Charity registr*ton number.. 1181445 Arrahma Islamic centre (CIO) Annual Repn and Financi￿ Sts*ments 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 Re￿1 Ststement of Financial A¢ttvities B￿an¢% 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$trntion Number 1181445 So]ifiton John & Sagger Solicito 34. 36 Gray Inn Road London WCIX8HR Independent Ex#miner Nasir Rafiq Independent Examin Bradfon Court 123-131 Bradfort Street Birmingham B120NS Page I Arrahma Islamic eetttre (CIO) Trnstees, Rew•rt The trusiees present the atthual report tO8ether with the fina￿la1 statements of the charity for the year ended 31 Ma￿h 2023. Objettives aetivities Objects l￿ddin5 To promote any charitsble purrKJse5 forthe benefit of the o)mmunity in Binnjngham. To advance the Islamic Teligion. and any other charitable purposes which the tW*es from time to time deiemline are suitable including the relief of ￿verty a￿j sicknes% the prt)motion of education and the provision in th¢ int¢re5ts of social w¢lfaTe of recreation￿ f¥ilitte5. Pmbuc benetil Th¢ trustees eonfinn that they have complied with the requircments olsection 17 of the Charities Act 2011 to have due regard to tht publie benefit guidance published by the Charity Commission for Eng18nd and Wates. Fit)anel*l revirw Pollcy reser The Trustees L¥)nsiderthe level of held reserves to be a&qua*. StrurtUT< govern•*ce attd Nathre ofgffltrning documÉni The ehariiy is a Charity ineorwrated (k8aniwion (CIO - Foundation) and ￿8]Stered with the Chtirity Commi5SiOrt on th¢ 07 Jan 2019 (new Charity re8 1181445). Fln8nei*l IMstYuments OljJecliv￿ andpolid£s The Charity'$ 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 speCUl￿1ve purpose5. Cashflow risk The charity's activities expose tl primarily to the finanCE￿ risks of changes in foreign eunrncy exchange rate5 and In￿reST rates. The ¢harity use5 forei80 exdwige fon+wd contr¥ts and interest rate swap cOntr￿ts 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 credit￿tIng 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 ￿t￿re 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* Stand￿th (United Kingdom Ge4ortin8 by Charities: Staiement of Re¢ommend¢d Prartice applicable to ch￿ltieS preparin8 their accounts in a¢cordance with the Financi￿ Reporting SI￿d&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 prep*ring 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 M￿vred. 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 reCo￿ls£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 ag￿gate similar wsts lo that ¢*gory. I￿le￿ 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 depr￿latioN 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 In￿te$.$ 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 reco￿lSe￿. 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 Chap*r 3 Part I l of the Corpx)r*ion 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 Initi￿lY 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 V￿Ue. over the1rexp￿d useffijl e￿nomiC 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 Initi￿lY at the trdnsaction price. They are SubseqUen￿Y 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 eff￿tIve inierest metw and is included in Inte￿St 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 t0￿me 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 Ma￿h 2023 2 Income from doD4tions leg•des Unrestricted fuDds Gener*1 Tot*1 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 CeDer*l Totsi 2022 R¢ntai income 211527 211527 190.212 4 Expehditure OTr ch*ritsbl¢ 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 $￿pport costs Governanee costs Unrestrfeted Tfjt*l 2023 G¢ner#l Total 21122 Stsff w5ts Wage5 and sajaries 7 Net incomingloutgoiDg rewur Net lout80in8yincoming restyjrces forthe year include: 2(J23 2022 Lkpreciation of fixed wets 66223 8 Staff cog14 The a88re8ate payroll costs were as follows: 2023 2022 Staff tosts during the year were: Wage5 and salartes 104.019 No ernployee rEc¢ived emoluments of than £60.(1￿ during the y 9 1ndep¢ndtnt exarniner's remuDeratioth Page 12 Arrahma Islamic celltre (CIO) Notes to the Financial StatemeDts for the Yerdr Ended 31 March 2023 11) Tgx*tion The charity ts a registued charity and is ther¢for¢ excmpt from taxation. 11 Tanglbl¢ fixed assets L•nd gDd buildings aDd Motor vebitles Total Cost At l April 2022 Additions 2.602230 67.045 50,023 5.472 2.657.725 70.045 At 31 Ma￿h 2023 2 669 275 Depreciatio At l April 2022 Charge forthe year Ai 31 Ma￿h 2023 .472 2 727 770 147,IXJO 53J86 5.591 11.108 3285 729 155.876 66.223 21WJ86 Net Ixbok value 222.099 At 31 March 2023 2.46&889 33 J24 At 31 March 202Z 2.505,671 30 2.187 2 501849 12 Debtors 2023 2022 Other debtors 48.785 41.673 13 CAsh and f•slt eqtsiv•ltnts 2Q2J 2022 C&%h At bank 25.92i 120433 14 Cr¢ditors: *Dlllllllts f*UiDg due within one year 2023 2022 Other ¢fEditors Accru4ls 199.022 7.529 206 551 222,935 6.880 Page 13 Arrahma Islatnic centre (CIO) Notes to the Financial Ststements for the Year Ended 31 March 2023 IS Funds B•Iall￿ *1 i April 21122 BAlaDce at 31 March 2023 expended Unrestricted Genernt ?434 140 B*l4nte at I April 2021 335 132 395,444 2.373.828 Bxlance at31 March 2022 pend￿1 Utsr¢gtricted funds General 1089 436 310983 2 434 140 16 Anaty$ts of nrt *55ets bttwe¢n fiubth UDr¢strid￿l 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'ipri￿ipal 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 eVIde￿C of a red￿lon in the reeovttability of the h flows. banks with high creilii.ratings by intQDarionai credit-valing agencies. The charity h&$ $18Dificant ts)nc*ntytM)ti of credit with exp)sore sptsl over a ]￿ number of In order to tnaintsin liquidity to that sm*cieDt fund8 are available for 0tt8Oiti8 Opmtions and futute developmw the ¢harity uges of Ion8-terni s]x)rt-tcrm debt finar￿. Further detsils r¢garditig liqllldity risk can be fotsnd in th¢ StrteMe￿ of ac¢outitmg p￿I¢le$ in the fuwJ¢i41 and sigTh¢d on its Ixl4lf by.. Abduilahi H8thi Kh¢yr¢ Tn￿tte Page 3