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2022-12-31-accounts

CHARITY REGISTRATION NUMBER: 1096111

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS 31st December 2022

BRIAN PAUL LIMITED

Chartered Accountants & Statutory Auditors Chase Green House 42 Chase Side Enfield Middlesex EN2 6NF

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 December 2022

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
13
14
15

THE COUNCIL OF EUROPEAN JAMAATS

TRUSTEES' ANNUAL REPORT YEAR ENDED 31 December 2022

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 President Mr Murtaza Kanani Vice President Ms Sabira Lakha Secretary General Retired 13/07/2023 Mrs Azmina Hansraj Secretary General Appointed 11/08/2023 Mr Mohammed Ali Muraj Honorary Treasurer Mr Farhan Jamal Assistant Secretary General Retired 13/07/2023 Mrs Nawal Jeraj Assistant Secretary General Appointed 11/08/202 Mr Naïme Vally Assistant Honorary Treasurer Mr Murtaza Bharwani Mr Arif Hiridjee Dr Husein Jiwa Mr Salim Hamir Dr Rizwan Alidina Mr Imran Najafi Mr Rasool Bhamani Mr Hussein-Ali Rahemtulla Mr Kamran Shah Mr Shakir Rahemtulla Mr Rizwan Rahemtulla Mr Mohammed Mohsin Asaria Dr. Hassani Dewji Retired 20/05/2022 Mr Sibtain Allibhai Mr Moshin Kassam Mr Soudjad Cassam Chenai Mr Arif Kassam Mr Azad Poptani Mr Mounisse Cheraly Mr Muntazir Haji Mrs Nasima Karim Mr Riaz Kaba Mr Zaheer Allarakhia Ms Zainab Ladha Retired 18/02/2023 Mr Shabbir Merali Appointed 16/10/2022 Mrs Fatim Riyaz Bandali Appointed 01/04/2022 Mr Sajad Manji Appointed 28/07/2022 Mr Faysal Pirmohamed Appointed 21/02/2022 Mr Sultan Kanani Appointed 18/02/2023 Mr Abbas Kara Appointed 21/06/2022 Mr Miqdad Master Appointed 01/04/2022 Mr. Altaf Daya Appointed 17/05/2023

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 2022

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.

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 2022

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:

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 36% to £869,781 and the Outgoing Group’s Resources decreased by 25% to £853,607.

Unrestricted funds amounted to £1,330,685 (2021 - £1,237,684) 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 2022

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

In the forthcoming year, the Charity will aim to:

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 2022

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 complaints policy is in operation and the trustees are pleased to confirm that no complaint 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:

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.

08/10/2023 The trustees' annual report was approved on ________ and signed on behalf of the board of trustees by:

Mohammed Muraj

Salim Rehmatullah

Salim Rehmatullah (Oct 8, 2023 11:52 GMT+1) ___ Mohammed Muraj (Oct 8, 2023 11:50 GMT+1) _____ 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 2022

Opinion

We have audited the financial statements of The Council of European Jamaats (the “Charity”) for the year ended 31 December 2022 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’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• 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 2022

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 2022

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, misrepresentations, or the override of internal control.

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 internal control.

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 cease to continue as a going concern.

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 presentation.

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 identify during our audit.

Page 8

THE COUNCIL OF EUROPEAN JAMAATS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE COUNCIL OF EUROPEAN JAMAATS (continued) YEAR ENDED 31 December 2022

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 (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

Dated _______ 09/12/2023

Page 9

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 December 2022

Unrestricted Restricted
Notes Funds Funds Total Funds Total Funds
2022 2022 2022 2021
£ £ £ £
Income and endowments
Donations and legacies 4 131,473 620,501 751,974 1,151,089
Other income 5 117,807 - 117,807 197,515
Total income 249,280 620,501 869,781 1,348,604
Expenditure
Expenditure on charitable activities 6,7 (156,279) (699,576) (855,855) (1,133,513)
Other expenditure 8 - 2,248 2,248 1,542
Total expenditure (156,279) (697,328) (853,607) (1,131,971)
Net income 93,001 (76,828) 16,174 216,633
Reconciliation of funds
Total funds brought forward 21 1,237,684 129,597 1,367,281 1,119,719
Total funds carried forward 21 1,330,685 52,769 1,383,455 1,336,352

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 2022

Notes
£
£
Fixed assets
Tangible fixed assets
12
-
Investment property
14
270,000
Investment
645,105
915,105
Current assets
Debtors
15
336,728
Cash at bank and in hand
16
527,528
864,256
CREDITORS : amounts falling due within one year
17
(395,907)
NET CURRENT ASSETS
468,349
Total assets less current liabilities
1,383,454
Net assets
1,383,454
Funds
Restricted funds
21
52,769
Unrestricted funds
21
1,330,685
Total charity funds
1,383,454
2022		 £
£
-
270,000
645,105
915,105
346,898
464,127
811,025
(389,778)
421,247
1,336,352
1,336,352
168,549
1,167,803
1,336,352
2021		 £
£
-
270,000
645,105
915,105
346,898
464,127
811,025
(389,778)
421,247
1,336,352
1,336,352
168,549
1,167,803
1,336,352
2021
1,336,352
1,336,352
168,549
1,167,803
1,336,352

These financial statements were approved by the board of trustees and authorised for issue on ____ and are signed on behalf of the board by: 08/10/2023

Salim Rehmatullah

Salim Rehmatullah (Oct 8, 2023 11:52 GMT+1)

………………………………………..

Mr Salim Rehmatullah President

Mohammed Muraj

Mohammed Muraj (Oct 8, 2023 11:50 GMT+1)

………………………………………..

Mr Mohammed Muraj Honorary Treasurer

Page 11

THE COUNCIL OF EUROPEAN JAMAATS

BALANCE SHEET (CHARITY) AS AT 31 December 2022

Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
277,347
Cash at bank and in hand
16
439,404
716,751
CREDITORS : amounts falling due within one year
17
(255,251)
NET CURRENT ASSETS
461,500
Total assets less liabilities
1,376,706
Net assets
1,376,706
Funds
Restricted funds
21
46,021
Unrestricted funds
21
1,330,686
Total charity funds
1,376,706
2022		 Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
277,347
Cash at bank and in hand
16
439,404
716,751
CREDITORS : amounts falling due within one year
17
(255,251)
NET CURRENT ASSETS
461,500
Total assets less liabilities
1,376,706
Net assets
1,376,706
Funds
Restricted funds
21
46,021
Unrestricted funds
21
1,330,686
Total charity funds
1,376,706
2022		 Notes
£
£
Fixed assets
Tangible assets
12
270,000
Investments
13
645,206
915,206
Current assets
Debtors
15
277,347
Cash at bank and in hand
16
439,404
716,751
CREDITORS : amounts falling due within one year
17
(255,251)
NET CURRENT ASSETS
461,500
Total assets less liabilities
1,376,706
Net assets
1,376,706
Funds
Restricted funds
21
46,021
Unrestricted funds
21
1,330,686
Total charity funds
1,376,706
2022		 £
£

270,000

645,206

915,206
316,550
382,967
699,517
(251,942)

447,574

1,362,780

1,362,780

125,096

1,237,684

1,362,780
2021		 £
£

270,000

645,206

915,206
316,550
382,967
699,517
(251,942)

447,574

1,362,780

1,362,780

125,096

1,237,684

1,362,780
2021





1,376,706 1,362,780
1,376,706 1,362,780
46,021
1,330,686		 125,096
1,237,684
1,376,706 1,362,780

These financial statements were approved by the board of trustees and authorised for issue on _____ and are signed on behalf of the board by: 08/10/2023

Salim Rehmatullah

Salim Rehmatullah (Oct 8, 2023 11:52 GMT+1)

………………………………………..

Mr Salim Rehmatullah President

Mohammed Muraj

Mohammed Muraj (Oct 8, 2023 11:50 GMT+1)

………………………………………..

Mr Mohammed Muraj Honorary Treasurer

Page 13

THE COUNCIL OF EUROPEAN JAMAATS

CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31 December 2022

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		 2022
2021
£
£
16,174
216,633
(117,807)
(197,515)
-
(30,033)
-
-
10,170
146,889
37,057
(141,082)
(54,406)
(5,107)
117,807
227,548
-
117,807
227,548
63,401
222,441
464,127
241,686
527,528
464,127

Page 14

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 December 2022

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 £13,926 (2021: £215,091). 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 15

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 December 2022

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 16

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 December 2022

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 17

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

Consolidated
Donations
Donations
Subscriptions
East Africa trip
Marriage seminar
Bab Al & Madinatul; Ilm Camp
MAMT
Capacity building
Mediation
Seniors Trip
CoEJ/WF heritage project
Wellbeing
Scholars/ICRA
Womens retreat
Madrasah Centre of Excellence
DBS checks
WF Grant
Seniors Trip Africa
COVID funds
Gift Aid income
Rent Income - Mobile Homes
Rent income - properties
General donations (note 20)
Donation - CoEJ Investment		 Restricted
Total funds
Total funds
funds
2022
2021
£
£
£
£
1,491
-
1,491
35,133
13,600
-
13,600
13,600
-
-
-
1
1,200
-
1,200
180
11,839
-
11,839
-
11,796
-
11,796
-
5,524
-
5,524
290
-
-
250
2,687
-
2,687
-
-
-
50
-
-
1,280
3,000
-
3,000
3,854
-
-
75
-
-
3,508
-
-
1,648
74,410
-
74,410
-
-
-
-
-
-
-
-
-
5,926
-
5,926
17,829
72,750
-
72,750
-
17,645
-
17,645
-
-
620,501
620,501
1,073,391
27,412
-
27,412
-
Unrestricted
funds
249,280
620,501
869,781
1,151,089
Charity
Donations
Donations
Subscriptions
East Africa trip
Marriage seminar
Bab Al & Madinatul; Ilm Camp
MAMT
Capacity building
Seniors Trip
CoEJ/WF heritage project
Wellbeing
Scholars/ICRA
Women's retreat
Madrasah Centre of Excellence
DBS checks
WF Grant
Seniors Trip Africa
Gift Aid income
General donations		 Restricted
Total funds
Total funds
funds
2022
2021
£
£
£
£
1,491
-
1,491
35,133
13,600
-
13,600
13,600
-
-
-
1
1,200
-
1,200
180
11,839
-
11,839
-
11,796
-
11,796
-
5,524
-
5,524
290
2,687
-
2,687
-
-
-
-
50
-
-
-
1,280
3,000
-
3,000
3,854
-
-
-
75
-
-
-
3,508
-
-
-
1,648
74,410
-
74,410
-
-
-
-
-
5,926
-
5,926
17,829
-
620,501
620,501
1,073,391
Unrestricted
funds
131,473
620,501
751,974
1,151,089

5 Other income - Consolidated

Hajj income - European Hajj Company Ltd
Part settlement income - mobile homes
Rent income - properties
Donation income from KSIMC JV		 £
£
£
-
-
-
72,750
-
72,750
17,645
-
17,645
27,412
-
27,412
Unrestricted
funds
Restricted
funds
Total funds 2022
117,807
-
117,807

Previous year - consolidated and charity

Hajj income - European Hajj Company Ltd Part settlement income - mobile homes Rent income - properties Donation income from KSIMC JV

Other income - Charity

Part settlement income - mobile homes Rent income - properties Donation income from KSIMC JV

Unrestricted Restricted
funds funds Total funds 2021
£ £ £
119,965 119,965
13,836 13,836
63,714 63,714
197,515 - 197,515
Unrestricted Restricted
funds funds Total funds 2022
£ £ £
72,750 - 72,750
17,645 - 17,645
27,412 - 27,412
117,807 - 117,807

Page 18

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

6. Expenditure on charitable activities - Consolidated and charity

Bab Al Madinatul Ilm Camp
MAMT- Gents
Womens retreat
Womens activities
Marriage seminar
Capacity building
Board secretary
Mediation
Madrasah Centre of Excellence
Scholars/ICRA
Seniors trip
Board Conference
Census
CoEJ/WF heritage project
Business directory
Scholars/ICRA
Leadership summit
Other donations
Support costs (Note 7)
Other charitable activities (Note 20)		 £
£
£
£
22,295
-
22,295
-
17,605
-
17,605
814
-
-
-
75
1,333
-
1,333
-
5,232
-
5,232
61
7,343
-
7,343
-
2,610
-
2,610
-
-
-
1,045
-
-
3,508
6,000
-
6,000
-
7,687
-
7,687
-
2,232
-
2,232
-
4,880
-
4,880
-
-
-
247
5,041
-
5,041
789
-
-
4,600
-
-
4,041
-
-
37,253
74,021
-
74,021
82,766
-
699,576
699,576
998,314
Unrestricted
Funds
Restricted
Funds
Total 2022
Total 2021
156,279
699,576
855,855
1,133,513

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
IT Costs
Leases
foreign exchange gains and losses
Recruitment expenses
General expenses
Bad debt write off
Subscription
Equipment hire		 2022
£
4,836
15,744
2,666
8
342
3,757
1,497
12,087
3,405
1,918
1,601
2,751
12,167
9,500
2,046
979
(834)
310
(875)
116
74,021		 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

Page 19

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

8. Other expenditure

Arrangement costs
Audit fees
Profit or loss on foreign exchange
Taxation
Previous year
Other operating income
Administrative costs
Bank charges
Subscriptions
Audit fees
Profit or loss on foreign exchange
Taxation		 £
-
-
-
-
-
£
-
-
-
-
-
-
-
-
-
Unrestricted
Funds
Unrestricted
Funds		 £
3,588
600
(6,964)
528
(2,248)
£
(1,635)
39
6
1,106
600
(2,020)
362
(1,542)
Restricted
Funds
Restricted
Funds		 £
3,588
600
(6,964)
528
Total Funds 2022
(2,248)
£
(1,635)
39
6
1,106
600
(2,020)
362
-
Total Funds 2021
(1,542)

9. Net income

Net income is stated after charging/(crediting):
2022 2021
£ £
Audit fees 6,850 3,600

Page 20

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

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		 2022
£
12,167
-
-
12,167		 2021
£
32,952
-
-
32,952

The average head count of employees during the year was 1 (2021:3).

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 £15,744 (2021: £301) were incurred by the trustees

Page 21

THE COUNCIL OF EUROPEAN JAMAATS

NOTES TO THE FINANCIAL STATEMENTS ( continued )

YEAR ENDED 31 December 2022

12. Tangible fixed assets Consolidated

Tangible fixed assets
Consolidated
Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021
Charity
Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 £
£
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 2022 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

13.
Investment
At 1 January 2022
Write off
At 31 December 2022
At 31 December 2021
14.
Investment property
At 31 December 2022
At 31 December 2021		 Consolidated
£
645,105		 Charity
£

645,206
645,105
645,206
645,105
645,206
Total
£
270,000
270,000

Page 22

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

15. Debtors Consolidated

Prepayments and accrued income Other debtors

2022 2021
£ £
105,169 101,255
231,559 245,643
336,728 346,898

Charity

Prepayments and accrued income Other debtors

2022 2021
£ £
5,596 1,680
271,751 314,870
277,347 316,550

16. Cash at hand Consolidated

Current accounts and deposit accounts Cash in hand

Charity

Current accounts and deposit accounts Cash in hand

2022 2021
£ £
527,457 464,056
71 70
527,528 464,127
2022 2021
£ £
439,333 382,896
71 70
439,404 382,967

17. Creditors: amounts falling due within one year Consolidated

Consolidated
Trade creditors
Accruals
Corporation tax
Other creditors		 2022
2021
£
£
37,702
38,816
15,400
600
890
362
341,915
350,000
395,907
389,778

Charity

Charity
Trade creditors
Accruals
Other creditors
18.
Subsidiary Company
Included in debtors are amount due from:
European Hajj Company Limited		 2022
2021
£
£
2,726
1,942
14,200
-
238,325
250,000
255,251
251,942
2022
2021
£
£
40,192
39,192

European Hajj Company Limited

Page 23

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

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 (2021: £nil)

Included within other debtors in note 15 is a loan to Essex Jamaat of £206,525 (2021 : £250,000) which amount is matched by a loan from The World Federation in the same amounts and included within other creditors in note 17.

20. Analysis of movement in funds - Charity

Restricted Funds

Peterborough
Hujjat
Paris
Leicester
Imam Reza Hardship Fund
Birmingham
AFED Sdolidarity Day
General Capital Projects
The Bhavnagar Tenant Housing
Refugees in Brussels
Nazar
East Africa Trip
WF Brighter Future
Switzerland
WHIPAS
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
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
Opening
balance
£
1,237,684
1,237,684		 Income
£
1,056
1,000
6,093
56,377
10,202
1
1
1
51
1
1
230
14,000
339,824
42,671
103,497
1
6,606
15,395
16,892
1,530
4,458
612
620,501
Income
£
249,280
249,280		 Expenditure
£
(1,057)
(1,000)
(50)
(6,093)
(44,147)
(10,202)
(1)
(1)
(1)
(6)
(21)
(0)
(230)
(6,000)
(180)
(370,200)
(42,145)
(107,783)
(3,806)
(5,341)
(17,993)
(14,404)
(1,670)
(65,850)
(500)
(500)
(396)
(699,576)
Expenditure
£
156,279
156,279		 Closing
balance
£
(1)
-
-
2,000
12,230
-
(0)
(0)
(0)
45
(20)
1
-
14,000
-
10,184
738
20,789
(0)
1
(2,108)
6,000
108
(21,731)
1,500
1,900
388
46,021
Closing
balance
£
1,330,685
1,330,685

Page 24

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

21. Analysis of charitable funds

Consolidated
Unrestricted funds
Unrestricted funds
Prior period error arising on consolidation
Restricted funds
Restricted funds
Prior period error arising on consolidation
Charity
Unrestricted funds
Unrestricted funds
Restricted funds
Restricted funds		 £
£
£
£
1,167,803
249,280
(156,279)
1,260,804
69,881
69,881
At 1 Jan
2022
Income
Expenditure At 31 Dec 2022
1,237,684
249,280
(156,279)
1,330,685
£
£
£
£
168,549
620,501
(697,328)
91,721
(38,952)
(38,952)
At 1 Jan
2022
Income
Expenditure At 31 Dec 2022
129,597
620,501
(697,328)
52,769
£
£
£
£
1,237,684
249,280
(156,279)
1,330,685
At 1 Jan
2022
Income
Expenditure At 31 Dec 2022
1,237,684
249,280
(156,279)
1,330,685
£
£
£
£
125,096
620,501
(699,576)
46,021
At 1 Jan
2021
Income
Expenditure At 31 Dec 2021
125,096
620,501
(699,576)
46,021

Page 25

THE COUNCIL OF EUROPEAN JAMAATS NOTES TO THE FINANCIAL STATEMENTS ( continued ) YEAR ENDED 31 December 2022

22. Analysis of net assets between funds

Tangible fixed assets
Net current assets
Net assets		 Unrestricted
Funds
Restricted
Funds
Total Funds
2022
£
£
£
862,336
52,769 915,105
468,349
468,349
1,330,685
52,769
1,383,454
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
168,549 1,336,352

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		 2022
2021
£
£
-
-
-
-
-
-
1,635
2,776
269
2,776
1,904
(528)
(362)
2,248
1,542
2022
2021
£
£
187,697
180,734
(180,845)
(176,130)
6,852
4,604

24. Contingent liabilities

The Council of European Jamaats acts as guarantor to a loan made to The European Hajj Company Limited by The World Federation of KSMIC. As at 31st December 2022 £100,000 was outstanding. During 2023 $70,000 of this amount has been repaid.

Page 26