REGISTERED COMPANY NUMBER: CE020274 (England and Wales) REGISTERED CHARITY NUMBER: 1187331
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 1st April 2022
for
AL-RAHMAH FAITH CENTRE
Silver Arc Chartered Certified Accountants 1 Quality Court Chancery Lane London WC2A 1HR
AL-RAHMAH FAITH CENTRE
Contents of the Financial Statements FOR THE YEAR ENDED 1ST APRIL 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | to | 7 |
| Notes to the Financial Statements | 8 | to | 13 |
| Detailed Statement of Financial Activities | 14 | to | 15 |
AL-RAHMAH FAITH CENTRE
Report of the Trustees FOR THE YEAR ENDED 1ST APRIL 2022
The trustees present their report with the financial statements of the charity for the Period ended 01 April 2022. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and public benefit
The objectives of Al-Rahmah faith centre as set out in its Articles of Association are:
To advance the religion of Islam in the UK for the benefit of the public through the holding of prayer meetings, lectures, religious activities to enlighten others about the religion of Islam.
In pursuance of these objects, the charity hosts a range of activities for the benefit of the public.
Significant activities
The Charity has provided facilities to the general public at the centre in Leeds.
A wide range of activities are on offer for both Muslims and non-Muslims. We place strong emphasis on including everyone in the community and developing strong characteristics in our youth to treat everyone equal in society and not to discriminate against race, religion or sexual orientation.
We provide religious teachings to adults and children, developing Islamic Manners in accordance with the teachings of Prophet Muhammad (PBUH).
Since the pandemic, the charity has adapted the way it has delivered its services and activities. Government guidelines were strictly followed and social distancing measures were in place all times while on premises.
Religious Activities
1) Prayer
The masjid provides a centre for our prayers and worship and for the activities associated with our faith. During the week we have about 100 - 150 people who regularly attend daily and Friday Prayers.
2) Marriage Solemnisation
Family life is the building block of a successful society, and marriage is an occasion of great joy in the Muslim community. Al-Rahmah facilitates the solemmsation of an Islamic contract of marriage. The newly married couple is provided with an official "Nikah" certificate to show that they have been married according to Islamic law.
3) Religious Advice & Counselling
Muslims turn to masjid for guidance and advice in all matters of their day-to-day life. Al-Rahmah has trained imams to advice and counsel on the many concerns of the community such as bereavement, cultural challenges, generational issues and matrimonial problems
Public benefit
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity.
Page 1
AL-RAHMAH FAITH CENTRE
Report of the Trustees FOR THE YEAR ENDED 1ST APRIL 2022
OBJECTIVES AND ACTIVITIES
Volunteers
The charity benefits from a team of dedicated and committed volunteers, who are skilled in many areas. They are key to the success of the charity in delivering public benefit to the community. They have contributed their time and efforts to drive the organisation forward to ensure that more people, particularly the youth, can benefit from the services and activities that the charity offer. The madrassa will be wholly managed and run by teachers, volunteers and helpers. The volunteers will also run all the recreational activities for the ladies and the youth, as well as maintaining the building to ensure a safe environment for everyone. All volunteers who will be working closely with children would be required to get DBS checked and trained for health and safety.
FINANCIAL REVIEW
Reserves policy
Charity has funds applied to the relevant purpose. An analysis of expenditure is shown in the Statement of Financial Activities on page 6.
The reserves currently stands at £293,590 and details are as follows: Unrestricted funds £76,749 Restricted funds £216,841
FUTURE PLANS
Governance and Administration
The trustees will ensure that all the policies are in place, reviewed regularly and all volunteers are up to date with their training to ensure compliance with safeguarding children, health and safety and data protection. All volunteers who are working closely with children have been DBS checked and any new volunteers will undergo this check. A suitable insurance policy is in place.
Funding
The financial reserve of the charity is in a good position to provide more classes to benefit the Community. We will encourage users to set up standing orders and hold fundraising events.
Projects
The charity aims to grow and expand its services to more people at the Leeds centre as well develop other centres across the UK. We also plan to arrange regular visits to the countryside during all seasons to encourage families and youth to appreciate nature and experience an alternative to the busy urban lifestyle.
Our youth club volunteers will be developing their sports timetable with additional exercise/gym classes which will run mostly free of charge or at reduced rates.
Developing Relationships
We will continue to open our activities/services to both Muslims and non-Muslims. We will have open and interfaith days to challenge misconceptions about Islam and explain Muslim concepts. We will continue to think of new ways to draw in more users from the wider community.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a CIO
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
CE020274 (England and Wales)
Registered Charity number
1187331
Page 2
AL-RAHMAH FAITH CENTRE
Report of the Trustees FOR THE YEAR ENDED 1ST APRIL 2022
Registered office
Unit 6 Gemini Business park Sheepscar Way Leeds LS7 2BB
Trustees
A P Shan M Iqbal M Rashid (Chair)
Independent Examiner
Silver Arc Chartered Certified Accountants 1 Quality Court Chancery Lane London WC2A 1HR
Approved by order of the board of trustees on 21st August 2023 and signed on its behalf by:
M Rashid - Trustee
Page 3
Independent Examiner's Report to the Trustees of Al-Rahmah Faith Centre
Independent examiner's report to the trustees of Al-Rahmah Faith Centre ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 1st April 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Usman Zahoor
Silver Arc Chartered Certified Accountants 1 Quality Court Chancery Lane London WC2A 1HR
21st August 2023
Page 4
AL-RAHMAH FAITH CENTRE
Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2022
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 125,788 Charitable activities 3 Mosque and community 4,520 Sadaka & Zakat - Total 130,308 EXPENDITURE ON Charitable activities 4 Mosque and community 72,460 Sadaka & Zakat 1,290 Other 4,680 Total 78,430 NET INCOME 51,878 RECONCILIATION OF FUNDS Total funds brought forward 24,871 TOTAL FUNDS CARRIED FORWARD 76,749 |
PERIOD 13.1.20 YEAR ENDED TO 1.4.22 1.4.21 Restricted Total Total fund funds funds £ £ £ - 125,788 39,217 112,557 117,077 108,452 1,809 1,809 773 114,366 244,674 148,442 4,420 76,880 47,809 2,330 3,620 - - 4,680 1,135 6,750 85,180 48,944 107,616 159,494 99,498 109,225 134,096 34,598 216,841 293,590 134,096 |
|---|---|
The notes form part of these financial statements
Page 5
AL-RAHMAH FAITH CENTRE
Balance Sheet 1ST APRIL 2022
| Unrestricted fund Notes £ FIXED ASSETS Tangible assets 10 127,693 CURRENT ASSETS Cash at bank and in hand 3,623 CREDITORS Amounts falling due within one year 11 (54,567) NET CURRENT ASSETS (50,944) TOTAL ASSETS LESS CURRENT LIABILITIES 76,749 NET ASSETS 76,749 FUNDS 12 Unrestricted funds Restricted funds TOTAL FUNDS |
Restricted fund £ 216,589 252 - 252 216,841 216,841 |
1/4/22 Total funds £ 344,282 3,875 (54,567) (50,692) 293,590 293,590 76,749 216,841 293,590 |
1/4/21 Total funds £ - 136,404 (2,308) 134,096 134,096 134,096 24,871 109,225 134,096 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 1st April 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 1st April 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
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AL-RAHMAH FAITH CENTRE
Balance Sheet - continued 1ST APRIL 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 21st August 2023 and were signed on its behalf by:
M Rashid - Trustee
M Iqbal - Trustee
The notes form part of these financial statements
Page 7
AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements FOR THE YEAR ENDED 1ST APRIL 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management
. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.
Depreciation is provided on the following basis:
Buildings - 2% Straight Line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
continued...
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AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2022
2. DONATIONS AND LEGACIES
| Donations Government grants 3. INCOME FROM CHARITABLE ACTIVITIES Activity Madrassa Income Mosque and community Mosque project Mosque and community Fundraising events Mosque and community Zakat income Sadaka & Zakat Sadaka income Sadaka & Zakat 4. CHARITABLE ACTIVITIES COSTS Mosque and community Sadaka & Zakat 5. SUPPORT COSTS Management r £ Mosque and community 15,632 |
PERIOD 13.1.20 YEAR ENDED TO 1.4.22 1.4.21 £ £ 125,788 26,456 - 12,761 125,788 39,217 PERIOD 13.1.20 YEAR ENDED TO 1.4.22 1.4.21 £ £ 1,560 - 112,557 108,452 2,960 - 150 50 1,659 723 118,886 109,225 Support Direct costs (see Costs note 5) Totals £ £ £ 18,184 58,696 76,880 3,620 - 3,620 21,804 58,696 80,500 Human Governance esources costs Totals £ £ £ 42,624 440 58,696 |
|---|---|
continued...
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AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2022
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| PERIOD | ||
|---|---|---|
| 13.1.20 | ||
| YEAR ENDED | TO | |
| 1.4.22 | 1.4.21 | |
| £ | £ | |
| Depreciation - owned assets | 4,676 | - |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 1st April 2022 nor for the period ended 1st April 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 1st April 2022 nor for the period ended 1st April 2021.
8. STAFF COSTS
The average monthly number of employees during the year was as follows:
9.
| Engaged on management and administration | YEAR ENDED 1.4.22 3 |
YEAR ENDED 1.4.22 3 |
YEAR ENDED 1.4.22 3 |
PERIOD 13.1.20 TO 1.4.21 2 |
|
|---|---|---|---|---|---|
| No employees received emoluments in excess of £60,000. | |||||
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL | ACTIVITIES | ||||
| INCOME AND ENDOWMENTS FROM | Unrestricted fund £ |
Restricted fund £ |
Total funds £ |
||
| Donations and legacies | 39,217 | - | 39,217 | ||
| Charitable activities | |||||
| Mosque and community | - | 108,452 | 108,452 | ||
| Sadaka & Zakat | - | 773 | 773 | ||
| Total | 39,217 | 109,225 | 148,442 | ||
| EXPENDITURE ON | |||||
| Charitable activities | |||||
| Mosque and community | 47,809 | - | 47,809 | ||
| Other | 1,135 | - | 1,135 | ||
| Total | 48,944 | - | 48,944 |
continued...
Page 10
AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2022
| 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - Unrestricted fund £ NET INCOME/(EXPENDITURE) (9,727) RECONCILIATION OF FUNDS Total funds brought forward 34,598 TOTAL FUNDS CARRIED FORWARD 24,871 10. TANGIBLE FIXED ASSETS COST Additions DEPRECIATION Charge for year NET BOOK VALUE At 1st April 2022 At 1st April 2021 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Social security and other taxes Karze Hasna Loan Accrued expenses 12. MOVEMENT IN FUNDS At 2.4.21 £ Unrestricted funds General fund 24,871 Restricted funds Restricted fund 109,225 TOTAL FUNDS 134,096 |
continued Restricted fund £ 109,225 - 109,225 1/4/22 £ 5,117 47,000 2,450 54,567 Net movement in funds £ 51,878 107,616 159,494 |
Total funds £ 99,498 34,598 134,096 Freehold property £ 348,958 4,676 344,282 - 1/4/21 £ 258 - 2,050 2,308 At 1.4.22 £ 76,749 216,841 293,590 |
|---|---|---|
continued...
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AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2022
12. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 130,308 Restricted funds Restricted fund 114,366 TOTAL FUNDS 244,674 Comparatives for movement in funds At 13.1.20 £ Unrestricted funds General fund 34,598 Restricted funds Restricted fund - TOTAL FUNDS 34,598 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 39,217 Restricted funds Restricted fund 109,225 TOTAL FUNDS 148,442 |
Resources Movement expended in funds £ £ (78,430) 51,878 (6,750) 107,616 (85,180) 159,494 Net movement At in funds 1.4.21 £ £ (9,727) 24,871 109,225 109,225 99,498 134,096 Resources Movement expended in funds £ £ (48,944) (9,727) - 109,225 (48,944) 99,498 |
|---|---|
continued...
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AL-RAHMAH FAITH CENTRE
Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2022
13. RELATED PARTY DISCLOSURES
Mohammed Rashid (chair) also has a participating interest in LR Energy Plumbing and Heating Ltd. LR Energy Plumbing and Heating Ltd subleased the premises to Al-Rahmah Faith Centre, the rent charged is £21,164 per year which is considered to be at arm's length.
Page 13
AL-RAHMAH FAITH CENTRE
Detailed Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2022
| Detailed Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2022 |
||
|---|---|---|
| PERIOD | ||
| 13.1.20 | ||
| YEAR ENDED | TO | |
| 1.4.22 | 1.4.21 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 125,788 | 26,456 |
| Government grants | - | 12,761 |
| Charitable activities | 125,788 | 39,217 |
| Madrassa Income | 1,560 | - |
| Mosque project | 112,557 | 108,452 |
| Zakat income | 150 | 50 |
| Sadaka income | 1,659 | 723 |
| Fundraising events | 2,960 | - |
| 118,886 | 109,225 | |
| Total incoming resources | 244,674 | 148,442 |
| EXPENDITURE | ||
| Charitable activities | ||
| Advertising | 4,558 | 12,353 |
| Donation to other charities | 3,620 | - |
| Repairs and maintenance | 8,950 | - |
| Freehold property | 4,676 | - |
| Other | 21,804 | 12,353 |
| Donations to other charities | - | 1,135 |
| Children activities | 4,680 | - |
| Support costs | 4,680 | 1,135 |
| Management | ||
| Light and heat | 3,954 | - |
| Postage and stationery | 528 | - |
| Rent | 10,785 | 20,164 |
| Books | 365 | 580 |
| 15,632 | 20,744 | |
| Human resources | ||
| Wages | 42,624 | 13,462 |
This page does not form part of the statutory financial statements
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AL-RAHMAH FAITH CENTRE
Detailed Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2022
| Detailed Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2022 |
||
|---|---|---|
| PERIOD | ||
| 13.1.20 | ||
| YEAR ENDED | TO | |
| 1.4.22 | 1.4.21 | |
| £ | £ | |
| Human resources | ||
| Governance costs | ||
| Legal fees | 40 | - |
| Independent examination fee | 400 | 1,250 |
| 440 | 1,250 | |
| Total resources expended | 85,180 | 48,944 |
| Net income | 159,494 | 99,498 |
This page does not form part of the statutory financial statements
Page 15