Charity registrton number.. 1181445 Arrahma Islamic centre (CIO) Annual Repn and Financi Stsments for the Year Ended 31 Marth 2023
An?hma Islamic eeDtre (CIO) Colltents Reference and Administrative Detsals Trustees, Report 2to3 Statement of TnMees' ResFonsibiliiie5 Independent Examin¢rfs Re1 Ststement of Financial A¢ttvities Ban¢% Sheet Notes to the FiDanCi Statements 8t014
Arrahma Islamic centre (CIO) Referenee and Administrative Detai18 Trustees Abdt Karim Has5an 03man Ali Farah Abdulkarim Hi] Salad Muhy*Jin Mahad Shafad Abdullahi Hashi Kheyre Abdirahman M&hamud Hersi Prineipl Office 29 Whitmore road Birmitk8ham BIOONR Ch&rlty R£gl$trntion Number 1181445 So]ifiton John & Sagger Solicito 34. 36 Gray Inn Road London WCIX8HR Independent Ex#miner Nasir Rafiq Independent Examin Bradfon Court 123-131 Bradfort Street Birmingham B120NS Page I
Arrahma Islamic eetttre (CIO) Trnstees, Rew•rt The trusiees present the atthual report tO8ether with the finala1 statements of the charity for the year ended 31 Mah 2023. Objettives aetivities Objects lddin5 To promote any charitsble purrKJse5 forthe benefit of the o)mmunity in Binnjngham. To advance the Islamic Teligion. and any other charitable purposes which the tWes from time to time deiemline are suitable including the relief of verty aj sicknes% the prt)motion of education and the provision in th¢ int¢re5ts of social w¢lfaTe of recreation f¥ilitte5. Pmbuc benetil Th¢ trustees eonfinn that they have complied with the requircments olsection 17 of the Charities Act 2011 to have due regard to tht publie benefit guidance published by the Charity Commission for Eng18nd and Wates. Fit)anell revirw Pollcy reser The Trustees L¥)nsiderthe level of held reserves to be a&qua. StrurtUT< govern•ce attd Nathre ofgffltrning documÉni The ehariiy is a Charity ineorwrated (k8aniwion (CIO - Foundation) and 8]Stered with the Chtirity Commi5SiOrt on th¢ 07 Jan 2019 (new Charity re8 1181445). Fln8nei*l IMstYuments OljJecliv andpolid£s The Charity'$ activiti¢$ ex it tt) 8 number of fthancial risks includittg ctedtt risk. cash thw risk and liquidity risk. The use Of flnanciat derivatives is governed by the charity's PDlicÈes approved by the Lx)ard of trustee5. whi¢h ptovid¢ written prin¢iples on the use of rtnancial d¢riv¥iYe5 ts manage these risk& The charity doe5 noi se derivative financial iThStrLkments for speCUl1ve purpose5. Cashflow risk The charity's activities expose tl primarily to the finanCE risks of changes in foreign eunrncy exchange rate5 and InreST rates. The ¢harity use5 forei80 exdwige fon+wd contr¥ts and interest rate swap cOntrts to hedge these exposures. Intsrest bearing &5sets and liabilities are held at fixed rate to ensi¢ Ccrtsinty of cash flows. Page 2
Arrahma Islamic eentre (CIO) Trustees, Report Credilrlsk The chartty'5 principal ftnancial a&sets are bank balances and casl trade and other receivablffj and investments. The ctwity's credit risk is prtmarily attnbutable io its trade receivable5. The amounts presenied in the balan sheet are n¢t of allowances for doubtful receivable5. An allowan¢e for impaim)ent is made where there is an identified loss event whIC b&4¢d OD previous ¢xperienc4 is ¢vidence of a reduction in the re¢overability of the cash flows. The credit risk on liquid funds and d¢rivative financial insthunents is litniEed because the Counterpart] are banks with htgh credit-Tatings &tsigned by intemationai credittIng agencies. The charity ha5 no significant concelltration of credtt risL with exposurf spread over a ]Et number of unt¢rparti¢s and customers. Ll4uldlty r&Tk In order to maintain liquidity to ¢nsur¢ that sufficient fimds are avai]able for ongoing operations and tre developments, the chartty uses a mixture of l(mg-t¢nn and short-teTm debt flljance. Further detsils regarding liquidity risk can be found in the Stst¢ment of acc4)unting policies in the financial The atmual repM)rt W&8 approved by the of the charity on Olll If2024 and signed on its behalf by.. Awlohi Haahi Kbly T$1¢£ Page 3
Arrahma IJIall¢ centre (ao) Statement of Trnstees. Responsibllilles Un7ted Kingdom A¢co Standth (United Kingdom Ge4<rtY Ac£¢ptsJ A¢¢ounting Ptactic¢) and applicable ]aw 2nd ttga1atil)7. The law appIieable to chatitits rtyutres the trustees to prep¥re fiDan¢ial statED)ellts for each fmancial y¢arthi¢h 8iVC a In3e and fair vlew of the state of •ffair5 of the ch2Tiry and of the incoming re50wtts and applicatiom of 8elect suitable accotillg p)licics and then wly them cj)tiwy. 0er¥¢ the methods principks AD the Cknitits SORP. make judgements and ¥rimatrs that are reasonable afyl prodets¢ 8iate whether applicable acco1 sthnd8rd5 have E¢eo follw subieet to ajty mrtal dep& disclosed d exp]#ined in the firfrancRal rateD Charity1] wn(llm¢ in FMJsiDes& time thc fittsnciaj Positson of the Chity aDd enable them kn ensure that the fitwicial sth1ents wmply with the Chartties Act 20] l. the 4pplicable Chtiriti lJicuAmts and Rem) RegDlatioD4 and the provisi04s of the JSttfytion. The trustt&* are a]so res}k ftjr safeguarding the &<Yts of the thaTity and heJK¢ for taking rrasonAble for the tion and daeetilm of fraud and other ifftgulaTitxs. ApwoY&l by the In¢¢$ of the tharity th .. ... ...... . si8DeO on its beh&lf by:
Arrahm2 Jslamic centre (CIO) Independent EmIller,5 Report to the trustees of Arrghma Islamic centr¢ {ClO) I report the charity tr81¢ on my examin&ion of the accounts of the charity for the Ye ¢nded 31 March 2023 which are set out on pa8¢s 6 to 14. Rtspectlwe respO51b¢1it1u •f ¢rnstets eumioer As the ¢hariiy's 1ftte£S of Arrahma 151amic centre (CIO) you are rcsp)n5ible forthe prepa]xtioTr of the a¢wunts in aOrdanCe with the requirements of the Charities Aa 2011 {'the Act,). I rert in respect of my examination of the Arrahma Islamic centre (CIO)'s a¢counts carried out under seriion 145 of the 2011 A¢t and in ¢arrying Olrt my examination I have follow¢d ail the applicable Dire¢tions given by the Charty Commission under section 145{5Xb) of the ACL Independent eiaminer's slat¢ment Since Arrahma Islamic centre ICIO)'s 8ros5 incorne exceeded £250.000 your examiner musi be a member of a body listed in section 145 of the 2011 Act. I confimj that I am qualifi to und¢ttsk¢ the examination be¢ause I am a m¢mber of Nasir Rafiq, which is one of the listed Wies. I have completed my examination. I Conf material matters hav¢ come kn my attention in conneciion with the examination giving me eau5e believe that tn any mat¢riai respect. ac¢ountin8 r¢cords were not kept in respe¢t of ArrahTna Islamic etntsr {CIO) as requir&a by s¢¢tion 130 of the Aa" or 2. the accounts do not accold with those records. or 3. the acuTrts do not Comply with the accounting requirements ncernIng th¢ fomi and content of accounts set OUI in the Chariiies IAccounts and Repots) Regulations 2008 other than any Tequirement ihat th¢ a¢¢oiEnts give a 'tnJe and fair view which 1$ not a matter a)nsidered &s part of an independent examination. I have should ts concerns and have come a¢rosS other matters in connection with the examination to which atteniion e drawn in this rekx)rt in ordtt tti enable a proper under5t8ndin8 of the accoultts to be rhed. Nasir Indep Nasir flq ent Examiner Bradfort Court 123-131 BTadfort Street Birmingham B12 ONS Date:. I: Il. Page 5
Arr8hma Jslamic centre (CIO) Statement of Financial Aetivities for the Year Ended 31 Marcb 2023 Ttstol 2023 funds Nots Income Endowmtnts from: tk)notions and legaci (hher income 123.605 211.527 123,605 211527 Totsl income Expenditure ott: Ch&ritable activities (hher expenditure Totat expenditure N¢t exp¢TEditttre Net mov¢mem in futwjs Retontiliatlon of fttds TO1 funds broughi fon¥ard Totst fijnds carried forward 335 132 335 132 {329221) 23 (329.221) 60.312 160J121 (60.312) 2.434.140 2 434 140 15 2.37i,828 Lrtrestricted ftsnds 2.373 828 Total 2022 .Note IDeome and EDdowwents from: tk)nations and le8acies (Mher incom¢ 465,475 190 12 465,475 190,212 Tothl income Expendtture on: Raistng fullds Charitable aciivities her exp¢nditure 655 687 655.687 (1,033) (308,855) 1.095 (1.0331 (308.8551 Tots] expendithJr 310983 Nd income 310983 Net movement in fid$ Reeoneiliation •f fundg Total funds brought forward Tolal funds ¢8rried fon¥ard 344.704 344.704 344,704 2 089 436 2.089.436 15 2.434.140 All of the charity's a¢tivities derive from coniinuing ¢)pcrnions during the aiK)V¢ two perioth. The fimds breakdown for 2022 is shown in )le 15. 2 434 140 Page 6
Arrahma Islamie centre (CIO) (ReStr9dOn number: 1181445) Balance Sheet as at 31 March 2023 2023 Note 2022 nxed #ssets Tangible assets 2.505.671 2JOI.849 Debtors Cash at bk aThl in Iwid 12 48.785 13 41.673 120 433 162.106 CrtdthbTg: Amowits flling dut w6thlm •ne year Net ernt ]iaknliti¢s Nrt asts 74.708 14 20651) (131,843)_ 2 373 828 229815) L67,709J 434.140 FundB of the eharlty. Totsl hnds 2?73 828 2.434,140 15 2434140 Th¢ *. and sird on beha]fby". TTust¢e
Arrahm2 Islamic centre (CIO) Notes to the Finaneial Statements for the Year Ended 31 March 2023 l Aceounting policies Statement of eornpliance Th¢ financial statemenis have been prepared in accordarKe with Accounting and Rq>ortin8 by Charities: Staiement of Re¢ommend¢d Prartice applicable to chltieS preparin8 their accounts in a¢cordance with the Financi Reporting SId&r applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2015) - (Charities SORP IFRS 1021), the Financial Rwting Siandard applicable in the UK and Republi¢ of Ireland (FRS 102) and the Charities Act 2011. Basis of preparation Arrahma Islami¢ centre {CiOI meets the definition of a public benefit erttity under FRS 102. As5eis and liabilities are initkally recognised at btstOric or transaction vajue unless otherwise ststed in the relevant accounting policy note5. Exempt&on from prepring a flow statement The charity opted to early adow Bulletin I published on 2 Febnwy 2016 and have therefore not iTEcluded a eash fft>w statement in these financial statements. Going concern The tNstees consid¢r that there are no materiat uthcertaintie5 aFM)ut the charttys ability to continue as a going concern. lllcome 8nd endowtnents Volutstary income including th)naiion& gifty legacres and granrs that provide re fi]nding or are of a general Daiure is re¢o8ni5ed when the charity h&% enttiletnent to the income. it is probable that the income will b¢ re¢eiv¢d and th¢ amount caD be me&%ur>J with sufficient reliability. Dortatiotjs and legacie5 a rvwised on a receivable basis when rccetpl is probable 8t the amoLEnt can be reliably Mvred. Grants reeeiwble Grants are reco8nis¢d when the charÈty an eniitlement lo the fi]nds and aTty conditions linked to the grants have been md. Where p¢rforniance coodttions are attach to the 8rani and are yrf to be rne¢ the iRwn]e is reCols£d as a liability and include4 on the an¢t shttt as deferrcd income to be r¢leased. Eipenditure All expenditure is re¢ognised once there 15 a legal or COThStrueiive obligation io that exttndiiure. li is probable settlement is required and the amount caD be mwured reliably. All wsts are a]looted to the app12cable expenditure heading that aggate similar wsts lo that ¢gory. Ile eosts c4nTM)t be directly atirtbuted to particular heading5 they have been all(uted on a basis con5isient with the ttye of rtsourc¢s, with central staff costs allocated on the basis of time spent. and deprlatioN charges allocated on the rtion of the asset s use. her suppxjrt Costs are all¢)ed b&%ed OD the siYe&l of staff costs. Page 8
Arrahma Islamic centre (CIO) Notes to the Finaneial Statements for the Year Ended 31 March 2023 These are costs incurred in attrncting volunTary income. the management of inve5tsn¢nts and those incurred in trnding activities that ratse fitnds. Choriltsble &4isyiies Charitable expenditure compris¢5 those costs incurtEd by the charity in the delivery of its a¢tiVitie5 and serviees for its beneficiaries. Ii includes iK>th costs can be allocatcd directly to such activities and ihose costs of an indir¢ct nature necessary to suppon them. Grohtpn•wsions Provision5 for 8rants are made when the intention io make a grajtt has been communicated to the re¢ipieni but th¢re is uncertainty at&Jut either th¢ timing of the wt or th¢ amounl of graot payabl¢. CoverD•net eoyts These include th¢ costs awibutsble the charity's compliance with ¢onstitirtional and statutory wuirement4 including audtl. Strategic management and Inte$.$ meetings and reimbursed expenses. Governmettt grants Government grants 8re reco8nis¢d based on the a¢¢rual K[cl and 8re measured at th¢ fair value of the assei received or receivable. Grants are classified &s ttlating either to revenue or to lssets. Grdnts relating to ttv¢nue are treognised En income over the peTi(Ml Jn which the related costs are recolSe. Grant5 relating to assets are recognised over tht cxpecie4f useful life of the assei. Where part of a grant relating to an &sset is deferred, it is recognised as deferred Income. Taxatio The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Aet 2010 and therefore it meets the defutition of a charitable company for UK corporation tsx purp)ses. Accordingly. the charity i5 tK>t¢ntiatly exmpt from tsxation in SPect of in¢om¢ or CapIt gains received within cate8orie5 vered by Chapr 3 Part I l of the Corpx)rion Tax Aci 2010 or S¢¢tion 256 of the T&Kation of Char8¢able Gains Act 1992. to the extelltthat such income or garns are applied exclusively charitsble purrx)se5. Tangible rued assets Individual fixed tssets ¢osting £O.(Kl or are InitilY recordpj at f05( less any subsequent accumulated depre¢ialion and subsequent *umulat¢d impairmeni losse5. Depreciation and mortts#tion Depreciation is provided on tan8ible fixed a&4ets so as to write off the cost or vaiuation. less any estimated residual VUe. over the1rexpd useffijl enomiC life &$ follows: Trade dtbtor5 Trade debtQT5 are amounts due from ¢ustomcrs for merchandise sold or seryices perfomied in the ordinary course of business. Trade debtors are reco8nised InitilY at the trdnsaction price. They are SubseqUenY measur¢d at amortised cost sin8 the effective interest metlb)d. less provtsion for impainnent. A provision for the impaimjent of trade debtors t$ established when there is objective eviden¢e that th¢ charity will not be able eollect all amounts du¢ according to the Origin iemjs of the receivable Page 9
Arrahma Islami¢ centre (Cto) Notes to tbe Financial Statements for the Year Ended 31 March 2023 C*sh #Dd e8$h 4uivalent5 C&sh and ¢&sh equivalents (xjmprise on h8lld and rall detrt)5iW and other short-ienn highly liquid investments that are readily convertible to a k¢wn amount of cash and are subj¢¢t to an insignificant risk of change in va]ue. Borrowings Interest-be8ring iK>rrowings are initÈatly recorded at fair value. net of transaction wsts. Interest-bearing èK>rrowings are subsequently eaftied * amortised CQSL with the difference between the proceeds. net of traosaciion costs. and the amourtt due redemptaon being recognised as a charge the Swement of Financial A¢tiviii¢s over th¢ periLNI of the relevant Inier¢st expense is reco8nis¢d on the basis of the efftIve inierest metw and is included in InteSt payable and similar ¢harge5. Borrowings are ¢l&ssified &5 curTent liabilrties unless ihe Charity h&s an Lmconditi0n right to defer settlement of tbe liability for ai least twelvc months afterthe rew>rtin8 date. Fund 5tnicture Unrestricted t0me funds are gen¢rnl fijnds are available for use at the tes'S discretion in furtherdnce of th¢ obje¢tÉve5 of the charity. Page 10
Arrahma Islamic centre (CIO) Notes to the Financial Statements for the Year Ended 31 Mah 2023 2 Income from doD4tions leg•des Unrestricted fuDds Gener1 Tot1 2023 Tot81 2022 rknnatioThs and lega¢ies.' Donations froJrt indivÉduals Grdttts. including CApi[ 8ran Government 8rants Grants from othercharittes 123,605 123.605 241,216 26.496 197.763 123.605 123 605 3 Other iDeome Unrestrirted Totsi 2023 CeDerl Totsi 2022 R¢ntai income 211527 211527 190.212 4 Expehditure OTr chritsbl¢ adivities Utsrestrirted funds GeDer*l Totsl 2023 2022 Depreciatio]L amonisation atwj othersimiIarcosts Grant ful)ng of activhties Governance ¢osts 174.891 174,891 110,797 52,335 46.151 50JII 104.019 50JII 104019 329221 308 855 S Other expmdithre Unrestricted fuods General Total 2023 TotAI 2022 Depreciation. amortisatton and other simijarcosts 66,223 Pagell
Arrahma Islamic centre (CIO) Notes to tbe Finaneial Statements for the Year Ended 31 March 2023 6 An#lysi9 of governxDte •lld $pport costs Governanee costs Unrestrfeted Tfjt*l 2023 G¢ner#l Total 21122 Stsff w5ts Wage5 and sajaries 7 Net incomingloutgoiDg rewur Net lout80in8yincoming restyjrces forthe year include: 2(J23 2022 Lkpreciation of fixed wets 66223 8 Staff cog14 The a88re8ate payroll costs were as follows: 2023 2022 Staff tosts during the year were: Wage5 and salartes 104.019 No ernployee rEc¢ived emoluments of than £60.(1 during the y 9 1ndep¢ndtnt exarniner's remuDeratioth Page 12
Arrahma Islamic celltre (CIO) Notes to the Financial StatemeDts for the Yerdr Ended 31 March 2023 11) Tgxtion The charity ts a registued charity and is ther¢for¢ excmpt from taxation. 11 Tanglbl¢ fixed assets L•nd gDd buildings aDd Motor vebitles Total Cost At l April 2022 Additions 2.602230 67.045 50,023 5.472 2.657.725 70.045 At 31 Mah 2023 2 669 275 Depreciatio At l April 2022 Charge forthe year Ai 31 Mah 2023 .472 2 727 770 147,IXJO 53J86 5.591 11.108 3285 729 155.876 66.223 21WJ86 Net Ixbok value 222.099 At 31 March 2023 2.46&889 33 J24 At 31 March 202Z 2.505,671 30 2.187 2 501849 12 Debtors 2023 2022 Other debtors 48.785 41.673 13 CAsh and f•slt eqtsiv•ltnts 2Q2J 2022 C&%h At bank 25.92i 120433 14 Cr¢ditors: Dlllllllts f*UiDg due within one year 2023 2022 Other ¢fEditors Accru4ls 199.022 7.529 206 551 222,935 6.880 Page 13
Arrahma Islatnic centre (CIO) Notes to the Financial Ststements for the Year Ended 31 March 2023 IS Funds B•Iall 1 i April 21122 BAlaDce at 31 March 2023 expended Unrestricted Genernt ?434 140 Bl4nte at I April 2021 335 132 395,444 2.373.828 Bxlance at31 March 2022 pend1 Utsr¢gtricted funds General 1089 436 310983 2 434 140 16 Anaty$ts of nrt *55ets bttwe¢n fiubth UDr¢stridl Total fund9 2023 Getter#l Tangible fixed assets Current assets Current liabiltties 2.505.671 74.708 206.551 2.505,671 74,708 206551 Totsj net assets 2 373 828 UTrrestricted rtsnds Gemer•l 2 373 828 Totsl fonds 2022 Tangible fixed a&8ets Current &ssets Current liabilities 2JOI.849 162,106 2,501.849 162,106 229.815 Total net 2 434 140 2 434 140 Page 14
Arrahma Islamtc eentrÈ (CIO) Trn8tee8' Report The e1)arity'ipriipal assets aye bank balancK and wh, trade and ¢)thtrreeeivllbl4 8Thd iDveskneDts. The cbsTity's credit risk t8 Nimarily attributsble to its trade re¢¢iv&bl< The thnowits pr] in the b21an¢¢ Èheet are n¢t of allowoncts for doubtful recejvables. An allowhllce for impairmu)t is made where there is an identified105s event which. b&4ed on previryu is eVIdeC of a redlon in the reeovttability of the h flows. banks with high creilii.ratings by intQDarionai credit-valing agencies. The charity h&$ $18Dificant ts)ncntytM)ti of credit with exp)sore sptsl over a ] number of In order to tnaintsin liquidity to that smcieDt fund8 are available for 0tt8Oiti8 Opmtions and futute developmw the ¢harity uges of Ion8-terni s]x)rt-tcrm debt finar. Further detsils r¢garditig liqllldity risk can be fotsnd in th¢ StrteMe of ac¢outitmg pI¢le$ in the fuwJ¢i41 and sigTh¢d on its Ixl4lf by.. Abduilahi H8thi Kh¢yr¢ Tntte Page 3