The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. 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).

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 KMWA's governing document, the Companies Act 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 immediate short-term goals along with all the other activities KMWA is already engaged with are:

1. Maintenance and Upkeep of the current Masjid building

2. Preparations for Ramadhan

3. Continue fundraising for the New Masjid

4. Improve Organisational Excellence

5. Improve community communications

The construction of the New Masjid has been a priority in the long-term development of the infrastructure and facilities for the community. This project has been both involving and time-consuming for all those engaged, however good progress has been made over the last few years. And by the end of this financial year Phase 1 (Ground works), Phase 2 (Slabs) and Phase 3 (Floors and basic structure) has been completed. Since August 2024 the building works of the New Masjid has been on hold due to insufficient funds.

The majority of these activities are trustee and coordinator driven but we need to do more to have a balanced skill set in the BOT and a united, driven team of Trustees and Coordinators to meet the challenges of the future and position ourselves for the New Masjid. Every April there are elections to bring new blood, new energy and those who have the skills to come on board and we encourage that.

The policies adopted in furtherance of these objectives are consistent and there has been no change in these during the year.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the KMWA should undertake.

The construction of the new Masjid has been a priority in the long-term development of the infrastructure and facilities for the community. This project has been both involving and time-consuming for all those engaged, however good progress has been made over the last few years. And by the end of this financial year Phase 1 (Ground works), Phase 2 (Slabs) and Phase 3 (Floors and basic structure) has been completed.

The existing Masjid has continued with its ongoing activities. Ramadhan including daily Iftar arrangements for the community with hundreds attending was a great success. The Masjid is completely at full capacity during Traweh Jamaat, Friday Salat and for the two Salat -ul-Eids. A community Iftar “Taste Ramadhan 2024 ” and “ Masjid Open Day 2024” was also arranged for none-Muslims to experience a part of Ramadhan and meet the community which was highly appreciated.

The Imams have led the prayers and educated the community on many relevant topics that are important for Muslims. Guest speakers were arranged when needed to bring fresh inspiring talks. The Children’s Madrasa (School) operated very well during the weekend and evenings to meet the educational needs of the Muslim Children and their Parents.

The School liaison group has been quite active arranging school visits to the Masjid and making presentations to school assemblies in Medway for a better understanding of Islam and Muslims. Over ten local schools visited with an average of 60-90 children in attendance. The Kids group has continued with its range of activities such as kite flying and Micro bit coding workshops to create opportunities for local children and adults to have fun and learn new skills through participating in extracurricular activities. The Youth group had to move out due to limited space in the Masjid for sporting activities. But we will continue to work with our youth and build an environment where the youth are engaged and contribute to the well-being of the community and the Masjid. The Ladies group too have continued with their good work to full-fill the needs and aspirations of the Muslim women and their families through weekly programs. The Volunteers group have continued with the collection and distribution of food and essential items to the needy in Medway and refugee families. The Outreach group have made great inroads in bridging the gap with other communities in Medway for a better understanding and community cohesion. This has been achieved through being members of Medway Interfaith Action (MIFA) and participating in Interfaith Week and the annual Peace Walk in Medway as well as regular participants in Independent Advisory Group (IAG) to the Police.

The Trustees aim to maintain unrestricted free reserves equivalent to approximately six months' operating expenditure, including employee salaries, which equates to £40,681, in line with the Charity's Constitution. This provides sufficient financial stability to meet ongoing commitments, manage unforeseen events, and ensure the continued delivery of the Charity's objectives.

The level of reserves is reviewed annually by the Trustees and adjusted where appropriate in light of the Charity's financial position and future commitments.

Under its Memorandum of Association, the charity has power to invest in any way the trustees wish.

The KMWA will continue to expand and develop its activities to provide improved communication channels, increasing community participation, and expanding educational, welfare, and youth programmes to better serve the needs of the local community.

Governing Document

The KMWA is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Reference And Administrative details

Registered Company number: 04324371

Registered Charity number: 1117731

Registered office: 114 Canterbury Street, Gillingham, Kent ME7 5UH

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Recruitment and appointment of Trustees

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of the KMWA.

Organisational structure

The board of trustees administers the charity. The board meets quarterly.

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of KMWA. New trustees are given a full induction by the director. Trustees can retire then they wish as they do not serve under a fixed term of tenure.

At present KMWA does not consider itself part of a wider network.

KMWA has no tied organisations or companies.

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Public Benefit Statement

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Statement of Trustees' Responsibilities

The trustees (who are also the directors of KMWA for the purposes of company law) 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).

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

- select suitable accounting policies and then apply them consistently

-observe the methods and principles in the Charities SORP

-make judgements and estimates that are responsible and prudent;

-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

- there is no relevant audit information of which the charitable company's auditors are unaware; and

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The auditors, Kaiser Nouman Nathan LLP, will be proposed for appointment at the forthcoming Annual General Meeting.

The report of the Trustees was approved by the Board of Trustees and signed on it's behalf by:

Qualified opinion

We were engaged to audit the financial statements of Kent Muslim Welfare Association (the ‘KMWA’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet 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).

In our opinion, except for the effects of the matter described in the emphasis of matter and as described in the basis for the qualified opinion paragraph, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis of Qualified opinion

The evidence available to us was limited because we were appointed as auditors during the year and we have been unable to carry out auditing procedures necessary to obtain adequate assurance regarding the opening balances and comparatives figures because the financial statements for the year ended 31 March 2024 were unaudited. Any adjustments to the opening balances would have a consequential effect on the net movement in funds (profit) for the year.

We were unable to obtain alternative means to satisfy ourselves concerning loan existence, fixed asset valuation (Asset under construction - New Mosque) including the ongoing legal dispute with the contractor in terms of payments demanded.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the KMWA 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.

We draw your attention to Note 1.2 and Note 19 to the financial statements that describes the directors/trustees assessment for the charity to appropriately adopt the going concern basis of accounting in preparing the financial statements. Our opinion is not modified in this respect of this matter.

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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 if 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 course of 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the comparative, balances as at 31 March 2024 were unaudited and we were unable to obtain alternative means to satisfy ourselves concerning loan existence, fixed asset valuation (Asset under construction) and the ongoing legal dispute with the contractor in terms of payments demanded.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

The Report of the Trustees has been prepared in accordance with applicable legal requirements.

Except for the matters described in the basis for qualified opinion, In the light of the knowledge and understanding of the KMWA and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

Arising solely from the limitation on scope of our work relating to comparatives and valuation of assets and liabilities under construction, referred above:

we were unable to determine whether adequate accounting records had been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made.

we have not received all the information and explanations we require for our audit; or

the Trustees were not entitled to take advantage of the small companies' exemptions from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

As explained more fully in the statement of Trustees responsibilities, the Trustees who are also the directors of the KMWA for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they 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 KMWA’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 charitable company or to cease operations, or have no realistic alternative but to do so.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the charitable company through discussions with management and from our commercial knowledge and experience of the charity sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the association, including the Companies Act 2006, Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019), Health and safety legislation and data protection;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence if available; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

- we assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations, including the ones that ensure that the grants are used for intended purposes.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested donations received and grant received for accuracy and completeness;

- tested journal entries to identify unusual transactions if any;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud. we:

- we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any materials misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or collusion.

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.

Other matters

Comparative information in the financial statements is derived from the company’s prior period financial statements which were not audited. This is non-compliance with the Companies Act 2006.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Kent Muslim Welfare Association is a private company limited by guarantee incorporated in England and Wales. The registered office is 114 Canterbury Street, Gillingham, Kent, ME7 5UH.

The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The trustees, having made appropriate enquiries, consider that adequate resources exist for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the year ended 31 March 2025. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity's financial position or going concern.

Preparation of the accounts requires the trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

-​estimating the useful economic life of tangible fixed assets.

-​allocation of support costs across charitable activities.

-​impairment of properties.

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.

Grant income

Government grants, including non-monetary grants shall not be recognised until there is reasonable assurance that:

1. the entity will comply with the conditions attached to them; and

2. the grants will be received.

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.

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to the strategic management of the charity.

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

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.

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to be present value of the future cash receipt where such discounting is material.

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow Group companies and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest.

The company is considered to pass the tests set out in Sch. 6, para. I of the Finance Act 20 IO and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Creditors and provisions are recognised at the moment the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material.

Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

The average monthly number of employees during the year was:

Investment property comprises of 3 Bedroom Terraced House at 30 Dawes Street ME7 5UQ. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 March 2025 by Tate Woodburn Chartered Surveyors, who are not connected with the KMWA. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

At 31 March 2025, the charity owed £285,000 (2024: £285,000) in respect of unsecured, interest-free Qarz-e-Hasana loans from trustees and persons connected with trustees. The loans were provided in prior years to support the construction of the new mosque and have varying repayment dates. No interest was charged or paid during the year. All loans were unsecured and no guarantees were provided by the charity.

During the year, the charity received donations of £17,300 (2024: £14,630) from trustees and persons connected with trustees. These donations were made without conditions that would, or might require the charity to alter significantly the nature of its existing activities.

The charity has entered into a liability limitation agreement with Kaiser Nouman Nathan LLP, the statutory auditor, in respect of the statutory audit for the year ended 31 March 2025. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements and was approved on 15 October 2025.

The charity is in legal dispute with Ruprai Construction Ltd in relation to a claim for unpaid invoices amounting to £808,704 in relation. This claim is in relation to building work on the new mosque (Asset under construction) and has not been recognised in these financial statements as the trustees dispute the validity of the claim. The matter has been referred to the charity's solicitors and remains subject to ongoing legal proceedings. The trustees are unable to determine the outcome of the dispute at the date these financial statements were approved.