18 to 32 form part of these financial statements.

-15-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

BALANCE SHEET

AS AT 31 DECEMBER 2024

Note
Fixed assets:
Tangible fixed assets
11
Investment property
12
Current assets:
Debtors
13
Current asset investments
14
Cash at bank and in hand
Liabilities:
15
Net current assets
Net assets
Charity funds:
Unrestricted funds
16
Restricted funds
16
Creditors: amounts falling
due within one year
Total assets less current
liabilities		 Unrestricted
funds
£
15,244,188
6,552,635
79,626
525,000
4,454,377
5,059,003
105,065		 Restricted
funds
£
-
-
-
-		 Total
funds
2024
£
15,244,188
6,552,635
79,626
525,000
4,454,377		 Total
funds
2023
£
12,412,490
5,567,978
62,103
525,000
2,384,291
-
-		 5,059,003
105,065		 2,971,394
126,779
4,953,938
26,750,761		 -
-		 4,953,938
26,750,761		 2,844,615
20,825,083
26,750,761 - 26,750,761 20,825,083
26,750,761
-		 -
-		 26,750,761
-		 20,825,083
-
26,750,761 - 26,750,761 20,825,083

These financial statements were approved and authorised for issue by the Board of Trustees on September 26, 2025 ……………….and signed on its behalf by:

Z Issa Trustee Company registration number: 09982930

The notes on pages 18 to 32 form part of these financial statements.

-16-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2024

Total funds Total funds
2024 2023
Note £ £
Cash flows from operating activities:
Net cash generated from operating activities A 4,647,565 3,351,871
Cash flows from investing activities:
Rent and interest from investments 1,238,876 109,042
Payments to acquire fixed assets (3,816,355) (3,862,142)
Net cash absorbed by investing activities (2,577,479) (3,753,100)
Change in cash and cash equivalents in the reporting period 2,070,086 (401,229)
Cash and cash equivalents at the start of the reporting period 2,384,291 2,785,520
Cash and cash equivalents at the end of the reporting period B 4,454,377 2,384,291
A Reconciliation of net income to net cash flow from operating activities
2024 2023
£ £
Net income for the reporting period 5,925,678 3,427,586
Adjustments for:
Investment income receivable (1,238,876) (109,042)
(Increase) / decrease in debtors (17,523) 7,880
(Decrease) / (increase) in creditors (21,714) 25,447
Net cash generated from operating activities 4,647,565 3,351,871
B Analysis of cash and cash equivalents
2024 2023
£ £
Cash at bank and in hand 4,454,377 2,384,291
4,454,377 2,384,291

The notes on pages 18 to 32 form part of these financial statements.

-17-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Basis of preparation

Issa Foundation is a company limited by guarantee (registered in England and Wales) and does not have share capital. The liability of the members is limited and is not to exceed £1 per member. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are detailed in the Trustees Report on pages 2 to 11.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Investment income is earned through holding assets for investment purposes such as cash. It includes bank interest. Interest income is recognised using the effective interest method.

School tuition fees are recognised in the Statement of Financial Activities in the period in which it is receivable, where the receipt is probable and can be measured reliably.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

-18-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

ISSA FOUNDATION

1 Accounting policies (continued)

Expenditure on charitable activities includes grants paid and associated support costs of running the charity.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources.

Tangible fixed assets

Freehold property & assets in the course of construction are stated at historical cost. Assets in the course of construction are transferred to freehold property upon completion of the development. Depreciation has not been charged on freehold buildings as the trustees consider the estimated residual value of the property to be a significant proportion of the book value, such that the depreciation would be immaterial. The estimated residual value is expected to be high due to the charity's policy of maintaining the property such that physical deterioration does not occur and the costs of such maintenance are charged in the year of incidence.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in statement of financial activities.

Investments

Social investments are programme related investments being a concessionary loan issued to a charity beneficiary. Concessionary loans include those receivable from a third party which are interest free and are made to advance charitable purposes. All loans are measured at cost, less impairment.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

-19-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

ISSA FOUNDATION

1 Accounting policies (continued)

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of comprehensive income.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed.

De-recognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

-20-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

ISSA FOUNDATION

1 Accounting policies (continued)

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key assumptions, judgements and estimates

In the opinion of the Trustees’ there have been no significant judgements made in the process of applying the above accounting policies. There have been no key assumptions concerning future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

-21-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2
Income from donations and legacies
Donations
Donations
3
Income from investments
Bank interest
Rental income
Bank interest
Rental income		 Unrestricted
funds
£
8,569,765
8,569,765		 Restricted
funds
£
-		 Total funds
2024
£
8,569,765
8,569,765
-
Unrestricted
funds
£
7,512,050		 Restricted
funds
£
-		 Total funds
2023
£
7,512,050
7,512,050 - 7,512,050
Unrestricted
funds
£
1,042,620
196,256		 Restricted
funds
£
-
-		 Total funds
2024
£
1,042,620
196,256
1,238,876 - 1,238,876
Unrestricted
funds
£
4,869
104,173		 Restricted
funds
£
-		 Total funds
2023
£
4,869
104,173
109,042 - 109,042

-22-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

4
Other income
School tuition fees
Other
School tuition fees
5
Analysis of expenditure on charitable activities
Grants expenditure (note 7):
Grants payable
Grant related support costs:
Governance and support costs (note 6)
Grants expenditure (note 7):
Grants payable
Grant related support costs:
Governance and support costs (note 6)		 Unrestricted
funds
£
101,887
500
102,387
Unrestricted
funds
£
29,832
29,832
Unrestricted
funds
£
3,557,829
427,521
3,985,350
Unrestricted
funds
£
3,974,348
248,990
4,223,338		 Unrestricted
funds
£
101,887
500		 Unrestricted
funds
£
101,887
500		 Restricted
funds
£
-
-
-
Restricted
funds
£
-		 Total funds
2024
£
101,887
500
102,387 102,387
Unrestricted
funds
£
29,832		 Total funds
2023
£
29,832
29,832 - 29,832
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-		 Total funds
2024
£
3,557,829
427,521
3,985,350
Total funds
2023
£
3,974,348
248,990
4,223,338
3,985,350
Unrestricted
funds
£
3,974,348
248,990
4,223,338

-23-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

6 Allocation of support costs

Subscriptions
Advertising & marketing
Insurance
Electricity
Gas
Bank Charges
Wages and salaries
Subcontractors
Travel
Unrecoverable landlord costs
Sundry expenses
POW costs
Rates
Security
Audit fees
Other fees payable to the auditor
Professional fees
Subscriptions
Advertising & marketing
Insurance
Electricity
Gas
Bank Charges
Wages and salaries
Subcontractors
Travel
Unrecoverable landlord costs
Sundry expenses
Rates
Security
Audit fees
Other fees payable to the auditor
Professional fees		 Governance
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,535
1,265
804		 Support
2024
Basis of
£
£
apportionment
570
570
Support cost
245
245
Support cost
(2,925)
(2,925)
Support cost
3,548
3,548
Support cost
6,633
6,633
Support cost
90
90
Support cost
148,660
148,660
Time spent
-
-
Support cost
366
366
Support cost
132,160
132,160
Support cost
119,709
119,709
Support cost
40
40
Support cost
5,772
5,772
Support cost
-
-
Support cost
-
9,535
Governance cost
-
1,265
Governance cost
804
Governance cost
414,868
426,472
Support
2023
Basis of
£
£
apportionment
1,725
1,725
Support cost
1,788
1,788
Support cost
2,154
2,154
Support cost
2,916
2,916
Support cost
8,512
8,512
Support cost
(612)
(612)
Support cost
38,083
38,083
Time spent
7,625
7,625
Support cost
6,220
6,220
Support cost
139,342
139,342
Support cost
1,090
1,090
Support cost
2,675
2,675
Support cost
5,525
5,525
Support cost
-
4,440
Governance cost
-
2,100
Governance cost
-
25,407
Governance cost
217,043
248,990
11,604
Governance
£
-
-
-
-
-
-
-
-
-
-
-
-
-
4,440
2,100
25,407
31,947

-24-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

7 Analysis of grants

The charity undertakes its charitable activities through grant making and awarded grants to a number of organisations in furtherance of its charitable activities.

Balance payable brought forward
Previously awarded grants released
-
New grants awarded in the period
3,557,829
Net grant cost in the period (note 5)
Grants paid in the period
Balance payable carried forward
During the year grants were made as detailed below:
Analysis by institution
Ajmal Foundation
Lokhandwala General Hospital
Masjide Tauheedul Mosque Renovation
Blackburn Markaz
Education India Public Trust
Hakim-ul-Islam Academy Society
International Humanitarian Relief
Malawi Relief Fund UK
Munshi Trust
Valan Hospital
Welcare Hospital
Masjide Vali
Blackburn Youth Zone
Charity Events
Dog Ranch
Darul Hijaz Yatama
Markazul Ma'arif
Precious Gifts
Valli Charitable Trust		 -
3,557,829		 2024
£
-
-
3,974,348
3,557,829
3,557,829
(3,557,829)
-
2024
£
-
-
-
67,338
-
258,360
30,000
1,516,099
653,379
27,341
8,902
2,690
25,000
1,000
40,000
64,192
774,943
15,000
73,585
3,557,829		 2023
£
-
3,974,348
3,974,348
(3,974,348)
-
2023
£
416,834
-
30,000
59,215
-
101,253
310,000
2,079,714
905,585
20,423
5,158
46,166
-
-
-
-
-
-
-
3,974,348

-25-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

7 Analysis of grants (continued)

Analysis by category

Education
Food
Health
Housing
Orphanage
Social
Water		 2024
2023
£
£
542,877
1,115,301
1,143,235
2,411,271
244,767
321,061
1,303,204
-
-
-
323,746
89,215
-
37,500
3,557,829
3,974,348

8 Auditor’s remuneration

The auditor’s remuneration amounts to an audit fee of £7,735 (2023: £3,700) excluding VAT, accountancy fees of £880 (2023: £800) excluding VAT and fees in relation to assistance with charity tax affairs of £385 (2023: £350) excluding VAT.

-26-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

9 Trustees’ and key management personnel remuneration and expenses

The Trustees neither received nor waived any remuneration during the period.

There were no employee benefits received by key management personnel during the period. The charity considers its key management personnel comprise the two Trustees who make all decisions regarding the awarding and payment of grants to projects and the voluntary advisory subcommittee.

The Trustees did not have any expenses reimbursed during the period.

10 Staff costs and employee benefits

The average monthly number of employees and full time equivalent (FTE) during the period was as follows:

Charitable activities 2024
2023
Number
Number
23
6
23
6

The total staff costs and employee benefits were as follows:

Wages and salaries
Social security
Defined contribution pension costs		 2024
£
147,900
-
760		 2023
£
37,788
-
295
148,660 38,083

No employees received total employee benefits (excluding employer pension costs) of more than £60,000.

-27-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

11 Tangible fixed assets

Cost
At 1 January 2024
Additions
Transfers
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Freehold
property
1,235,961
30,570
-
1,266,531
-
-
-
1,266,531
1,235,961		 Assets under
construction
£
11,176,529
3,778,413
(977,285)		 Total
£
12,412,490
3,808,983
(977,285)
13,977,657 15,244,188
-
-		 -
-
- -
13,977,657 15,244,188
11,176,529 12,412,490

-28-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

12 Investment property

nvestment property
Fair value
At 1 January 2024
Additions
Transfers
At 31 December 2024		 Investment
property
5,567,978
7,372
977,285
6,552,635

The Trustees consider that the fair value of the investment properties is equal to its cost.

13 Debtors

13
Debtors
Trade debtors
Prepayments
14
Current asset investments
Programme related investments		 2024
£
50,106
29,520		 2023
£
32,583
29,520
79,626 62,103
2024
£
525,000		 2023
£
525,000
525,000 525,000

Programme related investments are concessionary loans made to a charity beneficiary. These are interest free loans repayable on demand.

-29-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
Deferred income
Balance brough forward
Rental income received in advance
Release of deferred income		 2024
£
37,421
67,644		 2023
£
73,491
53,288
105,065 126,779
2024
£
47,338
56,714
(47,338)		 2023
£
-
47,338
-
56,714 47,338

-30-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

16 Fund reconciliation

Unrestricted funds:
Lillah
Zakat
Interest
Total unrestricted funds
Restricted funds
Total funds
Unrestricted funds:
Lillah
Zakat
Interest
Total unrestricted funds
Restricted funds
Total funds		 Balance at
31 December
2023
£
9,859,248
10,823,415
142,420		 Income
£
1,011,248
7,857,160
1,042,620		 Expenditure
£
(593,549)
(3,359,684)
(32,117)		 Balance at
31 December
Transfers
2024
£
£
-
10,276,947
-
15,320,891
-
1,152,923
-
26,750,761
-
-
-
26,750,761
Balance at
31 December
Transfers
2023
£
£
-
9,859,248
-
10,823,415
-
142,420
-
20,825,083
-
-
-
20,825,083
20,825,083
-		 9,911,028
-		 (3,985,350)
-
20,825,083 9,911,028 (3,985,350)
Balance at
31 December
2022
£
8,643,114
8,501,086
253,297		 Income
£
1,638,005
6,008,050
4,869		 Expenditure
£
(421,871)
(3,685,721)
(115,746)
17,397,497
-		 7,650,924
-		 (4,223,338)
-
17,397,497 7,650,924 (4,223,338)

Unrestricted funds

Lillah

Lillah comprises the gift aid recovered on Zakat donations. The religious restrictions placed on the use of Zakat donations for the original donor do not apply to the related gift aid income.

Zakat

Donations collected on annual religious grounds from able Muslims to help the poor. No administrative expenses or other operating expenses are paid for by this fund.

Interest

Funds generated from interest received on the amounts held within the charity bank account and the bank accounts of individual Muslims, these funds are discharged under the guidance of religious ruling.

All funds may be applied for any purpose which falls under the primary objects and activities of the charity.

-31-

Docusign Envelope ID: A6B5134E-834C-428F-AC1E-D354EA109212

ISSA FOUNDATION

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

17 Analysis of net assets between funds

Fixed assets including investment property
Cash at bank and in hand
Other current assets/liabilities
Fixed assets including investment property
Cash at bank and in hand
Other current assets/liabilities		 Unrestricted
Restricted
Total
funds
funds
2024
£
£
£
21,796,823
-
21,796,823
4,454,377
-
4,454,377
499,561
-
499,561
26,750,761
-
26,750,761
Unrestricted
Restricted
Total
funds
funds
2023
£
£
£
17,980,468
-
17,980,468
2,384,291
-
2,384,291
460,324
-
460,324
20,825,083
-
20,825,083

18 Related party transactions

Mr Z Issa and Mr M Issa were both Trustees of the charity throughout the period.

During the period Mr Z Issa and Mr M Issa both made charitable donations to a UBS UK Donor Advised Fund (DAF).

The total of the charitable donations made by the Trustees to the DAF was £7,850,420, with a further £6,540 from a close family member of the Trustees.

Income of £8,563,025 was received as a result of the UBS UK Donor-Advised Fund recovering Gift Aid of £712,605 on these donations.

During the year the charity was recharged costs relating to capital expenditure of £3,816,085 (2023: £3,866,908) by Monte Developments Limited, a company in which Mr M Issa and Mr Z Issa are directors and ultimate owners.

-32-