Charfty registration number SC039500 Iscotland) BORDERS ISLAMIC SOCIETY ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 JRW HOGG& THORBURN chartered accountants
BORDERS ISLAMIC SOCIETY LEGALAND ADMINISTRATIVE INFORMATION Trustses Charity nUmr {S¢otlandl SC039500 R•gi•t•r•d Offico 6 Union Street GALASHIELS Scottish Borders TD11PG Independènt examiner JRW Hogg & Thorbum LLP Riverside House Ladhope Vale GALASHIELS TD1 1BT
BORDERS ISLAMIC SOCIETY CONTENTS Page Trustees, report Independent examiner's report Statement of financial activities Balance sheet Notes to the financtal statements 7-11
BORDERS ISLAMIC SOCIETY TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and financial slalements for the year ended 31 March 2025. The financial slalements have been prepared in a¢¢ordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing do¢umenl, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scolland) Regulalions 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" Objectives and actlvities Borders Islamic Society ¢onlinues lo serve the Muslim community in Galashiels and Ihe S¢otlish Borders by providing a safe space for worship, community SUPPOrt, and social inlegralion. Over the past year. we have seen significant growth in membership, driven largely by newcomers settling in the area. Alongside our religious servi¢es, we actively promote engagement with the wider Borders society through community outreach, interfaith dialogue, and cooperation with local organisations. Our constilution defines the Society's charitable aims as.. . Advancing the religion of Islam by providing prayer facilities and community seryices. Promoting religious harmony by fostering better relations beeen Muslims and non-muslims. Undertaking other charitable purposes as determined by the Truslees in accordance with Scottish law. In practice. these objectives are achieved through regular worship, newcomer support, education, interfailh initiatives, and social events that nurture inclusion and understanding. Public benafit The trustees have paid due regard to guidance issued by the OSCR in deciding what activities the charity should undertake.
BORDERS ISLAMIC SOCIETY TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and perfomiance SignifiGant activities and achievemenls against objectives Growth and Community Support The Society supported an increasing number of Muslim newcomers - families, students, and asylum seekers helping them wilh housing, local orienlalion, and emotional support. This growth underscored the need for a larger facility. Acquisition and Renovation of New Premises Following an extensive search, we acquired a former boxing club, previously a church and designated pla¢e of worship, near our former location. Raised £130,000 via local fundraising, UK and international donations. and interesl-free loans. Completed major renovations including ftooring, walls, kitchen, toilets, and office spaces with volunteer help. The new building now seNes as both mosque and community centre. Religious Services We held weekly Friday prayers (Jumu'ah). daily prayers. and special programs during Ramadan including Tafaweeh and community iftars. Eid prayers and celebrations continued to foster community cohesion and welcomed wider participation. Education and Personal Development Informal classes in Qur'an recitation and Islamic studies were provided alongside English and Arabic language support. Plans are underway lo formalise these educational offerings. Community Engagement The Society increased ils presence in the wider Borders community by hosling open mosque days, participating in local events, and facilitating interfaith dialogue, promoting mutual understanding and social inclusion. Communication Enhanced use of WhalsApp and online plafforms improved community connectivity, event coordination, and fundraising efforts. Future Plans Launch structured educational programs for Qur'an, Islami¢ studi8s, and languages Develop youth engagement inilialives including mentorship and recreational activities Flnanclal revlew The financial focus was on a¢quiring and renovating the new building. Total funds raised.. £130,000 (donations and inlerest-free loans) Expenditure.. Property purchase, renovations, ulililies, furnishings, and associated costs Loans have since been repaid in Ihe subsequent financial year Financial management is transparent and overseen by the Treasurer and Committee, with funds held in a dedicated charity account. The surplus for the year amounted lo £110,63712024 - £802} which resulted in a balance of £111,452 (2024 - £815) in the unrestricted fund.
BORDERS ISLAMIC SOCIETY TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Re8glV88 policy 11 is the policy of Ihe charity thal unrestricted funds which have not been designatèd for a specific use should be maintained al a level equivalent to bemeen three and six month's expenditure. The trustees consider that resenies at this level will ensure Ihat, in the evenl of a signific4nt drop in funding, they will be able to continue the ch8rily's rrent activities while consideration is given lo ways in which additional funds may be raised. This level of resep4es has been maintained throughout the year. Structure, governan¢e and management The chanty is an unincorporated 8ssociation. The trustees who served during lie year and up to Ihe dale of signature of Ihe financial statements were.. ReGruitfflent and appointfftent of twsfees The trustees and Cornmiltee identify suitable persons lo fulfil a va¢ancy rf a new trustee is required to be appointgd by the ¢h8rity in accordance with the C¢nstitulion. Thg tD.IstOgs' repnrt wa¢ approved by the Board of Trustees. Date: . I l. "lo-& S
BORDERS ISLAMIC SOCIETY INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BORDERS ISLAMIC SOCIETY I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 5 to 11. Respective responslbllllles of trustee8 and oxaminer The chaiity's trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment {Scotlandl A¢1 2005 and the Charities Accounts {S¢olland) Regulations 2006. The charity trustees consider that the audit requirement of Regulation 1011}la}-(c) of the Charities Accounts {S¢otland) Regulations 2006 does not apply. 11 is my responsibility lo examine the financial statements as required under section 44(1)Ic) of the Charities and Trustee Investment (Scotlandl Act 2005 and to slate whether particular matters have come lo my attention. Basis of independent examinerfs statement My examination is carried out in accordance with Regulation 11 of the Charities Accounts (S¢olland} Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideralion of any unusual items or disclosures in the financial slalements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements. Independent examinerfs ststement In the course of my examinalion. no matter has come lo my attenlion 1. which gives me reasonable cause to believe that in any material respect the requirements.. lo keep accounting records in accordance with Section 44{1llal of the Charities and Trustee Investment {Scotlandl Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and lo prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scollandl Regulations 2006 have not been met, or 2. to which, in my opinion, attention should be drawn in order lo enable a proper understanding of the financial statements lo be reached. JRW Hogg & Thorburn LLP Riverside House Ladhope Vale GALASHIELS TD1 18T Date..
BORDERS ISLAMIC SOCIETY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestrlcted Unre8trlcted funds funds 2025 2024 Notes Income from: Donations and legacies 115.313 8.705 Total income 115.313 8.705 Expenditure on: Charitable activities 4,676 7,903 Total expenditure 4,676 7.903 Net income and movement in funds 110,637 802 Reconciliatlon of funds: Fund balances at 1 April 2024 815 13 Fund balances at 31 Mah 2025 111.452 815 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
BORDERS ISLAMIC SOCIETY BALANCE SHEET AS AT 31 MARCH 2026 2026 2024 Not98 Flxed assets Tangible assets 120,000 Current a88•ts Cash al bank and in hand 11.452 815 Crodltor8: amounts falllng due within one year 10 (20.0001 Net current Iliabilities)lassets 18,548) 815 Totsl assets less current15abilities 111,452 815 Thefunds of the charity Unrestricted funds 12 111,452 815 111,452 815 The financial slalements were approved by the trustees on . 11.11. iJ7S
BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 A¢counting policles Charfty infomiatlon The charity is registered in Scotland and its registered number is SC039500. The charity's regislered address is 6 Union Street. Galashiels, TD1 1 PG. 1.1 Basis of preparation The financial slalements have been prepared in accordance with the charity's governing document, the Charities and Truslee Investment {Scotland) Act 2005, the Charities A¢counts (Scollandl Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Stalemenl of Recommended Practice applicable to ¢harilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021" The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charilies not to prepare a statement of cash flows. The financial slatements are prepared in sterling, which is the functional currency of Ihe charity. Monetary amounts in these financial stalements are rounded to the nearest £. The financial stalemenls have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going concern Al the lime of approving the financial slalemenls, the trustees have a reasonable expeclation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Irustees continue lo adopt Ihe going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestri¢led funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. 1.4 Income In¢ome is recognised when the charity is legally entitled to il after any performance conditions have been met. the arnounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance ¢ondilions require deferral of the amount. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the lime of the donation. 1.6 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to third party, it is probable thal a transfer of economic benefits will be required in settlement, and Ihe amount of the obligation Can be measured reliably. Expenditure is classified by activity. The ¢osls of each aclivily are made up of the lolal of direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on Ihe basis of time spent, and depreciation charges are allor2ted on the portion of the asset's use.
BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng policies (Continued} 1.6 Tanglble flxed assets Tangible fixed assets are initially measured at cost and subsequently measured al cost or valuation, net of depreciation and any impairment losses. Depre¢ialion is recognised so as to write off Ihe cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset. and is recognised in the statement of financial activities. 1.7 Impalrnient of fixed assets At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to delemiine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assel is estimated in order to determine the extent of the impairment loss (if any}. 1.8 Cash and cash equivalents Cash and cash equivalenls include cash in hand, deposits held al call with banks, other short-term liquid investments with original maturities of Ihree months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabililies. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interesl method unless the arrangement constilules a financing transaction, where the Iransaclion is rneasured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities. including creditors and bank loans are initially recognised al Iransa¢tion price unless the arrangement constilules a financing transaction, where the debt instfumenl is measured al the present value of the fulufe payments discounted al a market rate of interest. Financial liabililies classified as payable within one year are not amortised. Debl instruments are subsequently Carried al amortised cost, using the effective interest rale method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if paymenl is due within one year or less. If not, they are presented as non-currenl liabilities. Trade creditors are recognised initially at transaction pri and subsequently measured al amortised cost using the effective interest method. Derecognition of flnancial liabilitles Financial liabilities are derecognised when the charity's contradual obligations expire or are discharged or cancelled.
BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Income from donations and legacies Unrestri¢tsd Unrestrtcted funds funds 2025 2024 Donations and gifis 115,313 8,705 Donated goods and servlces During the year, the charity purchased a building for use as a mosque. The solicitor dealing with the purchase on behalf of the charity donated his time and services for free. Expendlture on charitsble actlvltles Unrestricted Unrestricted funds funds 2025 2024 Direct costs Heat and light Rent Paypal charges Property repairs Rates Bank charges Advertising 2,563 1,815 655 15 5,250 856 655 101 201 4,376 7,735 Share of support and governance costs (see note 4 Governance 300 168 4.676 7.903 Analys1$ by fund Unreslricled funds 4,676 7.903 Support costs allocated to actlvltles 2025 2024 Governance costs 300 168 Analy8ed between: Unrestricted funds 300 168
BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Net movement In fund8 2025 2024 The net movement in funds is slated after chargingl{crediling)'. Fees payable for the independent examination of the charity's financial statements 300 168 Trustees None of the Iruslees lor any persons connected with them) received any remuneration or benefits from the charity during Ihe year. Employees 2025 Number 2024 Number Total There were no employees whose annual remuneralion was more than £60,000. Taxation The charity is exempi from taxation on its activities be¢ause all its income is applied for charitable purposes. Tangible fixed assets Freehold land and bulldlng$ Cost Additions 120,000 At 31 March 2025 120,000 Carrylng amount At 31 March 2025 120,000 2025 2024 Freehold 120,000 10-
BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 Credltors: amounts falllng due within one year 2025 2024 Borrowings 20,000 11 Loans and overdrafts 2025 2024 Other loans 20,000 Payable within one year 20.000 As part of ils fundraising lo purchase the building, the charity received an interest free loan lotalling £20,000 from one individual. This has been repaid in full since the end of the financial year. 12 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject lo specific conditions by donors and grantors as to how they may be used. These include designated funds which have been sel aside out of unrestricted funds by the trustees for specific purposes. At 1 Aprfl 2024 Incoming resources Resour¢e$ At 31 March expended 2025 General funds 815 115,313 (4,6761 111,452 Previous year: At 1 Aprfl 2023 Incoming resources Resources At 31 March expended 2024 General funds 13 8,705 (7,903) 815 13 Related party transactlons There were no disclosable related party transactions during the year12024 - none). 11