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2021-12-31-accounts

CHARITY REGISTRATION NUMBER: 1096111

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS 31st December 2021

BRIAN PAUL LIMITED

Chartered Accountants & Statutory Auditors Chase Green House 42 Chase Side Enfield Middlesex

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 December 2021

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
10
11
12
13
14

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES' ANNUAL REPORT YEAR ENDED 31 December 2021

The trustees present their report and the financial statements of the Charity for the year ended 31 December 2021.

Reference and administrative details

Registered charity No: 1096111 (England & Wales) Principal Office The Council of European Jamaats Unit 401, 1st floor Metroline House, 118-122 College Road HA1 1BQ Trustees: Mr Salim Rehmatullah Appointed 9/10/2021 President Mr Murtaza Kanani Appointed 09/10/2021 Vice President Ms Sabira Lakha Appointed 09/10/2021 Secretary General Mr Mohammed Ali Muraj Appointed 09/10/2021 Honorary Treasurer Mr Farhan Jamal Appointed 09/10/2021 Assistant Secretary General Mr Naïme Vally Appointed 09/10/2021 Assistant Honorary Treasurer Dr Akber Mohamedali Resigned 10 October 2021 Mr Mahmood Hooda Resigned 10 October 2021 Mr Murtaza Bharwani Appointed 12/03/2021 Mr Mohamed Hassan Visram Resigned 10 October 2021 Mr Arif Hiridjee Mr Tawfiq Jivraj Resigned 10 October 2021 Mr Murtaza Gulamhusein Resigned 10 October 2021 Mrs Waheeda Rahim Resigned 10 October 2021 Dr Husein Jiwa Syed Mohammed Naqvi Resigned 10 October 2021 Miss Esmat Jeraj Resigned 10 October 2021 Mr Makbul Jaffer Resigned 10 October 2021 Mr Salim Hamir Dr Rizwan Alidina Mrs Ismat Ramji Mr Imran Najafi Mr Rasool Bhamani Mr Fayyaz Haji Resigned 10 October 2021 Mr Salim Govani Resigned 10 October 2021 Mr Mukhtarali Hirani Resigned 10 October 2021 Mr Hussein-Ali Rahemtulla Mr Mohamedtaki Mohamedali Jaffer Resigned 10 October 2021 Mr Kamran Shah Mr Shaneabbas Fidahussein Rajani Resigned 10 October 2021 Mr Komeil Rajani Resigned 10 October 2021 Mr Shakir Rahemtulla Mrs Mariam Hassam Resigned 10 October 2021 Mr Rizwan Rahemtulla Mr Irad Michael Hassanaly Resigned 10 October 2021 Mr Mohammed Mohsin Asaria Dr Hassanali Dewji Mr Hamid Pirbhai Resigned 29 October 2021 Mr Sibtain Allibhai Mr Moshin Kassam Mr Soudjad Cassam Chenai Mr Arif Kassam Appointed 09/05/2021 Mr Azad Poptani Appointed 09/10/2021 Mr Mounisse Cheraly Appointed 01/11/2021 Mr Muntazir Haji Appointed 09/10/2021 Mrs Nasima Karim Appointed 12/11/2021 Mr Riaz Kaba Appointed 09/10/2021 Mr Zaheer Allarakhia Appointed 14/03/2021 Ms Zainab Ladha Appointed 09/10/2021

Auditors:

Brian Paul Limited Chartered Accountants & Statutory Auditor Chase Green House 42 Chase Side Enfield Middlesex EN2 6NF

Page 1

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31 December 2021

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 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 and volunteer 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, and

(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 2022 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

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 December 2021

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:

Developments and improvements across all main areas during 2021 have enabled the Charity to enhance its services to its members. Furthermore, we hope to resume face to face events from 2022 onwards when the COVID-19 restrictions would have been lifted.

Financial review

The results of the group’s activities are shown on pages 10 to 25 of the financial statements.

The incoming resources of the Group decreased by 57% to £1,818,074 and the Outgoing Group’s Resources decreased by 64% to £1,972,975

Unrestricted funds amounted to £1,167,803 (2020 - £1,027,789) 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

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 December 2021

With respect to the Charity’s 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.

Key management personnel remuneration

The Office Bearers, comprising the President, Vice President, Secretary General, Honorary Treasurer, Assistant Secretary General and Assistant Honorary 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 19 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 £30,000. 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, we hope for 2022 and subsequent to be more positive year despite the ongoing and unprecedented potential impact of COVID-19 putting a temporary restriction on the current and future activities. This is closely being monitored as the restrictions are eased in the coming months.

Auditors

The auditors, Brian Paul Limited, were appointed late in 2022 to fill a casual vacancy and are eligible for reappointment.

Page 4

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31 December 2021

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:

• 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.

21/02/23

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Salim Rehmatullah

M.Muraj

___ _____ Mr S Rehmatullah Mr M Muraj President Honorary Treasurer

Page 5

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS YEAR ENDED 31 December 2021

Opinion

We have audited the financial statements of The Council of European Jamaats (the “Charity”) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, consolidated statement of financial positon, charity statement of financial position, consolidated 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

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS (continued) YEAR ENDED 31 December 2021

Opinions on other matters prescribed by the Charities Act 2011

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the trustees' report has been prepared in accordance with applicable requirements.

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.

Auditor's 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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

Page 7

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS (continued) YEAR ENDED 31 December 2021

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

Page 8

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we

Page 8

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS (continued) YEAR ENDED 31 December 2021

Use of our report

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

Paul Phillips

Paul Phillips (Senior Statutory Auditor)

For and on behalf of Brian Paul Limited Chartered Accountants & Statutory Auditors Chase Green House 42 Chase Side Enfield Middlesex EN2 6NF

21st February 2023

……………………….

Page 9

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 December 2021

Unrestricted Restricted
Notes Funds Funds Total Funds Total Funds
2021 2021 2021 2020
£ £ £ £
Income and endowments
Donations and legacies 4 77,698 1,073,391 1,151,089 3,159,508
Other income 5 197,515 - 197,515 7,170
Total income 275,213 1,073,391 1,348,604 3,166,678
Expenditure
Expenditure on charitable activities 6,7 (135,199) (998,314) (1,133,513) (3,097,782)
Other expenditure 8 - 1,542 1,542 (7,164)
Total expenditure (135,199) (996,772) (1,131,971) (3,104,946)
Net income 140,014 76,619 216,633 61,733
Reconciliation of funds
Total funds brought forward 1,027,789 91,930 1,119,719 1,057,985
Total funds carried forward 1,167,803 168,549 1,336,352 1,119,718

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

Page 10

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED BALANCE SHEET AS AT 31 December 2021

Notes
£
£
Fixed assets
Tangible fixed assets
12
-
Investment property
14
270,000
Investment
13
645,105
915,105
Current assets
Debtors
15
346,898
Cash at bank and in hand
16
464,127
811,025
CREDITORS : amounts falling due within one year
17
(389,778)
NET CURRENT ASSETS
421,247
Total assets less current liabilities
1,336,352
Net assets
1,336,352
Funds
Restricted funds
21
168,549
Unrestricted funds
21
1,167,803
Total charity funds
1,336,352
2021		 £
£
-
270,000
645,107
915,107
493,787
241,686
735,473
(530,860)
204,612
1,119,719
1,119,719
91,930
1,027,789
1,119,719
2020		 £
£
-
270,000
645,107
915,107
493,787
241,686
735,473
(530,860)
204,612
1,119,719
1,119,719
91,930
1,027,789
1,119,719
2020
1,119,719
1,119,719
91,930
1,027,789
1,119,719

These financial statements were approved by the board of trustees and authorised for issue on 23/02/23________ and are signed on behalf of the board by:

Salim Rehmatullah

………………………………………..

Mr Salim Rehmatullah President

M.Muraj

………………………………………..

Mr Mohammed Muraj Honorary Treasurer

Page 11

THE COUNCIL OF EUROPEAN JAMAATS

BALANCE SHEET (CHARITY) AS AT 31 December 2021

Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
316,550
Cash at bank and in hand
16
382,967
699,516
CREDITORS : amounts falling due within one year
17
(251,942)
NET CURRENT ASSETS
447,574
Total assets less liabilities
1,362,780
Net assets
1,362,780
Funds
Restricted funds
21
125,096
Unrestricted funds
21
1,237,684
Total charity funds
1,362,780
2021		 Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
316,550
Cash at bank and in hand
16
382,967
699,516
CREDITORS : amounts falling due within one year
17
(251,942)
NET CURRENT ASSETS
447,574
Total assets less liabilities
1,362,780
Net assets
1,362,780
Funds
Restricted funds
21
125,096
Unrestricted funds
21
1,237,684
Total charity funds
1,362,780
2021		 Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
316,550
Cash at bank and in hand
16
382,967
699,516
CREDITORS : amounts falling due within one year
17
(251,942)
NET CURRENT ASSETS
447,574
Total assets less liabilities
1,362,780
Net assets
1,362,780
Funds
Restricted funds
21
125,096
Unrestricted funds
21
1,237,684
Total charity funds
1,362,780
2021		 £
£

270,000

645,208

915,208
463,436
156,993
620,429
(387,948)

232,481

1,147,689

1,147,689

50,019

1,097,670

1,147,689
2020		 £
£

270,000

645,208

915,208
463,436
156,993
620,429
(387,948)

232,481

1,147,689

1,147,689

50,019

1,097,670

1,147,689
2020





1,362,780 1,147,689
1,362,780 1,147,689
125,096
1,237,684		 50,019
1,097,670
1,362,780 1,147,689

These financial statements were approved by the board of trustees and authorised for issue on 21/02/23 ________ and are signed on behalf of the board by:

Salim Rehmatullah

………………………………………..

Mr Salim Rehmatullah President

M.Muraj

………………………………………..

Mr Mohammed Muraj Honorary Treasurer

Page 12

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31 December 2021

Cash flows from operating activities
Net income for the year
Adjustments for:
Dividends, interest and rents from investments
Write off from CoEJ Investment Ltd
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
Disposal/purchase of investments
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		 2021
2020
£
£
216,633
61,733
(197,515)
-
(30,033)
-
-
1,515
146,889
(135,196)
(141,082)
138,920
(5,107)
66,972
227,548
-
-
(15,000)
227,548
(15,000)
222,441
51,972
241,686
189,714
464,127
241,686

Page 13

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 December 2021

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 undertaking on a line-by-line basis. The entity consolidated is listed in note 23 of the accounts with further analysis provided. 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 £215,091 (2020: £62,325 surplus). 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.

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 14

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 December 2021

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 15

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 December 2021

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 16

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

4
Consolidated
Donations
Donations
Subscriptions
East Africa trip
Marriage seminar
MAMT
Capacity building
Leadership Development Program
Mediation
CoEJ/WF heritage project
Wellbeing
Scholars/ICRA
Womens retreat
Young Girls camp
Youth conference
Madrasah Centre of Excellence
DBS checks
Government grant
COVID funds
Gift Aid income
Rent income - properties
General donations (note 20)
Donation from KSIMC JV
Donations and legacies		 Restricted
Total funds
Total funds
funds
2021
2020
£
£
£
£
35,133
-
35,133
54,568
13,600
-
13,600
22,177
1
-
1
-
180
-
180
80
-
-
-
588
290
-
290
-
-
-
-
700
250
-
250
2,320
50
-
50
-
1,280
-
1,280
1,080
3,854
-
3,854
-
75
-
75
-
-
-
-
(850)
-
-
-
50
3,508
-
3,508
6,606
1,648
-
1,648
-
-
-
-
20,789
-
-
-
5,749
17,829
-
17,829
56,931
-
-
-
13,483
-
1,073,391
1,073,391
2,945,798
-
-
-
29,440
Unrestricted
funds
77,698
1,073,391
1,151,089
3,159,508
Charity
Donations
Donations
Subscriptions
East Africa trip
Marriage seminar
MAMT
Capacity building
Leadership Development Program
Mediation
CoEJ/WF heritage project
Wellbeing
Scholars/ICRA
Women's retreat
Young Girls camp
Youth conference
Madrasah Centre of Excellence
DBS checks
Government grant
COVID funds
Gift Aid income
General donations
Donation from CoEJ Investments Ltd
Rent income - properties
Donation from KSIMC JV		 Restricted
Total funds
Total funds
funds
2021
2020
£
£
£
£
35,133
-
35,133
54,568
13,600
-
13,600
22,177
1
-
1
-
180
-
180
80
-
-
-
588
290
-
290
-
-
-
-
700
250
-
250
2,320
50
-
50
-
1,280
-
1,280
1,080
3,854
-
3,854
-
75
-
75
-
-
-
-
(850)
-
-
-
50
3,508
-
3,508
6,606
1,648
-
1,648
-
-
-
-
20,789
-
-
-
5,749
17,829
-
17,829
56,931
-
1,073,391
1,073,391
2,945,798
-
-
-
599
-
-
-
13,483
-
-
-
29,440
Unrestricted
funds
77,698
1,073,391
1,151,089
3,160,107

5 Other income - Consolidated

Hajj income - European Hajj Company Ltd
Part settlement income - mobile homes
Rent income - properties
Donation income from KSIMC JV		 £
£
£
-
-
-
119,965
-
119,965
13,836
-
13,836
63,714
-
63,714
Unrestricted
funds
Restricted
funds
Total funds 2021
197,515
-
197,515

Previous year

Previous year
Hajj income - European Hajj Company Ltd
Other income - Charity
Part settlement income - mobile homes
Rent income - properties
Donation income from KSIMC JV		 £
£
£
-
7,170
7,170
Unrestricted
funds
Restricted
funds
Total funds 2021
-
7,170
7,170
£
£
£
119,965
-
119,965
13,836
-
13,836
63,714
-
63,714
Unrestricted
funds
Restricted
funds
Total funds 2021
197,515
-
197,515

Part settlement income from Mobile homes of £119,965 includes a the write off from CoEJ Investment Ltd amounting to £30,033

Page 17

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

6. Expenditure on charitable activities - Consolidated

MAMT- Gents
Leadership Development Program
Womens retreat
Marriage seminar
Mediation
Madrasah Centre of Excellence
CoEJ/WF heritage project
Wellbeing
Scholars/ICRA
Leadership summit
Eid gifts
Other donations
Support costs (Note 7)
Other charitable activities (Note 20)		 £
£
£
£
814
-
814
100
-
-
-
4,691
75
-
75
-
61
-
61
-
1,045
-
1,045
8,736
3,508
-
3,508
240
247
-
247
951
789
-
789
200
4,600
-
4,600
-
4,041
-
4,041
-
-
-
-
100
37,253
-
37,253
38,684
82,766
-
82,766
114,326
-
998,314
998,314
2,929,753
Unrestricted
Funds
Restricted
Funds
Total 2021
Total 2020
135,199
998,314
1,133,513
3,097,782

7. Expenditure on charitable activities - Support costs Charity

Rent
Rates
Photocopier rental
Travelling
Meeting expenses
Printing, postage and stationary
Telephone and internet
Cleaning
Software and website
ID checks
Legal fees
Professional fees
Accounting fees
Insurance
Bank and card charges
Marketing
Salaries and social security costs
Audit fees
Recruitment expenses
General expenses
Bad debt write off
Subscription
Depreciation		 2021
£
18,144
993
2,006
301
356
338
669
20
8,051
3,270
4,575
520
300
1,725
1,476
77
32,952
3,000
1,036
825
18
2,112
-
82,766		 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

Page 18

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

8. Other expenditure

Other expenditure
Other operating income
Administrative costs
Bank charges
Subscriptions
Audit fees
Profit or loss on foreign exchange
Taxation		 £
-
-
-
-
-
-
-
Unrestricted
Funds		 £
(1,635)
39
6
1,106
600
(2,020)
362
(1,542)
Restricted
Funds		 £
(1,635)
39
6
1,106
600
(2,020)
362
Total Funds 2021
(1,542)

Previous year

Previous year
Hajj costs
Administrative costs
Insurance
Bank charges
Subscriptions
Audit fees
Profit or loss on foreign exchange
Taxation
Net income
Net income is stated after charging/(crediting):
Audit fees
Depreciation of tangible fixed assets		 £
-
-
-
-
-
-
-
-
-
Unrestricted
Funds		 £
920
681
910
12
1,028
1,200
2,412
1
7,164
2021
£
3,600
-
Restricted
Funds		 £
920
681
910
12
1,028
1,200
2,412
1
Total Funds 2020
7,164
2020
£
4,200
1,515

9. Net income

Page 19

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

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		 2021
£
32,952
-
-
32,952		 2020
£
69,039
1,214
853
71,106

The average head count of employees during the year was 3 (2020:5).

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 £301 (2020: £nil) were incurred by the trustees

Page 20

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

THE COUNCIL OF EUROPEAN JAMAATS

12. Tangible fixed assets Consolidated

Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Charity
Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020		 £
£
270,000
270,000
-
-
Investment
property
Total
270,000
270,000
-
-
-
-
-
-
270,000
270,000
270,000
270,000
£
£
270,000
270,000
-
Investment
property
Total
270,000
270,000
-
-
-
-
-
270,000
270,000
270,000
270,000

The investment property was valued by an independent professional valuer in 2017. In 2021 it is the opinion of the trustees that the market value has not changed since its last valuation by an independent professional valuer.

13.
Investment
At 1 January 2021
Write off
At 31 December 2021
At 31 December 2020
14.
Investment property
At 31 December 2021
At 31 December 2020		 Consolidated
Charity
£
£
645,107
645,208
(2)
(2)		 Consolidated
Charity
£
£
645,107
645,208
(2)
(2)
645,105
645,206
645,107
645,208
Total
£
270,000
270,000

Page 21

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

15.
Debtors
Consolidated
Prepayments and accrued income
Other debtors		 2021
2020
£
£
101,255
99,558
245,643
394,229
346,898
**493,787 **
Charity
Prepayments and accrued income
Other debtors
16.
Cash at hand
Consolidated
Current accounts and deposit accounts
Cash in hand
Charity
Current accounts and deposit accounts
Cash in hand
17.
Creditors: amounts falling due within one year
Consolidated
Trade creditors
Accruals
Corporation tax
Other creditors
Charity
Trade creditors
Accruals
Other creditors
18.
Subsidiary Company
Included in debtors are amount due from:
European Hajj Company Limited		 2021
2020
£
£
1,680
(17)
314,870
463,453
316,550
463,436
2021
2020
£
£
464,056
241,616
70
70
464,127
241,686
2021
2020
£
£
382,896
156,923
70
70
382,967
156,993
2021
2020
£
£
38,816
39,940
600
23,419
362
1
350,000
467,500
389,778
530,860
2021
2020
£
£
1,942
560
-
19,888
250,000
367,500
251,942
387,948
2021
2020
£
£
39,192
39,192

Page 22

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

19. 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 (2020: £nil)

The following related party transactions took place during the year with the Charity's wholly owned subsidiary (Note 23)

20. Analysis of movement in funds - Charity

Restricted Funds

Essex
Peterborough
Hyderi
Hujjat
Paris
Wessex
Leicester
Birmingham
Switzerland
WHIPAS
Al Mahdi Institute
European refugee crisis 2015
Khums
Fitra
Relief funds
Welfare
COVID funds
Fidya and kaffara
Sadaqa
Zakaat
Alim grant
Muharram grant
Ramadhan grant
Qurbani
Unrestricted funds
General funds		 Opening
balance
£
-
-
-
-
50
-
-
-
-
-
200
12,313
18,421
5
1,527
6,737
-
106
648
5,000
4,124
-
900
(10)
50,019
Opening
balance
£
1,097,670
1,097,670		 Income
£
13,686
26,429
8,750
16,175
-
33,712
2,000
20,910
6,000
180
-
-
570,408
40,109
206,772
101
93
34,471
33,387
7,204
40,037
7,000
4,400
1,567
1,073,391
Income
£
275,213
275,213		 Expenditure
£
(13,686)
(26,429)
(8,750)
(16,175)
-
(33,712)
-
(20,910)
-
-
(200)
(12,313)
(548,270)
(39,901)
(183,225)
(3,032)
(1,357)
(34,087)
(30,524)
(11,956)
(4,500)
(5,000)
(2,900)
(1,385)
(998,314)
Expenditure
£
135,199
135,199		 Closing
balance
£
-
-
-
-
50
-
2,000
-
6,000
180
-
-
40,559
212
25,074
3,805
(1,264)
490
3,511
248
39,661
2,000
2,400
172
125,096
Closing
balance
£
1,237,684
1,237,684

Page 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

21. Analysis of charitable funds

Consolidated
Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds
Charity
Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds		 £
£
£
£
1,027,789
275,213
(135,199)
1,167,803
At 1 Jan
2021
Income
Expenditure At 31 Dec 2021
1,027,789
275,213
(135,199)
1,167,803
£
£
£
£
91,930
1,073,391
(996,772)
168,549
At 1 Jan
2021
Income
Expenditure At 31 Dec 2021
91,930
1,073,391
(996,772)
168,549
£
£
£
£
1,097,670
275,213
(135,199)
1,237,684
At 1 Jan
2021
Income
Expenditure At 31 Dec 2021
1,097,670
275,213
(135,199)
1,237,684
£
£
£
£
50,019
1,073,391
(998,314)
125,096
At 1 Jan
2021
Income
Expenditure At 31 Dec 2021
50,019
1,073,391
(998,314)
125,096

Page 24

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2021

22. Analysis of net assets between funds

Tangible fixed assets
Net current assets
Net assets		 Unrestricted
Funds
Restricted
Funds
Total Funds
2021
£
£
£
746,556
168,549 915,105
421,247
421,247
1,167,803
168,5491,336,352
Tangible fixed assets
Net current assets
Net assets		 Unrestricted
Funds
Restricted
Funds
Total Funds
2020
£
£
£
823,177
91,930 915,107
204,612
204,612
1,027,789
91,9301,119,719

23. 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. 06281391). 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
Sundry income
Administrative expenses
Taxation
Profit for the financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities		 2021
2020
£
£
-
7,170
-
(920)
-
6,250
1,635
-
269
(6,243)
1,904
7
(362)
(1)
1,542
6
2021
2020
£
£
180,734
184,267
(176,130)
(181,205)
4,604
3,062

Page 25

Salim Rehmatullah (Feb 21, 2023 17:33 GMT+1)

Signature: M.Muraj M.Muraj (Feb 21, 2023 12:41 GMT)

Email: treasurer@coej.org

Signature:

Email: president@coej.org

Signature: Paul Phillips Paul Phillips (Feb 21, 2023 17:31 GMT)

Email: paul@brianpaul.co.uk