Charity registration number: 1181445
Arrahma Islamic centre (CIO)
Annual Report and Financial Statements
for the Year Ended 31 March 2025
Arrahma Islamic centre (CIO)
Contents
| Contents | |
|---|---|
| Reference and Administrative Details | 1 |
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 15 |
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 Bradfort Court 123-131 Bradfort 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 2025.
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.
Arrahma Masjid was first established in 2004 to cater for the needs of the thriving Muslim population in the city of Birmingham and continues to be one of Birmingham’s largest mosques to date. Located within easy access to the city of Birmingham, the Masjid aspires not only to provide facilities to perform the five daily prayers, but also to uplift the ummah and cater to be an educational and spiritual hub for the growing Muslim community.
Since its inception in 2004 the Masjid has undoubtedly become an invaluable centre of worship and plays an important role in providing both prayer facilities and educational classes. In addition Arrahma Masjid currently holds classes on Qur’an, Islamic sciences and Arabic language and has also held many Islamic conferences and seminars promoting interfaith dialogue within the community.
Other activities based at Arrahma Masjid include youth recreational activities, matrimonial services and family counselling services to cater for the growing needs of the Muslim society. Arrahma Masjid has the capacity to accommodate a large number of worshipers and currently has accommodated over 6000 worshippers during the Eid congregational prayers.
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.
Page 2
Arrahma Islamic centre (CIO)
Trustees' Report
Achievements and performance
During the year under review, Arrahma Islamic Centre continued to deliver a wide range of charitable activities in furtherance of its objects to advance religious practice, education, and community welfare for the benefit of the local community in Birmingham and beyond. The trustees consider that the activities undertaken provide significant practical and spiritual benefit to both those who worship at the Centre and the wider community. (Arrahma Islamic Centre)
Religious and Spiritual Activities
• The Centre remained open throughout the year to facilitate daily prayers and weekly Jum’ah (Friday) congregations, attracting regular participation from over 500 worshippers for daily prayers and more than 1,500 attendees for Friday prayers. (Arrahma Islamic Centre)
• We provided communal worship opportunities and support during key religious festivals. During Ramadan, the Centre prepared and shared iftar meals to support those breaking their fast together. Eid al-Fitr and Eid al-Adha were celebrated with large congregational prayers and community gatherings in the Mosque and at local parks, fostering social cohesion and community spirit. (Arrahma Islamic Centre)
• Marriage services, including civil marriage ceremonies and traditional Islamic Nikkah, were facilitated on site, supporting more than 30 couples to solemnise their unions in a culturally appropriate and spiritually meaningful setting. (Arrahma Islamic Centre)
• The Centre continued to deliver its Qur’anic memorisation (Hifz) programme, a core educational offering for young people, with over 40 participants engaged in regular classes. (Arrahma Islamic Centre)
• A new series of Islamic awareness lectures was launched during the year, open to all members of the community, promoting religious knowledge and understanding. (Arrahma Islamic Centre)
• The Centre maintained active involvement in inter-faith dialogue through the Faith Communities Forum for the Birmingham area, promoting mutual understanding and community cohesion across religious and cultural groups. (Arrahma Islamic Centre)
Education, Social and Community Activities
• The Centre’s weekend homework club and IT classes continued to provide academic support to local children, with over 40 young people regularly participating. This initiative was supported by a team of volunteer tutors and offered in a supervised and inclusive environment. (Arrahma Islamic Centre)
• Weekly IT classes were delivered utilising a small IT suite, offering essential digital skills training to community members of all ages. (Arrahma Islamic Centre)
• Sporting activities, including organised football sessions for children and teenagers (ages 6+), were provided every Friday evening at Small Heath Leisure Centre, encouraging healthy lifestyle choices and positive youth engagement. (Arrahma Islamic Centre)
Through these varied programmes, the Centre has strengthened its role as a place of worship, education, recreation, and social support, contributing to the spiritual well-being and social inclusion of local residents. The trustees remain committed to expanding and enhancing these activities in line with the Centre’s strategic objectives and the evolving needs of the community. (Arrahma Islamic Centre)
Financial review
During the charity raised £232k (2024: £344k) and spent £306k (2024: £424k). The charity had a net movement in funds of negative £74k (2024: £79k). The charity had carried forward reserves of £2.2m (2024: £2.3m)
Policy on reserves
The Trustees consider the level of held reserves to be adequate.
Page 3
Arrahma Islamic centre (CIO)
Trustees' Report
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.
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 .................... and signed on its behalf by:
Abdullahi Hashi Kheyre Trustee
Page 4
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 ................. and signed on its behalf by:
Abdullahi Hashi Kheyre Trustee
Page 5
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 2025 which are set out on pages 7 to 15.
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
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:
-
accounting records were not kept in respect of Arrahma Islamic centre (CIO) as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
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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 Nasir Rafiq
Bradfort Court 123-131 Bradfort Street Birmingham B12 ONS
Date: 28 January 2026
Page 6
Arrahma Islamic centre (CIO)
Statement of Financial Activities for the Year Ended 31 March 2025
| Unrestricted Total |
|
|---|---|
| funds 2025 |
|
| Note | £ £ |
| Income and Endowments from: | |
| Donations and legacies | 191,572 191,572 |
| Other income | 41,010 41,010 |
| Total income | |
| 232,582 232,582 |
|
| Expenditure on: | |
| Raising funds | (75) (75) |
| Charitable activities | (306,096) (306,096) |
| Total expenditure | |
| (306,171) (306,171) |
|
| Net expenditure | |
| (73,589) (73,589) |
|
| Net movement in funds | |
| (73,589) (73,589) |
|
| Reconciliation of funds | |
| Total funds brought forward | |
| 2,293,982 2,293,982 |
|
| Total funds carried forward 13 |
|
| 2,220,393 2,220,393 |
|
| 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 | (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 13 |
|
| 2,293,982 2,293,982 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 13.
Page 7
Arrahma Islamic centre (CIO)
(Registration number: 1181445) Balance Sheet as at 31 March 2025
| 2025 2024 |
|
|---|---|
| Note | £ £ |
| Fixed assets | |
| Tangible assets 9 |
2,387,620 2,442,801 |
| Current assets | |
| Debtors 10 |
48,785 48,785 |
| Cash at bank and in hand 11 |
15,219 12,447 |
| 64,004 61,232 |
|
| Creditors: Amounts falling due within oneyear 12 |
|
| (231,231) (210,051) |
|
| Net currentliabilities | |
| (167,227) (148,819) |
|
| Netassets | |
| 2,220,393 2,293,982 |
|
| Funds of the charity: | |
| Unrestricted income funds | |
| Unrestricted funds | 2,220,393 2,293,982 |
| Total funds 13 |
|
| 2,220,393 2,293,982 |
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on
.................... and signed on their behalf by:
Abdullahi Hashi Kheyre Trustee
Page 8
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
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 9
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
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 10
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
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 11
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
- 2 Income from donations and legacies
| 2 Income from donations and legacies |
|||
|---|---|---|---|
| Unrestricted | |||
| funds | Total | Total | |
| General | 2025 | 2024 | |
| £ | £ | £ | |
| Donations and legacies; | |||
| Donations from individuals | 191,572 | 191,572 | 189,201 |
| 191,572 | 191,572 | 189,201 |
- 3 Other income
| 3 Other income |
|
|---|---|
| Unrestricted | |
| funds Total Total |
|
| General 2025 2024 |
|
| £ £ £ |
|
| Rental income | 34,510 34,510 155,090 |
| 4 Expenditure on charitable activities |
|
| Unrestricted | |
| funds Total Total |
|
| General 2025 2024 |
|
| £ £ £ |
|
| Employment | 103,547 103,547 85,862 |
| Facilities | 184,938 184,938 261,067 |
| Governance | 14,433 14,433 23,315 |
| TravellingExpense | 3,178 3,178 46,518 |
| 306,096 306,096 416,762 |
Page 12
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
£306,096 (2024 - £416,762) of the above expenditure was attributable to unrestricted funds and £Nil (2024 - £Nil) to restricted funds.
5 Analysis of governance and support costs
Governance costs
| Governance costs | |
|---|---|
| Unrestricted | |
| funds | Total Total |
| General | 2025 2024 |
| £ | £ £ |
| Independent examiner fees | |
| Examination of the financial statements 3,500 |
3,500 3,500 |
| Legal fees 10,933 |
10,933 19,815 |
| 14,433 | 14,433 23,315 |
| 6 Staff costs |
|
| The aggregate payroll costs were as follows: | |
| 2025 2024 |
|
| £ £ |
|
| Staff costs during the year were: | |
| Wages and salaries | 103,547 85,862 |
No employee received emoluments of more than £60,000 during the year
| 7 Independent examiner's remuneration |
|
|---|---|
| 2025 2024 |
|
| £ £ |
|
| Examination of the financial statements | |
| 3,500 3,500 |
Page 13
Notes to the Financial Statements for the Year Ended 31 March 2025
Arrahma Islamic centre (CIO)
8 Taxation
The charity is a registered charity and is therefore exempt from taxation.
9 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 2024 2,669,275 50,023 8,472 2,727,770 |
|
| Additions 5,327 - - 5,327 |
|
| At 31 March 2025 2,674,602 50,023 8,472 2,733,097 |
|
| Depreciation | |
| At 1 April 2024 253,772 25,030 6,167 284,969 |
|
| Charge for theyear 53,492 6,248 768 60,508 |
|
| At 31 March 2025 307,264 31,278 6,935 345,477 |
|
| Net book value | |
| At 31 March 2025 2,367,338 18,745 1,537 2,387,620 |
|
| At 31 March 2024 2,415,503 24,993 2,305 2,442,801 |
|
| 10 Debtors |
|
| 2025 2024 |
|
| £ £ |
|
| Other debtors | 48,785 48,785 |
| 11 Cash and cash equivalents |
|
| 2025 2024 |
|
| £ £ |
|
| Cash at bank | 15,219 12,447 |
| 12 Creditors: amounts falling due within one year |
|
| 2025 2024 |
|
| £ £ |
|
| Other creditors | 216,702 199,022 |
| Accruals | 14,529 11,029 |
| 231,231 210,051 |
Page 14
Arrahma Islamic centre (CIO)
Notes to the Financial Statements for the Year Ended 31 March 2025
| 13 Funds |
13 Funds |
|---|---|
| Balance at 1 April 2024 Incoming resources Resources expended Balance at 31 March 2025 |
|
£ £ £ £ |
|
| Unrestricted funds | |
| General 2,293,982 232,582 (306,171) 2,220,393 |
|
| Balance at 1 April 2023 Incoming resources Resources expended Balance at 31 March 2024 |
|
£ £ £ £ |
|
| Unrestricted funds | |
| General 2,373,828 344,291 (424,137) 2,293,982 |
|
| 14 Analysis of net assets between funds |
|
| Unrestricted | |
| funds Total funds |
|
| General 2025 |
|
| £ £ |
|
| Tangible fixed assets | 2,387,620 2,387,620 |
| Current assets | 64,004 64,004 |
| Current liabilities | (231,231) (231,231) |
| Total net assets | |
| 2,220,393 2,220,393 |
|
| 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 |
Page 15