**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
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (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...
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