The Directors present their annual report and financial statements for the year ended 31 March 2025.
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 Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) 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: 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)".
Al-Meezan is a non-political, non-sectarian charity organisation working in Glasgow for the past 20 years. Our primary focus is to meet the Islamic educational and social needs of Muslim woman and children.
Founded by conscientious individuals in 1998, it has now become a well-established organisation facilitating over 1000 users from all walks of life.
We aim to increase the knowledge and understanding of the Islamic faith for woman and children to connect to our creator.
Al-Meezan is a positive thriving place of learning that provides varied services to meet the needs of the region of Glasgow and beyond.
Al-Meezan promotes the learning, understanding and application of the Quran and Sunnah, thus educating individuals to live more spiritually enriched and fulfilled lives.
Our regular classes continue to be offered, which range from Adult Quran classes, Intermediate Age Youth Classes, Social Based Groups, Mother and Toddler, Fitrah Playgroup, and the teaching and learning of Quran for all age groups. Some new classes that were offered include the English Short Courses: Quranic Experience, Healing with Hikmah and Bukhari Shareef: Hadith Study. Finding your Path which is a social based teenage class is in its 3rd successful consecutive year, additionally, Urdu Selected Surahs Courses were offered. Furthermore, there was an update of the Syllabus to Children’s Quran Class to include an extended curriculum based around the Islamic Calendar.
In addition to this, there was also the Al Meezan Annual Dinner in May 2025 which marked the 20-year celebration of the opening of AlMeezan, at which there was a campaign launched called, “Al Ansar (the Helpers) of Al Meezan”. The goal of this campaign was to attain more direct debit contributions for Al Meezan which was successful at the Annual Dinner and the campaign continues into the year 2026.
During the year, Al Meezan met its fundraising target for the Outdoor Area Appeal which resulted in the outdoor car park and the Early Years Playground being resurfaced with tarmac during July 2025. Further plans for the remaining funds are to build a small wellbeing area near the Early Years Playground.
Finally, the introduction of Budget Cards for managing expenses of Key Departments was instituted in 2025 with the aim of controlling the expenses of the Departments and the use of resources.
The charity recorded a surplus in the year of £6,861 (2024: deficit £18,337).
The overall surplus for the year to 31 March 2025 reflects:
1) A surplus on day-to-day operational charitable activities including fundraising initiatives of £53,701.
2) A deficit of £95,090 representing the depreciation (or annual write down) on Al-meezan House and other fixed assets net of any additions in year.
3) A surplus of £48,250 representing unspent grant funding within Restricted Funds which will be carried forward and spent in accordance with conditions of the awards.
Al-Meezan has total reserves at 31 March 2025 of £2,292,768 (2024: £2,285,907). Although the reserves appear significant it is important to note that the total is predominantly represented by the Designated Asset Fund which houses the net book value of Al-Meezan House as this is not a liquid asset. Further details of this fund are provided in note 13 to the accounts.
The Unrestricted General Fund, representing those funds freely available to be applied in furtherance of charitable objectives totalled £116,308 at 31 March 2025 (2024: £62,607). The Directors are pleased to report the significant improvement and are thankful to all who have contributed.
The Directors are confident that the timing and amounts of future income streams of Al-Meezan shall allow full repayment of the Q-E-H and EST debts as and when they fall due, thus allowing positive unrestricted funds to be maintained on an ongoing basis. As such, the Directors consider it appropriate to continue to prepare the accounts on a going concern basis.
It is the policy of the charity to maintain unrestricted general funds, which are the free reserves of the charity, at a level to provide sufficient funds to contribute towards the forthcoming year's day to day running costs of Al-Meezan. As at 31 March 2025, unrestricted general funds were in surplus by £116,308, which was acceptable by the Directors.
The charity's principal sources of income arise from donations, class fees, specific fundraising events and through generated income from a bookshop and tuckshop.
The directors have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to major risks. The directors consider the main financial risk facing the charity to be that enough funds can be brought in, on a regular basis, to continue the work of Al-Meezan. In order to mitigate this risk the directors continuously review the range of classes offered and the needs of individuals so that classes and times suit the users. The directors acknowledge the need to maintain demand for the classes provided and maintain public interest by introducing new topics. In addition the Trustees engaged the services of appropriate professional advisors in relation to the building extension to ensure that risks associated with such a large development were properly managed.
Al Meezan’s dedicated Board meets regularly to discuss the progress of work within the organisation and to ensure the organisation and its systems will continue to evolve and grow into the future. The board aims to sustain and increase the voluntary staffing section whilst simultaneously providing stability within the paid staffing section by making all staff feel valued, appreciated and supported. Additionally, the board continues to strive to maintain and increase Al Meezan's membership through the graduate scheme by providing a number of routes for users to graduate from Quran Classes. By sustaining and increasing Membership and Staffing the board will continue to ensure the work of Al Meezan continues into the long term and that the needs of the surrounding communities continue to be met.
Plans for the future include:
Using the funds from the Outdoor Area Appeal Funds, to resurface the outdoor carpark and Wellbeing area is built near the Early Years Playground.
Introduction of New Courses to attract new users and meet existing demand.
Further Expansion of Health & Wellbeing Workshops for Women.
Introduction of a Tap & Donate Electronic Payment System within the building.
Extension of the Al Meezan Annual Dinner as a central platform for Fundraising.
Public Benefit
Al-Meezan was established to provide public benefit.
Governing document
Al-Meezan is a company limited by guarantee, not having a share capital, and is registered as a charity. The company was established under a Memorandum of Association which sets out the objects and powers of the organisation and is governed under its Articles of Association.
The Directors who served during the year and up to the date of signature of the financial statements were:
Al-Meezan is governed by 7 elected board members, who are regularly elected at an AGM by the members of Al Meezan. There is an agreed criteria of who can be elected and this is based on the commitment and dedication of individuals to the work of Al-Meezan.
The directors oversee aspects of the work of Al-Meezan and are bound by the Al-Meezan constitution as far as their responsibilities to the organisation are concerned.
Directors appointed to the Board are experienced individuals. An informal induction and training process is in place to identify key skill gaps to be addressed.
Key Management Personnel
The Directors constitute Key Management Personnel of the charity. They are not remunerated.
The Directors recommend that Allison Devine, C.A., a partner in TC Group, Business Advisors & Accountants, remains in office as independent examiner until further notice.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 6 to 22.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) 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 consideration of any unusual items or disclosures in the financial statements, 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.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. 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 year. All income and expenditure derive from continuing activities.
Al-Meezan is a private company limited by guarantee incorporated in Scotland. The registered office and principal place of business is C/o TC Alexander Sloan, 180 St Vincent Street, Glasgow, G2 5SG.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) 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: 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)". 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 or grantors 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.
Gifts in kind
Items are donated by members at fundraising events for resale, such has homebaking. The value of these goods are not reflected in the financial statements as it would be impracticable to do so.
Gift Aid
Income tax recoverable on Gift Aid donations is recognised when the respective donation has been recognised and the recoverable amount of income tax can be measured reliably; this is normally when the donor has completed the relevant Gift Aid declaration form. Income tax recoverable on Gift Aid donations is allocated to the same fund as the respective donation unless specified by the donor.
Income from Charitable Activities
Income from charitable activities includes income earned both from the supply of goods or services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular goods or services to be provided by the charity. Income from charitable activities is recognised as earned (as the related goods or services are provided).
Other trading activities
Income from other trading activities includes income earned from both trading activities to raise funds for the charity and income from fundraising events and is recognised when the charity has entitlement to the funds, it is probable that these will be received and the amounts can be measured reliably.
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 settlement will be required and the amount of the obligation can be measured or estimated reliably.
Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Raising Funds
Expenditure on raising funds includes all expenditure incurred by a charity to raise funds for its charitable purposes. It includes the costs of all fundraising activities and events together with those costs incurred in seeking donations, grants and legacies and investment management costs.
Charitable activities
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable.
Other expenditure
Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities and is recognised when it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Governance costs
Governance costs (which are included as a component of support costs in accordance with SORP) comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to constitutional and statutory requirements, external scrutiny (audit or independent examination), strategic management, and other legal and professional fees.
Irrecoverable VAT
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
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.
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.
One of the charity's key assumptions is that voluntary income and income from charitable activities continues to be at a level which is sufficient to cover the costs of the charity's day to day activities. This supports the continued application of the going concern basis of preparation of the financial statements.
The average monthly number of employees during the year was:
Al-meezan considers the Directors to be the Key Management Personnel of the charity. The Directors of Al-meezan are not remunerated.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Al-Meezan House was last professionally valued in June 2015 by Colliers International Valuation UK LLP. The valuation was undertaken using the Depreciated Replacment Cost method as defined within the RICS Valuation - Professional Standards.
The Depreciated Replacement Cost was assessed at £2,600,000.
Having spent considerable sums in recent years creating the bespoke educational facility which suits the ever growing needs of Al-Meezan, Al-Meezan House was reported in the Balance Sheet at a depreciated cost (prior to impairment) of £3,208,637. Due to the significant variation, the Directors considered it prudent to report an impairment charge in the year ended 31 March 2015 to bring the carrying value of Al-Meezan House to its assessed depreciated replacement cost of £2,600,000 at 31 March 2015.
During 2015/16, 2016/17, 2017/18 and 2021/22 further capital spend has been incurred on the building in respect of the kitchen refurbishment, the creation of a dedicated pre-school nursery space and considerable eco-works. A new boiler for the Main Building at Al-meezan began fitting before the year ended 31 March 2022 and expenses carried on into 31 March 2023. These have been capitalised and, after annual depreciation, the carrying net book value of Al-Meezan House is £2,055,983 at 31 March 2025.
Building Fund Loans included above represent Qarz-e-Husana unsecured interest free personal loans which are repayable at fixed dates in accordance with individual agreements.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
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.
These are the designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes:
Designated Asset Fund
The Designated Asset Fund "holds" the net book value of Al-Meezan House in land and building and plant and machinery as shown on Note 13. The Directors consider it wise to hold the net book value within a separate fund. Due to its nature this fund could not be converted into readily available cash fund without the sale of the building.
Depreciation/impairment is charged against the fund annually representing the "expenditure" amount shown above.
These are the unrestricted funds to the charity
The general fund represents the free reserves of the charity which may be used in furtherance of the charity's objectives, without further restriction. It excludes the carrying value of Al-Meezan House, which is held separately in the Designated Asset Fund, as this does not represent liquid funds available to use in the charity's day to day activities.
At 31 March 2025 Al-Meezan has a surplus on unrestricted funds of £118,980 (2024: Surplus £62,607).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
*Funds for Help Make Al-meezan Debt Free Appeal
Sakina Group Fund
Represents grant funding received from the Scottish Government Wellbeing Fund (Corra Foundation), Scottish Refugee council and Soil Association Ltd, Arnold Clark Community Fund, Hillcrest Foundation Fund and Glasgow Council for the Voluntary Sector (GCVS) to be used towards costs associated with the Sakina Group. During the year ended 31 March 2025 grants from Glasgow Life, University of Sunderland and MacMiIllan Cancer Care was received to also be used towards the Sakina Group.
Event Fund
Grant funding received during the year ended 31 March 2025 from MacMillan Cancer Support towards the costs of holding their 10 year celebratory dinner event. The event was held on 2nd June 2024.
Help Make Al-Meezan Debt Free Appeal
Donations received during the year from members, students, users and supporters of Al-Meezan in the new appeal to clear the loan debt. Donations have been made through the following appeals;
Friends of Al-Meezan
Let Al-Meezan Flourish
Ramadhan Appeal
Fitra's Sponsored Walk
This fund was fully expended at 31st March 2024.
Sponsor a Student
Funding received towards sponsoring students who are unable or struggling to pay their class fees.
Gardening Fund
Represents funding received from Arnold Clark to start a gardening project at Al-meezan. This fund was fully expended at 31st March 2024.
Outdoor Appeal Fund
Donations received during the year from members, students, users and supporters of Al-Meezan in the new appeal to start a outdoor project at Al-meezan.
Fitrah Appeal Fund
Donations from fundraising events received during the year from users and supporters of Al-Meezan towards the running costs of the Fitrah Playgroup.
Lecture Theatre Sound System Fund
Donations received during the year from members, students, users and supporters of Al-Meezan in the new appeal to fund the purchase of a new sound system for the lecture theatre.
Directors are active participants in Al-meezan including at classes and fundraising events. Any participants fees or other transactions are at 'arms length' and the Directors may not use their position to their advantage. There were no disclosable related party transactions during the year (2024 - none).