REGISTERED CHARITY NUMBER: 517381 Report of the Trustees and Financial Statements for the Year Ended 31 March 2022 for Dar Ul Uloom Islamia Rizwia {Bralawai) Locke Williams Associates LLP Chartered Accountants Registered Auditors clo Blackthorn House St Pauls Square Birmingham Wesl Midlands B31RL
Dar Ul Uloom Islamia Rizwia IBralawai} Contents of the Financlal Statements for the Year Ended 31 March 2022 Page Report of the Trustees Report ofthe Independent Audltors 10 to 12 Statement of Flnancial Activities 13 Balance Sheet 14 Cash Flow Statement 15 Notes to the Financial Statements 16 10 26
Dar Ul Uloom Islarnia Rizwia (Bralawall Report of the Trustees for the Year Ended 31 March 2022 The trustees present thelr report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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 IFRS 1021 (effective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims The objects of the Charity are lo promote for the benefit of persons who profess the faith of Dar ul Uloom Islamia Rizwia (Bralawail and who are resident in the city of Birmingham, by". {•} the advancement of education particularly religious education and in the principles of the Islamic faith by the eslablishmenl, support, maintenance and management of a school and by the provisions of scholarships and bursaries tenable at the said school. {iil Ihe propagation advancement and practice of the Islamic Religion according lo the said faith by the acquisition Maintenan and fumishing of a place or places for religious worship and by the holding of religious services., (iii) the relief of poverty., and {Iv} the provision of facilities by associating the local authorities, voluntary organisations and the said persons in a common effort lo provide such facilities in the interest of social welfare for recreats'on and leisure tirne occupation with the object of improving the conditions of life for the said persons and the establishment or the securing of the eslablishmenl of a community eentre and the maintenance or the Co-operation with any local stalulory authority in the maintenance and management of such centre for activrties promoted by the Charity and its constituent bodies in furtherance of these objects. Charitable purpose The purpose of the Charity is lo help local people fulfil their personal potential both as people of faith and more generally. To help beneficiaries lo reduce povety on an individual basis. in their families and neorkS and in their local neighbourhoods. The Charity will endeavour to fulfil this trust by the implementation of ils objects las above}, in particular by.. Advancing education, particularly ligiOuS education in the principles of the Islami¢ faith through the Education Centre and Trlated activities., Maintaining the Central Jamia Mosque Ghamkol Sharif on Golden Hillock Road Ithe Masjid} as a place of religious worship and providing appropriate serVIS that meet the needs of the local community and others who attend the Masjid., The reliefof povety- and The provision of facilities, either directly or in partnership with other appropriate organisations. in the interest of social welfare. reoreation and leisure to improve the quality of life of local people. Public benefit Taking into consideration our purpose and objeth.ves and in conjuncti)n with the guidance Gontained In the Charity Commission's general guidance on public benefit. we have concluded.. That the aims and work done give identffiable benefi15 to the local community and both directly and indirectly to indniiduals in need.. That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay.. and That there is no detriment or harm arising from the aims or activities described above. Page 1
Dar Ul Uloom Islamia Rizwia (Bralawall Report of the Trustees forthe Year Ended 31 March 2022 ACHIEVEMENT AND PERFORMANCE Charitable activities Lifting of the National Lockdown: Covid 19 The year to 31 March 2021 saw a level of disruption that was unprecedented. Every aspect of our lives was affected by the pandemic and the work of the Masjid was not exempted. Across the country, mosques and other charities providing religious setvices were asked lo play their part in supporting the national cause to prevent unnecessary hospitaSisation or death and reduce the transmission of the viius. Beeen March and July 2020, the charity was for the first time required to close its doors, including those of the Masjid. The closure of the Masjid in Ramadan 2020 was a challenge for our ¢ongregation and a time of sadness. Our beneficiaries missed out on the congregational voluntary night tiTHe prayers duting the blessed month and the Eid ul-Fitr prayers at the end. However, with a reduced capacity and other measures still in place. the Charity used the open outdoor space of the car park as an extension of the Masjid to accommodate more of the cornmunity for the Eid ul-Adha prayers in the summer of 2020. In February 2021, the UK Govemment published ils 4-step plan lo ease lockdown restrictions in England. Faith based charities and places of worship were allowed to open their doors with social distancing and other preventative measures being in pla. By Ramadan 2021, there was absolute elation as the Charity was able to open its doors to approximately 500 worshipets every night in accordance lo government guidelines. allowing them lo partake in the night lime prayers that they had so mu¢h longed for. 11 was not until the summer of 2021 when the national lockdown restrictions were eased following a reduction in the number of covid cases, that the Masjid was really able to open up for other services. in particular allowing the community lo come together to bereave the loss of their loved ones. By the winter of 2021, greater numbers from the community had started lo come together in the Masjid to Pray and access other SeiceS allowing the charity to begin to return to some form of normality. Our voluntsers We would like to take this opportunity once again to recognise and appreciate the immense efft)rt and sacTifice of our dedicated and loyal volunteers. who have helped throughout these challenging times. These exceptional people stayed wrth us through thick and thin despite the pandemie and the challenges experienced within the organisation. Mosquelmasjid: The facilitation of the S daily prayers, including the Friday prayer Eid ul-Fitr and Eid ul-Adha, utilising the car park lo ensure numbers were catered for with social distancing. A range of religious support services for the families who have lost loved ones throughoul the year Islamic Counselling Services Weddings, in accordance with Islamic18W The facilitation of Ramadan and the recilalion of the Holy Qur'an. in full The opening of the Ghamkol Sharif Reference Library Imth the removal of a blanket lockdown, and restrictions eased for the Mosque, the Charity embarked upon a number of additional communal events throughout the year, predominately in English. Page 2
Dar Ul Uloom Islamia Rizwla (Bralawail Report of the Trustees forthe Year Ended 31 March 2022 These included.. A Prayer for Palestine Monthly gatherings (throughout the yearl of Sayyiduna Shaykh Abdul Qadir Jilani 1r.al Vveekly lectures on Al-Adab Al-mufrad Weekly lectures on 'A Journey Through the Quran in Preparation for Ramadan, The Life and Legacy ofThe Grand Master Imam Ahmed Raza Khan Ir.a.I The 12 nights of Rabl, Ul-Awwal Khalam e-Khawajgan and Dhikr gatherings every week The Importance of Reading in Times of Illiteracy The Sufi Tradib"on of Serving Humanlty The Night of Israa, and Mi'raaj Journey lo the Lord of Power Spiritual Dimensions of Fasting The Fiqh of Fasting The Night of Deliverance, Laylatul Bara'ah 40 Hadith on the Virtues of the Qurfan Recital of Qaseedah Badariyya Weekly recital of Qasida al-Burda Sharif Sisterfs Gatherings With the opening of the Madrasah and the engagement of mothers, the Charity embarked upon a number of regular services for women only. These included weekly and monthly events. Such as.. Roadmap for a Productive Ramadan Mawlid An-Nabi Comrnunity ProSects: Post 16 education for local women in collaboration with South and City College Birmingham Supported housing provision for vulnerable adults in collaboration with Trinity Housing. which came to an end in early 2022. Working with local community organisations and residents in three key areas.. Small Heath Park, with a focus on initiating the renovation of the Small Heath Park Lodge, the Small Heath Swimming Baths, and working on improvements for bereavement related Services with public sector bodies. The Clty of Knowledge Academy. regrstered charity number: 11373421'CK'I During the year there was a Contractual dispute with CK. Fundraislng activities The Charity does not carry out any off-site fund-raising. Members of our congregationlbenefici8ries make voluntary donations on sile, either in the office or during prayers via a sealed bucket collection or donate electronically via the donabon kiosk or one of the safes Ioc8ted on the Mosque premises. Page 3
Dar Ul Uloom Islamia Rizwia {Bralawail Report of the Trustees for the Year Ended 31 March 2022 FINANCIAL REVIEW Financial positlon During the financial year, CJMGS delivered a financial deficit of £515,43912020121.' deficit of £247,328). In line with the Charity's preliminary Strategic Statement, published September 2021, the Trustees, have utilised resources to bring to fruition the initial stages of the works tdentified. This includes the development of a professional webs(te that includes a wide range of tools and features to better engage with our congregation and beneficiaries. We also undertook capital works. focused on refurbishments lo the Community Hub, the Masjid, and the Madrasah. The Masjid has new, better insulated windows, as well as new reference library. Capital improvements have also started in the Madrasah. to allow both staff and children, an enhanced work and learning experience. The capital works in the Community Hub represent the first phase of development to allow the Charity to focus on new services lo the wide community. in partnership with other stakeholders. There has also been an increase in the number of stsff the Charity employs. Legal Support The Charity incurred substantial legal costs in the year ended March 2022. These costs arose from the need for continuing advi in relalKJn to.. la) the challenges referred to elsewhere in this report and the ongoing work required to resolve continuing challenges las reported in previous years). including.. the dispute with individuals seeking to interfere with the management of the Masjid.. responding lo the decision of individuals lo assert rights in the name and logo of the Masjid - including registering the name and logo as trade marks., addressing queries raised by the Charity Commission and the ongoing regulatory engagement,. Ibl the Board's decision to seek specialist support with the work done by the trustees and the leadership team to review and Improve the governance of the charity and a number of operational policies and procedures, taking into account the guidance received from the Charity Commission. These factors continued through the year ended March 2022 and are expected to continue through to March 2024. The Board will report as appropriate in the accounts and reports for those years. Restrictions and Investment Powers The Trust Deed authorises investment of surplus monies not immediately required, subject only to conditions and consents imposed by law. Reserves policy The Trustee Board reviews and updates its reserves policy annually lo ensure its compliance with Charity Commission best practice. This requires reserves lo be available to cover futu contingencies and liabilities. The Reserves Policy requires at least six months. ordinary operating expenditure to be held as unrestricted funds. equating to £275,000 at budgeted expenditure levels. The unrestricted general free reserves at 31 March 2022 were £2,292,815 {2021'. £2,849,371 as restated}. Free reserves are reserves which do not include restricted funds, designated funds of £7.038,001 or funds tied up in the other fixed assets of £55,554. Restricted reserves al the end of the year amount to £18,33412021.' £7,332 as restated}. Page 4
Dar Ul Uloom Islamia Rizwia (Bralawai Report of the Trustees forthe Year Ended 31 March 2022 Going concern The Charity reported a cash oufflow of £286,368 for the year. It has available bank balances of £2,214,976 al the 31 March 2022. After making further appropriate enquiries and despite the ongoing Covid-19 restrictions, the Iruslees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the elve months from the date of signing this report. For this reason, they continue lo adopt the going concern basis in preparing the financial statements. LOOKING AHEAD As the Charity is in a Statutory Inquiry, with the appointment of an Interim Manager, the immediate focus will be lo ensure the implementation of the advice, guidance and the agreed Action Plan with the Commission, as well as other areas of concern that have been identified. Once that has been completed, the Board anticipates resuming work on a number of strategic projects, including working in collaboration with local organisalions to help support lo local people to meet the challenges arising from the cost of living crisis. improvement lo local facilities and the environment. STRUCTURE. GOVERNANCE AND MANAGEMENT Governing document The Charity, which h8s the working name of 'Central Jamia Mosque Ghamkol Sharif ICJMGSI, is an unincorporated charity established by Deed of Trust. dated 16 January 1986 and registered with the Charity Commission on 18 April 1986. The Deed of Trust was amended by a resolution made under s280 of the Charities Act 2011 on 29 November 2019. Idgntified concems There have been a number of historical allegations against staff and trustees relating to the use of social media and alleged misappropriation of funds. These have been widely reported in the media. including social media. The Charity Commission has been informed, and these issues form part of the Statutory Inquiry. Each allegation is taken very seriously by the trustees of the Charity and the staff team. We are actively investigating these and reF)Orting our findings to the Charity Commission and releasing public statements if appropriate. lthere matters have been reported to the police to dale the police have informed us that the allegations hold no substance or evidence lo support the allegations and therefore. they will not be taking any fvrther action. Regardless of the fact the allegations are unfounded, there has been reputational damage., which we are systematically addressing with each and every allegation brought to our attention. As reported previously, the Charity Commission, in June 2019. contacted the Charity about various iegulatory concerns. After correspondence with the Charity Commission. the Board of Trustees was offered Regulatory Advice in early 2020. The Charity Commission opened a Regulatory Compliance Case in August 2021 in relation lo concem5 that the advice had not been fully implemented. which resu51ed in the Charity Commission opening a Stalulory Inquiry in November 2021. The Board of Trustees is actively engaged with the Charity Commission to address the concerns identified. Page 5
Dar Ul Uloom Islamia Rizwia {Bralawai) Report of the Trustees forthe Year Ended 31 MaTch 2022 The Board accepts that it was responsible to ensure the implementation of advice received from the Commission. A number of circumstances outside the control of the Charity made this more difficult than it would otherwise have been.. The composition of the Board changed. with trustees resigning or being removed.. A very18rge volume of e-mail correspondence, close to thousand messages, addressed to trustees, staff and others. The vast majority of these e-mails are from unverified accounts using pseudonyms and when approached to speak direcuy with the Charity to consider their conGems, none have come forward to date,. The use of pseudonymous social media accounts to criticise the Charity and make unfounded allegations has also been a concem in the year at hand., The time and resources deployed to investigate every allegation. We are grateful to our accountants and auditors {Locke Williams Associates LLP) who have helped us cornplete the annual return and accounts for previous years, and ensured our legal obligation to file this report and accounts on time is met. We wll work with them to make continuing improvements in this area. We are glad to report the Charity's accounts for year ending 31 March 2022 are not qualified. This is due to the improvements in policies and procedures that have been implemented and the ¢hanges made to the historical method utilised to record the reIpl of cash donations. The Charity receives cash donations as follows.. 1) Friday Jumm'ah prayer and events ¢olledion$ via bucket collection.. 21 Donors deposibng cash into one of several safes located throughout the Mosque., 31 Donors handing cash into the office., 41 Parents paying their Madrasah (supplementary school) fees (with the new changes introduced most of these fees are now paid by electronic means). Tradg Mark case The Trustees of the Charity ICJMGSI are delighted that the Trade Mark Registy Court for the UK Intellectual Property Office has ruled overwhelming in our favour on all 3 consolidated proceedings. A summary of the Trade Mark decision can be found on the link below- Intellectual Pro ert Office - Decisions ov. uk The full de¢ision can be accessed from this link.. Trade Mark Inter Partes Decision 01556122 ovuk We are grateful that the Trade Mark Registry has recognised what we always stated to be the truth. We pursued these proceedings with regret and would Prefer to have avoided the considerable expense involved, financbally and in time, energy and disruption lo the work of the charity. This regret is shared by the Trustees, members of our congregation, benefi¢iaries, followers of Gharnkol Sharif and stakeholders across the country and intemationally, from the headquarters of the Movement, the founders of Ghamkol Sharif, Kohat. Pakistan. Page 6
Dar Ul Uloom Islamia Rizwia (Bralawail Report of the Trustees for the Year Ended 31 March 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Trade Mark Case - continued This regret is heightened, because the grandson (Junaid Akhtarl. ofbne of the founding Iruslees, affectionately known as Sufi Sahib, was found by the Registry to have aeted in bad faith. The standard of proof required, to act in bad faith is very high.. in that he acted dishonestly, his intention wa$ to mislead, his behaviour fell short of what is an acceptable stsndard. and implied a dishonest slate of mind and or intention The Charity, is now in the process of enforcing this ruling with those who using the name Ghamkol Sharif. wilhoul permission. Recrultment and appointment of new trustees Role descriptions, where applicable, are issued to each Trustee and a full induction is given setting out the obligations of a Trustee. Organlsational structure The Charity is principally based in Birmingham, UK but works with organisalions across the United Kingdom. The Trustees are responsible for the governance of the Charity, and the day-to-day management is performed by the Trustees and other volunteers. as well as some paid staff for adminislralion of the Mosque and teachers for the Madrassa School. Key management rernuneration The Iruslees consider the Board of Trustees and the Manager as comprising the senior management personnel of the charity in charge of directing and controlling the charity and running and operating the Charity, with the principal day-lo-day administration and management responsibilities with the Manager of the Charity. All Trustees give their lime freely and no Trustee remuneration was paid in Ihe year. Any trustee expenses are detailed in note 8 to the accounts. The pay of the charity's manager is in line with natlonal minimum wage may be increased in accordance with average earnings index. Related parties The is a related party interest. concerning Golden Hillock Islamie Funerals Ltd Icompany number 12708494). One of the company directors, Mohammed Konane, is also a Trustee of the Charity. The funeral service company pays an annual rent of £4,800 for premises rented from the Charity and if possible a charitable donab'on to the Charity. This related party interest. has since come lo an end lon 3 January 2023), due lo the dissolution of the Company. Page 7
Dar Ul Uloom Islamia Rizwia (Bralawal) Report of the Trustees for the Year Ended 31 March 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Rlsk management The Iruslees actively review the major risks which the charity faces on a regular basis, in particular those relating to its operations and finances. They are satisfied that systems are in place to mitigate the charity's exposure to the major risks. The risk management slfategy Gomprises-. A regular review of the risks which the Charity may face., The adequacy of current systems and procedures to mTtigate those risks identified in the strategy,. and The implementation of procedures designed to minimise any potential risk on the Charity should any of those risks malerialise. The strategy is reviewed regulady by the Trustees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 517381 Principal address Central Jamia M05que Ghamkol Sharif 150 Golden Hillock Road Small Heath BIRMINGHAM B10 ODX Trustees Mr Ahsan Ul-Haq. Mr Abdul Khaliq Mr Zahir Abbas Mr AsifQuayum Mr Mohammed Konane Mr Jamil Bashir The following truste8s land former trustees) hold tille lo property belonging to the ¢harity as custodian or nominee.. Trustees.. MrAhs8n Ul-Haq Mr Abdul Khaliq Mr Zahir Abbas MrAsif Quayum Mr Jamil 88shir Mr Mohammed Konane Fomier Trustees" Al Hal Shaikh Muhammad Abdullah Khan Al-Haj Fazal Illahi Mohammad Saleem Akhtar Al Hal Talib Hussain Auditors Locke Williams Associates LLP Chartered Accountants Registered Auditors clo Blackthorn House st Pauls Square Birmingham West Midland5 B3 1RL Bankers United Bank UK Page 8
Dar Ul Uloom Islamia Rizwia {Bralawall Report of the Trustees for the Year Ended 31 March 2022 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} including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. The law applicable lo 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 stale of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required lo select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charity SORP.. make judgements and estimates that are asonable and prudent., stale whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Iruslees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any lime the financial position of the charity and to enable them to ensure that the financial statements cornply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the board of trustees on 27 January 2023 and signed on its behaif by.. MrAhsan UI-H q - Trustee Page 9
WILLIAMS ASSOCIATES LLP Report of the Independent Auditors to the Trustees of Dar Ul Uloom Islamia Rizwia (Bralawail Opinion We have audited the financial statements of Dar Ul Uloom Islamia Rizwia {Bralawail {Ihe 'charity'l for the year ended 31 March 2022 which comprise the Statement of Financial Activities. the Balance Sheet, the Cash Flow Statement and notes lo 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 Practkce), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,, In our opinion the financial slatemenls.. give a true and fair view ofthe stale of the charity'5 affairs as at 31 March 2022 and of its incoming resources and application of resources. for the year then ended., have been properly prepared in accordance with United Kingdorn Generally Accepted Accounting Practi, including Financial Reporting Standard 102 'The FinanGial Reporting Slandard applicable in the UK and Republic of Ireland,; and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance wlh International Standards on Auditing {UK} (ISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit ofthe 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 basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going cOnM 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 lating 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 e1ve months from when the financial statements a authorised for issue. Our responsibllities and the responsibilities of the trustees with respect to going concern are descrlbed in the relevant sections of this report. Other Infomiatlon The Iruslees 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 informatlon and, except lo the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial statements, our SponsIbl11ty is to read the other informatlon and. in doing so, consider whether the other information is materially inconsistent with the financi81 statements or our knowledge obtained in the audit or othemise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are qUIred to determine whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstslement of this other information. we are required lo report that fact. We have nothing lo report in Ihls regard. Page 10
WILLIAMS ASSOCIATES LLP Report of the Independent Audltors to the Trustees of Dar Ul Uloom Islamia Rizwia (Bralawai) Mattevs on which V are required to report by exception We have nothing lo report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us lo report lo you if. in our opinion. the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns.. or we have not received all the information and explanations we require for our audit. Responsibilities of tsustees As exp12ined more fully in the Statement of Trustees, Responsibilities, the trustees are responslble for the preparation of the financial statements which give a true and fair view. and for such inlemal control as the trustees determine is necessary lo 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 lo continue as a going concern. disclosing, as applicable, mattets related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to ¢ease operations, or have no realistic alternative but lo 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 accordan with the Act and relevant regul81ions made or having effect Ihereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, 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 {UKI will always detect a material misstatement when it exists. Misslatemenls can arise frorn 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 instanS 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 procedure$ are capable of detecting iriegularittes, including fraud is detailed below.. We gained an understanding of the leg81 and regulatory tramework applicable lo the charity and the sector in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. Vve designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud Is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealmenl by, for example, forgery or Intentional misrepresentabons, or through collusion. We focussed on laws and regulations which could gNe rise to a material misstatement in the financial Statements, includino. but not limited to, the Charities Act 2011. the Charities SORP IFRS 1021 and UK lax legislation. Our tests included agreeing the financial statement disclosures lo underlying supporting documentation, enquiries with management. trustees and enquiries of third parties, where appropriate. Page 11
WILLIAMS ASSOCIATES LLP Report of the Independent Audltors to the Trustees of Dar Ul Uloom Islamia Rlzwla (Bralawail As in all our audits, we also addressed the risk of management override of internal controls. including testing journals and checking the authorisalion of expenditure as part of our substantive testing, using analytical review to identify any significant or unusual transactions and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud. Th8re are inherent limitations in the audit pr¢xedures described above and, the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial slalements, the less likely we would become aware of it. We did not identify any key audit mallers relating to Irregularities, including fraud. A further description of our tesponsibililies for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibililies. This description forms part of our Report of the Independent Auditors. 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 lo slate lo 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 opinK)ns we have formed. Locke Williams Associates LLP Chartered Accountants Registered Auditors clo Blacklhom House St Pauls Square Birmingham West Midlands B3 1RL Dale.. 27 January 2023 TRUSTID ACCOUNTING SOLUTIONS ICAEW CHARTERED ACCOUNTANTS Page 12 info@lo¢kewilliams.¢om www.lo¢kewilliams.¢om
Dar Ul Uloom Islamia Rizwia {Bralawai) Statement of Flnancial Activities for the Year Ended 31 March 2022 31.3.22 Total funds 31.3.21 Total funds as restated Unrestricted Restricted funds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 156,252 11,002 167.254 69,795 Investment income 200.663 200.663 213,207 Total 356 915 367.917 283 002 EXPENDITURE ON Charitable activities Charitable activities 883 356 883.356 530,330 NET INCOMEIIEXPENDITURE} (526,441 11,002 1515h39) {247,328} RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment 9,920,143 9,920.143 10,167,471 10 As restated ,912,811 7,332 9.920.143 10,167,471 TOTAL FUNDS CARRIED FORWARD 9.386.370 18.334 9 404 704 9.920,143 CONTINUING OPERATIONS All income and expenditure has arisen from ¢onllnuing activities. The notes form part of these financlal slatements Page 13
Dar Ul Uloom Islamla Rlzwia {Bralawail Balance Sheet 31 March 2022 31.3.22 31.3.21 as restated Notes FIXED ASSETS Tangible assets Investment propety 12 13 3,097,967 3,995,588 3,067,852 3 995.588 7.093.555 7,063,440 CURRENT ASSETS Debtors Cash at bank and in hand 14 15 192,214 2 214976 407,270 2 501,344 2,407,190 2,908.614 CREDITORS Amounts falling due within one year 16 196,0411 151,9111 NET CURRENT ASSETS 2311149 2 856 703 TOTAL ASSETS LESS CURRENT LIABILITIES 9,404,704 9.920.143 NET ASSETS 9,404,704 9,920,143 FUNDS Unreslricled funds.. General fund Freehokl buildings Investment property 18 2,348,369 3,042,413 3 995,588 2,874,810 3.042.413 3.995.588 9,386,370 9.912.811 Restricted funds 18,334 7,332 TOTAL FUNDS 9.404.704 9.920,143 The financial statements were approved by the Board of Trustees and authorised for Issue on 27 January 2023 and were signed on its behalf by.. Mr Zahir Abbas - rustee Mr Ahsan Ul-Haq - Trustee The notes fomi part of these financial statements Page 14
Dar Ul Uloom Islamla Rizwia (Bralawai Cash Flow Statement for the Year Ended 31 March 2022 31.3.22 31.3.21 as reststed Notes Cash flows from operating activltles Cash generated from operations 22 246 740} 503,573) Net cash used in operating activities 246,7401 503.573} Cash flows from investing activities Purchase of tsngible fixed assets Return on investment 139,7961 168 177 Net cash (used inllprovided by investing activities 39.6281 177 Change in cash and cash equlvalents in the reporting period Cash and cash equivalents atthe beglnnlng of the reporting period {286,368) {503,3961 2.501.344 3,004,740 Cash and cash equfvalents at the end of the reporting perlod 2.214 976 2,501.344 The notes form part of these financial statements Page 15
Dar Ul Uloom Islamia Rizwia IBralawal} Notes to the Financlal Statements forthe Year Ended 31 March 2022 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordan with the Charities SORP IFRS 1021 'Accounting and Reporting by Charities-. Staternent of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepad under the historical cost convention. as modified by the revaluation of certain assets. The financial $18tements a prepared in Sterling and rounded lo the nearosl £1. Critical accounting judgements and key sources of estimation uncertainty In preparing the Financial Slatemenls, management is required to make estimates and assumptions which affect reported income. expenses, assets. liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of eslimales, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates. Investment ro The trustees havo revalued the propety to fair value at the year end. They have based their valuation on a valuation carried out by Emma Hughes MRICS of Sanderson WealheTall on 01 April 2020. The trLtslees consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies above. Incorng All income is recognised in the Slalement of Financial Activities once the chaTity ha5 entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is lo be expended in a future period. Voluntary income is received by way of grants, donations and gifts, including gift aid income where applicable. and is included in full in the statement of financial activities when receivable. Income from grants, where related lo performance and specific deliverables, are accounted for when il is probable that the income will be received and the amount Gan be measured reliably and is not deferred. Donated services and facilities are included at the value to the charity where this can be quantified and is malertal. The value of services provided by volunteers has not been included in these accounts. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditu, il is probable that a transfer of economic benefits will be required in setuement 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 lo the category. Where costs cannot be directly allributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Charitable expenditure compnses those costs incurred by the charity in the delivery of its activrties and services for ils beneficiaries. The primary functional activity of the charity is the running of the Thrtosque and Madrassa school. It includes both costs that can be allocated directly lo this activity and those costs of an indirect nature necessary to support them. Page 16
Dar Ul Uloom Islamla Rizwia IBra5avMI Notes to the Financlal Statements - continued forthe Year Ended 31 March 2022 ACCOUNTING POLICIES- continued Tangible fixed assets Depreciation is provided at the following annual rates in order lo write off each asset over ils estimated useful life. Freehold property Fumiture, fittings and equipment Motor vehicles not provided 20Qh on cost 20¥0 on cost The Trustees consider that freehold properties are maintained in such a slate of repairthat their residual value is at least equal lo their net book value. As a result, the corresponding depreciation would not be material and therefore. is not charged in the slalement of activities. The Trustees perform annual impairment reviews in accordance with the requirements of FRS 102 to ensure that the carrying value is not higher than the recoverable amount. All assets costing £500 or more are ¢aprtalised. Invgstment property Investment propety is shown at most recent valuation. Any aggregate surplus or deficsl arising from changes in fair value is recognised in the Statement of Financial Activities. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued al the amount prepaid nel of any trade discounts due. Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Any cash held in deposits with a longer maturity are held as long-term investments. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amoLJnt due to settle the obligation can be measured or eslimaled reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade disGounts due. Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation lax purposes. Accordingly, the charity is potentially exempl from laxalion in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the cooration Tax Act 2020 or Section 256 ofthe Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively lo charitable purposes. 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 reslricled purposes within the objects of the charrty. Restrictions arise when specified by Ihe donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial stalemenls. Pension costs and other post-retirement beneftts The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged lo the Statement of Financial Activities in the period lo whieh they relate. Differences beeern contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. Page 17
Dar Ul Uloom Islamia Rizwia {BralaTNail Notes to the Financial Ststements - continued forthe Year Ended 31 March 2022 DONATIONS AND LEGACIES 31.3.22 31.3.21 as restated Donations Grants 167.254 64,896 167,254 69,795 Grants reived, included in the above, are as follows.. 31.3.22 31.3.21 as restated HMRC - Coronavirus Job Retention Scheme 4,899 INvESTmEr INCOME 31.3.22 31.3.21 as restaled Rents received Return on investment 200,495 168 213,030 177 200.663 213,207 CHARITABLE ACTIVITIES COSTS Direct Costs (see note 5} Support costs Isee note 61 Totals Charitable activities 726,301 157 055 883,356 DIRECT COSTS OF CHARITABLE ACTIVITIES 31.3.22 31.3.21 as restated Staff costs Water and utilities Repairs. renewals and cleaning Health and safety Rent 8uilding projects Sundries Insurance Printing, stationery and postsge Telephone. intemel and IT Equipment 348,273 33,995 34,663 5,388 5,950 153,600 44,846 11,991 11,350 42,931 162,030 32,102 98,479 4,266 12,026 20,343 5,233 3,997 Carried forward 692,987 349,014 Page 18
Dar Ul Uloom Islamla Rizwio {Bralawail Notes to the Flnanclal Statements - continued for the Year Ended 31 March 2022 DIRECT COSTS OF CHARITABLE ACTIVITIES - contlnued 31.3.22 31.3.21 as reststed Brought forward City of Knowledge Bank charges Donations Books and literature Depreciation 692.987 349,014 65,042 85 1,129 86 2.071 21,477 9,681 8,319 726.301 423,589 SUPPORT COSTS Governance costs Charitable actsvities 157,055 Support costs, included in the above, are as follows= 31.3.22 31.3.21 as restated Total activities Charitable activities Auditors, remuneration Auditors, remuneration for non-audit work other accountancy fees Legal and consultancy fees HR advice 3,600 3,600 960 1,943 100,238 708 150.058 2.689 157 055 106,741 TRUSTEES, REMUNERATION AND BENEFSTS There were no trustees, remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021. TTUStees' expenses During the year, two trustees were reimbursed expenses incurred on behalf of the charty, a total of £630 {2020 £1,757). Page 19
Dar Ul Uloom Islamla Rlzwla IBralawal} Notes to the Flnanclal Statements - continued forthe Year Ended 31 March 2022 STAFF COSTS 31.3.22 31.3.21 as reslaled Wages and salaiies Social security costs Other pension costs 329,818 16,510 1,945 156,096 4,442 1,492 348 273 162.030 The average monthly number of employee$ on the payroll during the year was as follows". 31.3.22 31.321 as restated Adminislralion and support stsff Charitable actsvities stsff 14 14 No employees received emoluments in ex$$ of £60,000. The full lime equivalent staff as at 31 March 2022 was 16.65. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted funds funds Total funds as restated INCOME AND ENDOWMENTS FROM Donations and legacies 62.463 7,332 69,795 Investment income 213,207 213.207 Total 275,670 7.332 283,002 EXPENDITURE ON Charltable activities Charitsble activilles 530,330 530,330 NET INCOMEI{EXPENDITUREI {254,660} 7,332 1247.3281 RECONCILIATION OF FUNDS Total funds brought fonmard 10,167,471 10,167.471 TOTAL FUNDS CARRIED FORWARD 9,912.811 7,332 9,920,143 Page 20
Dar Ul Uloom Islamia Rizwia (Bralawail Notes to the Financial Statements - contlnued for the Year Ended 31 March 2022 10. PRIOR YEAR ADJUSTMENT The prior yearfs financial statements have been amended, to reflect don8tion$ received that were for reslri¢ted purposes. 11. VOLUNTEERS The Trustee Board recognise the tremendous contribution made by the charity's volunteers without which the service could not operate. We have had 7 regularly active volunteers, not including trustees. over the year. who beeen them contributed the equivalent of 0.75 full time equivalent staff. 12. TANGIBLE FIXED ASSETS Furniture. fittings and equipment Freehold property Motor vehicles Totals COST Al 1 April 2021 Additions 3,042,413 205.844 39.796 21.644 3,269,901 39,796 At 31 March 2022 3,042.413 245 640 21.644 3 309.697 DEPRECIATION At 1 April 2021 Charge for year 180,405 9,681 21,644 202.049 9.681 At 31 March 2022 190,086 21,644 211,730 NET BOOK VALUE At 31 March 2022 3,042,413 55.554 3,097.967 At 31 March 2021 3,042 413 25.439 3,067,852 13. INVESTMENT PROPERTY FAIR VALUE At 1 April 2021 and 31 March 2022 3.995 588 NET BOOK VALUE Al 31 March 2022 3.995,588 At 31 March 2021 3,995,588 The investment property was revalued by the trustees at the reporting date to ils expected fair value at the lime based on a valuation carried out on 1 April 2020 by Emma Hughes MRICS of Sanderson Weatherall. The trustees are of the opinion that the fair value has not materially changed form the date of that report. Page 21
Dar Ul Uloorn Islamia Rizwia {Bralawail Notes to the Financial Statements - continued for the Year Ended 31 March 2022 14. DEBTORS 31.3.22 31.3.21 as restated Amounts falling due within one year_. Trade debtors other debtors Prepayments and accrued income 18,000 500 93,512 18,000 129,950 168,618 112,012 316,568 Amounts falling due after more than one year.. Trade debtors 80,202 90,702 Aggregate amounts 192.214 407.270 15. CASH AT BANK AND IN HAND General fund Filrana Zakat Cash in hand Bank current accounts Bank deposit accounts 1.330 1,839.362 355,950 7,325 6,299 Total 2.196,642 7,325 6,299 31.3.22 31.3.21 as restated Tol81 funds Hospital fund Total funds Cash in hand Bank current accounts Bank deposit accounts 1.330 1,857.696 355.950 4,710 2,145,562 355.782 Total 4.710 2 214.976 2.501,344 Page 22
Dar Ul Uloom Islamla Rlzwia (Bralawai} Notes to the Financial Statements - continued forthe Year Ended 31 March 2022 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.22 31.3.21 as reslaled Trade creditors Social security and other taxes Other creditors Accruals and deferred income 24.005 43.005 25.431 3.600 4,353 25,075 7,723 14,760 96.041 51.911 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31.3.22 31.3.21 as restated Total funds Unrestricted Reslricled funds funds Total funds Fixed assets Investments Current assets Current liabilities 3,097,967 3,995.588 2.388.856 3,097,967 3,995,588 2.407,190 96.0411 3.067.852 3.995.588 2,908,614 51.911} 18,334 9 386,370 18.334 9 404 704 9,920,143 18. MOVEMENT IN FUNDS Prior year adjustment Net movement in funds Al 31.3.22 Al 1.4.21 Unrestricted funds General fvn Freehold buildings Investment property 2,882,142 3,042,413 3,995,588 {7.332) (526,4411 2.348,369 3.042,413 3.995.588 9,920,143 17,3321 1526,4411 9,386,370 Restricted funds Fitrana Zakat Hospital fund 693 1.929 4.710 6,632 4,370 7,325 6,299 4.710 7.332 11,002 TOTAL FUNDS 9.920.143 515 4391 9 404 704 Page 23
Dar Ul Uloom Islarnia Rizwia (Bralawail Notes to the Financial Statements - conttnued for the Year Ended 31 March 2022 18. MOVEMENT IN FUNDS- continued Net movement in funds, included in the atx)ve are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 356.915 (883,3561 1526,4411 Restricted funds Fitrana Zakat 6,632 4,370 6.632 4.370 11.002 11.002 TOTAL FUNDS 367,917 883 356) 515.4391 Comparatives for movement in funds Nel movement in funds At 31.3.21 Al 1.4.20 Unrestri¢ted fund$ General fund Freehold buildings Investment propety 3,129,470 3.042.413 3.995.588 {254,660} 2,874,810 3,042,413 3,995,588 10,167,471 (254.660) 9.912.811 Restricted funds Filrana Zakat Hospi181 fund 693 1,929 4.710 693 1.929 4.710 7.332 7.332 TOTAL FUNDS 10,167,471 247,328) 9,920,143 Comparats've net mvemenl in funds, included in the above are as follow5.. Incoming resources Resources expended Movement in funds Unrestrleted funds General fund 275,670 1530.3301 {254,6601 Restricted funds Fitrana Zakat Hospital fund 693 1,929 4.710 693 1,929 4,710 TOTAL FUNDS 283,002 530,330 247,328} Page 24
Dar Ul Uloom Islamia Rizwia (Bralawail Notes to the Financlal Statements - contlnued for the Year Ended 31 March 2022 18. MOVEMENT IN FUNDS- Gontinued Designated funds Designated funds have been sel up of £3.042,413 for the freehold properties of the Mosque and Education and £3,995,558 for the investment properties owned by the Charity as these amounts are not readily available to spend on the charitable obje¢ts of the Charity. Restricted fvnds Fitrana, also known as 'Sadaqat ul Fitr, is a compulsory form of charity for a Muslim, male or female. old or young. 11 is given on the day of Eid ul Filr, after a month of fasting, in order to expiate one's shortcomings in the month of Ramadan and also lo aid poor Muslims to celebrate Eid. Zakat is the third pillar of Islam. 11 requires Muslims to give 2.50A of their qualifying wealth each year lo help Muslims who need it across a range of categories. Zakat is both a spiritual duty and a vital part of the IslamiG social welfare system. Both funds are kept separate from the Charity's funds. as they are seen as an additional trust bestowed upon the Charity, with very specific Islamie rulings on their expenditure. Historically, the Charity, distributed these alms, internationally by a variety of means, as a means of fulfilling the religious obligations of members of the congregation of the Mosque in Birmingham. The Charity Commission has challenged the Charity's understanding of this obligation, and has staled that this activity is outside of the charitsble objects of the Charity. The Charity is working with the Commission, to come to agree how these funds can be applied in accordance with Islamic criteria and the objects of the charity. We are working lo achieve this urgently in view of the obligations (both religious and legal) which apply. The donations made by beneficiaries. for the Hospital Fund, lo be given to the Charity, Al-Hamd-O- Lillah IFoundationl Trust. charity number 1097091, will be passed onlo the charity, as soon as the Commission has agreed these funds can be released from our accounts. 19. EMPLOYEE BENEFIT OBLIGATIONS There is a defined contribution pension scheme for employees. The Charity has automatically enrolled eligible lobholders into a qualifying scheme in accordance with pensions legislation. The assets of the scheme are held separately from those of the company in an independently administered fund. The fund is a Group Personal Pension Scheme with NEST. The pension cost charge for the year represents contributions payable by the charity to the fund and amounted to £?,94512021.' £1.492}. At the year- end £447 was owed to the pension scheme12021.. £5261. 20. CONTINGENT LIABILITIES During the course of the preceding year a claim was made to the Employment Tribunal by an employee of the Charity, which has now been resolved. The trustees consider that providing any further information In this regard would be expected to seriously prejudice the position of the charity. 21. RELATED PARTY DISCLOSURES The related party relationship ceased as of 3 January 2023 when the Company was ofFicially dissolved. due lo an administrative error. The Board had previously notified the Charity Commission that il will be bringing this Servi in house as a trading subsidiary in the new financial year as part of the Charity's wider governance changes being discussed. The Directors of the Company, will be filing their accounts with Companies House in due course, and have agreed th81 all profits will be donated lo the Charity. Page 25
Dar Ul Uloom Islarnia Rizwla {Bralawall Notes to the Flnanclal Statements - continued forthe Year Ended 31 March 2022 22. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.3.22 31.3.21 as restated Net expenditure for the reporting period las per the Statement of Financial Activities) Adjustmenls for: Depreciation charges Return on investment Decreasellincreasel in debtors Increaselldecreasel in creditors (515,4391 {247,3281 9,681 11681 215,056 44.130 8,319 11771 1254,2591 10 128 Net cash used In operatlons 246,740) 503,573) ANALYSIS OF CHANGES IN NET FUNDS At 1.4.21 Cash flow At 31.3.22 Net cash Cash al bank and in hand 2 $01344 2 214 976 286 368 286 368 2,501,344 2 214,976 Total 2.501,344 286.368 2,214.976 FINANCIAL INSTRUMENTS The carrying amount for each category of financial instrument is as follows". 2022 2021 Financial assets measured at fair value through income and expenditure Investment properties 3,995.588 3.995,588 The net gains and net losses attributable to the charity's financial instruments are summarised as follows: The net gainlllossl recognised through net incomelexpenditure from financial assets measured al fair value (including changes in fair value) amounted to £nil12021 £nil)- Page 26