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2022-05-31-accounts

REGISTERED COMPANY NUMBER: 06240315 (England and Wales) REGISTERED CHARITY NUMBER: 1121772

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 May 2022

for

NOORANI EDUCATION CENTRE

SKM Chartered Accountants Pegasus House 5 Winckley Court Mount Street Preston Lancashire PR1 8BU

NOORANI EDUCATION CENTRE

Contents of the Financial Statements FOR THE YEAR ENDED 31 MAY 2022

Page
Report of the Trustees 1 to 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Notes to the Financial Statements 8 to 13
Detailed Statement of Financial Activities 14

NOORANI EDUCATION CENTRE

Report of the Trustees FOR THE YEAR ENDED 31 MAY 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2022. The trustees have adopted the provisions of 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objects are to promote the teaching of the Islamic Faith in accordance with the laws dictated in the Quran and the Sunnah of the Holy Prophet Mohammed (P.B.U.H) and Hanafi Sunni school of thought and beliefs as expounded by Imam-E-Azam Noman Ben Shabit commonly known as Imam Abu Hanifa and to advance the education of the local community in the Fulwood area and also generally within Preston specifically in the history and culture of Islam and to ensure the provision of religious education for adults and children.

The Charity shall promote the teachings in accordance with its Objects and in particular:

> To establish and promote multi-faith dialogue with other religious communities to develop community cohesion within the relevant locality;

> To assist the relevant community with local issues and youth education;

> To ensure community harmony and to counteract all forms of extremism

Volunteers

Many volunteers give up their time to help out the charity, particularly at the weekends and the evenings to help with improving the school/premises/courts in all areas. We are greatly indebted to these volunteers for their commitment and support.

Page 1

NOORANI EDUCATION CENTRE

Report of the Trustees FOR THE YEAR ENDED 31 MAY 2022

ACHIEVEMENT AND PERFORMANCE Charitable activities

How our activities deliver public benefit

The charity carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities, summarised below, provide benefit to those who educate & worship at our education centre.

Religious Activities

Our Educational centre provides a place for our prayers and worship and for the activities associated with our faith. During the year under review, we offered a range of religious services and activities including:

Prayers: The place of worship within the charities building is open for all daily and Friday prayers. During the week we have over 10 people who regularly attend daily prayers and over 50 who regularly attend Friday prayers.

Festivals: The charity provides facilities in terms of sermons, literature and place of worship on those special occasions.

Civil Marriage and Nikkah: The centre provides Muslim couples with an appropriate location for their both civil marriage and Nikkah (Islamic marriage).

Islamic Awareness: This year we have launched a series of lectures, open to all, to promote Islamic knowledge and awareness.

Inter-faith Dialogue: The charity aims to become an active member of the Faith Communities Forum for the Local area. We use this platform to promote inter-faith dialogue and social cohesion.

Community activities

Our community hall and rooms provide a valuable educational and recreational to all in our local community. A wide variety of activities are organised and take place from our community centre.

Hall and rooms: Our hall and meeting rooms are available for use by local groups and organisations.

Currently we are undertaking the following activities:

FINANCIAL REVIEW

Principal funding sources

The principal funding sources of the charity are currently by way of donations and membership fees. For the short term the charity has used interest free loans from its members and from people in the locality in which the charity operates. It should be noted that this method of financing was undertaken largely due to the fact that "interest bearing loans" are against the core principals of the charity and the faith which the charity is promoting.

Reserves policy

The General fund represents funds arising from past operating results. The trustees are satisfied that the balance of the fund will enable the charity to meet its objectives. The trustees have also examined the requirement to maintain reserves for the on going work of the charity and concluded that the most appropriate level is between 9 to 12 months of operational expenditure.

Page 2

NOORANI EDUCATION CENTRE

Report of the Trustees FOR THE YEAR ENDED 31 MAY 2022

FUTURE PLANS

The charity plans continuing the activities outlined above in the forthcoming years. We also plan to look into further projects which will help us to fulfil our aims and objectives.In the immediate future the charity aims to create further awareness of the educational centre, research more in depth the requirements of the public and provide services to aid a more prosperous and cohesive community.

Due to the demand and awareness provided by the charity it has now out grown its property and space and are now actively looking to procure a larger and more suitable and permanent place to expand its goals and objectives. The next year there will be an active drive to procure such premises so the local and wider community can take full advantage of its facilities and services.

During 2019 the charity has acquired a building which is part of their future plan to develop the organisation and allow increased capacity of numbers of attendees. The 'Withy Trees Hotel' has been acquired and will now be fully developed as a place of worship. It will hold approximately 200 worshippers and will be fully equipped private car park. The charity has acquired it through 'interest free loans' from members of the community and will look to pay them off long term through donations and the selling of the existing building.

The Withy Trees building project has gone slower than anticipated due to building contractor issues. However, a new contractor, WA Construction has been appointed and the Car Park works as well as a lot of the Phase One works have been rectified and are now back on track. Occupancy of the new building is still expected to be 2023.

During the 2 years to 2020, the charity has seen an impact to the centre due to Covid 19. The charity was unable to fund raise door to door and the fall in numbers of attendees had also had an impact on the ability to generate more funds. During the year 2021, the donations improved significantly.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 8th May 2007 and registered as a charity on 3rd December 2007. The Company was established under a Memorandum of Articles which established the objects and powers of the charitable company and is governed under its Articles of Association.

Recruitment and appointment of new trustees

The directors of the company are also charity Trustees for purposes of charity law and under the company's Articles and as stated in the minutes of the first meeting are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee are elected to serve for a period of 12 months after which they must be re-elected at the next Annual General Meeting. At the first Annual General Meeting all the Management Committee members must retire from office unless exceptions are met as stated in the Articles of Association. In subsequent Annual General Meetings at least one third of all Management Committee members must resign as part of the company's rotation scheme. The Management Committee members to retire by rotation shall be those who have been longest in office. The rotation scheme is dependent on the criteria and exceptions as stated in the Articles of Association.

All members of the Management Committee give their time voluntarily and received no benefits from the Charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.

The recruitment of Management Committee members are generally from its members. The charity has kept a rotation scheme in place to promote a more active role for all members and to ensure the needs and objects of the charity are met.

Page 3

NOORANI EDUCATION CENTRE

Report of the Trustees FOR THE YEAR ENDED 31 MAY 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The charity is managed by the trustees. The details of the current trustees are below:

Ismail Vali Hasan Yunus Patel Mohammed Salim

The trustees who make up the Management Committee control the charity. Details of the current Trustees are set out above. These are the individuals responsible for the strategic direction and policy of the charity. The committee is responsible for the day to day running and provision of services.

Induction and training of new trustees

Most Trustees are already familiar with the practical work of the charity. Additionally, new Trustees are provided with an induction in the first management Committee meeting and are coached by the Chair of the management committee over the first few months.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

06240315 (England and Wales)

Registered Charity number

1121772

Registered office

175-177 Garstang Road Fulwood Preston Lancashire PR2 8JQ

Trustees

Ismail Vali Hasan Yunus Patel Mohammed Siddik Patel Salim Mohammed

Company Secretary

Bankers

Natwest Leyland Branch 2 Golden Hill Lane Leyland Preston Lancashire PR25 3LP

Approved by order of the board of trustees on 17 February 2023 and signed on its behalf by:

Salim Mohammed - Trustee

Page 4

NOORANI EDUCATION CENTRE

Statement of Financial Activities FOR THE YEAR ENDED 31 MAY 2022

2022
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
68,595
Other income
25
Total
68,620
EXPENDITURE ON
Charitable activities
3
Management & Administration
33,277
NET INCOME
35,343
RECONCILIATION OF FUNDS
Total funds brought forward
795,834
TOTAL FUNDS CARRIED FORWARD
831,177
2021
Total
funds
£
304,531
41
304,572
49,857
254,715
541,119
795,834

The notes form part of these financial statements

Page 5

NOORANI EDUCATION CENTRE

Balance Sheet 31 MAY 2022

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors
10
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
12
NET ASSETS
FUNDS
14
Unrestricted funds
TOTAL FUNDS
2022
Unrestricted
fund
£
1,334,757
44,251
76,679
120,930
(2,158)
118,772
1,453,529
(622,352)
831,177
831,177
831,177
2021
Total
funds
£
1,050,606
31,149
258,158
289,307
(4,277)
285,030
1,335,636
(539,802)
795,834
795,834
795,834

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The notes form part of these financial statements

Page 6

continued...

NOORANI EDUCATION CENTRE

Balance Sheet - continued 31 MAY 2022

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 February 2023 and were signed on its behalf by:

Salim Mohammed - Trustee

The notes form part of these financial statements

Page 7

NOORANI EDUCATION CENTRE

Notes to the Financial Statements FOR THE YEAR ENDED 31 MAY 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

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 2019)', 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.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. DONATIONS AND LEGACIES

Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
Other grants
2022
£
51,909
16,686
-
68,595
2022
£
-
2021
£
271,685
29,535
3,311
304,531
2021
£
3,311

continued...

Page 8

NOORANI EDUCATION CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 MAY 2022

3. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Support
costs (see
note 4)
£
Management & Administration 33,277
SUPPORT COSTS
Management
£
Management & Administration 33,277

4. SUPPORT COSTS

Support costs, included in the above, are as follows:

Management

Management
2022 2021
Management Total
& Administration activities
£ £
Wages 18,989 18,028
Rates and water 1,782 4,285
Insurance 2,234 2,462
Light and heat 7,845 2,672
PPS - 290
Sundries 213 55
Legal and Professional 1,500 8,380
Repairs and Renewals - 12,560
Accountancy 480 622
Subscription - 228
Depreciation of tangible and heritage assets 234 275
33,277 49,857
5. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022 2021
£ £
Depreciation - owned assets 234 275

continued...

Page 9

NOORANI EDUCATION CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 MAY 2022

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 May 2022 nor for the year ended 31 May 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 May 2022 nor for the year ended 31 May 2021.

7. STAFF COSTS

The average monthly number of employees during the year was as follows:

8.

Average Number of Employees
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Donations and legacies
Other income
Total
EXPENDITURE ON
Charitable activities
Management & Administration
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
2022
2021
2
2
Unrestricted
fund
£
304,531
41
304,572
49,857
254,715
541,119
795,834
2022
2021
2
2
Unrestricted
fund
£
304,531
41
304,572
49,857
254,715
541,119
795,834
304,572
49,857
254,715
541,119
795,834

continued...

Page 10

NOORANI EDUCATION CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 MAY 2022

9. TANGIBLE FIXED ASSETS

Improvements
Freehold
to
property
property
£
£
COST
At 1 June 2021
943,248
105,797
Additions
-
284,385
At 31 May 2022
943,248
390,182
DEPRECIATION
At 1 June 2021
-
-
Charge for year
-
-
At 31 May 2022
-
-
NET BOOK VALUE
At 31 May 2022
943,248
390,182
At 31 May 2021
943,248
105,797
10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Prepayments
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Accrued expenses
Fixtures
and
fittings
£
2,490
-
2,490
929
234
1,163
1,327
1,561
2022
£
44,251
-
44,251
2022
£
851
827
480
2,158
Totals
£
1,051,535
284,385
Totals
£
1,051,535
284,385
Totals
£
1,051,535
284,385
1,335,920
929
234
1,163
1,334,757
1,050,606
2021
£
27,565
3,584
31,149
2021
£
3,509
288
480
4,277

continued...

Page 11

NOORANI EDUCATION CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 MAY 2022

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Other loans (see note 13)
13.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due in more than five years:
Repayable otherwise than by instalments:
Long Term Loans
14.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
At 1/6/21
£
795,834
795,834
Incoming
resources
£
68,620
68,620
At 1/6/20
£
541,119
541,119
2022
2021
£
£
622,352
539,802
2022
2021
£
£
622,352
539,802
Net
movement
At
in funds
31/5/22
£
£
35,343
831,177
35,343
831,177
Resources
Movement
expended
in funds
£
£
(33,277)
35,343
(33,277)
35,343
Net
movement
At
in funds
31/5/21
£
£
254,715
795,834
254,715
795,834

continued...

Page 12

NOORANI EDUCATION CENTRE

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 MAY 2022

14. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
304,572
304,572
Resources
Movement
expended
in funds
£
£
(49,857)
254,715
(49,857)
254,715
Resources
Movement
expended
in funds
£
£
(49,857)
254,715
(49,857)
254,715
254,715

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
At 1/6/20
£
541,119
541,119
Net
movement
in funds
£
290,058
290,058
At
31/5/22
£
831,177
831,177

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 373,192 (83,134) 290,058
TOTAL FUNDS 373,192 (83,134) 290,058

15. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 May 2022.

Page 13

NOORANI EDUCATION CENTRE

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 MAY 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Grants
Other income
Other receipts
Total incoming resources
EXPENDITURE
Support costs
Management
Wages
Rates and water
Insurance
Light and heat
PPS
Sundries
Legal and Professional
Repairs and Renewals
Accountancy
Subscription
Fixtures and fittings
Total resources expended
Net income
2022
£
51,909
16,686
-
68,595
25
68,620
18,989
1,782
2,234
7,845
-
213
1,500
-
480
-
234
33,277
33,277
35,343
2021
£
271,685
29,535
3,311
304,531
41
304,572
18,028
4,285
2,462
2,672
290
55
8,380
12,560
622
228
275
49,857
49,857
254,715

This page does not form part of the statutory financial statements

Page 14