Charity registration number 1102307
JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
LEGAL AND ADMINISTRATIVE INFORMATION
| Charity number | 1102307 |
|---|---|
| Chairman | Mohammed Yassin |
| Secretary | Mohammed Saleem |
| Principal address | 173-175 Albert Road |
| Stechford | |
| Birmingham | |
| B33 8UB | |
| Independent examiner | Nouman Shahzad |
| 57 Alfred Street | |
| Sparkbrook | |
| Birmingham | |
| B12 8JP | |
| Bankers | TSB Bank PLC |
| Sparkhill | |
| Birmingham | |
| Lloyds Bank PLC | |
| New Street | |
| Birmingham |
JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 11 |
JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Jamia Masjid's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The principal objectives of the Charity are:
To help develop knowledge of religion, heritage, moral and social values and to encourage the application of the values within the community.
To provide the diverse Muslim community with a place where they can perform their acts of worship and conduct various social affairs
To encourage Sunni Brelwi Muslims to interact with the wider community, in turn promoting mutual peace and understanding with multifaiths in the neighbourhood.
To invest in the future generation and the long term possessions of the Muslim community and society at large.
Memorisation of the Holy Qura’an.
To create an enjoyable and accessible learning atmosphere through dialogue, discussion and social interaction.
Teaching to recite the Holy Qur’an in the correct manner.
Instil Islamic beliefs in the hearts of the pupils in the light of the understanding of the Qur’an and Sunnah.
Teaching the basic and necessary Islamic injunctions.
Introducing the life of the Holy Prophet Sallallahu alaihe wa sallam and other Prophets Alaihim salaam.
Teaching manners and conduct in line with Islamic etiquette and beliefs to be a good and responsible human being in society.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Jamia Masjid should undertake.
Achievements and performance
Financial review
It is the policy of the Jamia Masjid that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Jamia Masjid’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Trustees has assessed the major risks to which the Jamia Masjid is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
Jamia Masjid and Madrassa Faiz-Ul Quran Ghousia is a Charity Organisation. It is registered with the Charity Commissions (No. 1102307) and constituted by Deed of Trust. The Charity is administered by a Trust Committee.
The Trustees who served during the year and up to the date of signature of the financial statements were: Mohammed Yassin
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
TRUSTEES REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Mohammed Saleem
STATUS
Jamia Masjid and Madrassa Faiz-Ul Quran Ghousia is a Registered Charity.
The Trustees report was approved by the Board of Trustees.
Mohammed Yassin
(Chairman)
Dated: 15 December 2022
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
We report to the Trustees on my examination of the financial statements of Jamia Masjid & Madrassa Faiz-ul Quran Ghousia (the Jamia Masjid) for the year ended 31 March 2022.
Responsibilities and basis of report
As the Trustees of the Jamia Masjid you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
We report in respect of our examination of the Jamia Masjid’s financial statements carried out under section 145 of the 2011 Act. In carrying out our examination, we have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
We understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
We have completed our examination. We confirm that no matters have come to our attention in connection with the examination giving us cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Jamia Masjid as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Nouman Shahzad 57 Alfred Street Sparkbrook Birmingham B12 8JP
Dated: 15 December 2022
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income from: | |||
| Charitable activities | 3 | 97,611 | 74,644 |
| Expenditure on: | |||
| Charitable activities | 4 | 93,786 | 63,706 |
| Net gains/(losses) on investments | 7 | 734,000 | - |
| Net movement in funds | 737,825 | 10,938 | |
| Fund balances at 1 April 2021 | 431,199 | 420,261 | |
| Fund balances at 31 March 2022 | 1,169,024 | 431,199 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Fixed assets Tangible assets 8 Investment properties 9 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current (liabilities)/assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ £ 219,329 1,184,385 1,403,714 42,607 (277,297) (234,690) 1,169,024 1,169,024 1,169,024 |
2021 £ £ 412,221 - 412,221 22,747 (3,769) 18,978 431,199 431,199 431,199 |
2021 £ £ 412,221 - 412,221 22,747 (3,769) 18,978 431,199 431,199 431,199 |
|---|---|---|---|
| 412,221 18,978 |
|||
| 431,199 | |||
| 431,199 | |||
| 431,199 |
The financial statements were approved by the Trustees on 15 December 2022
Mohammed Yassin Trustee
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
Jamia Masjid & Madrassa Faiz-ul Quran Ghousia is a Charity Organisation. It is registered with the Charity Commissions (No: 1102307) and constituted by Deed of Trust.
The Charity is administered by a Trust Committee.
The principal object of the Charity is to provide a Place of Worship, Religeous Teachings and Education Centre for the benefit of the local community.
1.1 Accounting convention
The financial statements have been prepared in accordance with rules and purposes of Jamia Masjid, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Jamia Masjid is a Public Benefit Entity as defined by FRS 102.
The Jamia Masjid has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the Jamia Masjid. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Jamia Masjid has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trustees of Jamia Masjid & Madrassa Faiz-ul Quran Ghousia.
1.4 Income
Income is recognised when the Jamia Masjid is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
Cash donations are recognised on receipt. Other donations are recognised once the Jamia Masjid has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Jamia Masjid has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
The expenditures are accounted for on accrual basis.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 2% on cost Fixtures and fittings 15% on written down value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. A formal valuation is scheduled post year end. The surplus or deficit on revaluation is recognised in profit or loss.
The Trustees consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies above.
1.8 Impairment of fixed assets
At each reporting end date, the Jamia Masjid reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Jamia Masjid’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the Jamia Masjid’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Charitable activities
| Voluntary Income Rental income Other income: Coronavirus JRS |
2022 £ 53,566 37,519 6,526 97,611 |
2021 £ 22,349 28,000 24,295 |
|---|---|---|
| 74,644 |
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
4 Charitable activities
| Staff costs Depreciation Bank charges Website Rates Light & heat Stationery & printing Telephone Repairs & maintenance Cleaning Insurance Other Professional fees Accountants fees |
2022 £ 20,711 16,892 12,538 2,515 1,368 5,100 230 478 652 4,679 1,790 25,273 1,560 93,786 93,786 |
2021 £ 31,895 11,484 121 865 1,030 6,080 160 449 4,401 310 1,648 4,448 815 |
|---|---|---|
| 63,706 | ||
| 63,706 |
5 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Jamia Masjid during the year.
6 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| 4 | 5 | |
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 20,640 | 31,365 |
| Social security costs | 71 | 530 |
| 20,711 | 31,895 |
There were no employees whose annual remuneration was more than £60,000.
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
7 Net gains/(losses) on investments
| Unrestricted funds 2022 £ Revaluation of investments 734,000 Tangible fixed assets Freehold land and buildings Fixtures and fittings £ £ Cost At 1 April 2021 547,831 8,694 Additions 90,000 - Reclassification (266,000) - At 31 March 2022 371,831 8,694 Depreciation and impairment At 1 April 2021 138,596 5,708 Depreciation charged in the year 16,444 448 At 31 March 2022 155,040 6,156 Carrying amount At 31 March 2022 216,791 2,538 At 31 March 2021 409,235 2,986 Investment property Fair value At 1 April 2021 Additions through external acquisition Reclassification Net gains or losses through fair value adjustments At 31 March 2022 |
Total 2021 £ - Total £ 556,525 90,000 (266,000) 380,525 144,304 16,892 161,196 219,329 412,221 2022 £ - 184,385 266,000 734,000 1,184,385 |
|---|---|
8 Tangible fixed assets
9 Investment property
During the year the property which is let for investment purposes on leases was transferred from freehold property to investment property, as at 1 April 2021. The carrying value of the freehold property was transferred at this date. The investment property has subsequently been revalued by the Trustees at the reporting date to its expected fair value of £1,000,000 at the time based on a valuation carried out by trustees. A formal valuation is scheduled post year end.
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JAMIA MASJID & MADRASSA FAIZ-UL QURAN GHOUSIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 10 Creditors: amounts falling due within one year Trade creditors Other creditors |
2022 £ 261,297 16,000 277,297 |
2021 £ 3,769 - |
|---|---|---|
| 3,769 |
11 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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