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2024-03-31-accounts

REGISTERED CHARITY NUMBER: 517381

Report of the Trustees and Financial Statements

for the Year Ended 31 March 2024

for Dar Ul Uloom Islamia Rizwia (Bralawai)

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

Dar Ul Uloom Islamia Rizwia (Bralawai)

Contents of the Financial Statements for the Year Ended 31 March 2024

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Financial Statements 14 to 24

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

The trustees present their report with the financial statements of the charity for the year ended 31 March 2024. 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 (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

As the Charity continues to improve its governance, it has agreed with the Charity Commission to change its current Trust Deed, that was approved in 1986, to a new Charitable Incorporated Organisation (CIO), which has been given approval. The new CIO was duly registered with the Charity Commission in late 2023. The Board of Trustees are in the process of implementing the transfer of the charity’s assets, liabilities and operations to the new CIO, which is planned to be completed in the coming period.

The objects of the Charity are to promote for the benefit of persons who profess the faith of Dar ul Uloom Islamia Rizwia (Bralawai) and who are resident in the city of Birmingham, by:

Charitable purpose

The purpose of the Charity is to help local people fulfil their personal potential both as people of faith and more generally. To help beneficiaries to reduce poverty on an individual basis, in their families and networks and in their local neighbourhoods.

The Charity will endeavour to fulfil this trust by the implementation of its objects (as above), in particular by:

Page 1

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

OBJECTIVES AND ACTIVITIES

Public benefit

Taking into consideration our purpose and objectives and in conjunction with the guidance contained in the Charity Commission's general guidance on public benefit, we have concluded:

Volunteers

We would like to take this opportunity once again to recognise and appreciate the immense effort and sacrifice of our dedicated and loyal volunteers, who have helped throughout the year.

ACHIEVEMENT AND PERFORMANCE Charitable activities Mosque/Masjid:

These services and programs are vital in ensuring that the Masjid functions not only as a place for prayer but also as a centre of spiritual learning, emotional support, and community bonding. They provide a comprehensive approach to religious life, focusing on worship, spiritual growth, family support, and community cohesion.

Sister's Gatherings

These gatherings aim to create a space for women to come together and build a sense of community and belonging, supporting each other in their personal and spiritual journeys. They offer opportunities for learning, sharing experiences and strengthening relationships between women in the local community.

Page 2

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

ACHIEVEMENT AND PERFORMANCE Community Projects:

The Charity's involvement in post-16 education for women, in partnership with South City College Birmingham, offers an important opportunity for personal and professional development. This collaboration provides a variety of benefits, such as:

Fundraising activities

The Charity does not carry out any off-site fund-raising. Members of our congregation/beneficiaries make voluntary donations on site, either in the office or during prayers via a sealed bucket collection or donate electronically via the donation kiosk or one of the safes located on the Mosque premises.

FINANCIAL REVIEW

Financial position

During the financial year, CJMGS delivered a financial deficit of £343,669 (2022/23: deficit of £534,021).

Legal Support

The Charity continued to incur substantial legal costs in the year ended March 2024. These costs arose from the need for continuing advice in relation to:

These factors continued through the year ended March 2024 and are expected to continue through to March 2025 to a lessor degree. The Board will report as appropriate in the accounts and reports for those years, Charity has started to reduce its legal costs in the year ended March 2025..

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 to ensure its compliance with Charity Commission best practice. This requires reserves to be available to cover future 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 2023 were £1,095,154 (2023: £1,419,935). Free reserves are reserves which do not include restricted funds, designated funds of £7,337,938 or funds tied up in the other fixed assets of £68,438..

Restricted reserves at the end of the year amount to £25,484 (2023: £25,244).

Page 3

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

Going concern

The Charity reported a cash outflow of £522,568 for the year. It has available bank balances of £787,504 at the 31 March 2024.

As noted in this report and further in note 1, because of the planned transfer to the newly incorporated CIO, the trustees consider it is no longer appropriate to prepare the financial statements on a going concern basis, given that this decision has been made. The trustees are confident that the planned for and orderly transition of the charity into the newly formed CIO will have no material effect on the charity’s assets or liabilities, or its ability to continue to operate under the new structure.

CHARITY COMMISSION

In October 2024, The Charity Commission concluded the Statutory Inquiry, which commenced in November 2021; and published a report of its findings on 17 October 2024, which can be found on the Charity Commission Register.

As a local community faith-based charity in a formal inquiry that lasted some 3-years, including a detailed secondary investigation by an Interim Manager, who was appointed by the Charity Commission in December 2022, was a challenging and exhausting period for all concerned. A lengthy inquiry of this calibre will result in reputational damage, including the loss of trust from our congregation and beneficiaries, as well as from our partners and stakeholders.

The reason for a 3-year inquiry was primarily based on numerous false accusations from our adversaries, who included trustees who were removed for not acting in the best interest of the charity, volunteers and staff who were dismissed, and an external contractor, whose services, and therefore payments were suspended due to a lack of due process. These false accusations included, misappropriation of funds, antisemitism, supporting terrorism, deriving personal benefit from the charity, and carrying out activities that were unconstitutional. These adversaries reported these false accusations extensively in unsubstantiated social media posts, and to mainstream newspaper media.

The Charity Commission and West Midlands Police found no such evidence to support these false allegations, however, the Charity Commission are duty bound to thoroughly investigate each, and every complaint or concern raised, even from anonymous or pseudonym accounts. We believe this was the primary reason for the 3-year inquiry.

We are grateful that the Inquiry has finally concluded, and extend our gratitude to the Charity Commission, in particular the lead investigator and the team for their professionalism, support and help during the Inquiry period. It has been a thoughtful period, in which we can assertively state that the outcome has been beneficial for the charity. We can now move forward to serve our congregation and beneficiaries in accordance with our new governing document.

The Board of Trustees accept the findings of the Inquiry and affirm their continued commitment to making improvements towards governance, administration, and management.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Charity, which has the working name of 'Central Jamia Mosque Ghamkol Sharif' (CJMGS), 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.

The Trustees have successfully registered, as advised by the Charity Commission a CIO, with the closure of the Inquiry the Board will now move to transferring from the Trust Deed to the CIO, in due course.

Recruitment and appointment of new trustees

No new Trustees were appointed during this period.

Page 4

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The Charity is principally based in Birmingham, UK but works with organisations 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 administration of the Mosque and teachers for the Madrassa School.

The Charity receives cash donations as follows:

Key management remuneration

The trustees 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-to-day administration and management responsibilities with the Manager of the Charity. All Trustees give their time freely and no Trustee remuneration was paid in the year. Any trustee expenses are detailed in note 8 to the accounts.

The pay of the charity's manager is in line with national minimum wage may be increased in accordance with average earnings index.

Related parties

There is a related party interest, Golden Hillock Islamic Funerals Ltd (company number 12708494). One of the company directors, Mohammed Konane, is also a Trustee of the Charity.

The Company is no longer trading, and will be dissolved in the coming period, and as previously reported any profits will be donated to the Charity, and a trading subsidiary will be opened.

Risk management

The trustees 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 strategy comprises:

ACKNOWLEDGEMENTS

We are deeply grateful to our accountants and auditors, Locke Williams Associates LLP, for their continued support in completing our annual return and accounts for the previous year. Their expertise has been instrumental in ensuring we meet our legal obligations by filing the report and accounts on time. We look forward to working with them to make further improvements in this area.

Page 5

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

517381

Principal address

Central Jamia Mosque Ghamkol Sharif 150 Golden Hillock Road Small Heath BIRMINGHAM B10 0DX

Trustees

Mr Ahsan Ul-Haq Mr Abdul Khaliq Mr Zahir Abbas Mr Asif Quayum Mr Mohammed Konane Mr Jamil Bashir

The following trustees (and former trustees) hold title to property belonging to the charity as custodian or nominee:

Trustees: Mr Ahsan Ul-Haq Mr Abdul Khaliq Mr Zahir Abbas Mr Asif Quayum Mr Jamil Bashir Mr Mohammed Konane

Former Trustees: Al Haj Shaikh Muhammad Abdullah Khan Al-Haj Fazal Illahi Mohammad Saleem Akhtar Al Haj Talib Hussain

Auditors

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

Bankers

United Bank UK

Page 6

Dar Ul Uloom Islamia Rizwia (Bralawai)

Report of the Trustees for the Year Ended 31 March 2024

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 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 the income and expenditure, of the 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 the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 29 January 2025 and signed on its behalf by:

----- Start of picture text -----
MrAhsan le. - Trustee
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Page 7

Report of the Independent Auditors to the Trustees of Dar Ul Uloom Islamia Rizwia (Bralawai)

Opinion

We have audited the financial statements of Dar Ul Uloom Islamia Rizwia (Bralawai) (the 'charity') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - financial statements prepared on a basis other than going concern

We draw attention to note 1 to the financial statements, which explains that the trustees plan to transfer the assets, liabilities and activities into a newly formed charitable incorporated organisation (CIO) and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in note 1. Our opinion is not modified in this respect of this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Page 8

Report of the Independent Auditors to the Trustees of Dar Ul Uloom Islamia Rizwia (Bralawai)

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the charity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the Charities Act 2011, the Charities SORP (FRS 102), the charity's governing document, UK tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees' Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence and evaluating any advice received from external advisors.

Page 9

Report of the Independent Auditors to the Trustees of Dar Ul Uloom Islamia Rizwia (Bralawai)

We also addressed the risk of management override of internal controls, including testing journals and checking the authorisation 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.

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.

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.

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

Date: 29 January 2025

Page 10

Dar Ul Uloom Islamia Rizwia (Bralawai)

Statement of Financial Activities for the Year Ended 31 March 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Education centre
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
5
Charitable activities
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
116,276
19,066
383,868
1,876
521,086
864,995
(343,909)
8,845,439
8,501,530		 Restricted
funds
£
240
-
-
-
240
-
240
25,244
**25,484 **		 31.3.24

Total
funds
£
116,516
19,066
383,868
1,876
521,326
864,995
(343,669)
8,870,683
8,527,014		 31.3.23
Total
funds
£
160,445
15,768
117,279
-
293,492
827,513
(534,021)
9,404,704
8,870,683

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 11

Dar Ul Uloom Islamia Rizwia (Bralawai)

Balance Sheet
31 March 2024
31.3.24 31.3.23
Notes £ £
FIXED ASSETS
Tangible assets 12 3,410,788 3,436,816
Investment property 13 3,995,588 3,995,588
7,406,376 7,432,404
CURRENT ASSETS
Debtors 14 424,940 182,161
Cash at bank and in hand **787,504 ** 1,310,072
1,212,444 1,492,233
CREDITORS
Amounts falling due within one year 15 (91,806) (53,954)
NET CURRENT ASSETS 1,120,638 1,438,279
TOTAL ASSETS LESS CURRENT
LIABILITIES 8,527,014 8,870,683
NET ASSETS 8,527,014 8,870,683
FUNDS 17
Unrestricted funds:
General fund 1,163,592 1,507,501
Freehold buildings 3,342,350 3,342,350
Investment property 3,995,588 3,995,588
8,501,530 8,845,439
Restricted funds **25,484 ** 25,244
TOTAL FUNDS 8,527,014 8,870,683

The financial statements were approved by the Board of Trustees and authorised for issue on 29 January 2025 and were signed on its behalf by: — = Mr Zahir‘: - Trustee

The notes form part of these financial statements

Page 12

Dar Ul Uloom Islamia Rizwia (Bralawai)

Cash Flow Statement for the Year Ended 31 March 2024

Notes
Cash flows from operating activities
Cash generated from operations
20
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by/(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		 31.3.24
£
(522,568)
(522,568)
-
-
-
(522,568)
1,310,072
**787,504 **		 31.3.23
£
(542,094)
(542,094)
(362,819)
9
(362,810)
(904,904)
2,214,976
1,310,072

The notes form part of these financial statements

Page 13

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements for the Year Ended 31 March 2024

1. 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 accordance with the Charities SORP (FRS 102) '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)', 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 prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements are prepared in Sterling and rounded to the nearest £1.

Financial statements not prepared on a going concern basis

As noted in the Report of the Trustees, the trustees have made the decision, as advised by the Charity Commission, to change its legal structure from the current Trust Deed to a new Charitable Incorporated Organisation (CIO). The new CIO, Central Jamia Mosque Ghamkol Sharif, was registered with the Charity Commission on 3 October 2023 with the registered number 1205036.

It is the intention of the trustees to transfer all the assets, liabilities and activities to this new CIO in the coming months, doing so in an organised and orderly manner so as not to disrupt any ongoing charitable activities as they do so.

As the date of transfer is expected to be within the next 12 months, the trustees consider it no longer appropriate to prepare the financial statements on a going concern basis, given that this decision has been made. The trustees consider it appropriate to keep all our stakeholders informed about the planned transfer to the new CIO, and the financial statements depart from accounting standards and the Charities SORP (FRS102) to the extent necessary to give a true and fair view.

In light of these events, the charity is not a going concern. In preparing these financial statements, the trustees have considered that the effect of the planned for and orderly transition of the charity into the newly formed CIO, is such that there has been no requirement to materially recognise nor restate any of the assets or liabilities from those as would have been presented were going concern appropriate.

Critical accounting judgements and key sources of estimation uncertainty

In preparing the Financial Statements, 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 estimates, 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 property - The trustees have revalued the property to fair value at the year end. They have based their valuation on a valuation carried out by Emma Hughes MRICS of Sanderson Weatherall on 01 April 2020. In making this estimation, it is the opinion of the trustees that the local catchment area has seen no significant change to its infrastructure or environment since 1 April 2020, and therefore the values of the properties are likely to be unchanged. This opinion is based on their local knowledge.

The trustees consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies above.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 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 to 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 to performance and specific deliverables, are accounted for when it is probable that the income will be received and the amount can be measured reliably and is not deferred.

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Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Income - continued

Donated services and facilities are included at the value to the charity where this can be quantified and is material. 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 expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. The primary functional activity of the charity is the running of the Mosque and Madrassa school. It includes both costs that can be allocated directly to this activity and those costs of an indirect nature necessary to support them.

Tangible fixed assets

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

Freehold property - not provided
Furniture, fittings and equipment - 20% on cost
Motor vehicles - 20% on cost

The Trustees consider that freehold properties are maintained in such a state of repair that their residual value is at least equal to their net book value. As a result, the corresponding depreciation would not be material and therefore, is not charged in the statement 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 capitalised.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit 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 at the amount prepaid net 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 party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 15

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2020 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to 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 restricted purposes within the objects of the charity. Restrictions arise when specified by the 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 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. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Rents received
Return on investment		 31.3.24
£
116,516
31.3.24
£
383,868
-
383,868		 31.3.23
£
160,445
31.3.23
£
117,270
9
117,279

Page 16

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

4.
INCOME FROM CHARITABLE ACTIVITIES
31.3.24
Activity
£
School income
Education centre
19,066
5.
CHARITABLE ACTIVITIES COSTS
Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
Charitable activities
720,483
144,512
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
31.3.24
£
Staff costs
397,550
Water & utilities
133,221
Repairs, renewals & cleaning
35,458
Rent
-
Building projects
34,631
Sundries
2,013
Insurance
32,352
Printing, stationery & postage
4,714
Telephone, internet and IT
11,934
Equipment
-
Bank charges
150
Catering etc
37,743
Donations
4,689
Books & literature
-
Training
-
Depreciation
26,028
720,483
7.
SUPPORT COSTS
Governance
Management
costs
£
£
Charitable activities
19,573
124,939		 31.3.23
£
15,768
Totals
£
864,995
31.3.23
£
414,871
49,471
43,647
5,950
32,000
33,096
27,165
7,004
18,532
8,575
487
13,100
11,159
2,150
1,393
23,970
692,570
Totals
£
144,512

Page 17

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

7. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Sundries
Auditors' remuneration
Other accountancy fees
Legal & consultancy fees
HR advice
Other professional fees
External trustee cost		 31.3.24
Charitable
activities
£
19,573
4,200
1,440
95,160
2,477
2,462
19,200
144,512		 31.3.23
Total
activities
£
-
3,960
570
127,936
2,477
-
-
134,943

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

During the year, no trustee was reimbursed expenses incurred on behalf of the charity. (2023 one trustee reimbursed £8,575).

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31.3.24
£
378,402
17,556
1,592
397,550		 31.3.23
£
393,234
20,208
1,429
414,871

The average monthly number of employees during the year was as follows:

31.3.24 31.3.23
Charitable activities staff 29 26

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

The full time equivalent staff as at 31 March 2024 was 16.5 (2023: 14).

Page 18

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
153,535
Charitable activities
Education centre
15,768
Investment income
117,279
Total
286,582
EXPENDITURE ON
Charitable activities
Charitable activities
827,513
NET INCOME/(EXPENDITURE)
(540,931)
RECONCILIATION OF FUNDS
Total funds brought forward
9,386,370
TOTAL FUNDS CARRIED FORWARD
8,845,439

Restricted
funds
£
6,910
-
-
6,910
-
6,910
18,334
25,244
Total
funds
£
160,445
15,768
117,279
293,492
827,513
(534,021)
9,404,704
8,870,683

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 27 regularly active volunteers, not including trustees, over the year, who between them contributed the equivalent of 2.5 full time equivalent staff.

12. TANGIBLE FIXED ASSETS

COST
At 1 April 2023 and 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023		 Freehold
property
£
3,342,350
-
-
-
3,342,350
3,342,350		 Furniture,
fittings

and

equipment
£
308,522
214,056
26,028
240,084
68,438
94,466		 Motor

vehicles
£
21,644
21,644
-
21,644
-
-
Totals
£
3,672,516
235,700
26,028
261,728
3,410,788
3,436,816

Page 19

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

13. INVESTMENT PROPERTY

£

INVESTMENT PROPERTY £
FAIR VALUE
At 1 April 2023
and 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023		 3,995,588
3,995,588
3,995,588

The investment properties were last valued externally in April 2020. It is the opinion of the trustees that the current fair value of these properties is not materially different from the April 2020 valuation.

14. DEBTORS

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Trade debtors
Aggregate amounts		 31.3.24
£
86,202
500
338,238
424,940
-
424,940		 31.3.23
£
18,720
500
94,739
113,959
68,202
182,161

Mr Mohammed Saleem Akhtar a Trustee of the Charity from 1986 to 2018, a total of 32 years, serving as a chairperson in these years; until his resignation in 2018, due to financial misappropriation for a sum of £119,202.00. This was reported to the Charity Commission, and the police. Mr. Akhtar agreed to repay the funds over several years and his son Mr. Kamran Saleem agreed to guarantee those repayments. Both duly entered into legal agreements with the Charity. Mr. Kamran Saleem stated that he would be paying the debt back, as opposed to his father, Mr. Kamran Saleem, and did so for a short period. However, repayments have not been made in accordance with the legal agreements, and the Charity has had no choice but to seek legal recourse to recover the funds. Mr. Kamran Saleem is now contesting the legitimacy of the signed legal agreements, supported by a previous trustee (Mr. Mohammed Zahid) who was removed (in April 2021) for not acting in the best interest of the Charity. The legal process is ongoing.

The amount of this debt outstanding at 31 March 2024 is £86,202.

Page 20

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Other creditors
Amounts due to related party
Accruals and deferred income		 31.3.24
£
15,160
18,156
28,859
25,431
4,200
91,806		 31.3.23
£
6,254
16,305
27,435
-
3,960
53,954

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Investments
Current assets
Current liabilities
17.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Freehold buildings
Investment property
Restricted funds
Fitrana
Zakat
Hospital fund
TOTAL FUNDS		 Unrestricted
funds
£
3,410,788
3,995,588
1,186,960
(91,806)
8,501,530		 Restricted
funds
£
-
-
25,484
-
25,484
At 1.4.23
£
1,507,501
3,342,350
3,995,588
8,845,439
13,995
6,539
4,710
25,244
8,870,683		 31.3.24

Total
funds
£
3,410,788
3,995,588
1,212,444
(91,806)
8,527,014
Net
movement

in funds
£
(343,909)
-
-
(343,909)
-
240
-
240
**(343,669) **		 31.3.23
Total
funds
£
3,436,816
3,995,588
1,492,233
(53,954)
8,870,683

At

31.3.24
£
1,163,592
3,342,350
3,995,588
8,501,530
13,995
6,779
4,710
25,484
8,527,014

Page 21

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Zakat
TOTAL FUNDS		 Incoming
resources
£
521,086
240
521,326		 Resources
Movement
expended
in funds
£
£
(864,995)
(343,909)
-
240
(864,995)
**(343,669) **

Comparatives for movement in funds

Unrestricted funds
General fund
Freehold buildings
Investment property
Restricted funds
Fitrana
Zakat
Hospital fund
TOTAL FUNDS		 At 1.4.22
£
2,348,369
3,042,413
3,995,588
9,386,370
7,325
6,299
4,710
18,334
9,404,704		 Net
movement

in funds
£
(540,931)
-
-
(540,931)
6,670
240
-
6,910
(534,021)		 Transfers

between

funds
£
(299,937)
299,937
-
-
-
-
-
-
-
At
31.3.23
£
1,507,501
3,342,350
3,995,588
8,845,439
13,995
6,539
4,710
25,244
8,870,683

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

Unrestricted funds
General fund
Restricted funds
Fitrana
Zakat
TOTAL FUNDS		 Incoming
resources
£
286,582
6,670
240
6,910
293,492		 Resources
Movement
expended
in funds
£
£
(827,513)
(540,931)
-
6,670
-
240
-
6,910
(827,513)
(534,021)

Page 22

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS - continued

Designated funds

Designated funds have been set up of £3,342,350 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 objects of the Charity.

Restricted funds

Fitrana, also known as 'Sadaqat ul Fitr', is a compulsory charity for a Muslim, male or female, old or young. It is a form of charity which is given on the day of Eid ul Fitr, after a month of fasting, in order to expiate one's shortcomings in the month of Ramadan and also to aid poor Muslims to celebrate Eid.

Zakat is the third pillar of Islam. It requires Muslims to give 2.5% of their qualifying wealth each year to help Muslims who need it across a range of categories. Zakat is both a spiritual duty and a vital part of the Islamic social welfare system.

The donations made by beneficiaries, for the Hospital Fund, to be given to the Charity, Al-Hamd-O Lillah (Foundation) Trust, charity number 1097091, will be passed onto the charity, in the coming period.

18. EMPLOYEE BENEFIT OBLIGATIONS

There is a defined contribution pension scheme for employees. The Charity has automatically enrolled eligible jobholders 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 £1,592 (2023: £1,429). At the yearend £329 was owed to the pension scheme (2023: £284).

19. RELATED PARTY DISCLOSURES

As previously reported the Charity will be pursuing a trading subsidiary for funeral undertaker duties, while it directly delivers faith-based bereavement related services; this process has commenced, and we anticipate the trading subsidiary to be trading in the coming months.

The related party funeral company known as Golden Hillock Islamic Funeral Services Ltd (registration number 11855508), was dissolved in November 2024. The related party funeral company known as Golden Hillock Islamic Funerals Ltd ( registration number 12708494), is in dormant, with no intention of trading and is currently in the process of being dissolved. Any profits will be donated to the Charity.

During the year, the Charity received payments from the related party's customers to deposit in its account, which have, since the year end, been transferred to the bank account of the related party. This was agreed by the Board, as the related party bank account had been frozen, until Companies House reinstated the company.

Page 23

Dar Ul Uloom Islamia Rizwia (Bralawai)

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

20. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash used in operations		 31.3.24
£
(343,669)
26,028
-
(242,779)
37,852
**(522,568) **		 31.3.23
£
(534,021)
23,970
(9)
10,053
(42,087)
(542,094)

21. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1.4.23
£
1,310,072
1,310,072
1,310,072		 Cash flow
£
(522,568)
(522,568)
**(522,568) **		 At 31.3.24
£
**787,504 **
**787,504 **
**787,504 **

22. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2024
£
Financial assets measured at fair value through income and expenditure
Investment properties
3,995,588		 2023
£
3,995,588

The net gains and net losses attributable to the charity's financial instruments are summarised as follows:

The net gain/(loss) recognised through net income/expenditure from financial assets measured at fair value (including changes in fair value) amounted to £nil (2023 - £nil).

Page 24