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2021-08-31-accounts

Registered Charity Number 1080427

Islamic Da’wah Council UK Annual Report & Financial Statements

31[st] August 2021

Islamic Da’wah Council UK

Annual Report & Financial Statements

Contents

Page
Trustee's Report 3
Independent Accountants' report 9
Statement of Financial Activities 10
Balance sheet 11
Notes to the accounts 12

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The Report of the Trustees for the year ended 31[st] August 2021

Introduction

The trustees present their annual report and accounts for the year ended 31[st] August 2021.

The Board of Trustees are satisfied with the performance of Islamic Da’wah Council UK during the year and the position at 31[st] August 2021. The Board consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations. The trustees have considered the going concern assumption and are not aware of any significant doubts about the charity’s ability to continue as a going concern.

Structure, Governance and Management

The charity trustees are responsible for the general control and management of the charity. The trustees meet together as a body three times every year and the trustees are responsible for all decisions taken in relation to running the charity’s facilities and the activities provided by the charity. The day-to-day management of the charity’s facilities and projects are delegated to staff and volunteers.

The trustees are satisfied that systems are in place, or arrangements are in hand, to manage the risks.

Objects of the Charity

The objects of the charity are set out in the charity’s trust deed and are summarised as follows:

Islamic Da’wah Council UK subscribes to pluralism and peaceful coexistence and acknowledges the rights of all to believe as they choose without coercion, fear and intimidation. Our mission is to provide services to British Muslims as well as non-Muslims. Educate through Dawah and advocacy using the Prophetic Model, this includes awareness on the beliefs of Khatam-e-Nubuwat (Finality of Prophet Muhammed – Peace be Upon Him).

Aims of the Charity

Our primary aim is to make Islamic Dawah Council UK a welcoming place for all the local Muslim community including the wider communities throughout the UK. Those who wish to know more about our faith, including non-Muslims are also welcome to contact or visit our charity to learn about their religion and worship.

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Activities and achievements 2021

The charity carries out a wide range of activities in pursuance of its charitable objectives. The trustees consider that these activities, summarized below, provide benefit both to those who attend the Islamic Dawah Council UK (IDC) and the wider communities of UK. Islamic Dawah Council UK provides a centre for our prayers and worship and for the activities associated with our faith. During the year, we offered a range of religious services and activities including:

  1. Our prayer hall is open daily during the time of Salaah (Prayer) and on Friday prayers.

  2. The charity has assisted number of families on providing information pertaining to marriage, provided guidance on solving Divorce problems affecting the Muslim community living within the Borough of Newham including other neighbouring Boroughs. The local community members are satisfied and grateful for receiving these services.

  3. Members of our local community have approached us to seek advice and requested us to provide guidance on various subjects on Islam. We are happy to report that the advice given has assisted a number of people from the local community on various matters raised by them. We have helped and have given advice to many youths and adults who have approached us to talk about way and means of giving up alcohol, smoking and drug addiction.

  4. Throughout the year, the Charity organized and delivered a community religious program on awareness on the beliefs of Khatam-e-Nubuwat (Finality of Prophet Muhammed – Peace be Upon Him). The Charity Scholars, other respected Scholars, and members of the communities attended these events.

  5. Our library contains many books on Islam. We have some books from different religions and faiths. The charity uses these books for reference purposes only to people who come to visit our charity to learn, gain knowledge, and have a better understanding of Islam, including the beliefs and facts of the Khatam-e-Nubuwat (Finality of Prophet Muhammed – Peace be Upon Him). Visitors are able to read these books with the permission of the management and if visitors have any questions or wishes to discuss on various topics of Islam, including the beliefs of Khatam-eNubuwat, (Finality of the Prophet (Peace be Upon Him), we have assisted them with appropriate advice. Any visitors requesting free literatures and leaflets related to Islam and/or beliefs of Khatam-e-Nubuwat we wish to advise them that these are available on the Charity’s website.

  6. An essential part of our strategy is education, including the teaching of correct pronunciations in Arabic language (Tajweed). Our Imams and Volunteers have taught Quran with Tajweed to number of people including women, during their visit to Islamic Da’wah Council UK. We also organized a program for the youths to highlight awareness about the importance of Islamic and General education.

  7. We discussed, planned and prepared for the Islamic festivals throughout the year, including meeting with the local Moon Sighting Committee to discuss about the moon sightings of the Islamic Festivals.

  8. The Charity prepared a Prayer Calendar and distributed it to the local community which is very much appreciated by the local community.

  9. The Quran and Hadeeth Dars is taking place which has benefited the local community.

  10. The Charity has been actively engaging and participating with the council and local enforcement agencies in relation to Counter Terrorism and keeping community safeguarding. IDC is actively

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working with the law enforcement agencies to resolve any issues being faced by local community.

  1. Eid ul Fitar and Eid ul Aza Prayers were led by volunteer. It was very joyful for the community who attended the prayers.

  2. We are delighted to share that one of our Trustee was nominated by the Newham Council to the BBC London Radio “Covid-19 Hero Award” the trustee volunteered with the Public Health Team to disseminate important information about the Covid-19 to the local community for keeping the public safe during the Covid-19 Pandemic.

COVID-19

The Trustees recognise the unprecedented events because of the Covid19 outbreak; the charity claimed appropriate Grants made available by the Government and has taken steps to close and open its premises as per Government announcements and guidelines for the places of worship.

Due to the Covid-19, the demand for the service had dropped, including use of the IDC premises and some of IDC activities have also paused during lockdowns.

The Trustees furloughed its staff and claimed Coronavirus Job Retention Scheme in line with the guidelines HMRC set out which had saved the costs on payroll. There had been a significant impact from the loss of income from the donations, however the money from the Grants, HMRC CJRS and Business Rates holiday has helped the charity to make for the loss. The charity has sufficient reserves to meet its ongoing expenses, should there be a need for it. Furthermore, our expenditure costs are tightly controlled we do not have any significant commitments. Our regular giving through standing orders is expected to continue and we are also using contact less/chip and pin card donations.

Charity meetings took place via e-communications.

IDC is engaged with the Local Council Public Health and MPS Faith Officer, IDC is assisting them by engaging with our local community and educating them on Covid-19 Public Health Safety and encouraging the community to take up the Covid-19 Vaccine because some members from the community are hesitant on taking up the Covid-19 Vaccine.

Public benefit that is provided by the charity

In setting out our objectives and planning our activities the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit. The main focus of our activities is intended to provide the facilities for the community.

Building for the Future

5

Name, registered office and constitution of the charity

The full name of the charity is Islamic Da'wah Council UK

The charity was formed as an unincorporated charity on 25 April 2000

Its registered charity number is 1080427

The registered office is 387 Katherine Road, London E7 8LT

The telephone number is 020 8471 4434

Nature of the Governing Document and constitution of the charity

The charity is an unincorporated charity governed by a written constitution adopted by its members. There are no restrictions in the governing document on the operation of the charity or on its investment powers, other than those imposed by general charity law.

The Board of Trustees are:

Trustee Name

Mr Abdul Bawa Mr Gulam Dalal Mr Qaiser Azad Mr Adeel Ghauri Mr Zubair Bawa

The Bankers are:-

Barclays Bank

Risk Management

The Trustees are satisfied that all systems are in place or arrangements are in hand to manage the risks that have been identified. Health and Safety is a key priority and COVID secure measures are maintained for regular monitoring and assessments to keep our members and guests safe. Fire and Risk Assessments are regularly undertaken and recorded.

As a registered charity, the association endeavours to assist in community welfare, faith matters and education. All our community facilities and activities are well communicated. We welcome the participation of all in our community and want to make the centre an accessible and welcoming venue where all who wish to know more about the Islamic faith, can gather together to learn about the religion and worship.

Security is reviewed regularly and improved as required with continuous coordination.

Free Reserves

The Charity as at 31[st] August 2021 had free reserves of £282,952 (2020: £215,128). The charity’s focus is on cash flow for financial sustainability. The charity’s activities are managed in accordance with cashflow available.

Going Concern

The Trustees considered the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations. The trustees have considered

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the going concern assumption and are not aware of any significant doubts about the charity’s ability to continue as a going concern.

Recruitment and appointment of new trustees

The existing trustees are responsible for the recruitment of new trustees. New Trustees shall be appointed by a resolution of the Trustees passed at a special meeting. In selecting new trustees, we seek to identify people who adhere to teachings of the Quran and the Sunnah of Prophet Muhammed (Peace be upon Him) and can make a contribution to the pursuit of the objects or the management of the charity.

The process involves determining the optimum skills, knowledge and experience mix for the: current operational climate and needs, identifying potential members, promoting and explaining the activities of the Board to potential members. Quality, characteristics and qualifications are decided upon when selecting members of the Board of Trustees.

Relationships between the charity and related parties

The induction of new Trustees would include an explanation of the function of the Board of Trustees and appointing a mentor for the new member to the Board of Trustees. An overview of the organisation and its activities is provided. On-going appropriate training is recommended.

The contribution of volunteers

Islamic Da’wah Council UK has been dependant on volunteer support in order to establish Islamic Da’wah Council and set the foundations for its future success. Volunteers are an important resource in both our faith and community support work. We have volunteers who are involved in our activities who willingly give their time freely. The Trustees are comprised of religious ministers and others, continue to manage the charity on a completely voluntary basis with guidance from the Charity Commission. We encourage all members of the centre to be involved in voluntary activities and share their skills. The Trustees would like to thank all those who have volunteered their time to Islamic Da’wah Council.

Financial Review

Policies on reserves

The trustees have resolved to establish reserves to provide for future activities, and to provide funding for the expected expenditure for six months ahead. The policy on reserves is that the existing assets are retained to produce income which is wholly utilised to support existing activities. There is no intention in the long term to either increase or reduce the capital significantly. This policy is justified in that it is necessary to preserve income at the present levels in order to maintain the activities of the charity.

The principal funding sources was voluntarily donations primarily from the community. The board of trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations in respect of each fund.

Availability and adequacy of assets of each of the funds.

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

Transactions and Financial position

The financial statements are set out on pages 10 to 18.

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The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Statement of Recommended Practice and Section IA of FRS102. As stated in the introduction to this report, the trustees consider the financial performance by the charity during the year to have been satisfactory.

The Statement of Financial Activities show incoming resources for the year of a revenue and realised nature of £59,692; (2020: £33,070). A majority of the expenditure is spent on delivering the charitable activities as stated in the Charity's aims and objectives.

Trustees' Responsibilities

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the best practice and prepare the accounts according to the Statement of Recommended Practice and Section IA of FRS102.

In particular, charity law requires the Trustees, if they prepare accounts on an accruals basis, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial - statements the Trustees are required to:

The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the charity legislation. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are also responsible for the contents of the Trustees' report, and the accountant preparing the accounts has no responsibilities in relation to the Trustees' report.

This report was approved by the board of trustees on 28[th] April 2022 .

Mr A R Y Bawa

Trustee

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Report of the Independent Examiner to the trustees on the accounts of the Charity for the year ended 31 August 2021

We report on the financial statements of the charity on pages 10 to 18.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charity’s Act 2011. The trustees consider that an audit is not required for this under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination. The charity's gross income did not exceed £250,000 and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.

Basis of independent examiner's report

My examination was carried out in I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records, It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set in the next statement.

Independent Examiner's Statement

In connection with my examination, no matter has come to my attention with the examination which gives me cause to believe that in, any material aspect:

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.

The Examiner's relevant professional qualification is: Chartered Certified Accountant.

J Akhtar FCCA DcHA

Virtus FS

Chartered Certified Accountants

The date upon which this report was completed is:-

28 April 2022

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Islamic Da’wah Council UK

Statement of Financial Activities

for the year ended 31 August 2021


Unrestricted
Restricted
Total
Last
Year
Funds
Funds
Funds
Total
Funds
Notes
2021
2021
2021
2020
£
£
£
£
Income From
Donation and legacies
4
77,665
-
77,665
59,651
Total income
77,665
-
77,665
59,651
Expenditure On
Raising funds
-
-
-
-
Charitable activities
5
17,973
-
17,973
26,581
Total expenditure
17,973
-
17,973
26,581
Net income / (Expenditure)
59,692
-
59,692
33,070
Net movement in funds
59,692
-
59,692
33,070
Reconciliation of funds
Total funds brought forward
629,564
- 629,564
596,494
Total Funds carried forward
12
689,256
-
689,256
629,564
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 18 form an integral part of these accounts.




Unrestricted
Restricted
Total
Last
Year
Funds
Funds
Funds
Total
Funds
2021
2021
2021
2020
£
£
£
£
77,665
-
77,665
59,651


77,665
-
77,665
59,651
-
-
-
-
17,973
-
17,973
26,581

17,973
-
17,973
26,581
59,692
-
59,692
33,070
59,692
-
59,692
33,070
629,564
- 629,564
596,494

689,256
-
689,256
629,564
Islamic Da’wah Council UK
Balance Sheet as at 31 August 2021
Note
s
The assets and liabilities of the charity:
Fixed assets
Tangible assets
8
Total fixed assets
Current assets
Debtors
9
Cash at bank and in hand
Total current assets
Creditors
amounts due within one year
10
Net current assets
Total assets less current liabilities
Creditors:-
Amounts due after one year
11
Net assets
The funds of the charity :
Unrestricted income funds
Unrestricted revenue accumulated funds
Restricted income funds
Total charity funds
12
-
379,886
2021
£
357,844
357,844


379,872
737,716
(48,460)
689,256
689,256
-
689,256
-
313,579
2020
£
365,976
365,976


312,048
379,886 313,579
(14) (1,531)
678,024
(48,460)
629,564
629,564
-
629,564

The financial statements were approved by the Board of Trustees on 28[th] April 2022 and were signed on its behalf by:

Mr A R Y Bawa

Trustee

The notes on pages 12 to 18 form an integral part of these accounts.

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Islamic Da’wah Council UK Notes to the accounts

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation of the accounts

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Section IA of FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The charity has taken advantage of the exemption from the requirement to produce a cash flow statement.

The charity meets the definition of a public entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction unless otherwise stated in the relevant accounting policy note.

b) Preparation of the accounts on a going concern basis

The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern.

There were no key judgements made by the trustees which have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next accounting period.

c) Income

Income is recognised where the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

d) Expenditure and irrevocable VAT

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. Expenditure is classified under the following activity headings:

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Notes to the accounts (continued)

The methods and principles for the allocation and apportionment of all costs between the different activity categories of resources set out above are:-

There are a number of costs, where it is impracticable to allocate these costs precisely between administration and charitable expenditure and the trustees have allocated such costs on the basis of reasonable estimates as follows: On the basis of salary costs and estimated time spent on different activities.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

e) Tangible fixed assets

Individuals fixed assets costing £1,000 or more are capitalised at costs and depreciated over their estimated useful economic live on a straight-line basis. The charity has not acquired any assets over the capitalisation cost of £1,000 in the current year or prior year.

Fixed Assets 2%

Computer and Office equipment 25%

f) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued ay the amount prepaid net of any trade discounts due.

g) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments in short term deposit accounts.

h) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result 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 and Provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

i) Taxation

The charity meets the criteria and tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore meets the definition of a charitable company for UK taxation purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within the categories covered by Income Tax Act 2007 or Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. No corporation tax liability arises in the accounts.

j) Funds Accounting

Funds held by the charity are:

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Notes to the accounts (continued)

2. Surplus for the financial year

2021 2020
This is stated after crediting: £ £
Income 59,692 33,070
And after charging:
Depreciation of owned fixed assets 8,132 8,132
3. Expenses paid to trustees
2021 2020
£ £
The aggregate amount of expenses paid to trustees was (travel) 70 -

4. Income by Activity

4.
Income by Activity
Income From
Donations and legacies
Total Income
2021
2020
Religious services
Total
Total
£
£
£
77,665
77,665
59,652
77,665
77,665
59,652

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Notes to the accounts (continued)

Expenditure
Charitable activities
Total expenditure
Net income by activity
17,973
17,973
26,581
17,973
17,973
26,581
59,692
59,692
33,070

5. Analysis of charitable expenditure by activity

Religious
services Total 2020
Total 2021
Nature of charitable expenditure £ £
Activities undertaken directly 7,655 15,975
Support costs of charitable activities 10,318 10,606
Total charitable expenditure analysed by activity 17,973 26,581 21,910

An explanation of the main features of charitable expenditure is given in note 1 to the accounts

6. Analysis of Total Support Costs by Activity

Religious
services Total 2021 Total 2020
Nature of support costs £ £ £
Supporting provision of Religious Services 2,186 2,186 2,474
Depreciation 8,132 8,132 8,132
Total support costs analysed by activity 10,318 10,318 10,606

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Notes to the accounts (continued)

7.
Staff Costs and Emoluments
Gross Salaries
Employer's National Insurance
Numbers of full-time equivalents employees
Religious Services
2021
£
3,984
-
3,984
2021
2
2020
£
12,207
-
12,207
2020
2

Volunteers have donated an unquantifiable amount of time to Islamic Da’wah Council UK of which is impossible to reflect.

There were no fees or other remuneration to the trustees.

There were no employees with emoluments in excess of £60,000 per annum.

8. Tangible functional fixed assets

Land and
buildings
£
Asset cost, valuation or revalued amount
At 1 September 2020 406,636
At 31 August 2021 406,636
Accumulated depreciation and impairment provisions
At 1 September 2020 40,660
Charge for the year 8,132
At 31 August 2021 48,792
Net book value
At 31 August 2020 365,976
At 31 August 2021 357,844

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Notes to the accounts (continued)

9.
Debtors
2021 2020
£ £
Other Debtors - -
10. Creditors: amounts falling due within one year 2021 2020
£ £
Other Creditors 14 1,531
11. Creditors: amounts falling due after one year 2021 2020
£ £
Unsecured loans (acquired for property acquisition) 48,460 48,460

12. Analysis of assets and liabilities representing funds

At 31 August 2021
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Unrestricted
funds
£
357,844
379,886
(14)
(48,460)
689,256
Restricted
funds
£
-
-
-
-
-
Total
Funds
£
357,844
379,886
(14)
(48,460)
689,256
At 1 September 2020
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Unrestricted
Funds
365,976
313,579
(1,531)
(48,460)
629,564
Restricted
funds
-
-
-
-
-
Total
Funds
365,976
313,579
(1,531)
(48,460)
629,564

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Notes to the accounts (continued)

The individual funds included above are :-

Religious Services
Analysis of movements in funds
Religious Services
Funds at
Movements
2020
in
Funds
as below
£
£
629,564
59,692
629,564
59,692
as shown in the table above
Incoming
Outgoing
Resources
Resources
£
£
77,665
17,973
77,665
17,973
Transfers
Between
funds
£
-
-
Gains &
Losses
£
-
-
Funds at
2021
£
689,256
689,256
Movement
in funds
£
59,692
59,692

13. Endowment Funds

The charity had no endowment funds in the year ended 2021 or in the year ended 2020.

14. Related Parties

Mr Abdul Rehman Yaqub Bawa and Mr Zubair Abdul Rehman Bawa, trustees are close members related by family.

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