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2021-07-31-accounts

Charity registration number: 1094319

Chorley Muslim Trust

Report and Accounts

31 July 2021

Chorley Muslim Trust Contents

Page
Charity Information 1
Trustees report 2
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the accounts 8

Chorley Muslim Trust Charity Information for the period ended 31 July 2021

Address

C/o 1 Preston Road Whittle le Woods Chorley Lancashire PR6 7PE

Charity registration number: 1094319

Trustees

Mehboob Umerji Patel (Chair) Mushtaq Munshi Ibrahim Saleh Iqbal Essa Mohammed Sajid Yaqub Mala

Appointed independent examiner

M A Ibrahim (FCCA)

Accountants

M.A.I (Accountants) Limited 7 St Andrews Street Blackburn Lancashire BB1 8AE

Bankers

HSBC 26 Market Street Chorley Lancashire PR7 2RX

Solicitors

Kevills Solicitors 5 Park Rd Chorley Lancashire PR7 1QS

1

Chorley Muslim Trust Trustees’ annual report for the period ended 31 July 2021

Charity registration number: 1094319

The Annual Report is fully SORP compliant and sets out how the trustees have met their obligations.

The Financial Statement is fully SORP compliant and includes the incoming resources and resources expended.

Objectives and activities

The objects of the charity are set out in the constitution are summarised as follows:

The trust is established to advance the religion of Islam in accordance with the doctrines and beliefs of the Sunni Hanafi sect of Muslims ("Sunnat wal Jamaat") accepting the Tablighi Jamaat as a Dawah Organisation and in particular:-

a) To preserve Islamic culture and tradition and to establish and to promote, encourage and advance the religious and education activities of the societies Muslim inhabitants in Chorley by provision of Mosque and Madressa premises for the teachings and propagation of the holy Quran and Hadith and Sunnat and the principles and tenets of Islam to all Muslims.

b) To make provision for Salat (Namaz) worship, fasting, other prayers and religious ceremonies to include Nikah, funeral, burials, lectures, meetings & seminars.

c) To organise and undertake such other projects consistent with the spirit of Islam as the trustees decide from time to time.

In setting our objectives and planning our activities our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

Achievements and performance

The Charity carries out a wide range of activities in pursuance of its charitable aims:

The main achievements have been to provide a building for prayer, worship and teaching.

A place for 5 times payer.

A place for children to learn Quran and Hadith.

A place to propagate Islam to the wider public.

A place for Nikah wedding ceremonies.

Over the years the wider public have benefitted because the teachings have helped the youth to behave correctly over the years.

We have been able to propagate Islam to the non Muslims, so they also benefit from the teachings of Islam.

During the current year a property owned by Chorley Muslim Society was transferred by the trustees to Chorley Muslim Trust at current market value. The property is now shown at a value of £120,000 under investment properties.

2

Chorley Muslim Trust Trustees’ annual report for the period ended 31 July 2021

COVID-19

The COVID-19 pandemic has posed significant unforeseen challenges.

Much of the Aims and activities of the mosque were greatly restricted due to the Covid lockdown. However, as a board of trustees we still endeavoured to achieve as much as we could of the aims and objectives of the charity.

Government health guidelines were implemented, risk assessments carried, covid officers appointed, volunteers nominated and trained to understand and manage the Covid rules and signs displayed to make our organisation as safe as possible.

Many members of our community lost their lives during the pandemic, May The Almighty grant them the highest place in Jannah. Our heartfelt condolences go out to all those who have lost loved ones during this difficult time.

The past year has been one of significant challenges, but we have emerged a better and a stronger unit.

Structure, governance and management

Chorley Muslim Trust is registered as a Charity with The Charity Commission under charity no: 1094319.

The Charity is regulated by declaration of trust executed on 7th August 2002.

Appointment of charity trustees

All trustees gather and make a joint decision.

Reference and administrative details

See preceding page under 'Charity Information'.

Names of the charity trustees who manage the charity

All trustees are named on the preceding page under 'Charity Information'.

Financial review and reserves policy

Funds available are sufficient to permit the charity to continue in operation in the medium to long term, together with the continued support from the donors.

There are no uncertainties about the charity continuing as a going concern.

The Trustees actively review all major risks which the Charity faces and drawn up a risk assessment which is reviewed at every meeting. The Trustees are satisfied that all systems are in place and arrangements have been made to manage any risks identified.

The Trustees would like to thank all those who assisted us with their moral and financial support and trust they continue to do so.

3

Chorley Muslim Trust Trustees’ annual report for the period ended 31 July 2021

Statement of Trustee’s responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period in preparing these financial statements, the trustees are required to:-

h Select suitable accounting policies to be applied consistently

h Observe the methods and principles in the Charities SORP

h Make judgements and estimates that are reasonable and prudent

h State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements and,

h Prepare the financial statements on the going concern bases unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Approved by the Trustees and signed on its behalf by:

Mr Mohamed Sajid Date: 22/09/2021 Trustee

4

Chorley Muslim Trust

Independent Examiner's Report to the Trustees of Chorley Muslim Trust

I report to the trustees on my examination of the accounts of Chorley Muslim Trust (the Trust) for the period ended 31 July 2021.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 ("the Act").

The charity's trustees consider that an audit is not required for this year under section 144 of the Act and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. 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 the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and 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 out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

l the accounting records were not kept in accordance with section 130 of the Charities Act; or

l the accounts did 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.

The appointed independent examiner of the trust:

M A Ibrahim (FCCA) for and on behalf of Date: 22/09/2021 M.A.I (Accountants) Limited 7 St Andrews Street Blackburn Lancashire BB1 8AE

5

Chorley Muslim Trust Statement of financial activities for the period ended 31 July 2021

Notes
Restricted
Unrestricted
income Endowment
Total
funds
funds
funds
2021
Income
3
£
£
£
£
Income and endowments from:
Donations and legacies
162,308
810
-
163,118
Other
-
1,973
-
1,973
Total
162,308
2,783
-
165,091
Expenditure
4
Expenditure on:
Charitable activities
23,407
1,973
-
25,379
Net income/(expenditure) for the year
138,902
810
-
139,712
Reconciliation of funds
Total funds brought forward
114,996
-
481,327
596,323
Net incoming resources for the year
138,902
810
-
139,712
Transfer between Funds
(30,550)
-
30,550
-
Total funds carried forward
223,348
810
511,877
736,035
Total
2020
£
39,624
2,569
42,193
26,414
15,778
580,545
15,778
-
596,323

6

Chorley Muslim Trust Balance Sheet At 31 July 2021

Notes
Restricted
Unrestricted
income Endowment
Total
funds
funds
funds
2021
£
£
£
£
Fixed assets
Tangible assets
5
25,101
-
511,877
536,978
Investments
6
120,000
-
120,000
145,101
-
511,877
656,978
Current assets
Cash at bank and in hand
79,745
810
-
80,555
79,745
810
-
80,555
Creditors:amounts falling due within one year
Trade creditors and accruals
7
1,498
-
-
1,498
Net current assets
78,246
810
-
79,056
Net assets
103,348
810
511,877
616,035
Funds of the Charity
8
Unrestricted funds
103,348
-
-
103,348
Restricted income funds
-
810
-
810
Endowment Waqaf funds
-
-
511,877
511,877
Total funds
103,348
810
511,877
616,035
Total
2020
£
533,128
-
533,128
66,768
66,768
1,663
65,104
598,232
114,996
-
481,327
596,323

Approved by the Board of Trustees and signed on its behalf by

Mr Mushtaq Munshi Date: 22/09/2021 Trustee

7

Chorley Muslim Trust Notes to the Accounts for the period ended 31 July 2021

Basis of preparation

1 Basis of accounting

The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102 and charities SORP (FRS 102) effective 1 January 2019, published by the Charity Commission in England & Wales.

The charity is a public benefit entity.

2 Accounting Policies

Income

Income from charitable activities and voluntary donations are included in full in the Statement of Financial Activities when received. The value of services provided by volunteers has not been included.

Expenditure

Expenditure is included in the accounts on an accruals basis.

Depreciation

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Fittings and equipment

5% Straight line

The trustees are of the opinion that the depreciation charge for the buildings is not required as the buildings are maintained and the expenditure reflected in the income and expenditure account.

Unrestricted funds

Unrestricted funds are donations and other incoming resources receivable or generated for the charity without further specified purpose and are available as general funds.

Restricted funds

Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the charity. Restricted funds may be restricted income funds, which are spent at the discretion of the trustees in furtherance of some particular aspect(s) of the objects of the charity, or they may be endowment funds, where the assets are required to be invested, or retained for actual use, rather than spent.

Endowment Waqaf funds

Endowment Waqaf funds as applied to mosque property is a religious endowment. The properties under Waqaf endowment are dedicated to Allah SWT for public benefit on a perpetual basis. Restricted Fixed Waqaf funds cannot be gifted, granted or disposed.

8

Chorley Muslim Trust Notes to the Accounts for the period ended 31 July 2021

3
Analysis of income
Donations and legacies
Donations
Rental income
Total
Other
HMRC JRS grant
Total
Total income
4
Analysis of expenditure
Expenditure on charitable activities
Wages and paye
Employee pension
Heat and light
Water charges
Bank charges
Insurance
Depreciation
Accountancy fees
Payroll fees
Independent examiner's fee
Other expenses
Total
Total expenditure
Restricted
Unrestricted
income Endowment
2021
funds
funds
funds
Total funds
£
£
£
£
155,024
810
-
155,834
7,284
-
-
7,284
162,308
810
-
163,118
-
1,973
1,973
-
1,973
-
1,973
162,308
2,783
-
165,091
Restricted
Unrestricted
income Endowment
2021
funds
funds
funds
Total funds
£
£
£
£
11,523
1,973
-
13,495
331
-
-
331
4,001
-
-
4,001
639
-
-
639
12
-
-
12
2,133
-
-
2,133
3,998
-
-
3,998
250
-
-
250
295
-
-
295
150
-
-
150
75
-
-
75
23,407
1,973
-
25,379
23,407
1,973
-
25,379
2020
Prior year
£
34,484
5,140
39,624
2,569
2,569
42,193
2020
Prior year
£
12,884
330
5,374
1,586
12
2,079
3,510
225
265
150
-
26,414
26,414

9

Chorley Muslim Trust Notes to the Accounts for the period ended 31 July 2021

5
Land, buildings, equipment and fittings
Buildings
£
Cost
At 1 August 2020
511,877
Additions / Improvements
-
Prior year adjustment
-
At 31 July 2021
511,877
Depreciation
At 1 August 2020
-
Charge for the year
-
Prior year adjustment
-
At 31 July 2021
-
Net book value
At 31 July 2021
511,877
At 31 July 2020
511,877
6
Investments
Investment
Property
£
Cost
Additions
120,000
At 31 July 2021
120,000
Net book value
At 31 July 2021
120,000
At 31 July 2020
-
7
Creditors
2021
Analysis of creditors:
£
Trade creditors
699
Accruals
799
1,498
5
Land, buildings, equipment and fittings
Buildings
£
Cost
At 1 August 2020
511,877
Additions / Improvements
-
Prior year adjustment
-
At 31 July 2021
511,877
Depreciation
At 1 August 2020
-
Charge for the year
-
Prior year adjustment
-
At 31 July 2021
-
Net book value
At 31 July 2021
511,877
At 31 July 2020
511,877
6
Investments
Investment
Property
£
Cost
Additions
120,000
At 31 July 2021
120,000
Net book value
At 31 July 2021
120,000
At 31 July 2020
-
7
Creditors
2021
Analysis of creditors:
£
Trade creditors
699
Accruals
799
1,498
Fittings and
Total
equipment
£
£
68,595
580,472
9,757
9,757
1,600
1,600
511,877 79,952
591,829
-
-
-
47,343
47,343
3,998
3,998
3,510
3,510
- 54,851
54,851
511,877 25,101
536,978
511,877 21,252
533,128
Investment
Property
£
120,000
Total
£
120,000
120,000
120,000
-
2020
£
699
964
1,663
120,000
120,000
-
2021
£
699
799
1,498

8 Analysis of fund assets and liabilities

Tangible fixed assets
Current assets
Current liabilities
Restricted
Unrestricted
income
Endowment
Total
funds
funds
funds
2021
£
£
£
£
25,101
-
511,877
536,978
79,745
810
-
80,555
(1,498)
-
-
(1,498)
103,348
810
511,877
616,035

10

Chorley Muslim Trust Notes to the Accounts for the period ended 31 July 2021

9
Details of certain items of expenditure
2021
Fees for examination of the accounts
£
Independent examiner’s fees
150
2020
£
150

10 Transactions with trustees and related parties.

There were no benefits, expenses or remuneration paid to the Trustees or persons connected to them.

11 Employees
Average number of employees
2021
Number
2
2020
Number
2

No employee received emoluments of more than £60,000.

11