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2023-08-31-accounts

Registered Charity Number 1080427

Islamic Da’wah Council UK

Annual Report & Financial Statements

31[st] August 2023

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

2

The Report of the Trustees for the year ended 31[st] August 2023

Introduction

The trustees present their annual report and accounts for the year ended 31[st ] August 2023.

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 2023. The Board considers that the charity is in a strong position to continue its activities during the coming year and that its 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. They meet three times every year and make all decisions about running the charity’s facilities and activities. The dayto-day management of the charity’s facilities and projects is delegated to staff and volunteers.

The trustees are satisfied that systems or arrangements are in place 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, or intimidation. Our mission is to provide services to British Muslims and non-Muslims. We educate through Dawah and advocacy using the Prophetic Model. This includes awareness of 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 the local Muslim community and the broader communities throughout the UK. Those who wish to know more about our faith, including non-Muslims, are welcome to contact or visit our charity to learn about their religion and worship.

3

IDC Activities and Achievements 2023

The charity carries out various activities to pursue its charitable objectives. The trustees consider that these activities, summarised below, benefit those who attend the Islamic Dawah Council UK (IDC) and the broader communities of the UK. Islamic Dawah Council UK provides a centre for our prayers, worship, and 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 Salaah (Prayer) and Friday prayers.

  2. The charity has assisted several families by providing information about marriage and 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 that we guide various subjects related to Islam. We are happy to report that our advice has assisted several people from the local community on multiple matters they raised. We have also helped and advised many youths and adults who have approached us to talk about ways and means of giving up alcohol, smoking, and drug addiction.

  4. Throughout the year, the Charity organised and delivered various religious programs, including one on awareness of 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. This is a tremendous achievement as it has benefited the Muslim communities by teaching them how to live a peaceful life.

  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 can read these books with the permission of the management, and if visitors have any questions or wish to discuss various topics of Islam, including the beliefs of Khatam-e-Nubuwat (Finality of the Prophet (Peace be Upon Him), we have assisted them with appropriate advice. For visitors requesting accessible literature and leaflets related to Islam and the beliefs of Khatame-Nubuwat, we wish to advise them that these are available on Charity’s website.

  6. An essential part of our strategy is education, including teaching correct pronunciations in the Arabic language (Tajweed). Our Imams and Volunteers have taught the Quran with Tajweed to many people, including women, during their visit to the Islamic Da’wah Council UK. We also organised 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 the moon sightings of the Islamic Festivals.

  8. The charity prepared a prayer calendar and distributed it to the local community, which is much appreciated.

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

  10. The Charity has been actively engaging and participating with the council and local enforcement agencies regarding counterterrorism and safeguarding the community. IDC actively works with law enforcement agencies to resolve issues the local community faces.

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  1. Imams led Eid ul Fitr and Eid ul Aza Prayers. After the prayers, attendees shared food, which was very joyful for the community.

  2. One of our trustees was invited by the Newham Council, where he was given a Covid Health Champion Award. This award was in recognition of his outstanding volunteer work, which he had achieved as a Covid Health Champion since the start of the COVID-19 pandemic. He assisted the council’s public health team in disseminating COVID-19-related information to the local community.

  3. Throughout the year, IDC Ulama attended various types of religious and non-religious meetings and forums, including multi-faith meetings within the local and national communities, where IDC had an opportunity to deliver Dawah work as well as engage in dialogue on how one should have a peaceful life and how parents can safeguard and prevent children falling into bad habits, i.e. drug abuse and mixing with the wrong crowds within their respective communities. These events help to strengthen the connections between the faith groups.

  4. IDC Ulama attended the Newham Faith Forum, where IDC had an opportunity to meet the New Faith Met Officer for the first time.

  5. IDC held a Nasheed Conference, which local community members attended and thoroughly enjoyed. Humayun Jamshid performed at the event.

  6. A Quran recitation program was held at IDC. Sheikh Saad Noumani of Medina was in attendance, and he recited the Quran with his beautiful voice. The local community who attended enjoyed the event.

  7. IDC received an invitation from the Birmingham Jamia Masjid event on the lift of Prophet Issa (PBUH) and Maryam. IDC Ulama attended the event and gave a speech on our beloved Prophet Issa (PBUH) and his mother, Maryam.

  8. IDC is part of the Newham Council, where one of our trustees is a Cost-of-living Champion, for which the council provides ongoing training. The Council shares information with IDC about the help and support available with the cost-of-living, distributed to the local community.

  9. Throughout the year, IDC has assisted the local community members with advice and signposting on Cost-of-living, Housing, Homelessness, and welfare benefits.

Public benefit that the charity provides:

In setting out our objectives and planning our activities, the Trustees have carefully considered the Charity Commission’s guidance on public benefit. Our primary focus is providing facilities for the community.

Building for the Future:

5

organise meetings and exchange ideas with the management committees of other local Mosques in the Borough of Newham.

Registered office, and charity constitution

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

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 charity’s operation or 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. Fire and Risk Assessments are regularly undertaken and recorded.

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

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

Free Reserves

As of 31 August 2023, the charity had free reserves of £456,401 (2022: £378,102). The charity focuses on cash flow for financial sustainability, and the available cash flow manages its activities.

6

Going Concern

The trustees considered the charity in a strong position to continue its activities during the coming year and that its 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.

Recruitment and appointment of new trustees

The existing trustees are responsible for the recruitment of new trustees. A resolution of the Trustees shall appoint new Trustees passed at a special meeting. In selecting new trustees, we seek to identify people who adhere to the 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, and promoting and explaining the Board's activities 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 of 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 depended on volunteer support to establish the Islamic Da’wah Council and set the foundations for its future success. Volunteers are an essential resource in both our faith and community support work. We have volunteers involved in our activities who willingly give their time freely. The Trustees, comprised of religious ministers and others, continue to manage the charity voluntarily with guidance from the Charity Commission. We encourage all center members to be involved in voluntary activities and share their skills. The Trustees would like to thank all those who have volunteered their time to the 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 expenditures for six months ahead. The policy on reserves is that the existing assets are retained to produce income 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 to maintain the charity’s activities.

The principal funding source was voluntary donations, primarily from the community. The board of trustees is satisfied that the charity's assets are available and adequate to fulfil its obligations concerning each fund.

Availability and adequacy of assets of each of the funds.

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

7

Transactions and Financial Position

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

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

The Statement of Financial Activities shows incoming resources for the revenue year and the realised nature of £75,167 (2022: £87,018). Most 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 preparation of the accounts in accordance with the terms of the Charities Act 2011 and best practices, and they 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 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 not approve the accounts unless they are satisfied that they give a true and fair view of the charity’s state of affairs and its yearly surplus or deficit.

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the charity's financial position and 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 charity’s assets and, hence, for taking reasonable steps to prevent and detect 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 21[st] April 2024.

Mr A R Y Bawa

AB

Trustee

8

Report of the Independent Examiner to the trustees on the accounts of the Charity for the year ended 31 August 2023

We report on the charity's financial statements 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 Act 2011. The trustees consider that an audit is not required 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 required in an audit; 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 following 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 not encountered any other matters concerning the examination to which attention should be drawn in this report 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:-

23 April 2024

9

Islamic Da’wah Council UK Statement of Financial Activities for the year ended 31 August 2023

Islamic Da’wah Council UK
Statement of Financial Activities
for the year ended 31 August 2023
Last
Unrestricted Restricted Total Year
Total
Funds Funds Funds Funds
Notes 2023 2023 2023 2022
£ £ £ £
Income From
Donation and legacies 4 110,994 - 110,994 119,410
Total income 110,994 - 110,994 119,410
Expenditure On
Raising funds - - - -
Charitable activities 5 35,827 - 35,827 32,392
Total expenditure 35,827 - 35,827 32,392
Net income / (Expenditure) 75,167 - 75,167 87,018
Net movement in funds 75,167 - 75,167 87,018
Reconciliation of funds
Total funds brought forward 776,274 - 776,274 689,256
Total Funds carried forward 12 851,441 - 851,441 776,274
e statement of Financial Activities includes all gains and losses recognised in the year.
he notes on pages 12 to 18 form an integral part of these accounts.

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.

Islamic Da’wah Council UK
Balance Sheet as at 31 August 2023
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
-
554,867

2023
£
346,580
346,580
553,321
899,901
(48,460)
851,441
851,441
-
851,441
-
476,683

2022
£
349,712
349,712
475,022
824,734
(48,460)
776,274
776,274
-
776,274

554,867

476,683

(1,546)

(1,661)

The financial statements were approved by the Board of Trustees on 21[st] April 2024 and were signed on its behalf by:

Mr A R Y Bawa

AB

Trustee

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

11

Islamic Da’wah Council UK Notes to the accounts

1. Accounting policies

The principal accounting policies adopted, judgements and critical 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 (2019). Unless otherwise stated in the relevant accounting policy note (s), assets and liabilities are initially recognised at historical cost or transaction value. 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.

The trustees made no key judgements, which significantly affected 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 is entitled 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 reliably measured.

d) Expenditure and irrevocable VAT

Expenditure is recognised once there is a legal or constructive obligation to pay a third party; settlement will probably be required, and the obligation amount can be measured reliably. Expenditure is classified under the following activity headings:

12

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:-

It is impracticable to precisely allocate costs between administration and charitable expenditures. The trustees have allocated such costs based on reasonable estimates: 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

Individual fixed assets costing £1,000 or more are capitalised at cost and depreciated straightline over their estimated useful economic life. The charity has not acquired any assets over the capitalisation cost of £1,000 in the current 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 at the amount prepaid net of any trade discounts owing.

g) Cash at the bank and in hand

Cash at the bank and cash in hand include 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 in the transfer of funds to a third party. The amount due to settle the obligation can be reliably measured or estimated. 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 regarding income or capital gains received within the categories covered by the Income Tax Act 2007, 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:

13

Notes to the accounts (continued)

2. Surplus for the financial year

2023 2022
This is stated after crediting: £ £
Income 75,167 87,018
And after charging:
Depreciation of owned fixed assets 8,132 8,132
3. Expenses paid to trustees
2023 2023
£ £
The aggregate amount of expenses paid to trustees was (travel) - -

4. Income by Activity

Income From
Donations and legacies
Total Income
Religious services
£
110,994
2023
Total
£
110,994
2022
Total
£
119,410
110,994 110,994 119,410

14

Notes to the accounts (continued)

Expenditure
Charitable activities
Total expenditure
Net income by activity
2023
35,827
2023
35,827
2022
32,392
35,827
75,167
35,827
75,167
32,392

87,018

5. Analysis of charitable expenditure by activity

Religious
services Total 2022
Total 2023
Nature of charitable expenditure £ £
Activities undertaken directly 23,722 21,884
Support costs of charitable activities 12,105 10,508
Total charitable expenditure analysed by activity 35,827 32,392

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

Nature of support costs
Supporting provision of Religious Services
Depreciation
Total support costs analysed by activity
Religious
services
£
3,973
8,132
12,105
Total 2023
£
3,973
8,132
12,105
Total 2022
£
2,376
8,132
10,508

15

Notes to the accounts (continued)

7.
Staff Costs and Emoluments
Gross Salaries
Employer's National Insurance

Numbers of full-time equivalents employees
Religious Services
2023
£
17,721

17,721

2023
2
2022
£
17,215
17,215
2022
2

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

There were no fees or other remuneration to the trustees.

There were no employees with payments over £60,000 per annum.

8. Tangible functional fixed assets

Land and Land and Land and
buildings
£
Asset cost, valuation or revalued amount
At 1 September 2022 406,636
Additions
5,000
At 31 August 2023
411,636
Accumulated depreciation and impairment provisions
At 1 September 2023 56,924
Charge for the year 8,132
At 31 August 2023 65,056
Net book value
At 31 August 2022 349,712
At 31 August 2023 346,580

16

Notes to the accounts (continued)

9. Debtors 2023 2022
£ £
Other Debtors - -

10. Creditors: amounts falling due within one year

10. Creditors: amounts falling due within one year 2023 2022
£ £
Other Creditors 1,546 1,661
11. Creditors: amounts falling due after one year 2023 2022
£ £
Unsecured loans (acquired for property acquisition) 48,460 48,460

12. Analysis of assets and liabilities representing funds

At 31 August 2023
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Unrestricted
funds
£
346,580
554,867
(1,546)
(48,460)
851,441
Restricted
funds
£
-
-
-
-
-
Total
Funds
£
346,580
554,867
(1,546)
(48,460)

851,441
At 1 September 2022
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Unrestricted
Funds
349,712
476,683
(1,661)
(48,460)
776.274
Restricted
funds
-
-
-
-
-
Total
Funds
349,712
476,683
(1,661)
(48,460)

776.274

17

Notes to the accounts (continued)

The individual funds included above are :-

----- Start of picture text -----
Funds at Movements Transfers Funds at
2022 in Between 2023
Funds funds
as below
£ £ £ £
-
Religious Services 776,274 75,167 851,441
-
776,274 75,167 851,441
Analysis of movements in funds as shown in the table above
Incoming Outgoing Gains & Movement
Resources Resources Losses in funds
£ £ £ £
-
Religious Services 110,994 35,827 75,167
-
110,994 35,827 75,167
----- End of picture text -----

13. Endowment Funds

The charity had no endowment funds in the year ended 2023 or in the year ended 2022.

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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