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2023-04-01-accounts

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 2023

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 2023

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 2023

The trustees present their report with the financial statements of the charity for the Period ended 01 April 2023. 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.

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.

Page 1

AL-RAHMAH FAITH CENTRE

Report of the Trustees FOR THE YEAR ENDED 1ST APRIL 2023

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 £290,704 and details are as follows: Unrestricted funds £78,218 Restricted funds £212,486

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

Registered office

Unit 6 Gemini Business Park Sheepscar Court Leeds LS7 3JB

Trustees

A P Shan M Iqbal M Rashid (Chair)

Page 2

AL-RAHMAH FAITH CENTRE

Report of the Trustees FOR THE YEAR ENDED 1ST APRIL 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Independent Examiner

Silver Arc Chartered Certified Accountants 1 Quality Court Chancery Lane London WC2A 1HR

Approved by order of the board of trustees on 11th July 2024 and signed on its behalf by:

M Rashid (Chair) - 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 2023.

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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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

11th July 2024

Page 4

AL-RAHMAH FAITH CENTRE

Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
66,240
Charitable activities
3
Mosque and community
2,829
Sadaka & Zakat
-
Total
69,069
EXPENDITURE ON
Charitable activities
4
Mosque and community
63,335
Sadaka & Zakat
-
Other
-
Total
63,335
NET INCOME/(EXPENDITURE)
5,734
Transfers between funds
12
(4,265)
Net movement in funds
1,469
RECONCILIATION OF FUNDS
Total funds brought forward
76,749
TOTAL FUNDS CARRIED FORWARD
78,218
Restricted
fund
£
-
15,671
1,826
17,497
26,117
-
-
26,117
(8,620)
4,265
(4,355)
216,841
212,486
1/4/23
Total
funds
£
66,240
18,500
1,826
86,566
89,452
-
-
89,452
(2,886)
-
(2,886)
293,590
290,704
1/4/22
Total
funds
£
125,788
117,077
1,809
244,674
76,880
3,620
4,680
85,180
159,494
-
159,494
134,096
293,590

The notes form part of these financial statements

Page 5

AL-RAHMAH FAITH CENTRE

Balance Sheet 1ST APRIL 2023

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
10
127,437
CURRENT ASSETS
Cash at bank and in hand
3,210
CREDITORS
Amounts falling due within one year
11
(52,429)
NET CURRENT ASSETS
(49,219)
TOTAL ASSETS LESS CURRENT
LIABILITIES
78,218
NET ASSETS
78,218
FUNDS
12
Unrestricted funds
Restricted funds
TOTAL FUNDS
Restricted
fund
£
212,169
317
-
317
212,486
212,486
1/4/23
Total
funds
£
339,606
3,527
(52,429)
(48,902)
290,704
290,704
78,218
212,486
290,704
1/4/22
Total
funds
£
344,282
3,875
(54,567)
(50,692)
293,590
293,590
76,749
216,841
293,590

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 1st April 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 1st April 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 6

AL-RAHMAH FAITH CENTRE

Balance Sheet - continued 1ST APRIL 2023

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 11th July 2024 and were signed on its behalf by:

M Rashid (Chair) - Trustee

A P Shan - 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 2023

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...

Page 8

AL-RAHMAH FAITH CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2023

2.
DONATIONS AND LEGACIES
Donations
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
5.
SUPPORT COSTS
Management
r
£
Mosque and community
7,195
6.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
7.
TRUSTEES' REMUNERATION AND BENEFITS
1/4/23
£
66,240
1/4/23
£
2,829
10,487
5,184
-
1,826
20,326
Support
Direct
costs (see
Costs
note 5)
£
£
35,095
54,357
Human
Governance
esources
costs
£
£
40,333
6,829
1/4/23
£
4,676
1/4/22
£
125,788
1/4/22
£
1,560
112,557
2,960
150
1,659
118,886
Totals
£
89,452
Totals
£
54,357
1/4/22
£
4,676

There were no trustees' remuneration or other benefiits paid for the period ended 01 April 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 1st April 2023 nor for the year ended 1st April 2022.

continued...

Page 9

AL-RAHMAH FAITH CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2023

8. STAFF COSTS

The average monthly number of employees during the year was as follows:

9.

Engaged on management and administration
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
125,788
Charitable activities
Mosque and community
4,520
Sadaka & Zakat
-
Total
130,308
EXPENDITURE ON
Charitable activities
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
1/4/23
3
Restricted
fund
£
-
112,557
1,809
114,366
4,420
2,330
-
6,750
107,616
109,225
216,841
1/4/22
3
Total
funds
£
125,788
117,077
1,809
244,674
76,880
3,620
4,680
85,180
159,494
134,096
293,590

continued...

Page 10

AL-RAHMAH FAITH CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2023

10. TANGIBLE FIXED ASSETS

COST
At 2nd April 2022 and 1st April 2023
DEPRECIATION
At 2nd April 2022
Charge for year
At 1st April 2023
NET BOOK VALUE
At 1st April 2023
At 1st April 2022
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Social security and other taxes
Karze Hasna Loan
Accrued expenses
12.
MOVEMENT IN FUNDS
Net
movement
At 2.4.22
in funds
£
£
Unrestricted funds
General fund
76,749
5,734
Restricted funds
Restricted fund
216,841
(8,620)
TOTAL FUNDS
293,590
(2,886)
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
69,069
Restricted funds
Restricted fund
17,497
TOTAL FUNDS
86,566
Freehold
property
£
348,958
4,676
4,676
9,352
339,606
344,282
1/4/23
1/4/22
£
£
8,029
5,117
42,000
47,000
2,400
2,450
52,429
54,567
Transfers
between
At
funds
1.4.23
£
£
(4,265)
78,218
4,265
212,486
-
290,704
Resources
Movement
expended
in funds
£
£
(63,335)
5,734
(26,117)
(8,620)
(89,452)
(2,886)

continued...

Page 11

AL-RAHMAH FAITH CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2023

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 2.4.21
£
Unrestricted funds
General fund
24,871
Restricted funds
Restricted fund
109,225
TOTAL FUNDS
134,096
Comparative 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
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 2.4.21
in funds
£
£
Unrestricted funds
General fund
24,871
57,612
Restricted funds
Restricted fund
109,225
98,996
TOTAL FUNDS
134,096
156,608
Net
movement
At
in funds
1.4.22
£
£
51,878
76,749
107,616
216,841
159,494
293,590
Resources
Movement
expended
in funds
£
£
(78,430)
51,878
(6,750)
107,616
(85,180)
159,494

Transfers
between
At
funds
1.4.23
£
£
(4,265)
78,218
4,265
212,486
-
290,704

continued...

Page 12

AL-RAHMAH FAITH CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 1ST APRIL 2023

12. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 199,377 (141,765) 57,612
Restricted funds
Restricted fund 131,863 (32,867) 98,996
TOTAL FUNDS 331,240 (174,632) 156,608

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 1st April 2023.

Page 13

AL-RAHMAH FAITH CENTRE

Detailed Statement of Financial Activities FOR THE YEAR ENDED 1ST APRIL 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Charitable activities
Madrassa Income
Mosque project
Zakat income
Sadaka income
Fundraising events
Total incoming resources
EXPENDITURE
Charitable activities
Advertising
Sundries
Donation to other charities
Repairs and maintenance
Freehold property
Other
Children activities
Support costs
Management
Light and heat
Telephone
Postage and stationery
Rent
Books
Human resources
Wages
Governance costs
Rates and water
Legal fees
Independent examination fee
1/4/23
£
66,240
2,829
10,487
-
1,826
5,184
20,326
86,566
6,044
291
7,325
16,759
4,676
35,095
-
5,149
500
472
-
1,074
7,195
40,333
5,455
174
1,200
6,829
1/4/22
£
125,788
1,560
112,557
150
1,659
2,960
118,886
244,674
4,558
-
3,620
8,950
4,676
21,804
4,680
3,954
-
528
10,785
365
15,632
42,624
-
40
400
440

This page does not form part of the statutory financial statements

Page 14

AL-RAHMAH FAITH CENTRE

Detailed Statement of Financial Activities
FOR THE YEAR ENDED 1ST APRIL 2023
Total resources expended
Net (expenditure)/income
1/4/23
£
89,452
(2,886)
1/4/22
£
85,180
159,494

This page does not form part of the statutory financial statements

Page 15