## BANGLADESH WELFARE SOCIETY OF BARNET (BWSB) Trustees’ report and Financial statements
For the year ended 31 December 2020
The rear of 18 Brookhill Road East Barnet EN4 8SD Registered charity no: 1111008
## CONTENT
||Page|
|---|---|
|Legal and Administrative Information|1|
|About BWSB|2|
|Structure: Governance and Management|3|
|Financial Review|5|
|Independent Examiner’s Report to the||
|Board of Trustees of BWSB|7|
|Statement of Financial Activities|8|
|Balance sheet|9|
|Notes to the financial statements|10|
## LEGAL AND ADMINISTRATIVE INFORMATION
## **Status**
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2020.
## **Board of Trustees**
Anhar Miah Badrul Islam (Chairman) Belal Ahmed Chowdhury Gousul Bari Chowdhury Haji Abdul Gaffar Jamal Miah Kalam Matin Mohammad Fozlul Hoque (appointed on 12 July 2020) Mohammed Nurul Islam Mohammed Fozor Ali (appointed on 12 July 2020) Mohammed Ochi Miah (appointed on 12 July 2020) Ruhul Amin (appointed on 12 July 2020) Siraj Uddin Tofozzul Miah
## **Company secretary**
Belal Ahmed Chowdhury
**Registered charity number: 1111008 Company registration number: 05314510**
## **Registered Office**
The rear of 18 Brookhill Road East Barnet EN4 8SD
## **Independent Examiner**
Alamgir Hossain, ACCA
## **Accountant**
Charity Finance and Accounting 64 Gale Street Essex RM9 4PA
## **Bankers**
Barclays Bank UK Plc Whetstone Branch London N20 0PB
Page 1 of 13
## ABOUT BWSB
## **Our Objectives**
Our objectives are to promote the Bangladeshi Cultural Heritage; to encourage the celebration of special events such as the Independence Day of Bangladesh; to encourage ethnic minorities to socialise in their spare time; to provide services to teach English to those with limited ability; to provide help to the elderly in the community; to help integration between all societies in the community; to promote female independence; to promote voluntary work in the local community and to advance education, particularly among persons of Bangladeshi origin; to provide knowledge of Religious Education and literacy of Bengali language.
## **Our mission**
We envision a society where Bengali heritage and culture is actively promoted and appreciated.
## **What we do**
We seek to meet the needs of the ever-growing Muslim community in Barnet by providing and facilitating good practice in faith, community development & educational services.
## **Organisation**
Bangladesh Welfare Society of Barnet Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 16th December 2004. It is registered as a charity with Charity Commission. Anyone over the age of 18 and is a resident or working in the London Borough of Barnet and agree to pay an annual subscription of £20.00 par annum can become a member of the company and there are currently twenty-one members, each of whom agrees to contribute £10 in the event of the charity winding up.
The board of trustees consists of fourteen members to administrate the Charity. The board meets quarterly and there is subcommittee covering development,
membership and finance which meet more regularly.
## **Achievements and Performance:**
In May 2020, BWSB purchased a meeting hall with three-bedroom property adjacent to the site in East Barnet to serve the local community.
BWSB run a massive campaign to raise funds to purchase this property including a live TV campaign on Channel S and more importantly through JustGiving page.
This includes providing prayer, social and cultural activities for ever-growing Bangladeshi and other Muslim communities in Barnet.
The 3 bedroom property is currently rented out and generating income for the day to day running of Barnet Islamic Centre.
The Charity is offering 5 daily prayer services in the new location and has facilitated two Eid prayers to date.
The ever-growing community of Barnet has immensely benefited from our service.
## **Future charitable activities**
Since this new operation was purchased has happened and the center currently experiences an oversubscription for Friday prayers as we observe full capacity for 2 Jumma Prayers on Friday and the demand is continuing to grow.
Therefore, the charity is planning to submit an extension plan of the
existing meeting hall which will accommodate activities for children, cultural/religious classes and female prayer facilities.
Page 2 of 13
## STRUCTURE: GOVERNANCE AND MANAGEMENT
## **Governing document**
Bangladesh Welfare Society of Barnet Limited is a company limited by guarantee governed by its Memorandum and Articles of Association dated 16th December 2004. It is registered as a charity with Charity Commission under charity number 1111008.
## **Organisational structure**
The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefits from the Charity.
The Board meets quarterly to review the organisation’s progress and strategy and maintain financial oversight. As a small organisation, there is a strong level of involvement of the Board in supporting BWSB’s growth and development ranging from fundraising support to drafting policies and representing the organisation at external events.
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011and the provisions of the trust deed. 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.
The trustees for the purposes of charity law who served during the year and up to the date of this report are set out on page 1.
## **Trustees Responsibility Statement**
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK GAAP).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
## **Risk Management**
The Board of Trustees has a risk management strategy which comprises:
- A quarterly review of the risks the charity may face.
- The establishment of systems and procedures to mitigate those risks identified.
- The implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
The main risks identified by the Board of Trustees in this year include:
- The reputational risk of working with other organisations or individuals which
Page 3 of 13
may affect our credibility amongst our diverse range of stakeholders.
- Changes to the law on charities and campaigning. The Board is staying up to date with developments and ensuring that BWSB remains compliant with requirements.
This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act. Initially, new trustees work with an existing trustee assisting on particular activities and projects run by the charity. After satisfactory feedback from existing trustees, they are then given the task of leading a particular activity or project, reporting progress at trustees' meetings.
## **Recruitment and appointment of trustees**
The existing trustees are responsible for the recruitment of new trustees but in so doing the trustees seek the views and recommendations of both elders and community leaders. The trustees believe this approach ensures that new trustees are respected members of the local communities and ensures that good relations are fostered between the organisation and the people of the local community that we serve.
In selecting new trustees, we seek to identify people who regularly attend events and functions organised by the charity and are willing to volunteer to help in our broader community work. Potential trustees are invited to attend trustees' meetings as observers and are given more details of the charity's aims and activities and, if all agree, they are then proposed as new trustees at the subsequent trustees' meeting. This process allows due consideration of the person's eligibility, personal competence, specialist knowledge and skills.
## **Volunteers recruiting procedure**
BWSB’s work would not be possible without the large numbers of volunteers who get involved in the day-to-day office activities as well as supporting at events and other activities. Volunteers are an important resource in both our faith and community work. Volunteers are involved in most of our faith and community. We encourage all members of our foundation to be involved in voluntary activities and to share their skills with others. All those volunteers working with projects involving children or other vulnerable groups are subject to CRB check.
## **Public benefit**
The Board of Trustees confirms that they abide by the Charity Commission’s general guidance on public benefit complying with Section 4 of the Charities Act 2011 to have due regard to public benefit in pursuance of its objectives and activities.
## **Induction and training of trustees**
Following the appointment, new trustees are introduced to their new role and given copies of the trust deed and a guide to the policies and procedures adopted by our charity. Several publications from the Charity Commission are also provided including the guidance on charities and public benefit and the advancement of religion for the public benefit.
Page 4 of 13
## FINANCIAL REVIEW
The financial statements have been prepared in accordance with the accounting policies set out on page 10 of the attached Financial Statements and comply with applicable laws and requirements of the ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ (SORP) issued by the Charity Commission.
The trustees have identified no material uncertainties that may cast doubt on the ability of the charity to continue as a going concern.
**----- Start of picture text -----**
Income 2%
0%
98%
Donation Rent Membership fees
**----- End of picture text -----**
## **Income**
Charity’s total income for the year was £470k (2019: £17k), a significant increase due to an appeal to the community to secure a property for the Charity. Also, the Charity received a rental income of £8.5k from its investment in property.
**Three years’ income trend (£000)**
**----- Start of picture text -----**
2 0 1 8 2 0 1 9 2 0 2 0
470.49
11.88 16.99
**----- End of picture text -----**
## **Expenditure**
Our total expenditure for the year ended 31 December 2020 was £34,903 (2019: £4,751). The expenditure on the charitable objective was £11,718 (2019: £4,511). The fundraising expenditure to secure the property was £23,185
**----- Start of picture text -----**
How our money spent
34%
66%
Fundraising Charitable activities
**----- End of picture text -----**
Page 5 of 13
Net assets
The balance sheet for the charity shows a
balance of nel assels £525k, cornpared lo
£89.8k in Ihe previous year. repTesenling an
increase of £436k in the working capital and
reserves.
The accounls of the Charity was approved by the
Board of Trustees on 23 Seplembei 2021
Financial risk
The Board ol Truslees has the overall
responsibility for ensuring Ihe Charity has an
appropriate system ol controls. financial and
otherwise, across the enlire organisalion in
order lo provide reasonable assurance Ihal..
Ils assets are safeguarded against
unaulhorised use or disposition.
Proper records are mainlained and Ihal
financial information is reliable,
The Charity complies with relevant laws
and regulations.
Badrul Islam
Chairman
Tolozzul Miah
Truslee
Tangible flxed assets
The Charity purchased a property during the
year for investment purpose.
Investment policy
The Investment Policy of the Charity is lo invest
its surplus funds in properties that will generate
income for the Charity. The profil generaleg
from investment properties are ulilized in the
charitable purpose.
Belal Ahmed Chowdhury
Company Secretary
Reserrfe pollcy
The Trustèes recognise the need to hold
sufficient reserves to allow protection of coro
activities in the event of any income shortfalls lo
implement long-lerm strategic programmes and
enable BWSB to carry out its essential projects.
The reserve policy ensures, as far as possible,
the suslainabilily of charitable activities across
various sectors.
Page6 0113
## INDEPENDENT EXAMINER’S REPORT TO THE BOARD OF TRUSTEES OF BWSB
## **Independent examiner's report to the trustees of Bangladesh Welfare Society of Barnet Limited ('the Company')**
and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
## **Respective responsibilities of Trustees and Examiner**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
## **It is my responsibility to:**
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
## **Basis of independent examiner’s report**
My examination was carried out in accordance with general Directions given by the Charity Commission.
An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, no opinion is given as to whether the accounts present a ‘true and fair view’
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached
Alamgir Hossain, ACCA Charity Finance and Accounting London
Date: 23 September 2021
Page 7 of 13
## STATEMENT OF FINANCIAL ACTIVITIES **For the year ended 31 December 2020**
|**Notes**
**INCOME**
_Voluntary income:_
Donations
2
Rent income
**TOTAL INCOME**
**EXPENDITURE**
**Costs of raising funds:**
Fundraising cost
**Expenditure on charitable activities:**
Programme expenditure
**TOTAL EXPENDITURE**
3
**Net income/(expenditure) and net**
**movement in funds for the year**
**Reconciliation of funds:**
Transfers between funds
6
Total Funds brought forward
6
**Total funds carried forward**|**Unrestricted**
**Funds**
£
461,987
8,500
**470,487**
23,185
11,718
**34,903**
**435,584**
-
89,833
**525,417**|**Restricted**
**Funds**
£
-
-
**-**
-
-
**-**
**-**
-
-
**-**|**Total**
**2020**
**£**
**461,987**
**8,500**
**470,487**
**23,185**
**11,718**
**34,903**
**435,584**
**-**
**89,833**
**525,417**|Total
2019
£
16,989
-|
|---|---|---|---|---|
|||||16,989|
|||||240
4,511|
|||||4,751|
|||||12,238
-
77,595|
|||||89,833|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Page 8 of 13
BALANCF SHEET
As at 31 December 2020
2020
2019
Not•s
Flxed a$set5
Tangible a$5ets
921,690
921.690
Cvrr•nt assets
Cash ai bank and In hand
118.728
92.332
118.726
92.332
Credltors amunts la11ing (Ju8 wthin oThe y•ar
1514.9991
12.4991
Totsl ass91$ 1•88 eurrent Ilabllltl•s
52S,417
89.633
Credltor•'. amoun¢s lal11rng due after more than orn8 yo8r
52S.417
69,833
Th? fvnds ol the charlty:
Unrestricted Income funds
-Genaral fund
.Design8t8d fund
Restncted IncMe funds
1396,2731
921.690
89.833
Total ch•rlty lund8
525,417
89.833
For the year ending 31 December 2020, the eharily was enlilled lo exemption from audit under section 477 of the
Companies Act 2006 relating lo small companies.
Directors, responsibiliues..
Tho membgTS have not requirgd the company lo obtaln an audit of ils financial slalements for the year in
question in accordance with section 476,.
The directors acknowledge their responsibilities for complying with the fequlremenls of the Act with respect
lo accounting records and the preparation of financial slalemenls.
These financial slalements have been prepared in a¢Gordance with the provisions applicable to companies subject
lo the small companies, regime.
These financial slalements were approved by the board of Iruslees and authorised for Issue on 23 September
2021, and are signed on behalf of the board by..
8adrul Islam
Chairman
Belal Ahmed Chowdhury
Company Secretary
Page90113
## NOTES TO THE FINANCIAL STATEMENTS **For the year ended 31 December 2020**
## **1 Accounting policies**
## **a) Basis of accounting**
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 2015)', 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.
## **b) Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **c) Going concern**
There are no material uncertainties about the charity's ability to continue.
## **d) Disclosure exemptions**
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.
## **e) 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.
**f) Fund accounting** Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two subclasses: restricted income funds or endowment funds.
## **g) Incoming resources**
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
• income from donations or grants is recognised when there is evidence of entitlement to the gift, the receipt is probable and its amount can be measured reliably.
• legacy income is recognised when receipt is probable and entitlement is established.
• income from donated goods is measured at the fair value of the goods unless this is impractical to
Page 10 of 13
measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **h) Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable 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.
the activities they contribute to on a reasonable, justifiable and consistent basis.
**i) Tangible fixed assets and depreciation** Non-programme expenditure of more than £50 per item for buildings, equipment and leasehold improvements is capitalised at cost. Depreciation is provided at rates calculated to write off the cost less
the residual value of each asset over its expected useful life, as follows:
|Leasehold properties|Straight line over|
|---|---|
||the life of the lease|
|Freehold properties|1% straight line|
|Computers and software|25% straight line|
|Fixtures and fittings|10% straight line|
|Office equipment|15% straight line|
|Motor vehicles|15% straight line|
## **j) Taxation**
As a registered charity, BWSB is exempt from taxation of income and gains to the extent these are applied to charitable objectives.
## **k) Limited by guarantee**
The liability of the company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.
• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between
|**2**
**Donations**
General Donation
Membership fees|**Unrestricted**
**Funds**
£
461,987
-
**461,987**|**Restricted**
**Funds**
£
-
-
**-**|**Total**
**2020**
**£**
461,987
-
**461,987**|Total
2019
£
16,577
412|
|---|---|---|---|---|
|||||16,989|
Page 11 of 13
|**3**
**Analysis of expenditure on charitable activities**
Direct
costs
£
**Cost of generating funds**
13,826
**Charitable activities**
Educational and Cultural
6,988
activities
**Total Charitable activities**
6,988
**Total expenditure**
**20,814**
**3.1**
**Analysis of support costs**
**Support costs**
Finance and IT costs
Office Expenses
Governance costs
**3.2**
**Staff cost and number of employees**
The average monthly numbers of
employees in the UK during the year were**:**
Permanent
Temporary
**Employment costs**
Gross Pay
Employer's national insurance|Staff
costs
£
-
-
**-**|Support
costs
£
9,359
4,730
4,730
**14,089**|**2020**
**Total**
**costs**
**£**
**23,185**
**11,718**
**11,718**
**34,903**
**2020**
**£**
**25**
**12,855**
**1,209**
**14,089**
**2020**
**Number**
**-**
**-**
**2019**
**£**
**-**
**-**
**-**|2019
Total
costs
£
240
4,511
4,511
4,751
2019
£
-
350
120
470
2019
Number
-
-|
|---|---|---|---|---|
|||||2018
£
-
-|
|||||-|
No employee earned more than £60,000 during the year (2019: None).
Page 12 of 13
## **4 Tangible fixed assets**
|**4**
**Tangible fixed assets**|||
|---|---|---|
|**Freehold**
**Building**
**Furniture**
**Building**
**renovation**
**&**
**Equipment**
**Cost**
£
£
£
At 1 Jan 2020
-
-
-
Additions
931,000
-
-
Release
-
-
-
As at 31 Dec 2020
**931,000**
**-**
**-**
**Depreciation**
At 1 Jan 2020
-
-
-
Charge for the year
9,310
-
-
Release
-
-
-
As at 31 Dec 2020
**9,310**
**-**
**-**
**Net book values**
**At 31 Dec 2020**
**921,690**
**-**
**-**
**NBV at 31 Dec 2019**
**-**
**-**
**-**
**5**
**Creditors: amounts falling due within one year**
**2020**
**£**
Qurd Hasana Loan
**512,500**
Other creditors
**2,499**
**514,999**
**6**
**Movement of funds**
**As at**
**Incoming**
**Resources**
**01 Jan 20**
**Resources**
**Expended**
**Transfers**
**Unrestricted funds**
**£**
**£**
**£**
**£**
General fund
89,833
470,487
(34,903)
(921,690)
Designated fund (Fixed assets)
-
-
-
921,690
**Total unrestricted funds**
**89,833**
**470,487**
**(34,903)**
**-**
**Restricted funds**
**Total unrestricted funds**
**-**
**-**
**-**
**-**
**TOTAL**
**89,833**
**470,487**
**(34,903)**
**-**||**Total**|
|||£
-
931,000
-|
|||**931,000**|
|||-
9,310
-|
|||**9,310**|
|||**921,690**|
|||**-**|
|||2019
£
-
2,499|
|||2,499|
|||**Asat**
**31Dec20**
**£**
(396,273)
921,690|
|||**525,417**|
|||**-**|
|||**525,417**|
**6** The charity collected £889,500 as Qarz Hasana (loan) from the community during the financial year to purchase a property for investment purpose. The charity refunds £377,000 loan during the year. Therefore, the outstanding balance of loan as at 31.12.2020 was £512,500
Page 13 of 13