MAKKI MASJID
ACCOUNTS FOR THE YEAR ENDED
31 MARCH 2024
Registered Charity No: 1119384
Ferguson & Co Chartered Certified Accountants 651 Mauldeth Road West Chorlton
Manchester M21 7SA
MAKKI MASJID
TABLE OF CONTENTS
| Page | |
|---|---|
| 1 | Trustees and Professional Advisors |
| 2-3 | Trustees Report |
| 4 | Statement of Trustees' responsiblities |
| for the accounts | |
| 5 | Independent Review |
| 6 | Statement of financial activities |
| 7 | Balance Sheet |
| 8-13 | Notes to the accounts |
MAKKI MASJID
Page 1
TRUSTEES AND PROFESSIONAL ADVISORS
TRUSTEES: Mr. Farroukh Zaheer (Chair) Mr. Rabnawaz Akbar (Secretary) Mr. Javid Iqbal Mr. Mohammed Ashraf Mr. Aman Ullah Sheikh MAIN OFFICE: 125 Beresford Road Longsight Manchester M13 0TA BANKERS: National Westminster Bank Plc 821 Stockport Road Levenshulme Manchester M19 3PL Al Rayan Bank Edgbaston House 3 Duchess Place Hagley Road Birmingham B16 8NH ACCOUNTANTS: Ferguson & Co Charterted Certified Accountants 651 Mauldeth Road West Chorlton Manchester M21 7SA
MAKKI MASJID TRUSTEES REPORT FOR THE YEAR ENDED 31 MAR 2024
Page 2
The Trustees present their report and financial statements of the charity for the year ended 31 Mar 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and 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 published (FRS 102) (effective 1 January 2015).
STATUS
Makki Masjid is a registered charity under the charity number 1119384. It has no taxable activities and
therefore not liable to UK taxation. It is, however, unable to reclaim VAT on expenditure incurred.
Trustees
The trustees of the charity, under the trust deed, are known as Board members with voting rights. They have no beneficial interest in the charity. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts. The trustees undertake a skills audit to identify gaps in Board experiences and new trustees are appointed on a 3-year term to fill these gaps. There is an induction and training plan in place for all trustees to strengthen their role in strategic planning. Trustees are also able to access the organisational training plan and attend any that they feel would be beneficial to their role and/or understanding.
Recruitment and Appointment of Trustees
The Trustees of the charity are known as members of the Management Committee. Under the requirements of the deed, members of the Management Committee shall hold office until the end of Annual General Meeting next following their election appointment or co-option and shall be eligible for re-election or re-cooption.
Trustee Induction and Training
New trustees are recruited following all recruitment process and a successful induction.
All new trustees are given an induction when they start which gives them up to date information on our services, finances, funding streams, organisational policies and procedures, code of conduct and training on our quality assurance standards. Training is provided for the management committee on roles and responsibilities of a trustee and other relevant training identified to assist and support the work of the trustees.
Achievement & Performance
The centre provides the services of a mosque in the south of Manchester. Facilities of the centre are open to the public all day. It caters for the five daily prayers, the after school children’s' madrassa and other community needs for the Muslims of the area, for example, marriage ceremonies, wedding and other celebrations and funeral prayers.
MAKKI MASJID
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TRUSTEES REPORT FOR THE YEAR ENDED 31 MAR 2024 (CONTINUED)
There are times during the course of the year when the centre is busier than normal. These occasions are listed below:
(a) Friday
Friday is the holiest day of the week for Muslims and special prayers are offered around early afternoon on this day.
(b) Ramadhan
The month of Ramadhan is the period when members of the Muslim community are fasting during the day. The normal prayers are attended by above average numbers and special prayers are offered in the evenings. Food and light refreshments are provided for the attendees in the evening every night of Ramadhan. During the last ten days of Ramadhan the centre is open 24 hours of the day.
(c) Eids
The Eid festival is celebrated twice every year by the Muslim community and once again the centre plays its full role in serving the need of the community. The first Eid is celebrated at the end of Ramadhan to mark the passing of the holy month and the second one is held approximately two and half months later to celebrate the end of the annual pilgrimage to Mecca, the Hajj.
Financial Review
In the year to 31 Mar 2024 the charity had a total income of £372,830 (£496,219 - 2023) and total expenditure of £205,709 (£148,412 - 2023). This resulted in a net surplus for the year of £167,121 (£547,807 - 2023). During this period the charity have used funds collected in the current period to maintain activity levels. At the end of the financial year unrestricted reserves stood at £3,265,118 (£3,098,067 - 2023).
Investment powers and policy
The cash balance held in unrestricted reserves at 31 Mar 2024 was £51,825 (£47,769 - 2023). The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately 6 months of unrestricted charitable expenditure.
The Trustees consider, having regard to the budget for the next twelve months, that the charity is a going concern.
Risk Management
The trustees have conducted a review of the major risks to which the charity is exposed and systems have been established to mitigate those risks.
Plans for Future Periods and highlights of building project:
In January 2016, Manchester City Council approved some amendments which were made to our building plans. The news was well received by the Trust and community alike who were overjoyed that work could finally begin on the new project. Site work commenced in the Summer of 2016 with the groundworks and progressed well such that by the end of March 2021, the buidling is now water-tight. The next phase of the build is to start on the internal works such as the electrical and mechanical works followed by the internal finishes and external groundworks and landscaping.
MAKKI MASJID
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TRUSTEES REPORT FOR THE YEAR ENDED 31 MAR 2024 (CONTINUED)
Trustees responsibilities in relation to the financial statements
The charity trustees are responsible for preparing the annual report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Practice).
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 accounts, the Trustees are required to;
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1 Select suitable accounting principles and then apply them consistently; 2 Observe the methods and principles in the applicable Charities SORP;
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3 Make judgements and estimates that are reasonable and prudent;
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4 State whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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5 Prepare the financial statements on a going concern basis unless it is appropriate the presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accurate 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, the applicable Charities (Accounts and Reports) Regulations, and the provision of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detention of fraud and other irregularities.
Approved by the trustees and signed on their behalf by;
.................. Mr Farroukh Zaheer Chair of the Trustees
Date:
MAKKI MASJID
Page 6
Statement of Financial Activities
For the year ended 31 March 2024
| Notes INCOMING RESOURCES INCOME FOR THE YEAR 6 LESS: RESOURCES EXPENDED Cost of generating funds Expenditure on charitable activites 6 Governance costs 6 Support costs 6 TOTAL RESOURCES EXPENDED NET INCOME FOR THE YEAR BALANCE BROUGHT FORWARD BALANCE CARRIED FORWARD |
£ £ £ £ Restricted General Restricted General 372,830 496,219 - 372,830 - 496,219 189,402 134,152 2,971 2,451 13,336 11,809 - 205,709 - 148,412 167,121 347,807 3,098,067 2,750,260 - 3,265,188 - 3,098,067 2024 2023 |
|---|---|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
The notes on pages 8 to 13 form part of these accounts.
Page 7
MAKKI MASJID
BALANCE SHEET
At 31st March 2024
| Notes 2024 £ FIXED ASSETS Tangible Assets 3 3,683,363 CURRENT ASSETS Debtors 4 40,000 Cash at bank and in hand 51,825 91,825 CREDITORS: AMOUNTS FALLING DUE 5 WITHIN ONE YEAR Creditors 510,000 510,000 NET CURRENT ASSETS (418,175) TOTAL ASSETS LESS CURRENT LIABILITIES 3,265,188 ACCUMULATED FUNDS Unrestricted funds brought forward 7 3,098,067 Unrestricted reserves for current year 7 167,121 3,265,188 - |
2023 £ 3,292,198 0 47,769 47,769 241,900 241,900 (194,131) 3,098,067 2,750,260 347,807 3,098,067 |
|---|---|
We approve these accounts and confirm that we have made available all the information and explanations for their preparation.
Trustee Trustee MR FARROUKH ZAHEER MR RABNAWAZ AKBAR
Date :
The notes on pages 8 to 13 form part of these accounts.
MAKKI MASJID NOTES TO THE ACCOUNTS For the year ended 31 March 2024
Page 8
1. ACCOUNTING POLICIES
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of accounting
The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Charities Act 2011.
Preparation of the accounts on a going concern basis
The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
Income recognition
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees annual report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
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MAKKI MASJID NOTES TO THE ACCOUNTS (CONTINUED) For the year ended 31 March 2024
Current asset investments
The charity holds no investments
Taxation
The charity is exempt from corporation tax on its charitable activities
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Expenditure on charitable activites includes the costs undertaken to further the process of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s programmes and activities.
Operating leases
Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.
Tangible fixed assets
Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
Fixtures & Equipment 25% on cost Computers & Equipment 25% on cost Play Equipment 25% on cost
MAKKI MASJID
Page 10
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and at hand
The charity’s cash at bank and in hand includes the availability of funds as at 31[st] March 2024.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Pensions
Employees of the charity have been auto enrolled onto a pension scheme to which the charity contributes.
2.STAFF COSTS
| 2024 | 2023 | |
|---|---|---|
| Staff salaries, E'er NIC & Pension | 53,601 | 54,576 |
| The average number of | ||
| employee during the | ||
| year were; | **Number ** | Number |
| Administration | 4 | 4 |
| Volunteers | 5 | 5 |
MAKKI MASJID
Page 11
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
3. TANGIBLE FIXED ASSETS
| COST At 1 April 2023 Additions At 31 March 2024 NET BOOK VALUE At 31 March 2024 At 1 April 2023 4.DEBTORS There are no debtors Other debtors 5.CREDITORS Interest free community loans |
Other Land & TOTAL Equipment Building £ £ £ 1,452 3,290,746 3,292,198 - 391,165 391,165 1,452 3,681,911 3,683,363 1,452 3,681,911 3,683,363 1,452 3,290,746 3,292,198 2024 2023 £ £ - - 40,000 40,000 - 2024 2023 £ £ 510,000 241,900 510,000 241,900 |
|---|---|
Makki Masjid
Page 12
NOTES TO THE ACCOUNTS
For the year ended 31 March 2024
6. ANALYSIS OF INCOME AND EXPENDITURE
| Income Donations & Legacies(Friday collections) Donations for expansion plan Fitrana, Sadaka and others Icome from Charitable activities Madrisa fee Expenditure on charitable activities; Heat& lights Cost on fundraising Repairs and Renewals Fitrana, sadaka and other donations Ummrah travel Telephone Wages & Salaries and Pension Governance Costs; Accountancy & Payroll Bank and worldpay charges Support Costs; Printing & Stationery Sundry Expenses Security Hygiene supplies Insurance Professional & consultancy NET INCOME FUNDS BROUGHT FORWARD FUNDS CARRIED FORWARD |
General Restr- Total icted 84,384 - 84,384 247,822 - 247,822 21,004 - 21,004 19,620 - 19,620 372,830 - 372,830 37,182 - 37,182 143 - 143 6,448 - 6,448 22,897 - 22,897 68,570 - 68,570 561 - 561 53,601 - 53,601 189,402 - 189,402 - - 2,971 2,971 2,971 - 2,971 1,690 - 1,690 9,622 - 9,622 - - - - - - 1,260 - 1,260 764 - 764 13,336 - 13,336 167,121 - 167,121 3,098,066 - 3,098,066 3,265,187 - 3,265,187 31 March 2024 |
General 71,334 399,800 8,405 16,680 496,219 9,690 1,220 216 7,924 59,782 744 54,576 134,152 357 2,094 2,451 2,895 1,914 2,073 1,630 1,187 2,110 11,809 347,807 2,750,259 3,098,066 31 |
Restr- Total icted - 71,334 - 399,800 - 8,405 - 16,680 - 496,219 - 9,690 - 1,220 - 216 - 7,924 - 59,782 - 744 - 54,576 - 134,152 357 2,094 - 2,451 - 2,895 - 1,914 - 2,073 - 1,630 - 1,187 - 2,110 - 11,809 - 347,807 - 2,750,259 - 3,098,066 March 2023 |
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Makki Masjid
Page 13
NOTES TO THE ACCOUNTS
For the year ended 31 March 2024
7. ACCUMULATED FUNDS
| GENERAL RESTRICTED FUNDS FUNDS £ £ Balance at 31 March 2023 3,098,066 - Net income 167,121 - Balance at 31 March 2023 3,265,188 - |
TOTAL £ 3,098,066 167,121 3,265,188 |
|---|---|
8. CONTROLLING PARTY
Charity in under the share control of Trustees named on page 1 of the accounts.
9. RELATED PARTY TRANSACTION
There has been no transaction with the trustess during the year in any form. (2023 nil)