REGISTERED CHARITY NUMBER: 1089411
TRUSTEES' REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2020
FOR
USMANI MOSQUE
Watergates Ltd 109 Coleman Road Leicester LE5 4LE
USMANI MOSQUE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
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Page
Trustees' Report 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Statement of Financial Position 6
Notes to the Financial Statements 7 to 12
Detailed Statement of Financial Activities 13 to 14
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TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020
USMANI MOSQUE
The trustees present their report with the financial statements of the charity for the year ended 31st 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
Our objectives are set to reflect our faith and community aims. Each year our trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
The principal activities of Usmani Mosque in the year under review were those of the registered charity and its principal object remain to provide after-school Islamic education for 7-16 years old in accordance with Sunni Muslim faith and to provide a facility where Muslims can worship.
The charity will provide a community centre for social activity with the younger generation in mind. The centre will also provide for the needs of the older generation. The charity's aim is to develop life long leisure interests and help build self confidence and a desire to contribute to the community.
ACHIEVEMENT AND PERFORMANCE Religious and Community activities
Our Mosque provides a centre for our prayers and worship and for the activities associated with our faith. Our community hall provides a valuable recreational resource to all in our local community. During the year under review, we offered a range of religious and community services and activities including:
Prayers: The Mosque is open all day for daily and Friday prayers. During the week we have over 100 people who regularly attend daily prayers and over 500 who regularly attend Friday prayers.
Festivals: The Mosque offers food during Ramadan for those attending our Mosque who wish to break their fast together as well as Eid is also celebrated at Mosque.
Funeral facilities: The Mosque provides a complete funeral service in line with the teachings of Islam. We relieve the deceased's bereaved relatives of the burden of organising burials.
Nikkah (Islamic Marriage): The Mosque provides Muslim couples with an appropriate location for their Nikkah. Over 2 couples were married at the mosque in the year.
Hifz classes: Memorisation of the Qur'an is considered an important element of religious education and training. We continue to provide this facility for the young people in the Mosque. We are pleased this programme which continues to run successfully with over 23 young people regularly attending these classes.
Hall facilities: Our hall is available for use by local groups and organisations. Local charities are also encouraged to make use of our hall. When hall facilities are not required for community use they are available for hire on commercial terms.
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USMANI MOSQUE
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020
FINANCIAL REVIEW
Financial position
During the year, incoming resources have decreased to £204,035 (2019: £372,581) whereas resources expended have decreased to £126,328 (2019: £126,642) thus resulting in a surplus for the year of £77,707 (2019: £245,939).
Voluntary income has decreased to £127,186 (2019: £273,685). Madrassa fees has decreased to £35,199 (2019: £89,346) due to covid during the year.
The mosque collected £764 in the form of Zakaat donations and distributed £1,500 of this amount to charitable organisations.
Reserves policy
The trustees have adopted a reserves policy of retaining unrestricted reserves equivalent to one year expenditure expected to incur on running the mosque whilst ensuring funds are earmarked towards the cost of constructing new Madrassa building.
The construction of new madressa building is expected to cost a significant amount of money and the charity has already spent £280,000 towards the construction during the year.
At present Usmani Mosque prayer hall and the community hall are being used to teach around 350 children. The new building will accommodate all the children and free up the space currently being utilised in the prayer and community halls.
FUTURE PLANS
The trustees acquired a building for approximately £276,000 in 2018 to meet increased demand for madressa. The building has since been demolished and construction work commenced for new madressa building. The trustees anticipate total cost of construction to be in the region of £800,000 to £850,000.
The board is looking at ways of increasing donation income as well as borrowing more interest free loans from individuals to be able to facilitate the work needed to the new madrassa building.
Future plans are to increase the number of new applicants for the madrassa after the project is fully complete and to pay off the interest free loans given by the muslim community.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Usmani Mosque is a registered charity (charity no. 1089411) and is governed by its Trust Deed dated 27th March 2000 as amended on 18th August 2001 and 15th October 2016.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1089411
Principal address
c/o 14 Gwendolen Road Leicester LE5 5FE
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USMANI MOSQUE
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020
Trustees
Mr M M Patel Holding Trustee (deceased 20/12/2020) Mr M Saleh Holding Trustee Mr M Ali Holding Trustee Mr N H Patel Holding Trustee Mr S H Patel Trustee and President Mr S I Ali Trustee and Vice President Mr A R Wahab Trustee and General Secretary Mr M Fozdar Trustee and Assistant Secretary Mr A Ismail Holding Trustee and Treasurer Mr I U Modi Trustee and Assistant Treasurer Mr I G Patel Trustee Mr A W A Patel Trustee Mr G H Patel Trustee
Independent Examiner Nazir Malida FCCA Watergates Ltd 109 Coleman Road Leicester LE5 4LE Approved by order of the board of trustees on 12th October 2021 and signed on its behalf by:
Mr A Ismail - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF USMANI MOSQUE
Independent examiner's report to the trustees of Usmani Mosque
I report to the charity trustees on my examination of the accounts of Usmani Mosque (the Trust) for the year ended 31st December 2020.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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.
Nazir Malida FCCA Watergates Ltd 109 Coleman Road Leicester LE5 4LE
12th October 2021
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USMANI MOSQUE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Hall Hire Madressa fees Other income Total EXPENDITURE ON Charitable activities Hall Hire Madressa fees Mosque and madressa running costs Zakaat Total NET INCOME/(EXPENDITURE) Transfers between funds 9 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 126,422 35,359 - 41,490 203,271 124,828 - - - 124,828 78,443 (373,966) (295,523) 2,266,798 1,971,275 |
Restricted funds £ 764 - - - 764 1,500 - - - 1,500 (736) 373,966 373,230 - 373,230 |
31/12/20 Total funds £ 127,186 35,359 - 41,490 204,035 126,328 - - - 126,328 77,707 - 77,707 2,266,798 2,344,505 |
31/12/19 Total funds £ 273,685 9,550 89,346 - 372,581 - 7,716 116,426 2,500 126,642 245,939 - 245,939 2,020,859 2,266,798 |
|---|---|---|---|---|
The notes on page 0 form part of these financial statements
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USMANI MOSQUE
STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2020
| Notes FIXED ASSETS Tangible assets 5 CURRENT ASSETS Debtors 6 Cash at bank and in hand CREDITORS Amounts falling due within one year 7 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 8 NET ASSETS FUNDS 9 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 1,738,184 28,857 225,968 254,825 (16,734) 238,091 1,976,275 (5,000) 1,971,275 |
Restricted funds £ 456,061 - 1,619 1,619 - 1,619 457,680 (84,450) 373,230 |
31/12/20 Total funds £ 2,194,245 28,857 227,587 256,444 (16,734) 239,710 2,433,955 (89,450) 2,344,505 1,971,275 373,230 2,344,505 |
31/12/19 Total funds £ 1,916,957 - 453,970 453,970 (10,679) 443,291 2,360,248 (93,450) 2,266,798 2,176,832 89,966 2,266,798 |
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The financial statements were approved by the Board of Trustees and authorised for issue on 12th October 2021 and were signed on its behalf by:
Mr A Ismail - Trustee
The notes on page 0 form part of these financial statements
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST 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.
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 the cost less estimated residual value of each asset over its estimated useful life.
Fixtures and fittings - 15% on cost
MARKET VALUES OF LAND AND BUILDINGS
The charity's freehold land and buildings are used solely for charitable purposes. In the opinion of the trustees the market value of the land and buildings of the charity exceeds the amount shown on the balance sheet, but they do not consider the expense of a professional valuation to be justified.
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.
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
2. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.
TRUSTEES' EXPENSES
There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
3. STAFF COSTS
The average monthly number of employees during the year was as follows:
4.
| Number of paid teaching staff Number of voluntary teaching staff No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 214,093 Charitable activities Hall Hire 9,550 Madressa fees 89,346 Total 312,989 EXPENDITURE ON Charitable activities Madressa fees 7,716 Mosque and madressa running costs 116,426 Zakaat - Total 124,142 NET INCOME 188,847 |
31/12/20 15 2 17 Restricted funds £ 59,592 - - 59,592 - - 2,500 2,500 57,092 |
31/12/19 17 2 19 Total funds £ 273,685 9,550 89,346 372,581 7,716 116,426 2,500 126,642 245,939 |
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
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4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted Restricted Total
funds funds funds
£ £ £
RECONCILIATION OF FUNDS
Total funds brought forward 1,987,985 32,874 2,020,859
TOTAL FUNDS CARRIED FORWARD 2,176,832 89,966 2,266,798
5. TANGIBLE FIXED ASSETS
Fixtures
Freehold and
property fittings Totals
£ £ £
COST
At 1st January 2020 1,912,155 64,916 1,977,071
Additions 280,000 - 280,000
At 31st December 2020 2,192,155 64,916 2,257,071
DEPRECIATION
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At 1st January 2020 60,114 60,114
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Charge for year 2,712 2,712
At 31st December 2020 - 62,826 62,826
NET BOOK VALUE
At 31st December 2020 2,192,155 2,090 2,194,245
At 31st December 2019 1,912,155 4,802 1,916,957
6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/20 31/12/19
£ £
Other debtors 28,857 -
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
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7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/20 31/12/19
£ £
Trade creditors 58 807
Taxation and social security 2,342 487
Other creditors 14,334 9,385
16,734 10,679
8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/12/20 31/12/19
£ £
Other creditors 89,450 93,450
9. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.1.20 in funds funds 31.12.20
£ £ £ £
Unrestricted funds
General fund 2,266,798 78,443 (373,966) 1,971,275
Restricted funds
- -
Copdale Road 371,611 371,611
Zakaat - (736) 2,355 1,619
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(736) 373,966 373,230
TOTAL FUNDS 2,266,798 77,707 - 2,344,505
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 203,271 (124,828) 78,443
Restricted funds
Zakaat 764 (1,500) (736)
TOTAL FUNDS 204,035 (126,328) 77,707
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
9. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Copdale Road Zakaat TOTAL FUNDS |
At 1.1.19 £ 1,987,985 32,874 - 32,874 2,020,859 |
Net movement in funds £ 188,847 54,737 2,355 57,092 245,939 |
At 31.12.19 £ 2,176,832 87,611 2,355 89,966 2,266,798 |
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Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Copdale Road Zakaat TOTAL FUNDS |
Incoming resources £ 312,989 54,737 4,855 59,592 372,581 |
Resources Movement expended in funds £ £ (124,142) 188,847 - 54,737 (2,500) 2,355 (2,500) 57,092 (126,642) 245,939 |
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A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Restricted funds Copdale Road Zakaat TOTAL FUNDS |
At 1.1.19 £ 1,987,985 32,874 - 32,874 2,020,859 |
Net movement in funds £ 267,290 54,737 1,619 56,356 323,646 |
Transfers between funds £ (373,966) 371,611 2,355 373,966 - |
At 31.12.20 £ 1,881,309 459,222 3,974 463,196 2,344,505 |
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
9. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Copdale Road Zakaat TOTAL FUNDS |
Incoming resources £ 516,260 54,737 5,619 60,356 576,616 |
Resources Movement expended in funds £ £ (248,970) 267,290 - 54,737 (4,000) 1,619 (4,000) 56,356 (252,970) 323,646 |
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10. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st December 2020.
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USMANI MOSQUE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
| INCOME AND ENDOWMENTS Donations and legacies Donations Charitable activities Hall hire Madressa fees |
31/12/20 31/12/19 £ £ 127,186 273,685 160 9,550 35,199 89,346 |
|---|---|
| Other income Repayment interest HMRC JRS Grant |
35,359 98,896 59 - 41,431 - |
| 41,490 - |
|
| Total incoming resources EXPENDITURE Charitable activities Wages Pensions Rates and water Insurance Light and heat Postage and stationery Books and learning resources Repairs and maintenance Legal fees Cleaning Charitable expenditure Bank charges Charitable expenditure - Zakat Depreciation of tangible fixed assets |
204,035 372,581 100,464 89,593 294 181 1,441 2,432 2,141 2,251 10,825 12,616 2,345 1,609 - 7,716 2,612 3,378 1,100 100 175 843 1,500 - 121 176 - 2,500 2,711 3,247 |
| Support costs Management Postage and stationery Advertising |
125,729 126,642 402 - 197 - |
| 599 - |
This page does not form part of the statutory financial statements
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USMANI MOSQUE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
| 31/12/20 31/12/19 £ £ |
|
|---|---|
| Total resources expended | 126,328 126,642 |
| Net income | 77,707 245,939 |
This page does not form part of the statutory financial statements
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