## **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**
**Page 3**
## **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**
**Page 4**
**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;
- 1 Select suitable accounting principles and then apply them consistently; 2 Observe the methods and principles in the applicable Charities SORP;
- 3 Make judgements and estimates that are reasonable and prudent;
- 4 State whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
- 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.
**Page 9**
## **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**|
|---|---|---|---|
**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)