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2024-06-30-accounts

Company Registration Number: CE022159 Charity Number: 1189918

Islamic Aid CIO

Annual Report and Consolidated Audited Financial Statements

for the Financial Year Ended 30 June 2024

JR Accounts Chartered Certified Accountants and Registered Auditors 34-37 Liverpool Street London EC2M 7PP

Islamic Aid CIO CONTENTS

Page
Trustees' and Other Information 3
Trustees' Annual Report 4 - 7
Statement of Trustees' Responsibilities 8
Independent Auditor's Report 9 - 11
Statement of Financial Activities 12
Balance Sheet - Consolidated 13
Balance Sheet - Charity 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 22

2

Islamic Aid CIO TRUSTEES' AND OTHER INFORMATION

Trustees

Aziz Raje Muhammad Aamir Rubina Gul Harris Mahmood Saif Ur Rehman Ahmed Mahmood-Ul Hassan Muhammad Asad Ali Khan

Charity Number in England and Wales Company Registration Number

1189918

CE022159

Registered Office and Principal Address

29 Church Hill E17 3AB United Kingdom

Auditors

JR Accounts Chartered Certified Accountants and Registered Auditors 34-37 Liverpool Street London EC2M 7PP

3

Islamic Aid CIO TRUSTEES' ANNUAL REPORT

for the financial year ended 30 June 2024

The trustees present their Trustees' Annual Report, combining the Directors' Report and Trustees' Report, and the audited financial statements for the financial year ended 30 June 2024.

The financial statements are prepared in accordance with the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Trustees' Report contains the information required to be provided in the Trustees' Annual Report under the Statement of Recommended Practice (SORP) guidelines. The trustees of the charity are also charity trustees for the purpose of charity law and under the charity's constitution are known as members of the board of trustees.

In this report the trustees of Islamic Aid CIO present a summary of its purpose, governance, activities, achievements and finances for the financial year 30 June 2024.

The charity is a registered charity and hence the report and results are presented in a form which complies with the requirements of the Companies Act 2006 and, although not obliged to comply with the Statement of Recommended Practice applicable in the UK and Republic of Ireland FRS 102, the organisation has implemented its recommendations where relevant in these financial statements.

Mission, Objectives and Strategy

Mission Statement

Islamic Aid aims to create lasting change by strengthening the public institutions that serve vulnerable populations, with a focus on health, education, water, livelihoods, and resilience.

The organisation pursues its charitable objectives through seven principal programme areas. In healthcare, efforts are directed towards improving access to essential medical services, particularly in underserved areas, with a focus on primary care, maternal and child health, and disease prevention. Education programmes aim to support inclusive and equitable learning through the enhancement of educational infrastructure, teacher training, and the provision of learning materials. Livelihoods initiatives seek to improve household economic resilience by providing vocational training, supporting small enterprises, and promoting sustainable agricultural practices. The organisation delivers emergency relief in response to humanitarian crises, providing food, clean water, medical supplies, and shelter, while also contributing to long-term recovery and resilience.

Through Qurbani and Aqiqah, the organisation facilitates the observance of religious obligations and distributes meat to vulnerable populations. Support for women and children includes targeted activities in healthcare, education, protection, and advocacy to enhance their overall welfare. The organisation also implements water and sanitation programmes to increase access to safe drinking water and improve hygiene through the construction of wells, sanitation facilities, and hygiene awareness campaigns. Through these interconnected areas, the organisation aims to deliver not only essential aid but also long-term solutions that build resilience and promote dignity for all those it serves.

Objectives

Islamic Aid continues to focus on the areas of education, healthcare, livelihoods, and emergency relief, while upholding its commitment to alleviating poverty and supporting vulnerable communities through faith-driven, people-centred development. The organisation seeks to empower individuals and communities by addressing both immediate humanitarian needs and the root causes of poverty, with a strong emphasis on dignity, social justice, and long-term sustainability. In line with its Islamic values, Islamic Aid also prioritises the fair and transparent distribution of religious obligations such as Zakat, Sadaqah, Qurbani, and Aqiqah, ensuring that these forms of giving reach those most in need. Through strategic partnerships and community engagement, Islamic Aid strives to build local capacity, foster resilience, and contribute to lasting positive change. The organisation operates in a range of regions worldwide, including parts of Africa, Asia, the Middle East, and beyond, focusing its efforts where the need is greatest, particularly in conflict-affected and disaster-stricken areas.

Strategy

In 2022, Islamic Aid formally became a Charitable Incorporated Organisation (CIO). This transition brought several operational and legal advantages: This new structure, outlined in our CIO constitution, strengthens our governance framework and enhances our ability to deliver impactful programs. Governed by a dedicated board of trustees with expertise relevant to our mission, the CIO ensures effective oversight. New trustees are appointed through a rigorous process to guarantee a diverse and qualified leadership team. Regular board meetings and specialised committees focus on areas like fundraising programs and promote efficient decision-making.

Under the CIO framework, office bearers are responsible for the day-to-day operations of the charity, managing staff and volunteers on behalf of the trustees. Trustees benefit from limited liability, while Islamic Aid now operates under unified regulatory oversight from the Charity Commission. The CIO structure also provides legal personality, allowing

4

Islamic Aid CIO TRUSTEES' ANNUAL REPORT

for the financial year ended 30 June 2024

Islamic Aid to hold assets and sign contracts, significantly increasing our capacity for institutional partnerships and boosting donor confidence. We are confident that this framework positions Islamic Aid for continued success in alleviating poverty and delivering meaningful impact around the world.

Board Governance

To ensure the long-term success and stability of Islamic Aid, it is essential to have strong corporate governance structures in place. The board regularly reviews policies and structures to ensure they align with best practices in governance and reduce the risk of organisational failure. Quarterly board meetings are held to provide consistent oversight, while specialised committees - Finance & Audit, Programmes, and Strategy & Risk - focus on key areas of the organisation’s operations. A trustee skills matrix is used in the recruitment process to ensure that new members bring the necessary expertise. Additionally, an annual self-assessment process is in place to promote continuous improvement and effective governance.

Grant-Making Policy

Grant-making is governed strictly by partnership and funding agreements. Islamic Aid's decision to allocate funds is determined solely on the basis of need, the individual merit of each project and the ability of the partner organisation applying for the grant to deliver. All documentation, including the funding agreement is revised periodically to take into consideration changes in the law and the situation in Islamic Aid's areas of operation. Changes are made where necessary and local partners are required to complete and return a signed copy of the new agreement.

Review of Activities, Achievements and Performance

Reach and Impact

Islamic Aid’s programs have made a significant impact across South Asia and East Africa, reaching over 2 million direct beneficiaries. We have supported 11 hospitals and engaged with 3 universities, strengthening healthcare and education systems. Additionally, we have trained 520 nurses, health workers and educators, empowering local professionals to improve services in their communities. Our efforts have also led to daycare and hygiene upgrades in 6 public institutions, further enhancing the well-being of vulnerable populations.

Country Focus

In Pakistan, Islamic Aid has expanded its university-linked institutional programs, focusing on health training, staff welfare, and infrastructure development. This growth has fostered stronger ties with academic and healthcare institutions, driving long-term improvements in these sectors.

In Bangladesh, we have initiated scoping efforts with public paediatric hospitals and signed collaborative memorandums of understanding (MOUs) to enhance healthcare services for children. These partnerships aim to address critical health challenges in the region.

In Somalia, we began conducting feasibility assessments in collaboration with the Ministries of Health and Education. This work lays the groundwork for future projects that will strengthen both the healthcare and educational systems in the country.

Financial Review

Our overall objectives in relation to fundraising was to maximise the amount of voluntary income raised and to ensure that we did so at a reasonable cost to income ratio.

The charity's income for the year was £6,151,027. The direct charitable expenditure during the year was £1,439,842. Other key expenditures include fundraising and administration costs which were £1,486,439 and £252,676 respectively.

Islamic Aid's income for the year includes £1.8 million from Zakat contributions, which directly support our charitable activities. General donations have totaled £3.5 million, helping to fund a range of initiatives across various regions. Additionally, endowments and returns from our invested funds amount to £6 million, providing a steady source of income to support long-term development projects and ensure financial sustainability.

The charity has assets of £21,303,505 (2023: £17,934,040) and liabilities of £1,083,948 (2023: £762,382) for the end of the financial year. The net assets of the charity have increased by £3,047,899.

Reserves Position and Policy

The trustees recognise the need to have reserves in place to ensure the continuation of our work in the event of an unforeseen downturn. They are also conscious of the need to balance this with our commitment to value for money and maximising the resources available for programme delivery. To this end, we aim to maintain reserves equivalent to at least twelve months of our total annual budget. Our target is to ensure 12 months of unrestricted operations, providing financial stability to support the smooth implementation of multi-year infrastructure programmes and to protect against economic volatility. We are pleased to report that we are currently fully compliant with this reserves policy.

Principal Risks and Uncertainties

Islamic Aid takes a proactive approach to risk management across all areas of its work. To guard against programme disruption, the organisation relies on long-term MOUs with trusted partners and maintains contingency funds to support rapid response when needed. Financial volatility is addressed through a combination of healthy reserves and

5

Islamic Aid CIO TRUSTEES' ANNUAL REPORT

for the financial year ended 30 June 2024

a broad base of income sources, helping to maintain stability during uncertain times. In terms of compliance and reputational integrity, robust staff vetting processes are in place, and all external engagement is conducted strictly through verified and official channels. Cybersecurity is strengthened through the use of encrypted backups and secure cloud infrastructure, safeguarding critical data. To uphold our commitment to protection and accountability, we enforce an independent safeguarding policy supported by compulsory training for all team members.

Future Developments

Islamic Aid has plans to: Expand ELEVATE to two additional countries. Establish 3 Centres of Excellence in child health, nursing, and sanitation. Deploy real-time donor impact platform. Train 1,000+ public service professionals over 3 years. Develop institutional certification programmes for partner hospitals and schools.

Trustees

The trustees who served throughout the financial year, except as noted, were as follows:

Aziz Raje Muhammad Aamir Rubina Gul Harris Mahmood Saif Ur Rehman Ahmed Mahmood-Ul Hassan Muhammad Asad Ali Khan

In accordance with the Constitution, the trustees retire by rotation and, being eligible, offer themselves for re-election.

Compliance with Sector-Wide Legislation and Standards

The charity engages pro-actively with legislation, standards and codes which are developed for the sector. Islamic Aid CIO subscribes to and is compliant with the following:

Public Benefit

Islamic Aid’s programmes aim to enhance access to vital public services such as health, education, and clean water. They focus on strengthening institutions that serve the most vulnerable, embedding principles of systemic change, equity, and human dignity throughout. Every initiative is developed with a strong commitment to transparency and long-term sustainability

Over the coming years, Islamic Aid aims to expand the ELEVATE framework to two additional countries, broadening the reach of its systems-strengthening model. As part of this growth, we will establish three Centres of Excellence, each focused on a critical area: child health, nursing, and water, sanitation, and hygiene (WASH). These centres will serve as hubs for innovation, training, and best practice. To enhance transparency and engagement, Islamic Aid’s programmes aim to enhance access to vital public services such as health, education, and clean water. They focus on strengthening institutions that serve the most vulnerable, embedding principles of systemic change, equity, and human dignity throughout. Every initiative is developed with a strong commitment to transparency and long-term sustainability will also deploy a real-time donor impact platform, allowing supporters to see the direct outcomes of their contributions. In parallel, we plan to train over 1,000 public service professionals across a three-year period, equipping them with the skills needed to deliver high-quality services in their communities. To support sustainable quality improvements, Islamic Aid will also develop institutional certification programmes for partner hospitals and schools, helping to raise standards and ensure long-term impact.

Investment Strategy

Islamic Aid manages a property investment portfolio through its trading subsidiary, Zimrock Ltd, as part of its WAQF model. This approach helps generate halal returns, preserve the long-term capital value of our assets, and provide a stable cash flow to support sustained programme delivery.

Going Concern

The trustees have reviewed the charity's financial position, reserves levels and future plans and consider that despite the tough operational circumstances, there are no foreseeable material uncertainties about the charity's ability to continue as going concern.

6

Islamic Aid CIO TRUSTEES' ANNUAL REPORT

for the financial year ended 30 June 2024

Acknowledgements

We extend our gratitude to donors, partners, staff, trustees, and volunteers — and above all to the children, caregivers, and workers in the systems we support.

Islamic Aid is committed to continuous improvement, transparency, and a faith-driven mission that ensures no one is left behind. We extend our gratitude to donors, partners, staff, trustees, and volunteers — and above all to the children, caregivers, and workers in the systems we support.

The Auditors

The auditors, JR Accounts, (Chartered Certified Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

Approved by the Board of Trustees on 29 April 2025 and signed on its behalf by:

________Mahmood-Ul Hassan Trustee

________ Aziz Raje Trustee

7

Islamic Aid CIO STATEMENT OF TRUSTEES' RESPONSIBILITIES

for the financial year ended 30 June 2024

The trustees, who are also directors of Islamic Aid CIO for the purposes of company law, are responsible for preparing the financial statements in accordance with applicable law and regulations.

Company law requires the trustees as the directors to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the net income or expenditure of the charity for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Companies Act 2006 and. They 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.

In so far as the trustees are aware:

Approved by the Board of Trustees on 29 April 2025 and signed on its behalf by:

________Mahmood-Ul Hassan Trustee

________ Aziz Raje Trustee

8

INDEPENDENT AUDITOR'S REPORT to the Members of Islamic Aid CIO

Report on the audit of the financial statements

Opinion

We have audited the charity financial statements of Islamic Aid CIO ('the charity') for the financial year ended 30 June 2024 which comprise the Statement of Financial Activities (incorporating an Income and Expenditure Account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including the summary of significant accounting policies set out in note 2. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.

In our opinion, when reporting in accordance with a fair presentation framework the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

9

INDEPENDENT AUDITOR'S REPORT to the Members of Islamic Aid CIO

Responsibilities of trustees for the financial statements

As explained more fully in the Statement of Trustees' Responsibilities set out on page 8, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Further information regarding the scope of our responsibilities as auditor

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

10

INDEPENDENT AUDITOR'S REPORT to the Members of Islamic Aid CIO

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

__________Javad H Rana (Senior Statutory Auditor) for and on behalf of

JR ACCOUNTS

Chartered Certified Accountants and Registered Auditors 34-37 Liverpool Street London EC2M 7PP

29 April 2025

11

Islamic Aid CIO STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure Account)

for the financial year ended 30 June 2024

**Unrestricted ** Endowment Total Unrestricted Endowment Total
Funds Funds Funds Funds Funds Funds
2024 2024 2024 2023 2023 2023
Notes £ £ £ £ £ £
Income
Donations and legacies 3.1 6,151,027 - 6,151,027 19,564,365 - 19,564,365
Investments 3.2 137,264 - 137,264 116,465 - 116,465
─────── ─────── ─────── ─────── ─────── ───────
Total income 6,288,291 - 6,288,291 19,680,830 - 19,680,830
─────── ─────── ─────── ─────── ─────── ───────
Expenditure
Raising funds 4.1 1,486,439 - 1,486,439 642,938 - 642,938
Charitable activities 4.2 1,753,953 - 1,753,953 1,866,234 - 1,866,234
─────── ─────── ─────── ─────── ─────── ───────
Total Expenditure 3,240,392 - 3,240,392 2,509,172 - 2,509,172
─────── ─────── ─────── ─────── ─────── ───────
Net income/(expenditure) 3,047,899 - 3,047,899 17,171,658 - 17,171,658
Transfers between funds (3,000,000) 3,000,000 - (3,000,000) 3,000,000 -
─────── ─────── ─────── ─────── ─────── ───────
Net movement in funds for 47,899 3,000,000 3,047,899 14,171,658 3,000,000 17,171,658
the financial year
Reconciliation of funds:
Total funds beginning of the 21 14,171,658 3,000,000 17,171,658 - - -
year
─────── ─────── ─────── ─────── ─────── ───────
Total funds at the end of 14,219,557 6,000,000 20,219,557 14,171,658 3,000,000 17,171,658
the year
═══════ ═══════ ═══════ ═══════ ═══════ ═══════

The Statement of Financial Activities includes all gains and losses recognised in the financial year. All income and expenditure relate to continuing activities.

The notes on pages 16 to 22 form part of the financial statements

12

Islamic Aid CIO Company Number: CE022159 BALANCE SHEET - CONSOLIDATED

as at 30 June 2024

2024 2023
Notes £ £
Fixed Assets
Tangible assets 10 5,310,424 4,947,165
─────── ───────
Current Assets
Debtors 13 - 258,203
Cash at bank and in hand 15 15,993,081 12,728,672
─────── ───────
15,993,081 12,986,875
─────── ───────
Creditors: Amounts falling due within one year 17 (1,083,948) (762,382)
─────── ───────
Net Current Assets 14,909,133 12,224,493
─────── ───────
Total Assets less Current Liabilities 20,219,557 17,171,658
═══════ ═══════
Funds
Endowment funds 6,000,000 3,000,000
General fund (unrestricted) 14,219,557 14,171,658
─────── ───────
Total funds 21 20,219,557 17,171,658
═══════ ═══════

Approved by the Board of Trustees and authorised for issue on 29 April 2025 and signed on its behalf by

________Mahmood-Ul Hassan Trustee

________Aziz Raje Trustee

The notes on pages 16 to 22 form part of the financial statements

13

Islamic Aid

Company Number: CE022159 BALANCE SHEET - CHARITY

as at 30 June 2024

2024 2023
Notes £ £
Fixed Assets
Tangible assets 11 306,703 308,605
Investments 12 10,000 10,000
─────── ───────
316,703 318,605
─────── ───────
Current Assets
Debtors 14 5,098,866 4,926,492
Cash at bank and in hand 16 15,920,105 12,718,683
─────── ───────
21,018,971 17,645,175
─────── ───────
Creditors: Amounts falling due within one year 18 (1,083,948) (762,382)
─────── ───────
Net Current Assets 19,935,023 16,882,793
─────── ───────
Total Assets less Current Liabilities 20,251,726 17,201,398
═══════ ═══════
Funds
Endowment funds 6,000,000 3,000,000
General fund (unrestricted) 14,251,726 14,201,398
─────── ───────
Total funds 20,251,726 17,201,398
═══════ ═══════

Approved by the Board of Trustees and authorised for issue on 29 April 2025 and signed on its behalf by

________Mahmood-Ul Hassan Chairperson

________Aziz Raje Trustee

The notes on pages 16 to 22 form part of the financial statements

14

Islamic Aid CIO STATEMENT OF CASH FLOWS

for the financial year ended 30 June 2024

2024 2023
Notes £ £
Cash flows from operating activities
Net movement in funds 3,047,899 17,171,658
Adjustments for:
Depreciation 5,744 40,349
Interest receivable and similar income (46,056) (21,668)
─────── ───────
3,007,587 17,190,339
Movements in working capital:
Movement in debtors 258,203 (258,203)
Movement in creditors 321,566 762,382
─────── ───────
Cash generated from operations 3,587,356 17,694,518
─────── ───────
Cash flows from investing activities
Interest received 46,056 21,668
Payments to acquire tangible assets (369,003) (4,987,514)
─────── ───────
Net cash used in investment activities (322,947) (4,965,846)
─────── ───────
Net increase in cash and cash equivalents 3,264,409 12,728,672
Cash and cash equivalents at the beginning of the year 12,728,672 -
─────── ───────
Cash and cash equivalents at the end of the year 15 15,993,081 12,728,672
═══════ ═══════

15

Islamic Aid CIO NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 30 June 2024

1. GENERAL INFORMATION

Islamic Aid CIO is a company limited by shares incorporated in England. The registered office of the charity is 29 Church Hill, E17 3AB, United Kingdom which is also the principal place of business of the charity. The financial statements have been presented in Pound (£) which is also the functional currency of the charity.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charity’s financial statements.

Basis of preparation

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102".

As permitted by the Companies Act 2006, the charity has varied the standard formats in that act for the Statement of Financial Activities and the Balance Sheet. Departures from the standard formats are to comply with the requirements of the Charities SORP and are in compliance with section 4.7, 10.6 and 15.2 of that SORP.

Statement of compliance

The financial statements of the charity for the financial year ended 30 June 2024 have been prepared on the going concern basis and in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102".

Income

Income is recognised by inclusion in the Statement of Financial Activities only when the charity is legally entitled to the income, performance conditions attached to the item(s) of income have been met, the amounts involved can be measured with sufficient reliability and it is probable that the income will be received by the charity.

Expenditure

Expenditure is analysed between costs of charitable activities and raising funds. The costs of each activity are separately accumulated and disclosed, and analysed according to their major components. Expenditure is recognised when a legal or constructive obligation exists as a result of a past event, a transfer of economic benefits is required in settlement and the amount of the obligation can be reliably measured. Support costs are those functions that assist the work of the charity but cannot be attributed to one activity. Such costs are allocated to activities in proportion to staff time spent or other suitable measure for each activity. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

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.

Pension costs

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Endowment funds

These are funds that are held as capital or spent on long-term charitable assets to generate a return while the original investment remains intact. Waqf is the Islamic equivalent of endowments.

16

continued

Islamic Aid CIO NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 30 June 2024

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows:

Land and buildings freehold - 2% on cost - Long leasehold property Over the period of lease Fixtures, fittings and equipment - 33% on cost

Cash at bank and in hand

Cash at bank and in hand comprises cash on deposit at banks requiring less than three months notice of withdrawal.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Foreign currencies

The financial statements are prepared in Pound (£) which is the functional currency of the charity. Foreign currency transactions are recorded in Pound at the rate ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Pound at the balance sheet date. The resulting gains and losses are dealt with in the Statement of Financial Activities.

3. INCOME
3.1 DONATIONS AND LEGACIES 2024 2023
£ £
Donations 5,423,940 3,440,165
Gift Aid 727,087 773,739
Donated funds by charity - 15,350,461
6,151,027 19,564,365
═══════ ═══════
3.2 INVESTMENTS 2024 2023
£ £
Investments 137,264 116,465
═══════ ═══════
4. EXPENDITURE
4.1 RAISING FUNDS Direct Other Support 2024 2023
Costs Costs Costs
£ £ £ £ £
Raising funds 1,486,439 - - 1,486,439 642,938
═══════ ═══════ ═══════ ═══════ ═══════
4.2 CHARITABLE ACTIVITIES Direct Other Support 2024 2023
Costs Costs Costs
£ £ £ £ £
Expenditure on charitable activities 1,499,377 - 254,576 1,753,953 1,866,234
═══════ ═══════ ═══════ ═══════ ═══════
4.3 SUPPORT COSTS Charitable 2024 2023
Activities
£ £ £
Support 254,576 254,576 -
═══════ ═══════ ═══════

17

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Islamic Aid CIO

NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 30 June 2024

5. ANALYSIS OF SUPPORT COSTS Management Finance IT Governance Totals
Costs Costs Costs Costs
£ £ £ £ £
Support costs 77,002 89,872 62,888 24,814 254,576
═══════ ═══════ ═══════ ═══════ ═══════
6. NET INCOME 2024 2023
£ £
Net Income is stated after charging/(crediting):
Depreciation of tangible assets 5,744 40,349
Audit fee 10,400 10,400
Non-audit fee 8,320 8,320
═══════ ═══════
7. INVESTMENT AND OTHER INCOME 2024 2023
£ £
Rental income 91,208 94,797
Bank interest 46,056 21,668
─────── ───────
137,264 116,465
═══════ ═══════

8. EMPLOYEES AND REMUNERATION

Number of employees

The average number of persons employed (including executive trustees) during the financial year was as follows:

2024 2023
Number Number
Full Time 2 2
═══════ ═══════
The staff costs comprise: 2024 2023
£ £
Wages and salaries 59,535 33,437
Pension costs 967 646
─────── ───────
60,502 34,083
═══════ ═══════

The average monthly number of employees during the year was as follows: 2 No employees received emoluments in excess of £60,000.

9. TRUSTEES REMUNERATION

During the year, a trustee, Mr M Hassan, was paid the sum of £114,341 for services rendered, as per the charity's trust deed

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continued

Islamic Aid CIO NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 30 June 2024

10. TANGIBLE FIXED ASSETS - CONSOLIDATED

Land and Long Fixtures, Total
buildings leasehold fittings and
freehold property equipment
£ £ £ £
Cost or Valuation
At 1 July 2023 4,666,560 317,568 3,387 4,987,515
Additions 366,382 - 2,621 369,003
─────── ─────── ─────── ───────
At 30 June 2024 5,032,942 317,568 6,008 5,356,518
─────── ─────── ─────── ───────
Depreciation
At 1 July 2023 28,000 11,221 1,129 40,350
Charge for the financial year 1,221 2,521 2,002 5,744
─────── ─────── ─────── ───────
At 30 June 2024 29,221 13,742 3,131 46,094
─────── ─────── ─────── ───────
Net book value
At 30 June 2024 5,003,721 303,826 2,877 5,310,424
═══════ ═══════ ═══════ ═══════
At 30 June 2023 4,638,560 306,347 2,258 4,947,165
═══════ ═══════ ═══════ ═══════
11. TANGIBLE FIXED ASSETS - CHARITY
Long Fixtures, Total
leasehold fittings and
property equipment
£ £ £
Cost or Valuation
At 1 July 2023 317,568 3,387 320,955
Additions - 2,621 2,621
─────── ─────── ───────
At 30 June 2024 317,568 6,008 323,576
─────── ─────── ───────
Depreciation
At 1 July 2023 11,221 1,129 12,350
Charge for the financial year 2,521 2,002 4,523
─────── ─────── ───────
At 30 June 2024 13,742 3,131 16,873
─────── ─────── ───────
Net book value
At 30 June 2024 303,826 2,877 306,703
═══════ ═══════ ═══════
At 30 June 2023 306,347 2,258 308,605
═══════ ═══════ ═══════
12. FIXED ASSET INVESTMENTS 2024 2023
£ £
Shares in group undertakings 10,000 10,000
═══════ ═══════

Islamic Aid CIO holds an investment of £10,000 in the share capital of its wholly owned subsidiary, Zimrock Limited. The subsidiary was established to undertake trading activities in support of the charity’s aims. The investment is stated at cost and is reviewed annually for impairment. The results of Zimrock Limited are consolidated into these financial statements.

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Islamic Aid CIO

Islamic Aid CIO Islamic Aid CIO
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 30 June 2024
13. DEBTORS - CONSOLIDATED 2024 2023
£ £
Other debtors - 258,203
─────── ───────
- 258,203
═══════ ═══════
14. DEBTORS - CHARITY 2024 2023
£ £
Amounts owed by group entities 5,098,866 4,668,289
Other debtors - 258,203
─────── ───────
5,098,866 4,926,492
═══════ ═══════
15. CASH AND CASH EQUIVALENTS - CONSOLIDATED 2024 2023
£ £
Cash and bank balances 12,993,081 12,728,672
Cash equivalents 3,000,000 -
─────── ───────
15,993,081 12,728,672
═══════ ═══════
16. CASH AND CASH EQUIVALENTS - CHARITY 2024 2023
£ £
Cash and bank balances 12,920,105 12,718,683
Cash equivalents 3,000,000 -
─────── ───────
15,920,105 12,718,683
═══════ ═══════
17. CREDITORS - CONSOLIDATED 2024 2023
Amounts falling due within one year £ £
Trade creditors 871,733 672,265
Taxation and social security costs (Note 19) 1,533 -
Other creditors 140,593 66,987
Accruals and deferred income 70,089 23,130
─────── ───────
1,083,948 762,382
═══════ ═══════
18. CREDITORS - CHARITY 2024 2023
Amounts falling due within one year £ £
Trade creditors 871,733 672,265
Taxation and social security costs (Note 19) 1,533 -
Other creditors 140,593 66,987
Accruals and deferred income 70,089 23,130
─────── ───────
1,083,948 762,382
═══════ ═══════
19. TAXATION AND SOCIAL SECURITY 2024 2023
£ £
Creditors:
PAYE / NI 1,533 -
═══════ ═══════

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continued

Islamic Aid CIO NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 30 June 2024

20. RESERVES

2024 2023
£ £
At the beginning of the year 17,171,658 -
Surplus for the financial year 3,047,899 17,171,658
─────── ───────
At the end of the year 20,219,557 17,171,658
═══════ ═══════
21. FUNDS
21.1 RECONCILIATION OF MOVEMENT IN FUNDS **Unrestricted ** Endowment Total
Funds Funds Funds
£ £ £
At 1 July 2022 - - -
Movement during the financial year 14,171,658 3,000,000 17,171,658
─────── ─────── ───────
At 30 June 2023 14,171,658 3,000,000 17,171,658
Movement during the financial year 47,899 3,000,000 3,047,899
─────── ─────── ───────
At 30 June 2024 14,219,557 6,000,000 20,219,557
═══════ ═══════ ═══════
21.2 ANALYSIS OF MOVEMENTS ON FUNDS
Balance **Income ** Expenditure Transfers Balance
1 July between 30 June
2023 funds 2024
£ £ £ £ £
Endowment funds
Endowment 3,000,000 - - 3,000,000 6,000,000
Unrestricted funds
General 14,171,658 6,288,291 3,240,392 (3,000,000) 14,219,557
─────── ─────── ─────── ─────── ───────
Total funds 17,171,658 6,288,291 3,240,392 - 20,219,557
═══════ ═══════ ═══════ ═══════ ═══════
21.3 ANALYSIS OF NET ASSETS BY FUND
Fixed Current Current Total
assets assets liabilities
- charity use
£ £ £ £
Endowment funds - 3,000,000 - 3,000,000
─────── ─────── ─────── ───────
Unrestricted general funds 5,310,424 12,993,081 (1,083,948) 17,219,557
─────── ─────── ─────── ───────
5,310,424 15,993,081 (1,083,948) 20,219,557
═══════ ═══════ ═══════ ═══════

22. CAPITAL COMMITMENTS

The charity had no material capital commitments at the financial year ended 30 June 2024.

23. CONTINGENT LIABILITIES

The charity had no contingent liabilities as at 30 June 2024.

24. RELATED PARTY TRANSACTIONS

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

There were no related party transactions during the year, except the ones already disclosed.

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continued

Islamic Aid CIO NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 30 June 2024

25. POST-BALANCE SHEET EVENTS

There have been no significant events affecting the Charity since the financial year-end.

26. GRANTS PAYABLE 2024 2023
£ £
Charitable activities 1,439,842 1,651,975
═══════ ═══════

The costs incurred under charitable activities relate to the provision of emergency relief and welfare support, including assistance to individuals and communities in crisis or urgent need.

22