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2023-03-04-accounts

REGISTERED CHARITY NUMBER: 1057815

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 4TH MARCH 2023

FOR

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

S.D. Garner + Co Limited Chartered Certified Accountants

92 Station Lane Hornchurch Essex RM12 6LX

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 4TH MARCH 2023

Page
Report of the Trustees 1 to 2
Independent Examiner's Report 3
Statement of Financial Activities 4
Balance Sheet 5
Notes to the Financial Statements 6 to 13
Detailed Statement of Financial Activities 14

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4TH MARCH 2023

The Trustees have pleasure in presenting their report and the financial statements for the charity for the year ended 04 March 2023. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Main Activities: Education Programmes And Conferences For Elderly And Young, Organising Community Events, Co-Operation With Other Charities, Annual Hajj And Umrah And Cultural Tours, Funeral Assistance.

The trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.

Significant activities

At the start of the year, the charity purchased its office building for £3,234,250 and spent £228,058 during the year on refurbishing the premises, totalling £3,462,308.These were financed by loans from our head office.

During the year the charity continued to provide Hajj and Umrah services to religious pilgrims, including a cultural tour to Turkey and Spain.

The charity organised various fund-raising events, including Ramadan Iftar dinner event and fetes.

The charity supported weekend education schools in different branches in Edmonton, Romford, Peckham, Margate, Brighton, and Bexley in London. We are in the process of opening a new branch in Enfield.

The charity arranged talks with Imams at the mosques and community halls. Its also continued to provide UQBAH funeral services.

The accounts this year have been delayed due to the technical issues with setting up the online portal with the charity commission, This resulted in the charity not being able to log into our account and submit the accounts and annual return by the due date.

FINANCIAL REVIEW

Financial position

The total income for the year was £227,020 (2022: £139,000)

The total resources expended amounted to £154,658 (2022: £86,120)

The net surplus for the year amounted to £72,362 (2022: £52,880)

Reserves policy

The total accumulated reserves were £726,868 as at 4 March 2023 (2022: £654,506).

The trustees consider the reserves are sufficient to continue the charity activities in the future years.

The trustees actively review the major risks which the charity faces on a regular basis and also have examined other operational risks faced by the charity. The trustees confirms that they have established systems to mitigate the significant risks.

Going concern

The trustees consider the charity to be a going concern despite the challenges posed by the COVID pandemic.

Page 1

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4TH MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Recruitment and appointment of new trustees

The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive on remuneration or other financial benefits.

The trustees meet once a month collectively in order to review the progress of the charity and take any decisions in relation to the activities provided by the charity.

The charity employed one part time staff during the year, all the major activities were carried out by the volunteers and trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1057815

Principal address

399-401 High Road London N17 6QN

Trustees

Mr U Bilaloglu Mr M Gulbahar Mr M Erguz Mr R Gokce

Independent Examiner

Jamal Arshad, FCCA S.D. Garner + Co Limited Chartered Certified Accountants 92 Station Lane Hornchurch Essex RM12 6LX

Approved by order of the board of trustees on 24th May 2024 and signed on its behalf by:

Mr U Bilaloglu - Trustee

Page 2

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

Independent examiner's report to the trustees of London Islamic Culture and Recreation Society

I report to the charity trustees on my examination of the accounts of London Islamic Culture and Recreation Society (the Trust) for the year ended 4th March 2023.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all 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 Trust as required by Section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Jamal Arshad, FCCA

S.D. Garner + Co Limited Chartered Certified Accountants 92 Station Lane Hornchurch Essex RM12 6LX

24th May 2024

Page 3

LONDON ISLAMIC CULTURE AND RECREATION

SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 4TH MARCH 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
95,105
Charitable activities
Hajj and Umrah Activities
58,361
Funeral services
-
Investment income
3
26,703
Total
180,169
EXPENDITURE ON
Raising funds
4
31,940
Charitable activities
Hajj and Umrah Activities
-
Funeral services
-
Projects
5,908
Administration & support costs
102,589
Other
4,572
Total
145,009
NET INCOME
35,160
RECONCILIATION OF FUNDS
Total funds brought forward
641,031
TOTAL FUNDS CARRIED FORWARD
676,191
Restricted
fund
£
-
-
46,851
-
46,851
-
9,649
-
-
-
-
9,649
37,202
13,475
50,677
2023
Total
funds
£
95,105
58,361
46,851
26,703
227,020
31,940
9,649
-
5,908
102,589
4,572
154,658
72,362
654,506
726,868
2022
Total
funds
£
102,314
6,146
14,040
16,500
139,000
34,754
43,516
4,250
-
-
3,600
86,120
52,880
601,626
654,506

The notes form part of these financial statements

Page 4

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

BALANCE SHEET 4TH MARCH 2023

Notes
FIXED ASSETS
Tangible assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank
CREDITORS
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
11
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
fund
£
3,465,801
1
3,465,802
642,812
42,080
684,892
(89,039)
595,853
4,061,655
(3,385,464)
676,191
Restricted
fund
£
-
-
-
-
50,677
50,677
-
50,677
50,677
-
50,677
2023
Total
funds
£
3,465,801
1
3,465,802
642,812
92,757
735,569
(89,039)
646,530
4,112,332
(3,385,464)
726,868
676,191
50,677
726,868
2022
Total
funds
£
1,366
1
1,367
652,562
72,240
724,802
(71,662)
653,140
654,507
(1)
654,506
641,031
13,475
654,506

The financial statements were approved by the Board of Trustees and authorised for issue on 24th May 2024 and were signed on its behalf by:

Mr U Bilaloglu - Trustee

The notes form part of these financial statements

Page 5

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 4TH MARCH 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

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.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Tangible fixed assets, other than freehold are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Fixtures and Fittings - 20% straight line

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

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

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.

continued...

Page 6

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

2. DONATIONS AND LEGACIES

Donations
Grants
Grants (HASENE)

London borough of Enfield Covid Grants
Gift Aid - HMRC
HMRC Furlough
2023
£0
£0
£0

£0
2022
£14,000
£9,238
£3,359
£26,597
2023
£
89,105
-
6,000
95,105
2022
£
75,717
26,597
-
102,314

3. INVESTMENT INCOME

4.

Rents received
RAISING FUNDS
Raising donations and legacies
Support costs
2023
£
26,703
2023
£
-
2022
£
16,500
2022
£
27,424

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 4th March 2023 nor for the year ended 4th March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 4th March 2023 nor for the year ended 4th March 2022.

continued...

Page 7

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

6.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
99,314
Charitable activities
Hajj and Umrah Activities
-
Funeral services
-
Investment income
16,500
Total
115,814
EXPENDITURE ON
Raising funds
34,754
Charitable activities
Hajj and Umrah Activities
33,087
Funeral services
4,250
Other
3,600
Total
75,691
NET INCOME
40,123
RECONCILIATION OF FUNDS
Total funds brought forward
600,908
TOTAL FUNDS CARRIED FORWARD
641,031
Restricted
fund
£
3,000
6,146
14,040
-
23,186
-
10,429
-
-
10,429
12,757
718
13,475
Total
funds
£
102,314
6,146
14,040
16,500
139,000
34,754
43,516
4,250
3,600
86,120
52,880
601,626
654,506

continued...

Page 8

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

7. TANGIBLE FIXED ASSETS

COST
At 5th March 2022
Additions
At 4th March 2023
DEPRECIATION
At 5th March 2022
Charge for year
At 4th March 2023
NET BOOK VALUE
At 4th March 2023
At 4th March 2022
8.
FIXED ASSET INVESTMENTS
Other
There were no investment assets outside the UK.
Investments (neither listed nor unlisted) were as follows:
Investment in subsidiaries
Freehold
property
£
-
3,462,308
3,462,308
-
-
-
3,462,308
-
Fixtures
and
fittings
£
3,556
3,000
6,556
2,190
873
3,063
3,493
1,366
2023
£
1
2023
£
1
Totals
£
3,556
3,465,308
3,468,864
2,190
873
3,063
3,465,801
1,366
2022
£
1
2022
£
1

continued...

Page 9

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

9. DEBTORS

2023
£
Amounts falling due within one year:
Other debtors
-
Amounts falling due after more than one year:
Other debtors
590
Amount due by group and associated undertakings
642,222
Aggregate amounts
642,812
10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
£
Trade creditors
81,419
Taxation and social security
-
Other creditors
7,620
89,039
11.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Other creditors
3,385,464
12.
SECURED DEBTS
The following secured debts are included within creditors:
2023
£
Loan from ICMG Germany
3,067,742
2022
£
9,750
590
642,222
652,562
2022
£
67,611
186
3,865
71,662
2022
£
1
2022
£
-

The loan is repayable in installments and is secured over the freehold property.

continued...

Page 10

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

13. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Restricted funds
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Restricted funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Restricted funds
TOTAL FUNDS
At 5/3/22
£
641,031
13,475
654,506
Incoming
resources
£
180,169
46,851
227,020
At 5/3/21
£
600,908
718
601,626
Net
movement
At
in funds
4/3/23
£
£
35,160
676,191
37,202
50,677
72,362
726,868
Resources
Movement
expended
in funds
£
£
(145,009)
35,160
(9,649)
37,202
(154,658)
72,362
Net
movement
At
in funds
4/3/22
£
£
40,123
641,031
12,757
13,475
52,880
654,506

continued...

Page 11

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 115,814 (75,691) 40,123
Restricted funds
Restricted funds 23,186 (10,429) 12,757
TOTAL FUNDS 139,000 (86,120) 52,880
A current year 12 months and prior year 12 months combined position is as follows:
Unrestricted funds At 5/3/21
£
Net
movement
in funds
£
At
4/3/23
£
General fund 600,908 75,283 676,191
Restricted funds
Restricted funds 718 49,959 50,677
TOTAL FUNDS 601,626 125,242 726,868
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are
follows:
Unrestricted funds Incoming
resources
£
Resources
expended
£
Movement
in funds
£
General fund 295,983 (220,700) 75,283
Restricted funds
Restricted funds 70,037 (20,078) 49,959
TOTAL FUNDS 366,020 (240,778) 125,242

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

continued...

Page 12

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4TH MARCH 2023

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 4th March 2023.

Page 13

LONDON ISLAMIC CULTURE AND RECREATION SOCIETY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 4TH MARCH 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Grants (HASENE)
Investment income
Rents received
Charitable activities
Income from charitable activities (Hajj and Umrah
Activities)
Income from Charitable activities (Funeral
activities)
Total incoming resources
EXPENDITURE
Other trading activities
Donations
Charitable activities
Cost of direct charitable activities
Support costs
Management
Management (Administration)
Governance costs
Accountancy and legal fees
Total resources expended
Net income
2023
£
89,105
-
6,000
95,105
26,703
58,361
46,851
105,212
227,020
31,940
15,557
102,589
4,572
154,658
72,362
2022
£
75,717
26,597
-
102,314
16,500
6,146
14,040
20,186
139,000
7,330
47,766
27,424
3,600
86,120
52,880

This page does not form part of the statutory financial statements

Page 14