The Directors present their annual report and financial statements for the Period ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Al-Maktoum Foundation (Scotland) was established in Scotland 18 March 2005 to promote multiculturalism, present better understanding of Islam and Muslims and provide practical support for multicultural initiatives in the communities. The following objectives were stated in the Foundation Memorandum of Association:
To promote, for the benefit of the public, equality of opportunity and good race, religious and cultural relations between persons of different racial/religious groups and to advance the religion of Islam, and to support and promote a better understanding of Islam and Muslims and to advance public education in the is try, languages, traditions, customs and heritage of the various communities, nationalities and races;
To promote for the benefit of the inhabitants of the United Kingdom and its environs without distinction of sex, sexuality, political, religious or other opinions by associating the local statutory authorities, voluntary organisations and inhabitants in a common effort to advance education and to provide facilities or assist in the provision of facilities in the interest of social welfare for recreation and other leisure-time occupation so that their conditions of life may be improved.
These objectives will be perused particularly through the administration of projects in the United Kingdom and the rest of Europe.
The Directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The main activities of the Foundation during the year have been mainly overseeing the operations of the Al-Maktoum Mosque in Dundee.
People in Dundee both Muslims and non-Muslims continue to appreciate the excellent facilities provided at the Al-Maktoum Mosque. Numbers of worshipers are averaging between 20-30 people during normal daytime prayers, with the late evening attracting between 30-40 people. The Friday prayer, however, continues to attract much larger numbers between 100-150 people.
The mosque building is now over 9 years old and maintenance requirements have increased recently. All the major installations at the mosque such as the ventilation system, mechanical controls, lift and automatic doors are all subject to annual maintenance arrangements.
The Mosque continues to provide several educational programmes ranging from basic Arabic language to more specific theological studies. In addition, other community programmes including visits by school children, scout clubs and other members of the local community continue to take place. The aim is to provide an opportunity to visit a place of Muslim worship and gain an understanding of what goes on inside a mosque.
During the month of Ramadan an Ifter programme was provided for people to break their fast at the mosque providing over 1800 meals to members of the community who attended the mosque iftar times.
We continue to collaborate with St. Joseph's Catholic Church allowed them access to the Mosque car park on Sundays and during special events. This is greatly appreciated by the church authorities.
The financial results are set out in the statement of financial activities on page 4.
The company directors have established a policy to maintain unrestricted funds, which are the free reserves of the charitable company at £25,000. Unrestricted reserves amounted to £37,847 (2021 - £63,197). Restricted funds amounted to £135 (2022 - £Nil). Total reserves amount to £33,489 (2022 - £37,848).
The main source of funding for the Mosque continues to be the Al-Maktoum Foundation in Dubai.
The directors consider the board of directors, who are the Foundation's trustees, compromise key management personnel of the charitable company in charge of directing, controlling, running, planning and operating the Foundation on a day to day basis. All directors are entitled to receive expenses in respect of services provided during the financial year. Details of trustees' expenses and remuneration are disclosed in note 6 to the financial statements.
All the Foundation's funds are to be spent in the short term so there are no funds for long term investment.
For the future, the Al-Maktoum Foundation (Scotland) is very keen to expand the activities of the mosque and increase the provision of educational and community programmes for the benefit of the community. We are sure these activities will promote the Mosque further and encourage more people to use it.
The Foundation is a charitable company limited by guarantee, incorporated on 18 March 2005, and obtained charitable status from the Inland Revenue with effect from 18 March 2005 and is registered as a charity with the Scottish Charity Regulator (OSCR). The Foundation was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
All directors are already familiar with the practical work of the Foundation and are familiar with the following:
The obligations of the Board of Directors members.
The main documents which set out the operational framework for the Foundation including the Memorandum and Articles.
Resourcing and the current financial position as set out in the latest published financial statements.
Future plans and objectives.
The directors of the Foundation are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Board of Directors. Under the requirements of the Memorandum and Articles of Association there is no age limit for members of the Board of Directors.
The directors have assessed the major risks to which the Foundation and are satisfied systems have been put in place to mitigate the Foundation's exposure to the major risks. These procedures are periodically reviewed to ensure that that continue to meet the needs pf the Foundation. The principle risk is the continued reliance on funding from Al-Maktoum Foundation Dubai. Systems are in place to ensure funding will continue to be received on an ongoing basis.
Al-Maktoum Foundation (Scotland) is managed under the authority of the Board of Directors. The directors determine the general policy of the Foundation.
Members of the Board of Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, at the date of this report are set out on page 1.
The company is limited by guarantee under the Companies Act 2006, and is a recognised charity. The liability of the members is limited to £1. Permission has been granted by the Secretary of State for Trade and Industry for the word "Limited" to be omitted.
This report has been prepared in accordance with the provisions available in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the charity for the Period ended 31 December 2023, which are set out on pages 5 to 14.
The charity’s directors, who also act as trustees for the charitable activities of Al-Maktoum Foundation (Scotland), are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 consideration of any unusual items or disclosures in the financial statements, and seeks 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.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the Period.
All income and expenditure derive from continuing activities.
The notes on pages 7 to 14 form part of these financial statements.
The notes on pages 7 to 14 form part of these financial statements.
Al-Maktoum Foundation (Scotland) is a private company limited by guarantee incorporated in Scotland. The registered office is 15 Wilkies Lane, Dundee, DD1 5HB, Scotland.
The financial statements cover the period from 1 August 2022 until 31 December 2023. There was a change of year end which has resulted in the longer period to align the reporting period with the main charitable donor. The comparative amounts included within the financial statements cover a 12 month period to 31 July 2022.
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 (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. All assets more than £1,000 are capitalised.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured 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, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment.
Heat and light
Telephone
Cleaning
Non audit fees
Bank charges
Sundry expenses
Depreciation
Repairs and renewals
Insurance
Audit fees
Independent examination fees
Governance costs includes payments to the independent examiners of £4,200 (2022 - £3,702) for an independent exam.
The average monthly number of employees during the Period was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £6,124 (2022 - £2,147).
The Foundation received revenue funding of £154,214 (2022 - £94,840) from the Al-Maktoum Foundation in Dubai. The former patron, His Highness Shaikh Hamdan bin Rashid Al-Maktoum was the Chairman of Al-Maktoum Foundation in Dubai and Mr Mirza Al-Sayegh, a Director, is also a Trustee of Al-Maktoum Foundation in Dubai. No sums were due at either year end.
All directors are entitled to receive expenses in respect of service provided during the financial year. Dr Abubaker Gaber Abubaker received £5,000 (2022 - £NIL) in reimbursed expenses in the year.
No other remuneration or expenses were paid to the directors in the year.