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2021-03-31-accounts

CHARITY REGISTRATION NUMBER: 1111447

Sri Lanka Muslim Association UK Unaudited Financial Statements 31 March 2021

MERIDIAN INSIGHT

Accountants & Statutory Auditors Unit 15A, Slough Business Park 94 Farnham Road Slough Berkshire SL1 3FQ

Sri Lanka Muslim Association UK

Financial Statements

Year ended 31 March 2021

Pages
Trustees' annual report 1-4
Independent examiner's report to the trustees 5
Statement of financial activities 6
Statement of financial position 7
Notes to the financial statements 8-14
The following pages do not form part of the financial statements
Detailed statement of financial activities 15-17

Sri Lanka Muslim Association UK

Trustees' Annual Report

Year ended 31 March 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Sri Lanka Muslim Association UK

Registered charity name Charity registration number 1111447 Principal office Al-Jannah Masjid 1 Stoke Road Slough Berkshire SL2 5AH

The trustees

Mr Anees Mohammed Mr Abdul Sathar Mr Hakeel Mohamed Mr Mohammed Sakkaf Mr Nazeer Marzook Mr Rizwan Rameez Mr Abdul Hameed Anverdeen Mr Mohamed Abdullah Ameen Mr Mohamed Janufar Bathurusaman Mr Mohamed Thasrif Jainudeen Mr Ahmed Hamjath Mohamed Aneef Mr Mohamed Akram Abdul Azeez Mr Mohamed Aasir Mohamed Akram Mr Mohamed Uzair Mohamed Omerdeen

Independent examiner Bilal Amin ACA, FCCA Unit 15A, Slough Business Park 94 Farnham Road Slough Berkshire SL1 3FQ

Structure, governance and management

Document

The charity is constituted as a charitable trust registered with the Charity Commission under charity number 1111447 and is governed by a trust deed.

Organisational Structure

The trustees are fully responsible for the management of the assets of the trust, mainly the Mosque at the above address namely Masjid Al-Jannah: Islamic Educational & community Centre and give their time free of charge and receive no remuneration or other financial benefits.

The trustees have regular meetings, and all the trustees are responsible for all decisions taken in relation to the running of the Mosque and the Centre and the other activities provided by the charity.

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Sri Lanka Muslim Association UK

Trustees' Annual Report

Year ended 31 March 2021

Recruitment and Appointment of Trustees

These procedures are followed according to the trust deed. Also, by agreed procedures with views and reflection of the community to have a better relationship with the Members and the local community.

Risk Management

The trustees have assessed the risks the charity faces and have identified the major risks areas and have drawn contingency plans to deal with those risks. The trustees are satisfied that systems are in place, or arrangements are in hand, to manage the risks that have been identified. In particular, policies are in place, insurance cover is up to date and finances of the Community Center/Mosque are kept under review.

Objectives and activities

We have referred to the guidance contained in the Charity Commission's general guidance when reviewing our aims and objectives and in planning our future activities. The objectives of the charity are set out in the charity's trust deed and are summarised as follows:

  1. To promote the benefits of the Sri Lankan Muslim residents in Slough and surrounding area, in particular, by the provision of an advice service.

  2. To promote a racial harmony and better and mutual understanding.

  3. Providing advance educational services including Islamic culture and religious studies, the safeguarding and maintenance of health, and relief of poverty, distress and sickness of Sri Lankan Muslim Community in Slough and surrounding area.

  4. Establishing and developing a community advisory service for the individual or group counselling, and practical advice on circumcision, akeeka, marriage, divorce, and other advice.

  5. Provide or assist in the provision of facilities for recreation or leisure-time activities, so as to develop physical, mental, spiritual capabilities that they may grow to full maturity as individual and members of just society.

  6. Provide a place for religious and cultural activities and to conduct educational classes for children or alternatively to establish, administer and maintain Islamic religious school, centres and other places of worship and learning.

  7. Print, publish and circulate news bulletins, periodicals, books and other literary works.

  8. Conduct special English language classes to improve and promote literacy.

  9. Make necessary burial arrangements for Muslim funerals according to Islamic Sharia.

  10. Encourage unity, discipline, and faith.

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Sri Lanka Muslim Association UK

Trustees' Annual Report (continued)

Year ended 31 March 2021

To Achieve the Above Objectives

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Sri Lanka Muslim Association UK

Trustees' Annual Report (continued)

Year ended 31 March 2021

Financial review

Reserves Policy

The trustees have reviewed the reserves of the charity. Their policy is to hold enough funds to meet the operating costs of the charity mainly the running cost of the Islamic Centre/Mosque.

Principal Funding Sources

The charity's main source of income is donations gathered at Fridays, Special appeals, Festive prayers and small amount of membership fee. The charity also receives interest free loans from individuals, called Qarz-e-Hasana, which are repayable on demand, to fund their capital projects.

Plans for future periods

The trustees are working to construct a third floor in the building which will increase the capacity of the Masjid. Necessary planning permission from the Slough Borough Council has been approved. The trustees are working to complete this project as soon as possible.

The trustees' annual report was approved on 7 January 2022 and signed on behalf of the board of trustees by:


Uzair Omerdeen General Secretary

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Sri Lanka Muslim Association UK

Independent Examiner's Report to the Trustees of Sri Lanka Muslim Association UK

Year ended 31 March 2021

I report to the trustees on my examination of the financial statements of Sri Lanka Muslim Association UK ('the charity') for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.


Bilal Amin ACA, FCCA Independent Examiner

Unit 15A, Slough Business Park 94 Farnham Road Slough Berkshire SL1 3FQ

7 January 2022

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Sri Lanka Muslim Association UK

Statement of Financial Activities

Year ended 31 March 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and other activities 4 149,124 3,985 153,109 265,715
Charitable activities 5 27,688 27,688 74,408
Investment income 6 19 19 45
-------------------------------- ----------------------- -------------------------------- --------------------------------
Total income 176,831 3,985 180,816 340,168
================================ ======================= ================================ ================================
Expenditure
Expenditure on charitable activities 7 49,874 49,874 67,779
Governance costs 8 131,717 _ 131,717 177,082
-------------------------------- ----------------------- -------------------------------- --------------------------------
Total expenditure 181,591 181,591 244,861
================================ ======================= ================================ ================================
-------------------------------- ----------------------- -------------------------------- --------------------------------
Net (expenditure)/income and net
movement in funds (4,760) 3,985 (775) 95,307
================================ ======================= ================================ ================================
Reconciliation of funds
Total funds brought forward 1,114,788 11,010 1,125,798 1,030,491
----------------------------------------- ---------------------------- ----------------------------------------- -----------------------------------------
Total funds carried forward 1,110,028 14,995 1,125,023 1,125,798
========================================= ============================ ========================================= =========================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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Sri Lanka Muslim Association UK

Notes to the Financial Statements

Year ended 31 March 2021

2021 2020
Note £ £
Fixed assets
Tangible fixed assets 13 920,886 922,962
Current assets
Debtors 14 65,000 65,000
Cash at bank and in hand 172,443 198,536
-------------------------------- --------------------------------
237,443 263,536
Creditors: amounts falling due within one year 15 3,806 31,200
-------------------------------- --------------------------------
Net current assets 233,637 232,336
----------------------------------------- -----------------------------------------
Total assets less current liabilities 1,154,523 1,155,298
Creditors: amounts falling due after more than one year 16 29,500 29,500
----------------------------------------- -----------------------------------------
Net assets 1,125,023 1,125,798
========================================= =========================================
Funds of the charity
Restricted funds 14,995 11,010
Unrestricted funds 1,110,028 1,114,788
----------------------------------------- -----------------------------------------
Total charity funds 18 1,125,023
=========================================
1,125,798
=========================================

These financial statements were approved by the board of trustees and authorised for issue on 7 January 2022, and are signed on behalf of the board by:

________ Hamjath Aneef President

________

Uzair Omerdeen Secretary

________ Akram Azeez Treasurer

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Sri Lanka Muslim Association UK

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Al-Jannah Masjid, 1 Stoke Road, Slough, Berkshire, SL2 5AH.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

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.

Going concern

There are no material uncertainties about the charity's ability to continue.

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 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 sub-classes: restricted income funds or endowment funds.

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

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:

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:

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.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery

15% reducing balance

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Donations and other activities

Donations and other activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
General donations 14,203 14,203
Fitrah collections 1,535 1,535
Friday collections 47,995 47,995
Card collections 43,002 43,002
Janaza donations 3,985 3,985
Ifthar donations
Makthab/Hafiz collections 12,914 12,914
Sadaqah collections 4,579 4,579
Standing order collections and membership fees 16,946 16,946
Till collections
Zakah collections 3,141 3,141
Miscellaneous income 289 289
Gifts
HMRC - Gift Aid 4,520 4,520
-------------------------------- ----------------------- --------------------------------
149,124 3,985 153,109
================================ ======================= ================================

Unrestricted Restricted Total Funds

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

Funds Funds 2020
£ £ £
Donations
General donations 24,921 24,921
Fitrah collections 14,877 14,877
Friday collections 63,732 63,732
Card collections 51,536 51,536
Janaza donations 11,010 11,010
Ifthar donations 32,132 32,132
Makthab/Hafiz collections 14,620 14,620
Sadaqah collections 2,618 2,618
Standing order collections and membership fees 21,051 21,051
Till collections 24,025 24,025
Zakah collections 5,193 5,193
Miscellaneous income
Gifts
HMRC - Gift Aid
-------------------------------- ---------------------------- --------------------------------
254,705 11,010 265,715
================================ ============================ ================================
5. Charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Building project donations 460 460 27,005 27,005
Project collections 27,228 27,228 47,403 47,403
---------------------------- ---------------------------- ---------------------------- ----------------------------
27,688 27,688 74,408 74,408
============================ ============================ ============================ ============================
6. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest receivable 19 19 45 45
============== ============== ============== ==============

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

7. Expenditure on charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Charitable expenses – other charities 1,595 1,595 5,275 5,275
Fitrah distributions 2,100 2,100 14,877 14,877
Projects spending 46,179 46,179 47,627 47,627
-------------------------------- -------------------------------- -------------------------------- --------------------------------
49,874 49,874 67,779 67,779
--------------------------------
--------------------------
--------------------------------
--------------------------
--------------------------------
--------------------------
================================ ================================ ================================ ================================
8. Expenditure on governance
Support Total funds Total fund
costs 2021 2020
£ £ £
Governance costs 131,717 131,717 177,082
-------------------------------- -------------------------------- --------------------------------
131,717 131,717 177,082
================================ ================================ ================================
9. Net (expenditure)/income
Net (expenditure)/income is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 4,501 4,868
======================= =======================
10. Independent examination fees
2021 2020
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 360
============== ==============
11. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2021 2020
£ £
Wages and salaries 68,990 58,689
Employer’s pension and social security costs - 4,911
Staff training and welfare 1,074 1,140
-------------------------------- --------------------------------
119,938 135,379
================================ ================================

The average head count of employees during the year was 12 (2020: 10).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

12. Trustee remuneration and expenses

No remuneration has been paid to the trustees. All trustees are volunteers and rendered their services free of charge.

13. Tangible fixed assets

13. Tangible fixed assets
Freehold Plant and
property machinery Total
£ £ £
Cost
At 1 April 2020 895,377 58,087 953,464
Additions 2,426 2,426
-------------------------------- ---------------------------- --------------------------------
At 31 March 2021 895,377 60,513 955,890
================================ ============================ ================================
Depreciation
At 1 April 2020 30,503 30,503
Charge for the year 4,501 4,501
-------------------------------- ---------------------------- --------------------------------
At 31 March 2021 35,004 35,004
================================ ============================ ================================
Carrying amount
At 31 March 2021 895,377 25,509 920,886
================================ ============================ ================================
At 31 March 2020 895,377 27,584 922,961
================================ ============================ ================================
14. Debtors
2021 2020
£ £
Other debtors 65,000 65,000
============================ ============================
15. Creditors: amounts falling due within one year
2021 2020
£ £
Accruals 360 29,997
Social security and other taxes 3,446 1,203
----------------------- ----------------------------
3,806 31,200
======================= ============================
16. Creditors: amounts falling due after more than one year
2021 2020
£ £
Sundry loans – Qarz-e-Hasna 29,500 29,500
============================ ============================

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Sri Lanka Muslim Association UK

Notes to the Financial Statements (continued)

Year ended 31 March 2021

17. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At
At 31 March 20
1 April 2020 Income Expenditure 21
£ £ £ £
General funds 1,114,788 176,831 (181,591)
1,110,028
========================================= ================================ ================================ =========================================
At
At 31 March 20
1 April 2019 Income Expenditure 20
£ £ £ £
General funds 1,030,491 329,160 (244,863)
1,114,788
========================================= ================================ ================================ =========================================
Restricted funds
At
At 31 March 20
1 April 2020 Income Expenditure 21
£ £ £ £
Restricted Fund – Janaza funds 11,010 3,985 14,995
============================ ======================= ============== ============================
At
At 31 March 20
1 April 2019 Income Expenditure 20
£ £ £ £
Restricted Fund 1 – Janaza funds 11,010 11,010
============== ============================ ============== ============================
18. Analysis of net assets between funds
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 920,886 920,886
Current assets 222,449 14,994 237,443
Creditors less than 1 year (3,806) (3,806)
Creditors greater than 1 year (29,500) (29,500)
----------------------------------------- ---------------------------- -----------------------------------------
Net assets 1,110,029 14,994 1,125,023
========================================= ============================ =========================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 922,962 922,962
Current assets 252,526 11,010 263,536
Creditors less than 1 year (31,200) (31,200)
Creditors greater than 1 year (29,500) (29,500)
----------------------------------------- ---------------------------- -----------------------------------------
Net assets 1,114,788 11,010 1,125,798
========================================= ============================ =========================================

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Sri Lanka Muslim Association UK

Management Information

Year ended 31 March 2021

The following pages do not form part of the financial statements.

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Sri Lanka Muslim Association UK

Detailed Statement of Financial Activities

Year ended 31 March 2021

2021 2020
£ £
Income
Donations and other activities
General donations 14,203 24,921
Fitrah collections 1,535 14,877
Friday collections 47,995 63,732
Card collections 43,002 51,536
Janaza donations 3,985 11,010
Ifthar donations 32,132
Makthab/Hafiz collections 12,914 14,620
Sadaqah collections 4,579 2,618
Standing order collections and membership fees 16,946 21,051
Till collections 24,025
Zakah collections 3,141 5,193
Miscellaneous income 289
HMRC - Gift Aid 4,520
-------------------------------- --------------------------------
153,109 265,715
-------------------------------- --------------------------------
Charitable activities
Building project donations 460 27,005
Project collections 27,228 47,403
---------------------------- ----------------------------
27,688 74,408
---------------------------- ----------------------------
Investment income
Bank interest receivable 19 45
-------------- --------------
-------------------------------- --------------------------------
Total income 180,816 340,168
================================ ================================

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Sri Lanka Muslim Association UK

Detailed Statement of Financial Activities (continued)

Year ended 31 March 2021

2021 2020
£ £
Expenditure
Expenditure on charitable activities and governance
Charitable expenses – other charities 1,595 5,275
Fitrah distributions 2,100 14,877
Projects spending 46,179 47,627
Wages and salaries 68,990 58,689
Employer's pension and social security costs - 4,911
Staff training and welfare 1,074 1,140
Youth program 2,860
Religious education/Sermons, visiting Imam expenses 7,251 7,480
Bank and merchant charges 2,657 2,831
Rates and water 9,943 10,540
Light and heat 13,652 15,571
Repairs and maintenance 5,942 6,677
Telephone and internet 618 702
Printing, postage and stationery 471 934
General expenses 43 100
Cleaning 226 1,350
Caretaker costs 7,100 5,670
Accountancy, legal and professional fees 8,268 4,559
Insurance - 2,222
Eid and ifthar expenses 110 42,898
Janaza expenses 2,960
Homeless feeding costs 429 120
Depreciation 4,502 4,868
Software and other IT costs 441
-------------------------------- --------------------------------
Total expenditure 181,591 244,861
================================ ================================
-------------------------------- --------------------------------
Net (expenditure)/income (775) 95,307
================================ ================================

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