**Charity number: 1064305**
## **Canterbury Muslim Cultural Centre**
**Trustees' Report and Financial Statements for the Year Ended 31 December 2022**
## Canterbury Muslim Cultural Centre
Contents of the Financial Statements for the Year Ended 31 December 2022
||Page|
|---|---|
|Reference and administrative details of the Charity|1|
|Trustees Report|2-4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Statement of Financial Position|7|
|Notes to the Financial Statements|8-16|
Canterbury Muslim Cultural Centre Reference and Administrative Details of the Charity for the Year Ended 31 December 2022 **TRUSTEES:** Dr Sinan Rawi Mr Zayed Zaheer Dr Nazir Bashir Dr Nihad Tamimi Mr Ramazan Altun **CHARITY REGISTERED NUMBER:** 1064305 **REGISTERED OFFICE:** 1 Giles Lane Canterbury Kent England CT2 7LT **INDEPENDENT EXAMINER:** Matthew Bugby ACCA A.K. & Co (Accountancy Services) Ltd 19 Victoria Terrace Hove East Sussex BN3 2WB
Page 1
Canterbury Muslim Cultural Centre Trustees' Report for the Year Ended 31 December 2022
The Trustees present their annual report together with the financial statements of the Charity for the 1 January 2022 to 31 December 2022. The Annual report serves the purpose of both a Trustees' report and a Director's report under company law. The Trusees confiirm that the Annual report and financial statements statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **OBJECTIVES AND ACTIVITIES**
The main activities of the charity were, but not limited to:
To advance the Islamic religion in accordance with the Quran and sunnah of the prophet Mohammed. To cultivate the education of Muslim children in according to the tenets and teaching of Islam.
Additional activities, included but were not limited to:
To provide social, cultural and faith-based needs to the Muslim community.
To provide social and cultural contacts for the students and the visitors from home and abroad. To hold the daily prayers and the Friday Service for men, women and children.
To provide a Sunday school and Arabic language classes to the children and teenagers at the university campus. To co-ordinate advice and support to the local stakeholders including Local Police Force, the City Council, the Prison Services, the Local Hospitals, the University of Kent, Cadma, Candifa and other statutory and voluntary bodies. To encourage social inclusion by bringing the Muslim community in contact with the wider community.
To give advice and provide support to the bereaved families, to hold prayer and to arrange the burial, with the help of the Imam and the committee.
To generate funds only from donations and charitable events and only use them for peaceful purposes. To raise funds towards extending the building at the mosque.
## **FINANCIAL REVIEW**
## **Achievement and Performance**
The total incoming resources for the year were £187,741 (2021: £124,027). Total resources expended were £104,554 (2021: £102,368), leaving net incoming resources of £81,132 (2021: £28,903) before transfers.
## **Going Concern**
The trustees have reviewed the charity's forecasts and, considered the current economic position and it's impact on the charity's ability to remain operational, and the trustees are confident the charity will have sufficient resources to continue for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
Page 2
## Canterbury Muslim Cultural Centre Trustees' Report for the Year Ended 31 December 2022
## **Reserves Policy**
The trustees have reviewed the reserves of the charity, in line with existing policy, and deem that no changes are required.
## **Princicpal Funding**
The charity’s main source of income is donation from members of the congregation.
## **Principal Risks and Uncertainties**
The principal risks facing the Mosque are:
Reputational risk - mitigated by regular review and assessment by the trustees Financial risk - the risk of a decline in donations and funding, however this has been mitigated by by proactiveness towards fundraising towards the Mosques projects and wider social outreach in the community.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
Canterbury Muslim Cultural Centre is governed by constitution adopted on 19th May 1997 and amended 3rd July 1997
There has been no change in trustees in the period under review.
## **General Overview**
The Mosque continues to enjoy good relationships and partnerships with local communities and stakeholders around the Canterbury and South-East region.
The extension project commenced in the year and has meant a temporary relocation to Canterbury University
## **Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the constitution.
## **Policies adopted for the induction and training of Trustees**
The policies adopted are those of the Charity Commission publications as per the website. Trustees are reminded Periodically to review these documents, and new trustees are issued with access to copies for perusal.
## **Pay policy for key management personnel**
Pay reviews for all staff are conduced annually by the Trustee board
Page 3
Canterbury Muslim Cultural Centre Trustees' Report for the Year Ended 31 December 2022
## **Future Plans**
The Extension Project
The Mosque Extension development will continue into 2023, with the first phase anticipated to be completed by Ramadan 2023, with the following phase scheduled to commence from Eid. Completion is due by late 2023. Fundraising initiatives and events are being planned for 2023 in order to raise sufficient funds for the project.
## **Investment policy**
Investment in extending the Mosque has been approved by the Trustees and will continue throughout 2023.
## **Statement of Trustees' responsibilities**
The Trustees are reponsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair veiw of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102); make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going conern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequte accounting records that are sufficient to show and explain the Charity's transactions and 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 Companies Act 2006. 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 members of the board of Trustees and signed on their behalf by:
…......................................................... …............................................................ Trustee Trustee Date: Date:
Page 4
Canterbury Muslim Cultural Centre Independent Examiner's Report for the Year Ended 31 December 2022
Independent Accountants Report To The Members On The Unaudited Financial Statements For The Year Ended 31 March 2022
I report to the charity Trustees on my examination of the accounts for the year ended 31 March 2022
## **Responsibilities and basis of report**
As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006.
Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of the charity's accounts carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. Accounting records were not kept in respect of the Charity as required by section 386 of the Companies Act 2006;
2. The accounts to not accord with those records;
3. The accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 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; or
4. The accounts have not been prepared in accordance with the methods and principle of the Statement of Recommended Practice for accounting and reporting by charities, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102)
I have no concrns and have come across no other matters in connection to the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed …....................................................
Dated ….................................
Matthew Bugby ACCA A.K. & Co (Accountancy Services) Ltd 19 Victoria Terrace Hove East Sussex BN3 2WB
Page 5
## Canterbury Muslim Cultural Centre Statement of Financial Activities for the Year Ended 31 December 2022
|Notes
**Income**
Direct costs
**GROSS SURPLUS/(DEFICIT)**
Administrative expenses
Other operating Income
**OPERATING SURPLUS**
5
Interest receivable and similar income
**SURPLUS/(DEFICIT) FOR THE FINANCIAL YEAR**|2022
£
187,741
8,492
179,249
98,237
81,012
-
81,012
120
81,132|2021
£
124,027
8,621
115,406
94,645
20,761
8,100
28,861
42
28,903|
|---|---|---|
Page 6
||Canterbury Muslim Cultural|Canterbury Muslim Cultural|Centre|||
|---|---|---|---|---|---|
||Statement|of Financial Position||||
|for the Year Ended 31 December 2022||||||
||||2022||2021|
||Notes||£||£|
|**FIXED ASSETS**||||||
|Tangible Assets|6||655,886||405,270|
|**CURRENT ASSETS**|||655,886||405,270|
|Debtors|7|22,131||0||
|Cash at bank and in hand||149,952||342,141||
|**CREDITORS**||172,083||342,141||
|Amounts falling due within one year|8|145||1,312||
|**NET CURRENT ASSETS/LIABILITIES**|||171,938||340,829|
|**TOTAL ASSETS LESS CURRENT LIABILITIES**|||827,824||746,099|
|**CHARITY FUNDS**||||||
|Capital account|9||343,319||343,319|
|Excess of Receipts over Payments|10||483,912||402,780|
|**Total funds**|||827,231||746,099|
The charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entitles subject to the small companies regime.
The financial statements were approved and authrosed for issue by the Trustees and signed on their behalf by:
…......................................................... …............................................................ Trustee Trustee Date: Date:
Page 7
Canterbury Muslim Cultural Centre Notes to the Financial Statements for the Year Ended 31 December 2022
## 1 **GENERAL INFORMATION**
Canterbury Muslim Cultural Centre is an unincorporated charity, registered at the Charities Commission.
## 2 **ACCOUNTING POLICIES**
## **Basis of preparation of the financial statements**
The financial statements 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 accountings in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Going concern**
The financial statements are prepared on a going concern basis and there are no material uncertainties that cast significant doubt on the Charity's ability to continue as a going concern.
## **Income**
Income is measured at the fair value of the donation or funding received or receivable, once the charity has entitlement to the income and it is probable it will be received.
Grants are included on a receivables basis.
Income tax recoverable in relation to investment income is recognised at the time the investment income is received.
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 on charitable activites is incurred on directly undertaking the activites which further the Charity's objectives, and is inclusive of irrecoverable VAT.
## **Depreciation**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings
- 20% on straight line
## **Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered.
## **Taxation**
The charity is exempt from corporation tax on charitable activities.
Page 8
Canterbury Muslim Cultural Centre Notes to the Financial Statements for the Year Ended 31 December 2022
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Liabilities and provisions**
Liabilities 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 beneift will be required in settlement, and the amount of the settlement can be estimated reliably.
Provisions are measured at the best estimate of the amounts requires to settle the obligation. Where the effect of time value money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability.
## **Pensions**
The charity does not operate any pension scheme for it's employees.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discrection of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise 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 financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs 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 of the financial statements.
## **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, with the exeption of bank loans which are subsequently measured at amortised cost.
## **3 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 assessments 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.
Page 9
Canterbury Muslim Cultural Centre Notes to the Financial Statements for the Year Ended 31 December 2022
## **4 Average number of employees**
The average number of employees during the year was as follows:
**2022 2021** No. No. Employees 3 2
No employee received remuneration amounting to more than £60,000 in either year.
No trustees were remunerated for the year under review, nor did they receive any benefits
|**5**|**EXCESS OF RECEIPTS OVER PAYMENTS FROM OPERATIONS**|**EXCESS OF RECEIPTS OVER PAYMENTS FROM OPERATIONS**||
|---|---|---|---|
||||2022
2021|
||||£
£|
||Depreciation of tangible fixed assets||593
950|
||||593
950|
|**6**|**TANGIBLE FIXED ASSETS**|**Land and**|**Plant and**|
||**COST**|**Buildings**
£|**Machinery**
**Total**
£
£|
||At 1 January 2022|402,422|16,339
418,761|
||Additions|250,497|119
250,616|
||Disposals|-|-
-|
||At 31 December 2022|652,919|16,458
669,377|
||**DEPRECIATION**|||
||At 1 January 2022|-|13,491
13,491|
||Charge for the year|-|593
593|
||Disposals|-|-
-|
||At 31 December 2022|-|14,084
14,084|
||**NET BOOK VALUE**|||
||At 31 December 2022|652,919|2,374
655,293|
||At 31 December 2021|402,422|2,848
405,270|
|**7**|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||2022
2021
£
£|
||Enthuse Debtor||22,131
-|
Page 10
## Canterbury Muslim Cultural Centre Notes to the Financial Statements for the Year Ended 31 December 2022
## **8 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Taxation and social security
Other creditors
**CAPITAL ACCOUNT**
Reserves carried forward|2022
2021
£
£
-
1
145
11
-
1,300
145
1,312
2022
2021
£
£
343,319
343,319|
|---|---|
## **9 CAPITAL ACCOUNT**
## **10 RECEIPT & PAYMENT ACCOUNT**
|At 1 January 2022
Excess of Receipts over Payments
At 31 December 2022|2022
£
402,780
81,132
483,912|
|---|---|
Page 11
## Canterbury Muslim Cultural Centre Detailed Income and Expenditure for the Year Ended 31 December 2022
|**Income**
General Donations
Arabic School
Rental Income
**Direct costs**
Other direct costs
**GROSS SURPLUS/(DEFICIT)**
**Other income**
HMRC JRS
Deposit account income
**Administrative expenditure**
**Premises costs**
Rates and water
Light and heat
Household and cleaning
**Employee costs**
Wages and salaries
Temporary staffing
**General Administrative costs**
Insurance
Hire of equipment
Equipment expensed
Telephone
Print and stationary
Travelling
Repairs and renewals
Sundry expenses
Subscriptions
Depreciation of fixed assets|£
£
173,991
6,220
7,530
187,741
8,492
179,249
-
120
120
179,369
1,310
5,021
4,400
10,731
34,113
847
34,960
1,339
290
275
388
168
89
5,345
164
500
593
9,151
2022|£
109,532
1,500
12,995
8,100
42
3,265
4,646
3,647
26,505
1,500
1,162
275
233
333
528
0
4,255
868
479
950|£
124,027
8,621
115,406
8,142
123,548
11,558
28,005
9,083
2021|
|---|---|---|---|
Page 12
|**Legal and professional costs**
Accountancy
Advertising and PR
Legal and professional fees
**Charitable costs**
Donations
Voucher costs
Refugee support costs
**Finance costs**
Bank and Enthuse charges
**Total Administrative expenditure**
**NET SURPLUS/(DEFICIT)**|Canterbury Muslim Cultural Centre
Notes to the Financial Statements
for the Year Ended 31 December 2022
£
£
600
6,919
28
7,547
16,724
13,825
3,124
33,673
2,175
98,237
81,132|£
£
800
855
9,065
10,720
16,496
11,847
6,038
34,381
898
94,645
28,903|
|---|---|---|
Page 13
Canterbury Muslim Cultural Centre Notes to the Financial Statements for the Year Ended 31 December 2022
## **Income & Expenditure**
For the year ended 31
Mosque Extension Fund.
**----- Start of picture text -----**
Account 2022
Income
Mosque's Extension Fund 39,918.67
Total Income 39,918.67
Overhead Costs
Advertising & Marketing 6,300.00
Total Overhead Costs 6,300.00
Total Surplus/(Deficit) 33,618.67
**----- End of picture text -----**
## **Income & Expenditure**
For the year ended 31
## Burial Fund.
|**Account**|**2022**|
|---|---|
|**Income**||
|Funeral Fund|240.00|
|**Total Income**|**240.00**|
|**Total Surplus/(Deficit)**|**240.00**|