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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 1066665

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Riley Moss Audit LLP Chartered Accountants Riley House 183-185 North Road Preston Lancashire PR1 1YQ

MUSLIM WELFARE INSTITUTE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Reference and Administrative Details 1
Trustees' Report 2 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 20
Detailed Statement of Financial Activities 21 to 22

MUSLIM WELFARE INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees Mr Hasan Moosa Sidat (resigned 11.3.21)
Mr Rafiq Ismail Patel (resigned 11.3.21)
Mr Mohammad Nagdee (appointed 1.1.20) (resigned
11.3.21)
Mr Yusuf Ibrahim Ahmed Moosa (appointed 12.3.21)
Mr Aziz Raje (appointed 12.3.21)
Mr Hasan Patel (appointed 1.1.20)
Principal address Suite 301
Daisyfield Business Centre
Daisyfield Mill, Appleby Street
Blackburn
Lancashire
BB1 3BL
Registered charity number 1066665
Auditors Riley Moss Audit LLP
Chartered Accountants
Riley House
183-185 North Road
Preston
Lancashire
PR1 1YQ

Page 1

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. 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) (effective 1 January 2019).

Objectives and activities

Objectives and aims

The trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity'. The charity run on the basis of Public benefit and not for profit purpose.

The objectives of the charity are as outlined in the charity's Governing Instrument. The main objective of the charity is needy people primarily in, but not restricted to, India, Albania and Bangladesh by focusing on the following areas:

Page 2

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Achievement and performance ALBANIA

Dar-e Arqam Education Centre

Our new Dar-e-Arqam Education Centre completed its first full year during 2020.

Residential Institute - Belesh

Our residential institute at one of the local Mosques in the village of Belesh completed its 16th year. 10 students reside on a full time basis where all their needs are provided for. Many students enrol for shorter periods and a number of students attend part time courses.

Non Residential Institute - Laknas

Our non residential institute opened in Laknas in 2015 and completed its fifth year. The institute is in use during weekdays for education classes for students and on the weekends for education classes for orphans and also widows. Intention is to increase programmes at this institute in the coming years.

Mosques Renovation Programme

12 Mosques were renovated throughout the year 2020, 6 were on behalf of the Ummah Welfare Trust (UWT).

Food Distribution Project

To assist needy families, we distributed: 1200 meat bags on the occasion of Eid-ul-Adha. 1000 food packs during the Holy month of Ramadhan & at the time of Eid-ul-Fitr.

Educational Projects

70 classes were funded by the MWI where 1200 children received free education.

Orphans Sponsorship

360 orphans & their families were sponsored for 12 months.

BOSNIA

Following a visit to Bosnia in 2018, the MWI initiated its first 2 projects in Bosnia during the year 2020.

Widows Sponsorship

We sponsored 25 widows with a cash grant of £200 each in Srebrenica.

Families Sponsorship

We sponsored 10 families in Mostar with £200 each.

MACEDONIA

Educational Projects

15 classes were funded by the MWI where 225 children received free education.

UNITED KINGDOM (England )

Hardship Assistance Programme:

Southport:

We assisted 100 asylum seekers who were housed in Southport with basic essentials and food vouchers for 4 months We also visited them on a few occasions.

Blackburn:

Assistance was provided to a number of families who were going through difficult circumstances. Our Sisters group also assisted a number of sisters and children. Food, clothing, basic essentials, rental payments etc etc were provided. We worked closely with the Refugee Organisation here in Blackburn who carried out due diligence checks.

Refugees:

Page 3

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

We assisted a number of refugee families here in Blackburn with cash grants.

BANGLADESH

Orphanage Project

Our orphanage constructed at the village of Begumpur completed its 16th year. The orphanage is home to 30 orphans. A number of orphans who have reached the age of 18 have now moved on into either full time education, further studies or vocational training programmes depending on their final exam results..

Education Programmes

35 part-time schools are being funded where 1500 children acquire secular & religious education.

Food Distribution

500 people were provided with hot meals daily during the month of Ramadhan. 500 families were provided with Iftaar Packs in Ramadhan. 1000 gift packs were distributed prior to the festival of Eid-ul-Fitr. 500 meat bags were distributed on the occasion of Eid-ul-Adha.

Orphans Sponsorship

30 orphans sponsored.

Water Programmes

140 hand pumps installed at various locations throughout the year.

Income Support Programme

30 rickshaw vans distributed.

Wheelchair Distribution

70 wheelchairs distributed.

Group Weddings Programme

Finance was provided for 15 couples who got married at the group weddings programmes that were organised during the year.

Medical Projects

130 cataract operations were performed.

Winter Clothing

500 winter packs distributed during the winter period.

INDIA

Masjid Construction

3 Masjids constructed.

Cataract Operations

350 operations carried out.

Dialysis Services

1300 dialysis services carried out throughout the year.

Food Distribution

3000 food parcels distributed for the holy month of Ramadhan & 4000 at the time of Eid-ul-Fitr. 700 Qurbaanis performed at the time of Eid-ul-Adha.

Widows/Orphans Sponsorship

300 orphans were sponsored. Also, 50 students who were 16+ were supported as part of the Education Aid programme.

Page 4

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

WEST BENGAL

Students sponsorship

50 students were sponsored to become Hafez of the Quraan at a local educational institute in Uttar Dinajpur.

Masjid Construction

3 Mosques were constructed.

Visits

Due to the CoronaVirus, it was decided not to send any MWI representative to any country. Projects were affected during the year. However, as per government guidelines, staff safety was put as a priority at all times.

Staffing Structure

The MWI has 4 full time and 2 part time employees. Also, 3 teachers are employed in Albania, who have come from India.

Financial review

Reserves policy

The financial position is regularly reviewed by the trustees to ensure effective financial governance.This includes monitoring of the cash and bank balances by the trustees.The trustees are confident the organisation will continue to be able to meet with its obligations as they fall due.

Sale of property

The MWI premises on 35 Wellington Street St Johns had been on the market for nearly 2 years. An offer of £250,000 was received during the year 2020. The trustees and senior staff decided to accept the offer. Property was handed over to the new buyers on Friday 27th November.

We moved into our new rented office on Monday 30th November. This is Suite 301 at The Daisyfield Business Centre on Appleby Street. We are now on the lookout for a much larger property in a popular area.

Structure, governance and management

Induction and training of new trustees

The power of appointing new Trustees is vested in the Trustees and there are informal procedures in place for the induction and training of new Trustees. Trustees are also encouraged to attend relevant briefings courses.

New Trustee Appointed

Another trustee by the name of Hasan Patel was added on to the trustees list. The MWI now has 3 trustees as mentioned on first page. The trust appointed two new trustees Mr Aziz Raje and Mr Yusuf Ibrahim Ahmed Moosa. Mr Hasan Patel was appointed as chair of Trustees.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Muslim Welfare Institute has a risk management policy which is regularly revised to identify and address all kinds of risks every year. The existing management team is well equipped to discourse, manage and report the risks internally and externally. The indicated risks identified were successfully reviewed and assessed by the senior management and trustees during the reporting period. These risks, including strategic, governance and operational risks, have been identified and ranked in terms of impact and likelihood. The trustees are satisfied that systems are in place to monitor, manage and mitigate any exposure from these risks and ensure they are reviewed regularly.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Page 5

MUSLIM WELFARE INSTITUTE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees' responsibilities

The trustees are responsible 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (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 13 October 2021 and signed on its behalf by:

Mr Hasan Patel - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE

Opinion

We have audited the financial statements of Muslim Welfare Institute (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 charity 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 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 charity'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.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 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 are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF MUSLIM WELFARE INSTITUTE

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Riley Moss Audit LLP Chartered Accountants Riley House 183-185 North Road Preston Lancashire PR1 1YQ

13 October 2021

Page 9

MUSLIM WELFARE INSTITUTE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Income and endowments from
Donations and legacies 2 287,465 1,449,401 1,736,866 1,620,301
Other income 176,592 - 176,592 -
Total 464,057 1,449,401 1,913,458 1,620,301
Expenditure on
Raising funds 3 3,710 - 3,710 7,000
Charitable activities 4
-
Restricted expenditure 1,520,650 1,520,650 1,616,365
-
Unrestricted expenditure 184,807 184,807 38,478
-
Support costs 98,822 98,822 112,655
Total 287,339 1,520,650 1,807,989 1,774,498
NET INCOME/(EXPENDITURE) 176,718 (71,249) 105,469 (154,197)
Reconciliation of funds
Total funds brought forward 170,585 152,799 323,384 477,581
Total funds carried forward 347,303 81,550 428,853 323,384
----- End of picture text -----

Continuing operations

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

MUSLIM WELFARE INSTITUTE

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Fixed assets
Tangible assets 8 1,661 - 1,661 77,702
Current assets
Debtors 9 128,305 - 128,305 92,081
Cash at bank and in hand 221,581 81,550 303,131 158,851
349,886 81,550 431,436 250,932
Creditors
Amounts falling due within one year 10 (4,244) - (4,244) (5,250)
Net current assets 345,642 81,550 427,192 245,682
Total assets less current liabilities 347,303 81,550 428,853 323,384
NET ASSETS 347,303 81,550 428,853 323,384
Funds 11
Unrestricted funds 347,303 170,585
Restricted funds 81,550 152,799
Total funds 428,853 323,384
----- End of picture text -----

The financial statements were approved by the Board of Trustees and authorised for issue on 13 October 2021 and were signed on its behalf by:

Mr Hasan Patel - Trustee

The notes form part of these financial statements

Page 11

MUSLIM WELFARE INSTITUTE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (100,518) (165,932)
Net cash used in operating activities (100,518) (165,932)
Cash flows from investing activities
-
Purchase of tangible fixed assets (350)
-
Sale of tangible fixed assets 244,798
Net cash provided by/(used in) investing activities 244,798 (350)
Change in cash and cash equivalents
in the reporting period 144,280 (166,282)
Cash and cash equivalents at the
beginning of the reporting period 158,851 325,133
Cash and cash equivalents at the end
of the reporting period 303,131 158,851
----- End of picture text -----

The notes form part of these financial statements

Page 12

MUSLIM WELFARE INSTITUTE

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
1. Reconciliation of net income/(expenditure) to net cash flow from operating activities
2020 2019
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 105,469 (154,197)
Adjustments for:
Depreciation charges 293 345
-
Profit on disposal of fixed assets (169,050)
Increase in debtors (36,224) (7,060)
Decrease in creditors (1,006) (5,020)
Net cash used in operations (100,518) (165,932)
2. Analysis of changes in net funds
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank and in hand 158,851 144,280 303,131
158,851 144,280 303,131
Total 158,851 144,280 303,131
----- End of picture text -----

The notes form part of these financial statements

Page 13

MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

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.

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Critical accounting judgements and key sources of estimation uncertainty

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

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - No depreciation is charged Fixtures and fittings - 15% on reducing balance

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Page 14

continued...

MUSLIM WELFARE INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies - continued

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash and bank in hand, trade debtors and other debtors £431,436 (2019: £250,932). A specific provision is made for debts for which recoverability is in doubt. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes £3,660 (2019: £4,980).

2. Donations and legacies

Donations
3.
Raising funds
Raising donations and legacies
Charity dinner
4.
Charitable activities costs
Restricted expenditure
Unrestricted expenditure
Support costs		 Direct
Costs
£
1,520,650
172,019
-
1,692,669		 2020
£
1,736,866
2020
£
3,710
Support
costs (see
note 5)
£
-
12,788
98,822
111,610		 2019
£
1,620,301
2019
£
7,000
Totals
£
1,520,650
184,807
98,822
1,804,279

Expenditure on charitable activities comprises costs associated with the provision of emergency relief and other other humanitarian developments, carried out by the charity, directly and through partner organizations worldwide. This is further analysed by country as follows.

Partner Organizations

Institute Myslyhan Ndlhmes Shqiperi - Albania
Jamia Islamia Ishaatul Uloom Akkaluwa - India
Islahul Muslmeen Parishad - Bangladesh		 2020
£
690,080
595,390
235,180
1,520,650		 2019
£
867,650
208,385
540,330
1,616,365

Page 15

continued...

MUSLIM WELFARE INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

5. Support costs

Management
£
Unrestricted expenditure
5,524
Support costs
94,606
100,130		 Finance
£
1,264
267
1,531		 Governance
Other
costs
£
£
-
6,000
1,299
2,650
1,299
8,650		 Totals
£
12,788
98,822
111,610

Support costs, included in the above, are as follows:

Management

Unrestricted
expenditure
£
Wages
5,524
Other operating leases
-
Rates and water
-
Insurance
-
Light and heat
-
Telephone
-
Postage and stationery
-
Sundries
-
Fixtures and fittings depreciation
-
5,524
Finance
Unrestricted
expenditure
£
Bank charges
1,264
Exchange (Gain)/Loss
-
1,264
Other
Repairs and renewals
Motor expenses
Travel expenses		 Support
costs
£
81,621
203
2,181
515
1,622
433
6,142
1,596
293
94,606
Support
costs
£
-
267
267		 2020
Total
activities
£
87,145
203
2,181
515
1,622
433
6,142
1,596
293
100,130
2020
Total
activities
£
1,264
267
1,531
2020
Support
costs
£
-
-
1,299
1,299		 2019
Total
activities
£
76,901
-
2,241
-
1,922
775
12,039
799
345
95,022
2019
Total
activities
£
-
303
303
2019
Total
activities
£
25
806
11,306
12,137

Page 16

continued...

MUSLIM WELFARE INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

5. Support costs - continued Governance costs

Support costs - continued
Governance costs
Auditors' fee
Accountancy and legal fees		 Unrestricted
Support
expenditure
costs
£
£
4,800
-
1,200
2,650		 2020
2019
Total
Total
activities
activities
£
£
4,800
4,800
3,850
1,200
6,000
2,650		 8,650
6,000

6. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

7. Staff costs

Wages and salaries
The average monthly number of employees during the year was as follows:
Management		 2020
£
87,145
87,145
2020
8		 2019
£
76,901
76,901
2019
7

No employees received emoluments in excess of £60,000.

Page 17

continued...

MUSLIM WELFARE INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

8. Tangible fixed assets

Cost
At 1 January 2020
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
9.
Debtors: amounts falling due within one year
Other debtors
Prepayments and accrued income
10.
Creditors: amounts falling due within one year
Taxation and social security
Other creditors
11.
Movement in funds
Unrestricted funds
General fund
Donations and legacies
Restricted funds
Donations and legacies
TOTAL FUNDS		 Freehold
property
£
75,748
(75,748)
-
-
-
-
-
75,748
At 1.1.20
£
11,000
159,585
170,585
152,799
323,384		 Fixtures
and
fittings
£
10,590
-
10,590
8,636
293
8,929
1,661
1,954
2020
£
50,387
77,918
128,305
2020
£
584
3,660
4,244
Net
movement
in funds
£
177,011
(293)
176,718
(71,249)
105,469		 Totals
£
86,338
(75,748)
10,590
8,636
293
8,929
1,661
77,702
2019
£
50,000
42,081
92,081
2019
£
270
4,980
5,250
At
31.12.20
£
188,011
159,292
347,303
81,550
428,853

Page 18

continued...

MUSLIM WELFARE INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

11. Movement in funds - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Donations and legacies
Restricted funds
Donations and legacies
TOTAL FUNDS		 Incoming
resources
£
464,057
-
464,057
1,449,401
1,913,458		 Resources
expended
£
(287,046)
(293)
(287,339)
(1,520,650)
(1,807,989)		 Movement
in funds
£
177,011
(293)
176,718
(71,249)
105,469

Comparatives for movement in funds

Unrestricted funds
General fund
Donations and legacies
Restricted funds
Donations and legacies
TOTAL FUNDS		 At 1.1.19
£
-
104,459
104,459
373,122
477,581		 Net
movement
in funds
£
11,000
55,126
66,126
(220,323)
(154,197)		 At
31.12.19
£
11,000
159,585
170,585
152,799
323,384

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

Unrestricted funds
General fund
Donations and legacies
Restricted funds
Donations and legacies
TOTAL FUNDS		 Incoming
resources
£
216,599
7,660
224,259
1,396,042
1,620,301		 Resources
expended
£
(205,599)
47,466
(158,133)
(1,616,365)
(1,774,498)		 Movement
in funds
£
11,000
55,126
66,126
(220,323)
(154,197)

Purpose of Unrestricted Funds

General Fund

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continued...

MUSLIM WELFARE INSTITUTE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

11. Movement in funds - continued

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. This fund are used for various administrative and support activities.

Purpose of Restricted Funds

Lillah, Zakat and Sadqah

Restricted funds can only be used for particular restricted purposes within the objectives of the charity. Restriction arise when specified by donor or when funds are raised for particular restricted purposes. Zakat and Sadqah is used for charitable activity to help and support poor and needy people eligible for Zakat and Sadqah.

12. Related party disclosures

There were no related party transactions for the year ended 31 December 2020.

13. Post balance sheet events

Since the year end, the Covid-19 pandemic has caused considerable disruption to the global economy. Notwithstanding that, Covid-19 is deemed to be a non-adjusting post balance sheet event. Having considered the impact of Covid-19 on the charity, the trustees consider that there are no non-adjusting post balance events that require disclosure in these financial statements as a result of Covid -19.

Page 20

MUSLIM WELFARE INSTITUTE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
£ £
Income and endowments
Donations and legacies
Donations 1,736,866 1,620,301
Other income
-
Gain on sale of tangible fixed assets 169,050
CJRS Grant 7,542 -
-
176,592
Total incoming resources 1,913,458 1,620,301
Expenditure
Raising donations and legacies
Charity dinner 3,710 7,000
Charitable activities
Albania projects 690,080 867,650
India projects 560,240 200,060
Bangladesh projects 235,180 500,150
Adoption and Hardship project 2,380 9,325
West Bengal 35,150 40,180
Other donations 169,639 36,671
1,692,669 1,654,036
Support costs
Management
Wages 87,145 76,901
Other operating leases 203 -
Rates and water 2,181 2,241
Insurance 515 -
Light and heat 1,622 1,922
Telephone 433 775
Postage and stationery 6,142 12,039
Sundries 1,596 799
Fixtures and fittings 293 345
100,130 95,022
Finance
-
Bank charges 1,264
Exchange (Gain)/Loss 267 303
1,531 303
Other
Repairs and renewals - 25
Carried forward - 25
----- End of picture text -----

This page does not form part of the statutory financial statements

Page 21

MUSLIM WELFARE INSTITUTE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
£ £
Other
Brought forward - 25
Motor expenses - 806
Travel expenses 1,299 11,306
1,299 12,137
Governance costs
Auditors' fee 4,800 4,800
Accountancy and legal fees 3,850 1,200
8,650 6,000
Total resources expended 1,807,989 1,774,498
Net income/(expenditure) 105,469 (154,197)
----- End of picture text -----

This page does not form part of the statutory financial statements

Page 22