2023-04-05-accounts

CHARITY REGISTRATION NUMBER: 1042630

Luton Islamic Centre

Unaudited Financial Statements

5 April 2023

Luton Islamic Centre

Financial Statements

Year ended 5 April 2023

	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 2023

The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2023.

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 2023

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 £47,730. At the end of the financial year the reserves were £500,682 of unrestricted funds and £13,333 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 2023.

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 11 October 2023 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 2023

I report to the trustees on my examination of the financial statements of Luton Islamic Centre ('the charity') for the year ended 5 April 2023.

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 2023

			2023		2022
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	175,366	10,608	185,974	155,905
Investment income	5	11,700	–	11,700	11,310
		─────────	────────	─────────	─────────
Total income		187,066	10,608	197,674	167,215
		═════════	════════	═════════	═════════
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies	6	31,148	–	31,148	–
Expenditure on charitable activities	7,8	109,514	9,282	118,796	132,617
		─────────	────────	─────────	─────────
Total expenditure		140,662	9,282	149,944	132,617
		═════════	════════	═════════	═════════
		─────────	────────	─────────	─────────
Net income and net movement in	funds	46,404	1,326	47,730	34,598
		═════════	════════	═════════	═════════
Reconciliation of funds
Total funds brought forward		454,278	12,007	466,285	431,687
		─────────	────────	─────────	─────────
Total funds carried forward		500,682	13,333	514,015	466,285
		═════════	════════	═════════	═════════

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 2023

		2023	2022
	Note	£	£
Fixed assets
Tangible fixed assets	13	207,230	209,889
Current assets
Debtors	14	8,565	6,000
Cash at bank and in hand		299,780	251,772
		─────────	─────────
		308,345	257,772
Creditors: amounts falling due within one year	15	1,560	1,376
		─────────	─────────
Net current assets		306,785	256,396
		─────────	─────────
Total assets less current liabilities		514,015	466,285
		─────────	─────────
Net assets		514,015	466,285
		═════════	═════════
Funds of the charity
Restricted funds		13,333	12,007
Unrestricted funds		500,682	454,278
		─────────	─────────
Total charity funds	16	514,015 ═════════	466,285 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 11 October 2023, 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 2023

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, LU1 1HE.

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.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

6

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

3. Accounting policies (continued)

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.

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.

7

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

3. Accounting policies (continued)

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.

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.

8

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

3. Accounting policies (continued)

Impairment of fixed assets (continued)

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	2023
		£	£	£
Donations
Donations type 1		175,366	10,608	185,974
Grants
Grants receivable type 1		–	–	–
		─────────	────────	─────────
		175,366	10,608	185,974
		═════════	════════	═════════
		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
		═════════	════════	═════════
Investment income
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Income from investment properties	11,700	11,700	11,310	11,310
	════════	════════	════════	════════

5. Investment income

9

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

6. Costs of raising donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Costs of raising donations and legacies
- Donations	31,148	31,148	–	–
	════════	════════	════	════

7. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Activity type 1	(279)	9,282	9,003
Support costs	109,793	–	109,793
	─────────	───────	─────────
	109,514	9,282	118,796
	═════════	═══════	═════════
	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
	═════════	═══════	═════════

8. Expenditure on charitable activities by activity type

		Activities
		undertaken		Total funds	Total fund
		directly	Support costs	2023	2022
		£	£	£	£
	Activity type 1	9,003	–	9,003	23,212
	Governance costs	–	109,793	109,793	109,405
		───────	─────────	─────────	─────────
		9,003	109,793	118,796	132,617
		═══════	═════════	═════════	═════════
9.	Net income
	Net income is stated after charging/(crediting):
				2023	2022
				£	£
	Depreciation of tangible fixed assets			3,959	4,625
				═══════	═══════
10.	Independent examination fees
				2023	2022
				£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial	statements		1,445	1,125
				═══════	═══════
11.	Staff costs

10

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

11. Staff costs (continued)

The average head count of employees during the year was 10 (2022: 11).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

12. 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.

13. Tangible fixed assets

	Freehold	Fixtures and
	property	fittings	Total
	£	£	£
Cost
At 6 April 2022	191,392	36,032	227,424
Additions	–	1,300	1,300
	─────────	────────	─────────
At 5 April 2023	191,392	37,332	228,724
	═════════	════════	═════════
Depreciation
At 6 April 2022	–	17,535	17,535
Charge for the year	–	3,959	3,959
	─────────	────────	─────────
At 5 April 2023	–	21,494	21,494
	═════════	════════	═════════
Carrying amount
At 5 April 2023	191,392	15,838	207,230
	═════════	════════	═════════
At 5 April 2022	191,392	18,497	209,889
	═════════	════════	═════════
Debtors
		2023	2022
		£	£
Trade debtors		2,565	–
Other debtors		6,000	6,000
		───────	───────
		8,565	6,000
		═══════	═══════
Creditors: amounts falling due within one year
		2023	2022
		£	£
Accruals and deferred income		1,445	–
Social security and other taxes		115	251
Other creditors		–	1,125
		───────	───────
		1,560	1,376
		═══════	═══════

14. Debtors

15. Creditors: amounts falling due within one year

11

Luton Islamic Centre

Notes to the Financial Statements (continued)

Year ended 5 April 2023

16. Analysis of charitable funds

Unrestricted funds

	Unrestricted funds
		At			At
		6 April 2022	Income	Expenditure	5 April 2023
		£	£	£	£
	General funds	454,278	187,066	(140,662)	500,682
		═════════	═════════	═════════	═════════
		At			At
		6 April 2021	Income	Expenditure	5 April 2022
		£	£	£	£
	General funds	428,726	155,919	(130,367)	454,278
		═════════	═════════	═════════	═════════
	Restricted funds
		At			At
		6 April 2022	Income	Expenditure	5 April 2023
		£	£	£	£
	Restricted Fund 1 - desc in a/cs	12,007	10,608	(9,282)	13,333
		════════	════════	═══════	════════
		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
		═══════	════════	═══════	════════
17.	Analysis of net assets between funds
				Unrestricted	Total Funds
				Funds	2023
				£	£
	Tangible fixed assets			207,229	207,229
	Current assets			308,345	308,345
	Creditors less than 1 year			(1,559)	(1,559)
				─────────	─────────
	Net assets			514,015	514,015
				═════════	═════════
				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
				═════════	═════════

18. 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.

12

Luton Islamic Centre

Management Information

Year ended 5 April 2023

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

13

Luton Islamic Centre

Detailed Statement of Financial Activities

Year ended 5 April 2023

	2023	2022
	£	£
Income and endowments
Donations and legacies
Donations type 1	185,974	148,146
Grants receivable type 1	–	7,759
	─────────	─────────
	185,974	155,905
	─────────	─────────
Investment income
Income from investment properties	11,700	11,310
	────────	────────
	─────────	─────────
Total income	197,674	167,215
	═════════	═════════
Expenditure
Costs of raising donations and legacies
Fundraising and events	31,148	–
	─────────	─────────
Expenditure on charitable activities
Charitable activities	9,003	23,212
Wages and salaries	62,623	57,255
Rent and rates	4,557	4,553
Repairs and maintenance	5,718	13,672
Insurance	4,696	4,636
Legal and professional fees	14,265	11,994
Telephone and computer	4,017	3,316
Depreciation	3,959	4,624
Printing, postage and stationery	1,372	2,685
Utilities	5,171	6,200
Bookkeeping and secretarial	1,860	470
Merchant fees	1,555	–
	─────────	─────────
	118,796	132,617
	─────────	─────────
	─────────	─────────
Total expenditure	149,944	132,617
	═════════	═════════
	─────────	─────────
Net income	47,730	34,598
	═════════	═════════

14

Luton Islamic Centre

Notes to the Detailed Statement of Financial Activities

Year ended 5 April 2023

	2023	2022
	£	£
Costs of raising donations and legacies
Costs of raising donations and legacies - Donations
Donations - fundraising and events	31,148	–
	────────	────
	────────	────
Costs of raising donations and legacies	31,148	–
	════════	════
Expenditure on charitable activities
Activity type 1
Activities undertaken directly
Direct charitable activity 1 - charitable activities	9,003	23,212
	────────	────────
Governance costs
Governance costs - wages/salaries	62,623	57,255
Governance costs - rent and rates	4,557	4,553
Governance costs - repairs & maintenance	5,718	13,672
Governance costs - insurance	4,696	4,636
Governance costs - accountancy fees	1,445	1,125
Governance costs - legal and other professional fees	12,820	10,869
Governance costs - telephone and computer	4,017	3,316
Governance costs - depreciation	3,959	4,624
Governance costs - printing, postage and stationery	1,372	2,685
Governance costs - utilities	5,171	6,200
Governance costs - bookkeeping and secretarial	1,860	470
Governance costs - merchant fees	1,555	–
	─────────	─────────
	109,793	109,405
	─────────	─────────
	─────────	─────────
Expenditure on charitable activities	118,796	132,617
	═════════	═════════

15