**Charity Registration No. 1108873**
**KETTERING MUSLIM ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **KETTERING MUSLIM ASSOCIATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr H Pervez Mr Z Ahmad Dr M Farooq Dr S El-Rabaa **Secretary** Mr S Bari **Charity number** 1108873 **Principal address** 123 Headland Kettering NN15 6AD **Independent examiner** Prime Taxation LTD 50 Wakering Road, G25, Barking England IG11 8GN
## **KETTERING MUSLIM ASSOCIATION**
## **CONTENTS**
**Page** Report 1 - 2 Independent examiner's report 3 Statement of financial activities 4 Balance sheet 5 Notes to the financial statements 6 - 11
## **KETTERING MUSLIM ASSOCIATION**
## **REPORT**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
The Trustees present their report and financial statements FOR THE YEAR ENDED 31 DECEMBER 2023.
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 Kettering Muslim Association'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 Kettering Muslim Association's objectives and principal activities are:
1. Kettering Muslim Association is a non-profit, charitable and apolitical Islamic organisation.
2. The Association is to facilitate for the people of Kettering, the conducting of all religious and social activities in accordance with the Holy Qur'an and Sunnah.
3. To establish, operate and maintain a regular place of worship for the dissemination of Islamic teaching and education.
4. To co-operate and form active links with other institutions, organisations and official bodies having similar aims and objectives for the benefit of the Muslim and the wider community.
5. To engage in inter-faith dialogue to help promote religious tolerance, community harmony and to build awareness of Islamic values and ideals.
6. To be the focal point for community engagement and liaison with the statutory bodies including the NHS, Police, Councils and the local Educational establishments.
The trustees acknowledge that the charity complies with section 4 of the Charities Act 2011 regarding providing a public benefit.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Kettering Muslim Association should undertake.
## **Achievements and performance**
As previously mentioned, the Muslim community continues to grow and the number of participants and attendees at the various activities occurring at the centre are increasing. The extension is complete now. A school for children have been successfully running throughout the year on weekdays and provide for learning
Arabic language and basic Islamic teachings.
## **Financial review**
The financial results of the charity are set out on page 5.
## **Reserve policy**
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
The trustees have examined the charity's requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be between 3 and 6 months of the expenditure.
## **Risk review**
The Trustees has assessed the major risks to which the Kettering Muslim Association is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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## **KETTERING MUSLIM ASSOCIATION**
## **REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
The trustees have conducted their own review of the major risks to which the Charity is exposed and systems have been established to mitigate against those risks.
Internal risks are minimized by the implementation of procedures for the authorisation of all
Transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable company.
These procedures are reviewed periodically to ensure that they still meet the needs of the Charity.
The charity has a reserves policy whereby the unrestricted funds not committed or invested in tangible fixed assets should be approximately three months running costs.
## **Structure, governance and management**
## **Governing document**
The Kettering Muslim Association was registered as charity in 6th April 2005. Its constitution was adopted on 23 April 2004 and amended on 19th March 2005.
## **Trustees**
The Trustees who served during the year were:
Mr Z Ahmed (Appointed 17 April 2013)
Dr M Farooq (Appointed 17 April 2013)
Dr S El-Rabaa (Appointed 17 April 2013)
Mr Hasan Pervez (Appointed 14 April 2016)
## **Recruitment and appointment of trustees**
New trustees with relevant expertise and enthusiasm are sought from within the community the organisation serves. The existing trustees are in regular contact with the community in general and are constantly looking for suitable candidates to become trustees.
## **Organisational structure**
The trustees meet at least monthly to oversee the operation of the charity and to formulate and instigate policy. Individual trustees have responsibility for the oversight of specialist functions within the charity.
## **Related parties**
The trustees are not aware of any related parties that they are required to disclose.
The report was approved by the Board of Trustees.
Mr M Farooq
Dated:
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## **KETTERING MUSLIM ASSOCIATION**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF KETTERING MUSLIM ASSOCIATION**
I report to the Trustees on my examination of the financial statements of Kettering Muslim Association (the Kettering Muslim Association) FOR THE YEAR ENDED 31 DECEMBER 2023.
## **Responsibilities and basis of report**
As the Trustees of the Kettering Muslim Association you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Kettering Muslim Association’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I 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.
I 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.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1 accounting records were not kept in respect of the Kettering Muslim Association as required by section 130 of the 2011 Act; or
2 the financial statements do not accord with those records; or 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## Syed Usman Ali Shah
Prime Taxation LTD 50 Wakering Road, G25, Barking England IG11 8G
Dated:
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## **KETTERING MUSLIM ASSOCIATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023**
|||**Unrestricted Restricted Total Unrestricted Restricted**|**Unrestricted Restricted Total Unrestricted Restricted**|**Unrestricted Restricted Total Unrestricted Restricted**|**Unrestricted Restricted Total Unrestricted Restricted**|**Unrestricted Restricted Total Unrestricted Restricted**|**Unrestricted Restricted Total Unrestricted Restricted**|**Total**|
|---|---|---|---|---|---|---|---|---|
|||**funds funds**|||**funds**|funds|||
||||**2023**|**2023**|**2023**|**2022**|**2022**|**2022**|
||**Notes**|£|£|£|£|£||£|
|**Income from:**|||||||||
|Donations and legacies|**3**||45,781.6|2,633.2|43,148.5|58,956|3,226|
62128|
|**Expenditure on:**|||||||||
|Charitable activities|**4**||53,947|2,633.15|53,947.15|65,094|3,226|
65,094|
|**Net expenditure for the year/**|||||||||
|**Net movement in funds**|||-8,165.4||-8,165.4|-6,138||-6,138|
|Fund balances at 1|||||||||
|January 2023|||335,122|148,939|484,061|342,313|148,939|
491,252|
|**Fund balances at 31**|||||||||
|**December 2023**|||345,264.90|148,939|494,203.90|335,122|148,939|
484,061|
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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## **KETTERING MUSLIM ASSOCIATION**
## **BALANCE SHEET**
## **AS AT 31 DECEMBER 2023**
**2023 2022 Notes £ £ £ £ Fixed assets** Tangible assets 7 472,867 473,341 **Current assets** Cash at bank and in hand 21,336.87 29,901.50 **Creditors: amounts falling due within one year** 8 (1,223.23) (430) Net current assets 20,113.61 29,471.50 **Total assets less current liabilities 492,980.70** 502,812.50 **Income funds** Restricted funds 148,939 148,939 Unrestricted funds 344,041.70 353,873.50 494,203.90 502,812.50
The financial statements were approved by the Trustees on
## **Mr M Farooq**
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## **KETTERING MUSLIM ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 Accounting policies**
## **Charity information**
These financial statements for the year ended 31 December 2019 are the first financial statements of Kettering Muslim Association prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2018. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Kettering Muslim Association'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)". The Kettering Muslim Association is a Public Benefit Entity as defined by FRS 102.
The Kettering Muslim Association 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 Kettering Muslim Association. 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 Kettering Muslim Association 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 Kettering Muslim Association.
## **1.4 Income**
Income is recognised when the Kettering Muslim Association 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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## **KETTERING MUSLIM ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 Accounting policies (Continued)**
Cash donations are recognised on receipt. Other donations are recognised once the Kettering Muslim Association 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 Kettering Muslim Association 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**
## **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:
## Land and buildings
Fixtures, fittings & equipment 15% reducing balance
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 net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the Kettering Muslim Association 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).
## **1.8 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.
## **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.
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## **KETTERING MUSLIM ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 Accounting policies (Continued)**
## **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 Kettering Muslim Association’s contractual obligations expire or are discharged or cancelled.
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Kettering Muslim Association is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the Kettering Muslim Association’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 Donations and legacies**
||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||funds|funds||funds|funds||
||2023|2023|2023|2022|2022|2022|
||£|£|£|
£|£|£|
|Donations and gifts|39,704|2,633|37,071|51,668|3,226|54,894|
|Other|6,077|-|6,077|7,288|-|7,288|
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## **KETTERING MUSLIM ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 DECEMBER 2023**
|**4 Charitable activities**||||||||||
|---|---|---|---|---|---|---|---|---|---|
|||**Charity paid Charitable**|||**Total**|**Charity paid Charitable**|||**Total**|
||||**Expenditure**|||**Expenditure**||||
||||**Heading 6**|||**Heading 6**||||
|||**2023**|**2023**||**2023**|**2022**|**2022**||**2022**|
||**£**||**£**|**£**||**£**|**£**|**£**||
|Staff costs||-|27,750||27,750|-|
27,679||27,679|
|Depreciation and||||||||||
|impairment||-|403||403|-|
557||557|
|Direct cost||1,402|-||1,402|214|
-||214|
|Zakat & training||2,633|-||2,633|3,226|-||3,226|
|Rates||612|-||612|530|-||530|
|Insurance||1,158.64|-||-|821|-||821|
|Light and heat||3,412|-||3,412|2,003|-||2,003|
|Repairs and maintenance||891|-||891|13,077|-||13,077|
|Water||830|-||830|374|-||374|
|Postage and stationery||1,100|-||1,100|256|-||256|
|Legal fee||-|-||-|-|
-||-|
|Governance cost||-|-||-|-|
-||-|
|Sundry cost||139|-||139|120|-||120|
|||11,018|28,153||39,171|20,621|
28,237||48,858|
|Share of support costs||||||||||
|(see note )||14,776|-||14,776|16,235|
-||16,235|
|||25,794|28,153||53,947|36,657|
28,237||65,094|
|**Analysis by fund**||||||||||
|Unrestricted funds||23,160.89|28,153||51,313.86|
33,630|
28,237||61,867|
|Restricted funds||2,633.15|-||2,633.15|3,226|-||3226|
|||25,794.04|28,153||53,947.01|36,657|
28,237||65,094|
## **5 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration during the year,
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## **KETTERING MUSLIM ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **6 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|The average monthly number of employees during the year was:||||
|---|---|---|---|
|||**2023**|**2022**|
|||**Number**|**Number**|
|employee||3|
3|
|**Employment costs**||**2023**|**2022**|
|||**£**|**£**|
|Wages and salaries||27,750|
27,679|
|Other pension costs||-|
-|
|||27,750|
27,679|
|There were no employees whose annual remuneration was £60,000 or more.||||
|**7 Tangible fixed assets**||||
||**Land and**|**Fixtures,**|**Total**|
||**buildings**|**fittings &**||
|||**equipment**||
||**£**|**£**|**£**|
|**Cost**||||
|At 1 January 2023|470,182.14|3,159.01|473,341.15|
|Additions||||
|At 31 December 2023|470,182.14|2,685.16|472,867.30|
|**Depreciation and impairment**||||
|At 1 January 2023|-|10,638.44|10,164.59|
|Depreciation charged in the year|-|
402.,77|402.,77|
|At 31 December 2023|-|
11,041.22|11,041.22|
|**Carrying amount**||||
|At 31 December 2023|470,182.14|2,685.16|472,867.30|
|At 31 December 2022|470,182.14|3,159.01|473,341.15|
|**8 Creditors: amounts falling due within one year**||||
|||**2023**|**2022**|
|||**£**|**£**|
|Other taxation and social security||-|110|
|Trade creditors||-|320|
|Other creditors||1,223.23|-|
|||1,223.23|430|
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## **KETTERING MUSLIM ASSOCIATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **9 Analysis of net assets between funds**
|**9 Analysis of net assets**|**between funds**|||||
|---|---|---|---|---|---|
||**Unrestricted**|**Restricted Total Unrestricted**||**Restricted**|**Total**|
||**funds**|**funds**|**funds**|**funds**||
||**2023**|**2023 2023**|**2022**|**2022**|**2022**|
||**£ £**|**£ £**|**£**||**£**|
|Fund balances at 31||||||
|December 2023 are||||||
|represented by:||||||
|Tangible assets|472,867.30|
- 472,867.30|473,341|-|473,341|
|Current assets/||||||
|(liabilities)|21,336.87|
21,336.87|29,901.50||29,901.50|
||494,204.17|
494,204.17|503,242.50||503,242.50|
## **10 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
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