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2024-03-31-accounts

Charity registration number 512616

Ibad-Ur-Rahman Trust

Annual Report and Financial Statements For the year ended 31 March 2024

Ibad-Ur-Rahman Trust

Legal and administrative information

Trustees M Azmi
D Fozdar
G Hassan
K Hussain
I Hanif
Charity number 512616
Auditor DJH Audit Limited
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Bankers United National Bank Ltd
Unit 4,
Cheetham Hill Shopping Centre
40 Bury Old Road
Manchester
M8 5EL

Ibad-Ur-Rahman Trust

Contents

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 23

Ibad-Ur-Rahman Trust

Trustees' report

For the year ended 31 March 2024

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.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's [governing document], 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).

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:

Ibad-Ur-Rahman Trust

Trustees' report (continued)

For the year ended 31 March 2024

Achievements 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. Internally the mosque is fully complete, some external works are still to be completed. The mosque has been renamed to Anwaar Ul Haramain Jamé Masjid Manchester.

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 availablethroughout 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.

We hope to continue with these events in forthcoming years as well as arranging events such as picnicinthe-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).

Ibad-Ur-Rahman Trust

Trustees' report (continued)

For the year ended 31 March 2024

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 Imam 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

For the year ended 31 March 2024 the total incoming resources amounted to £813,859 (2023: £822,132). Of this income £722,456 was received by way of donations, with £226,950 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. Resources expended totalled £896,076 compared to £604,361 in 2023.

Net deficit for the year was £82,217 (2023: surplus £217,771).

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 £7,849,413. Of this, £2,296,967 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.

Plans for future periods

The Trustees plan to:

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.

Ibad-Ur-Rahman Trust

Trustees' report (continued)

For the year ended 31 March 2024

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.

M Azmi

D Fozdar

G Hassan K Hussain I Hanif

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 of 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.

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 Anwaar ul Haramain Jamé Masjid Manchester, 3 Woodlands Rd, Cheetham Hill, Manchester, M8 9LF.

The Trust now has 4 full time employees (Chief Imam, Trust Manager, an office administrator/caretaker and a janitor) and 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.

Ibad-Ur~Rahman Trust Trustees. report (continued) For the year ended 31 March 2024 Indurtlon and tralnlng of trustees Followlng 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 charlty. A number of publlcations from the Charity Commlsslon are also provided, IncludSng the guidance on charities and public beneflt and on the advancement of religion for the publlc benefit. Thls ensures that new trustees are aware of the scope of thelr responslbllltles under the Charltles Act. Inltlally new trustees work with an existing trustee assistlng on partlcular activities and projects run by the charity, After satisfactory feedback from exlsting trustees, they are then glven the task of leadlng a partlcular actlvlty or project, reportlng progress at trustees, meetlngs. Rlsk management In Ilne wlth the requlrement for trustees to undertake a rlsk assessment exercSse and Identlfy key rlsks the trust faces In England and Wales, the trustees have revlewed the measures In place, or needlng to put In place, to deal wlth these rlsks. There are three maln areas of rlsk that has been Identlfled by the trustees, Governance and management Operatlonal Reputatlonal Governance and management thls looks at the rlsks of the charlty arlslng from lack of dlrectlon, at the skllls and tralnlng of Its members and staff, and the good use of Its resources. The powers and dutles of the trustees are clearly set out In the trust deed. The management commlttee members help wlth the organlsatlonal tasks and thelr role and responslbllltles are closely monltored by the trustees. The extenslon of the bulldlng to cater for funeral facllltles and bulldlng of a car park are one of many steps undertaken to reflect good use of resources. Operatlonal thls looks at the rlsks Inherent In the charlty's actlvltles Includlng the process of collectlng donatlons, the unsultablllty of bulldlngs, poor malntenance, short-comlngs In the servlces provlded, poor health and safety, lack of a dlsa5ter recovery pollcy etc. Donatlon5 collected durlng the week are kept In a secured 'safe' and banked promptly by deslgnated trustee. A separate record Is made for any donatlons collected for a speclflc purpose and malntalned by a deslgnated trustee. There are securlty alarms, flre alarms and a CCTV system In place wlthln and around the mosque to ensure maxlmum safety and securlty of the property, personnel and congregatlon on a contlnuous basls. Reputatlonal thls looks at posslble damage to the charlty's reputatlon that can arlse from mls-use of donated Income, recrultment of non quallfled Imams or lecturers etc. Havlng a formal recrultment process In place wlll ensure that quallty of servlce Is malntalned by the charlty. Approved by order of the board of trustees and slgned on Its behalf by: a55an Trustee Date:

Ibad-Ur-Rahman Trust Statement of trustees. responsibilities For the year ended 31 March 2024 The trustees are responslble for preparlng the Report of the Trustees and the flnancial statements In accordance wlth appllcable law and Unlted Klngdom Accountlng Standards (Unlted Klngdom Generally Accepted Accounting Practlce). The law appllcable to charltles In England and Wales, the Charltles Act 2011, Charlty (Accounts and Reports) Regulatlons 2008 and the prov151ons of the trust deed requires the trustees to prepare flnanclal statements for each financlal year which give a true and falr vlew of the state of affairs of the charity and of the incomlng resource5 and applicatlon of resources, Includlng Income and expendlture, of charlty for that perlod. In preparlng those flnanclal statements, the trustees are requlred to select sultable accountlng pollcles and then apply them conslstentlyi observe the methods and princlples In the Charlty SORP; make judgements and estlmates that are reasonable and prudent; state whether appllcable accounting standards have been followed, subject to any materlal departures dlsclosed and explalned In the flnanclal statements. prepare the flnancSal statements on the golng concern basls unless It Is Inapproprlate to presume that the charlty wlll contlnue In buslness. The trustees are responslble for keeplng proper accountlng records whlch dlsclose wlth reasonable accuracy at any tlme the flnanclal posltlon of charlty and to enable them to ensure that the flnanclal statements comply wlth the Charltles Act 2011, CharSty {Accounts and Reports) Regulatlons 2008 and the provlslons of the trust deed. They are also responsible for safeguarding the assets of the charlty and hence for taklng reasonable steps fort he preventlon and detectlon of fraud Irregularltles. Approved by order of the board of trustees on by.. and slgned on Its behalf san Trustee

Ibad-Ur-Rahman Trust

Independent auditor's report

To the Trustees of Ibad-Ur-Rahman Trust

Opinion

We have audited the financial statements of Ibad-Ur-Rahman Trust (the ‘Trust’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 Trust 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 Trust’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 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 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.

Ibad-Ur-Rahman Trust

Independent auditor's report (continued) To the Trustees of Ibad-Ur-Rahman Trust

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 Trust’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.

Ibad-Ur-Rahman Trust

Independent auditor's report (continued)

To the Trustees of Ibad-Ur-Rahman Trust

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

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 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.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Ibad-Ur-Rahman Trust

Independent auditor's report (continued) 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 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

DJH Audit Limited Accountants Statutory Auditor

30 January 2025 .........................

The Exchange 5 Bank Street Bury Lancashire BL9 0DN

DJH Audit Limited is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Ibad-Ur-Rahman Trust

Statement of financial activities Including income and expenditure account

For the year ended 31 March 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and
legacies
3
495,506
226,950
Charitable activities
4
78,565
-
Investments
5
12,838
-
Total income
586,909
226,950
Expenditure on:
Charitable activities
6
628,359
267,717
Total expenditure
628,359
267,717
Net income/(expenditure)
(41,450)
(40,767)
Transfers between
funds
(130,070)
130,070
Net movement in
funds
8
(171,520)
89,303
Reconciliation of funds:
Fund balances at 1 April
2023
2,468,487
5,463,143
Fund balances at 31
March 2024
2,296,967
5,552,446		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
722,456
439,675
382,308
78,565
-
-
12,838
149
-
813,859
439,824
382,308
896,076
524,502
79,859
896,076
524,502
79,859
(82,217)
(84,678)
302,449
-
(20,923)
20,923
(82,217)
(105,601)
323,372
7,931,630
2,574,088
5,139,771
7,849,413
2,468,487
5,463,143		 Total
2023
£
821,983
-
149
822,132
604,361
604,361
217,771
-
217,771
7,713,859
7,931,630

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

Ibad-Ur-Rahman Trust Balance sheet As at 31 March 2024 2024 2023 Notes Flxed assets Tangible assets 12 7,645,909 7,645,247 Current assets Debtors Cash at bank and In hand 13 7,832 267,366 1,556 348,200 275,198 349,756 Credltor8: Jmounts falllng due wlthln one year 14 {71,6941 163,3731 Net current asset* 203,504 286,383 Total aJset• le•8 Current Ilabllltles 7,849,413 7,931,630 The funds of the Trust Restricted income funds Unrestrlcted funds 16 17 5,552,446 2,296,967 5,463,143 2,468,487 7,849,413 7,931,630 The flnanclal statements were approved by the Trustees on 4.tsl D.(l.%.o.%. assan Trustee 12

Ibad-Ur-Rahman Trust

Statement of cash flows

For the year ended 31 March 2024

2024 2023
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 20 235,953 339,138
Investing activities
Purchase of tangible fixed assets (329,625) (355,522)
Investment income received 12,838 149
Net cash used in investing activities (316,787) (355,373)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (80,834) (16,235)
Cash and cash equivalents at beginning of year 348,200 364,435
Cash and cash equivalents at end of year 267,366 348,200

Ibad-Ur-Rahman Trust

Notes to the financial statements For the year ended 31 March 2024

1 Accounting policies

Charity information

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

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Trust is a Public Benefit Entity as defined by FRS 102.

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 Trust. 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 Trust has adequate resources to continue in operational existence for the foreseeable future. Thus 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 furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.

1.4 Income

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued) For the year ended 31 March 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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 land and buildings Straight line over 25 years Leasehold land and buildings Straight line over 65 years Fixtures and fittings 25% on reducing balance

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 the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust's balance sheet when the Trust 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.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued) For the year ended 31 March 2024

1 Accounting policies

(Continued)

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.

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 Trust’s contractual obligations expire or are discharged or cancelled.

1.10 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 Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Trust’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. The 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.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued)

For the year ended 31 March 2024

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
481,814
226,950
Grants
13,692
-
495,506
226,950		 Total
Unrestricted
Restricted
Total
funds
funds
2024
2023
2023
2023
£
£
£
£
708,764
439,675
382,308
821,983
13,692
-
-
-
722,456
439,675
382,308
821,983

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Education
Education 78,565 -

5 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Rental income 12,838 -
Interest receivable - 149
12,838 149

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued)

For the year ended 31 March 2024

6 Expenditure on charitable activities

Total Funds Total Funds
2024 2023
£ £
Direct costs
Staff costs 267,008 216,011
Depreciation and impairment 328,962 104,270
Donations 45,995 70,201
Insurance 6,869 6,144
Light and Heat 35,954 34,800
Telephone 1,875 2,016
Postage and Stationery 3,756 4,479
Advertising - 2,800
Sundries 13,703 567
Travel 3,530 2,392
Repairs 20,967 29,348
Security 10,424 10,084
Rent 4,186 7,500
Tutors 110,299 88,703
Guest Speakers 2,250 6,731
Food/Catering 30,663 9,919
886,441 595,965
Share of support and governance costs (see note 7)
Governance 9,635 8,396
896,076 604,361
Analysis by fund
Unrestricted funds 628,359 524,502
Restricted funds 267,717 79,859
896,076 604,361
7 Support costs allocated to activities
2024 2023
£ £
Governance costs 9,635 8,396
Analysed between:
Total Funds 9,635 8,396

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued)

For the year ended 31 March 2024

7
Support costs allocated to activities
Governance costs comprise:
Audit fees
Accountancy
8
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets		 (Continued)
2024
2023
£
£
2,400
3,960
7,235
4,436
9,635
8,396
2024
2023
£
£
2,400
3,960
328,962
104,270		 (Continued)
2024
2023
£
£
2,400
3,960
7,235
4,436
9,635
8,396
2024
2023
£
£
2,400
3,960
328,962
104,270
8,396
2023
£
3,960
104,270

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

10 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Administration and support 39 33
Employment costs 2024 2023
£ £
Wages and salaries 258,674 210,166
Social security costs 6,560 4,433
Other pension costs 1,774 1,412
267,008 216,011

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

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued)

For the year ended 31 March 2024

12
Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 April 2023
7,941,739
Additions
323,985
At 31 March 2024
8,265,724
Depreciation and impairment
At 1 April 2023
703,810
Depreciation charged in the year
312,669
At 31 March 2024
1,016,479
Carrying amount
At 31 March 2024
7,249,245
At 31 March 2023
7,237,930
13
Debtors
Amounts falling due within one year:
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
15
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 Leasehold
land and
buildings
£
401,697
-
401,697
24,720
6,180
30,900
370,797
376,977		 Fixtures and
fittings
£
115,010
5,640
120,650
84,670
10,113
94,783
25,867
30,340
2024
£
7,832
2024
£
20,112
2,400
39,375
9,807
71,694
2024
£
1,774		 Total
£
8,458,446
329,625
8,788,071
813,200
328,962
1,142,162
7,645,909
7,645,247
2023
£
1,556
2023
£
11,024
-
35,402
16,947
63,373
2023
£
1,412

The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued) For the year ended 31 March 2024

16 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Zakat
Fundraising
Building development appeal
Building development
expended
Previous year:
Zakat
Fund raising
Building development appeal
Building development
expended		 At 1 April
2023

£
-
-
-
5,463,143
5,463,143
At 1 April
2022

£
22,161
-
-
5,117,610
5,139,771		 Incoming
resources
Resources
expended
£
£
30,500
(30,500)
2,535
(2,535)
193,915
-
-
(234,682)
226,950
(267,717)
Incoming
resources
Resources
expended
£
£
26,775
(26,775)
43,095
(43,095)
312,438
-
-
(9,989)
382,308
79,859		 Transfers
At
£
-
-
(193,915)
323,985
130,070
Transfers
At
£
(22,161)
-
(312,438)
355,522
20,923		 31 March
2024
£
-
-
-
5,552,446
5,552,446
31 March
2023
£
-
-
-
5,463,143
5,463,143

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.

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued) For the year ended 31 March 2024

17 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.

General fund
Previous year:
General fund
Revaluation reserve		 At 1 April
2023

£
2,468,487
At 1 April
2022

£
1,107,506
1,466,582
2,574,088		 Incoming
resources
Resources
expended
Transfers
At
£
£
£
586,909
(628,359)
(130,070)
Incoming
resources
Resources
expended
Transfers
At
£
£
£
439,824
(524,502)
1,445,659
-
-
(1,466,582)
439,824
524,502
(20,923)		 31 March
2024
£
2,296,967
31 March
2023
£
2,468,487
-
2,468,487

18 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 March 2024:
Tangible assets
2,093,463
5,552,446
Current assets/(liabilities)
203,504
-
2,296,967
5,552,446
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 March 2023:
Tangible assets
2,182,104
5,463,143
Current assets/(liabilities)
286,383
-
2,468,487
5,463,143		 Total
2024
£
7,645,909
203,504
7,849,413
Total
2023
£
7,645,247
286,383
7,931,630

19 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

Ibad-Ur-Rahman Trust

Notes to the financial statements (continued)

For the year ended 31 March 2024

20
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from operations
21
Analysis of changes in net funds		 2024
£
(82,216)
(12,838)
328,962
(6,276)
8,321
235,953		 2023
£
217,771
(149)
104,270
11,948
5,298
339,138

The Trust had no material debt during the year.