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2021-12-31-accounts

Charity registration number 1122476

Company registration number 05322133 (England and Wales)

AHLULBAYT CULTURAL CENTRE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

AHLULBAYT CULTURAL CENTRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees S. Ali Z. Ali Z. Al-Mausawe H. Abdul-Ameer (Appointed 15 March 2021) Secretary S. Ali Charity number 1122476 Company number 05322133 Registered office 35 Hanover Square Leeds West Yorkshire LS3 1BQ Independent examiner Forrest Burlinson 20 Owl Lane Dewsbury West Yorkshire WF12 7RQ Bankers National Westminster Bank Plc Leeds University Branch 1 Victoria Place Leeds West Yorkshire LS11 1AN

AHLULBAYT CULTURAL CENTRE

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 13

AHLULBAYT CULTURAL CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's objects are restricted to such purposes which are exclusively charitable in the laws of England and Wales and the Charity Trustees shall in their absolute discretion determine, including:

Strategy and activities

It is our strategy to bring this multi-generational and multi-lingual Shi'a Ithna Ashari community together through worship and its common cultural and religious practices, and through providing a space for healthy recreation and alms giving.

Trustees' statement on public benefit

The trustees have paid due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers or duties and deciding what activities the charity should undertake. The objects and other information set out in this report demonstrate this in more detail.

Specifically it is our consistent aim to provide our local Shi'a Ithna Ashari community (those prescribing to the teachings of the Ahlulbayt, namely the Prophet Muhammad, his household and the twelve Imams, peace be upon them) and indeed anyone from the wider community wishing to learn about Islam and the teachings of the Ahlulbayt, with a welcoming centre for worship and learning.

Our cultural centre in Leeds

We have use of a centre in central Leeds, which provides facilities for learning and prayer open to both men and women.

We are open to the community on a regular basis, for duaa (supplication) on a Thursday evening and for Friday midday prayers every week, which are attended by a large number, including students from both of the nearby universities in Leeds.

We run events throughout the Islamic calendar year to allow our local community to come together to commemorate the lives of the Ahlulbayt and to participate in spiritual worship and ritual during the holy months of Ramadan and Muharram, and to celebrate religious festivals, such as Eid. Many of our functions are speaker events, inviting community elders, local Imams, or learned Imams from other cities to give lectures on religious topics and to teach about the doctrine of the Ahlulbayt.

We also encourage our younger members to volunteer to speak as an opportunity for their own personal development, research and sharing of knowledge with their peers. In order to cater for the multi-lingual fabric of our community and to ensure that all feel welcome, including those whose first language is often not the same as that of their parents, we try to provide many of our main events in Arabic, Farsi, and English. It is important to us to engage with the wider community and thus welcome all to our centre.

AHLULBAYT CULTURAL CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Relief of poverty in Iraq and Pakistan

In accordance with the teachings of Islam which stress the importance of giving charity and protecting orphans, and in order to meet our objective of relieving poverty, we encourage our members and those who attend our centre to give alms, most notably for the assistance of orphans in Iraq and Pakistan. Our regular donors give monthly orphan sponsorship, which is distributed by a charitable organisation in Iraq with whom our Orphan Donations Committee has close links.

Achievements and performance

During the year the building was reopened and regular weekly programs were reinstated. Several successful events have been run, including a Family Fun Day fundraising event, a Manchester vs Leeds football match and Muharram lectures in English, Arabic and Farsi.

We have continued to raise charity donations and a total of £15,000 was sent to charitable organisations for orphans in Iraq, details are in the accompanying accounts.

Financial review

The charity's only source of income over the year and previous year has been donations of £38,222 (2020: £97,017). Total spending for the year was £23,317 (2020: £85,623), of which £15,596 was for restricted purposes (2020: £75,085).

Unrestricted funds increased to £56,415. Restricted funds carried forward to 2022 were £17,021 for the Orphans Fund. Spending on renovation and repairs to the centre was £3,195 (2020: £55,895).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be kept at a level sufficient to maintain the level of activities and facilities. The trustees consider that current levels of reserves will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of sufficient reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee and not having a share capital is governed by its Memorandum and Articles of Association dated 29 December 2004. Each trustee is a member of the charitable company and undertakes to contribute towards the costs of dissolution and the liabilities incurred by the charitable company whilst a member, this contribution is limited to £10 per member. The charitable company was registered with the Charity Commission for England and Wales on 28 January 2008.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

S. Ali

Z. Ali Z. Al-Mausawe F. Sefat (Resigned 14 April 2022) S. Mozaffari-Chinjani (Resigned 7 May 2022) H. Abdul-Ameer (Appointed 15 March 2021)

Trustees are voted in by members at community held elections. New trustees have to have the skills required to offer and assist the charity's development and are given relevant Charity Commission publications.

AHLULBAYT CULTURAL CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The charity is run by its board of trustees, who may from time to time form sub-committees to oversee and deliver certain activities. Other volunteers may be co-opted on to these committees to assist and advise on the particular activity.

There are volunteers for different activities, programs and organisation with catering and cleaning the centre. Number of volunteers over the year was 30 (2020:15).

Trustees' responsibilities in relation to the financial statements

The trustees (who are also directors of Ahlulbayt Cultural Centre for purposes of company law) are responsible for preparing the Trustees' Annual Report (incorporating the Directors' Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company 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 Companies Act 2006, the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Articles of Association.

They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approval

These accounts are prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

S. Ali

Trustee/Director Dated: 28 September 2022

AHLULBAYT CULTURAL CENTRE

TRUSTEES' DECLARATION ON UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

In relation to the financial statements which comprise the statement of financial activities, the balance sheet and the related notes:

On behalf of the board

S. Ali Director

28 September 2022

AHLULBAYT CULTURAL CENTRE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AHLULBAYT CULTURAL CENTRE

I report to the trustees on my examination of the financial statements of Ahlulbayt Cultural Centre (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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 that in any material respect:

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 financial statements to be reached.

Use of our report

This report is made solely to the charity trustees, as a body. My work has been undertaken so that I might state to the charity trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity trustees as a body, for my work, for this report, for the statements I have made, or for the opinions I have stated.

Forrest Burlinson

20 Owl Lane Dewsbury West Yorkshire WF12 7RQ

Dated: 28 September 2022

AHLULBAYT CULTURAL CENTRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Total Unrestricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
Notes £ £ £ £ £ £
Income from:
Donations and legacies 4 10,277 27,945 38,222 22,189 74,828 97,017
Expenditure on:
Charitable activities 5 (7,721) (15,596) (23,317) (10,538) (75,085) (85,623)
Net income for the year/
Net movement in funds 2,556 12,349 14,905 11,651 (257) 11,394
Fund balances at 1 January
2021 53,859 4,672 58,531 42,208 4,929 47,137
Fund balances at 31
December 2021 56,415 17,021 73,436 53,859 4,672 58,531

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

AHLULBAYT CULTURAL CENTRE

BALANCE SHEET

AS AT 31 DECEMBER 2021

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
Income funds
Restricted funds
12
Unrestricted funds
2021
£
5,119
43,534
48,653
(1,560)
£
26,343
47,093
73,436
17,021
56,415
73,436
2020
£
5,119
28,227
33,346
(1,560)
£
26,745
31,786
58,531
4,672
53,859
58,531

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The directors have elected not to include a copy of the profit and loss (income and expenditure) account.

The financial statements were approved by the Trustees on 28 September 2022

S. Ali Trustee

Company Registration No. 05322133

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Ahlulbayt Cultural Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is 35 Hanover Square, Leeds, West Yorkshire, LS3 1BQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Assocation, the Companies Act 2006, 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 (FRS 102) (effective 1 January 2019)" and relevant accounting regulations. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

The charity has no permanent endowment funds.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

In accordance with the Charities SORP (FRS102) the economic contribution of volunteers' time is not measured in the accounts.

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

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 headings (headings are excluded where no such expense has been incurred in the current or the comparative year):

The charity does not make grants to individuals.

Expenditure includes the incurring of vat charges which under current UK legislation the charity is not in a position to recover.

Governance costs comprise the costs involving the public accountability of the charity and its compliance with regulation and good practice, these together with other support costs are included under costs of the charity's one main charitable activity, being the operation of the Ahlulbayt Centre in Leeds. The trustees do not think it appropriate to allocate any governance costs to the donations in support of orphans.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements no depreciation whilst renovations are ongoing Fixtures and fittings 15% straight line method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.9 Financial instruments

The charity only has financial instruments classified as 'Basic Financial Instruments' applying the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

No tax has been provided in these accounts because the trustees believe that the income and gains are within the exemptions granted for charities by Chapters 2 and 3 of the Corporation Taxes Act 2010.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees may be required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Such estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

Any estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to such accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period.

3 Fees to the independent examiner

2021 2020
£ £
Independent examiner's fees 1,560 1,560
Donations and legacies
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 10,277 27,945 38,222 22,189 74,828 97,017

4 Donations and legacies

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Charitable activities

General
General Renovation
2021
2020
2020
£
£
£
Depreciation
402
402
-
Community welfare costs
750
-
-
Fundraiser costs
596
85
-
Renovation costs
-
-
50,000
Repairs
3,195
5,895
-
Heat & light
1,489
(478)
-
Charitable expenditure heading 9
158
-
-
6,590
5,904
50,000
Grant funding of activities (see note 6)
15,000
28,000
-
Bank charges
167
159
-
Accountancy
1,560
1,560
-
23,317
35,623
50,000
Analysis by fund
Unrestricted funds
7,721
10,538
-
Restricted funds
15,596
25,085
50,000
23,317
35,623
50,000
Total
2020
£
402
-
85
50,000
5,895
(478)
-
55,904
28,000
159
1,560
85,623
10,538
75,085
85,623

6 Grants payable

General General
2021 2020
£ £
Grants to charitable organisations:
Wal Fajer (Iraq NGOD no. 1Z71068) 15,000 25,000
Al-Muntazir Trust UK (CCEW reg no. 292496) - 3,000
15,000 28,000

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but one of them was reimbursed a total of £158 expenses (2020- none were reimbursed).

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Employees

The average monthly number of employees (including non-remunerated directors) during the year was:

2021 2020
Number Number
7 6
9 Tangible fixed assets
Leasehold Fixtures and Total
improvements fittings
£ £ £
Cost
At 1 January 2021 24,465 21,835 46,300
At 31 December 2021 24,465 21,835 46,300
Depreciation and impairment
At 1 January 2021 - 19,555 19,555
Depreciation charged in the year - 402 402
At 31 December 2021 - 19,957 19,957
Carrying amount
At 31 December 2021 24,465 1,878 26,343
At 31 December 2020 24,465 2,280 26,745
10 Debtors
2021 2020
Amounts falling due within one year: £ £
Other debtors - Gift Aid claims outstanding 5,119 5,119
11 Creditors: amounts falling due within one year
2021 2020
£ £
Accruals 1,560 1,560

AHLULBAYT CULTURAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January resources expended 1 January
resources
expended 31
2020 2021 December
£ £ £ £ £ £ 2021
£
Special
renovation
fund - 50,000 (50,000) - - - -
Orphans fund 4,929 24,828 (25,085) 4,672 27,945 15,596 17,021
4,929 74,828 (75,085) 4,672 27,945 15,596 17,021
13 Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31
December 2021 are
represented by:
Tangible assets 26,343 - 26,343 26,745 - 26,745
Current assets/(liabilities) 30,072 17,021 47,093 27,114 4,672 31,786
56,415 17,021 73,436 53,859 4,672 58,531

14 Related party transactions

The charity operates from 35 Hanover Square, Leeds which is a property owned and controlled by the family of S.Ali, the use of this property has been on a rent-free, no obligation basis.