**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**
**----- Start of picture text -----**
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
**----- End of picture text -----**
**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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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|
|---|---|---|---|---|
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**
**----- Start of picture text -----**
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
-
At 1st January 2020 60,114 60,114
-
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 -
**----- End of picture text -----**
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## **USMANI MOSQUE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020**
**----- Start of picture text -----**
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
-
(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
**----- End of picture text -----**
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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|
|---|---|---|---|
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|
|---|---|---|
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|
|---|---|---|
## **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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