2022-04-05-accounts

CHARITY REGISTRATION NUMBER: 1042630

Luton Islamic Centre

Unaudited Financial Statements

5 April 2022

Luton Islamic Centre

Financial Statements

Year ended 5 April 2022

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	3
Statement of financial activities	4
Statement of financial position	5
Notes to the financial statements	6
The following pages do not form part of the financial statements
Detailed statement of financial activities	14
Notes to the detailed statement of financial activities	15

Luton Islamic Centre

Trustees' Annual Report

Year ended 5 April 2022

The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2022.

Reference and administrative details

Registered charity name Luton Islamic Centre Charity registration number 1042630 Principal office 116 Bury Park Road Luton Bedfordshire LU1 1HE The trustees

Dr Farasat Latif Mr Bassam Ali Khalil Abu Haj Dr Mohammad Sayeid Al-Jamee Independent examiner Durrani & Co 72 Cardigan Street Luton Bedfordshire LU1 1RR

Structure, governance and management

The constitution provides for a minimum of three trustees. Where there is a requirement for new trustees, these would be identified and appointed by the remaining trustees, subject to the approval by AGM. The chair of the trustees is responsible for the induction of any new trustee which involves awareness of a trustee's responsibility, the governing document, administrative procedures, the history and philosophical approach of the charity. The trustees have taken steps to identify major risks to which the charity is exposed and systems have been established to mitigate those risks.

Objectives and activities

On constitution, the Charity's objective was to educate members and non-members of the Islamic faith to bring about the cohesion and togetherness of the local Luton community. The charity began with an initial donation. Both the initial donation and subsequent donations since have been under the terms which allow the trustees to either retain the amounts as capital or to spend them.

The objectives of the charity include;

a) The advancement of education in Islamic culture, art and history

• b) The advancement of the Islamic faith

• c) The relief of need hardship or distress amongst women by the provision of a resource centre.

Provision of a mosque, which is accessible for the five daily prayers, 365 days per year, for men and women. Delivery of Friday sermon in English. Three classes per week, available free of charge, on various aspects of the Muslims religion. Annual conference - with international scholars in attendance. Free literature distributed to non-Muslims about Islam.

1

Luton Islamic Centre

Trustees' Annual Report (continued)

Year ended 5 April 2022

Achievements and performance

Regular classes and seminars continued throughout the year that were attended by both men and women. We have continued to work closely with local mosques, the local council and the police to ensure community cohesion.

Financial review

The net incoming resources for the year was a gain of £34,598. At the end of the financial year the reserves were £454,278 of unrestricted funds and £12,007 of restricted funds.

The adequacy of the reserves policy is reviewed annually. The trustees are satisfied that reserves are presently more than adequate to meet future expenditure.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the charity, the results of these operations or the state of affairs of the charity in the financial year subsequent to the financial year ended 5th April 2022.

Plans for future periods

The trustees intend to continue to provide relief in a similar capacity as before.

The trustees' annual report was approved on 10 October 2022 and signed on behalf of the board of trustees by:

Dr Farasat Latif Trustee

2

Luton Islamic Centre

Independent Examiner's Report to the Trustees of Luton Islamic Centre

Year ended 5 April 2022

I report to the trustees on my examination of the financial statements of Luton Islamic Centre ('the charity') for the year ended 5 April 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 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 financial statements do not accord with those records; or

3. the financial statements 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.

Durrani & Co Independent Examiner

72 Cardigan Street Luton Bedfordshire LU1 1RR

3

Luton Islamic Centre

Statement of Financial Activities

Year ended 5 April 2022

			2022		2021
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	144,609	11,296	155,905	153,628
Investment income	5	11,310	–	11,310	3,690
		─────────	────────	─────────	─────────
Total income		155,919	11,296	167,215	157,318
		═════════	════════	═════════	═════════
Expenditure
Expenditure on charitable activities	6,7	130,367	2,250	132,617	153,224
		─────────	────────	─────────	─────────
Total expenditure		130,367	2,250	132,617	153,224
		═════════	════════	═════════	═════════
		─────────	────────	─────────	─────────
Net income and net movement in	funds	25,552	9,046	34,598	4,094
		═════════	════════	═════════	═════════
Reconciliation of funds
Total funds brought forward		428,726	2,961	431,687	427,593
		─────────	────────	─────────	─────────
Total funds carried forward		454,278	12,007	466,285	431,687
		═════════	════════	═════════	═════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 6 to 12 form part of these financial statements.

4

Luton Islamic Centre

Statement of Financial Position

5 April 2022

		2022	2021
	Note	£	£
Fixed assets
Tangible fixed assets	12	209,889	213,075
Current assets
Debtors	13	6,000	8,287
Cash at bank and in hand		251,772	211,512
		─────────	─────────
		257,772	219,799
Creditors: amounts falling due within one year	14	1,376	1,187
		─────────	─────────
Net current assets		256,396	218,612
		─────────	─────────
Total assets less current liabilities		466,285	431,687
		─────────	─────────
Net assets		466,285	431,687
		═════════	═════════
Funds of the charity
Restricted funds		12,007	2,961
Unrestricted funds		454,278	428,726
		─────────	─────────
Total charity funds	15	466,285 ═════════	431,687 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 10 October 2022, and are signed on behalf of the board by:

Dr Farasat Latif Trustee

The notes on pages 6 to 12 form part of these financial statements.

5

Luton Islamic Centre

Notes to the Financial Statements

Year ended 5 April 2022

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 116 Bury Park Road, Luton, Bedfordshire, LU3 1RJ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.

(b) Disclosures in respect of financial instruments have not been presented.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

6

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a 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.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

7

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 20% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

4. Donations and legacies

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Donations
Donations type 1	136,850	11,296	148,146
Grants
Grants receivable type 1	7,759	–	7,759
	─────────	────────	─────────
	144,609	11,296	155,905
	═════════	════════	═════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Donations
Donations type 1	72,245	13,713	85,958

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Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

4. Donations and legacies (continued)

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2021
		£	£	£
Grants
Grants receivable type	1	67,670	–	67,670
		─────────	────────	─────────
		139,915	13,713	153,628
		═════════	════════	═════════

5.	Investment income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Income from investment properties	11,310 ════════	11,310 ════════	3,690 ═══════	3,690 ═══════

6. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Activity type 1	22,462	750	23,212
Support costs	107,905	1,500	109,405
	─────────	───────	─────────
	130,367	2,250	132,617
	═════════	═══════	═════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Activity type 1	16,973	6,550	23,523
Support costs	125,499	4,202	129,701
	─────────	────────	─────────
	142,472	10,752	153,224
	═════════	════════	═════════

7. Expenditure on charitable activities by activity type

	Activities
	undertaken		Total funds	Total fund
	directly	Support costs	2022	2021
	£	£	£	£
Activity type 1	23,212	–	23,212	23,523
Governance costs	–	109,405	109,405	129,701
	────────	─────────	─────────	─────────
	23,212	109,405	132,617	153,224
	════════	═════════	═════════	═════════

8. Net income

Net income is stated after charging/(crediting):

Depreciation of tangible fixed assets

2022	2021
£	£
4,625	5,420
═══════	═══════

9

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

9. Independent examination fees

	2022	2021
	£	£
Fees payable to the independent examiner for:
Independent examination of the financial statements	1,125 ═══════	1,095 ═══════

10. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows: 2022 2021 £ £ Wages and salaries 57,255 77,687

The average head count of employees during the year was 11 (2021: 8).

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

11. Trustee remuneration and expenses

no remuneration or other benefits from employment with the charity or a related entity were received by the trustees; or

no trustee expenses have been incurred.

12. Tangible fixed assets

	Freehold	Fixtures and
	property	fittings	Total
	£	£	£
Cost
At 6 April 2021	191,392	34,593	225,985
Additions	–	1,439	1,439
	─────────	────────	─────────
At 5 April 2022	191,392	36,032	227,424
	═════════	════════	═════════
Depreciation
At 6 April 2021	–	12,910	12,910
Charge for the year	–	4,625	4,625
	─────────	────────	─────────
At 5 April 2022	–	17,535	17,535
	═════════	════════	═════════
Carrying amount
At 5 April 2022	191,392	18,497	209,889
	═════════	════════	═════════
At 5 April 2021	191,392	21,683	213,075
	═════════	════════	═════════
Debtors
		2022	2021
		£	£
Other debtors		6,000	8,287
		═══════	═══════

13. Debtors

10

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

14. Creditors: amounts falling due within one year

	2022	2021
	£	£
Accruals and deferred income	–	92
Social security and other taxes	251	–
Other creditors	1,125	1,095
	───────	───────
	1,376	1,187
	═══════	═══════

15. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At			At
	6 April 2021	Income	Expenditure	5 April 2022
	£	£	£	£
General funds	428,726	155,919	(130,367)	454,278
	═════════	═════════	═════════	═════════
	At			At
	6 April 2020	Income	Expenditure	5 April 2021
	£	£	£	£
General funds	427,593	143,605	(142,472)	428,726
	═════════	═════════	═════════	═════════
Restricted funds
	At			At
	6 April 2021	Income	Expenditure	5 April 2022
	£	£	£	£
Restricted Fund 1 - desc in a/cs	2,961	11,296	(2,250)	12,007
	═══════	════════	═══════	════════
	At			At
	6 April 2020	Income	Expenditure	5 April 2021
	£	£	£	£
Restricted Fund 1 - desc in a/cs	–	13,713	(10,752)	2,961
	════	════════	════════	═══════

11

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2022

16. Analysis of net assets between funds

	Unrestricted	Total Funds
	Funds	2022
	£	£
Tangible fixed assets	209,889	209,889
Current assets	257,772	257,772
Creditors less than 1 year	(1,376)	(1,376)
	─────────	─────────
Net assets	466,285	466,285
	═════════	═════════
	Unrestricted	Total Funds
	Funds	2021
	£	£
Tangible fixed assets	213,074	213,074
Current assets	219,799	219,799
Creditors less than 1 year	(1,187)	(1,187)
	─────────	─────────
Net assets	431,686	431,686
	═════════	═════════

17. Related parties

The Trustees of the charity had agreed to appoint Abdullah the son of Dr Mohammad Sayeid Al-Jamee (trustee) to serve as an Imam once a week from the 12th November 2021.

12

Luton Islamic Centre

Management Information

Year ended 5 April 2022

The following pages do not form part of the financial statements.

13

Luton Islamic Centre

Detailed Statement of Financial Activities

Year ended 5 April 2022

	2022	2021
	£	£
Income and endowments
Donations and legacies
Donations type 1	148,146	85,958
Grants receivable type 1	7,759	67,670
	─────────	─────────
	155,905	153,628
	─────────	─────────
Investment income
Income from investment properties	11,310	3,690
	────────	───────
	─────────	─────────
Total income	167,215	157,318
	═════════	═════════
Expenditure
Expenditure on charitable activities
Costs of generating voluntary income	23,212	23,523
Wages and salaries	57,255	77,687
Rent and rates	4,553	4,923
Repairs and maintenance	13,672	20,186
Insurance	4,636	4,238
Legal and professional fees	11,994	6,436
Telephone and computer	3,316	1,942
Depreciation	4,624	5,421
Printing, postage and stationery	2,685	1,520
Utilities	6,200	6,574
Bookkeeping and secretarial	470	774
	─────────	─────────
	132,617	153,224
	─────────	─────────
	─────────	─────────
Total expenditure	132,617	153,224
	═════════	═════════
	─────────	─────────
Net income	34,598	4,094
	═════════	═════════

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Luton Islamic Centre

Notes to the Detailed Statement of Financial Activities

Year ended 5 April 2022

	2022	2021
	£	£
Expenditure on charitable activities
Activity type 1
Activities undertaken directly
Costs of generating voluntary income	23,212	23,523
	────────	────────
Governance costs
Governance costs - wages/salaries	57,255	77,687
Governance costs - rent and rates	4,553	4,923
Governance costs - repairs & maintenance	13,672	20,186
Governance costs - insurance	4,636	4,238
Governance costs - accountancy fees	1,125	1,095
Governance costs - legal and other professional fees	10,869	5,106
Governance costs - financial advice	–	235
Governance costs - telephone and computer	3,316	1,942
Governance costs - depreciation	4,624	5,421
Governance costs - printing, postage and stationery	2,685	1,520
Governance costs - utilities	6,200	6,574
Governance costs - bookkeeping and secretarial	470	774
	─────────	─────────
	109,405	129,701
	─────────	─────────
	─────────	─────────
Expenditure on charitable activities	132,617	153,224
	═════════	═════════

15