2022-03-31-accounts - Muslim Burial Council Of Leicestershire

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Registered number 05406938

Charity number 1087143

MBCOL Limited (Limited by Guarantee)

Report and Accounts

31 March 2022

MBCOL Limited Company Information

Directors

Dr L A Ali M S Esat Dr K Hoque M Jamal M Jamil S A Sattar M A Saleh

Auditors

Smith Hannah Limited 50 Woodgate Leicester LE3 5GF

Bankers

Barclays Bank Plc Highfields Leicester

National Westminster Bank Plc East Park Road Leicester

Registered office

50 Woodgate Leicester LE3 5GF

Registered number

05406938

MBCOL Limited Registered number: 05406938 Directors' Report

The directors present their report and accounts for the year ended 31 March 2022.

Objective and activities

MBCOL Limited, known as Muslim Burial Council of Leicestershire, is limited by guarantee (number 5406938) and a registered charity (number 1087143). Its principal address is 1a Moat Road, Leicester LE5 5EF.

The company's objective and principal activity during the year continued to be the provision of out of hours burial services for the inhabitants of Leicestershire irrespective of which faith or belief they follow.

Future developments

The company is reliant on funding from the local council to carry out its day to day activities. The funding contract was awarded in 2015 and expired in September 2019, and this was temporarily extended to 30 September 2021. LCC has not renewed this contract. The company has sufficient reserves to enable it to continue its current activities whilst exploring other possible income streams.

Directors

The directors of the charitable company are its trustees for the purpose of charity law and throughout this report are collectively referred to as directors.

The following persons served as directors during the year:

Dr L A Ali M S Esat Dr K Hoque M Jamil M Saleh S A Sattar M Jamal

The company is limited by guarantee and has no share capital. In the event of the company being wound up, members are required to contribute an amount not exceeding £10.

Recruitment and Appointment of trustees

MBCOL Limited is governed by a board of trustees drawn from the local community. This is to ensure that the board has the skills and experience required to oversee the management of the charity and its operations.

All trustees are elected by a majority vote at an Annual General Meeting who then hold office from the conclusion of that meeting up to a term of five years.

MBCOL Limited Registered number: 05406938 Directors' Report

Trustee Induction and Training

All new trustees receive a planned induction programme before taking up their place on the board. This includes an explanation of their roles and responsibilities, an introduction to other trustees, an overview of recent business and an explanation of board format and process, plus a personal meeting with the Chair.

Risk Management

The directors have a risk management strategy which includes an annual review of the risks the charity faces and the establishment of systems and procedures to mitigate those risks and implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.

Review of activities for the year

The charity recorded a deficit was £4,562 (2021: surplus of £4,752) for the year.

The detailed results are set out in the attached financial statements.

Reserves policy

The directors aim to ensure that sufficient funds are maintained to enable the charity to carry out its activities.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:

so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Small company provisions

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. The directors confirm that they have complied with the duty in Section 4 of the charities Act 2006 to have due regard to the Charity Commssion's general guidance on public benefit.

This report was approved by the board on 23 March 2023 and signed on its behalf.

M S Esat (Mar 29, 2023 12:01 GMT+1)

M S Esat Director

MBCOL Limited Statement of Directors' Responsibilities

The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations.

Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MBCOL Limited Independent auditor's report to the members of MBCOL Limited

Opinion

We have audited the accounts of MBCOL Limited for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the accounts, 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, including FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its deficit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
● Phave been prepared in accordance with the requirements of the Companies Act 2006.ti

Basis of 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 Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out below, 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.

Material uncertainty related to going concern

We draw attention to note 1 in the financial statements, which indicates that the company's major contract was not renewed beyond 30 September 2021. The non renewal of the contract will significantly affect the ability of the company to carry out its activities and continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the report and accounts, other than the accounts and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the accounts 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 accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the directors’ report for the financial year for which the accounts are prepared is consistent with the accounts; and
●the directors’ report has been prepared in accordance with applicable legal requirements.

MBCOL Limited Independent auditor's report to the members of MBCOL Limited

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
● certain disclosures of directors’ remuneration specified by law are not made; or ● we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the accounts in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the directors are responsible for assessing the company’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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 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 accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent of procedures to detect irregularities

Irregularities, including fraud, are instances of non-compliance with laws and regulations. Our procedures are designed in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regularity frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through the review of board minutes and discussions with those charged with governance.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and dictate fraud, and how these are monitored by management and also any enhanced risk factors such as performance targets.

MBCOL Limited Independent auditor's report to the members of MBCOL Limited

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

M I Umar (Senior Statutory Auditor) 50 Woodgate for and on behalf of Leicester Smith Hannah Limited LE3 5GF Accountants and Statutory Auditors 23 March 2023

MBCOL Limited

Statement of Financial Activities for the year ended 31 March 2022

Notes Incoming resources 3 Income from investments Total incoming resources Resources expended Other direct costs 4 Administrative expenses 5 Total resources expended Net (outgoing)/incoming resources for the year Income from charitable activities and generated funds	2022 £ 39,274 3 39,277 (8,192) (35,647) (43,839) (4,562)	2021 £ 54,055 14 54,069 (7,270) (42,047) (49,317) 4,752

MBCOL Limited Registered number: 05406938 Balance Sheet as at 31 March 2022

Notes Current assets Stocks Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Net assets Unrestricted funds Designated 9 General 10 Net funds	2022 £ 820 1,839 92,491 95,150 (6,924) 88,226 88,226 30,797 57,429 88,226	2021 £ 820 944 98,996 100,760 (7,972) 92,788 92,788 30,797 61,991 92,788

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The Statement of Financial Activities has not been delivered to the Registrar of Companies.

M S Esat (Mar 29, 2023 12:01 GMT+1)

M S Esat Director Approved by the board on 23 March 2023

MBCOL Limited Notes to the Accounts for the year ended 31 March 2022

1 Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

The accounts have also been prepared with the Statement of Recommended Practiced (SORP) - "Accounting and Reporting by Charities" issued by the Charity Commissioners in England and Wales.

Going concern

The company was reliant on funding from the local council to carry out its day to day activities. Following expiry of the contract in September 2019, the local council extended the contract with MBCOL Limited until 30 September 2021. LCC funding will not continue beyond this date as MBCOL was unsuccessful in its tender bid. In view of this, material uncertainty exists over the ability of the company to continue its operations.

MBCOL has had interactions with some affiliates who feel strongly that MBCOL must continue with its advocacy work in spite of no longer doing out of hours funerals. To fund this work new revenue streams will be explored including membership fees; general community fundraising; and applications made for funding pots.

Income

Grant income represents amounts received and receivable from Leicester City Council. Donations, interment fees and other income are accounted for when received.

Resources expended

Resources expended are accounted for as a liability is incurred. Expenditure includes irrecoverable VAT which is reported as part of the expenditure to which it relates.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation. The costs of minor additions or those costing below £3,000 are not capitalised. Any assets donated with a market value below £5,000 are not capitalised. Depreciation is provided at rates calculated to write off of each asset over its estimated useful life of 4 years.

Stocks

Stocks are measured at the lower of cost and net realisable value.

Funds

Funds comprise of unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. The directors use part of the unrestricted funds for various specific projects and have set up a designated fund to reflect this. The funds held in each of the relevant categories are disclosed in the notes to the accounts.

MBCOL Limited Notes to the Accounts for the year ended 31 March 2022

2 Audit information

The audit report is unqualified.

Senior statutory auditor: M I Umar Firm: Smith Hannah Limited Date of audit report: 23 March 2023

Income from charitable activities and generated funds LCC funding Rent received Timber sales Funeral income Donations Other direct costs Grave preparation and related costs (adjusted for stock) Administrative expenses Rent and rates Light and heat Telephone and fax Motor and travel Stationery and printing Computer, IT consumables and maintenance Subscriptions Bank charges Insurance Equipment expensed Repairs and maintenance Meeting and events Donations - COVID 19 support group Sundry expenses Audit and accountancy fees Consultancy fees Other legal and professional	2022 £ 20,235 1,250 11,425 5,589 775 39,274 2022 £ 8,192 2022 £ 7,493 1,016 1,531 1,781 349 420 105 56 1,328 980 66 1,108 - 59 1,440 17,000 915 35,647	2021 £ 40,469 - 6,080 3,405 4,101 54,055 2021 £ 7,270 2021 £ 6,137 1,456 1,743 1,425 166 1,503 132 38 1,863 602 398 506 1,102 40 886 24,000 50 42,047

3 Income from charitable activities and generated funds

4 Other direct costs

5 Administrative expenses

MBCOL Limited

Notes to the Accounts

for the year ended 31 March 2022

6 Tangible fixed assets

Cost At 1 April 2021 At 31 March 2022 Depreciation At 1 April 2021 At 31 March 2022 Net book value At 31 March 2022 7 Debtors Trade debtors Other debtors 8 Creditors: amounts falling due within one year Other creditors	Plant and machinery etc £ 3,893 3,893 3,893 3,893 - 2022 £ - 1,839 1,839 2022 £ 6,924	2021 £ 310 634 944 2021 £ 7,972

MBCOL Limited

Notes to the Accounts

for the year ended 31 March 2022

9 Designated Funds At 1 April 2021 At 31 March 2022 Designated funds comprise :- Multi Faith Bereavement Book Project 20th Anniversary Celebration Fund Centralised Services Total 10 General Funds At 1 April 2021 Deficit for the year Transfer to designated funds At 31 March 2022	2022 £ 30,797 30,797 £ 5,500 5,000 20,297 30,797 2021 £ 61,991 (4,562) - 57,429	2021 £ 30,797 30,797 £ 5,500 5,000 20,297 30,797

11 Other information

MBCOL Limited is a private company limited by guarantee and incorporated in England. Its registered office is: 50 Woodgate Leicester LE3 5GF

The principal place of operation is:

1A Moat Road Leicester LE5 5EF