Charity registration number: 1181445 ## Arrahma Islamic centre (CIO) Annual Report and Financial Statements for the Year Ended 31 March 2024 ## **Arrahma Islamic centre (CIO)** ## **Contents** |**Contents**|| |---|---| |Reference and Administrative Details|1| |Trustees' Report|2 to 3| |Statement of Trustees' Responsibilities|4| |Independent Examiner's Report|5| |Statement of Financial Activities|6| |Balance Sheet|7| |Notes to the Financial Statements|8 to 14| ## **Arrahma Islamic centre (CIO)** ## **Reference and Administrative Details** ## **Trustees** Abdi Karim Hassan Osman Ali Farah Abdulkarim Hirsi Salad Abdullahi Hashi Kheyre Abdirahman Mahamud Hersi **Principal Office** 29 Whitmore road Birmingham B10 0NR **Charity Registration Number** 1181445 **Solicitors** John & Sagger Solicitors 34 - 36 Gray Inn Road London WC1X 8HR ## **Independent Examiner** Nasir Rafiq Independent Examiner Bradford Court 123-131 Bradford Street Birmingham B12 ONS Page 1 ## **Arrahma Islamic centre (CIO)** ## **Trustees' Report** The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2024. ## **Objectives and activities** ## _**Objects and aims**_ To promote any charitable purposes for the benefit of the community in Birmingham. To advance the Islamic religion, and any other charitable purposes which the trustees from time to time determine are suitable including the relief of poverty and sickness, the promotion of education and the provision in the interests of social welfare of recreational facilities. ## _**Public benefit**_ The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. ## **Financial review** ## _**Policy on reserves**_ The Trustees consider the level of held reserves to be adequate. ## **Structure, governance and management** ## _**Nature of governing document**_ The charity is a Charity Incorporated Organisation (CIO - Foundation) and registered with the Charity Commission on the 07 Jan 2019 (new Charity reg 1181445). ## **Financial instruments** ## _**Objectives and policies**_ The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes. ## _**Cash flow risk**_ The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. Page 2 ## **Arrahma Islamic centre (CIO)** ## **Trustees' Report** ## _**Credit risk**_ The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. ## _**Liquidity risk**_ In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements. The annual report was approved by the trustees of the charity on **31/01/2025** and signed on its behalf by: Page 3 ## **Arrahma Islamic centre (CIO)** ## **Statement of Trustees' Responsibilities** The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the trustees of the charity on 31/01/2025 and signed on its behalf by: Page 4 ## **Arrahma Islamic centre (CIO)** ## **Independent Examiner's Report to the trustees of Arrahma Islamic centre (CIO)** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2024 which are set out on pages 6 to 14. ## **Respective responsibilities of trustees and examiner** As the charity’s trustees of Arrahma Islamic centre (CIO) you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the Arrahma Islamic centre (CIO)'s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner’s statement** Since Arrahma Islamic centre (CIO)'s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Nasir Rafiq, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of Arrahma Islamic centre (CIO) as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination. 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 accounts to be reached. ...................................... Nasir Rafiq Independent Examiner Bradford Court 123-131 Bradford Street Birmingham B12 ONS Date:............................. Page 5 ## **Arrahma Islamic centre (CIO)** ## **Statement of Financial Activities for the Year Ended 31 March 2024** ||**Unrestricted**
**Total**| |---|---| ||**funds**
**2024**| |**Note**|**£**
**£**| |**Income and Endowments from:**|| |Donations and legacies|189,201
189,201| |Other income|155,090
155,090| |Total income|| ||344,291
344,291| |**Expenditure on:**|| |Raising funds|(7,375)
(7,375)| |Charitable activities
4|(416,762)
(416,762)| |Total expenditure|| ||(424,137)
(424,137)| |Net expenditure|| ||(79,846)
(79,846)| |Net movement in funds|| ||(79,846)
(79,846)| |**Reconciliation of funds**|| |Total funds brought forward|| ||2,373,828
2,373,828| |Total funds carried forward
15|| ||2,293,982
2,293,982| ||| ||**Unrestricted**
**Total**| ||**funds**
**2023**| |**Note**|**£**
**£**| |**Income and Endowments from:**|| |Donations and legacies|123,605
123,605| |Other income|211,527
211,527| |Total income|| ||335,132
335,132| |**Expenditure on:**|| |Charitable activities|(329,221)
(329,221)| |Other expenditure
5|(66,223)
(66,223)| |Total expenditure|| ||(395,444)
(395,444)| |Net expenditure|| ||(60,312)
(60,312)| |Net movement in funds|| ||(60,312)
(60,312)| |**Reconciliation of funds**|| |Total funds brought forward|| ||2,434,140
2,434,140| |Total funds carried forward
14|| ||2,373,828
2,373,828| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 15. Page 6 ## **Arrahma Islamic centre (CIO)** ## **(Registration number: 1181445) Balance Sheet as at 31 March 2024** ||**2024**
**2023**| |---|---| |**Note**|**£**
**£**| |**Fixed assets**|| ||| |Tangible assets
10|2,442,801
2,505,671| |**Current assets**|| ||| |Debtors
11|48,785
48,785| |Cash at bank and in hand
12|12,447
25,923| ||61,232
74,708| |**Creditors: Amounts falling due within oneyear**
13|| ||(210,051)
(206,551)| |**Net current**liabilities|| ||(148,819)
(131,843)| |**Net**assets|| ||2,293,982
2,373,828| |**Funds of the charity:**|| |**Unrestricted income funds**|| ||| |Unrestricted funds|2,293,982
2,373,828| |**Total funds**
14|| ||2,293,982
2,373,828| The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on **31/01/2025** and signed on their behalf by: Page 7 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** ## **1 Accounting policies** ## **Statement of compliance** 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 (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. ## **Basis of preparation** Arrahma Islamic centre (CIO) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **Exemption from preparing a cash flow statement** The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. ## **Going concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## **Income and endowments** Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability. ## _**Donations and legacies**_ Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. ## **Expenditure** All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. ## _**Raising funds**_ These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. Page 8 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** ## _**Charitable activities**_ Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## _**Grant provisions**_ Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. ## **Governance costs** These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses. ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Tangible fixed assets** Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. ## **Depreciation and amortisation** Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 9 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** ## **Borrowings** Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. Page 10 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** - **2 Income from donations and legacies** |**2**
**Income from donations and legacies**|||| |---|---|---|---| ||**Unrestricted**||| ||**funds**|**Total**|**Total**| ||**General**|**2024**|**2023**| ||**£**|**£**|**£**| |Donations and legacies;|||| |Donations from individuals|189,201|189,201|123,605| ||189,201|189,201|123,605| - **3 Other income** |**3**
**Other income**||||| |---|---|---|---|---| ||**Unrestricted**|||| ||**funds**|**Total**|**Total**|| ||**General**|**2024**|**2023**|| ||**£**|**£**|**£**|| |Rental income|155,090|155,090|211,527|| |**4**
**Expenditure on charitable activities**||||| ||**Unrestricted**|||| ||**funds**|**Total**|**Total**|| ||**General**|**2024**|**2023**|| ||**£**|**£**|**£**|| |Employment|85,862|85,862|104,019|| |Facilities|261,067|261,067|219,894|| |Governance|23,315|23,315|9,840|| |Travelling Expenses|46518|46,518|11379.66|| |Grants|0|0|50,311|| ||416,762|416,762|395,444|| Page 11 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** ## **5 Analysis of governance and support costs** |**5**
**Analysis of governance and support costs**||||| |---|---|---|---|---| |**Governance costs**||||| ||**Unrestricted**|||| ||**funds**||**Total**
**Total**|| ||**General**||**2024**
**2023**|| ||**£**||**£**
**£**|| |Independent examiner's fee|3,500||3,500
3500|| |Legal andprofessional fees|19,815||19,815
6,340|| ||23,315||23,315
9,840|| |**6**
**Net incoming/outgoing resources**||||| |Net outgoing resources for the year include:||||| ||||**2024**|**2023**| ||||**£**|**£**| |Depreciation of fixed assets|||62,870
66,223|| |**7**
**Staff costs**||||| |The aggregate payroll costs were as follows:||||| ||||**2024**
**2023**|| ||||**£**
**£**|| |**Staff costs during the year were:**||||| |||||| |Wages and salaries|||85,862
104,019|| |No employee received emoluments of more than £60,000 during the year||||| |**8**
**Independent examiner's remuneration**||||| ||||**2024**
**2023**|| ||||**£**
**£**|| |**Other fees to examiners**||||| |||||| |The examining of accounts of any associate of the charity|||3,500
3,500|| Page 12 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** ## **9 Taxation** The charity is a registered charity and is therefore exempt from taxation. ## **10 Tangible fixed assets** |**Land and**
**buildings**
**Furniture and**
**equipment**
**Motor vehicles**
**Total**|**Land and**
**buildings**
**Furniture and**
**equipment**
**Motor vehicles**
**Total**| |---|---| |
**£**

**£**
**£**
**£**|| |**Cost**|| |At 1 April 2023
2,669,275
50,023
8,472
2,727,770|| |At 31 March 2024
2,669,275
50,023
8,472
2,727,770|| |**Depreciation**|| |At 1 April 2023
200,386
16,699
5,014
222,099|| |Charge for theyear
53,386
8,331
1,153
62,870|| |At 31 March 2024
253,772
25,030
6,167
284,969|| |**Net book value**|| |At 31 March 2024
2,415,503
24,993
2,305
2,442,801|| |At 31 March 2023
2,468,889
33,324
3,458
2,505,671|| |**11**
**Debtors**|| ||**2024**
**2023**| ||**£**
**£**| |Other debtors|48,785
48,785| |**12**
**Cash and cash equivalents**|| ||**2024**
**2023**| ||**£**
**£**| |Cash at bank|12,447
25,923| |**13**
**Creditors: amounts falling due within one year**|| ||**2024**
**2023**| ||**£**
**£**| |Other creditors|199,022
199,022| |Accruals|11,029
7,529| ||210,051
206,551| Page 13 ## **Arrahma Islamic centre (CIO)** ## **Notes to the Financial Statements for the Year Ended 31 March 2024** |**14**|**Funds**||||| |---|---|---|---|---|---| |||**Balance at 1**|**Incoming**|**Resources**|**Balance at 31**| |||**April 2023**|**resources**|**expended**|**March 2024**| |||**£**|**£**|**£**|**£**| |**Unrestricted funds**|||||| |General||2,373,828|344,291|(424,137)|2,293,982| |||**Balance at 1**|**Incoming**|**Resources**|**Balance at 31**| |||**April 2022**|**resources**|**expended**|**March 2023**| |||**£**|**£**|**£**|**£**| |**Unrestricted funds**|||||| |General||2,434,140|335,132|(395,444)|2,373,828| |**15**
**Analysis of net assets between funds**||| |---|---|---| ||**Unrestricted**|| ||**funds**|**Total funds**| ||**General**|**2024**| ||**£**|**£**| |Tangible fixed assets|2,442,801|2,442,801| |Current assets|61,232|61,232| |Current liabilities|(210,051)|(210,051)| |Total net assets|2,293,982|2,293,982| ||**Unrestricted**|| ||**funds**|**Total funds**| ||**General**|**2023**| ||**£**|**£**| |Tangible fixed assets|2,505,671|2,505,671| |Current assets|74,708|74,708| |Current liabilities|(206,551)|(206,551)| |Total net assets|2,373,828|2,373,828| Page 14