**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. 

- The BMHC is a centre for all communities - Muslim and non-Muslim 

- We strive to provide a welcoming environment for all and work in partnership for the common good. 

- In focusing on Muslim heritage, we mean Muslim history, people and contribution to human civilization. 

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: 

- Programmes to benefit wider community. New programmes will be introduced for those wishing to gain an understanding of Islam. Short courses will be introduced for people wishing to enhance their knowledge  about Islam and Muslim culture in general. 

- The marquee continues to be a useful revenue stream to help the organisation to carry out its charitable activities and after the completion of refurbished area we are now able to generate some funds through providing housing facility for homeless people through a charity. These funds will be used for the community welfare projects and running expenses of the charity. 

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 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

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: 

- there is no relevant audit information of which the charitable company's auditors are unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## **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: 

- give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting  Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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: 

- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

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: 

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

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


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


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


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


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



Page 15 

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**BRITISH MUSLIM HERITAGE CENTRE** 

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


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


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**BRITISH MUSLIM HERITAGE CENTRE** 

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

## **6. Charitable activities costs** 

|Charitable activity<br>**7.**<br>**Direct costs of charitable activities**<br>Staff costs<br>Rates and water<br>Insurance<br>Light and heat<br>Telephone and computer costs<br>Postage and stationery<br>Sundries<br>Faith and worship<br>Events, exhibitions and festivals<br>Repairs and maintenance<br>Security costs<br>Travelling costs<br>Accountancy charges<br>Auditors' remuneration<br>Legal and professional fees<br>Bank charges<br>Depreciation<br>**8.**<br>**Net income/(expenditure)**<br>Net income/(expenditure) is stated after charging/(crediting):<br>Depreciation - owned assets<br>Auditors' remuneration|**Direct**<br>**Costs (see**<br>**note 7)**<br>**£**<br>657,511<br>**2020**<br>**2019**<br>**£**<br>**£**<br>302,919<br>294,267<br>28,625<br>11,766<br>33,799<br>29,462<br>52,456<br>31,642<br>14,305<br>9,123<br>2,703<br>4,698<br>8,327<br>1,610<br>13,331<br>41,479<br>55,385<br>129,117<br>32,168<br>31,362<br>8,735<br>10,184<br>3,693<br>3,035<br>1,112<br>1,045<br>5,460<br>5,460<br>21,317<br>6,200<br>3,356<br>3,552<br>69,820<br>85,548<br>657,511<br>699,550<br>**2020**<br>**2019**<br>**£**<br>**£**<br>69,820<br>85,548<br>5,460<br>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<br>Social security costs<br>Other pension costs<br>The average monthly number of employees during the year was as follows:<br>Administration and support|**2020**<br>**£**<br>295,793<br>12,550<br>3,143<br>311,486<br>**2020**<br>13|**2019**<br>**£**<br>243,873<br>47,990<br>7,354<br>299,217<br>**2019**<br>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**<br>At 1 January 2020<br>Additions<br>At 31 December 2020<br>**Depreciation**<br>At 1 January 2020<br>Charge for year<br>At 31 December 2020<br>**Net book value**<br>At 31 December 2020<br>At 31 December 2019|**Freehold**<br>**land and**<br>**building**<br>**£**<br>4,305,958<br>-<br>4,305,958<br>166,617<br>11,119<br>177,736<br>4,128,222<br>4,139,341|**Renovations**<br>**Furniture**<br>**Fixtures**<br>**in**<br>**and**<br>**and**<br>**progress**<br>**equipments**<br>**fittings**<br>**£**<br>**£**<br>**£**<br>6,692,751<br>223,545<br>390,079<br>435,197<br>2,700<br>47,403<br>7,127,948<br>226,245<br>437,482<br>-<br>195,289<br>249,090<br>-<br>12,174<br>46,527<br>-<br>207,463<br>295,617<br>7,127,948<br>18,782<br>141,865<br>6,692,751<br>28,256<br>140,989|**Totals**<br>**£**<br>11,612,333<br>485,300<br>12,097,633<br>610,996<br>69,820<br>680,816<br>11,416,817<br>11,001,337|
|---|---|---|---|



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**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 -----**<br>
||||
|---|---|---|
|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 -----**<br>


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 -----**<br>
||||
|---|---|---|
|2020|2019|
|£|£|
|Amounts falling due within one year on demand:|
|Other loans|424,736|243,236|

**----- End of picture text -----**<br>


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



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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 - continued** 

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

|**Unrestricted funds**<br>Unrestricted donations<br>**Restricted funds**<br>Restricted donations<br>**TOTAL FUNDS**|**Incoming**<br>**resources**<br>**£**<br>552,180<br>1,977,684<br>2,529,864|**Resources**<br>**expended**<br>**£**<br>(738,393)<br>-<br>(738,393)|**Movement**<br>**in funds**<br>**£**<br>(186,213)<br>1,977,684<br>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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**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 -----**<br>
2020 2019<br>£ £<br>Income and endowments<br>Donations and legacies<br>Donations  179,697 294,160<br>Grants  118,702 1,977,684<br>Other Income  10,433 50,229<br>308,832 2,322,073<br>Other trading activities<br>Shop income  368 3,204<br>Charitable activities<br>Income from hire of facilities  665,978 182,955<br>Income from admission charges and<br>programmes  7,071 21,632<br>673,049 204,587<br>Total incoming resources  982,249 2,529,864<br>Expenditure<br>Raising donations and legacies<br>Wages  8,567 4,950<br>Rates and water  - 2,941<br>-<br>Light and heat  7,910<br>-<br>Telephone and computer  2,281<br>Bank charges  - 627<br>Advertising, printing and postage  850 2,996<br>Travelling costs  - 536<br>-<br>Legal and professional fees  7,744<br>9,417 29,985<br>Other trading activities<br>Bad debts  94,139 -<br>Loan Write Off  227,180 -<br>-<br>321,319<br>Charitable activities<br>Wages  287,226 238,923<br>Social security  12,550 47,990<br>Pensions  3,143 7,354<br>Rates and water  28,625 11,766<br>Insurance  33,799 29,462<br>Light and heat  52,456 31,642<br>Carried forward  417,799 367,137<br>**----- End of picture text -----**<br>


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


This page does not form part of the statutory financial statements 

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