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2022-12-31-accounts

BANGLADESH WELFARE SOCIETY OF BARNET (BWSB) Trustees’ report and

Financial statements

For the year ended 31 December 2022

The rear of 18 Brookhill Road East Barnet EN4 8SD Registered charity no: 1111008 Company reg no: 05314510

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 2022.

Board of Trustees

Anhar Miah Badrul Islam (Chairman) Belal Ahmed Chowdhury Gousul Bari Chowdhury Haji Abdul Gaffar Jamal Miah Kalam Matin Mohammad Fozlul Hoque Mohammed Nurul Islam Mohammed Fozor Ali Mohammed Ochi Miah Ruhul Amin 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 are 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 agrees 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.

membership and finance which meet more regularly.

Achievements and Performance:

For the last 3 years, BWSB has offered 5 daily prayer services, weekly Jummah prayers, Taraweh during Ramadan, Eid prayer. In 2022, we started our Maktab, after school classes for children. The Maktab has been well received by parents and children. Due to space, we have to limit the numbers which we hope to increase in the future.

Planning permission to knock down existing building and build a purpose built Mosque has been granted and contracts have been signed with the council. Discussions have begun with relevant experts to get planning conditions discharged before works can begin.

Future charitable activities

Over the last three years, Barnet Islamic Centre has become a regular place of worship for the local Muslim community. The ever-growing demand for more activities requires a huge investment to achieve our targets.

All the planned activities rest upon the completion of the new building. Our main target over the next few years is to raise approximately £2 million to knock down the existing building and build a purpose built Mosque which will cater for the growing demand of various community activities and needs.

The board of trustees consists of fourteen members to administrate the Charity. The board meets quarterly and there is a subcommittee covering development,

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.

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:

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 2011 and 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.

Risk Management

The Board of Trustees has a risk management strategy which comprises:

The main risks identified by the Board of Trustees this year include:

Page 3 of 13

date with developments and ensuring that BWSB remains compliant with requirements.

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.

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. 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 and reporting progress at trustees' meetings.

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 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 checks.

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.

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
11%
89%
Donation Rent
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Income

The charity’s total income for the year was £179k (2021: £329k), a reduction of 45% compared to the previous financial year. The Charity received a rental income of £20k from its property investment.

Three years’ income trend (£000)

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20 20 20 21 20 22
470.49
328.60
179.48
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Expenditure

Our total expenditure for the year ended 31 December 2022 was £57k (2021: £67k). The expenditure on the charitable objective was £52k (2021: £48.4k). The fundraising expenditure for the financial year was £5k (2021: £18.9k)

----- Start of picture text -----
How our money spent
9%
91%
Fundraising Charitable activities
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Page 5 of 13

Net a$sfrts The balance sheel for the charity shows a balance of net assets of £909k, compared lo £786k in the previous year. representing an increase of £122k in the working capital and reserve5. The accounts of the Charity were approved by the Board of Trustees on 15 August 2023 Flnanclal rlsk The Board of Trustees has the overall responsibility for ensuring the Charity has an appropriate system of controls, financial and Othe￿iSe, across the entire organisation in order to provide reasonable assurance that.. Its assets are safeguarded against unaulhorised use or disposition, Proper records are maintained and that financial information is reliable, The Charity complies with relevant laws and regulations. Badrul Islam Chaiman Tofozzul Miah Trustee Tangible fixed assets The Charity purchased a property during the year for investment purpose. Investment pollcy The Investment Policy of the Charity is to invest its surplus funds in properties that will generate income for the Charity. The profil generated frorn investment properties is ulilized for charitable purposes. Belal Ahmed Chowdhury Company Secretary Reserve policy The Trustees recognise the need to hold sufficient reserves to allow protection of core activities in the event of any income shortfalls to implement long-temi strategic programmes and enable BWSB to carry out its essential projects. The reserve policy ensures, as far as possible, the suslainability of charitable activities across various wtors. Pago 6 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 2022.

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:

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: 15 August 2023

Page 7 of 13

STATEMENT OF

FINANCIAL ACTIVITIES

For the year ended 31 December 2022

Unrestricted Unrestricted Restricted Total Total
Funds Funds 2022 2021
Notes £ £ £ £
INCOME
Voluntary income:
Donations 2 159,078 - 159,078 308,204
Rent income 20,400 - 20,400 20,400
TOTAL INCOME 179,478 - 179,478 328,604
EXPENDITURE
Costs of raising funds:
Fundraising cost 5,028 - 5,028 18,938
Expenditure on charitable activities:
Programme expenditure 51,977 - 51,977 48,390
TOTAL EXPENDITURE 3 57,005 - 57,005 67,328
Net income/(expenditure) and net
movement in funds for the year 122,473 - 122,473 261,276
Reconciliation of funds:
Total Funds brought forward 7 786,693 - 786,693 525,417
Total funds carried forward 909,166 - 909,166 786,693

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

BALANCE SHEET As at 31 December 2022 Notes 2022 2021 Flx•d assets Tangible assets Investments 903,070 912,380 903,070 912.380 Current assets Deblors Cash al bank and In hand 60.000 99,312 106,095 106.095 159.312 Credltor•- amounts f811ing due wlthin one year {99,9991 1284.9991 Total as89ts le88 ¢urrenl Ilabllltlgs Credltors.. amounts falling due after more than one year Not a•8at8 909,166 786,693 909,166 786.693 Tho funds of the charlty: Unrestrfcted Income funds General fund Restrlcted Income funds 909,166 786.693 Tolal charlty funds 909.166 786,693 For the year ending 31 December 2022, the charity was enlltle(J to exemptlon from audit under section 477 of thè Companle8 Act 2006 relatlng to small companles. Directors. responsibilities.. *Th6 members have not required the company to obtaln an audit of its financial ststemenls for the year in questlon In a￿ordanCe with section 476., •The directors acknovledge thelr responslblllll8s for complying with the requirements of the Act wth respect to accL)unting records and the preparation of financial slatemenls. These financial ststements have been prepared in accordance with the provisions appllcable to companies suble¢t to the small o)mpanies' regime. These financial statements w8re approved by the board of trustees and aulhoris8d for issue on 15 Augusl 2023, and Bre signed on beh81f of the board by.. Badrul18lam Chalrm8n Belal Ahmed Chowdhury Company Secretary Pagegof13

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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 measure reliably, in which case the value is derived from the cost to the donor or the estimated resale

Page 10 of 13

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.

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

• 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 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

Page 11 of 13

Unrestricted
Funds
2
Donations
£
General Donation
159,078
Membership fees
-
159,078
3
Analysis of expenditure on charitable activities
Direct
costs
£
Cost of generating funds
3,366
Charitable activities
Prayer Service and other
34,799
activities
Total Charitable activities
34,799
Total expenditure
38,165
3.1
Analysis of support costs
Support costs
Finance and IT costs
Office Expenses
Governance costs
4
Tangible fixed assets
Freehold
Building
Cost
£
At 1 Jan 2021
931,000
Additions
-
Release
-
As at 31 Dec 2021
931,000
Depreciation
At 1 Jan 2021
18,620
Charge for the year
9,310
Release
-
As at 31 Dec 2021
27,930
Net book values
At 31 Dec 2021
903,070
NBV at 31 Dec 2020
912,380		 Restricted
Total
Funds
2022
£
£
-
159,078
-
-
-
159,078
2022
Support
Total
costs
costs
£
£
1,662
5,028
17,178
51,977
17,178
51,977
18,840
57,005
2022
£
-
11,727
7,113
18,840
Building
Furniture
renovation & Equipment
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2022
£
159,078
-		 Total
2021
£
308,204
-
159,078 308,204
2022
Total
costs
£
5,028
51,977		 2021
Total
costs
£
18,938
48,390
51,977 48,390
57,005 67,328
2022
£
-
11,727
7,113		 2021
£
38
9,894
1,113
11,045
Total
£
-
-
-		 £
931,000
-
-
- 931,000
-
-
-		 18,620
9,310
-
- 27,930
- 903,070
- 912,380

Page 12 of 13

5 Debtors 2022 2021
£ £
Loan given to other Charities - 60,000
- 60,000
6 Creditors: amounts falling due within one year 2022 2021
£ £
Qurd Hasana Loan 97,500 282,500
Other creditors 2,499 2,499
99,999 284,999
7 Movement of funds
As at Incoming Resources As at
01 Jan 22 Resources Expended 31 Dec 22
Unrestricted funds £ £ £ £
General fund 786,693 179,478 (57,005) 909,166
Total unrestricted funds 786,693 179,478 (57,005) 909,166
Restricted funds
Total unrestricted funds - - - -
TOTAL 786,693 179,478 (57,005) 909,166

8 The charity did not collect any new Qarz Hasana (loan) and refundsed £185,000 to eleven individuals during the financial year. The outstanding balance of loan as at 31.12.2022 was £97,500

Page 13 of 13