Charity regi¥tration numb•r SC039SOO (Scotlandl BORDERS ISLAMIC SOCIETY ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 JRW HOGG& THORBURN ¢hartwd accountants BORDERS ISLAMIC SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION Trustsgs Ahmed Muslafa Shoukat AAziz BasharatAhmed Charlty number (Scotlandl SC039500 Reglstered offlce Union Street GALASHIELS Scottish Borders TD1 1PG Independent gxamlnor JRW Hogg &Thorbum LLP Riverside House Ladhope Vale Galashiels TD1 18T BORDERS ISLAMIC SOCIETY CONTENTS Page Trustèes, report Independenl examiner's report Statement ol financial activitie5 Balan￿ sheet Notes to the finanaal statements 6-10 BORDERS ISLAMIC SOCIETY TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2026 The Iruslees presenl Iheir annual report and ffinaneial stalemenls for the year ended 31 March 2026. The financial s18temenls have been prepared in accordance wrth the accounting policies sèt out in note 1 to the financial slalemeD15 and comply with the charily's governing document, the Charities and Trustee Investment (Scotlandl Acl 2005, the Charrties Accounts Iscotlandl Regulations 2006, FRS 102 'The Financial Reporting Standard applicable in the UK an(J Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities. Slalement of Recommended Practice applicable lo charities preparing their accounls in a¢￿)rdance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021" Objèctives and activities Borders Islatnic Society conb'nues to serve Ihe Muslim community in Galashiels and the Scottish Borders by providing a safe space lor worship. community support. 8nd social integration. Over Ihe past year, we have maintained our comFnilmenl lo sijpporting our congregation and fo$lering a welcoming environment for all. Alongside our religious services, we actively promote engagernenl with the wider Bordeis soc¢ety through ¢ommunity outreach, interfaith dialogue. and cooperation with local organi5alions. Our constitution defines the Society's charilable aims as.. . Advanang the religion ol Islam by providing prayer facilities and ¢ommunity services. • Promoting religious harmony by ft>5teiing better relations belween Muslims and non-muslims. Undertaking other charitable purposes as determined by the Trustees in ac¢ordance wilh Scottish law. In practice, these objectives are achieved through regular worship. new(x)mer support, education, inlerfailh inilialives. and social events thal nurture inclusion and understanding. Public benefit The trustees have paid due regard to guidance issued by the OSCR in deciding what a¢tivilies the charity should ndertake Achievements and performaneè Significaiit aGtivitNes aiFd achievements againsl obJ'ects"ves Religious SeNices and Key Occasion¥ The So¢iÈty successfully hosled its Iwo majoi annual occasions, the Eid celebrations. which continue lo be vital events ft)r community cohesion and spiritual ieflection. Furthemiore, the holy rnonth of Ramadan saw exceptional activity and engagement We facilitaled Taraweeh players throLJghout the entire rllonth. and Ihese gatherings wère met with Strong allendance, demonstrating the continued and growing need for our service5 Wlthin the community. Education and Pevsonal Development Despite Spa￿ consliaints, we have successfully implemented structured educath)nal inrtiatives We established 8 dedicated ladies, group that Includes children, focusing on Qui'an lessons Additionally. we have initiated Qurfan lessons tailored specifically foi adults These educational oftenngs représent a significant achievement in our ongoing effort lo provide spiritual and religious education to all demographics within our congregation Facllltl&s and Infrastructure The ongoing developrnenl of our pietnises at 6 Union Street remains a ￿ntral locus. Currently, the uppèr floor ol Ihe building Is undergoing completion. The lemporary unavailabilily of thi5 SP3cÈ has naturally held back our abilrty lo h05t laiger meetings. functions. and a broadei ian9e of activities As our congregation grows and our activities during peak times like Ramadan increase, rt h8$ become evident that we need lo upgrade some of our existing facilities and equipment to beller serve the community Th6 completion of the upstair5 arèa is highly anticipated and will be inslTumental in unlocking the Society's full potential. Community Outreaeh and Future Plans The Society remains deeply committed to fostering positivè relationships with the widei Borders communily. Wè have been pleased lo welcome several individuals fiotn the bioader public who have vi511ed the mosque to rneet with us and learn more about our lailh and our aclivities We are eager to continue showing visitors what we do 8nd how we operate. BORDERS ISLAMIC SOCIETY TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Looking ahead, we have aims to be implemented once our facilities are fully operational. These include.. • Organising community and family health walks and exeruse inilialives. Expanding our outreach by meeting with different community groups and formally inviting them to the mosque Upgrading 8XlSting equipment and f8ulilies lo accommodate our growing cOng￿gatIon and enhance the quality of Our services. Expanding the schedule of meeting5, functions, and community actiwties upon the completion of the upper floor. Flnanclal review Financial management 15 transpa￿nt and overseen by the Treasurer and Committee. with funds held in a ¢Jedicated charity account. The suiplus for the year amounted to £44,57412025 - £110.637) whid) ￿suIted in a balance of £156,026 12025 - £111.4521 in the unrestricted fvnd. ReseNes policy It is the poli￿ of the Charity that unrestricted funds whith have not been de$ign*ed lor a specific use should be maintained al a level equivalent to be￿een Ihree and six month's expendrture. The trustees consider that reserve5 at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the ¢harity's current activities while conssderalion is given to ways in which additional funds may be raised. This level of reserves has been mainiained throughout the year. structure. govern•n¢è and management The charity is an unincorporated association. The trustees who served during the year and up lo the date of signature of the financial statements We￿.. Ahmed Muslafa Shouk*AA2 BasharatAhmed ReGruitm8nl and appointment oftru5188$ The trustees and Committee identify suitable persons to fulfil a vacancy rf a new trustee is requiied to be appointed by Ik* ¢harily in accordance with the Conslrtulion. The tTuslees' report was approved by the Bo8rd of Trustees. Shoukat AAziz Trusts• D81e'. SY yvTr)E BORDERS ISLAMIC SOCIETY INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BORDERS ISLAMIC SOCIETY I report on the finanaal ststements of the charty for the year ended 31 March 2026, which are set out on pages 4 to 10. Respe¢tiv¥ rèsponsibilities of tru$ts•s and examiner The ¢harty's trustees are responsible for the preparation of the financial statements in accordance wth the terms of the Ch8nlies and Trustee Investment Iscotlandl Act 2005 and the Charities Accounts (Scotlandl Regulations 20C6. The chaiity Irust8es consider th81 the audit requirernenl of Regulation 10llllal-Icl of the Charrties Aco)unls (Scotland) Regulth'ons 20C6 does not apply. It is rny responsibility lo examine the finanu81 ststements as required under section 4411llcl of the Charit￿$ and Trustee Investment (Scollandl Act 2005 and to slate whether particular rn8tters have corne lo my attention. Basis of indeptrnd•nt examinerfs ststsm•nt My examination is carried out in accordance with Regulation 11 of the Chanties Accounts Iscollandl Regulations 20L￿. An examination includes a rewew of the acwunting records kept by the charity and a comparison of the nanckgl stslemenls presented with those records. It also includes consideratson of any unusual items or disdosures in the finanaal statements, and seeking explanations fr¢)m the trustees c4Jncerning any such matters. The procedures undertaken do not provide all the ewdence that would be required in an audit. and consequenlty I do not express an audit opinion on the wew given by Ihe financial stalernenls. Independ•nt examlnerfs 8tstwMnt In the course of my examination, no matter has come lo my attention l. whith gives me reasonable eause to believe th81 in any material respect the requirements.. to keep accounting records in accordance with Section 4411llal of the Charities and Tru$t8e Investment (Scotlandl Act 2005 and Regulation 4 of the Charities Accounts IScoll8ndl Regulations 2006. and lo prèpare finanaal st8lements which acLord with the accounts'ng reo)rds and comply with Regulation 8 of the Charities Accounts (Scollandl R￿ulationS 20( have not been met, or 2. to which, in rny opinion, attention should be drawn in order to enable a proper underst8nding of the financial ststgmenis to be reached. JRW Hogg & Thorbum LLP Riverside House Ladhope Vale Galashiels T01 1BT BORDERS ISLAMIC SOCIETY STATEMENT OF FINANCIAL ACTIVITIES IINCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YFAR ENDED 31 MARCH 2026 Unre$trfctèd funds 2026 Unre$tri¢t•d funds 2025 In¢om• from: Donations and lega￿5 49,134 115,313 Total income 49,134 115,313 Expgndlture on: charitab￿ actiwties 4.560 4,676 Totsl expendlturo 4,560 4,678 Nèt income and movement in lunds 44,574 110,637 Reconclliotlon of funds: Fund balances at 1 April 2025 111,452 815 Fund balan¢e$ at 31 March 2026 156,026 111,452 The siaternenl of financial actiwties include5 all gains and losses recognise(l in the year. All income and expenditure derive trom continuing actiwties. BORDERS ISLAMIC SOCIETY BALANCE SHEET AS AT 31 MARCH 2026 2026 2025 Notss Flxed assèts Tangible assets 120,000 120,0 Current assets Cash al bank and in hand 36.026 11,452 Crgdltofs: amounts tslling duè wlthin on• y•ar 11 120,0001 Net current •*￿ts1(11abI1ltiOSI 36,026 {8.5481 Totsl assets less current liabllltl•s 156,026 111.452 Th• fvnds ofthe charity Unreslricted funds 12 156,026 111,452 156,026 111,452 The financial statemènts were approved by the trustees on . Shoukal AAziz Trustee BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 A¢countlng policies Charity infomiatlon The charity is registered in Scotland and ils registered number is SC039500. The charity's ￿gIstered addre5$ is 6 Union Slieel, Galashiols, TD1 1 PG. 1.1 Ba$is of prepardtion The financial statements have been prepared in accordance with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotlandl Regulations 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Rèpublic of Ireland and the Charthes SORP "A¢¢ounling and Reporting by Charities". Statement of RecomFnended Practice applicable to charities preparing their a¢￿untS in accordan￿ with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" The charity is a Publi¢ Banefrt Enlity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charrties not to prepare a slalement of cash flows. The financi81 $181oments are prepareil in sterling, which is the functional currency of the charity. Monetary amounts in these financial statement5 are rounded to the nearest £. The finanual statements have been prepared under the historical cost convention. The principal accounting policies adopled are sel out below. 1.2 Going con¢em At the lime of approving the financial slalemenls, the trustees have a rèasonable expeLlation that the charity ha5 adequate resources lo continue in operational exislence for the foreseeable future. Thus the trustees conlinue lo adopt the going concem basis of accounting in prepar¢ng the financial statements. 1.3 Charitsble fund$ un￿striCted funds are available for use at the discretion of the trustees in furtheranc8 of their charitable objectives. 1A Ineomè Income is recogni5ed when the chanty is legally enlilled to it after any performan¢% conditions have bèan mel, thè amounts can be measured reliably, and it 15 probable that income will be received. Cash donation5 are recognised on receipt. Other donations afe reojgniseil once the tharity has beèn nth'fied of the donation. unless performance conditions iequiré deferral of the amount. Income tax recoverable in relation to donation5 re¢eived under Gift Aid or deeds of covenant is recognised at the time of the donation. 1.5 Expenditur• Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit lo a third party. it 1$ orobable that a transfer of èconomic benefits will be required in settlement. and the amount of the obligat￿n cgn be measured reliably. Expenditure is classified by activity. The costs of each actNity are made up of the total of direct costs and shared costs, including SiJPPOrt costs involveLI in undertaking each activity. Dirèct costs attributsble to a single activity are allocated dirèctly to that activity. Shared costs which contribute lo more than one activity and support costs which are not attributable to a single activity are apportioned beiween those activities on a basis consistent with the usc of resources. Central staff costs are allocaled on the basis of time spent, and dépraciation charge5 ale allocated on Ihe portion of the asset's use. BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Accounting poll¢les (Continued) 1.6 Tanglble flxgd assets Tangible fixed assets are initially measured al cosl and subsequently measured at cost or valuation, nel of dèpreciatNJn and any impairnient losses. Depreciation is recognised so as to write off the cost or ValUat￿n of a55els 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 drfferen¢e be￿een the sale proceeds and the carrying value of the assel, and is re￿gnIsed in tha statement of finanaal actiwties. 1.7 Impairn)ent of fixed ••8•ts At each reporting end date, the charty reviews the carrying arrounls of rts tangible assets to detemine whether there is any indic2tion that those assets have suffered an impaimènt loss. If any such indication exists, the recoverablè amunt of the asset is estimaled in order lo detèmine the extent of the impairment loss lil any). 1.8 Cash and ¢a$h equlval•nts Cash and cash equivalents indude e8sh in hand, deposits held * call wilh banks, other sfv)rt-term liquid investments with original malurities of three months or less, and bank overdrafts. Bank overdrafts are shown wrthin borrowings in current liabilities. Baslc flnancial a55ets Basic financial assets, which indude deblois and cash and bank balances, are inth'ally measured al transaction price including transaction costs anLI a￿ subsequently carried al amortised cost Using thè effective interest method unless the arrangernent con51ilules a financing transaction, where Ihe transaction is measured at the present valuè ol the future receipts dis¢ounled at a market rale of interest. Financial assets dassffied as ¥eceivable within one year are not amortised. BasiTC fin•rtial liabilities Basic financial liabilities. including creditors and bank 108ns are initi'ally recognised at transaction price unless the arrangement constitutes a financin9 transaction. Whe￿ the debt instrument is mgasured at the pièsent value of the future payments discounted at a market rate ol intèrest. Finanual liabilities dassified as payable within one year are nol arnortised. Debt instruments are subsequently carTied al amortised cost. using the èffective interest rate method. Trade creditors ale obligations to pay foT goods or services that have bèèn acquired in the ordinary course of operations from suppliers. Amounts payable are classffied as current Iiabilrties if payment is (Jue within one year or less. 11 not. they are presented as non-¢urrent liabilities. Trade ¢redilors are recognisèd initially at transaction price 8nd subsequently measured at amortised cost using the effective interest method. Dèrecognrflon of finan¢i•l Ilabllftl8S Financial liabilities ale d￿￿C09n1Sed when the Charity's contractual obligations expire or are discharged or neelled. BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Income from donatlons and legacie Unrestrlcted Unwtsleted funds funds 2026 2025 Donations and gifts 49,134 115,313 Donated g4)ods and servl¢e$ There were no donated goods or services during 1he year, other than volunteer lime. The vasl majority ol the charity's members contribute on an ongoing and infomal basis, primarily by assisting with the de8ning of the centre and with the organisalion and preparat￿n for congregational prayers. Expenditure on charllablè actlvltie¥ Unygstricted Unr•$trlcted funds fvnds 2026 202S Direct Costs Heat and light Paypal charges Rates Bank charges Advertising 2.581 2,563 856 655 101 201 390 343 3.660 4,376 Share of support and govgmance costs I￿¢ not• 41 Goveman 900 300 4.676 Analy$is by lund Unrestricled funds 4,676 Support costs allocated to adlvltlès 2026 2025 Govemance costs 300 Analysed between: Unrestricted funds 300 BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 Nèt movement in fund$ 2026 2025 The nel rnovement in frjnds is stated after chargingllcredrtingl.. Fees payable for the indepèndent examination of the charity's ffinancial statements 900 300 Trustso$ None of the trustees lor any persons connecte(I wilh thern} received 8ny remuneralK•n or benefits from the Charity during the year. Employ88S 2026 Number 2025 Numb•r Total There We￿ no employees whose annu81 remuneration wa5 more than £60,000. Taxation The charity is exernpt from 18xalion on its activities because all ts income is applied for charitable purposes. Tangible fixed assets Freehold land and bulldln9¥ Cost At 1 April 2025 120.000 At 31 March 2026 120,￿0 Carrying amount At 31 March 2026 120,000 Al 31 March 2025 120,000 2026 2026 Freehold 120,000 120,OCXJ BORDERS ISLAMIC SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026 10 Loans and ov•rdrnfts 2026 2025 Other loans 20.000 Payable within one year 20.IJOO As part of rts fundraising to purchase the building. the charity receive(18n int8rest free ljan lolalling £20,000 from one individual. This was repaid in full during the financial yeaf. 11 Credltors: amounts falling dut withln ono y•ar 2026 2025 Borrowings 20.000 12 Unre$tri¢tsd funds The unre51ricled funds of the charrty comprise the Ltnexpended balances of donations and grants which are not subject lo spe¢rfi¢ ¢onditions by donors and grantors as to how they may be used. These include designated funds which have been sel aside out ol unrestricted funds by the trustees for specific purposes. At l April 2025 Incoming sources Re$oLFrcès At 31 March expend*d 2026 General funds 111.452 49,134 14,5601 156.026 prev￿￿$ y•ar. At 1 April 2024 Incoming r•$ources Resourc8s At 31 Mar¢h expend 2025 General funds 815 115.313 14.6761 111,452 13 Related party transa¢tlons There were no disclosable ￿lated party transactions during Ihg year12025- none). 10-