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2020-12-31-accounts

REGISTERED COMPANY NUMBER: 04779177 (England and Wales) REGISTERED CHARITY NUMBER: 1110104

BRITISH MUSLIM HERITAGE CENTRE (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Riley Moss Audit LLP (Statutory Auditor) Riley House 183-185 North Road Preston Lancashire PR1 1YQ

BRITISH MUSLIM HERITAGE CENTRE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 22
Detailed Statement of Financial Activities 23 to 24

BRITISH MUSLIM HERITAGE CENTRE REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees Mr N Mahmood OBE
Dr H A Almajed
Dr M Sarumi
Mr M S Al-Astewani
Dr G M O Al Kuwari (resigned 9.3.20)
Mrs S Alvi
Mr S Thameembasha
Dr H M Algammas
Dr M Abdelrahman
Mr N U Hassan (resigned 8.5.20)
Dr A M Almajid
Mr F Zaheer
Dr A Al Matouq
Mr A A O Kawooya
Mr A A R Saif
Dr A Al Dubayan
Mr E M Chohan
Company secretary Mr F Zaheer
Registered office British Muslim Heritage Centre
College Road
Whalley Range
Manchester
M16 8BP
Registered company number 04779177 (England and Wales)
Registered charity number 1110104
Auditors Riley Moss Audit LLP (Statutory Auditor)
Riley House
183-185 North Road
Preston
Lancashire
PR1 1YQ
Patrons Lord Kamlesh Kumar Patel, Baron Patel of
Bradford, OBE
Lord Mohamed Iltaf Sheikh, Baron Sheikh
Lord-Lieutenant of Greater Manchester
Sir Warren J. Smith
Mohammed Afzal Khan MP
Bankers The Royal Bank of Scotland
467 Wilmslow Road
Withington
Manchester
M20 9AP

Page 1

BRITISH MUSLIM HERITAGE CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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

Our objectives

The BMHC has developed aims and objectives that are set out below and reflect the ethos of the Centre. In terms of setting, reviewing and planning the BMHC's future activities, the Trustees have also considered the Charity Commission's general guidance on Public Benefit. Since its inception, BMHC has striven to live up to the values by being a place for all communities, providing a welcoming environment and working in partnership for the common good.

The vision of the British Muslim Heritage Centre is one of a trusting relationship between Muslims and the rest of society based on shared understanding and shared values.

Our mission is to achieve this through the development of collaborative and pioneering initiatives that promote and celebrates Muslim heritage and culture and making it accessible to all.

Page 2

BRITISH MUSLIM HERITAGE CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Strategic report Achievement and performance

Supporting Activities

Supporting charitable organisations with similar aims and values provides better coordination of work. This ultimately is an effective way of supporting each other and the most vulnerable on a one-to-one basis and at an organisational level. We were pleased to respond to a number of charities who requested the British Muslim Heritage Centre to bring organisations together. The main reason for this was to ensure mutual support, share the learning, and to further enhance our services to Greater Manchester's vulnerable communities.

Tackling health inequalities has been one of our major programmes this year due to Covid-19, and before Covid-19, this was one of the significant areas of work identified by the Muslim community. Dr Tariq Chauhan chairs the British Muslim Heritage Centre tackling Health Inequalities programmes. The pandemic highlighted the inequalities faced by the Muslim and other minority groups, and it became more evident that urgent work was required. To tackle this, we continued to progress on the programme from 2019 to date. We are pleased to report that we have extended the programme in several strands: diabetes, stroke, mental health and inequalities due to Covid-19; this also includes the Impact of Racism on Health and Wellbeing.

Diabetes Engagement Project and Muslim Community Diabetes Project:

During this year we started these two major projects to support the community during this testing time. We had been helping the community throughout this period via Webinar and Zoom meetings.

The Tameside tackling health inequalities pilot project is another partnership project with Tameside CCG and Haughton Thornley Medical Centres, Thornley.

Leadership Programmes Aspiring and future leaders this year we continued this programme via Zoom meetings and webinars. This programme is for young participants aged between 14 to 18.

Supporting the Greater Manchester Interfaith Group - We helped the recruitment of two locality engagement leads for the support of greater Manchester Health and social Care.

The National Muslim Service of Commemoration 2020 . It was a pleasure for the British Muslim Heritage Centre to be invited to speak on such a special occasion and be part of the National Muslim Service of Commemoration, which took place on Wednesday 4th November 2020. Sadly, this year, we were unable to deliver a physical event due to the pandemic. However, we will be able to deliver a safe virtual event via a Zoom Webinar.

Islam Awareness November 2020 - We were pleased to take part in the Islam awareness month. This was an opportunity to promote a better understanding of issues affecting the Muslim community regionally, nationally and worldwide. We were able to work with our Patron and member of Parliament Afzal Khan and the Greater Manchester Muslim Jewish Forum.

Heritage Media - This year we have set up Heritage TV which is fully functional now on U-tube. We have started to upload podcasts and videos which are accessible for all communities.

Renovation - The Renovation of the building is completed by the grace of God during this year and we were able to accommodate homeless during this period of pandemic when government asked to provide the shelter to homeless. We started this good cause in collaboration with the Manchester City Council initially. After July 2020, another charity has taken over this project of housing of homeless.

British Muslim Heritage Centre has played its role as a community organisation during these testing times.

Page 3

BRITISH MUSLIM HERITAGE CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Strategic report Financial review

Financial Position

Full details of income and expenditure for the year are set out in the Statement of Financial Activities on page 11.

Donations remain the main source of funds while some revenue has been generated from letting parts of the building. The total unrestricted donations received for this financial year £278,833 (2019 £294,159). The organisation continues to improve income generation to support its increasing activities.

Risk management

The trustees actively review the major risks which the charity faces on a regular basis and confirm that they have established systems to mitigate the significant risks.

Investment power

The Board of Trustees is authorised under the Memorandum and Articles of Association to make and hold investments using the general funds of the Charity. However, no such investments are presently held.

Reserves policy

The financial position is regularly reviewed by the trustees to ensure effective financial governance. This includes monitoring of the cash and bank balances by the trustees. BMHC has continued to invest significant sums into refurbishment and rebuilding its grade II* listed building. The building is central to the fulfilment of our vision. The refurbishment and rebuilding process has been a priority investment focus.

Given the scale of the rebuilding and refurbishment project and its continuous demand on funds, it is not possible to maintain reserves. Despite that, the trustees remain confident that given the strength of BMHC's balance sheet, with a combined value of £ 10,406,956 of net assets, a dependable network of donors sympathetic to BMHC's vision, and the introduction of new revenue streams, there is no need to build up a reserve. The trustees are confident the organisation will continue to be able to meet with its obligations as they fall due.

Future plans

We aim to build on the success of our various programmes and ventures introduced recently. The following are the highlights of our future plans:

Page 4

BRITISH MUSLIM HERITAGE CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

British Muslim Heritage Centre (BMHC, thereafter) was incorporated as a Limited company, company number 4779177, on 28 May 2003 as Manchester Muslim Heritage Centre. It was granted charitable status under Charities Act on 20 June 2005, (registration number 1110104). The charity's name was changed to British Muslim Heritage Centre on 31 August 2005.

BMHC is governed by a Memorandum and Articles of Association (amended by special resolutions). There are no specific restrictions imposed on how the Charity should operate to achieve its objective. However, the income and assets of the Charity must be applied solely for the purpose of achieving its objectives.

The Board of Trustees comprises members from diverse backgrounds. Trustees are selected on the basis of their skills, experience and networks, and the needs of the company. All members of the Board of Trustees work on voluntary basis only and dedicate a considerable amount of time to the Charity's activities.

The power of appointing new Trustees is vested in the Trustees and there are informal procedures in place for the induction and training of new Trustees. Trustees are also encouraged to attend relevant briefings and courses.

The Board of Trustees deals with matters pertaining corporate strategy, key strategic objectives and targets. The Board also deals with major decision making including for the use of financial and other resources and the agreement of budgets for projects and operations. Furthermore, dealing with issues concerning staff appointments and ensuring ongoing viability of the Charity is also undertaken by the Board. The Board has established working groups, which generally comprises between one to two Trustees, advisors, Trust staff and, where appropriate, consultants for each project. Additionally, Trustees are identified as mentors for different aspects of the Trust's activities.

The Chief Executive Officer (CEO), working in conjunction with Trustees, delegates much of the day-to-day running of the organisation to managers, who are the principle advisers to the Board. The managers take part in select Board meetings and, subject to the Board's approval, represent the Trust in meetings conducted outside the Centre. The staff has the authority to implement corporate strategy, make decisions, respond to consultations, allocate resources and commit expenditure in accordance with the strategic, budgetary and policy framework set by the Board. Furthermore, the contribution by a number of volunteers with variety of skills has continued to enhance the image of the organisation. Trustees' expenses during this year totalled £535 (2019 £504). The expenses relate to the travelling and accommodation of the Trustees to promote the BMHC's objectives. The Trustees received no remuneration in respect to their services to the Trust.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Trustees' responsibility statement

The trustees (who are also the directors of British Muslim Heritage Centre for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

Page 5

BRITISH MUSLIM HERITAGE CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees' responsibility statement - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Auditors

The auditors, Riley Moss Audit LLP (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 16 September 2021 and signed on the board's behalf by:

Mr N Mahmood - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MUSLIM HERITAGE CENTRE

Opinion

We have audited the financial statements of British Muslim Heritage Centre (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MUSLIM HERITAGE CENTRE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 the trustees 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH MUSLIM HERITAGE CENTRE

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Farook Patel FCA (Senior Statutory Auditor) for and on behalf of Riley Moss Audit LLP (Statutory Auditor) Riley House 183-185 North Road Preston Lancashire PR1 1YQ

16 September 2021

Page 9

BRITISH MUSLIM HERITAGE CENTRE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Income and endowments from
Donations and legacies 2 278,833 29,999 308,832 2,322,073
Charitable activities 4
-
Charitable activity 673,049 673,049 204,587
Other trading activities 3 368 - 368 3,204
Total 952,250 29,999 982,249 2,529,864
Expenditure on
Raising funds 5 330,736 - 330,736 29,985
Charitable activities 6
Charitable activity 644,595 12,916 657,511 699,550
Other 1,593 - 1,593 8,858
Total 976,924 12,916 989,840 738,393
NET INCOME/(EXPENDITURE) (24,674) 17,083 (7,591) 1,791,471
Reconciliation of funds
Total funds brought forward 10,263,428 151,119 10,414,547 8,623,076
Total funds carried forward 10,238,754 168,202 10,406,956 10,414,547
----- End of picture text -----

Continuing operations

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

BRITISH MUSLIM HERITAGE CENTRE

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
Fixed assets
Tangible assets 12 11,352,515 64,302 11,416,817 11,001,337
Current assets
Debtors 13 44,776 - 44,776 261,908
Cash at bank and in hand 25,751 103,901 129,652 155,755
70,527 103,901 174,428 417,663
Creditors
Amounts falling due within one year 14 (1,184,288) (1) (1,184,289) (1,004,453)
Net current assets (1,113,761) 103,900 (1,009,861) (586,790)
Total assets less current liabilities 10,238,754 168,202 10,406,956 10,414,547
NET ASSETS 10,238,754 168,202 10,406,956 10,414,547
Funds 16
Unrestricted funds 10,238,754 10,263,428
Restricted funds 168,202 151,119
Total funds 10,406,956 10,414,547
----- End of picture text -----

The financial statements were approved by the Board of Trustees and authorised for issue on 16 September 2021 and were signed on its behalf by:

Mr N Mahmood - Trustee

Mr F Zaheer - Trustee

The notes form part of these financial statements

Page 11

BRITISH MUSLIM HERITAGE CENTRE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 277,697 1,253,745
Net cash provided by operating activities 277,697 1,253,745
Cash flows from investing activities
Purchase of tangible fixed assets (485,300) (1,995,251)
Net cash used in investing activities (485,300) (1,995,251)
Cash flows from financing activities
New loans in year 181,500 19,000
Net cash provided by financing activities 181,500 19,000
Change in cash and cash equivalents
in the reporting period (26,103) (722,506)
Cash and cash equivalents at the
beginning of the reporting period 155,755 878,261
Cash and cash equivalents at the end
of the reporting period 129,652 155,755
----- End of picture text -----

The notes form part of these financial statements

Page 12

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
1. Reconciliation of net (expenditure)/income to net cash flow from operating activities
2020 2019
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (7,591) 1,791,471
Adjustments for:
Depreciation charges 69,820 85,548
Decrease/(increase) in debtors 217,132 (7,657)
Decrease in creditors (1,664) (615,617)
Net cash provided by operations 277,697 1,253,745
2. Analysis of changes in net debt
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank and in hand 155,755 (26,103) 129,652
155,755 (26,103) 129,652
Debt
Debts falling due within 1 year (243,236) (181,500) (424,736)
(243,236) (181,500) (424,736)
Total (87,481) (207,603) (295,084)
----- End of picture text -----

The notes form part of these financial statements

Page 13

BRITISH MUSLIM HERITAGE CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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 the restricted grant is recognised when charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.

Income from investments is included in the year in which it is receivable.

Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure 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.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. Support costs include governance costs. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and costs linked to the strategic management of the charity.

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.

Page 14

continued...

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land and building - 2% straight line on buildings only Renovations in progress - No depreciation is charged Furniture and equipments - 33% on reducing balance Fixtures and fittings - 15% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash and bank in hand, trade debtors and other debtors £174,428 (2019: £417,663). Financial liabilities held at amortised cost comprise all creditors except social security and other taxes £1,180,169 (2019: £1,004,212).

2. Donations and legacies

Donations
Grants
Other Income
Grants received, included in the above, are as follows:
Grant		 2020
£
179,697
118,702
10,433
308,832
2020
£
118,702		 2019
£
294,160
1,977,684
50,229
2,322,073
2019
£
1,977,684

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continued...

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
3. Other trading activities
2020 2019
£ £
Shop income 368 3,204
4. Income from charitable activities
2020 2019
Activity £ £
Income from hire of
facilities Charitable activity 665,978 182,955
Income from admission
charges and programmes Charitable activity 7,071 21,632
673,049 204,587
5. Raising funds
Raising donations and legacies
2020 2019
£ £
Staff costs 8,567 4,950
Rates and water - 2,941
-
Light and heat 7,910
-
Telephone and computer 2,281
Bank charges - 627
Advertising, printing and postage 850 2,996
Travelling costs - 536
-
Legal and professional fees 7,744
9,417 29,985
Other trading activities
2020 2019
£ £
Bad debts 94,139 -
Loan Write Off 227,180 -
-
321,319
Aggregate amounts 330,736 29,985
----- End of picture text -----

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continued...

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

6. Charitable activities costs

Charitable activity
7.
Direct costs of charitable activities
Staff costs
Rates and water
Insurance
Light and heat
Telephone and computer costs
Postage and stationery
Sundries
Faith and worship
Events, exhibitions and festivals
Repairs and maintenance
Security costs
Travelling costs
Accountancy charges
Auditors' remuneration
Legal and professional fees
Bank charges
Depreciation
8.
Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Auditors' remuneration		 Direct
Costs (see
note 7)
£
657,511
2020
2019
£
£
302,919
294,267
28,625
11,766
33,799
29,462
52,456
31,642
14,305
9,123
2,703
4,698
8,327
1,610
13,331
41,479
55,385
129,117
32,168
31,362
8,735
10,184
3,693
3,035
1,112
1,045
5,460
5,460
21,317
6,200
3,356
3,552
69,820
85,548
657,511
699,550
2020
2019
£
£
69,820
85,548
5,460
5,460

9. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

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BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

9. Trustees' remuneration and benefits - continued

Trustees' expenses

The charity reimbursed travelling and connected expenses amounting to £535 (2019: £504).

10. Staff costs

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Administration and support		 2020
£
295,793
12,550
3,143
311,486
2020
13		 2019
£
243,873
47,990
7,354
299,217
2019
11

No employees received emoluments in excess of £60,000.

11. Company limited by guarantee

British Muslim Heritage Centre is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £10 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

12. Tangible fixed assets

Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Freehold
land and
building
£
4,305,958
-
4,305,958
166,617
11,119
177,736
4,128,222
4,139,341		 Renovations
Furniture
Fixtures
in
and
and
progress
equipments
fittings
£
£
£
6,692,751
223,545
390,079
435,197
2,700
47,403
7,127,948
226,245
437,482
-
195,289
249,090
-
12,174
46,527
-
207,463
295,617
7,127,948
18,782
141,865
6,692,751
28,256
140,989		 Totals
£
11,612,333
485,300
12,097,633
610,996
69,820
680,816
11,416,817
11,001,337

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continued...

BRITISH MUSLIM HERITAGE CENTRE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

12. Tangible fixed assets - continued

The charity owns the property at College road, Whalley Range, Manchester. In the opinion of the trustees, the cost of professionally valuing the property to include a value in the accounts outweighs the benefits to the users of the accounts. The property is insured for £21 million which is an estimate of their replacement cost. The renovation in progress related to the costs incurred in respect of the renovation of the property.

13. Debtors: amounts falling due within one year

14.

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Trade debtors|29,067|29,527| |Other debtors|15,709|5,431| |Amounts due from connected| |-| |undertakings|226,950| |44,776|261,908| |Creditors: amounts falling due within one year| |2020|2019| |£|£| |Other loans (see note 15)|424,736|243,236| |Trade creditors|87,464|89,007| |Social security and other taxes|4,120|4,241| |Other creditors|662,509|662,509| |Accrued expenses|5,460|5,460| |1,184,289|1,004,453|

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

The following trustees gave personal guarantee for the money borrowed by the trust from Northwold Investments (included in other loans):

  1. Naeem UI Hassan

  2. Abdul Kadir

  3. Salim Estwani

  4. Nasar Mahmood

15. Loans

An analysis of the maturity of loans is given below:

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |£|£| |Amounts falling due within one year on demand:| |Other loans|424,736|243,236|

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

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BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

16. Movement in funds

At 1.1.20
£
Unrestricted funds
Unrestricted donations
10,263,428
Restricted funds
Restricted donations
151,119
TOTAL FUNDS
10,414,547
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
Unrestricted donations
952,250
Restricted funds
Restricted donations
29,999
TOTAL FUNDS
982,249
Comparatives for movement in funds
Net
movement
At 1.1.19
in funds
£
£
Unrestricted funds
Unrestricted donations
8,623,076
(186,213)
Restricted funds
Restricted donations
-
1,977,684
TOTAL FUNDS
8,623,076
1,791,471		 Net
movement
in funds
£
(24,674)
17,083
(7,591)
Resources
expended
£
(976,924)
(12,916)
(989,840)
Transfers
between
funds
£
1,826,565
(1,826,565)
-		 At
31.12.20
£
10,238,754
168,202
10,406,956
Movement
in funds
£
(24,674)
17,083
(7,591)
At
31.12.19
£
10,263,428
151,119
10,414,547

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continued...

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

16. Movement in funds - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted donations
Restricted funds
Restricted donations
TOTAL FUNDS		 Incoming
resources
£
552,180
1,977,684
2,529,864		 Resources
expended
£
(738,393)
-
(738,393)		 Movement
in funds
£
(186,213)
1,977,684
1,791,471

Purposes of Unrestricted Funds:

The trustees are free to use unrestricted funds in accordance with charitable objectives.

Purposes of Restricted Funds:

Restricted fund balance brought forward from the last year represents money received for the renovation of building at College Road, Whalley Range, Manchester.

Further, the charity received £20,000 from Heath Innovation Manchester for Diabetes programme and £10,000 from Greater Manchester and Eastern Cheshire Strategic Clinical Network for preventing the spread of type 2 diabetes. The charity spent almost £13,000 from restricted funds.

17. Pension commitments

The amount recognised in income or expenditure as an expense is relation to defined contribution plan was £3,143 (2019: £7,354).

18. Related party disclosures

As at 31 December 2020, the charity owed £145,170 (2019: £168,170) to trustees and entities connected to the trustees. The loans are interest free, unsecured and payable on demand.

Mr Nasar Mahmood, Mr Farroukh Zaheer and Mrs Saima Alvi, trustees of British Muslim Heritage Centre are directors of BMHC Services Ltd, a company limited by guarantee, incorporated in England and Wales. British Muslim Heritage Centre is the member of BMHC Services Ltd. BMHC Services Ltd operates from the premises owned by British Muslim Heritage Centre and no rent (2019:£nil) was paid during the period. BMHC Services Ltd was set up for furthering the fundraising activities of British Muslim Heritage Centre with all future profits to be donated back to British Muslim Heritage Centre and during the year no donations (2019: £nil) was receivable from BMHC Services Ltd. During the year British Muslim Heritage Centre advanced sum of £nil in aggregate to BMHC services Ltd and at the balance sheet date the amount owed by BMHC Services Ltd to British Muslim Heritage Centre was £nil (2019: £226,950). This balance is interest free and repayable on demand.

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continued...

BRITISH MUSLIM HERITAGE CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

19. Post balance sheet events

Since the year end, the Covid-19 pandemic has caused considerable disruption to the global economy. Notwithstanding that, Covid 19 is deemed to be a non-adjusting post balance sheet event. Having considered the impact of Covid 19 on the Charity, the trustees consider that there are no non-adjusting post balance events that require disclosure in these financial statements as a result of Covid -19.

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BRITISH MUSLIM HERITAGE CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
£ £
Income and endowments
Donations and legacies
Donations 179,697 294,160
Grants 118,702 1,977,684
Other Income 10,433 50,229
308,832 2,322,073
Other trading activities
Shop income 368 3,204
Charitable activities
Income from hire of facilities 665,978 182,955
Income from admission charges and
programmes 7,071 21,632
673,049 204,587
Total incoming resources 982,249 2,529,864
Expenditure
Raising donations and legacies
Wages 8,567 4,950
Rates and water - 2,941
-
Light and heat 7,910
-
Telephone and computer 2,281
Bank charges - 627
Advertising, printing and postage 850 2,996
Travelling costs - 536
-
Legal and professional fees 7,744
9,417 29,985
Other trading activities
Bad debts 94,139 -
Loan Write Off 227,180 -
-
321,319
Charitable activities
Wages 287,226 238,923
Social security 12,550 47,990
Pensions 3,143 7,354
Rates and water 28,625 11,766
Insurance 33,799 29,462
Light and heat 52,456 31,642
Carried forward 417,799 367,137
----- End of picture text -----

This page does not form part of the statutory financial statements

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BRITISH MUSLIM HERITAGE CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
2020 2019
£ £
Charitable activities
Brought forward 417,799 367,137
Telephone and computer costs 14,305 9,123
Postage and stationery 2,703 4,698
Sundries 8,327 1,610
Faith and worship 13,331 41,479
Events, exhibitions and festivals 55,385 129,117
Repairs and maintenance 32,168 31,362
Security costs 8,735 10,184
Travelling costs 3,693 3,035
Accountancy charges 1,112 1,045
Auditors' remuneration 5,460 5,460
Legal and professional fees 21,317 6,200
Bank charges 3,356 3,552
Freehold property 11,119 11,119
Depn of furniture & equipments 12,174 4,986
Fixtures and fittings 46,527 69,443
657,511 699,550
Other
Shop costs 1,593 8,858
Total resources expended 989,840 738,393
Net (expenditure)/income (7,591) 1,791,471
----- End of picture text -----

This page does not form part of the statutory financial statements

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