Registered Charity Number 1020820
Sutton Coldfield and Erdington Muslim Welfare Association
Annual Report & Financial Statements
31[st] August 2022
SCMA
Annual Report & Financial Statements
Contents
| Page | |
|---|---|
| Trustee'sReport | 3 |
| Independent Accountants'report | 9 |
| Statement of FinancialActivities | 10 |
| Balancesheet | 11 |
| Notes to theaccounts | 12 |
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The Report of the Trustees for the year ended 31[st] August 2022
Introduction
The trustees present their annual report and accounts for the year ended 31[st] August 2022.
The Board of Trustees are satisfied with the performance of SCMA during the year and the position at 31[st] August 2022. 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:
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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 socioreligious betterment of the entire Muslim community on a non-political basis;
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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;
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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. We continue to provide space for social distancing during the Friday prayers.
Taraweeh and I’tikaaf facility offered in Ramadhan
We have continued to provide daily Taraweeh salah during Ramadhan with the help of our dedicated Huffaz. This has been extremely well attended again. In addition, facilities were offered for members for I’tikaaf. Several members spent the last days of Ramadhan in I’tikaaf in the masjid during the year.
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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.
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. The project had to be postponed due to the Covid 19 pandemic but we are delighted that this has now recommenced and the first phase, which entailed getting the dropped kerb extended to facilitate a separate entry and exit has been completed. Work on the actual car park redesign will start 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 with a significant waiting list, which we are trying to address through additional teachers.
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 has been completely revamped in the year and this has been received really well by the congregation with more traffic coming through the website. The 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
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.
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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 and the process of transitioning is still underway.
The first phase phase of the entrance widening project has been completed which entailed extended the dropped kerb to facilitate separate entry and exit in and out of the masjid. Work on the actual car park redesign will commence next year.
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
To complete this project by redesigning the cark park to help with the safety of the car park and improve traffic flow for us and for people on the main road.
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Medium to long term aims:
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Make the library operational
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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
Dr A Chaudary
Mr N Awan
Dr S Quraishi
Dr S Muzaffar Dr S Nadeem
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Dr Zahid Zaheer
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
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
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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.
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 £233,202 (2021: £137,216). A majority of the expenditure is spent on delivering the charitable activities as stated in the Charity's aims and objectives.
After the Covid 19 pandemic and the impact it had on the finances of the charity, we have seen a really good resurgence in donations driven in part by the ability for people to donate through the website.
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
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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:-
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To prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law);
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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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.
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 10 February 2023.
Dr S Nadeem
Trustee
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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 2022.
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 :- 10 February 2023
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SCMA Statement of Financial Activities for the year ended 31 August 2022
| Notes Income & Endowments from: Donations & legacies 4 Total Expenditure on: Raising funds Charitable activities 5 Total Net income (expenditure) Reconciliation of funds Total funds brought forward Total Funds carried forward 12 |
Unrestricted Restricted Total Last Year Funds Funds Funds Total Funds 2022 2022 2022 2021 £ £ £ £ 233,202 - 233,202 137,216 |
|---|---|
| 233,202 - 233,202 137,216 |
|
| - - - - 144,278 - 147,278 95,933 |
|
| 144,278 - 144,278 95,933 |
|
| 88,924 - 88,924 41,283 495,547 1,000 496,547 455,264 |
|
| 584,471 1,000 585,471 496,547 |
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.
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Charity Balance Sheet SCMA Balance Sheet as at 31 August 2022
| Notes The assets and liabilities of the charity : Fixed assets Tangible assets 8 Total fixed assets Current assets Debtors 9 39,568 Cash at bank and in hand 150,353 Total current assets 189,921 Creditors:- amounts due within one year 10 (2,929) Net current assets Total assets less current liabilities Creditors:- Amounts falling due in more than one year 11 Net assets Total Funds Unrestricted income funds Unrestricted revenue accumulated funds 584,471 Total unrestricted funds Restricted income funds Restricted revenue accumulated funds 1,000 Restricted capital funds Total restricted funds Total charity funds 12 D S Nadeem Trustee Approved by the board of trustees on10 February 2023 |
39,568 150,353 |
2022 £ 398,479 398,479 186,992 585,471 - 585,471 584,471 1,000 585,471 |
25,611 71,021 |
2021 £ 402,564 |
|---|---|---|---|---|
| 402,564 93,983 |
||||
| 189,921 | 96,632 | |||
| (2,649) 495,547 1,000 |
||||
| 496,547 - |
||||
| 496,547 | ||||
| 495,547 1,000 496,547 |
The notes on pages 12 to 20 form an integral part of these accounts.
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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
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.
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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
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.
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Notes to the accounts (continued)
2. Surplus for the financial year
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| This | is stated after crediting: | £ | £ | ||
| Revenue from ordinary activities | 233,202 | 137,216 | |||
| And | after charging: | ||||
| Depreciation of owned fixed assets | 4,085 | 4,141 | |||
| 3. | Expenses paid to trustees | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| The | aggregate amount of expenses paid to trustees | was | Nil | Nil | |
| 4. Income & Endowments by Activity |
|||||
| 2022 | 2021 | ||||
| Court House | Total | Total | |||
| £ | £ | £ | |||
| Income & Endowments | |||||
| Donations & legacies | 233,202 | 233,202 | 137,216 | ||
| Total Income | 233,202 | 233,202 | 137,216 |
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Notes to the accounts (continued)
| Raising funds Charitable activities Governance costs Total resources expended Net Income by activity |
- - - 144,278 144,278 95,933 - - - |
|---|---|
| 144,278 144,278 95,933 |
|
| 88,924 88,924 41,283 |
5. Analysis of charitable expenditure by activity
| Nature of charitable expenditure Activities undertaken directly Support costs of charitable activities Total charitable expenditure analysed by activity |
Court House Total 2022 Total 2021 £ £ £ 75,639 75,639 33,685 68,639 68,639 62,248 144,278144,278 95,933 |
|---|---|
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 2022 Total 2021 £ £ £ 68,639 68,639 62,248 |
|---|---|
| 68,639 68,639 62,248 |
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Notes to the accounts (continued)
| 7. Staff Costs and Emoluments Gross Salaries Employer's National Insurance Pension costs Numbers of full time equivalents employees Religious Services |
2022 £ 28,520 - 668 29,188 2022 1 |
2021 £ 26,938 - 620 |
|---|---|---|
| 27,558 | ||
| 2021 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.
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Notes to the accounts (continued)
8. Tangible functional fixed assets
| Freehold Land and buildings £ Asset cost, valuation or revalued amount At 1 September 2021 440,336 At 31 August 2022 440,336 Accumulated depreciation and impairment provisions At 1 September 2021 38,082 Depreciation on revaluation - Charge for the year 4,023 At 31 August 2022 42,105 Net book value At 31 August 2021 402,254 At 31 August 2022 398,231 |
Fixtures and Fittings £ 3,085 3,085 2,775 - 62 2,837 310 248 |
Total £ 443,421 |
|---|---|---|
| 443,421 | ||
| 40,857 - 4,085 |
||
| 44,942 | ||
| 402,564 398,479 |
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Notes to the accounts (continued)
9. Debtors 2022 2021 £ £ Other Debtors (Gift Aid and insurance prepayment) 39,568 25,611
| 10. Creditors: amounts falling due within one year | 2022 | 2021 |
|---|---|---|
| £ | £ | |
| Trade creditors | - | - |
| Accruals | 2,929 | 2,649 |
| 11. Creditors: amounts falling due in more than one year | 2022 | 2021 |
| £ | £ | |
| Unsecured loans | - | - |
Unsecured loans are loans taken from members of the community.
12. Analysis of assets and liabilities representing funds
| At 31 August 2022 Tangible Fixed Assets Current Assets Current Liabilities Long Term Liabilities |
Unrestricted funds £ 398,479 188,921 (2,929) - 584,471 |
Restricted funds £ - 1,000 - - 1,000 |
Total Funds £ 398,479 189,921 (2,929) - 585,471 |
|---|---|---|---|
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Notes to the accounts (continued)
| At 1 September 2021 Unrestricted Funds Tangible Fixed Assets 402,564 Current Assets 95,632 Current Liabilities (2,649) Long Term Liabilities - 495,547 The individual funds included above are :- Funds at 2021 £ Court House 496,547 496,547 Analysis of movements in funds as shown in the table above Income & Endowments £ Court House 233,202 233,202 |
Unrestricted Funds 402,564 95,632 (2,649) - |
Restricted funds - 1,000 - - |
Total Funds 402,564 96,632 (2,649) - |
Funds at 2022 £ 585,471 |
||
|---|---|---|---|---|---|---|
| 495,547 Funds at 2021 £ 496,547 |
1,000 Movements in Funds as below £ 88,924 |
496,547 | ||||
| Transfers Between Funds £ - |
||||||
| 88,924 Outgoing Resources £ 144,278 144,278 |
- Gains & Losses £ - - |
585,471 | ||||
| Movement in funds £ 88,924 88,924 |
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Notes to the accounts (continued)
13. Endowment Funds
The charity had no endowment funds in the year ended 2022 or in the year ended 2021.
14. Related Parties
There are no known related parties.
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