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2021-03-31-accounts

Company Registration Number - 2834081

The Charity Registration Number is :- 1044601

THE COVENTRY MUSLIM COMMUNITY ASSOCIATION LIMITED (A company limited by guarantee)

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Kaiser Nouman Nathan LLP Chartered Certified Accountants Unit D 17 Plumbers Row London E1 1EQ

THE COVENTRY MUSLIM COMMUNITY ASSOCIATION LIMITED

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

Page
Charity information 1
Trustees' Annual Report 2 - 8
Independent Auditors' Report 9 - 11
Funds Statements:-
Statement of Financial Activities 12
Statement of Financial Activities - Prior Year statement 13
Movements in funds 14
Revaluation reserves 14
Income and Expenditure account 15
Balance sheet 16
Notes to the accounts 17 - 23

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

The Trustees present their Report and Accounts for the year ended 31 March 2021, which also comprises the Directors' Report required by the the Companies Act 2006.

Reference and administrative details

The charity name.

The legal name of the charity is:- The Coventry Muslim Community Association Limited

The charity is also known by its operating name, CMRC

The charity's areas operation and UK charitable registration.

The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1044601

Legal structure of the charity

The charity is constituted as a a company limited by guarantee, registered under the Companies Acts . The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.

There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.

By operation of law all, trustees are directors under the Companies Act 2006 and all directors are trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation.

The trustees are all individuals.

The principal operating address, telephone number, email and web addresses of the charity are:-

Coventry Muslim Resource Centre

Red Land, Coventry CV6 5EE Telephone 024-76637933 Email Address Coventry_Resource_Centre@hotmail.co.uk

The registered office of the charity for Companies Act purposes is the same as the operating address shown above.

1

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

The Trustees in office on the date the report was approved were:-

Ali Aksar; Ahmed Ali; Gulam Shabir; Ashfaq Ahmed; Faisal Ali; Zahira Zahoor; Zahey Sultani; Mohammed Ilyas Deen; Musa Bismillah; Ahmed Bismillah; Waida Kausar; Samina Qayum; Ahmed Zaher Akrami;

The following persons served as Trustees during the year ended 31 March 2021 :-

The trustees who served as a trustee in the reporting period were as shown above, except for the following changes during the year, or in the period between the year end and the approval of the accounts.

Mr Ahmed Ismail Moosa Khalifa (resigned on 30/01/2021) Mr Asghar Ali (resigned on 02/06/2021) Mr Mohammed Ali (resigned on 02/06/2021) Mr Mujahid Ali (resigned on 02/06/2021) Mr Abdul Khaliq Sahebzadeh (resigned on 02/06/2021)

All the trustees are also members of the charity.

Objects and activities of the charity

The purposes of the charity as set out in its governing document.

The main objectives of the company is to establish, maintain and manage a community centre. In particular the objectives are to provide education, facilities of social welfare and recreation and to relieve poverty.

The main activities undertaken in relation to those purposes during the year.

The company was able to facilitate hall bookings and the provision of many activities including the operation of a nursery throughout the year.

In particular the centre's range of activities include:-

2

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

The main activities undertaken during the year to further the charity's purpose for the public benefit.

The trustees have complied with their duty in s4 of the Charities Act 2011 to have due regard to the guidances published by the Charity Commission, including public benefit guidance.

Bearing in mind the public benefit objectives of the Association the centre is used by many organisations either free of charge or at a nominal charge.

These organisations include:-

The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.

The contribution of volunteers during the year.

All persons supplying services to the Association are paid. There is no reliance on any volunteers.

The main achievements and performance of the charity during the year.

During the year the company continued to provide nursery services, funeral arrangement services, counselling, hall and room hire services for weddings, seminars, educational purposes etc.

The company received grants of £140,217 (2020: £168,391) from the Coventry City Council in respect of nursery education. The company will continue to promote it's activities whilst at the same time reducing its overhead expenditures. During the year there was a net deficit £61,886 (2020: £54,753).

Fundraising activities during the year.

The charity relies on grant aid from the donors identified in the accounts , whose support is valued. There have been no other fundraising activities.

The degree to which the achievements and performance during the year have benefited wider society.

The charity's continued to provide nursery education, funeral arrangement services, counselling, hall and room hire services for weddings, seminars and educational activities.

3

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

Structure, governance and management of the charity

The methods used to recruit and appoint new charity trustees.

The existing trustees are responsible for the recruitment of new trustees but in doing so the trustees seek the views and recommendations of both elders and community leaders. The trustees believe this approach ensures that new trustees are respectable members of the faith and local communities and ensures that good relations are fostered between the Mosque and the people of the local community that we serve.

The policies and procedures for the induction and training of trustees.

The charity strives to ensure opportunities and diversity in both the employment of staff and trustee appointments. Selection criteria and procedures are regularly reviewed to ensure that individuals are selected, promoted and treated on the basis of their relevant merits and abilities.

The charity's organisational structure.

The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefits. The trustees meet together as a body monthly and are responsible for all decisions taken in relation to the running of the Association and community facilities and the activities provided by the charity. To assist in the smooth running of the charity the trustees have set up a number of sub-committees that help them oversee certain aspects over the charity work. The day to day management of the Association and community facilities and projects are delegated to staff.

Wider network

At present, the chairty does not consider itself to be part of a wider network

The charity's relationships with related parties.

In accordance with parts 3 (xiii) and 3(xiv) of the company's memorandum, the company has

loaned to the Edgwick Family and Education Centre Limited, a company registered number 04822416 whose objectives are similar to Coventry Muslim Community Association Limited. The balance due as at 31 March 2021 is £142,500 (2020: £162,500).

Bankers Yorkshire Bank Plc, 7-11 High Street, Coventry. CV1 5SB Solicitors Rotherham & Co, Coventry

4

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

Financial review

The charity's financial position at the end of the year ended 31 March 2021

The financial position of the charity at 31 March 2021 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-

Restricted Revenue Funds
Total Funds
Unrestricted Revenue Funds available for the
general purposes of the charity
Net expenditure		 2021
£
(61,886)
216,226
338,450
554,676		 2020
£
(54,753)
235,636
380,926
616,562

Financial review of the position at the reporting date, 31 March 2021 .

At the end of the year, the Association had unrestricted reserve funds of £216,226 (2020: £235,636). The directors/management committee consider its prudent that the unrestricted funds should be sufficient to cover all revenue expenditure for at least one year and the unrestricted reserves as at 31 March 2021 are sufficient to cover the revenue expenditure for a period exceeding one year.

Policies on reserves.

The directors/management committee consider its prudent that the unrestricted funds should be sufficient to cover all revenue expenditure for at least one year and the unrestricted reserves as at 31 March 2021 are sufficient to cover the revenue expenditure for a period exceeding one year.

Availability and adequacy of assets of each of the funds

The board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.

Investment policy and investment objectives.

The trustees/management committee do have the power to invest as they see fit but to date such investments have all been in the infra structure and other fixed assets.

5

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

Future Plan

The charity will continue to persue its objectives of the community service. In particular, it will continue to provide education, facilities of social welfare and recreation and to relieve poverty.

The major risks to which the Charity is exposed and reviews and systems to mitigate them.

The trustees/management committee actively review the major risks facing the charity. These are as follows:

Funds - It is important that there are sufficient funds to finance all day to day running expenses as well as meeting the capital expenses. Although there does not appear to be any immediate risks the charity does employ a person whose primary function is fund-raising.

Use of centre - The charity is anxious that as many person as possible make use of the centre. Measures are in place to assess the needs and then subsequently to accommodate such needs. The range of activities is increasing in diversity.

Operational - These are minimised by the implementation of measures for discussion and authorisation of all projects and transactions.

Details of The Auditor

Dinesh Bathmanathan

Member of Chartered Certified Accountants

Unit D 17 Plumbers Row London E1 1EQ

Statement as to disclosure of information to auditors

The trustees state that so far as each of the trustees at the time this report was approved are aware:-

6

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

Statement of the Directors Trustees's Responsibilities

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, 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 Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), .

In particular, the Companies Act 2006 and charity law require the Board of Trustees 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 Board is required to :-

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 the Companies Act 2006 and comply with regulations made under the Charities Act. 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 statutory responsibility of the auditor in relation to the Trustees' report is limited to examining the report and ensuring that , the report is consistent with the figures disclosed in the financial statements.

7

The Coventry Muslim Community Association Limited

Company Registration Number - 2834081

Trustees' Annual Report for the year ended 31 March 2021

Method of preparation of accounts - Small company provisions

The financial statements are set out on pages 12 to 23.

The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016)

These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

This report was approved by the board of trustees on xx/xx/2021.

………………………………………. …………………………….. Gulam Shabbir Ahmed Ali Directors and Trustees

8

The Coventry Muslim Community Association Limited

Independent Auditors' Report to the Trustees of the charitable company on the accounts for the year ended 31 March 2021

Opinion

We have audited the financial statements of The Coventry Muslim Community Association Ltd (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 17 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

9

The Coventry Muslim Community Association Limited

Independent Auditors' Report to the Trustees of the charitable company on the accounts for the year ended 31 March 2021

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

10

The Coventry Muslim Community Association Limited

Independent Auditors' Report to the Trustees of the charitable company on the accounts for the year ended 31 March 2021

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

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Signed:-

Dinesh Bathmanathan - Senior Statutory Auditor

For and on behalf of Kaiser Nouman Nathan LLP - Registered Auditors

Chartered Certified Accountants

Unit D 17 Plumbers Row London E1 1EQ

This report was signed on xx/xx/2021

11

The Coventry Muslim Community Association Limited - Statement of Financial Activities for the year ended 31 March 2021

Current year
Unrestricted
Funds
2021
£
Income & Endowments from:
Donations & Legacies
A1
140,217
Charitable activities
A2
162,897
Total income
A
303,114
Expenditure on:
Charitable activities
B2
365,000
Total expenditure
B
365,000
Net expenditure for the year
(61,886)
Transfers between funds
C
42,476
Net income after transfers
A-B-C
(19,410)
(19,410)
Reconciliation of funds:-
E
Total funds brought forward
235,636
Total funds carried forward
216,226
SORP
Ref
Net movement in funds		 Current year
Unrestricted
Funds
2021
£
140,217
162,897
 Current year
Restricted
Funds
2021
£
-
-		 Current year
Total Funds
2021
£
140,217
162,897
303,114
365,000
365,000
(61,886)
-
(61,886)
(61,886)
616,562
554,676		 Prior Year
Total Funds
2020
£
168,391
208,631
303,114 - 377,022
365,000 - 431,775
365,000 - 431,775
(61,886)
42,476		 -
(42,476)		 (54,753)
-
(42,476) (54,753)
(19,410)
235,636		 (42,476)
380,926		 (54,753)
616,561
216,226 338,450 561,808

The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet.

A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.

All activities derive from continuing operations

The notes attached on pages 17 to 23 form an integral part of these accounts.

12

The Coventry Muslim Community Association Limited - Statement of Financial Activities for the year ended 31 March 2021

The Coventry Muslim Community Association Limited - Analysis of prior year total funds, as required by paragraph 4.2 of the SORP

Income from:
Donations & Legacies
A1
Charitable activities
A2
Total income
A
Expenditure on:
Charitable activities
B2
Total expenditure
B
Net expenditure for the year
Transfers between funds
C
Net income after transfers
Reconciliation of funds:-
E
Total funds brought forward
Total funds carried forward
SORP
Ref
Net movement in funds		 Prior Year
Unrestricted
Funds
2020
£
168,391
208,631

 Prior Year
Restricted
Funds
2020
£
-
-		 Prior Year
Total Funds
2020
£
168,391
208,631
377,022
431,775
431,775
(54,753)
-
(54,753)
(54,753)
616,561
377,022 -
431,775 -
431,775 -
(54,753)
43,047		 -
(43,047)
(11,706) (43,047)
(11,706)
247,341		 (43,047)
423,973
235,635 380,926 561,808

All activities derive from continuing operations

A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.'

The notes attached on pages 17 to 23 form an integral part of these accounts.

13

The Coventry Muslim Community Association Limited - Statement of Financial Activities for the year ended 31 March 2021

The Coventry Muslim Community Association Limited - Resources applied in the year ended 31 March 2021 towards fixed assets for Charity use:-

ended 31 March 2021 towards fixed assets for Charity use:-
Funds generated in the year as detailed in the SOFA
Net resources available to fund charitable activities		 2021
£
(61,886)
(61,886)		 2020
£
(54,753)
(54,753)

The notes attached on pages 17 to 23 form an integral part of these accounts.

Movements in revenue and capital funds for the year ended 31 March 2021

Revenue accumulated funds

Accumulated funds brought forward
(From)/To unrestricted revenue funds
Closing revenue funds
Summary of funds
Revenue accumulated funds
Recognised gains and losses before transfers		 Unrestricted
Funds
2021
£
235,636
(61,886)		 Restricted
Funds
2021
£
380,926
-		 Total
Funds
2021
£
616,562
(61,886)
554,676
-
554,676
Total
Funds
2021
£
554,676		 Last year
Total Funds
2020
£
671,314
(54,753)
173,750
42,476		 380,926
(42,476)		 616,561
-
216,226 338,450 616,561
Last Year
Total Funds
2020
£
616,561

The notes attached on pages 17 to 23 form an integral part of these accounts.

14

The Coventry Muslim Community Association Limited - Statement of Financial Activities for the year ended 31 March 2021

The Coventry Muslim Community Association Limited Income and Expenditure Account for the year ended 31 March 2021 as required by the Companies Act 2006

Income
Income from operations
Gross income in the year before exceptional items
Gross income in the year including exceptional items
Expenditure
Charitable expenditure, excluding depreciation and amortisation
Depreciation and amortisation
Governance costs
Realised losses on disposals of social investments which are programme related
Total expenditure in the year
Tax on surplus on ordinary activities
Retained surplus for the financial year
All activities derive from continuing operations
Net income before tax in the financial year
Investment income
Net income after tax in the financial year		 2021
£
303,114
303,114
303,114
315,548
43,054
6,398
-
365,000
(61,886)
-
(61,886)
(61,886)		 2020
£
377,022
377,022
377,022
374,098
40,121
6,650
-
420,869
(43,847)
-
(43,847)
(43,847)

In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities.

The notes attached on pages 17 to 23 form an integral part of these accounts.

15

The Coventry Muslim Community Association Limited - Balance Sheet as at 31 March 2021

SORP
Notes Ref 2021 2020
£ £
Fixed assets A
Tangible assets 8 A2 367,530 410,584
Current assets B
Debtors 9 B2 142,500 162,500
Cash at bank and in hand B4 55,814 56,459
Total current assets 198,314 218,959
Creditors: amounts falling due within
one year 10 C1 (11,168) (12,981)
Net current assets 187,146 205,978
The total net assets of the charity 554,676 616,562
The total net assets of the charity are funded by the funds of the charity, as follows:-
Restricted funds
Restricted Revenue Funds 16 D2 338,450 380,926
Unrestricted Funds
Unrestricted Revenue Funds 16 D3 216,226 235,636
Designated Funds
Total charity funds 554,676 616,562

The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA..

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The charity is subject to audit under charity legislation, and the report of the Charities Act auditor is on page 11. The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

Gulam Shabbir

Ahmed Ali

Trustees

Approved by the board of trustees on xx/xx/2021

The notes attached on pages 17 to 23 form an integral part of these accounts.

16

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Assessment of Going Concern

The trustees, having made appropriate enquiries, consider that adequate resources exists for the charity to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt going concern basis in preparing the financial statements as at and for the year ended 31 March 2021. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditionsthat may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. In arriving at the conclusion, the trustees have considered the potential implications of the effects of Covid 19 on the charity. The figures for the period under consideration have not been significantly impacted by Covid 19 and the trustees are confident that no adjustments are necessary to the carrying value of the assets held at the balance sheet date.

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

Critical accounting judgements and key sources of estimation uncertainty

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

Risks and future assumptions

The charity is a public benefit entity.

Risks and future assumptios included in detail in Trustees' annual return on page 6

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Grant income

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

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

17

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021 Charitable activities

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

Governance costs

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

Allocation and apportionment of costs

Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.

The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is :-

Staffing - on the basis of time spent in connection with any particular activity.

Other expenses - on the basis of the usage of resources.

Tangible fixed assets

Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.

Main building 4 % straight line (25 years)
All other fixed assets 25 % reducing balance

Accounting for capital grants and fixed asset funds.

The board of trustees consider that, in order to comply with the SORP, capital grants given for specific purposes are fully utilised in the furterance of the objects of the charity. These funds have been taken to long term financing funds account and credited to the revenue account on the same basis as the depreciation charge on the respective fixed assets.

When assets are acquired for the furtherance of the charity's objects, utilising the charity's own unrestricted funds, a transfer is made from unrestricted funds to a designated fixed asset fund.

Whether acquired with unrestricted or restricted funds, the asset acquired is initially shown in the balance sheet at the full cost of acquisition or subsequent revaluation.

As the related assets are depreciated, in accordance with the depreciation policy, in order to reflect the dimunition in the asset,a transfer is made from the relevant fixed asset funds to either unrestricted or restricted revenue funds, as appropriate to the terms of the original gift, if any.

The effect of this policy is that the aggregate of all fixed asset funds shall equate to the net book value of fixed assets.

Insofar as this policy relates to Government grants and to the extent that it may be a departure from the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in February 2016), (The SORP), such departure is justified on the basis that it is in order to comply with the SORP.

18

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

Cash at Bank & in hand and debtors

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

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

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the moment the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payments where such discounting is material.

Fund Accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2 Liability to taxation

The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.

Winding up or dissolution of the

3 charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.

4 Significance of financial instruments to the charity's position

There is no such significance of financial instruments to the charity's position.

19

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

2021
£
Depreciation of owned fixed assets
43,054
Auditors' remuneration
4,320
6
Staff costs and emoluments
Salary costs
2021
£
Gross Salaries excluding trustees and key management personnel
181,091
Employer's National Insurance for all staff
3,913
Total salaries, wages and related costs
185,004
Numbers of full time employees or full time equivalents
2021
The average number of total staff employed in the year was
13
The average number of part time staff employed in the year was
4
The average number of full time staff employed in the year was
11
The estimated full time equivalent number of all staff employed in the year was
13
The estimated equivalent number of full time staff deployed in different activities in the year was:-
Engaged on charitable activities
13
Engaged on publicity activities
-
Engaged on fundraising activities
1
Engaged on management and administration
1
The estimated full time equivalent number of all staff employed as above
15
The net (deficit)/surplus before tax in the financial year is stated after charging:-		 2021
£
43,054
4,320		 2020
£
43,817
4,320
2021
£
181,091
3,913		 2020
£
239,526
4,958
185,004 244,484
2021
13		 2020
17
10
10
15
17
1
1
1
15 20

Neither the trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.

No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.

7 Remuneration and payments to Trustees and persons connected with them

No trustees or persons connected with them received any remuneration from the charity, or any related entity.

20

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

8 Tangible fixed assets

Tangible fixed assets
Cost
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
Debtors
Other debtors		 Land and
Buildings
£
1,179,338		 Plant &
Machinery
£
142,202		 Total
£
1,321,540
1,179,338 142,202 1,321,540
771,064
42,476		 139,892
578		 910,956
43,054
813,540 140,470 954,010
365,798 1,732 367,530
408,274 2,310 410,584
2021
£
142,500		 2020
£
162,500

9 Debtors

21

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

10 Creditors: amounts falling due within one year
Creditors: amounts falling due within one year
Accruals
PAYE, NIC VAT and other taxes
Other creditors		 2021
£
8,000
3,168
-		 2020
£
6,160
2,921
3,900
11,168 12,981

11 Loans to trustees included in debtors

No loans to trustees

12 Guarantees made by the charity on behalf of trustees

No guarantees provided on behalf of the trustees.

13 Revaluation reserve

Revaluation reserve
At 1 April 2020
Transfers in the year
At 31 March 2021
Income and Expenditure account summary
At 1 April 2020
Loss after tax for the year
At 31 March 2021		 Current year
Unrestricted
Funds
2021
£
-
(42,476)		 Current year
Restricted
Funds
2021
£
-
-		 Current year
Total Funds
2021
£
-
(42,476)		 Prior Year
Total Funds
2020
£
-
-
(42,476) - (42,476) -
2021
£
627,467
(61,886)		 2020
£
671,314
(43,847)
565,581 627,467

14 Income and Expenditure account summary

15 Particulars of how particular funds are represented by assets and liabilities

At 31 March 2021
Tangible Fixed Assets
Current Assets
Current Liabilities
At 1 April 2020
Tangible Fixed Assets
Current Assets
Current Liabilities		 Unrestricted
funds
£
367,530
(140,136)
(11,168)		 Designated
funds
£
-
-		 Restricted
funds
£
-
338,450
-		 Total
Funds
£
367,530
198,314
(11,168)
216,226 - 338,450 554,676
Unrestricted
funds
£
410,584
(161,967)
(12,981)		 Designated
funds
£
-
-
-		 Restricted
funds
£
-
380,926
-		 Total
Funds
£
410,584
218,959
(12,981)
235,636 - 380,926 616,562

22

The Coventry Muslim Community Association Limited

Notes to the Accounts for the year ended 31 March 2021

16 Change in total funds over the year as shown in Note 15 , analysed by individual funds

Unrestricted and designated funds:-
Unrestricted Revenue Funds
Total unrestricted and designated funds
Restricted funds:-
insert name of fund 1
Restricted Fixed Asset funds
Total restricted funds
Total charity funds		 £
235,636
Funds brought
forward from
2020		 See Note 17
£
(61,886)
Movement in
funds in 2021		 See Note 18
£
42,476
Transfers between
funds in 2021		 £
216,226
Funds carried
forward to 2022
235,636 (61,886) 42,476 216,226
423,973 -
-		 (42,476) (42,476)
423,973
423,973 - (42,476) 381,497
659,609 (61,886) - 597,723

17 Analysis of movements in funds over the year as shown in Note 16

Other
Income Expenditure Gains & Movement
Losses in funds
2021 2021 2021 2021
£ £ £ £
Unrestricted and designated funds:-
Unrestricted Revenue Funds 303,114 (365,000) - (61,886)

18 Details of transfers between funds in the year as shown in Note 16

The transfers shown in note 16 above are:- 2021
£
To/(from) Unrestricted Revenue Funds in accordance with the accounting policy 'Accounting for capital grants and
ixed asset funds'.		 42,476
To/(from) Restricted Revenue Funds (42,476)

The transfers shown in note 16 above are:-

To/(from) Unrestricted Revenue Funds in accordance with the accounting policy 'Accounting for capital grants and fixed asset funds'.

Net transfers

-

19 The purposes for which the funds as detailed in note 16 are held by the charity are:-

Unrestricted and designated funds:-

Unrestricted Revenue Funds

These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and , subject to charity legislation, are free from all restrictions on their use.

Restricted funds:-

Restricted Fixed Asset funds

The purpose of these funds is described under the accounting policy 'Accounting for capital grants and fixed asset funds'.

20 Ultimate controlling party

The charity is under the control of its legal members.

Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

23