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2024-03-31-accounts

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

Charity registration number 293802

ABRAR ISLAMIC FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr S Shehabi Dr M Al-Mousawi Dr A Al Yosifi Dr F Safar Dr A Albahbahani Charity number 293802 Principal address 45 Crawford Place London W1H 4LP Auditor Deitch Cooper LLP 3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX Bankers Al Rayan Bank 77 - 79 Edgware Road London W2 2HZ

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10
Notes to the financial statements 11 - 19

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their report and accounts for the year ended 31 March 2024. The legal and administrative information page forms part of this report.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition - October 2019).

Objectives and activities

The objects of the charity are:

The Trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance issued by the Charity Commission. The Trustees have considered the general guidance on public benefit issued by the Charity Commission and in particular its supplementary guidance on the advancement of religion for the public benefit in deciding what activities the charity should undertake.

The charity is very involved with the community and uses volunteers help when required. The Trustees wish to thank all volunteers for their support and services.

Achievements and performance

Over the past year the following have been done:

  1. The weekly seminars continued to be held at Abrar House as well as online (mainly on a Zoom platform and YouTube). They included marking the religious anniversaries such as the birth and demise of Prophet Mohammad and the Imams. Islamic indoctrination against fanaticism, extremism and terrorism was continued by knowledgeable scholars. These lectures were made available on the Charity’s website (Abraronline.net) and published in the charity’s bi-monthly Arabic and English newsletters (Abrar). (Each publication is produced two times in the month).

  2. The library was maintained and stocked with new books as purchased or donated. New books in English are added. They are often obtained free of charge as review copies.

  3. The charity offered the hall for hire at reasonable rates for seminars and other social functions such as receptions and funeral services. Recent functions included a visit from His Majesty King Charles III who met members of the Sudanese community.

  4. Interfaith activities continue to be held including guest speakers such as Bishops and Archbishops of the Christian faith. They have also been held on Zoom platform.

  5. The charity maintained its properties which are the main source of income to finance its activities. These are mainly the main building at Crawford Place and four flats at 49/50 Chagford Street, NW1.

  6. The charity participated in outside activities such as conferences, seminars and other religious functions at other places.

  7. Special programmes were held during the holy month of Ramadan when Muslims observe the fast and Muharram to commemorate the martyrdom of Imam Hussain. A similar programme was held in Muharram.

  8. 1 -

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

During 2024, the Charity Commission informed the trustees that a journalist had made allegations regarding mismanagement of charitable funds. The Trustees are fully aware of their responsibilities to ensure charitable funds are for charitable purposes, as defined in the Charities Act 2011. The Trustees wish to state categorically that all income has been applied in the furtherance of charitable activities for the public benefit and all expenditure has been incurred, solely within the United Kingdom, in the furtherance of charitable activities.

The Trustees had fully expected that the complaint will be closed by the Charity Commission prior to submission of these financial statements and so have taken their best endeavour to delay publishing the results for the year, to close the matter on these unfounded allegations in this report. The Charity Commission swiftly informed the Trustees that it was assessing the complaint to determine the appropriate course of action. The case was then considered and answered in the House of Lords by Baroness Twycross on 22 October 2024 and no action is being taken by the government. The Trustees have co-operated fully with the Charity Commission. The Charity Commission has been clear that it will respond robustly where there proves to be wrongdoing. The Charity Commission has since informed the Trustees that they need take no action on this matter and the Charity Commission has communicated no evidence at this stage of any misconduct or non-compliance with charity law duties and responsibilities.

The Trustees are of the opinion that these unfounded allegations, which have been spread in a report by the Jewish Chronicle, are made as a result of political or religious bias stemming from the current international climate. The motivation for making these allegations has no public benefit and they will be found lacking in substance by more independent UK authorities. Accordingly, after careful consideration of the correspondence with the Charity Commission to date, the allegations are likely to be dismissed. The Trustees look forward to the matter being closed in the forthcoming year.

Financial review

The Trustees are pleased with the financial performance and staff support during the year. The income generated by the charity and how it has been applied are shown on the Statement of Financial Activities and in the related notes.

Total income of the charity for the year was £314,282 (2023: £296,883). The primary activity for generating income remains the letting of investment property. Income received was fully expended on charitable activities during the year. Total expenditure for the year was £457,080 (2023: £457,866). The properties owned by the Charity were revalued during the year in accordance with UK generally accepted accounting practice. There was an overall fall in market value to 31 March 2024, due to the recent economic climate, however the Charity's properties are situated in prime locations so their values are expected to increase in the future. The Trustees will safeguard these assets as far as practicable.

Total funds carried forward amounted to £11,095,632 (2023: £18,048,212), comprising a general income fund for charitable activities amounting to £6,624,862 (2023: £7,234,254 ) and a land and buildings revaluation reserve. All funds are unrestricted funds.

The assets of the charity are held in the names of the holding Trustees. The Trust Deed authorises the Trustees to make capital investment in the furtherance of the charity's objectives.

Reserves policy

The perpetual nature of the charity's existence means that it will never cease to exist and therefore reserves are carried forward at the end of each financial year. The Trustees aim to maintain unrestricted reserves at a level which equates to approximately three months of its unrestricted charitable expenditure; this currently amounts to approximately £110,000. It is in the Trustees' view that this level is sufficient to respond to an unexpected level of expenditure as well as finance other recurring expenditure.

Investment policy

The assets of the charity are held in the nominee name of the Trustees. Under the governing document, the Trustees have power to invest funds which are not immediately required for its purpose and which the Trustees see fit in the furtherance of the charity’s objectives.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Risk management

The Trustees recognise that effective risk management is essential in achieving the charity's objectives. Risk management is considered as an integral element of all decision making and appropriate procedures to ensure that risk levels are acceptable in each case are identified. The Trustees believe that it is important to to ensure the approach to risk management remains fit for purpose. The Trustees review the risk management processes of the charity on a regular basis with particular focus on ensuring event risk assessments and due diligence procedures, remain effective. A formalised risk register is maintained by the Trustees. The Trustees address liquidity risk by reviewing the charity's liquid resources on a continuing basis. At present, no uncertainty exists regarding liquidity or cash flow. The Trustees consider that the risk management procedures currently in place sufficiently mitigate risk and meet the needs of the charity.

The current economic environment has an impact on the charity as its main source of income is rental income. There is a risk that rent might be received late as tenants struggle to cope with the high cost of living. Currently the balances due from all tenants are considered recoverable. However, the Trustees continue to monitor outstanding balances from tenants to ensure regular cash inflows to the charity.

Future plans

In addition to the objectives outlined above, the charity has additional objectives over the forthcoming 12 months period:

  1. Appraisal of the current activities with view to implement necessary changes. The website has recently been updated and its new look appears to be more professional and attractive. The Arabic and English newsletters need wider circulation. Since the Zoom platform and YouTube were introduced to relay the Charity's cultural activities, the audience has increased.

  2. The annual interfaith conference will continue to be held each year.

  3. The publications need wider circulation and some editorial enhancement.

  4. The social media activity is being considered and developments are under consideration.

Structure, governance and management

The charity is a an unincorporated charity formed under a constitution under a deed dated 10 February 1986, and amended by a supplemental deed of amendment dated 28 February 2020. It has been registered with the Charity Commission under reference 293802.

The charity's trustees have control of the charity and its property and funds.

The Trustees who served during the year and up to the date of signature of the financial statements were: Dr S Shehabi

Dr M Al-Mousawi Dr A Al Yosifi Dr F Safar Dr A Albahbahani

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

There must be at least three trustees.

The process of appointing and recruiting a trustee is as follows:

  1. Every trustee must be appointed by a resolution of the trustees passed at a special meeting and a memorandum declaring such appointment shall be signed as a deed either at the meeting by the person presiding or in some other manner directed by the meeting and attested by two other persons present at the meeting.

  2. B. In selecting persons for appointment as trustees, the Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.

  3. To be eligible for appointment as a trustee a person must be a practicing Muslim of the Shia Ithna-Asheri Faith and not under the age of 18 years.

  4. No one shall be entitled to act as a trustee until they have expressly acknowledged their acceptance of the position of trustee of the charity.

Provisions under which a trustee shall cease to hold office are contained within the trust deed.

The Trustees must hold at least two ordinary meeting each year. Meetings may take such form, including electronic means, as the Trustees decide provided that the form chosen enables all participants to communicate with all the other participants. A special meeting may be called at any time by the person appointed to chair meetings of the trustees or by any two Trustees. At Trustee meetings, decisions must be made by a majority of the Trustees present and voting on the question. The person chairing the meeting shall have a casting vote.

Trustees are not remunerated.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

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

The Trustees are responsible for keeping sufficient accounting records that 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

Dr S Shehabi Trustee Dated: 30 January 2025

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ABRAR ISLAMIC FOUNDATION

Opinion

We have audited the financial statements of Abrar Islamic Foundation (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, 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 the 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 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABRAR ISLAMIC FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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 the Trustees 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 the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the financial statements to material misstatements including obtaining an understanding of how fraud might occur by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABRAR ISLAMIC FOUNDATION

To address the risk of fraud through management bias and override of controls we performed the following procedures:

In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to, agreeing financial statement disclosures to underlying supporting documentation and remaining alert for actual and potential litigation and claims during our other audit procedures. We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Deitch Cooper LLP

30 January 2025

Statutory Auditor

3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX

Deitch Cooper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024

Notes
Income from:
Donations and legacies
3
Investments
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total charitable expenditure
Total expenditure
Revaluation of investment properties
Net outgoing resources
Other recognised gains and losses
Revaluation of tangible fixed assets
Net movement in funds
Fund balances at 1 April 2023
Fund balances at 31 March 2024		 2024
£
5,000
309,282
314,282
4,585
452,495
452,495
457,080
(685,000)
(827,798)
(6,124,782)
(6,952,580)
18,048,212
11,095,632		 2023
£
1,500
295,383
296,883
26,713
431,153
431,153
457,866
(400,000)
(560,983)
-
(560,983)
18,609,195
18,048,212

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2024

Notes
Fixed assets
Tangible assets
12
Investment properties
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds-general
General unrestricted funds
Revaluation reserve		 2024
£
£
4,100,610
5,065,000
9,165,610
171,019
1,768,860
1,939,879
(9,857)
1,930,022
11,095,632
6,624,862
4,470,770
11,095,632
11,095,632		 2023
£
£
13,784,103
2,450,000
16,234,103
135,203
1,692,602
1,827,805
(13,696)
1,814,109
18,048,212
7,234,254
10,813,958
18,048,212
18,048,212		 2023
£
£
13,784,103
2,450,000
16,234,103
135,203
1,692,602
1,827,805
(13,696)
1,814,109
18,048,212
7,234,254
10,813,958
18,048,212
18,048,212
16,234,103
1,814,109
18,048,212
18,048,212
18,048,212

The financial statements were approved by the Trustees on 30 January 2025

Dr S Shehabi Trustee

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Abrar Islamic Foundation ("the charity") is an unincorporated UK registered charity, formed under a trust deed, The charity is a public benefit entity. The charity's address is 45 Crawford Place, London, W1H 4LP.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's constitution, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the Charities SORP (FRS 102) (2019) not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the social, political and economic environment and the residual effect of the global coronavirus pandemic on charitable activities.The Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity.

1.4 Incoming resources

All income is included in the statement of financial activities when the charity is entitled to receive the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations, legacies and gifts and is included in full in the statement of financial activities when receivable. Grants with performance conditions are recognised as revenue when and to the extent that the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Investment income is recognised in the Statement of Financial Activities to the extent that receipt is expected or received. Income received in advance is treated as deferred income and recognised as revenue in the period to which it relates.

1.5 Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Raising funds comprises costs directly attributable to the management and maintenance of the investment properties.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property 50 years straight line Plant and machinery 25% straight line Fixtures, fittings & equipment 25% straight line

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Financial instruments

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The charge for the year is included within staff costs.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Investment properties are required by the Charities SORP (FRS 102) (2019) to be disclosed at fair value, which is an accounting estimate. The carrying amount of investment properties has a high degree of sensitivity to the underlying methods, assumptions and judgements used in calculating fair value. The underlying methods used to measure fair values are made on a consistent and comparable basis with previous years and judgements are reviewed annually. The resolution of estimation uncertainties forms part of the net gains or losses through fair value adjustments in each period. Fair value adjustments to the carrying value of non-current assets that cannot be reliably quantified are not expected to crystallise in the short term.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

3 Donations and legacies

2024 2023
£ £
Donations and gifts 5,000 1,500

Donated goods and services

In addition to the donations and gifts recorded above, the charity makes use of services donated by volunteers, as and when required, which reduces charitable expenditure. A reliable estimate of the cost of the time and effort donated by volunteers in assisting the charity is not possible to quantify.

4 Investments

Rental income and service charges receivable
Interest receivable		 2024
£
273,217
36,065
309,282		 2023
£
266,871
28,512
295,383

5 Raising funds

Investment property expenses
Light and heat
Repairs and maintenance
Investment property expenses
For the year ended 31 March 2023
Investment property expenses		 2024
£
1,695
2,890
4,585
4,585		 2023
£
1,733
24,980
26,713
26,713
26,713

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

6 Charitable activities

Events and functions
Grant funding of activities
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds - general
For the year ended 31 March 2023
Unrestricted funds - general		 2024
£
19,591
900
423,604
8,400
452,495
452,495
452,495		 2023
£
15,885
920
406,908
7,440
431,153
431,153
431,153

Events and functions comprises expenditure relating to interfaith conferences and seminars.

Grant funding of activities comprises sponsorship grants and donations to emergency appeals.

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

7 Support costs

Staff costs
Depreciation
Consultancy fees
Light and heat
Cleaning
General expenses
Repairs
Insurance
Rates
Printing and postage
Telephone
Computer expenses
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
62,822
-
258,711
-
15,074
-
16,216
-
4,945
-
888
-
12,326
-
6,312
-
25,528
-
9,298
-
1,809
-
9,675
-
-
8,400
423,604
8,400
423,604
8,400		 2024
£
62,822
258,711
15,074
16,216
4,945
888
12,326
6,312
25,528
9,298
1,809
9,675
8,400
432,004
432,004		 2023 Basis of allocation
£
60,124 Directly attributable
258,903 Directly attributable
9,605 Directly attributable
16,704 Directly attributable
4,785 Directly attributable
169 Directly attributable
7,559 Directly attributable
7,139 Directly attributable
23,631 Directly attributable
7,377 Directly attributable
1,475 Directly attributable
9,437 Directly attributable
7,440 Governance
414,348
414,348

Governance costs that are not directly attributable to an activity have been apportioned based on the proportion of support costs attributed to each activity.

8 Trustees

None of the Trustees (nor any persons connected with them) received any remuneration or benefits from the charity during the year (2023: £nil).

No trustee claimed expenses or had their expenses met by the charity during the year (2023: £nil).

9 Auditor's remuneration

The analysis of fees payable to the charity's auditors is as follows:

2024 2023
£ £
Audit of the annual accounts 8,400 7,440

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

10 Employees

Number of employees

The average monthly number of employees during the year was:

Employees
Employment costs
Wages and salaries
Employer's contribution to defined contribution pension schemes		 2024
Number
5
2024
£
61,277
1,545
62,822		 2023
Number
4
2023
£
58,848
1,276
60,124

There were no employees whose annual remuneration was £60,000 or more.

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12 Tangible fixed assets

Cost or valuation
At 1 April 2023
Revaluation
Transfer to investment property
At 31 March 2024
Depreciation and impairment
At 1 April 2023
Depreciation charged in the year
Revaluation
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023		 Freehold
property
£
14,300,000
(6,900,000)
(3,300,000)
4,100,000
516,812
258,406
(775,218)
-
4,100,000
13,783,188		 Plant and
machinery
£
13,342
-
-
13,342
12,427
305
-
12,732
610
915		 Fixtures,
fittings &
equipment
£
225,934
-
-
225,934
225,934
-
-
225,934
-
-		 Total
£
14,539,276
(6,900,000)
(3,300,000)
4,339,276
755,173
258,711
(775,218)
238,666
4,100,610
13,784,103

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12 Tangible fixed assets

(Continued)

Freehold property is carried at revalued amount less subsequent accumulated depreciation and impairment losses. The most recent revaluation was based on an external valuation performed as at 31 March 2024 by an independent Chartered Surveyor on an open market value basis. The methods and significant assumptions applied in estimating fair value are the RICS definition of market value, subject to existing leases and part vacant possession of the freehold property.

At 31 March 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been £2,029,230 (2023: £2,969,230).

13 Investment property

Fair value
At 1 April 2023
Transfers from owner-occupied property
Net loss through fair value adjustments
At 31 March 2024		 2024
£
2,450,000
3,300,000
(685,000
5,065,000

The fair value of all investment property is based on independent valuations by a Chartered Surveyor with a valuation date of 31 March 2024.

Transfers represents the part of an owner-occupied mixed use freehold property that is being leased out to unconnected third parties in the immediate and medium-term future. The fair value of the leased out component has been measured reliably by an independent Chartered Surveyor.

At 31 March 2024, had the investment property been carried at historic cost, the carrying amount would have been approximately £2,788,000 (2023: £1,888,000).

14 Debtors

14 Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors 166,085 129,885
Prepayments and accrued income 4,934 5,318
171,019 135,203
15 Creditors: amounts falling due within one year
Creditors: amounts falling due within one year
2024 2023
£ £
Other taxation and social security 546 -
Other creditors - 74
Accruals 9,311 13,622
9,857 13,696

Docusign Envelope ID: A070E0E4-E4C5-434C-A8C7-E897F36DE9C0

ABRAR ISLAMIC FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

16 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Revaluation
reserve
General funds
Previous year:
Revaluation
reserve
General funds		 At 1 April
2023
£
10,813,958
7,234,254
18,048,212
At 1 April
2022
£
11,032,364
7,576,831
18,609,195		 Incoming
resources
£
-
314,282
314,282
Incoming
resources
£
-
296,883
296,883		 Resources
expended
£
-
(457,080)
(457,080)
Resources
expended
£
-
(457,866)
(457,866)		 Transfers
£
(218,406)
218,406
-
Transfers
£
(218,406)
218,406
-		 Gains and
losses
At 31 March
2024
£
£
(6,124,782)
4,470,770
(685,000)
6,624,862
(6,809,782)
11,095,632
Gains and
losses
At 31 March
2023
£
£
-
10,813,958
(400,000)
7,234,254
(400,000)
18,048,212

Purpose of unrestricted funds:

General funds are funds which can be used in accordance with the charitable objectives at the discretion of the trustees and management committee.

The revaluation reserve is an unrestricted fund relating to the revaluation surplus on revaluation of freehold property. An amount equal to the depreciation charged on the revalued amount of freehold property held at valuation is transferred to the land and buildings revaluation reserve each period.

17 Related party transactions

There were no disclosable related party transactions during the current or preceding year.

No guarantees have been given or received by related parties.