l￿BUKHAR1 ANNUAL REPORT & FINANCIAL STATEMENTS FOR YEAR ENDED 31st January 2025 Charity Registration No. 1181877 MARKAZ BUKHARI CONTENTS Page Trustees, Annual Report Independent Examiner's report Statement of Financial ActivitEs Balance Sheet Notes to the Finan¢ial Statements MARKAZ BUKHARI TRUSTEES, REPORT FOR THE YEAR ENDED 31ST JANUARY 2025 The Trustees present their report and financial statements for year-end 31st January 2025 for the Charitable Incorporated Organisation. The financial statements have been prepared in accordance with Ihe Charitable Incorporated Organisation's trust deed, Ihe Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Re¢ommended Practice applicable to charities preparin9 their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published (FRS 1021 elective 1st January 2019. OBJECTIVES AND ACTIVITIES To advance the Islamic rèligion for the benefit of the publiG through holding prayers, lectures, regular classes and producing and distributing literature on Islam to enlighten others about Islam. Main activities.. Two weekly religious educational classes. Free online radio station where we broadcast Islamic lectures and lessons. Periodic community Islamic lectures. Educational Islamic annual conference for the local and wider community. Free literature distributed via our social network platforms for free. Website where we upload all of our lectures and publications for free. Public Benefit In considering the objectives and activilies, the Trustees have considered the Charity Commission's guidance on Public Benefil to ensure that the organisation is meeting its Public Benefit requirements. ACHIEVEMENTS AND PERFORMANCE During this period, the following outcomes were achieved.. The charity continued to rent venues to conduct Islamic educational programmes, community events and occasional warm meals for the community. The charity made the bold move to purchase a building to use as a hub for all of its charitable activities in the future. FINANCIAL REVIEW Total income for the period was £37,271 (2024.. £65,970) of which £31,746 12024.. £11.070) related to funding for projects upon which restrictions are placed. Total expenditure for the period was £23,698 12024.. £14,777) of which £16.840 (2024: £4,268) related to restricted funds, leaving a surplus for the period of £13,57312024. surplus £51,193). At 31 st January 2025 the Charitable Incorporated Organisation's reseNes stood al £231,79612024.. £218,223), of which £172.12812024: £157,222) represented restricted funds. Risk Management The main risks lo which the Charitable Incorporated Organisation is exposed as identrfied by the Trustees have been considered and systems have been established to mitlgate those risks. MARKAZ BUKHARI TRUSTEES, REPORT FOR THE YEAR ENDED 31ST JANUARY 2025 Reserves Policy It is the policy of the Charitable Incorporated Organisation to maintain unrestriGted funds, which are free reserves of one month's running costs should no further funding be received. As al the end of the financial period the unrestricled funds totalled £59,688 less Dawah fund 42,437 leaving a balance of £17,231. The Charitable Incorporated Organisation requires £876 for one rronth's running costs. The trustees plans for the balance of the unrestricted reserves is for the renovation of the new mosque. Plans for the future The charity operations currently rely heavily on hiring venues to carry out ils objectives and activities. Through acquiring the building, we will be able to move away from this over reliance on hired facilities to carry out charitable activities. The aim is lo continue to hire venues in the short term, and to continue to fundraise for the renovation costs of the building. with an aim to move to the building once completed. STRUCTURE, GOVERNANCE AND MANAGEMENT Markaz Bukhari is a registered Charitable Incorporated Organisation {CIOI, number 1181877 formed on 5th February 2019, under the terms of their constitution dated 4 n November 2018. There must be at least three Trustees. If the number falls below this minimum, the remaining Trustee or Trustees may act only to call a meeting of the Trustees or appoint a new Trustee. There is no maximum number of charity Trustees that may be appointed to the CIO. The first three Trustees are Yusuf No, Abdikarim Mohamud and Awil Ali Abokor. Apart from the first Trustees, every Trustee must be appointed for a tem of three years by a resolution passed at a properly convened meeting of the Trustees. In selecting individuals for appointment as Trustee, the Trustees must have regard to the skills, knowledge and experience needed for the elective administration of the CIO. The Trustees will make available to each new trustee, on or before his or her first appointment.. 11 } a copy of the current version of this constitution". and (2) a copy of the CIO'S latest Trustees, Annual Report and statement of accounts. REFERENCE AND ADMINISTRATIVE DETAILS Name Markaz Bukhari 1181877 Charity number Address & Office School House Church Road, Wavertree, Liverpool, L15 9ED The members of the Board of Trustees are as follows.. A Abokor YHO Amohamud AFMus3 Trustees (Resigned 30", July 2024) (Appointed 319"July 2024} MARKAZ BUKHARI TRUSTEES, REPORT FOR THE YEAR ENDED 31ST JANUARY 2025 Independent Examiner Hassan Aden ACCA 2 Sterry Street, London. SE14NE Lloyds Bank PLC Blackhealh London, PO Box 1000, BX11LT Bankers Signed on behalf ofthe Trustees Date C>G/G31loz6 MARKAZ BUKHARI I report on the accounts ofthe charitable company forthe year ended 31st January 2025 which are set out on pages 6 to 14. The trustees (who are also the directors of the company for the purposes of company law} are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144121 of the Charities Act 2011 (the 2011 Act) and thal an independent examination is needed. is my responsibility to.. examine the accounts urKler section 145 of the 2011 Acl, to follow the procedures laid down in the general Directions given by the Charity Commission (undersection 14515llb) ofthe 2011 Act, and to state whether particular matters have come to my attention. My examination was carried out in accordan￿ with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as lo whether the accounts present a 'true and fair, view. and the report is limited to those matters set out in the ststement below. In connection with my examination, no matter has come to my attention.. (11 which gives me reasonable cause to believe that in, any material respect, the requirements.. lo keep accounting records in accordance with section 386 of the Companies Act 2008., and lo prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the Cornpar)ies Act 2006 and with the methods and principles of the Statemenl of Recommended Practice". Accounting and Reporting Charities have not been met., or {2) to which, in my opinion. attention should be drawn in order to enable a proper understanding of the accounts to be reached. eclive res onsibilkies Res of trustees and examiner Basis of irnse endent examinerfs stalemert Inde ndent examinerfs statem8nl Name.. Hassan Aden Relevant professional qualification or body.. ACCA Address.. clo 2 Sterry Steet, London, SE14NE Dated 05.u3. >6 MARKAZ BUKHARI STATEMENT OF FINANCIAL ACTIVITIES FOR YEAR END 31st January 2025 Unrestricted Restricted Total Funds 2025 Funds 2025 2025 Notes Total 204 Income and Endowments from Donations Total income 31,746 31,746 37,271 65,970 65.970 2a 5,525 Expenditure on Charitable activities 16.840 23,698 14,777 6,858 Total expenditure Net income. net movement in funds 11,333) 14,906 13.573 51,193 Funds brought foNard 61,001 157,222 218,223 167,030 231 796 218.223 Funds carried forward 7.8,9 59,668 172.128 The notes on pages 8 to 14 form part of these accounts. All the above amounts relate to continuing activities of the Charitable Incorporated organisation. MARKAZ BUKHARI BALANCE SHEET AS AT 31st January 2025 31st January 2025 31st January 2024 Notes Fixed Assets Tangible fixed assets 174,009 153,442 Current Assets Debtors Cash at bank and in hand 2.946 56,361 59,307 2,946 63,355 66,301 Current liabillties Creditors.. amounts falling due within one year 1,520 1,520 64,781 Net current assets Total assets less current liabilities 231,796 218,223 Funds: Unrestricted funds Restricted fund 59,668 172,128 231.796 61,001 157,222 218 223 7,8,9 Approved by Trustees on.. 06 . 01 . L6 A.pqo MARKAZ BUKHARI NOTES TO THE FINANCIAL STATEMENTS FOR YEAR END 31st January 2025 1. Accounting Policies Basis of Accounting The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable In the UK and Republic of Ire13nd IFRS1021 elective 1¥1 January 2019 and Charilies Act 2011. The financi21 stalemenls are prepared in sterling, which is the functional currency of the Charrtable Incorporated Organisation. Monetary amounts in these financial statements are rounded to Ihe nearest £. The financial statements have been prepared under the historical cost convention with items recognised al cost or transaction value unless otherwise stated in the relevant notelsl to these accounts. The Charitable Incorporated Organisation has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. Going concern At the time of approving the accounts, the Trustees have a reasonable expeclation that the charity has adequate reseNes lo continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of aocountin9 in preparing the accounts. Fund accounting Unrestricted funds are the Charitable Incorporated Organisation. free reserves available for the Trustees to apply in accordance with the Charitable Incorporated Organisation's objectives. Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure. Income recognition All income is recognised once the Charitable Incorporated Organisation has entitlement to the income, there is sufficienl certainty of receipt and 50 it is probable that the income will be received, and the amount of income receivable can be measured reliably. Donations and legacies comprise of donations which are recognised in the accounts when received, with the exception of known legacies which are accounted for when their re￿Ipl is certain. Income from othertrading activities relates to fundraising events and is recognised when the amount is Gertain. Fixed Assets Capital expenditure is stated in the balance sheet at Cost less accumulated depreciation. Depreciation is provided to write OP the cost of each asset over its expected useful life as below.. Freehold Propety 2.10 Fer annum straight line basis on building and Improvements elements and Nil on freehold land MARKAZ BUKHARI NOTES TO THE FINANCIAL STATEMENTS FOR YEAR END 31st January 2025 Expenditure recognition Liabilities are recognised as soon as there is a legal or conslructive obligation committing the Charitable Incorporaled Organisation to that expenditure, rt is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accrual basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically inGluded in the reslriGtions, as specified by the donor. Expenditure on charitable activities relates to the operation of the Charitable Incorporated Organisation comprising of direct charitable expenditure to meet the objectives of the Charitable Incorporated Organisation. Support and governance costs relate to the management and operation of the organisalion and also compliance wilh constitutional and statutory requirements in producing Ihe annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the Cfvaritable Incorporated Organisation. Cash and cash oquivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-tem liquid investments with original maturities of three months or less, and bank overdrafts. Financial instruments The Charitable Incorporated Organisalion has elected to apply the provisions of Section 11 'Basic Financial Inslruments. and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charitable Incorporated Organisation's balan￿ sheet when the Charitable Incorporated Organisation becomes party to the contractual provisions of the instrument. Financial assets and liabilities are oxset, with the nel amounts presented in the financial statements. when there is a legally enforceable right to set OP the recognised amounts and there is an inlention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assels, which include debtors and cash and bank balances, are initially measured at transadion Pri￿ including Iransaclion costs and are subsequently carried at amortised cost using the elective 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 inlerest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument 1$ measured at the present value of the future receipts discounted at a market rate of inlerest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequenlly carried at amortised cost. using the elective interest rate method. MARKAZ BUKHARI NOTESTO THE FINANCIAL STATEMENTS FOR YEAR ENO 31st January 2025 Derecognition of financial liabilities Financial liabilities are derecognised when the Charitable Incorporated Organisation's contractual obligations expire or are discharged or can￿lled. Critical accounting estimates and judgements In the application of the Charitable Incorporated Organisation's accounting policies, the Trustees are required to make judgements, eslimates 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 on-going 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 penod of the revision and future periods where the revision affects both current and future periods. All expendrture is accounted for on an accrual's basis. All expenses, including support costs and governance costs. are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions. as specified by the donor. Cost of charitable activities relates to the operation of the Charitable Incorporated Or9anisation comprising of direct charitable expenditure lo meet the objectives of the Charitable Incorporated Organisation. Support and governance costs relate to the management and operation of the organisation and compliance with constitLrtional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Aclivities when payment has been approved by the Charrtable Incorporated Or9anisation. Taxation Income and gains are exempt from taxation as they are received and applied for charitable purposes only. The Charitable Incorporated Organisation benefits from various exemptions from taxation aPorded by tax legislation and is not liable to corporation tax on income or gains fallin9 within those exemptions. The Charilable Incorporated Organisation is not able to reGover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT. 2. Income and endowments from: a. Donations and legacies Donations Masjid restricted donation Unrestricted 2025 5,525 Restricted 2025 Total 2025 5,525 31,746 37.271 Total 2024 54,9(K) 11,070 65,970 31,746 31,746 5,525 Direct charitable Support & Governance Cost Expenditure Total 2024 3. Expenditure on charitable activities Total 2025 MARKAZ BUKHARI To advance the Islamic religion for the benefit of the public through holding prayers, lectures, regular classes and producing and distributing literature on Islam to enlighten others about Islam. 10,315 13,383 23.698 14,777 a. Analysed as foll0v￿. Direct Charitable Expendfflure,. Equipment and clothing Activities and events Venue hire Volunteer expenses Advertisement Online radio costs Website costs 2,025 211 1,952 4,082 3,902 2,024 332 277 4,180 4,020 52 169 345 9,375 168 10,315 Support and govèrnance costs.. Acoountancy Bank charges stationery Subscriptions Repairs Sundries Computer Support Depreciation 770 89 164 1,500 295 235 12,479 40 332 106 2,768 5.402 Totsl Expenditure on Charitable activities 23.698 14,777 £16,84012024. £4,288) of the above expenditure is restricted expenditure. b. Stsff Costs There were no employees during the period up to 31*1 January 2025. {2024'. Nil} The Trustees are not remunerated for their services and are not included in the above number of employees. No out-of-pocket expenses were reimbursed to Trustees during the period. MARKAZ BUKHARI NOTES TO THE FINANCIAL STATEMENTS FOR YEAR END 31ST JANUARY 2024 4. Tangible fixed assets Freehold Property Total Cost.. Cost at 1 Feb 2024 Additions Cost at 31 Jan 2025 156,292 20,567 176 859 156,292 20,567 176 8S9 Depreciation: Depreciation at 1 Feb 2024 Charge for the year Depre¢iation at 31 Jan 2025 2,850 2,850 2,850 Net Book Value: Net book value at 31 Jan 2025 174 009 174,009 Net book value at 31 Jan 2024 153,442 153,442 5. Debtors 2025 2024 Debtors 2.946 6. Creditors: amounts falling due within one year 2025 2024 Accruals Creditors Totals 1,520 1,520 1,520 MARKAZ BUKHARI IT NOTES TO THE FINANCIAL STATEMENTS FOR YEAR END 31 JANUARY 2024 7. Analysis of net assets between funds Tangible Fixed Assets Net Current Assets Totsl 2025 Unrestrl¢ted Funds General Fund Dawah Fund 17,231 42,437 59,668 17,231 42,437 59,668 Restri¢t8d Funds Masjid restricted donation 174,009 (1,8811 172,128 231 796 Totals 174.009 Tangible Fixed Assets Net Current Assets Total 2024 Unrestricted Funds General Fund Dawah Fund 18,564 42,437 61.001 18,564 42,437 61,001 Restricted Funds Masjid restricted donation 153,442 3,780 157,222 218,223 Totals 153.442 8. Unrestricted Funds Movements In the Year Movements in Income Reserves at beginning of year Expenditure Reserves at end of year 2025 General Fund Dawah Fund 18,564 42,437 61,001 5,525 6,858 17,231 42,437 6,858 Reserves at beginning of year Movements in Income Expenditure Reser4es at and of year 2024 18,564 42,437 61,001 General Fund Dawah Fund 16,610 2.822 52,078 54,900 868 9,641 10,509 16,610 MARKAZ BUKHARI NOTES TO THE FINANCIAL STATEMENTS FOR YEAR END 31st January 2025 General Fund is used to finance the Charitable Incorporated Organisation general activities and core costs as outlined in the Trustees, Report. Dawah Fund - Contribution towards the building of a mosque 9. Unrestricted Funds Movements in the Year Movements in Income Reserves at beginning of year Re$er4es at end of year Expenditure 2025 Masjid restricled donation 157,222 157,222 31,746 16,840 172,128 172 128 Reserves at beglnning of year Reserves at end of year Movements in Income Expenditure 2024 Masjid restricted donation 150,420 150,420 11,070 11,070 4,268 157,222 157 222 These are monies given to the Charitable Incorporated Organisation to be spent at the discretion of the Board of Trustees for specifi¢ charitable purposes, as follows.. Masjid restrictsd donation - Contribution lowards the building of a mosque. 10. Guarantees and Other Financial Commitments There are no financial commitments under nOn-Can￿lIable operating leases. 11. Related Parties There We￿ no material related party transaction$ during this year which require disclosure. 12. Limited liabllity of members In the event of winding up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling ils debts and liabililies. 1A.