**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: 

- The Companies Act 2006 

- The Charities SORP (FRS 102) 

## **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: 

- select suitable accounting policies and apply them consistently; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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: 

- there is no relevant audit information (information needed by the charity's auditor in connection with preparing the auditor's report) of which the charity's auditor is unaware, and 

- the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. 

## **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: 

- give a true and fair view of the state of the charity's affairs as at 30 June 2024 and of its surplus for the financial year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. 

## **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: 

- the information given in the Strategic Report and the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Strategic Report and the Trustees' Annual Report have been prepared in accordance with applicable legal requirements. 

## **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: 

- adequate accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

**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: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by trustees. 

- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

**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** 



continued 

## **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 

**18** 



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. 

**19** 



continued 

## **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**|-|
|||═══════|═══════|



**20** 



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. 

**21** 



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**