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2020-12-31-accounts

CHARITY REGISTRATION NUMBER: 1096111

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS

31 DECEMBER 2020

FAIRMAN DAVIS

Chartered Accountants & Statutory Auditors Suite 16, Exhibition House Addison Bridge Place London W14 8XP

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Trustee's' Annual Report
Independent Auditor's Report to the Members
Consolidated Statement of Financial Activities
Consolidated Balance Sheet
Balance Sheet (Charity)
Consolidated Statement of Cash Flows
Notes to the Financial Statements		 Page
1
6
8
9
10
11
12

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES' ANNUAL REPORT YEAR ENDED 31 DECEMBER 2020

The trustees present their report and the financial statements of the Charity for the year ended 31 December 2020.

Reference and Administrative Details

Registered Charity No: 1096111 (England & Wales)
Principal Office The Council of European Jamaats
Unit 101, 1st floor
Metroline House, 118-122 College Road
HA1 1BQ
Trustees: Dr Akber Mohamedali
Mr Mahmood Hooda
Mr Murtaza Bharwani
Mr Mohamed Hassan Visram Appointed 23/04/2020
Mr Arif Hiridjee
Mr Tawfiq Jivraj
Mr Murtaza Gulamhusein
Mrs Waheeda Rahim
Dr Husein Jiwa
Syed Mohammed Naqvi
Miss Esmat Jeraj
Mr Makbul Jaffer
Mr Salim Hamir
Dr Rizwan Alidina
Mrs Ismat Ramji
Mr Imran Najafi
Mr Rasool Bhamani
Mr Fayyaz Haji
Mr Salim Govani
Mr Mukhtarali Hirani
Mr Hussein-Ali Rahemtulla
Mr Mohamedtaki Mohamedali Jaffer
Mr Kamran Shah
Mr Shaneabbas Fidahussein Rajani
Mr Komeil Rajani
Mr Shakir Rahemtulla
Mrs Mariam Hassam
Mr Rizwan Rahemtulla
Mr Irad Michael Hassanaly Appointed 02/04/2020
Mr Mohammed Mohsin Asaria Appointed 30/06/2020
Dr Hassanali Dewji Appointed 30/06/2020
Mr Hamid Pirbhai Appointed 04/10/2020
Mr Sibtain Allibhai Appointed 04/10/2020
Mr Moshin Kassam Appointed 04/10/2020
Mr Soudjad Cassam Chenai Appointed 31/12/2020
Mr Azad Hedaraly Resigned 31/12/2020
Mr Mohammed Mohsin Asaria Resigned 26/02/2020
Mr Sibtain Raffiq-Fazal Resigned 30/03/2020
Mr Azim Jetha Resigned 02/04/2020
Mr Abbas Datoo Resigned 30/06/2020
Mr Sarfraz Jeraj Resigned 30/06/2020
Dr Munir Datoo Resigned 04/10/2020
Mr Altaf Daya Resigned 04/10/2020
Mr Muzaffer Sultanali Rashid Resigned 04/10/2020

Auditors:

Fairman Davis Chartered Accountants & Statutory Auditor Suite 16, Exhibition House Addison Bridge Place London W14 8XP

Page 1 of 23

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31 DECEMBER 2020

Bankers:

Habib Bank AG Zurich National Westminster Bank PLC Habib House Cathedral Square 42 Moorgate, London Peterborough EC2R 6JJ PE1 1XH

Structure, Governance and Management

The Charity is governed by its constitution and is constituted as a charitable trust. The constitution was adopted on 15 December 2002 and as amended on 01 December 2013.

The trustees of The Council of European Jamaats are the members of the council of management. They are for the purposes of the constitution, officers of the charity.

The trustees are responsible for the overall management and control of the charity and meet regularly to manage its affairs. Staff resources are divided into religious, finance and administration.

Objectives and Activities

The object for which the Charity has been established is to promote and advance the Islamic Religion in accordance with the principles of the Shia Ithna-Asheri faith. The Charity through its Executive Committee shall have the power:

(a) To encourage the practice of the Islamic Religion as taught by Shia Ithna-Asheri Sharia throughout Europe

(b) To eradicate poverty

(c) To advance education amongst the community.

(d) To relieve those in need by reason of youth, age, ill health, and disability, financial hardship or other disadvantages

(e) To do all such others things as shall further the above-mentioned object.

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, in planning future activities, and setting the grant making policy for the year.

In addition to the above objectives, during 2020 the Charity intends to hold courses, covering a variety of academic subjects at various levels to assist students in their quest for educational excellence.

The Charity also aims to foster closer relationships amongst the elderly by facilitating various meetings and seminars as well as holding social events in the year.

Page 2 of 23

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance

The trustees are pleased that the achievements and performance of the Trust, as set out below, demonstrate concrete progress during the year.

The Charity has organised several events, activities and programmes to fulfil its objectives using all mediums at its disposal to promote the services provided.

Amongst the activities held during the year were the following:

There has been continued growth of the Charity over the past several years. We have now doubled our volunteer base, so the number of volunteers is increasing exponentially. Developments and improvements across all main areas during 2019 have enabled the Charity to enhance its services to its members.

Financial Review

The results of the Group’s activities are shown on pages 8 to 23 of the financial statements.

The Incoming Resources of the Group increased by 36% to £3,162,382 and the Outgoing Group’s Resources increased by 33% to £3,104,897.

At the balance sheet date, the Charity has voluntary designated funds amounting to £350,225 (2019 - £293,294). These funds comprise gift aid donations.

Designated funds are unrestricted funds consisting of amounts allocated by the trustees for Charity purposes. Investment income is allocated to the unrestricted funds.

General funds amounted to £805,409 (2019 - £758,096) at the balance sheet date. These are unrestricted funds which are available for use at the discretion of the trustees to further the general objects of the Charity and which have not been designated for other purposes.

Restricted funds comprise unexpended balances of donations held on trust to be applied for specific purposes.

Page 3 of 23

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Since October 2018, there have been numerous issues with respect to the investment held within CoEJ Investments Ltd. The Trustees have been working diligently with Independent Counsel to ensure the Charity is protected, as well as, trying to secure the investment longer term. The trustees have also made a full impairment provision against the assets in 2018 and subsequently the company is now liquidated.

With respect to the Charity’s other subsidiary, European Hajj Company Limited, the unprecedented and rapid spread of COVID-19 has put a temporary restriction on the performance of the company's activities. Therefore during this period the company did not carry out the activities from which it generates most of its income.

In the year, the Charity has invested the sum of £15,000 with a view of receiving regular return on their investment.

Key Management Personnel Remuneration

The Office Bearers, comprising the President, Vice President, Secretary General, Treasurer, Assistant Secretary General and Assistant Treasurer are considered to be the key management personnel of the Charity, in charge of directing and controlling the Charity and running its day to day operations. All trustees give of their time freely and no trustee remuneration was paid in the year.

Trustees are required to disclose all relevant interests and register them with the Board of Trustees, and, in accordance with the Trust’s policy, withdraw from decisions where a conflict of interest arises.

Details of trustee expenses and related party transactions are disclosed in note 18 to the accounts.

Risk Management

The trustees have assessed the major risks to which the charity may be exposed, in particular those relating to meeting payments to suppliers and the use of restricted funds. The trustees are also satisfied that systems are in place to mitigate exposure to these risks and the processes implemented are designed to minimise any impact on the Charity, should any of these risks materialise.

Reserves Policy

The trustees aim to maintain reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure approximately £90,000. The trustees consider that a level of three months will provide sufficient funds to cover any unexpected expenditure requirements.

Plans for Future Periods

With respect to the charity, 2021 will be a difficult year. The ongoing and unprecedented potential impact of COVID19 has put a temporary restriction on the current and future activities and is closely being monitored as the restrictions are eased in the coming months.

Page 4 of 23

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31 DECEMBER 2020

Fundraising Policy

Although the charity is not a member of the Institute of Fundraising it does however abide by the principles of good fundraising practices. The charity doesn’t work with or employ third party fundraisers. A complain policy is in operation and the trustees are pleased to confirm that no complain on fundraising or any other matter has come to light.

Trustees' Responsibilities Statement

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, of the Charity for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and accounting estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' annual report was approved on 08/09/2021 and signed on behalf of the board of

trustees by:

___ _____

Dr A Mohamedali Mr M Visram President Treasurer

Page 5 of 23

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of The Council of European Jamaats (the “Charity”) for the year ended 31 December 2019 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, 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 Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for 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 financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, 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.

Conclusions Relating to Going Concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other Information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements 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 financial statements 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.

Page 6 of 23

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS (continued) YEAR ENDED 31 DECEMBER 2020

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’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 trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements

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

Use of our Report

This report is made solely to the Charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's trustees 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 Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed

……………………………………….. Fairman Davis Chartered Accountants & Statutory Auditors Suite 16, Exhibition House Addison Bridge Place, London W14 8XP

Date:

Page 7 of 23

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Unrestricted|Restricted| |Notes|Funds|Funds|Total Funds|Total Funds| |2020|2020|2020|2019| |£|£|£|£| |Income and Endowments| |Donations and Legacies|4|213,710|2,945,798|3,159,508|1,749,433| |Other Income|5|-|7,170|7,170|562,865| |Total Income|213,710|2,952,968|3,166,678|2,312,298| |Expenditure| |Expenditure on Charitable Activities|6,7|(168,029)|(2,929,753)|(3,097,782)|(1,843,835)| |Other Expenditure|8|-|(7,164)|(7,164)|(477,285)| |Total Expenditure|(168,029)|(2,936,917)|(3,104,946)|(2,321,120)| |Operating Income|45,682|16,051|61,733|(8,822)| |Revaluation of Tangible Fixed Assets|-|-|-|-| |Impairment of Tangible Fixed Assets|-|-|-|-| |-|-|-|-| |Net Income|45,682|16,051|61,733|(8,822)| |Reconciliation of Funds| |Total funds brought forward|982,107|75,879|1,057,985|1,066,807| |Total funds carried forward|1,027,789|91,930|1,119,718|1,057,985|

----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 8 of 23

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
£
£
Fixed Assets
Tangible Fixed Assets
12
-
Investment Property
14
270,000
Investment
645,107
915,107
Current Assets
Debtors
15
493,787
Cash at Bank and in Hand
16
241,686
735,473
CREDITORS : amounts falling due within one year
17
(530,860)
NET CURRENT ASSETS
204,612
Total Assets less Current Liabilities
1,119,719
Net Assets
1,119,719
Funds
Restricted Funds
21
91,930
Unrestricted Funds
21
1,027,789
Total Charity Funds
1,119,719
2020		 £
£
1,515
270,000
630,208
901,723
358,490
189,713
548,203
(391,940)
156,263
1,057,985
1,057,985
75,879
982,107
1,057,985
2019

These financial statements were approved by the board of trustees and authorised for issue on 08/09/2021 and are signed on behalf of the board by:

………………………………………..

Dr A Mohamedali President

………………………………………..

Mr M Visram Treasurer

Page 9 of 23

THE COUNCIL OF EUROPEAN JAMAATS

BALANCE SHEET (CHARITY) AS AT 31 DECEMBER 2020

Notes
£
£
Fixed Assets
Tangible Assets
12
270,000
Investments
13
645,208
915,208
Current Assets
Debtors
15
463,436
Cash at Bank and in Hand
16
156,993
620,429
CREDITORS : amounts falling due within one year
17
(387,948)
NET CURRENT ASSETS
232,481
Total Assets less Liabilities
1,147,689
Net Assets
1,147,689
Funds
Restricted Funds
21
50,019
Unrestricted Funds
21
1,097,670
Total Charity Funds
1,147,689
2020		 2019
£

1,515

630,208

631,723
641,187
154,504
795,692
(342,051)

453,641

1,085,363

1,085,363

33,974

1,051,390

1,085,363

These financial statements were approved by the board of trustees and authorised for issue on 08/09/2021 and are signed on behalf of the board by:

………………………………………..

Dr A Mohamedali President

……………………………………….. Mr M Visram Treasurer

Page 10 of 23

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2020

Cash Flows from Operating Activities
Net Income for the year
Adjustments for:
Dividends, Interest and Rents from Investments
Depreciation
(Increase)/Decrease in Debtors
Increase/(Decrease) in Creditors
Net Cash from Operating Activities
Cash flows from Investing Activities
Dividends, Interest and Rents Received from Investments
Purchase of Investments
Purchase of Fixed Assets
Net Cash (used in) Investing Activities
Change is Cash and Cash Equivalents in the year
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at end of year		 2020
2019
£
£
61,733
(8,822)
-
(87,737)
1,515
3,121
(135,196)
(323,821)
138,920
281,427
66,972
(135,832)
-
87,737
(15,000)
(100,002)
(881)
(15,000)
(13,146)
51,972
(148,978)
189,714
338,692
241,686
189,714

Page 11 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

1. General Information

The Charity is a registered charity in England and Wales and is unincorporated. The financial statements are prepared in sterling, which is the functional currency of the entity.

2. Statement of Compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting Policies

Basis of Preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

Basis of Consolidation

The financial statements consolidate the results of the Charity and its subsidiary undertakings on a line-by-line basis. The entities consolidated are those as listed in note 21 and 22 of the accounts with further analysis provided in respect to these subsidiaries. A separate Statement of Financial Activities for the Charity has not been presented as the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The surplus of the parent Charity was £58,077 (2019: £10,613 deficit). Uniform SORP accounting policies have been applied.

Going Concern

The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

Fund Accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the Charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming Resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the Charity; it is probable that the economic benefits associated with the transaction will flow to the Charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is confirmed and its amount can be measured reliably

Page 12 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 DECEMBER 2020

3. Accounting Policies (continued)

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources Expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible Assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold property - over the life of the asset Fixtures and Fittings - 20% straight line Equipment - 20% straight line

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Page 13 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 DECEMBER 2020

3. Accounting Policies (continued)

Investment properties are measured initially at cost, and subsequently at fair value at the reporting date.

Financial Instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments,’ regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Page 14 of 23

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

4
Consolidated
Donations
Donations
Subscriptions
East Africa Trip
Marriage Seminar
Madinah & Bab
Other Misc. Activities
MAMT
Leadership Development Program
Mediation
Seniors Trip
CoEJ/WF Heritage Project
Wellbeing
Womens Retreat
Young Girls Camp
Youth Conference
Summer Camp
Madrasah Centre of Excellence
WF Grant
Government Grant
COVID funds
Gift Aid Income
Rent Infome - Mobile Homes
Rent Income - Properties
General Donations (note 19)
Donation from KSIMC Ltd
Charity
Donations
Donations
Subscriptions
Marriage Seminar
Madinah & Bab
MAMT
Leadership Development Program
Mediation
Seniors Trip
CoEJ/WF Heritage Project
Wellbeing
Women's Retreat
Young Girls Camp
Youth Conference
Summer Camp
Madrasah Centre of Excellence
WF Grant
Government Grant
COVID funds
Gift Aid Income
General Donations
Donation from CoEJ Investments Ltd
Rent Infome - Mobile Homes
Rent Income - Properties
Donation from KSIMC Ltd
Donation from European Hajj Company
Other Miscellaneous Activities
5.
Other Income - Consolidated
Hajj Income- European Hajj Company Ltd
Rent Receivable- CoEJ Investments Ltd
Previous Year
Hajj Income- European Hajj Company Ltd
Rent Receivable- CoEJ Investments Ltd
Donations and Legacies		 Restricted
Total Funds
Total Funds
Funds
2020
2019
£
£
£
£
54,568
54,568
59,144
22,177
22,177
12,770
-
-
0
80
80
0
-
-
24,678
-
-
0
588
588
46,167
700
700
14,850
2,320
2,320
2,841
-
-
14,755
-
-
6,565
1,080
1,080
2,618
-
-
3,138
(850)
(850)
3,950
50
50
-
-
2,000
6,606
6,606
15,212
-
-
70,000
20,789
20,789
5,749
5,749
56,931
56,931
27,196
-
-
25,000
13,483
13,483
4,732
-
2,945,798
2,945,798
1,380,385
29,440
29,440
33,430
213,710
2,945,798
3,159,508
1,749,433
Restricted
Total Funds
Total Funds
Funds
2020
2019
£
£
£
£
54,568
54,568
59,144
22,177
22,177
12,770
80
80
0
-
-
24,678
588
588
46,167
700
700
14,850
2,320
2,320
2,841
-
-
14,755
-
-
6,565
1,080
1,080
2,618
-
-
3,138
(850)
(850)
3,950
50
50
0
-
-
2,000
6,606
6,606
15,212
-
-
70,000
20,789
20,789
0
5,749
5,749
0
56,931
56,931
27,196
-
2,945,798
2,945,798
1,380,385
599
599
90,000
-
-
25,000
13,483
13,483
4,732
29,440
29,440
33,430
-
-
-
-
-
-
214,309
2,945,798
3,160,107
1,839,433
£
£
£

-
7,170
7,170
-
-
-
-
7,170
7,170
£
£
£

-
475,128
475,128
87,737
-
87,737
87,737
475,128
562,866
Unrestricted
Funds
Unrestricted
Funds
Unrestricted
Funds
Restricted
Funds
Total Funds 2020
Unrestricted
Funds
Restricted
Funds
Total Funds 2019

Page 15 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

6. Expenditure on Charitable Activities - Consolidated

Madinah & Bab
MAMT- Gents
Leadership Development Program
Women Retreat
Young Girls Camp
Marriage Seminar
Ucas
Summer Camp
Mediation
Madressa of Excellence
Media Training
Seniors Trip
Seniors Gathering
Seniors Retreat
CoEJ/WF Heritage Project
Wellbeing
Eid Gifts
Women Empowerment
Other Misc. Activities
CoEJ Academy
CoEJ Sports
Other Donations
Support Costs (Note 7)
Other Charitable Activities (Note 19)
Donation to EHC		 £
£
£
£
-
-
-
24,678
100
-
100
56,803
4,691
-
4,691
12,148
-
-
-
3,626
-
-
-
3,903
-
-
-
250
-
-
-
40
-
-
-
330
8,736
-
8,736
2,260
240
-
240
4,387
-
-
-
270
-
-
-
15,179
-
-
-
2,100
-
-
-
169
951
-
951
4,275
200
-
200
5,768
100
-
100
100
-
-
-
190
-
-
-
944
-
-
-
-
-
-
-
4,671
38,684
-
38,684
13,980
114,326
-
114,326
146,972
-
2,929,753
2,929,753
1,540,695
-
-
-
100
168,029
2,929,753
3,097,782
1,843,835
Unrestricted
Funds
Restricted
Funds
Total 2020
Total 2019

7. Expenditure on Charitable activities - Support Costs Charity

Rent
Rates
Photocopier Rental
Travelling
Meeting Expenses
Printing ,Postage and Stationary
Telephone & Internet
Cleaning
Software & website
ID Checks
Legal Fees
Professional Fees
Insurance
Refurbishment Expenses
Forex Loss
Bank & Card Charges
Marketing
Salaries & Social Security costs
Audit Fees
Recruitment Expenses
General Expenses
Subscription
Depreciation		 2020
£
9,072
993
2,006
-
569
275
1,262
130
6,944
1,530
8,659
600
1,739
-
-
1,613
15
72,675
3,000
-
358
1,370
1,515
114,326		 2019
£
19,464
978
1,517
2,956
86
842
1,740
510
3,391
3,416
10,004
-
2,260
-
-
2,867
5,336
80,928
3,000
1,757
654
2,145
3,121
146,972

Page 16 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued )

8. Other Expenditure

Hajj Costs
Cahritable Donations
Administrative Costs
Advertising
Insurance
Bank Charges
Computer Running Cost
Legal & Professional Fees
Subscriptions
Audit Fees
Profit or Loss on Foreign Exchange
Depreciation
Taxation
Previous Year		 £
£
£
-
920
920
-
-
-
-
681
681
-
-
-
-
910
910
-
12
12
-
-
-
-
-
-
-
1,028
1,028
-
1,200
1,200
-
2,412
2,412
-
-
-
-
1
1
-
7,164
7,164
Unrestricted
Funds
Restricted
Funds
Total Funds 2020
Hajj Costs
Repairs
Administrative Costs
Insurance
Bank Charges
Charitable Donations
Legal & Professional Fees
Subscriptions
Audit Fees
Depreciation
Taxation
Net Income
Net Income is stated after charging/(crediting):
Audit Fees
Depreciation of Tangible Fixed Assets		 £
-
-
28
-
-
30
-
3,838
-
-
-
3,896
Unrestricted
Funds		 £
465,750
-
1,600
1,000
910
38
1,200
-
1,283
1,200
408
473,389
2020
£
4,200
1,515
Restricted
Funds		 £
465,750
-
1,628
1,000
910
68
1,200
3,838
1,283
1,200
408
-
477,285
2019
£
4,200
3,121
Total Funds 2019

9. Net Income

Page 17 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

10. Staff Costs

The total staff costs and employee remuneration for the reporting period are analysed as follows:

Wages and salaries
Social security costs
Pension		 2020
2019
£
£
69,039
77,353
1,214
2,089
853
1,486
71,106
80,928

The average head count of employees during the year was 5 (2019:5).

During the year, due to COVID-19, 3 staff members were furloughed from 01 April 2020. Total Job Retention Scheme grant received £20,789.

These employees were subsequently made redundant on 30 September 2020

The key management personnel of the charity comprise trustees.

11. Trustee Remuneration and Expenses

No remuneration from employment with the Charity or a related entity were received by the trustees in this or the previous year.

Travelling expenses amounting to £ 0.00 (2019: £2,955.69) were incurred by the trustees

Page 18 of 23

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

12. Tangible Fixed Assets Consolidated

Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Carrying Amount
At 31 December 2020
At 31 December 2019
Charity
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Carrying Amount
At 31 December 2020
At 31 December 2019
13.
Investment
At 1 January 2020
Additions
At 31 December 2020
At 31 December 2019
14.
Investment Property
At 31 December 2020
At 31 December 2019
During the year the Charity made invest
owns 12.80% of the 2 companies.		 £
-
-
-
-
-
-
-
-
Land and
Buildings
ment in KSIMC Inv		 £
£
£

270,000
23,394
36,699
330,093

270,000
-
-
270,000
(270,000)
(270,000)

270,000
23,394
36,699
330,093

-
22,584
35,995
58,579

-
809
705
1,515

-
23,394
36,699
60,094

270,000
-
-
270,000

-
810
705
1,515
£
£
£
£
-
23,394
36,699
60,093
270,000
-
-
-
270,000
23,394
36,699
60,093
-
22,584
35,995
58,579
-
809
705
1,515
-
23,394
36,699
60,094
270,000
-
-
270,000
-
810
705
1,515
Total
£
630,208
15,000
645,208
630,208
Total
£
270,000
270,000
Fixtures and
Fittings
Equipment
Total
Fixtures and
Fittings
Equipment
Total
estments Limited and KSIMC Residential Limited. The Charity financially
Investment
Property
Investment
Property

Page 19 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

15. Debtors

Consolidated
Prepayments and Accrued Income
Other Debtors
Charity
Prepayments and Accrued Income
Other Debtors
Cash at hand
Consolidated
Current accounts and deposit accounts
Cash in hand
Charity
Current accounts and deposit accounts
Cash in hand		 2020
2019
£
£
99,558
54,810
394,229
303,680
493,787
358,490
2020
2019
£
£
(17)
5,183
463,453
636,004
463,436
641,187
2020
2019
£
£
241,616
188,872
70
841
241,686
189,713
2020
2019
£
£
156,923
153,663
70
841
156,993
154,504

16. Cash at hand

17. Creditors: amounts falling due within one year

Consolidated

Consolidated
Trade Creditors
Accruals
Other Creditors
Charity
Trade Creditors
Accruals
Other Creditors		 2020
2019
£
£
39,941
54,450
23,419
19,990
467,500
317,500
530,860
391,940
2020
2019
£
£
560
6,661
19,888
17,890
367,500
317,500
387,948
342,051

18. Subsidiary Company

Included in Debtors are amount due from: 2020 2019
£ £
• European Hajj Company Limited 39,192 32,192

Page 20 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

18. Related Party Transactions

The Trustees give freely of their time and expertise without any form of remuneration or other benefit in cash or any kind (2019: £Nil)

The following related party transactions took place during the year with the Charity's wholly owned subsidiaries (Note 22)

CoEJ Investments Ltd

• Donation received (without conditions) by the Charity from the subsidiary amounted to £598.54 (2019: £90,000)

19 Analysis of Movement in Funds - Charity

Restricted Funds

Essex
Peterborough
Hyderi
Hujjat Funds
Paris Funds
Wessex Funds
Birmingham Funds
Milton Keynes Funds
WHIPAS
Al Mahdi Institute
European Refugee Crisis 2015
Khums
Fitra
Relief Funds
Welfare
Fidya & Kaffara
Sadaqa
Zakaat
Alim Grant
Muharram Grant
Ramadhan Grant
Qurbani
Unrestricted Funds
General Funds		 Opening
Balance
£
-
-
-
-
50
-
-
3,250
-
200
12,313
2,105
1,537
1,694
4,637
677
2,362
50
4,124
-
800
175
33,973
Opening
Balance
£
1,051,390
1,051,390		 Income
£
392,778
314,019
339,348
1,600
-
15,950
1,166,954
750
100
-
-
411,333
28,223
105,186
13,120
25,717
87,418
7,474
29,500
500
2,100
3,728
2,945,798
Income
£
214,309
214,309		 Expenditure
£
(392,778)
(314,019)
(339,348)
(1,600)
-
(15,950)
(1,166,954)
(4,000)
(100)
-
-
(395,017)
(29,755)
(105,353)
(11,020)
(26,288)
(89,131)
(2,524)
(29,500)
(500)
(2,000)
(3,914)
(2,929,753)
Expenditure
£
168,029
168,029		 Closing
Balance
£
-
-
-
50
-
-
-
-
200
12,313
18,421
5
1,527
6,737
106
648
5,000
4,124
-
900
(11)
50,018
Closing
Balance
£
1,097,670
1,097,670

Page 21 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

21. Analysis of Charitable Funds

Consolidated
Unrestricted Funds
General Funds
Designated Funds
Revaluation Reserve
Restricted Funds
Restricted Funds
Charity
Unrestricted Funds
General Funds
Designated Funds
Restricted Funds
Restricted Funds		 £
£
£
£
714,799
213,710
(168,029)
760,481
230,148
-
-
230,148
37,160
-
-
37,160
982,107
213,710
(168,029)
1,027,788
£
£
£
£
75,879
2,952,968
(2,936,917)
91,930
75,879
2,952,968
(2,936,917)
91,930
£
£
£
£
758,096
214,309
(168,029)
804,376
293,294
-
-
293,294
1,051,390
214,309
(168,029)
1,097,670
£
£
£
£
33,974
2,945,798
(2,929,753)
50,019
33,974
2,945,798
(2,929,753)
50,019
At 1 Jan
2020
Income
Expenditure At 31 Dec 2020
At 1 Jan
2020
Income
Expenditure At 31 Dec 2020
At 1 Jan
2020
Income
Expenditure At 31 Dec 2020
At 1 Jan
2020
Income
Expenditure At 31 Dec 2020

Page 22 of 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 DECEMBER 2020

21. Subsidiary Company - The European Hajj Company Ltd

The Charity owns the whole of the issued ordinary share capital of The European Hajj Company Limited, a company registered in England and Wales (Reg. No. 08563597). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the SOFA. The total net profit forms part of the restricted funds of the consolidated accounts. A summary of the results of the subsidiary is shown below:

Turnover
Cost of Sales
Administrative Expenses
Taxation
Profit for the Financial Year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities		 2020
2019
£
£
7,170
475,128
(920)
(465,750)
6,250
9,378
(6,243)
(7,231)
7
2,147
(1)
(408)
6
1,739
2020
2019
£
£
184,267
84,237
(81,205)
(81,181)
103,062
3,056

EHC 2019 figures have been restated as follows: Assets: £75,104 Restated to £84,237 Liabilities: (£73,695) Restated to (£81,181)

Page 23 of 23