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← Ibad-Ur-Rahman Trust

2025-03-31-accounts

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

REGISTERED CHARITY NUMBER: 512616

Trustees' Report and

Audited Financial Statements for the Year Ended 31 March 2025

for

Ibad-Ur-Rahman Trust

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Contents of the Financial Statements for the Year Ended 31 March 2025

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Trustees' Report 1 to 9
Report of the Independent Auditors 10 to 13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18 to 27
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Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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).

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Ibad-Ur-Rahman Trust

Trustees' Report

for the Year Ended 31 March 2025

OBJECTIVES AND ACTIVITIES Public benefit

The Trust was established for the benefit of the public in Manchester. The main objectives of the Trust are: - To establish a mosque to provide a place of worship for the Muslim population of Manchester and surrounding areas

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:

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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).

For the financial year ended 31 March 2025, Manchester Muslim College had 139 students studying a varying range of full time, part time, evening and weekend courses.

The trustees have also consolidated the management of Manchester Muslim College by appointing a new principal and manager to run the college.

The New Mosque Building

The main Mosque building has been replaced with a larger, modern and more impressive building. Internally the mosque was completed in early 2024, and has been fully opened to the public since. The mosque is now known as Anwaar Ul Haramain Jamé Masjid Manchester.

Further work was undertaken during the year to improve the external areas of the mosque, including the installation of paving and lawn to enhance the finished look of the complex. Work has also started on the ladies entrance area to the mosque, to bring it in line with the external facade of the new building.

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 Saturday mornings 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.

In the new mosque building, the annual Eid Milaad-un-Nabi programme was attended by close to 1,000 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.

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

SSC also hold fundraising Eid Parties, with all donations to the masjid. 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 through the Gaza appeal, Ramadan and weekly donations.

We hope to continue with these events on an expanded basis in the new mosque building 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 150 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 are employed teach the children. Regular training is provided to the teachers by our Head Imam and they have also attended safe-guarding training provided by the Local Authority. Additionally, the teachers also attended classroom management training in the year.

Other services

The Trust continues to run 'The Friendship and Wellbeing Group' programme every Tuesday for Ladies and every Wednesday for men. The Trust has also started various community-based activities for the local community.

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

FINANCIAL REVIEW

For the year ended 31 March 2025 the total incoming resources amounted to £908,675 (2024: £813,859). Of this income £825,084 was received by way of donations, with £31,090 classified as restricted funds being donated specifically in response to disaster appeal, zakat and development of the mosque. The balance is unrestricted and undesignated. Resources expended totalled £891,353 compared to £896,076 in 2024.

Net surplus for the year was £17,322 (2024: deficit £82,217).

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 £7,866,735. Of this, £2,482,904 is represented by unrestricted funds which is for the support of the charity objectives.

Going concern

The trustees aim to ensure the organisation has sufficient funds to cover at least 6-9 months of operational expenditure, with the organisation retaining £534,863 of funds at bank on 31/12/2025. Moreover, after considering the role of Ibad-Ur-Rahman Trust within the wider community and the regular donations the organisation receives for charitable services rendered, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.

Plans for future periods

The Trustees plan to:

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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 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, 25 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.

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 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.

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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.

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.

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Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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

Accountants

Isaacs Accountants Trust House St James Business Park 5 New Augustus Street Bradford BD1 5LL

Auditors

KJA Kilner Johnson Ltd Statutory Auditors Woodland House Woodland Park Cleckheaton West Yorkshire BD19 6BW

Bankers

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

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Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Trustees' Report for the Year Ended 31 March 2025

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).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including income and expenditure, of charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, 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 irregularities.

30/01/2026 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................................... CA66B1F00D77974C3... by: G Hassan - Trustee

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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 2025 which comprise the Statement of Financial Activites, Balance Sheet, Cash Flow Statement 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 (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 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 matters

In line with ISA 710 and our requirements as statutory auditors, we state the fact that the prior period figures were audited by the predecessor auditor. We have performed audit procedures to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial statements.

Other information

The other information comprises the information included in the trustees' annual report2, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. 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.

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Report of the Independent Auditors 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 trustees' responsibilities statement [set out on page …], 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Report of the Independent Auditors to the Trustees of Ibad-Ur-Rahman Trust

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

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

While planning our audit, we have enquired of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage.

We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to us.

While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities.

The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in a way to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that require additional reporting.

These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

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.

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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.

KJA Kilner Johnson Ltd Woodland House Woodland Park Bradford Road Cleckheaton BD19 6BW 31/01/2026 Date: .............................................

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Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Statement of Financial Activities

for the Year Ended 31 March 2025

Notes
INCOME FROM
Donations and legacies
4
Charitable activities
6
Education
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Staff costs
Establishment costs
Donations
Education and guest speakers
Governance costs
Depreciation
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
15
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
793,994
60,722
22,869
877,585
286,767
131,259
-
135,753
10,732
90,634
655,145
222,440
(36,503)
185,937
2,296,967
2,482,904		 Restricted
funds
£
31,090
-
-
31,090
-
-
150
-
-
236,058
236,208
(205,118)
36,503
(168,615)
5,552,446
5,383,831		 2025
Total
funds
£
825,084
60,722
22,869
908,675
286,767
131,259
150
135,753
10,732
326,692
891,353
17,322
-
17,322
7,849,413
7,866,735		 2024
Total
funds
£
722,456
78,565
12,838
813,859
267,008
131,926
45,996
112,549
9,635
328,962
896,076
(82,217)
-
(82,217)
7,931,630
7,849,413

The notes form part of these financial statements

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Ibad-Ur-Rahman Trust

Balance Sheet 31 March 2025

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand		 Unrestricted
Restricted
funds
funds
£
£
2,002,829
5,353,391
67,505
-
486,846
30,440		 2025
2024
Total
Total
funds
funds
£
£
7,356,220
7,645,909
67,505
7,832
517,286
267,366
CREDITORS
Amounts falling due within one year
14		 554,351
30,440
(74,276)
-		 584,791
275,198
(74,276)
(71,694)
NET CURRENT ASSETS 480,075
30,440		 510,515
203,504
TOTAL ASSETS LESS CURRENT LIABILITIES 2,482,904
5,383,831		 7,866,735
7,849,413
NET ASSETS 2,482,904
5,383,831		 7,866,735
7,849,413
FUNDS
15
Unrestricted funds
Restricted funds		 2,482,904
2,296,967
5,383,831
5,552,446
TOTAL FUNDS 7,866,735
7,849,413

30/01/2026 The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

CA ............................................. 66B1F00D77974C3... by: G Hassan - Trustee

The notes form part of these financial statements

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Ibad-Ur-Rahman Trust

Cash Flow Statement for the Year Ended 31 March 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Investment income 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		 2025
£
264,055
264,055
(37,004)
22,869
(14,135)
249,920
267,366
517,286		 2024
£
235,952
235,952
(329,624)
12,838
(316,786)
(80,834)
348,200
267,366

The notes form part of these financial statements

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Ibad-Ur-Rahman Trust

Notes to the Cash Flow Statement for the Year Ended 31 March 2025

1.
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2025
£
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
17,322
Adjustments for:
Depreciation charges
326,692
Investment income received
(22,869)
Increase in debtors
(59,673)
Increase in creditors
2,583
Net cash provided by operations
264,055
2024
£
(82,217)
328,962
(12,838)
(6,276)
8,321
235,952

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1.4.24
£
267,366
267,366
267,366		 Cash flow
At 31.3.25
£
£
249,920
517,286
249,920
517,286
249,920
517,286

The notes form part of these financial statements

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Ibad-Ur-Rahman Trust

Notes to the Financial Statements for the Year Ended 31 March 2025

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 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 £.

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.

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.

Governance costs

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.

continued...

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Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

2. ACCOUNTING POLICIES - continued

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

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.

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).

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.

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.

continued...

Page 19

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

2. ACCOUNTING POLICIES - continued

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.

3. 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.

4. DONATIONS AND LEGACIES

Donations
Grants
Zakat
Fundraising
Donated services and facilities
Grants received, included in the above, are as follows:
Other grants		 2025
£
793,994
-
1,900
28,690
500
825,084
2025
£
-		 2024
£
481,814
13,692
30,500
2,535
193,915
722,456
2024
£
13,692

continued...

Page 20

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

5.
INVESTMENT INCOME
Rental income
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Education
Education
7.
CHARITABLE ACTIVITIES COSTS
Staff costs
Establishment costs
Donations
Education and guest speakers
Governance costs
Depreciation
8.
SUPPORT COSTS
Governance costs		 Direct
Costs
£
286,767
131,259
150
135,753
-
326,692
880,621		 2025
£
22,869
2025
£
60,722
Support
costs (see
note 8)
£
-
-
-
-
10,732
-
10,732		 2024
£
12,838
2024
£
78,565
Totals
£
286,767
131,259
150
135,753
10,732
326,692
891,353
Governance
costs
£
10,732

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

continued...

Page 21

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

10. STAFF COSTS

Staff costs for the year were £286,767 (2024: £267,008). These comprised wages and salaries of £247,166 (2024: £258,674), social security costs of £35,496 (2024: £6,560) and other pension costs of £4,105 (2024: £1,774).

The average monthly number of employees during the year was 37 (2024: 39).

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

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM
Donations and legacies
Charitable activities
Education
Investment income
Total
EXPENDITURE ON
Charitable activities
Staff costs
Establishment costs
Donations
Education and guest speakers
Governance costs
Depreciation
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
495,506
78,565
12,838
586,909
267,008
131,926
12,961
112,549
9,635
94,280
628,359
(41,450)
(130,070)
(171,520)
2,468,487
2,296,967		 Restricted
funds
£
226,950
-
-
226,950
-
-
33,035
-
-
234,682
267,717
(40,767)
130,070
89,303
5,463,143
5,552,446		 Total
funds
£
722,456
78,565
12,838
813,859
267,008
131,926
45,996
112,549
9,635
328,962
896,076
(82,217)
-
(82,217)
7,931,630
7,849,413

continued...

Page 22

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

12. TANGIBLE FIXED ASSETS

COST
At 1 April 2024
Additions
At 31 March 2025
DEPRECIATION
At 1 April 2024
Charge for year
At 31 March 2025
NET BOOK VALUE
At 31 March 2025
At 31 March 2024		 Freehold
property
£
8,265,724
37,004
8,302,728
1,016,479
314,046
1,330,525
6,972,203
7,249,245		 Long
leasehold
£
401,697
-
401,697
30,900
6,180
37,080
364,617
370,797		 Fixtures
and
fittings
£
120,650
-
120,650
94,783
6,467
101,250
19,400
25,867		 Totals
£
8,788,071
37,004
8,825,075
1,142,162
326,693
1,468,855
7,356,220
7,645,909

Included within Freehold Property is land of £448,999 (2024: £448,999) which is not being depreciated.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments		 2025
£
65,984
1,521
67,505		 2024
£
-
7,832
7,832

continued...

Page 23

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Taxation and social security
Other creditors
15.
MOVEMENT IN FUNDS
At 1.4.24
£
Unrestricted funds
Unrestricted funds
2,296,967
Restricted funds
Zakat
-
Fund raising
-
Building development appeal
-
Building development expensed
5,552,446
5,552,446
TOTAL FUNDS
7,849,413
Net movement in funds, included in the above are as follows:
Unrestricted funds
Unrestricted funds
Restricted funds
Zakat
Fund raising
Building development appeal
Building development expensed
TOTAL FUNDS		 Net
movement
in funds
£
222,440
1,750
28,690
500
(236,058)
(205,118)
17,322
Incoming
resources
£
877,585
1,900
28,690
500
-
31,090
908,675		 2025
£
8,751
2,873
62,652
74,276
Transfers
between
funds
£
(36,503)
-
-
(500)
37,003
36,503
-
Resources
expended
£
(655,145)
(150)
-
-
(236,058)
(236,208)
(891,353)		 2024
£
2,400
20,112
49,182
71,694
At
31.3.25
£
2,482,904
1,750
28,690
-
5,353,391
5,383,831
7,866,735
Movement
in funds
£
222,440
1,750
28,690
500
(236,058)
(205,118)
17,322

continued...

Page 24

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
Unrestricted funds
Restricted funds
Building development appeal
Building development expensed
TOTAL FUNDS
Comparative net movement in funds, included
Unrestricted funds
Unrestricted funds
Restricted funds
Zakat
Fund raising
Building development appeal
Building development expensed
TOTAL FUNDS		 At 1.4.23
£
2,468,487
-
5,463,143
5,463,143
7,931,630
in the above are		 as Net
movement
in funds
£
(41,450)
193,915
(234,682)
(40,767)
(82,217)
follows:
Incoming
resources
£
586,909
30,500
2,535
193,915
-
226,950
813,859		 Transfers
between
funds
£
(130,070)
(193,915)
323,985
130,070
-
Resources
expended
£
(628,359)
(30,500)
(2,535)
-
(234,682)
(267,717)
(896,076)		 At
31.3.24
£
2,296,967
-
5,552,446
5,552,446
7,849,413
Movement
in funds
£
(41,450)
-
-
193,915
(234,682)
(40,767)
(82,217)

Page 25

continued...

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

15. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
Unrestricted funds
Restricted funds
Zakat
Fund raising
Building development appeal
Building development expensed
TOTAL FUNDS		 At 1.4.23
£
2,468,487
-
-
-
5,463,143
5,463,143
7,931,630		 Net
movement
in funds
£
180,990
1,750
28,690
194,415
(470,740)
(245,885)
(64,895)		 Transfers
between
funds
£
(166,573)
-
-
(194,415)
360,988
166,573
-		 At
31.3.25
£
2,482,904
1,750
28,690
-
5,353,391
5,383,831
7,866,735

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted funds
Restricted funds
Zakat
Fund raising
Building development appeal
Building development expensed		 Incoming
resources
£
1,464,494
32,400
31,225
194,415
-		 Resources
Movement
expended
in funds
£
£
(1,283,504)
180,990
(30,650)
1,750
(2,535)
28,690
-
194,415
(470,740)
(470,740)
258,040 (503,925)
(245,885)
TOTAL FUNDS 1,722,534 (1,787,429)
(64,895)

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.

Fund raising

This restricted fund comprises of donations from the public for disaster appeal.

continued...

Page 26

Docusign Envelope ID: 25D9471A-6AD9-471E-850B-E5A809C54FF4

Ibad-Ur-Rahman Trust

Notes to the Financial Statements - continued for the Year Ended 31 March 2025

15. MOVEMENT IN FUNDS - continued

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.

16. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2025.

17. ULTIMATE CONTROLLING PARTY

The charity is controlled by the trustees in office.

Page 27