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2023-03-31-accounts

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

IBAD-UR-RAHMAN TRUST

DJH Mitten Clarke Audit Limited Accountants Statutory Auditors The Glades Festival Way Stoke-on-Trent Staffordshire ST15SQ

IBAD-UR-RAHMAN TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Statement of Financial Position 12
Statement of Cash Flows 13
Notes to the Statement of Cash Flows 14
Notes to the Financial Statements 15 to 23
Detailed Statement of Financial Activities 24 to 25

IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Introduction

The trust was registered as a charity 24 May 1982 and it is governed by a trust deed dated 9 March 1982, amended 14 September 2012.

OBJECTIVES AND ACTIVITIES

Public benefit

The Trust was established for the benefit of the public in Manchester. The main objectives of the Trust are:

Grantmaking

The trustees consider grant making an effective means of delivering aid using local charities. Such charities have experience, access to facilities, expertise, staff and other resources which will make them better placed to deliver aid in a more effective manner.

Examples of where aid has been delivered in this manner include, Tsunami affected areas, South Asian Earthquake areas and other natural disaster areas as well as those areas where poverty exists. This has been delivered via established and recognised charities such as, Muslim Hands, Islamic Relief and the World Islamic Mission Welfare Trust.

No such grants have been made during the current or prior year.

Voluntary help and gifts in kind

The Trustees are very grateful to the users of the mosque who give voluntary donations to further the aims of the Trust. All the money collected by the Trust arises from the weekly collection after Friday Juma Prayer and collection on special occasions such as Ramadan and Eid. The Trust is also helped by volunteers who give their time on Fridays to assist with collecting donations and help the administration with general duties like cleaning and getting the mosque ready for the Friday prayers.

Activities

The activities of the Trust include:

1

IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

ACHIEVEMENT AND PERFORMANCE

Manchester Muslim College

In February 2017 the Trust secured the purchase of the leasehold for the adjacent building vacated by the Probation Service. The Trust was waiting for the City Council, who own the Freehold, to agree to a change of use from Probation Services to Community and Educational services, before taking possession of the building. The change in the use was agreed and the actual completion took place in June 2018 with the change in use agreed by the council in April 2019. The Trust has established the Manchester Muslim College (MMC) in the Probation Office Building. The aim of MMC is to train Imams who are resident in this country and have a good grasp of English. This is a Five year course and successful students will graduate as Imams and will be given the title Maulana (Male) and Alimah (Female).

The Trust is now running 'The Friendship and Wellbeing Group' programme every Tuesday for Ladies and Wednesday for men. The Trust has also started various community based activities for the local community.

Reconstruction of the Mosque Building

The main Mosque building has been demolished and a new larger and more impressive building has replaced it, the completion date has been revised. The delay in the project completion is primarily due to changing of the contractor. All functions of the Mosque are taking place in the Annexe building during the period of reconstruction. Internally the mosque is fully complete.

The building work on the new mosque has progressed and is near completion. The new completion date is March 2024.

Sisters Study Circle at North Manchester Jamia Masjid

The Sisters Study Circle (SSC) is brought about by the need for structured activities for women and children in the local Muslim community of Cheetham Hill.

The SSC first started meeting in February 2009 on a Saturday morning in the North Manchester Jamia Masjid (NMJM) and since then they have continued to gather weekly to:

The study circle starts with the recitation of a verse from the Holy Quran and then moves on to a short story aimed at the younger children. This is followed by a talk on a topic of interest by one of the sisters, and at the end all sisters are invited to discuss, offer their opinions and ask questions. The programme is ended by sisters joining together to recite Nasheed, Dhikr and Salaam.

The SSC has also organised programmes for the wider community such as annual Eid Milaad-un-Nabi (Birthday of the Prophet Mohammad Peace be upon him) programmes and Eid parties which are very successful.

Annually the Eid Milaad-un-Nabi programme is attended by over 700 women. Nasheeds are recited by children who study at the Mosque's evening school and by the SSC sisters. Inspiring speeches are given by invited guests and food is provided at the end of the programme.

SSC also hold fundraising Eid Parties. All the money raised is donated to the Mosque Redevelopment Project fund. The event includes a bouncy castle and games and activities for children and hot food and snacks are available throughout the day at the numerous food stalls. There are stalls, selling arts and crafts, jewellery, shawls and scarves, bags and shoes, books and CDs and much more. An auction of donated items generously provided by local businesses and individuals is also held towards the end of the programme. The SSC raised several thousand pounds for the Trust during this financial year.

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IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

We hope to continue with these events in forthcoming years as well as arranging events such as picnic-in-the-park and day trips to local places of interest such as seaside resorts and amusement parks. In addition to holding Eid prayers in the Mosque, prayers were said in a local park (Heaton Park, Manchester).

Supplementary School

The Supplementary School has grown from strength to strength. We now have over 200 children who attend classes in Islamic studies, Quranic studies and modern foreign languages such as Urdu and Arabic. They attend the school from 5.00pm to 7.00pm each weekday. A new uniform has been introduced to give the children a sense of pride and belonging.

25 part time teachers have been taken on to teach the children. Regular training is provided to the teachers by our Iman and they have also attended safe-guarding training provided by the Local Authority. Additionally the teachers also attended the class room management training in the year.

FINANCIAL REVIEW

Financial position

For the year ended 31 March 2023 the total incoming resources amounted to £822,133 (2022: £991,115). Of this income £821,984 was received by way of donations, with £355,478 classified as restricted funds being donated specifically in response to an appeal for the development of the Mosque and Zakat. The balance is unrestricted and undesignated. Other income relates to bank interest receivable which totalled £149. Resources expended totalled £604,361 compared to £498,154 in 2022.

Net resources for the year were £217,771 (2022: £492,961).

Reserves policy and financial policy:

The trustees have examined the need for free reserves i.e. those unrestricted not invested in tangible assets, designated for specific purposes or otherwise committed. The Trustees consider that, given the nature of the charity's work and its commitment, the level of free reserves should be such as will enable the charity to meet its commitments for the foreseeable future.

The statement of financial position shows total reserves of £7,931,630. Of this, £2,409,325 is represented by unrestricted funds which is for the support of the charity objectives.

Going concern

After considering the role of Ibad-Ur-Rahman within the wider community and risk management, the Trustees have reasonable expectation that the trust have adequate resources and cash flows to meet their spending commitments for the foreseeable future. Weekly donations continue to exceed ongoing running costs of the charity. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

FUTURE PLANS

The Trustees plan to:

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IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a trust deed dated 9 March 1982, amended on 14 September 2012.

Organisational structure

The original Trust deed allows for a maximum of 5 trustees.

The powers and duties of the Trustees are clearly outlined in the trust deed. The Trust is based at North Manchester Jamia Mosque, 3 Woodlands Rd, Cheetham Hill, Manchester, M8 9LF.

The Trust now has 3 full time employees (Chief Imam, Trust Manager and an office administrator/caretaker), 3 part time Assistant Imams, 24 part time teachers of Islamic Studies, Arabic and Urdu and 1 part time caretaker/cleaner.

The Trust has set up a management committee of 31 members to help with organisational tasks. This management committee is divided into sub-committees, namely:

These sub-committees have clearly defined roles and responsibilities and their activities are closely monitored by the Trustees. Each sub-committee is headed by one of the Trustees. Decisions need to be ratified by the Trustees.

4

IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Trustees' responsibilities

The trust deed requires that the trustees keep proper books of account and records showing all receipts and payments and containing all such records as may be appropriate to the running of the trust. In addition, trustees must:

The trustees have also complied with their duties under section 4 of the Charities Act 2011 regarding public benefit requirement by defining the charities' objectives (Page 1) as for the public benefit and ensuring the activities undertaken during the year meet those objectives.

Recruitment and Appointment of Trustees

The existing trustees are responsible for the recruitment of new trustees, but in so doing the trustees seek the views the wider community. The trustees believe this approach ensures that new trustees are respected members of the faith and local communities and ensures that good relations are fostered between the Mosque and the people of the local community served.

In selecting new trustees, the trustees seek to identify people who regularly attend events and functions organised by the charity and are willing to volunteer to help in our broader community work. Potential trustees are invited to attend trustees' meetings as observers and are given more details of the charity's aims and activities and, if all agree, they are then proposed as new trustees at the subsequent trustees' meeting. This process allows due consideration of the person's eligibility, personal competence, specialist knowledge and skills.

Induction and Training of Trustees

Following appointment, new trustees are introduced to their new role and given copies of the Trust Deed and advised of the policies and procedures adopted by our charity. A number of publications from the Charity Commission are also provided, including the guidance on charities and public benefit and on the advancement of religion for the public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act. Initially new trustees work with an existing trustee assisting on particular activities and projects run by the charity. After satisfactory feedback from existing trustees, they are then given the task of leading a particular activity or project, reporting progress at trustees' meetings.

Risk management

In line with the requirement for trustees to undertake a risk assessment exercise and identify key risks the trust faces in England and Wales, the trustees have reviewed the measures in place, or needing to put in place, to deal with these risks. There are three main areas of risk that has been identified by the trustees.

Governance and management - this looks at the risks of the charity arising from lack of direction, at the skills and training of its members and staff, and the good use of its resources.

The powers and duties of the trustees are clearly set out in the trust deed. The management committee members help with the organisational tasks and their role and responsibilities are closely monitored by the trustees. The extension of the building to cater for funeral facilities and building of a car park are one of many steps undertaken to reflect good use of resources.

Operational - this looks at the risks inherent in the charity's activities including the process of collecting donations, the unsuitability of buildings, poor maintenance, short-comings in the services provided, poor health and safety, lack of a disaster recovery policy etc.

5

IBAD-UR-RAHMAN TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Donations collected during the week are kept in a secured 'safe' and banked promptly by designated trustee. A separate record is made for any donations collected for a specific purpose and maintained by a designated trustee.

There are security alarms, fire alarms and a CCTV system in place within and around the mosque to ensure maximum safety and security of the property, personnel and congregation on a continuous basis.

Reputational - this looks at possible damage to the charity's reputation that can arise from mis-use of donated income, recruitment of non qualified Imams or lecturers etc.

Having a formal recruitment process in place will ensure that quality of service is maintained by the charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

512616

Principal address

North Manchester Jamia Mosque (Ibad-Ur-Rahman Trust) 3 Woodlands Road Cheetham Hill Manchester M8 9LF

Trustees

M Azmi K Hussain I Hanif G Hassan D Fozdar

Auditors

DJH Mitten Clarke Audit Limited Accountants Statutory Auditors The Glades Festival Way Stoke-on-Trent Staffordshire ST1 5SQ

Bankers

United National Bank Ltd Unit 4, Cheetham Hill Shopping Center 40 Bury old Road Manchester M8 5EL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

6

IBA1￿uR.1L4HMAI￿ TRUST REPORT OF THE TRUSTEES FOR THE YL4R ENDED 31 MARCH 2023 STATEMENT OF TRUSTEES, RLSPONSIBILrriES- tODtinued The law applicable to ¢harities in England and Wale4 the Charities Act 2011, Cljarity (Accounts and Reports) Regulations 21)08 and the provisiorLS of the tn￿ deed requires th¢ trustees to prepare financial staternents for each fitRncial year which ￿ve a ttue and fair view of thc slaie of affairs of the charity aThJ of the Incoming resources and application of resources, including the IT￿Me and exp￿￿'t￿re. of the eharity for that peri￿. In preparing those financial statements, the trLStees #re required to select suitable accounting pilicies and then atvly them Consistently" observe the ￿eth[￿S al￿ princ1￿c5 in the Chatity SORP: Jake judgements and estirnates.that are rvdsoDable and pnadent. state whether applicable accounting standards have been foliowrt subjxt to any material departtwes disclosed and explained in the financial statemcnts,. prepare the financial statements on the going ¢on¢uM ba5i5 unle5S it is inappwate to presume that the charity will continue in busi1￿s. The trystees a￿ responsible for kwing prow accounting records which dI￿10$e wtth reasonable accuracy at any time the financial position of the charity and io enable them ￿ ensure thai the financial ststements eomply with th¢ Charities A¢t 2011, th¢ ChaTity IAc¢ounts and Re￿[ts} RegulatiQDS 2(M)8 alld tb¢ provisions of thc try51 d¢¢iL Th¢y ar¢ also responsible for 5afe8llarding the asgets of the ch￿lty and h¢n¢¢ for taking teasonable sty for the p￿ention And detection offraud and other irregularities. Approved by order of thelx)2rd of tr￿the% on...29..JanLWy..2024.... 8nd sign￿1 on its behalf by: Ha8san. Tr￿e

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IBAD-UR-RAHMAN TRUST

Opinion

We have audited the financial statements of Ibad-Ur-Rahman Trust (the 'charity') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' 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 Report of the Independent Auditors thereon.

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.

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 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.

Matters on which we are required to report by exception

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

8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IBAD-UR-RAHMAN TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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 extend to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IBAD-UR-RAHMAN TRUST

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

DJH Mitten Clarke Audit Limited Accountants Statutory Auditors The Glades Festival Way Stoke-on-Trent Staffordshire ST15SQ

Date: ............................................. 29 January 2024

10

IBAD-UR-RAHMAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
5
Wages
Establishment costs
Donations
Education and Guest speakers
Governance costs
Depreciation
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
14
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
439,675
149
439,824
212,108
120,684
331
88,703
8,396
94,280
524,502
(84,678)
(20,923)
(105,601)
2,574,088
2,468,487		 Restricted
funds
£
382,308
-
382,308
-
-
69,870
-
-
9,989
79,859
302,449
20,923
323,372
5,139,771
5,463,143		 2023
Total
funds
£
821,983
149
822,132
212,108
120,684
70,201
88,703
8,396
104,269
604,361
217,771
-
217,771
7,713,859
7,931,630		 2022
Total
funds
£
990,570
545
991,115
189,762
99,982
45,280
53,888
8,919
100,323
498,154
492,961
-
492,961
7,220,898
7,713,859

The notes form part of these financial statements

11

STATEMEYf OF FIN￿NCIAL POSTrioN 31 LWiCH 2023 2023 Totsi nds 2022 Total fimds UnrcstrIct￿ Restric￿1 Not&5 FIXED ASSETS Property. plant & equipment 1182,104 5,463,143 7.645347 7.393,995 CURRENT ￿ETs Debtors C&sh at bank al￿ in hand 12 1556 1556 348.200 13.503 364.435 349.756 349.756 377,938 CRED￿oRs Arnounts failing due within one year 13 (63J73) (LlJ73) 158,074) NET CURRENT A&SETS 286JLI 319,864 TOTAL ASSETS LE&8 CURRENT LIABILITIES I46&￿ 5,463,143 7.931.630 7.713.859 NET ASSETS 146&4 5.463.143 7,931,630 7,713.859 14 Untestricted fiLT￿lS Restricted fiJn(L8 2,468.487 W,143 2.574.088 5,139,771 TOTAL FUNDS 7,931.630 7.713.859 The financial statements were approved by the Board of T[￿stee& al￿ authorised for issue on 29.January..2Q24...... a￿1 were Sign￿ on its behaif by.. K Huss&in- Try￿tee The notes forni part of these financial slatements 12

IBAD-UR-RAHMAN TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant & equipment
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
339,138
339,138
(355,522)
149
(355,373)
(16,235)
364,435
348,200		 2022
£
598,919
598,919
(1,184,638 )
545
(1,184,093 )
(585,174)
949,609
364,435

The notes form part of these financial statements

13

IBAD-UR-RAHMAN TRUST

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2023 2022
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 217,771 492,961
Adjustments for:
Depreciation charges 104,269 100,323
Interest received (149) (545)
Decrease in debtors 11,947 615
Increase in creditors 5,300 5,565
Net cash provided by operations 339,138 598,919
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 364,435 (16,235) 348,200
364,435 (16,235) 348,200
Total 364,435 (16,235) 348,200

The notes form part of these financial statements

14

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. LEGAL STATUS

Ibad-Ur-Rahman trust is regulated by charity commission since registration on 24 May 1982.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with 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 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Accounting Practice.

After considering the role of Ibad-Ur-Rahman within the wider community (described on pages 1-6 of the Trustee's report) and risk management, the trustees have reasonable expectation that the trust has adequate resources and cash flows to meet it's spending commitments for the foreseeable future.

Weekly donations continue to exceed ongoing running costs of the charity.

The trustees believe that the trust can manage the risk it faces at these challenging times and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. In accordance with the Charities SORP (FRS102), the general volunteer time of volunteers is not recognised as income and can refer to the trustee's annual report for more infortheirn about thier contribution.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Property, plant & equipment

All tangible fixed assets are held under the cost model.

Property, plant and equipment is stated at cost, less accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

life.
Land - Not depreciated
Freehold property &
building - Straight line over 25 years
Fixtures and fittings - 25% on reducing balance
Leasehold property - Straight line over 65 years

Expenditure on minor items of fixtures and fittings, which are individually immaterial, are charged to the statement of financial position when incurred.

Freehold property is owned by the charity and it is used for direct charitable purposes.

The property currently under construction will not be depreciated until construction is complete.

15

continued...

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Property, plant & equipment

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the statement of financial activities when the change arises.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. In this case the reserves represent monies held for the development of the mosque and monies held for specific charitable work.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make estimates and judgements. The estimates are based on historical experiences and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:-

1) Estimating the useful economic life of an asset and the anticipated residual value in calculating an appropriate depreciation charge.

2) Determining the valuation of freehold land and buildings is a key judgement.

Government grant income

Grant income that becomes receivable under 'Protection of Places of Worship Scheme' is recognised in income in the period in which it becomes receivable.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

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continued...

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

3. DONATIONS AND LEGACIES

3.
DONATIONS AND LEGACIES
Donations
Grants
Grants received, included in the above, are as follows:
Other grants
4.
INVESTMENT INCOME
Deposit account interest
5.
CHARITABLE ACTIVITIES COSTS		 2023
£
821,983
-
821,983
2023
£
-
2023
£
149		 2022
£
944,404
46,166
990,570
2022
£
46,166
2022
£
545
Wages
Establishment costs
Donations
Education and Guest speakers
Governance costs
Depreciation		 Direct
Costs
£
212,108
120,684
70,201
88,703
-
104,269
595,965		 Support
costs (see
note 6)
£
-
-
-
-
8,396
-
8,396		 Totals
£
212,108
120,684
70,201
88,703
8,396
104,269
604,361

continued...

17

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

6. SUPPORT COSTS

SUPPORT COSTS SUPPORT COSTS SUPPORT COSTS
Governance
costs
£
Governance costs
8,396
2023
£
Audit fees 3,980
Accountancy services 4,436
8,919

7. AUDITORS' REMUNERATION

During the year remuneration of £3,960 (2022: £3,720) was paid to the auditors of the charity.

8. TRUSTEES' REMUNERATION AND BENEFITS

Trustees' expenses

There were no trustees' benefits or expenses for the year ended 31 March 2023, nor for the year ended 31 March 2022.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Administration and support		 2023
£
210,166
4,433
1,412
216,011
2023
33		 2022
£
185,186
3,411
1,165
189,762
2022
31

No employees received emoluments in excess of £60,000.

continued...

18

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Charitable activities
Wages
Establishment costs
Donations
Education and Guest speakers
Governance costs
Depreciation
Total
NET INCOME
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 ACTIVITIES
Unrestricted
funds
£
546,019
545
546,564
179,142
99,982
-
53,888
8,919
90,334
432,265
114,299
(750,487)
(636,188)
3,210,276
2,574,088		 Restricted
funds
£
444,551
-
444,551
10,620
-
45,280
-
-
9,989
65,889
378,662
750,487
1,129,149
4,010,622
5,139,771		 Total
funds
£
990,570
545
991,115
189,762
99,982
45,280
53,888
8,919
100,323
498,154
492,961
-
492,961
7,220,898
7,713,859

continued...

19

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

11. PROPERTY, PLANT & EQUIPMENT

COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Freehold
land and
buildings
under
construction
£
5,143,808
355,522
5,499,330
-
-
-
5,499,330
5,143,808		 Freehold
land and
buildings
£
2,442,410
-
2,442,410
615,833
87,977
703,810
1,738,600
1,826,577		 Leasehold
land and
buildings
£
401,697
-
401,697
18,540
6,180
24,720
376,977
383,157		 Fixtures
and
fittings
£
115,010
-
115,010
74,557
10,113
84,670
30,340
40,453		 Totals
£
8,102,925
355,522
8,458,447
708,930
104,270
813,200
7,645,247
7,393,995

Included in cost of land and buildings is freehold land of £449,000 (2022: £449,000) which is not depreciated.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income		 2023
£
-
1,556
1,556		 2022
£
12,000
1,503
13,503

continued...

20

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accrued expenses
14.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Revaluation reserve
Restricted funds
Zakat
Building development appeal
Building development expended
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Restricted funds
Zakat
Fund raising
Building development appeal
Building development expended
TOTAL FUNDS		 At 1.4.22
£
1,107,506
1,466,582
2,574,088
22,161
-
5,117,610
5,139,771
7,713,859
as follows:		 Net
movement
in funds
£
(84,678)
-
(84,678)
-
312,438
(9,989)
302,449
217,771
Incoming
resources
£
439,824
26,775
43,095
312,438
-
382,308
822,132		 2023
£
63,373
Transfers
between
funds
£
1,445,659
(1,466,582 )
(20,923)
(22,161)
(312,438)
355,522
20,923
-
Resources
expended
£
(524,502)
(26,775)
(43,095)
-
(9,989)
(79,859)
(604,361)		 2022
£
58,074
At
31.3.23
£
2,468,487
-
2,468,487
-
-
5,463,143
5,463,143
7,931,630
Movement
in funds
£
(84,678)
-
-
312,438
(9,989)
302,449
217,771

continued...

21

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

14. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Revaluation reserve
Restricted funds
Zakat
Building development appeal
Building development expended
TOTAL FUNDS		 At 1.4.21
£
1,743,694
1,466,582
3,210,276
26,171
-
3,984,451
4,010,622
7,220,898		 Net
movement
in funds
£
114,299
-
114,299
(4,010)
392,661
(9,989)
378,662
492,961		 Transfers
between
funds
£
(750,487)
-
(750,487)
-
(392,661)
1,143,148
750,487
-		 At
31.3.22
£
1,107,506
1,466,582
2,574,088
22,161
-
5,117,610
5,139,771
7,713,859

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Zakat
Playscheme
Fund raising
Building development appeal
Building development expended
TOTAL FUNDS		 Incoming
resources
£
546,564
24,425
13,500
13,965
392,661
-
444,551
991,115		 Resources
Movement
expended
in funds
£
£
(432,265)
114,299
(28,435)
(4,010)
(13,500)
-
(13,965)
-
-
392,661
(9,989)
(9,989)
(65,889)
378,662
(498,154)
492,961		 Resources
Movement
expended
in funds
£
£
(432,265)
114,299
(28,435)
(4,010)
(13,500)
-
(13,965)
-
-
392,661
(9,989)
(9,989)
(65,889)
378,662
(498,154)
492,961
378,662
492,961

Zakat

This restricted fund comprises of monies specifically to be used for making donations to other charities/madrasas particularly to those in India and Pakistan.

Building development appeal

This restricted fund comprises of all monies donated to the trust specifically for the construction of the mosque building.

Building development expended

This restricted fund comprises of all the monies that has been spent on the mosque development.

continued...

22

IBAD-UR-RAHMAN TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

14. MOVEMENT IN FUNDS - continued

Transfers between funds

Restricted Funds

A total of £355,522 was transferred from the Building Development Appeal to the Building Development Expended and £43,084 from Building Development Expended to General in respect of the amount spent on mosque development and consequently capitalised.

15. RELATED PARTY DISCLOSURES

During the period, there were no related party transactions, other than those already disclosed within Note 8 - Trustee remuneration and benefits.

16. ULTIMATE CONTROLLING PARTY

The charity is controlled by the trustees in the office.

23