Registered Charity Number 1020820
# Sutton Coldfield and Erdington Muslim Welfare Association
Annual Report & Financial Statements
31[st] August 2021
**SCMA Annual Report & Financial Statements**
|**Contents**|||
|---|---|---|
|||**P**|
||**age**||
|Trustee'sReport||3|
|Independent Accountants'report||9|
|Statement of FinancialActivities||10|
|Balancesheet||11|
|Notes to theaccounts||12|
**2**
## **The Report of the Trustees for the year ended 31[st] August 2021**
**Introduction**
The trustees present their annual report and accounts for the year ended 31[st] August 2021.
The Board of Trustees are satisfied with the performance of SCMA during the year and the position at 31[st] August 2021. The Board consider that SCMA is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations. The trustees have considered the going concern assumption and are not aware of any significant doubts about the charity’s ability to continue as a going concern.
## **Objectives, Aims and Activities of the Charity**
## **Aims of the Association**
We are a faith based organisation that endeavours to serve the Sutton Coldfield community by providing its members and their families to fulfill their religious, social, health, and cultural well-being to build mutual trust and understanding between the local communities and promote racial harmony and religious tolerance.
## **Strategy**
Provide communal centre for the Muslim Community to fulfill its religious and social needs.
## **Objectives**
We work to:
- promote and advance the religion of Islam in accordance with Al-Quran and the Sunnah of the Prophet Muhammed (pbuh) and to endeavour and assist in promoting and enhancing the socio-religious betterment of the entire Muslim community on a non-political basis;
- to provide facilities to meet the needs of the local community across the age spectrum and in advancement of education, health, leisure, social and religious welfare;
- • to actively encourage and enhance religious tolerance and community cohesion of the wider society.
## **Activities during the year**
## _1. Promoting and enhancing the religion of Islam_
## _Congregational Prayers_
We have continued to provide facility for congregational prayers with two Imams leading the daily Salah’s as well as weekly Jummah Salah. The Imams have also been providing regular faith based talks on a weekly basis. We have continued to offer facilities for men and women to offer all daily salah in congregation. In light of the Covid 19 pandemic, we have also continued to offer social distancing within the mosque.
_Taraweeh and I’tikaaf facility offered in Ramadhan_
**3**
Due to the Covid 19 restrictions last year there were no Taraweeh prayers held at the masjid but thankfully this year due to the improving situation Taraweeh prayers were held at the masjid albeit with social distancing.
## _Guest lectures and workshops_
Guest speakers have been invited over the last year to present talks and workshops on various subjects at the Courthouse. These have been well attended and positive feedback received from members and guests who attended.
_Regular faith based talks by the Imam_
The Imams have kindly been delivering regular talks targeted at a wide audience, on various subjects. The frequency of these talks was reduced due to the Covid 19 restrictions in place for part of the year.
## _2. Provision of facilities to the local community_
## _Car park entrance widening project_
In light of health and safety considerations and to improve the flow of traffic in and out of the car park, we initiated a project to widen the car park entrance. However, due to the impact of Covid 19 this project was paused. We aim to re-establish this in the coming year.
_Supplementary Education for Children from ages 5-16_
Children’s supplementary education for the 5-16 age group is continuing and demand for this service has been increasing.
_Prayers and facility for quiet contemplation_
Dedicated areas are provided for all members and guests to offer daily salah in congregation or individually, offer prayers, read Quran and remember their creator.
_Education for adults_
Adults have been able to partake in Islamic based talks as well as classes to improve their Arabic reading of the Holy Quran.
## _3. Encouraging and enhancing religious tolerance and community cohesion_
_Website_
The Association’s website continues to provide information about the various activities at the Court House and its content is updated regularly for the use of members and other interested individuals.
_Police car parking facility_
Several car parking spaces continue to be made available to our neighbours at Sutton Coldfield Police Station. This has been appreciated by them and has helped develop a very good relationship between us.
_Community liaison_
**4**
We have participated in meetings with inter faith and community groups in the local community.
Other activities that have been undertaken in the year include attendance at the Remembrance Day parade by members of the congregation.
## **Public benefit that is provided by the charity**
In setting out our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit. The main focus of our activities is intended to provide the facilities for the community of Sutton Coldfield.
## **Update on prior year objectives**
The conversion of the charity structure to CIO was approved at an EGM on 1 August 2021.
We were also unable to progress the car park entrance widening project due to Covid 19 but will look to re-establish this in the coming year.
We also established the provision of Nikkah services at the mosque during the year, which had been a long-term goal.
## **Building for the Future**
_1. Immediate Priorities_
We aim to carry out the following over the next twelve months:
## _Widening of the entrance to the car park_
Currently there is only one entrance and exit into the car park and we aim to widen the area to create a separate entrance and a separate exit way.
2. Medium to long term aims:
- Make the library operational
- Provision of funeral services
## **Name, registered office and constitution of the charity**
The full name of the charity is Sutton Coldfield and Erdington Muslim Association. The charity is also known by the name Sutton Coldfield Muslim Association (SCMA)
The legal registration details are:
Date of formation: 1[st] May 1993 Charity Registration Number 1020820 The Registered Office is The Court House, Lichfield Road, Sutton Coldfield, Birmingham
The Board of Trustees are:
Dr N Khan
**5**
Dr A Chaudary
Mr N Awan
Dr S Quraishi
Dr S Muzaffar
Dr S Nadeem
## **The Bankers are:-**
HSBC, Sutton Coldfield
## **Structure, Governance and Management**
The current working trustees and committee members are responsible for the general control and management of the charity. These members give their time freely and receive no remuneration or other financial benefits. The members have regular meetings and are responsible for all decisions taken in relation to running the Court House and activities provided by the charity.
## **Risk Management**
The Trustees and Committee members are satisfied that all systems are in place or arrangements in hand to manage the risks that have been identified, having ensured segregation of duties. In particular, Insurance cover is in place and the finances of the centre are kept under review.
Appropriate Disclosure and Barring Service (DBS) checks, supported by regularly reviewed policies are made for all those who work with children or other vulnerable groups within the centre.
Health and Safety is a key priority and measures have been put in place for regular monitoring and assessments to keep our members and guests safe. Fire and Risk Assessments are regularly undertaken and recorded.
Security is reviewed regularly and improved as required.
As a registered charity, the association endeavours to assist in community welfare, faith matters and education. All our community facilities and activities are well communicated. We welcome the participation of all in our community and want to make the centre an accessible and welcoming venue where all who wish to know more about the Islamic faith, can gather together to learn about the religion and worship. All the facilities are provided to both men and women.
## **Nature of the Governing Document and constitution of the charity**
The Charity is an unincorporated association governed by a trust deed. Eligibility for membership of the charity and membership of the board of trustees is governed by the trust deed. There are no restrictions in the governing document on the operation of the charity or on its investment powers, other than those imposed by charity law.
## **Recruitment and appointment of new trustees**
**6**
The process involves determining the optimum skills, knowledge and experience mix for the current operational climate and needs, identifying potential members, promoting and explaining the activities of the Board to potential members. Quality, characteristics and qualifications are decided upon when selecting members of the Board of Trustees. There is then an election process to allow the wider membership to elect from the pool of nominees.
## **Relationships between the charity and related parties**
The induction of new Trustees would include an explanation of the function of the Board of Trustees and appointing a mentor for the new member to the Board of Trustees. An overview of the organisation and its activities is provided. On-going appropriate training is recommended.
## **The contribution of volunteers**
SCMA has been dependant on volunteer support in order to establish SCMA and set the foundations for its future success. Volunteers are an important resource in both our faith and community support work. We have volunteers who are involved in our activities who willingly give their time freely. The Trustees are professionals in their respective fields and they, together with the office bearers, continue to manage the association on a completely voluntary basis with guidance from the Charity Commission. We encourage all members of the centre to be involved in voluntary activities and share their skills. The Trustees would like to thank all those who have volunteered their time to SCMA.
## **Financial Review**
## _Policies on reserves_
The trustees have resolved to establish reserves to provide for future activities, and to provide funding for the expected expenditure for six months ahead. The policy on reserves is that the existing assets are retained to produce income, which is wholly utilised to support existing activities. There is no intention in the long term to either increase or reduce the capital significantly. This policy is justified in that it is necessary to preserve income at the present levels in order to maintain the activities of the charity.
The principal funding sources are voluntary donations primarily from the local community. The board of trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations in respect of each fund.
The general reserves of the charity are not restricted to any specific projects and can be utilised by the trustee’s in accordance with the charity’s objectives.
## _Availability and adequacy of assets of each of the funds_
The board of trustees are satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
## _Transactions and Financial position_
The financial statements are set out on pages 1 0 to 20.
**7**
The financial statements have been prepared in accordance with Statement of Recommended Practice (October 201) applicable to charities. As stated in the introduction to this report, the trustees consider the financial performance by the charity during the year to have been satisfactory.
The Statement of Financial Activities show Income & Endowments for the year of a revenue and realised nature of £137,216 (2020: £101,229). A majority of the expenditure is spent on delivering the charitable activities as stated in the Charity's aims and objectives.
Due to Covid 19 and the associated lockdowns, there were a number of measures undertaken to ensure the safety of all users of the mosque. These measures included social distancing, mask wearing and more regular cleaning and sanitisation. In line with government guidelines, the mosque was also closed for a period of time. The financial impact on the charity was of increased cleaning costs and reduction in donations particularly at Jummah prayers. This was partially offset by reduced utility costs as the mosque was closed as well as lower maintenance costs due to lack of use of the facilities.. The trustees believe the impact has been limited as the majority of the congregation have regular standing orders setup. Income levels in fact increased compared to the previous year, as the period of lockdown was shorter in the current financial year.
## **Trustees' Responsibilities**
The charity’s trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations, the Charities (Accounts and Report) Regulations 2008, to prepare the financial statements in accordance with SORP 2019, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the SORP 2019. In particular, charity law requires the Trustees, if they prepare accounts on an accrual basis, to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Trustees are required to:-
- To prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law);
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements **;**
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
**8**
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the charity legislation. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are also responsible for the contents of the Trustees' report, and the accountant preparing the accounts has no responsibilities in relation to the Trustees' report.
This report was approved by the board of trustees on 20[th] September 2022.
Dr S Nadeem
Trustee
**9**
## **Independent examiner’s report to the trustees of Sutton and Erdington Muslim Welfare Association**
I report to the trustees on my examination of the accounts of the Sutton and Erdington Muslim Welfare Association (the Charity) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the _Charities Act_ 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under s. 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under s. 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
(1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
(2) the accounts do not accord with those records; or
(3)the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the _Charities (Accounts and Reports) Regulations_ 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
The Examiner's relevant professional qualification is: Chartered Certified Accountant
Virtus FS City Road, London.
The date upon which this report was completed is :- 20[th] September 2022
**10**
**SCMA**
## **Statement of Financial Activities**
**for the year ended 31 August 2021**
**Unrestricted Restricted Total Last Year**
**Funds Funds Funds Total Funds**
**11**
**Notes 2021 2021 2021 2020**
**£ £ £ £**
_**Income & Endowments from:**_
Donations & legacies
4
137,216 - 137,216 101,229
**12**
**Total**
**137,216 - 137,216 101,229**
_**Expenditure on:**_
Raising funds
- - - -
_**Charitable activities**_
5
95,933 - 95,933 104,888
**13**
**Total**
95,933 - 95,933 104,888
**Net income (expenditure)** 41,283 - 41,283 (3,659)
**Reconciliation of funds**
**14**
_**Total funds brought forward**_
454,264 1,000 455,264 458,923
**Total Funds carried forward** 12
**495,547 1,000 496,547 455,264**
All activities derive from continuing operations
The Statement of Financial Activities includes all gains and losses recognised in the year The notes on pages 12 to 20 form an integral part of these accounts.
**15**
**Charity Balance Sheet**
**SCMA Balance Sheet as at 31 August 2021**
**Note s**
**2021**
**2020**
**16**
||||||||
|---|---|---|---|---|---|---|
|||||**£**||**£**|
|||**_The assets and liabilities of the_**
**_charity :_**|||||
||||||||
|||**Fixed assets**|||||
|||Tangible assets
8||402,564||406,705|
|||**_Total fxed assets_**||402,564||406,705|
|||**Current assets**|||||
|||Debtors
9|25,611||17,028||
|||Cash at bank and in hand|71,021||34,247||
|||**_Total current assets_**|96,632||51,275||
|||**Creditors:-**|||||
|||amounts due within one year
10|(2,649)||(2,716)||
|||**_Net current assets_**||93,983||48,559|
|||**_Total assets less current_**
**_liabilities_**||496,547||455,264|
|||**Creditors:-**
Amounts falling due in more than
one year
11||-||-|
||||||||
|||**Net assets**||496,547||455,264|
|||**_Total Funds_**|||||
|||**Unrestricted income funds**|||||
|||Unrestricted revenue accumulated
funds|495,547||454,264||
|||**Total unrestricted funds**||495,547||454,264|
|||**Restricted income funds**|||||
|||Restricted revenue accumulated funds|1,000||1,000||
|||**Restricted capital funds**|||||
|||**Total restricted funds**||1,000||1,000|
|||**Total charity funds**
12||496,547||455,264|
|||||||**17**|
D S Nadeem
Trustee
Approved by the board of trustees on 20[th] September 2022
**The notes on pages 12 to 20 form an integral part of these accounts.**
**18**
**Notes to the accounts**
**1. Accounting policies**
## **Basis of preparation of the accounts**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (October 2019). Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The particular accounting policies adopted are set out below.
## **Accounting convention**
The financial statements are prepared, on a going concern basis, under the historical cost convention.
**Income & Endowments**
**19**
Income & Endowments are accounted for on a receivable basis.
## **Recognition of liabilities**
Liabilities are recognised on the accruals basis in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the Statement of Recommended Practice for Accounting and Reporting (October 2019) issued by the Charity Commissioners for England & Wales.
## **Resources Expended**
In particular the policy for including items within costs of generating funds, charitable activities and governance costs is:
## **Raising funds**
The costs of raising funds shall include fundraising costs.
## **Charitable activities**
Charitable expenditure shall include all expenditure directly related to the objects of the charity including the following:-
The cost of goods, services, and ancillary trading costs that have been incurred in charitable activities. Any staff costs incurred as a direct result in delivering the charitable activities are therefore relevant salary costs that are treated as direct charitable expenditure.
## **Support costs of activities**
Support costs of activities for charitable purposes comprising any costs including salary costs of any staff that are involved with supporting the charitable activities.
## **Governance costs**
Governance costs shall include all expenditure directly incurred in the management of the charity's assets and compliance with charitable and statutory requirements.
## **Notes to the accounts (continued)**
## **Allocation of costs within types of resources expended**
The methods and principles for the allocation and apportionment of all costs between the different activity categories of resources set out above are:-
There are a number of costs, where it is impracticable to allocate these costs precisely between administration and charitable expenditure and the trustees have allocated such costs on the basis of reasonable estimates as follows :-
## **Staffing costs and related expenses**
On the basis of salary costs and estimated time spent on different activities
## **Premises costs and related expenses**
**20**
On the basis consistent with the use of resources.
## **Taxation**
As a registered charity, the company is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities
## **Funds structure policy**
The charity maintains a general unrestricted fund, which is expended at the discretion of the trustees in furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.
Restricted funds have been provided to the charity for particular purposes, and it is the policy of the board of trustees to carefully the monitor the application of those funds in accordance with the restrictions placed upon them.
**21**
## **Notes to the accounts (continued)**
**2. Surplus for the financial year**
|||**2021**|**2020**|
|---|---|---|---|
|This is|stated after crediting:|**£**|**£**|
|Revenue from ordinary activities||137,216|101,229|
|And after charging:||||
|||||
|Depreciation of owned fxed assets||4,141|4,201|
|**3.**|**Expenses paid to trustees**|||
|||**2021**|**2020**|
|||**£**|**£**|
|The aggregate amount of expenses paid to trustees was||Nil|Nil|
|||||
|**4.**
**Income & Endowments by Activity**|**4.**
**Income & Endowments by Activity**|
|---|---|
||**2021**
**2020**|
||**Court House**
**Total**
**Total**|
||**£**
**£**
**£**|
|**_Income & Endowments_**||
|Donations & legacies|137,216
137,216
101,229|
|**Total Income**|137,216
137,216
101,229|
14
## **Notes to the accounts (continued)**
_**Raising funds Charitable activities Governance costs**_ **Total resources expended Net Income by activity**
||-|-|-|
|---|---|---|---|
||95,933|95,933|104,888|
||-|-|-|
||95,933|95,933|104,888|
||41,283|41,283|(3,659)|
**5. Analysis of charitable expenditure by activity**
||**Court House**
**Total 2021**
**Total 2020**
**£**
**£**
**£**|
|---|---|
|||
|||
|**Nature of charitable expenditure**||
|Activities undertaken directly|33,685
33,685
46,789|
|Support costs of charitable activities|62,248
62,248
58,099|
|**Total charitable expenditure analysed by activity**|95,933
95,933
104,8
88|
An explanation of the main features of charitable expenditure is given in note 1 to the accounts
**6. Analysis of Total Support Costs by Activity Nature of support costs** Religious Services **Total support costs analysed by activity**
||**Court House**|**Total 2021**|**Total 2020**|
|---|---|---|---|
||**£**|**£**|**£**|
||62,248|62,248|58,099|
||62,248|62,248|58,099|
**23**
|**Notes to the accounts (continued)**
**7.**
**Staf Costs and Emoluments**|**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Gross Salaries|26,938|27,999|
|Employer's National Insurance|-|-|
|Pension costs|620|654|
||27,558|28,653|
|**Numbers of full time equivalents employees**|**2021**|**2020**|
|Religious Services|1|1|
Volunteers have donated an unquantifiable amount of time to SCMA, which is impossible to reflect.
There were no fees or other remuneration to the trustees.
There were no employees with emoluments in excess of £60,000 per annum.
**25**
## **Notes to the accounts (continued)**
**8. Tangible functional fixed assets**
||**Freehold**
**Land and**
**buildings**|**Fixtures**
**and**
**Fittings**|**Total**|
|---|---|---|---|
||**£**|**£**|**£**|
|||||
||440,336|3,085|443,421|
||440,336|3,085|443,421|
|**nt**|**provisions**|||
||34,019|2,697|36,716|
||-|-|-|
||4063|78|4,141|
||38,082|2,775|40,857|
|||||
||406,317|388|406,705|
||402,254|310|402,564|
**Asset cost, valuation or revalued amount** At 1 September 2020 At 31 August 2021
**Accumulated depreciation and impairment provisions** At 1 September 2020 34,019 Depreciation on revaluation - Charge for the year 4063 At 31 August 2021 38,082 **Net book value**
At 31 August 2020
At 31 August 2021
**26**
## **Notes to the accounts (continued)**
**9. Debtors 2021 2020 £ £** Other Debtors (Gift Aid and insurance 25,61 17,02 prepayment) 1 8
|**10. Creditors: amounts falling due within one year**
**2021**
**2020**|**10. Creditors: amounts falling due within one year**
**2021**
**2020**|
|---|---|
|**£**
**£**||
|Trade creditors
-
-||
|Accruals
2,649
2,716||
|||
||**11. Creditors: amounts falling due in more than one**
**year**
**2021**
**2020**|
||**£**
**£**|
|||
||Unsecured loans
-
-|
Unsecured loans are loans taken from members of the community.
## **12. Analysis of assets and liabilities representing funds**
**27**
|**At 31 August 2021**|**Unrestricte**
**d**|**Restricte**
**d**|**Total**
**Funds**
**£**
402,564
96,632
(2,649)
-
496,547|
|---|---|---|---|
||**funds**|**funds**||
||**£**|**£**||
|Tangible Fixed Assets|402,564|-||
|Current Assets|95,632|1,000||
|Current Liabilities|(2,649)|-||
|Long Term Liabilities|-|-||
||495,547|1,000||
|||||
|**Notes to the accounts (continued)**||||
|**At 1 September 2020**|**Unrestricte**
**d**|**Restricte**
**d**|**Total**
**Funds**
406,705
51,275
(2,716)
-
455,264|
||**Funds**|**funds**||
|||||
|Tangible Fixed Assets|406,705|-||
|Current Assets|50,275|1,000||
|Current Liabilities|(2,716)|-||
|Long Term Liabilities|-|-||
||454,264|1,000||
|**The individual funds included above are**|**:-**|||
||**Funds at**
**Movement**
**s**||**Transfers**
**Funds at**|
**28**
||**2020**|**in**|**Between**|**2021**|
|---|---|---|---|---|
|||**Funds**|**Funds**||
|||**as below**|||
||**£**|**£**|**£**|**£**|
|Court House|455,264|41,283|-|496,547|
||455,264|41,283|-|496,547|
||||||
|**Analysis of movements in funds as shown in the table above**|||||
||**Income &**|**Outgoing**|**Gains &**|**Movemen**
**t**|
||**Endowmen**
**ts**|**Resources**|**Losses**|**in funds**|
||**£**|**£**|**£**|**£**|
|Court House|137,216|95,933|-|41,283|
||137,216|95,933|-|41,283|
## **Notes to the accounts (continued)**
## **13. Endowment Funds**
The charity had no endowment funds in the year ended 2021 or in the year ended 2020.
**29**
## **14. Related Parties**
There are no known related parties.
**30**