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← Islamic Brotherhood Coventry

2024-12-31-accounts

Charity registration number 1172391

ISLAMIC BROTHERHOOD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

ISLAMIC BROTHERHOOD

LEGAL AND ADMINISTRATIVE INFORMATION

Chairman Mr M Arif
Vice Chairman Mr Amir Afzal
Treasurer Mr Shabbir Ahmed
Secretary Mr Mohammad Mansab Dar
Charity number 1172391
Principal address The Mosque
Eagle Street
Coventry
CV1 4GP
Independent examiner Kaiser Nouman Nathan LLP
57 Alfred Street
Birmingham
B12 8JP
Bankers Barclays Bank PLC
Coventry Branch
Foleshill
Coventry

ISLAMIC BROTHERHOOD

CONTENTS

Page
Trustees report 1
Independent examiner's report 2
Statement of financial activities 3
Statement of financial position 4
Notes to the financial statements 5 - 10

ISLAMIC BROTHERHOOD

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Deed of Trust, 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Trustees of the charity working and performing their duties within the defined parameters of governing documents as some of the objectives are listed as an example below:

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

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

Achievements and performance

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

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

Structure, governance and management

Islamic Brotherhood is registered with Charity Commission (No.1172391) and constituted by Deed of Trust.

The Trustees report was approved by the Board of Trustees.

Mr M Arif Chairperson

14 May 2025

ISLAMIC BROTHERHOOD

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ISLAMIC BROTHERHOOD

I report to the Trustees on my examination of the financial statements of Islamic Brotherhood (the charity) for the year ended 31 December 2024.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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

Kaiser Nouman Nathan LLP

57 Alfred Street Birmingham B12 8JP

Dated: 14 May 2025

ISLAMIC BROTHERHOOD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

Unrestricted Restricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
Notes £ £ £ £ £ £
Income from:
Donations and
legacies 3 149,892 - 149,892 86,266 86,266
Charitable activities 4 13,146 - 13,146 8,468 - 8,468
Total income 163,038 - 163,038 94,734 - 94,734
Expenditure on:
Charitable activities 5 132,118 - 132,118 140,482 - 140,482
Net income for the year/
Net movement in funds
 30,920 - 30,920 -45,748 - -45,748
Fund balances at 1 January
2024 1,229,585 430,000 1,659,585 1,275,333 430,000 1,705,333
Fund balances at 31
December 2024 1,260,505 430,000 1,690,505 1,229,585 430,000 1,659,585

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

All income and expenditure derive from continuing activities.

ISLAMIC BROTHERHOOD

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

2024 2023
Notes £ £ £ £
Fixed assets
Property, plant and equipment 9 1,021,376 951,855
Current assets
Trade and other receivables 10 434,724 434,724
Cash at bank and in hand 238,226 277,670
672,950 712,394
Current liabilities 11 (3,821) (4,664)
Net current assets 669,129 707,730
Total assets less current liabilities 1,690,505 1,659,585
Income funds
Restricted funds 430,000 430,000
Unrestricted funds 1,260,505 1,229,585
1,690,505 1,659,585

The financial statements were approved by the Trustees on 14 May 2025

Mr M Arif Chairperson

ISLAMIC BROTHERHOOD

NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Charity information

Islamic Brotherhood is a registered charity with Charity Commission (No.1172391).

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Deed of Trust, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ISLAMIC BROTHERHOOD

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

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 costs 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 activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent 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.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% on cost Fixtures and fittings 15% on net book value Motor vehicles 20% on net book value

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 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 the 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 set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

ISLAMIC BROTHERHOOD

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

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans 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 payments 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount 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.

3 Donations and legacies

Donations and gifts

**Unrestricted ** Unrestricted
funds funds
2024 2023
£ £
149,892 86,266

ISLAMIC BROTHERHOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

4 Charitable activities

2024 2023
£ £
Investment income 12,900 8,300
Bank interest 246 168
13,146 8,468
Charitable activities
2024 2023
£ £
Staff costs 39,581 42,927
Depreciation 26,769 25,608
Alarm maintenance 380 360
Motor expenses 1,897 1,191
Rates & insurance 6,773 8,377
Light & heat 33,146 30,368
Printing, stationery & Advert 2,729 789
Telecommunication & postage 1,652 1,190
Repairs & maintenance 4,254 1,497
Cleaning 1,606 1,676
Parking rent 240 241
Sundry expenses 5,348 3,310
Bank charges 1,164 963
Book keeping 468 300
Accountancy fee 1,500 1,500
Legal & Professional 4,611 20,185
132,118 140,482
132,118 140,482

5 Charitable activities

6 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

7 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
2 2

ISLAMIC BROTHERHOOD

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

7 Employees (Continued)
Employment costs 2024 2023
£ £
Wages and salaries 39,581 42,927

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

8 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

9 Property, plant and equipment

Property, plant and equipment
Freehold land Fixtures and
Motor vehicles		 Total
and buildings fittings
£ £ £ £
Cost
At 1 January 2024 1,062,519 50,825 13,900 1,127,244
Additions 96,290 - 96,290
At 31 December 2024 1,158,809 50,825 13,900 1,223,534
Depreciation and impairment
At 1 January 2024 131,652 38,733 5,004 175,389
Depreciation charged in the year 23,176 1,814 1,779 26,769
At 31 December 2024 154,828 40,547 6,783 202,158
Carrying amount
At 31 December 2024 1,003,981 10,278 7,117 1,021,376
At 31 December 2023 930,667 12,092 8,896 951,855

The carrying value of these investment properties included within property, plant and equipment is well in excess of £1,021,376 (2023 - £951,855).

10 Trade and other receivables

Trade and other receivables
2024 2023
Amounts falling due within one year: £ £
Trade receivables and prepayments 434,724 434,724

ISLAMIC BROTHERHOOD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

11 Current liabilities

11 Current liabilities
2024 2023
£ £
Trade payables 3,821 4,664
12 Analysis of net assets between funds
Unrestricted
Restricted
**Total **		 Unrestricted Restricted Total
funds funds funds funds
2024 2024 2024 2023 2023 2023
£ £ £ £ £ £
Fund balances at 31
December 2022 are
represented by:
Property, plant and
equipment 1,021,375 - 1,021,375 951,855 - 951,855
Current assets/(liabilities) 669,130 - 669,130 707,730 - 707,730
1,690,505 - 1,690,505 1,659,585 - 1,659,585

13 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).