REGISTERED CHARITY NUMBER: 1089411
TRUSTEES' REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
FOR
USMANI MOSQUE
Watergates Ltd 109 Coleman Road Leicester LE5 4LE
USMANI MOSQUE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023
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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
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USMANI MOSQUE
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023
The trustees present their report with the financial statements of the charity for the year ended 31st December 2023. 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 2023
FINANCIAL REVIEW
Financial position
During the year, total incoming resources decreased to £206,270 (compared to £229,110 in 2022), while resources expended rose to £167,229 (up from £156,872 in 2022). This resulted in a surplus of £39,041 for the year (down from £72,238 in 2022).
Voluntary income fell to £94,950 (from £128,512 in 2022), while madressa fees increased to £94,385 (up from £86,218 in 2022). The decline in voluntary income is attributed to the identification of an overstatement in donation income and capital expenditure by £54,737 for the year ended 31 December 2019. After correcting for this, the revised voluntary income amounts to £149,687, reflecting an actual increase compared to the previous year.
Additionally, the mosque collected £2,530 in Zakaat donations and distributed £3,900 to charitable organisations, which included Zakaat funds carried over from previous years.
The rise in resources expended was primarily due to increased costs associated with lighting and heating, driven by general price increases, along with higher water rates and staff training expenses.
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 madressa building.
The projected cost for the new madressa building is substantial, with the charity having already invested approximately £1.45 million, including acquisition costs.
Currently, the Usmani Mosque prayer hall and community hall serve as classrooms for around 350 children. The new building will provide adequate space for all students, thereby freeing up the prayer and community halls for their intended purposes.
FUTURE PLANS
In 2014, the trustees acquired a building for approximately £276,000 to address the growing demand for madressa services. That building has since been demolished, and construction of the new madressa facility has commenced. The trustees estimate the total construction cost to be between £1.5 million and £1.6 million.
The board is actively exploring strategies to enhance donation income and secure additional interest-free loans from individuals to support the development of the new madressa building.
Looking ahead, the plans include increasing the number of new applicants for the madressa once the project is completed, as well as repaying the interest-free loans provided 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
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USMANI MOSQUE
TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023
Principal address c/o 14 Gwendolen Road Leicester LE5 5FE
Trustees
Mr M Ali Holding Trustee Mr S H Patel Trustee and President Mr S I Ali Trustee and Vice President Mr M Fozdar Trustee and Assistant Secretary (resigned 30/09/2023) 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 28th October 2024 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 2023.
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
28th October 2024
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USMANI MOSQUE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Hall Hire Madressa fees Mosque and madressa running costs Other income Total EXPENDITURE ON Raising funds Raising donations and legacies Charitable activities Mosque and madressa running costs Zakaat Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31/12/23 Unrestricted Restricted Total funds funds funds £ £ £ 92,420 2,530 94,950 16,765 - 16,765 94,385 - 94,385 170 - 170 - - - 203,740 2,530 206,270 212 - 212 212 - 212 163,117 - 163,117 - 3,900 3,900 163,329 3,900 167,229 40,411 (1,370) 39,041 2,660,691 1,422 2,662,113 2,701,102 52 2,701,154 |
31/12/22 Total funds £ 128,512 14,320 86,218 - 60 229,110 586 586 154,786 1,500 156,872 72,238 2,589,875 2,662,113 |
|---|---|---|
The notes on page 0 form part of these financial statements
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USMANI MOSQUE
STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2023
| 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 £ 2,663,244 22,566 48,577 71,143 (19,285) 51,858 2,715,102 (14,000) 2,701,102 |
Restricted funds £ - - 52 52 - 52 52 - 52 |
31/12/23 Total funds £ 2,663,244 22,566 48,629 71,195 (19,285) 51,910 2,715,154 (14,000) 2,701,154 2,701,102 52 2,701,154 |
31/12/22 Total funds £ 2,399,604 13,903 265,600 279,503 (6,994) 272,509 2,672,113 (10,000) 2,662,113 2,660,691 1,422 2,662,113 |
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The financial statements were approved by the Board of Trustees and authorised for issue on 28th October 2024 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 2023
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.
In stating freehold land and buildings at cost and not subjecting to periodic charges for depreciation results in a departure from usual accounting principles which requires all fixed assets which have a limited useful economic life to be depreciated. However, in this case the trustees believes that writing down such assets will not show a true and fair view as the residual values of such freehold land and buildings are expected to remain high. The subsequent non-charge of depreciation (based on a 1/3 land split and 2% charge) amounts to £35,510 (2022 - £31,991).
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.
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023
1. ACCOUNTING POLICIES - continued
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.
2. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2023 nor for the year ended 31st December 2022.
TRUSTEES' EXPENSES
There were no trustees' expenses paid for the year ended 31st December 2023 nor for the year ended 31st December 2022.
3. STAFF COSTS
The average monthly number of employees during the year was as follows:
| Number of paid teaching staff Number of voluntary teaching staff |
31/12/23 31/12/22 16 16 2 2 |
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| 18 18 |
No employees received emoluments in excess of £60,000.
4.
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds £ INCOME AND ENDOWMENTS FROM Donations and legacies 126,300 Charitable activities Hall Hire 14,320 Madressa fees 86,218 Other income 60 Total 226,898 EXPENDITURE ON Raising funds Raising donations and legacies 586 586 Charitable activities Mosque and madressa running costs 154,786 |
Restricted funds £ 2,212 - - - 2,212 - - - |
Total funds £ 128,512 14,320 86,218 60 229,110 586 586 154,786 |
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023
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4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted Restricted Total
funds funds funds
£ £ £
Zakaat - 1,500 1,500
Total 155,372 1,500 156,872
NET INCOME 71,526 712 72,238
Transfers between funds 100,000 (100,000) -
Net movement in funds 171,526 (99,288) 72,238
RECONCILIATION OF FUNDS
Total funds brought forward 2,489,165 100,710 2,589,875
TOTAL FUNDS CARRIED FORWARD 2,660,691 1,422 2,662,113
5. TANGIBLE FIXED ASSETS
Fixtures
Freehold and
property fittings Totals
£ £ £
COST
At 1st January 2023 2,399,309 64,916 2,464,225
Additions 318,672 - 318,672
Reclassification (54,737) - (54,737)
At 31st December 2023 2,663,244 64,916 2,728,160
DEPRECIATION
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At 1st January 2023 64,621 64,621
Charge for year - 295 295
At 31st December 2023 - 64,916 64,916
NET BOOK VALUE
At 31st December 2023 2,663,244 - 2,663,244
At 31st December 2022 2,399,309 295 2,399,604
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023
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6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£ £
Trade debtors 6,188 -
Other debtors 16,378 13,903
22,566 13,903
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£ £
Trade creditors 5,302 5,035
Taxation and social security 494 -
Other creditors 13,489 1,959
19,285 6,994
8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/12/23 31/12/22
£ £
Other creditors 14,000 10,000
9. MOVEMENT IN FUNDS
Net
movement At
At 1.1.23 in funds 31.12.23
£ £ £
Unrestricted funds
General fund 2,660,691 40,411 2,701,102
Restricted funds
Zakaat 1,422 (1,370) 52
TOTAL FUNDS 2,662,113 39,041 2,701,154
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023
9. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Zakaat TOTAL FUNDS |
Incoming resources £ 203,740 2,530 206,270 |
Resources Movement expended in funds £ £ (163,329) 40,411 (3,900) (1,370) (167,229) 39,041 |
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Comparatives for movement in funds
| At 1.1.22 £ Unrestricted funds General fund 2,489,165 Restricted funds Copdale Road 100,000 Zakaat 710 100,710 TOTAL FUNDS 2,589,875 Comparative net movement in funds, included in the above are Unrestricted funds General fund Restricted funds Zakaat TOTAL FUNDS |
Net movement in funds £ 71,526 - 712 712 72,238 as follows: Incoming resources £ 226,898 2,212 229,110 |
Transfers between funds £ 100,000 (100,000) - (100,000) - Resources expended £ (155,372) (1,500) (156,872) |
At 31.12.22 £ 2,660,691 - 1,422 1,422 2,662,113 Movement in funds £ 71,526 712 72,238 |
|
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USMANI MOSQUE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2023
9. MOVEMENT IN FUNDS - continued
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 1.1.22 £ 2,489,165 100,000 710 100,710 2,589,875 |
Net movement in funds £ 111,937 - (658) (658) 111,279 |
Transfers between funds £ 100,000 (100,000) - (100,000) - |
At 31.12.23 £ 2,701,102 - 52 52 2,701,154 |
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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 Zakaat TOTAL FUNDS |
Incoming resources £ 430,638 4,742 435,380 |
Resources Movement expended in funds £ £ (318,701) 111,937 (5,400) (658) (324,101) 111,279 |
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10. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st December 2023.
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