**Charity Number - 1059104**
## **The Preston Muslim Society Masjid-E-Falah**
**Trustees’ Report and Accounts For The Year Ended 31 March 2022**
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
## **CONTENTS**
||**Page**|
|---|---|
|**Charity information**|1|
|**Report of the trustees**|2|
|**Independent Examiner's Report**|4|
|**Statement of fnancial activitie**|5|
|**Balance sheet**|6|
|**Accounting policies**|7|
|**Notes to the accounts**|10|
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH CHARITY INFORMATION**
**Registered Charity Name.** The Preston Muslim Society Masjid-E-Falah **Registered Charity Number** 1059104 **Principal Address** 135-139 Kent Street Preston Lancashire PR1 1PE **Trustees** Z Patel M H Polli D A Munshi Z I Patel **Bankers** National Westminster Bank Plc 35 Fishergate Preston Lancashire PR1 2AD **Independent Examiner** Stonebridge Accountants 19a Chorley Old Road Bolton Lancashire BL1 3AD
Page 1
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH REPORT OF THE TRUSTEES**
The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. 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 Republic of Ireland (FRS 102) published in October 2019.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The objective of the trust as set out in the governing document is to advance the religion of Islam.
## **Strategies**
We want to make our Mosque an accessible and welcoming venue where all Muslims, or those who wish to know more about our faith, can gather together to learn about their religion and worship. The Mosque is open at all times with daily prayers, the Friday prayers being a focus of our activities.
An important part of our strategy is community welfare and education. All our community facilities and activities including classes, health initiatives and seminars are advertised and we welcome the participation of all in our local community, Muslim and non-Muslim alike. Most of our activities are free and supported by donations.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
The charity's main objective is to provide a place of worship, and to promote Islamic education and training.
The charity provides facilities for the public to conduct daily prayers, and continually strives to improve on this through the support and donations received by those individuals that use the facilities.
## **Public benefit & Community Activities**
The charity carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities, summarised below & within this report, provide benefit to all who wish to participate.
- - Seminars - organised periodically on various educational topics.
- - Courses - short courses are held to take an in depth look at topics covered in seminars.
- - Evening School - for children aged 5-12 years old, teaching basic Islamic Studies.
- - Consultancy - offering advice to local schools and service providers.
- - Library - well stocked library for research and for community use.
## **Religious Activities**
Our Mosque provides a centre for our prayers and worship and for the activities associated with our faith. During the year under review, we offered a range of religious services and activities including:
_**Prayers**_ : The place of worship within the charities building is open for all daily and Friday prayers. During the week we have over 20 people who regularly attend daily prayers and over 200 who regularly Friday prayer.
_**Festivals**_ : The charity provides facilities in terms of sermon, literature and place of worship on those special occasions.
_**Funeral Facilities**_ : The charity provides a complete funeral service in line with the teachings of Islam. We relieve the deceased's bereaved relatives of the burden of organising burials. We also hold special classes to teach people how to proceed with Islamic burial procedures.
_**Civil Marriage and Nikah**_ : The Mosque provides Muslim couples with an appropriate location for their both civil marriage and Nikah (Islamic marriage).
Page 2
_**Hifz Classes**_ : Memorisation of the Quran is considered an important element of religious education and training. We continue to provide this facility for the all young people within the charity’s premises.
_**Evening classes**_ : Classes are offered to children to learn about the basic fundamentals of Islam. _**Islamic Awareness**_ : This year we have launched a series of lectures, open to all, to promote Islamic knowledge and awareness.
_**Inter-faith Dialogue**_ : The charity is an active member of the Faith Communities Forum for the Local area. We use this platform to promote inter-faith dialogue and social cohesion.
Page 3
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH REPORT OF THE TRUSTEES (continued)**
## **FINANCIAL REVIEW**
## **Reserves policy**
It is the policy of the charity to maintain unrestricted funds at a level which equate to approximately 12 months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs.
## **FUTURE PLANS**
The charity plans continuing the activities outlined above in the forthcoming years. We also plan to look into further projects which will help us to fulfil our aims and objectives.
In the immediate future the charity aims to create further awareness of the educational centre, research more in depth the requirements of the public and provide services to aid a more prosperous and cohesive community.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Preston Muslim Society Masjid-E-Falah is a registered UK Charity constituted on 12 April 1993 under charity number 1059104. It is an unincorporated charity. The governing document is a Trust Deed.
## **Recruitment and appointment of new trustees**
The trustees have the power to appoint any person to be a trustee in accordance with the provisions of the Trust Deed. An appointed trustee holds office within the limits permitted by law.
## **COVID-19**
The Trustees must be mindful of possible financial pressures on the Charity a result of the Covid19 crisis and have concluded that there is no significant going concern risk.
## **Trustees' responsibilities statement**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Approved by order of the board of trustees on 14 June 2022 and signed on its behalf by:
Page 4
Z Patel - Trustee
Page 5
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH INDEPENDENT EXAMINER’S REPORT**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages five to thirteen.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 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:
- accounting records were not kept in respect of the charity as required by section 130 of the Act; or
- the accounts do not accord with those records; or
- 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.
## **Stonebridge Accountants 19a Chorley Old Road Bolton Lancashire BL1 3AD**
14 June 2022
Page 6
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
## **STATEMENT OF FINANCIAL ACTIVITES**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|**Not**
**e**
**Income from:**
Donations and legacies
1
Investment income
2
**Expenditure on:**
Charitable activities
3
**Total expenditure**
**Net**
**income/**
**(expenditure)**
Transfers
between
funds
11
**Net movement in**
**funds**
**Reconciliation**
**of**
**funds:**
Total funds b/fwd
12
**Total funds c/fwd**
11|**Unrestrict**
**ed**
**General**
**Funds**
**Unrestrict**
**ed**
**Designate**
**d Funds**
**Restricte**
**d Funds**
**£**
**£**
**£**
**96,308**
**-**
**-**
**6,852**
**-**
**-**
**103,160**
**-**
**-**
**41,202**
**3,795**
**-**
**41,202**
**3,795**
**-**
**61,958**
**(3,795)**
**-**
**-**
**-**
**-**
**61,958**
**(3,795)**
**-**
**91,492**
**499,945**
**-**
**153,450**
**496,150**
**-**|**2022**
**Total**
**£**
**96,308**
**6,852**
**103,16**
**0**
**44,997**
**44,997**
**58,163**
**-**
**58,163**
**591,43**
**7**
**649,600**|**2021**
**Total**
**£**
40,543
7,200|
|---|---|---|---|
||||47,743|
||||54,742|
||||54,742|
||||(6,999)
-|
||||(6,999)
598,436|
||||591,437|
|||||
All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.
Page 7
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2022**
|**Unrestrict**
**ed**
**General**
**Funds**
**Unrestrict**
**ed**
**Designate**
**d Funds**
**Restricte**
**d Funds**
**Not**
**e**
**£**
**£**
**£**
**Fixed assets**
Tangible assets
8
**-**
**496,150**
**-**
**-**
**496,150**
**-**
**Current assets**
Debtors
9
**-**
**-**
**-**
Cash at bank and in
hand
**153,450**
**-**
**-**
**153,450**
**-**
**-**
**Liabilities**– Creditors
falling due within one
year
10
**-**
**-**
**-**
**Net current assets**
**153,450**
**-**
**-**
**Net assets**
**153,450**
**496,150**
**-**
**Represented by:**
Total Funds
11
**153,450**
**496,150**
**-**|**2022**
**Total**
**£**
**496,15**
**0**
**496,15**
**0**
**-**
**153,45**
**0**
**153,450**
**-**
**153,45**
**0**
**649,600**
**649,600**|**2021**
**Total**
**£**
499,945|
|---|---|---|
|||499,945|
|||-
91,492|
|||91,492
-|
|||91,492|
||||
|||591,437|
|||591,437|
The financial statements were approved by the Board of Trustees on 14 June 2022 and were signed on its behalf by:
## **M H Polli – Trustee**
Page 8
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
**ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **Basis of preparation**
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) issued in October 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.
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from authorising these financial statements.
The Trustees must be mindful of possible financial pressures on the Charity a result of the Covid19 crisis and have concluded that there is no significant going concern risk. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **Fund accounting**
_**Unrestricted General funds**_ - unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
_**Designated funds**_ - unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts.
_**Restricted funds**_ - to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **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.
## **Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), no amounts are included in the financial statements for services donated by volunteers.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to
Page 9
obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Page 10
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
## **ACCOUNTING POLICIES (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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 the resources. Detailed analyses of the expenditure, including irrecoverable VAT where applicable, are provided in the notes to the accounts.
## **Pension costs**
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the SOFA.
## **Taxation**
The charity is exempt from tax on its charitable activities
## **Tangible fixed assets**
Tangible fixed assets costing more than £1,000 are generally capitalised and included at cost including any incidental expenses of acquisition. This general policy is subject to the capital nature of project, smaller items may be capitalised if part of a bigger project and higher values may be expensed if part of a cyclical maintenance programme. Any development work to be capitalised will be depreciated on completion of the project.
Depreciation is provided on fixed assets to write off the cost over their estimated useful lives on a straight-line basis at the following principal rates per annum:
- Freehold land & buildings not provided for - Fixtures, fittings and equipment 20% straight line
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Creditors**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Page 11
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
**ACCOUNTING POLICIES (CONTINUED)**
**FOR THE YEAR ENDED 31 MARCH 2022**
## **Judgements and key sources of estimation uncertainty**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The trustees do not believe that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
Page 12
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **1 Income from donations and legacies**
|Donations
Gift aid claims
Unrestricted|**2022**
**£**
**66,760**
**29,548**
**96,308**|**2021**
**£**
40,543
-|
|---|---|---|
|||40,543|
|**2**
**Investment income**
Rental income
Unrestricted
**3**
**Analysis of expenditure on charitable activities**
**Direct costs**
Charitable donations
**Support costs**
Governance costs (see note 4)
Wages and salaries
Rates and water
Insurance
Light and heat
Telephone
Printing, postage and stationery
Bank charges
Repairs and maintenance
General expenses
Covid related expenses
Depreciation of fxed assets
Unrestricted
Designated
**4**
**Governance costs**
Accountancy fees
Trustees support costs
Legal fees|**2022**
**£**
**6,852**
**6,852**|**2021**
**£**
7,200
7,200|
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
||||
||**530**|-|
||||
||**440**
**21,215**
**237**
**2,940**
**8,631**
**655**
**209**
**25**
**5,600**
**720**
**-**
**3,795**
**44,997**
**41,202**
**3,795**
**44,997**|-
21,645
105
4,167
13,112
474
83
25
1,204
521
4,400
9,006
54,742
45,736
9,006
54,742|
||**2022**|**2021**|
||**£**|**£**|
||||
||**440**
**-**
**-**
**440**|-
-
-
-|
Page 13
Page 14
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **5 Staff numbers**
|**Staf numbers**|**Staf numbers**||
|---|---|---|
|The average monthly number of employees during the year was as follows**:**|||
||**2022**|**2021**|
||**No.**|**No.**|
|Imams|**2**|2|
No employees received emoluments in excess of £60,000
## **6**
## **Trustees’ remuneration and benefits**
There were no trustees' remuneration or other benefits for the current or prior year.
## **7 Related party transactions**
There were no related party transactions during the current or prior year.
## **8 Tangible fixed assets**
|**Tangible fxed assets**||||
|---|---|---|---|
|**Freehold**
**land and**
**buildings**
**£**
**Cost**
As at 1 April 2021
**496,1**
**50**
Additions
**-**
Disposals
**-**
**As at 31 March 2022**
**496,1**
**50**
**Depreciation**
As at 1 April 2021
**-**
Charge for the year
**-**
Disposals
**-**
**As at 31 March 2022**
**-**
**Net book value**
**As at 31 March 2022**
**496,150**
As at 31 March 2021
496,150|**Fixtures,**
**fttings**
**and**
**equipmen**
**t**
**£**
**21,17**
**2**
**-**
**(2,200)**
**18,97**
**2**
**17,377**
**3,795**
**(2,200)**
**18,972**
**-**
3,795||**Total**
**£**
**517,3**
**22**
**-**
**(2,200)**|
||||**515,1**
**22**|
||||**17,377**
**3,795**
**(2,200)**|
|||**18,972**
**496,150**
499,945|**18,972**|
Page 15
**THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **9 Debtors**
|**9**
**Debtors**|||
|---|---|---|
|Prepaid expenses
**10**
**Creditors**
Accrued expenses|**2022**
**£**
**-**
**-**
**2022**
**£**
**-**
**-**|**2021**
**£**
-|
|||-|
|||**2021**
**£**
-|
|||-|
## **11 Funds**
## _**Unrestricted General funds**_
Unrestricted general funds represent available funds to be used at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
## _**Unrestricted Designated funds**_
Unrestricted designated funds all relate to amounts invested in fixed assets for charitable use. Any assets capitalised during the year will have equal transfer from the general fund to the designated fund.
## **Restricted funds**
There were no restricted funds during the current and prior year.
Page 16
## **THE PRESTON MUSLIM SOCIETY MASJID-E-FALAH NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2022**
|**12**
**Comparable funds information**
**Unrestrict**
**ed**
**General**
**Funds**
**Unrestrict**
**ed**
**Designate**
**d Funds**
**Restricte**
**d Funds**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**40,543**
**-**
**-**
Investment income
**7,200**
**-**
**-**
**47,743**
**-**
**-**
**Expenditure on:**
Charitable activities
**45,736**
**9,006**
**-**
**Total expenditure**
**45,736**
**9,006**
**-**
**Net**
**income/**
**(expenditure)**
**2,007**
**(9,006)**
**-**
Transfers between funds
**(16,238)**
**16,238**
**-**
**Net movement in**
**funds**
**(14,231)**
**7,232**
**-**
**Reconciliation**
**of**
**funds:**
Total funds b/fwd
**105,723**
**492,713**
**-**
**Total funds c/fwd**
**91,492**
**499,945**
**-**
**Funds**
**represented**
**by:**
Tangible fxed assets
**-**
**499,945**
**-**
Current assets
**91,492**
**-**
**-**
Current liabilities
**-**
**-**
**-**
**91,492**
**499,945**
**-**||
|---|---|
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
|||
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