## **EAST LONDON MOSQUE TRUST**
(A Company Limited by Guarantee)
Company Number: 0468317 ● Charity Registration Number: 1122613
## TRUSTEES’ ANNUAL REPORT, STRATEGIC REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
## **ABACUS PARTNERS (LDN) LLP**
CHARTERED CERTIFIED ACCOUNTANTS & STATUTORY AUDITORS UNIT A, ABBOTTS WHARF, 93 STAINSBY ROAD, LONDON E14 6JL
|**CONTENTS**||
|---|---|
|Contents|2|
|Corporate Details|3|
|**Trustees’ Annual Report**|**4**|
|Objects and Public Benefit|4|
|Activities|4|
|**Strategic Report**|**5**|
|Achievements and Performance|5|
|Plans for the future|11|
|Financial Review|12|
|**Structure, Governance and Management**|**13**|
|Statement of Trustees’ Responsibilities|14|
|**Independent Auditor’s Report**|**15**|
|**Statement of Financial Activity**|**17**|
|**Statement of Financial Position**|**18**|
|**Statement of Cash Flows**|**19**|
|**Notes to the Financial Statement**|**20–29**|
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## **CORPORATE DETAILS**
**Registered Name** East London Mosque Trust **Working Names** East London Mosque London Muslim Centre
**Company Number** 0468317 **Charity Number** 1122613 **Trustees (Directors)** Ayub Khan – _Chairman_ Abdul-Hayee Murshad – _Honorary Secretary_ Syed Tohel Ahmed – _Treasurer (from Oct 2021)_ Abdullah Faliq _(from Oct 2021)_ Harun Rashid Khan _(from Oct 2021)_ Hussain Muhammad Shefaar Mahera Ruby Muhammad Habibur Rahman Ruhana Ali Salma Siddiqua _(from Oct 2021)_ Sayeda Anzumara Begum _(from Oct 2021)_ Aman Ali _(until Oct 2021)_ Ismail Patel _(until Aug 2021)_ Mohammed Abdul Malik _(until Oct 2021)_ Rahela Choudhury _(until Oct 2021)_ Shafiur Rahman _(until Oct 2021)_ Sirajul Islam _(until Oct 2021)_ Sirajul Islam (Hira) _(until Oct 2021)_ **Lead Officer** Dilowar Hussain Khan **Company Secretary** Usamah Kenneth Ward _(from Nov 2021)_ Abdul-Hayee Murshad _(until Nov 2021)_ **Registered Office** 82–92 Whitechapel Road, London, E1 1JQ **Statutory Auditors** Abacus Partners (Ldn) LLP, Unit A, Abbotts Wharf, 93 Stainsby Road, London, E14 6JL **Main Bankers** HSBC, 75 Whitechapel Road, London, E1 1DU Al Rayan Bank, 97-99 Whitechapel Road, London, E1 1DT Barclays Bank Plc, Broadgate 2, Leicester LE87 2BB **Solicitors** Saunders Roberts, 1 Crown Court Yard, Bridge Street, Evesham, WR11 4RY
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## **TRUSTEES’ ANNUAL REPORT**
## **OBJECTS AND PUBLIC BENEFIT**
The objects of the East London Mosque Trust (‘Trust’), as set out in its Articles of Association, are to:
- 1) Advance the Islamic faith for the benefit of the public by maintaining and managing a community centre and mosque in London;
- 2) Advance education and to provide facilities in the interests of social welfare for recreation and leisuretime occupation with the object of improving the conditions of life for the general public, and in particular the Muslim community;
- 3) Promote such other charitable purposes as may from time to time be determined.
In pursuance of these objects, the Trust hosts a range of services and activities for the benefit of the public.
## **ACTIVITIES**
The Trust continued to provide a wide range of services for Muslims and non-Muslims, despite the earlier Covid-19 restrictions, often in partnership with others.
For the first time in two years, prayers were held normally in the month of Ramadan, with all Ramadan activities resuming. Normal Eid prayers also resumed. The Trust facilitated Ramadan collections for 38 UK-registered charities for causes in the UK and abroad, raising over £250k, more than any previous year.
The Trust’s appeal to replace the Mosque’s dome raised approximately £0.5m in donations and pledges. A firm was appointed to redesign the dome and main entrance. The local planning authority gave outline planning permission. Works to the ground floor extension were halted to seek planning approval for a second floor hall extension for women, which has now been obtained. Completion is expected by the middle of next year.
The Trust continued to encourage people to be vaccinated, especially as the take up rate in Tower Hamlets is low compared to other parts of UK. The ground floor hall of the London Muslim Centre was used as a vaccination centre twice a week, even in Ramadan. This helped to remove the vaccine hesitancy in the Muslim community due to anti-vaccination messages in social media.
Both of the Trust’s schools underwent Ofsted inspections in the last academic year, and were rated overall as ‘good’ again, with ‘outstanding’ judgements on ‘behaviour & attitude’ for the LEA and in ‘behaviour & attitude’ and ‘personal development’ for Al Mizan School.
This year a great deal of effort was spent on supporting refugees who were placed in the vicinity of the Mosque. The Trust worked in partnership with other charities to support hundreds of refugees with some of their basic needs, food, clothing, toiletries, etc, and continued with the food bank that was initiated during the pandemic.
The Trust places strong emphasis on building relationships with others so we can work together for the common good, holding several post-pandemic events, including an interfaith iftar gathering, Islamophobia Awareness seminar, Mosque Open days, etc.
Financially, the Trust performed better than last year, due to the lifting of Covid restrictions. In this financial year the Trust raised £1.86m in donations and from other fundraising initiatives. The accounts show that income from rent, hall hire and investment increased significantly after the lifting of the restrictions.
## **Volunteering**
The Trust benefits greatly from dedicated, committed volunteers, from those helping with collections, to members and trustees helping to drive the organisation forward. They provide stewarding for Friday prayers, Ramadan, Eid and other special occasions, and provide support for charity collections. Over 150 volunteers contribute time estimated to be worth around £120,000 per year.
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## **STRATEGIC REPORT**
## **ACHIEVEMENTS AND PERFORMANCE**
The trust measures success in a number of ways, such as through satisfaction surveys, fundraising targets and educational outcomes.
## **Religious Projects and Services**
## Prayer Facilities
The mosque is normally open to the public every day from 10am, up to 9pm in the winter months, and later in the summer months. The annual footfall for prayers is about 1.7 million. The average weekly footfall for prayers is over 32,000 people, almost doubling in Ramadan. The congregation for the Friday ‘Jumuah’ prayer averages at well over 5,000, peaking at about 7,000 on the busiest Fridays. The Friday sermon and weekly talks is delivered in English and community languages, plus British Sign Language for deaf worshippers; it is streamed live on Facebook, Mixlr Alexa and local digital radios, and made available for download on the ELM website and YouTube channel.
## Religious Teaching
Religious lectures are delivered in the main prayer hall of the Mosque every day of the week, with more than 20 circles of religious knowledge every week within the Mosque complex for men, women and children. The promotion of Islamic teachings helps prevent misunderstanding, and aids the spiritual and academic growth of worshippers in a safe environment. Most lectures are streamed live.
## Ramadan & Eid
The Mosque was open for Ramadan in 2021, but with pandemic restrictions in place, limiting its capacity. Teams of stewards helped ensure safe access to the Trust’s facilities. The Trust was also able to hold five congregational prayers for each of Eid al-Fitr and Eid al-Adha.
## Funerals
London’s oldest Muslim funeral service, Taslim Funerals, is based in the East London Mosque complex. They catered for 664 funerals in this period, which included special prayers in the main prayer halls, usually after the midday prayer.
## **Education**
The Trust offers full- and part-time education.
## Al-Mizan School & London East Academy
Al-Mizan School is a full-time junior school for girls and boys, and London East Academy (LEA) is a full-time secondary school for boys. Both schools operate under one headteacher, and a single governing body that is a committee of the Trust. As with other independent schools, recruiting good qualified teachers remains a challenge but nevertheless a priority. There has been a strong demand for schools places leading to record levels of pupil recruitment. The governing body appointed the interim headteacher as the permanent headteacher from June 2022.
Both Al-Mizan School and London East Academy underwent Ofsted inspections in the last academic year, and were rated overall as ‘good’ again, with ‘outstanding’ judgements on ‘behaviour & attitude’ for LEA and in ‘behaviour & attitude’ and ‘personal development’ for Al Mizan. This was an improvement from the previous inspections that took place four years ago, despite the more demanding framework, achieved through the hard work of the pupils and the contributions of all stakeholders: of parents, staff, and the governing body.
The GCSE results for 2022 reflected the post-pandemic return to exam-based grading, which nationally was lower than the previous two years: 93% of students achieved 5 GCSEs (including English and Maths) at grade 4 or higher (national was 73.2%); 67% of students achieved 5 GCSEs (including English and Maths) at grade 5
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or higher; similarly, 67% achieved grade 5 or higher in the EBacc; 20% of students achieved 5 GCSEs (including English and Maths) at grade 7 (equivalent to former grade A) or higher.
In the first SATs since the pandemic, year 6 students had an overall pass rate of 67%, which is above the national average of 59%. In Spelling Punctuation And Grammar (SPAG) students scored above 90%.
## Supplementary education
The Trust’s part-time evening school, the ELM Evening Madrasah, operates weekdays 5–7pm, with a curriculum giving essential Islamic knowledge. Following a decline in pupil numbers during the pandemic, it has slowly been increasing; it now operates 7 classes with over 120 pupils.
The London Iqra Institute (a project of London Education Trust) operates from the fifth floor of the Maryam Centre, specialising in structured Islamic courses for children aged six and above, and some courses for adults. The Trust supports several other educational projects based in its complex: Rainbow House, Saturday Islamic School, Hornafric Development Association, and Al Qalam Madrasah.
## **Social Welfare**
The Trust provides a range of welfare services directly and through supported projects.
## Religious Advice and Support
The Mosque’s Imams give advice and guidance on religious matters, on issues such as marriage, inheritance, family and financial matters, with typically well over a hundred enquiries every day.
The Trust provides subsidised office space to Al Ihsan Marriage & Family Advice Service, which provides a marriage introduction and advice service, and organises public lectures on marriage in the Muslim community.
## Supporting charitable causes
Last year the Covid pandemic had a profoundly detrimental impact on external charity collections. Over the course of this year, with the easing of restrictions, there has been a gradual return of both congregations and of charities making collections. The Trust was able to host 54 external collections from 1 April 2021 to 31 March 2022 for UK registered charities (12 last year, 109 the year before), raising £145,593 for worthy causes in the UK and overseas.
**----- Start of picture text -----**
Collections for UK charities
£400,000
£350,000
£300,000
£250,000
£200,000
£150,000
£100,000
£50,000
£0
2014–15 2015–16 2016–17 2017–18 2018–19 2019–20 2020–21 2021–22
**----- End of picture text -----**
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## Women-only services
The Trust hosts over 20 female user groups every week, covering all ages and from different backgrounds, such as the London Saturday Circle, the Tafseer Class, the Friday Youth Circle, and the New Muslims Circle. Most are based in the Maryam Centre, which has excellent female prayer facilities, classes and seminars for women. The Trust continues to offer a professional counselling service for women. Our frontline staff are trained as ‘Violence against women and girls’ champions, and to support women facing domestic violence.
## Support for new Muslims
New Muslims are supported through weekly programmes, one-to-one learning, and social gatherings.
## Services for the elderly
The Trust organises regular social gatherings for the elder members of our community, though this was seriously affected by the pandemic. Our senior citizens group has had a slow start to bring back people who came before the pandemic. We organised a trip to Woking Mosque, which they chose to give them confidence to get out and about, after starting with storytelling sessions about their pandemic experiences, which were sad as many of their friends passed away to Covid. We now have fortnightly social gatherings and exercise sessions for our elders.
## Legal advice
Pro Bono in the LMC (PBLMC) is a free legal advice service, run by volunteer practising barristers, solicitors and CILEx (Chartered Institute of Legal Executives), for those unable to afford or obtain legal aid. Where PBLMC is not able to assist, it signposts to other legal help providers. Areas of law include family, crime, tenancies, employment, and immigration. Whilst many of PBLMC’s clientele are Muslims, non-Muslims also come to PBLMC for legal help. It had to close during the pandemic, but we are asking them to re-establish the service now that there has been a return to normal.
## **Community Cohesion**
The Trust pro-actively engages with faith and non-faith organisations and works to promote community cohesion.
## Open Days and Tea & Tour
The Trust facilitates regular open days and exhibitions in partnership with the Islam Awareness Project (IAP), with the aim to improve community relations and remove misunderstandings about Islam and Muslims. This year we organised two open days, receiving over 1000 non-Muslim visitors, many of whom gave positive feedback. Also, regular Tea & Tour sessions for non-Muslim visitors are arranged by the volunteers of IAP on the last weekend of every month.
## Islam Awareness Courses (CPD Accredited)
The cultural diversity programme for non-Muslim professionals remains a unique and an important service that has reached over 250 professionals from diverse backgrounds since the first course delivered in 2013. This year we held four CPD accredited training courses, two full-day and two half-day. These included tailor-made courses for the London Fire Brigade and University of East London.
## Baraka Khan Visitor Gallery
The Baraka Khan Visitor Gallery (BKVG), on the first floor of the Maryam Centre overlooking the prayer hall, is a legacy initiative of the Baraka Khan Foundation that seeks to raise funds, improve engagement and open doors. This year has seen significant upgrades to the facilities to enhance visitor experiences. The BKVG Boardroom has been designed to merge the Trust’s service-orientated values with Baraka Khan’s legacy of creating an alliance of goodness with people of all faiths and none.
The Trust occasionally holds special public presentations with renowned experts from the business, healthcare, and financial sectors. By bringing leading thinkers and the Muslim community together, these discussions
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contribute to sharing ideas, and offer knowledge for community benefit. This year we had the honour of hosting Sir Michael Barber's third visit (see ‘Special Events & Notable Visitors’ below).
## Tackling Racism, Islamophobia and Anti-Semitism
The Trust has been working with anti-racist organisations to challenge racism, Islamophobia and antiSemitism, and organised and supported a number of events throughout the year.
As part of the Islamophobia Awareness Month, on 29 Nov 2021 the Trust organised an event on, ‘The Bosnian state, and the Muslim population, under attack again’, with Peter Oborne and Bosnian Ambassador Vanja Filipović. Around 200 participants attended the event.
The Trust hosted a press briefing with Stand Up To Racism to promote the National UN Anti-Racism Day Demonstration, which was held on 19 March 2022.
## Special Events & Notable Visitors
On 24 September 2021, a community rally was hosted in the Maryam Centre, forging solidarity and seeking justice after the shocking and brutal murder of Sabina Nessa. The event was attended by faith leaders, women’s groups and local politicians who delivered short speeches. Organisers for the event included the East London Mosque, The Muslim Women’s Collective, Women 100 and The East London Citizens Organisation.
In order to address the challenges Muslim families are facing in UK, the Trust organised two days of talks on 25 and 26 of December 2021, in Bangla and English, delivered by its Imams and guest scholars, on the theme of ‘Our Family, Our Future’. Speakers covered the following topics: The Institution of Family in Islam, Husband & Wife, the Foundation of Family Life, and Foundations of Parenting. The programmes were well attended and also broadcast on social media.
The Trust hosted the Qur’an Revision Day on 13 February 2022, the first of its kind in the UK. More than 100 students of the Qur’ān gathered from all over UK, and recited the Qur’ān to teachers over the course of the whole day. The event was hugely sold out; many people have sent in messages of support and have asked for information about the next event. The Trust is planning to repeat this event annually.
The Baraka Khan Foundation, in partnership with the Trust, welcomed back Sir Michael Barber for an event to discuss the current ‘State of the World’ on 23 February 2022. Sir Michael recounted the history of eighthcentury Baghdad and the ‘House of Wisdom’, a focal point of knowledge, dialogue, diversity, and discussion. He cited the need for Houses of Wisdom in the modern age.
The Trust was delighted to welcome guests for its annual iftar on 9 April 2022, this year with the theme ‘Supporting Refugees: A Divine Call’. Former ELM trustee, Shafiur Rahman, spoke about ‘What Islam Says About Supporting Refugees.” Reverend Alan Green, Chair of Tower Hamlets Inter Faith Forum, shared the Christian perspective on supporting the refugees. Leon Silver, President of Nelson Street Synagogue, drew attention to ‘Commonality amongst refugees.” Other guests who spoke at the event included: Rushanara Ali MP; John Biggs, Executive Mayor of Tower Hamlets; and Phil Warburton from London Citizens.
Award-winning journalist, broadcaster and author Peter Oborne was hosted by the Trust on 9 June 2022, for the launch of his latest book, ‘The Fate of Abraham – Why the West is Wrong about Islam’. Over 250 guests attended the event.
On 15 July 2022, the Trust marked the 27[th] memorial of the Srebrenica Genocide in an event at the London Muslim Centre,with guests from the community, which also included a survivor from a Bosnian-Serb-run concentration camp. A video was played to honour 50 victims who were recently buried, having been identified after years of painstaking forensic process piecing together the remains of the deceased.
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## Public Relations
The Trust’s continues to facilitate many journalists and news broadcasters. In the past year, the Trust has been featured in broadcast, print and online media, including: BBC News, ITV, iNews, MyLondon, The Huffington Post, East London Advertiser, The Tablet, Arab News, The New Arab, and Morocco World News.
The website plays an important role in explaining the work and services of the Trust, providing news and details of events, and raising funds through appeals. It is especially popular for checking prayer times, and also has audio and video, and Islamic articles. The number of page views for the year 1 Apr 2021 to 31 Mar 2022 was 18,310,929. Many talks are live streamed from the website, and the live broadcast of the Adhan (call to prayer) is widely used in London for commencing Iftar (breaking of the fast).
A new app was launched in October 2021 for the Trust, initially including prayer times and the facility to make donations.
## **Social Networks**
Our Facebook account has over 344,000 followers. The page is regularly updated with information on fundraising activities, notices and media statements. Enquiries directed to the Trust via Facebook messages are also responded to, and advice given to users.
Our Twitter account now has over 14,100 followers.
The Trust’s YouTube channel continues to grow, with a total of over 6.5 million views, and 49,500 subscribers (5.0 million and 38,300 respectively the previous year).
The Trust Instagram account has grown to 18,900 followers, and our TikTok channel has over 21,500 followers.
The Trust produced 8,000 annual calendars for 2022, featuring an image from the Mosque complex for each month, taken by photographer Rehan Jamil. The calendar is sold for £1 to cover printing costs. The Trust printed 20,000 copies of its popular Ramadan timetable; the digital version on the website was downloaded over 100,000 times.
## **Premises**
## Phase 3 & ELM dome
The structural and shell works to the ground floor men’s hall extension have been completed. Works were halted to obtain the full planning approval to build the second floor hall extension for women, which has now been approved. The works to complete the extensions are planned to resume later this year.
Outline planning permission has been obtained, now works are being carried out to complete the design and specification of the dome, roof and minaret caps. Works are scheduled to commence in early 2023.
## Security
The Trust is constantly at potential risk from criminal damage, burglary, theft, arson, and hate crimes. In some circumstances, the safety of staff, volunteers, users and visitors could be in jeopardy.
Any breach of security may have an impact on the running of the Trust. It follows that all reasonable measures should be taken to enhance security. To this end, risk assessments are conducted whenever necessary, and at least annually.
Where appropriate, expert advice has been sought to determine security risks and precautions required to deal with these potential threats. The Trust is in regular contact with the police, in particular the counter-terrorism branch.
Staff and volunteers are provided with sufficient resources, information and training to implement the security procedures, which are reviewed regularly. The Security Team provides 24/7 security cover for our buildings,
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which acts as a deterrent, and is reassuring for staff, volunteers and users. Members of the Security Team are SIA qualified, and their core duties include opening and closing of the buildings, monitoring CCTV, signposting, implementing access/exits restrictions, recording and reporting incidents (including to the police), as well as carrying out internal and external patrols throughout the day and night.
Security is increased during high profile visits by dignitaries to the Mosque and Centre, also for Ramadan nighttime prayers and Eid prayers.
## **Governance and Administration**
The Director of Finance & Engagement remains as the lead member of staff. The Strategic Plan 2020–24 is guiding the Trust’s priorities.
The review of staffing continued, with restructuring of the security, premises, maintenance, reception and events teams.
The Trust’s policies and procedures are kept under regular review, with oversight from the Trust’s Governance, Compliance & Audit Committee.
## **Fundraising, Income Generation and Investment Performance**
The main sources of income for the Trust continue to be from donations from our congregation/well-wishers, rental/investment income and school fees. In this financial year, the Trust has resumed its general and specific fundraising campaigns. The Trust has been able to increase the income from all of the regular sources.
The overall income, £4.39m, remained similar to last year (£4.38m) when the Trust benefited from the furlough scheme. However, expenditure has increased by 5.6% due to inflation and an increase in staffing. Although the net surplus was less than last year, it was much more than was budgeted.
The Trust continues to meet its target of maintaining an annual operating surplus of at least £0.5M, so it can repay its loan and pay for capital projects such as the dome, phase 3 extension and refurbishment of the main entrance of the Mosque.
The Trust’s investment in digital fundraising continued to be value for money despite tough competition with other charities in securing online donations.
The rental income of the Trust is recovering. This year it received 14% more rent than last year. The Trust achieved just under 5.5% rental income from its investment properties. Income from hall hire increased significantly, but has not reached the pre-pandemic level due to the effect of the partial restrictions. The halls and rooms of the London Muslim Centre and Maryam Centre are primarily used by the Trust’s schools on termtime weekdays, and hired to charities and community groups at a discount to promote educational, social and religious activities. The halls are also hired for Muslim wedding celebrations.
The Trust investment of £379k via ELMT Waqf Ltd in two new build properties in Northampton is complete; they are currently in the process of being sold. The completion was delayed by due to the pandemic. It is estimated that there will be a gain of around 35% once the properties are sold.
The ‘Legacy Giving’ campaign continues. There have not many pledges in the last period; the amount pledged fluctuates as people change their mind about the beneficiaries of their will.
The Trust’s schools continue to operate in surplus.
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## **PLANS FOR THE FUTURE**
## Governance and Administration
1. Arrange for external review of policies and procedures to ensure a strong governance structure.
2. Continue with the annual training programme for trustees.
3. Continue with succession planning for trustees and members, building capacity and improving processes to increase diversity, ensuring a broad range of skills, and improving compliance.
4. Complete review of staffing and departmental structure, including lead member of staff.
## Fundraising and Income Generation
5. Maintain net income of the Trust at a sustainable £0.5m per annum.
6. Continue to make better use of internet and social media streams through digital fundraising.
## Projects and Services
7. Complete the review of the Trust’s full-time education.
8. Carry out review of all supplementary education for children.
9. Establish a youth forum to build relationships between young people and the Mosque.
10. Find ways to offer social and recreational opportunities for young people in an Islamic environment.
11. Continue to enhance support for new Muslims.
12. Develop further support for charitable giving to good causes.
13. Continue to develop services for the elderly.
14. Develop a structured, holistic approach to promoting family values and tackling family break-up.
15. Continue to improve opportunities for researchers by developing the Trust’s archive service.
16. Continue to provide support for refugees and asylum seekers being housed in our Borough.
## Developing Relationships / Improving Image
17. Develop further ways to work with wider society.
18. Create a series of media assets that challenge misconceptions about Islam and explain Muslim concepts.
19. Provide courses and seminars that give a balanced and contextual understanding of Islam.
20. Enhance visitor use of the BKVG with displays and a comprehensive range of exhibition materials.
## Assets & Premises
21. Continue with the Phase 3 extension.
22. Begin refurbishment of dome, minarets and main entrance.
23. Improve IT provision and security.
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## **FINANCIAL REVIEW**
## **Principal Funding Sources**
The Trust raised £1.32m through donations (£1.2m in 2021). Income generated from charitable activities decreased to just under £1.5m (£1.7m in 2021). The income from investment increased to £0.9m (£0.8m in 2021) and income from fundraising activities also increased significantly to £0.55m (£79k in 2021). The Trust claimed £148k from the HMRC Job Retention Scheme.
Restricted income is either the fees or donations received for individual projects, e.g. the Trust’s schools and ELM Waqf (sustainability fund).
## **Staff Remuneration**
The Trust has a pay scale for remuneration of staff. The remuneration committee decided the Trust could not afford to give an increase equal to inflation (the Consumer Price Index), so determined the annual increase to the pay scale from 1 April 2022 would be 2.6% (the figure for public sector wage growth up to November 2021), with the lowest level maintained at 20p per hour more than the minimum wage.
## **Investment Policy**
The Trust operates an investment policy to grow the Trust’s assets, so that the returns can be used to further its aims and activities as well as meet its cost centres. The Board of Trustees reviews the overall financial position of the Trust through the management accounts and budgets, paying particular attention to shortterm and long-term financial commitments.
The Trust invests ethically, even if the investment yields a lower rate of return. Ethical investments for the Trust are those that do not conflict with Islamic values, nor do they counter the Trust’s aims and ethos.
The investment level of the Trust is determined by the Board of Trustees by making sure sufficient liquid funds are available to meet immediate liabilities. However, up to 60% reserves of the Trust can be utilised for investment with the proviso that at least two months of operational costs can be liquidated within a threemonth period.
The Trust has invested approximately £6.6m in income-generating properties within the complex and, more recently, outside of the complex. The LMC Business Wing is a part of its investment strategy, in particular the businesses and charities based there paying rent for the retail units and office spaces they occupy. The annual rental income from all investment properties was £0.86m this year, yielding a return of 5.5% based on the current investment value of £16.05m. There was around 90% occupancy in the investment properties; discounts had to be given due to the lockdowns.
All other cash reserves are held in bank accounts, and any bank interest received allocated to the welfare fund, consistent with Islamic guidelines on the treatment of interest. Any profits from the deposits at the Al-Rayan Bank are included in Trust’s main fund.
## **Reserves Policy**
The main objective of the reserves policy is to ensure that the Trust is able to meet its short-term operational costs in an event where income drops to an unsustainable low. It is currently operating to service at least two months of liabilities, which is £0.60m. The Board of Trustees considers the reserve policy to be adequate, as the giving tradition is strong in such a faith-based organisation, with regular income received from the investments.
## **Principal Uncertainties, Risks and Management**
The Trust identifies and monitors risks in the areas of compliance, reputation, financial management, governance and operations, and puts in place measures to mitigate these risks, especially those deemed as major. These measures, backed by regular review, ensure strong protection of the charity.
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Amongst the key measures the Trust has in place are:
- DBS checks whenever appropriate for staff, volunteers and trustees
- scrutiny of policies and procedures by the Governance, Compliance and Audit Committee
- regular monitoring by trustees of the reserves policy and the risk register
- all suitable insurance policies
- 24/7 security guards based in the Trust’s premises
The Trust’s booking process and policy for speakers helps to mitigate reputational risks. The Trust robustly challenges any misleading or malicious media reports. It has enhanced its due diligence procedures.
Security is kept continuously under review. The Trust employs 24/7 security guards, and maintains close contacts with the local police force and other agencies, such as the Tension Monitoring Group.
The Trust’s schools uncovered possible fraud and theft by a former employee last year. The Trust appointed a consultant to review the schools’ financial policy and procedures, and recommended improvements. The matter was reported to the police and the Charity Commission. The matter is still ongoing, but already the schools have improved their procedures according to the recommendations.
The Trust benefits from interest-free loans from supporters, known as Qard Hasanah. The balance of this loan dropped to £4.52m from £4.78m at the end of this reporting period, i.e. a reduction of £262k. These loans have helped the Trust to undertake past capital developments, and to establish investments to help sustain the Trust, known as Waqf. The Trust ensures it keeps sufficient cash flow to repay Qard Hasanah upon request, and can sell its investment properties should the need arise.
## **Independent Auditor**
An independent audit was carried out by Abacus Partners (Ldn) LLP, Chartered Certified Accountants & Registered Auditors. The auditor is deemed to have been re-appointed in accordance with section 487 of the companies Act 2006.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The East London Mosque Trust is a company limited by guarantee. Its Articles of Association were last updated in 2020. Ten trustees are elected by the Trust’s membership from amongst themselves every two years. The elected trustees may appoint up to five additional trustees whose expertise may benefit the Trust. Trustees are the company directors for the purpose of company law. Trustees do not receive any remuneration.
A trustee induction procedure outlines steps for vetting trustees, key documents that are considered essential, and expectations for appropriate training. The Board of Trustees typically meets every six weeks; in this reporting period, they met 12 times. It has established three principal committees for effective governance:
- Executive Committee
- Governance, Compliance & Audit Committee
- • Schools’ Governing Body
The Trust considers the Executive Committee (currently consisting of the Trust’s Chairman, Honorary Secretary, Treasurer, another trustee and four senior members of staff) to be the key management personnel. The delegation of decisions to committees is outlined in terms of references, and to staff in job descriptions. The Board of Trustees retains ultimate oversight of financial controls, the management of risks, significant developments, and in ensuring the Trust operates in accordance with its Articles of Association, charity law and other legal requirements, and best practice.
The Trust has a subsidiary, the ELMT Waqf, to make investments. The Trust cooperates with other charities and organisations where this will help deliver its objects to its beneficiaries, with due regard to any conflicts of interest.
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## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of East London Mosque Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS102);
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is not appropriate to assume that the charitable company will continue in operation.
The Board of Trustees is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company, and to enable them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the company and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the persons who is a director / trustee at the date of approval of this report confirms that:
- there is no relevant audit information of which the company’s auditors are unaware; and
- they have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
The Trustees’ Annual Report and the Strategic Report were approved by the Board of Trustees (in their capacity as company directors) on 17 Sep 2022 and signed on its behalf by:
**Ayub Khan** Chairman
**Abdul-Hayee Murshad** Honorary Secretary
14
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE EAST LONDON MOSQUE TRUST FOR THE YEAR ENDED 31 MARCH 2021**
## **Opinion**
We have audited the financial statements of The East London Mosque Trust for the year ended 31st March 2022, which comprise the statement of financial activities, the Statement of Financial Position, the Cash Flow Statement, and the related Notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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).
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31[st] March 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read other information and, in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
15
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report, including the Strategic Report, for the financial year for which the financial statements are prepared, is consistent with the financial statements; and
- the Trustees Annual Report, including the Strategic Report, has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report and the Trustees Annual Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This is report is made solely to the charitable company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Acts 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as body, for our audit work, for this report, or for the opinion we have formed.
Mr Nur Ahmed Chowdhury (Senior Statutory Auditor) For and on behalf of Abacus Partners (Ldn) LLP Statutory Auditor Unit A, Abbotts Wharf 93 Stainsby Road London E14 6JL
Date: 22 October 2022
16
## **EAST LONDON MOSQUE TRUST**
## **(Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITY (INCORPORATING THE INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022**
|**Notes**
**Incoming Resources**
Donations and Legacies
**3**
Activities for Generating Funds
**4**
Investment Income
**5**
Income from Charitable Activities
**6**
Others Incoming Resources
**7**
**Total Incoming Resources**
**Resources Expended**
Costs of Generating Donation Income
**8**
Fundraising Costs
**9**
Investment Management Costs
**10**
Charitable Activities Costs
**11**
Support costs
**12**
Governance costs
**12**
**Total Resources Expended**
**Net Income/Deficit Before Fund Movements**
Gross Transfer Between Funds
**22**
**Net Movement before other recognised**
**gains and losses**
Gains / (losses) on revaluation of Fixed assets
**14**
**Net Movement in Funds**
**Reconciliation of funds:**
Total Funds Brought Forward
**Total Funds as at 31 March 2022**|**Total**
**Total**
**Unrestricted**
**Restricted**
**2022**
**2021**
£
£
£
£
1,069,057
247,230
1,316,287
1,175,783
546,771
-
546,771
79,220
885,141
-
885,141
776,544
116,220
1,339,842
1,456,062
1,692,993
189,741
-
189,741
652,249
2,806,930
1,587,072
4,394,002
4,376,789
66,746
-
66,746
49,215
210,664
-
210,664
142,580
233,462
566
234,028
236,967
892,930
1,375,121
2,268,051
2,192,977
697,253
21,000
718,253
662,850
82,645
-
82,645
81,662
2,183,700
1,396,687
3,580,387
3,366,251
623,229
190,385
813,614
1,010,538
(35,977)
35,977
-
587,252
226,362
813,614
1,010,538
-
-
587,252
226,362
813,614
1,010,538
32,412,620
4,138,847
36,551,467
35,540,929
**32,999,872**
**4,365,209**
**37,365,081**
**36,551,467**|
|---|---|
All the activities of the company are from continuing operations.
The notes on pages 20 to 29 form part of these financial statements.
17
## **EAST LONDON MOSQUE TRUST**
## **(Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2022**
|**Note**
**Fixed Assets:**
Freehold Land and Buildings
**14**
Leasehold Land and Buildings
**14**
Investment Properties
**14**
Fixtures, fittings and equipment
**14**
Investment in Subsidiaries
**Current Assets:**
Stock
Debtors & prepayments
**15**
Cash at bank & in hand
**Current Liabilities:**
Amount falling due within one year
**16**
**Net Current Assets / (Liabilities)**
**Total Assets less Current Liabilities**
**Creditors:**
Amount falling due after one year
**17**
**Total Net Assets**
**Funds of the Charity**
Restricted Funds
**24**
Unrestricted Funds
**25**
General Funds
Designated Funds
**Total Funds as at 31 March 2022**|£
3,027
825,535
2,736,054|**Total**
**Total**
**2022**
**2021**
£
£
£
13,341,232
13,281,232
10,456,034
10,456,034
16,049,751
16,049,751
453,681
472,239
1
1
40,300,699
40,259,257
3,449
836,767
2,080,097
2,920,313
2,945,299
343,477
(24,986)
40,644,176
40,234,271
3,279,095
3,682,804
**37,365,081**
**36,551,467**
4,365,209
4,138,847
1,311,164
32,999,872
31,101,456
32,412,620
**37,365,081**
**36,551,467**|
|---|---|---|
||3,564,616
3,221,139||
||1,453,265
31,546,607||
||||
The financial statements were approved and authorised for issue by the Board of Trustees on 17 September 2022.
Signed on behalf of the Board of Trustees
................................................... .............................................. Mr Ayub Khan Mr Syed Tohel Ahmed Trustee & Chairman Trustee & Treasurer
The notes on pages 20 to 29 form part of these financial statements.
18
## **EAST LONDON MOSQUE TRUST**
## **(Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2022**
|Notes
**Cash Outflow from Operating Activities**
Operating Surplus
Depreciation
Other Investment Income
(Gain)/Loss on fIxed asset disposal
(Increase)/Decrease in Debtors
(Increase)/Decrease in Stock
Increase/(Decrease) in Creditors
**Cash from Operations**
**Net Cash Generated from Operations**
**Cash Outflow from Investment Activities**
Purchase of Tangible Fixed Assets
Investment in Subsidiary
Fixed assets disposal
Interest / Profit on investment
**Net Cash inflow/outflow from investment Activities**
**Cash Outflow from Financing Activities**
Increase/(Decrease) of Long Term Loan
Increase/(Decrease) of Qard Hasanah (Private Loan)
**Net Increase/(decrease) in Cash and Cash Equivalents**
Opening Cash and Cash Equivalents
Closing Cash and Cash Equivalents
**Reconciliation:**
Cash at bank and in hand|**2022**
**2021**
£
£
£
£
813,614
1,010,538
80,646
83,351
(2,068)
(2,341)
-
-
11,232
(119,127)
422
213
275,840
(1,687)
1,179,686
970,951
1,179,686
970,951
(122,088)
(107,471)
-
-
-
-
2,068
2,341
(120,020)
(105,130)
(141,068)
(134,035)
(262,641)
(403,709)
(68,700)
(202,735)
655,957
663,086
2,080,097
1,417,011
2,736,054
2,080,097
2,736,054
2,080,097
2,736,054
2,080,097|
|---|---|
|||
See Note 36 for analysis of changes in net debt
The notes on pages 20 to 29 form part of these financial statements.
19
**EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
## **1 Accounting Policies**
## **1.1 Basis of preparation of accounts:**
The charitable company is a public benefit entity as defined by FRS 102, and the financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities, preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)- Charities SORP FRS 102, and the Companies Act 2006.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in pound sterling which is the functional currency of the charity.
The principal accounting policies applied in the preparation of these financial statements are set out below.
## **1.2 Going concern:**
The financial statements have been prepared on a going concern basis as the Directors anticipate no material uncertainties exist going forward, and that the expected level of income will support all expenditure for 12 months from the date of authorising these financial statements. The Trust once again has a congregation following easing of lockdown restrictions, which led to some recovery in donations collected. The Trust has a net assets surplus in this financial year. It has sufficient cashflow to continue operations for 12 monts from the signing date.
- **1.3** Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The current designated fund is tied up with fixed assets (See Note 24).
Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The funds are set out in Note 23.
- **1.4 Income recognition:**
All incoming resources are included in the Statement of Financial Activity (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
● Cash donations are recognised on receipt.
● Tuitions Fee income is recognised when entitlement has occurred. Fee Invoices are usually raised at the beginning of the academic year and any income related to future accounting periods are deferred to those periods.
● Investment income is earned through holding property and cash deposits for investment purposes. Rental income is recognised as the charity’s right to receive payment is established. Profit on funds held on deposit is included when receivable and the amount can be measured reliably.
- Hall and room hire income is recognised as at the date of the event.
- Grants for immediate expenditure are accounted for when they become receivable.
## **1.5 Expenditure and irrecoverable VAT:**
All expenditure is accounted for on an accruals basis within the Statement of Financial Activity, and has been classified under headings that aggregate all costs related to that category. Expenditure is recognised once there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Input VAT that cannot be claimed is included in the cost to which it relates.
## **1.6 Allocation of costs:**
Costs are allocated between restricted and unrestricted funds according to the terms of the income. Where items expended are mixed, they are apportioned between the categories according to the income they relate to.
## **1.7 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 charities programmes and activities. Where support costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
20
## **EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
## **1.8 Tangible fixed assets and depreciation:**
Freehold and long leasehold properties are not depreciated as they are maintained at a high standard, thus extending their useful life and residual value. Annual impairment reviews are conducted where assets are not depreciated.
Individual fixed assets costing £500 or more are capitalilsed at cost, and are stated in the accounts at cost less depreciation.
Depreciation is calculated to write off the cost less their estimated residual value, over their expected useful lives on the following basis: Computers and Equipment: 15% Reducing balance. Furniture, Fixtures and fittings 15% Reducing balance.
- **1.9 Investment properties:**
Investment properties are held at fair value, which is measured annually with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.
## **1.10 Investments :**
Investments are recognised initially at fair value, which is normally stated at cost less provision for permanent diminution in value. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA. Other investments are measured at cost less impairment.
## **1.11 Stock:**
Stock held by the entity consists of books and radios. Goods are stated at, the lower of, cost or net realisable value. The cost includes all costs of purchase, any costs of conversion and other costs incurred in bringing the goods to its present location and condition.
## **1.12 Debtors and prepayments:**
Debtors are receivable within one year and/or more than one year recognised at the transaction price. Prepayments are valued at the amount prepaid net of any discounts due.
## **1.13 Creditors and accruals:**
Creditors payable within one year and/or more than one year are recognised at the transaction price. Accruals are valued at the net cost, less any discounts offered.
## **1.14 Loans and borrowings:**
Loans and borrowings are initially recognised at the transaction price, including transaction costs.
Private Loans: "Qard Hasanah" is a interest free loans from the charity's beneficiaries, which only have a moral obligation to repay as per agreement. Qard Hasanah is recognised when received / paid and recorded under liabilities due within one year and/or more than one year.
## **1.15 Provisions:**
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
## **1.16 Pensions:**
Employees of the charity are entitled to join a defined contribution pension scheme. The pension contributions by the charity are charged to the financial statements, and equal or exceed the statutory minimum percentages applied to pensionable earnings.
## **1.17 Taxation:**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **1.18 Group accounting**
The entity has a 100% stake in a dormant subsidiary LMC Limited and a 100% stake in ELMT Waqf Ltd. The latter's total reserves at 31 March 2022 were -£1,496. ELMT has a loan outstanding with ELMT Waqf Ltd., the details of which are discussed in Note 27.
21
## **EAST LONDON MOSQUE TRUST**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **2.**
## **Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 for each member of the charity.
## **Incoming Resources**
|**3**
**4**
**5**
**6**
**7**|**Voluntary Income**
**Note**
General Donations
Archiving Project
MyELM
DOME appeal
Gift Aid
**Activities for Generating Funds**
Hall and Room Hire
Fundraising Activities
Digital Fundraising & Website Advertising
Bookstall and similar sales
Charity package sponsorships
**Investment Income**
Rent and Services Charges
Profit on Bank Deposits and investments
**Income from Charitable Activities**
a) Educational Projects
Al Mizan School
London East Academy
ELM Evening Madrasah
b) Contributions to ELMT for service use
Al Mizan School
London East Academy
c) Other charitable funds
Fitr Fund
Zakat Fund
Welfare Fund
Counselling Projects
Winter Food Project
Kickstarter scheme
Burial Support
Covid 19 Community Support/EECF
Iftar and Itikaf
NHS Community Investment Scheme
Total
The contributions by the schools for use of ELMT facilities are
**Other Incoming Resources**
HMRC Job Retention Scheme
User Groups' Contributions
Weddings and Attestations
Sundry
**Total Income**|**Unrestricted**
**Restricted**
**2022**
**£**
**£**
**£**
956,314
956,314
5,558
5,558
12,124
12,124
241,672
241,672
100,619
100,619
1,069,057
247,230
1,316,287
**Unrestricted**
**Restricted**
**2022**
**£**
**£**
**£**
188,586
188,586
32,185
32,185
256,226
256,226
21,741
21,741
48,033
48,033
546,771
-
546,771
**Unrestricted**
**Restricted**
**2022**
**£**
**£**
**£**
883,073
883,073
2,068
2,068
885,141
-
885,141
**Unrestricted**
**Restricted**
**2022**
**£**
**£**
**£**
454,752
454,752
574,336
574,336
68,330
68,330
-
1,097,418
1,097,418
39,876
39,876
50,528
50,528
90,404
90,404
57,193
57,193
81,545
81,545
63,914
63,914
12,618
12,618
13,750
13,750
7,565
7,565
1,546
1,546
4,293
4,293
25,816
25,816
-
25,816
242,424
268,240
116,220
1,339,842
1,456,062
reflected in the schools' costs in Note 11.
**Unrestricted**
**Restricted**
**2022**
**£**
**£**
**£**
147,783
147,783
5,000
5,000
30,950
30,950
6,008
-
6,008
189,741
-
189,741
**2,806,929**
**1,587,072**
**4,394,001**|**2021**
**£**
1,052,277
47,589
75,917|
|---|---|---|---|
||||1,175,783|
||||**2021**
**£**
4,054
44,073
24,248
6,845
-|
||||79,220|
||||**2021**
**£**
774,202
2,341|
||||776,544|
||||**2021**
**£**
452,195
749,077
58,798|
||||1,260,070
39,876
50,528|
||||90,404
66,982
60,254
15,083
39,600
79,535
34,596
26,469
20,000|
||||342,518|
||||1,692,993
**2021**
**£**
629,435
-
16,270
6,544|
||||652,249|
|||||
||||**4,376,789**|
22
## **EAST LONDON MOSQUE TRUST**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
|**8**
**9**
**10**
**11**|**Expenses Summary**
**Voluntary Cost**
**Note**
Printing and Publicity
Volunteer Expenses
Insurance
Subscriptions
**Fundraising Cost**
Salaries and Employer's NIC
Fundraising Events and Campaigns
Bookstall and Similar Supplies
**Investment Management Costs**
Salaries and Employer's NIC
13
Premises Expenses
13
Insurance
13
Finance Charges
Waqf Ltd.
**Charitable Activities**
Educational Projects
Al Mizan School
London East Academy
Elm Evening Madrasah
Welfare Fund Distribution
Counsellor Fees
NHS Community Investment Scheme
Fitr Fund Distribution
Zakat Fund Distribution
Salaries and Employer's NIC
13
Premises Expenses
13
Archiving Expenses
Baraka Khan Visitor Centre
Winter Food Project
Burial Support
Covid19 Community Support
Iftar and Itikaf Expenses
Telephone, Fax and Internet
13
Computers and IT Expenses
13
Postage and Stationery
13|**Unrestricted**
**Restricted**
**2022**
**2021**
**£**
**£**
**£**
**£**
45,835
45,835
29,202
4,326
4,326
2,314
8,054
8,054
11,136
8,531
8,531
6,564
66,746
-
66,746
49,215
**Unrestricted**
**Restricted**
**2022**
**2021**
**£**
**£**
**£**
**£**
89,600
89,600
60,972
109,802
109,802
75,518
11,262
11,262
6,089
210,664
-
210,664
142,580
**Unrestricted**
**Restricted**
**2022**
**2021**
**£**
**£**
**£**
**£**
95,741
95,741
99,245
89,943
89,943
90,467
8,056
8,056
-
39,722
39,722
46,755
566
566
500
233,462
566
234,028
236,967
**Unrestricted**
**Restricted**
**2022**
**2021**
**£**
**£**
**£**
**£**
444,309
444,309
428,551
565,060
565,060
588,276
74,369
74,369
74,909
-
1,083,739
1,083,739
1,091,736
36,889
36,889
3,000
48,028
48,028
54,478
15,400
15,400
-
55,190
55,190
66,475
90,095
90,095
4,960
-
245,602
245,602
128,913
217,592
217,592
225,556
642,588
642,588
620,904
23,687
23,687
11,642
-
-
2,640
6,249
6,249
13,121
-
55,071
15,844
15,844
9,857
19,574
19,574
21,097
4,680
4,680
4,775
7,513
7,513
7,088
984
984
576
892,930
45,780
938,711
972,328
892,930
1,375,121
2,268,051
2,192,977|
|---|---|---|
23
## **EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
|**12**
**13**|**Support and Governance Costs:**
**Note**
**a) Support Costs**
Salaries and Employer's NIC
13
Insurance
13
Telephone, Fax and Internet
13
Computers and IT Expenses
13
Postage and Stationery
13
Legal and Professional Fees
Training and Courses
Book-Keeping and Accountancy
Bank and Credit Card Charges
Sundry
Depreciation on FF and Equipment
Loss on FA disposal
**b) Governance Costs**
Salaries and Employer's NIC
13
Auditor remuneration
Meetings and Training
Trustee Indemnity insurance
**Total Expenses**
Allocation of Costs:
Ratio
Total
**a) Charitable Activities:**
Cleaning and Support Services
1: 9
309,385
Service Charges
1 : 1
7,303
General Rates and Water
1: 9
28,727
Lighting and Heating
1: 9
153,109
Repairs and Maintenance
1: 9
220,313
718,835
**b) Support Costs:**
Computer and IT Expenses
1 : 1
15,025
Postage and Stationery
1 : 1
1,968
Insurance
24,164
Salaries and Employer's NIC
56:8:11:25
870,369
Telephone, Fax and Internet
1 : 1
9,360
920,886|**Note**
13
13
13
13
13
13
Total
309,385
7,303
28,727
153,109
220,313|**Unrestricted**
**Restricted**
**2022**
**2021**
**£**
**£**
**£**
**£**
487,407
487,407
505,246
8,054
8,054
11,136
4,680
4,680
4,775
7,513
7,513
7,088
984
984
576
41,233
21,000
62,233
20,358
1,002
1,002
600
8,800
8,800
8,800
43,788
43,788
32,390
27,759
27,759
4,685
66,033
66,033
67,196
-
-
697,253
21,000
718,253
662,850
69,630
69,630
72,178
9,160
9,160
9,160
3,643
3,643
324
212
212
-
82,645
-
82,645
81,662
779,897
21,000
800,897
744,512
**2,183,700**
**1,396,687**
**3,580,387**
**3,366,251**
Investment
Support
Governance Voluntary
Mgt cost
Charitable
30,938
278,446
3,652
3,652
4,316
24,411
15,311
137,798
22,031
198,281|
|---|---|---|---|
|||718,835|-
-
-
76,248
642,588|
||||7,513
7,512
984
984
8,054
8,054
8,056
-
487,407
69,630
95,741
217,592
4,680
4,680|
|||920,886|508,637
69,630
8,054
103,797
230,768|
24
## **EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
|**14**
**Tangible Fixed Assets:**
Cost or valuation:
At 1 April 2021
Addition
Gains / (losses) on fair value of Fixed assets
Disposal
Land and Buildings transferred to FA Investment
Depreciation:
At 1 April 2021
Charge for the year
Eliminated by Disposal
Net Book Value
As at 31 March 2022
As at 31 March 2021|Freehold
Leasehold
Investment
Fixtures, Fittings
Land & Buildingand & Building
Properties
& Equipment
Total
£
£
£
£
£
13,281,232
10,456,034
16,049,751
1,571,326
41,358,343
60,000
62,088
122,088
-
-
-|
|---|---|
||13,341,232
10,456,034
16,049,751
1,633,414
41,480,431|
||1,099,087
1,099,087
80,646
80,646
-
-
-
-|
||1,179,733
1,179,733
13,341,232
10,456,034
16,049,751
453,681
40,300,698|
||13,281,232
10,456,034
16,049,751
472,239
40,259,256|
The value of the investment property elements of fixed assets, is comprised from mixed use properties including the LMC Building, Maryam Centre, and the main ELM building, as well as 8 other sole investment properites.
The sole investment properties are based in Maddams Street E3, Ernest Street E1, Eastern Avenue IG2, Ullin Street E14, Prioress House E3, Brimsdown House E3, and Fieldgate Sreet E1.
|Fair Value reconciliation
Cost of investment Properties
Reclassifications and additions
Gains / (losses) on revaluation of Fixed assets|**2022**
**2021**
**£**
**£**
16,049,751
16,049,751
-
-
-
-
16,049,751
16,049,751|
|---|---|
Trustees have considered that no fair value adjustments were required on mixed use land and buildings (with investment element), during the year (see below). Professional valuations were made on all sole investment properties in July 2020. The Trustees have considered that no fair value adjustments are required in the period to March 2022, as local property prices have remained stable in the period.
|**Property**
East London Mosque
London Muslim Centre Including Business Centre
Maryam Centre
Wellands Way (Northampton)|**Cost B/fwd**
**Cost @**
**31.03.2022**
**Additions /**
**Disposals**
**£**
**£**
**£**
5,203,000
5,203,000
-
15,825,000
15,825,000
-
12,650,000
12,710,000
60,000
379,016
379,016
34,057,016
34,117,016
60,000|
|---|---|
The Wellands Way property is owned by ELMT Waqf Ltd. It is currently held for sale. See Note 27 for further details. All sole investment properties are valued as below:
|Total number of properties : 8
**15**
**Debtors & Prepayments:**
Prepayments
Rent and Others
Welfare debtors
Bad debts
Payroll debtors
Job Retention Scheme
Student Fees|**Fair Value**
**B/fwd**
**Fair Value @**
**31.03.2022**
**Gain / (Loss)**
**£**
**£**
**£**
5,730,000
5,730,000
-
**2022**
**2021**
**£**
**£**
68,658
61,016
386,051
488,886
20,000
20,000
(3,000)
(25,390)
532
779
13,048
47,678
340,246
243,798
825,535
836,767|
|---|---|
25
## **EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
|**16**
**Creditors: Falling due within one year**
Other Taxes and Social Security Costs
Trade Creditors
Rent and Hall Hire Deposits
Advance Tuition Fees
Accruals and Deferred Income
Al Rayan (IBB) Bank Loan
Qard Hasanah - Private Loan
Pension Contributions
**17**
**Creditors: Falling due after more than one year**
Qard Hasanah - Private Loan
Bank Loans|**2022**
**2021**
**£**
**£**
41,330
49,260
98,651
102,810
117,142
104,531
532,255
337,150
343,498
259,547
180,789
180,789
1,893,873
1,893,873
13,597
17,339
3,221,139
2,945,299
**2022**
**2021**
**£**
**£**
2,623,932
2,886,573
655,163
796,231
3,279,095
3,682,804|
|---|---|
**18a) Private Loans:** "Qard Hasanah" are loans from the charity's beneficiaries, which are repayable on request. There is no interest due or security given for these loans. Long-term Qard Hasanah loans have been contractually agreed with private individuals, as not repayable within 12 months. Short-term loans can be repayable at any time.
**18b) FRS 102 departure (Private loans disclosure):** FRS102 requires long-term interest-free loans to be stated at their present value. Effectively this would mean loan amounts stated in the account are lower than the actual amounts payable in future. This has potential to confuse the charity's stakeholders, as such the trustees have opted not to follow FRS102 treatment for these loans.
|**18**
**Analysis of Staff Costs:**
Total Salaries
Employer's NIC
Pension Contributions
Total Employment cost
Average number of employees: Support
Average number of employees: Direct charitable
Employees paid in excess of £60,000|**2022**
**2021**
**£**
**£**
1,880,318
1,894,759
134,314
137,146
101,754
96,562
2,116,387
2,128,466
30
33
94
88
124
121
-
1|
|---|---|
26
## **EAST LONDON MOSQUE TRUST**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **19 Trustees' and key management personnel remuneration and expenses**
The trustees neither received nor waived any remuneration during the year (2021: £Nil)
Key management personnel (this excludes all Company directors/trustees) received remuneration of £194,792 during the year (2021: £191,006) including pension costs.
The trustees did not have any expenses reimbursed during the year (2021 - £nil).
## **20 Pensions:**
The charity's pension scheme incorporates a SMART salary sacrifice scheme. It was operated by Supertrust until January 2021, and when the provider exited the market, was resumed by Evolve. The new provider achieved Master Trust authorisation from the Pensions Regulator in April 2019. Employer's contributions made to pension schemes were £96,562 (2021: £79,921), recognised as an expense under staff emoluments.
|**21**
**Deferred income:**
At start 01.04.2021
Additions during the year
Amounts released to income
At end 31.03.2022|**2022**
**2021**
**£**
**£**
552,151
558,220
804,031
552,151
(552,151)
(558,220)
804,031
552,151|
|---|---|
Deferred income occurs where the entity has raised invoices for a service to be provided in the next financial period. This includes:
**Rent and service charges:** Invoices are raised a month in advance of the rent quarter to be billed.
**Hall Hire** : Bookings made for events ocurring in the period after 31st March 2022 (None in this financial year).
**Student fees:** Fees invoices raised at the beginning of the school academic year, but actually pertaining to the next financial year. The academic year crosses 2 financial years, and fees are allocated accordingly. New students awaiting enrolment are also invoiced in advance.
|**22**
**Restricted Fund Movements**
**Capital Grants**
LDA Capital Grant
Sure Start Capital Grant
NRF Capital Grant
ERDF Capital Grant
**41 Fieldgate Street**
**Maryam Academy**
**Educational Projects**
London East Academy
Al Mizan
Evening Madrasah
General Projects
Zakat Fitr Fund
Welfare Funds
Penny Appeal/EECF Counselling Grants
Archiving Project
Baraka Khan Visitor Centre
Winter Food Campaign (Islamic Relief)
Kickstarter scheme
Burial Support
Covid 19 Community Support/EECF
NHS Community Investment Scheme
Waqf
Dome appeal|**Opening**
**Incoming**
**Resources**
**Closing**
**Balance**
**Resources Expended**
**Adjustment**
**Balance**
**01.04.2021**
**31.03.2022**
**£**
**£**
**£**
**£**
**£**
710,750
710,750
258,000
258,000
700,000
700,000
750,000
750,000|
|---|---|
||2,418,750
-
-
-
2,418,750
822,454
822,454
159,131
159,131
303,101
574,336
565,060
312,378
23,644
454,752
444,309
34,087
9,218
68,330
74,369
3,178|
||335,963
1,097,418
1,083,739
-
349,642
-
-
-
65,116
138,738
145,285
58,569
112,460
63,914
36,889
139,486
-
12,618
48,028
35,411
43,083
5,558
23,687
24,954
112,060
-
-
112,060
629
13,750
6,249
8,130
7,565
7,565
24,463
1,546
26,009
24,738
4,293
15,844
13,187
20,000
15,400
4,600
-
566
566
-
241,672
21,000
220,672|
||4,138,847
1,587,072
1,396,687
35,977
4,365,209|
27
## **EAST LONDON MOSQUE TRUST**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
|**23**
**Movement in Funds**
As at 1 April 2021
Current year surplus
Gains / (losses) on revaluation of Fixed assets
Current year transfer
As at 31 March 2022|Unrestricted
Designated
Unrestricted
Restricted
Total
Fund
Fund
Total
Fund
Fund
£
£
£
£
£
1,311,164
31,101,456
32,412,620
4,138,847
36,551,467
623,229
623,229
190,385
813,614
(481,128)
445,151
(35,977)
35,977|
|---|---|
||1,453,265
31,546,607
32,999,872
4,365,209
37,365,081|
Total funds include £726,297 (2021: £643,584) debtors receivable. Approximately £31.5m (2021: £31.1m) of designated funds are tied up in building construction and fixed asset additions. As at the balance sheet date the charitable company has £1.4m free reserves for its day to day operations.
## **24 Taxation**
The entity is exempt from corporation tax, as it engages in charitable activities. Part of rental income is VATable at a rate of Profitable returns within ELMT Waqf Ltd., when generated, are expected to be fully donated to the parent; thus ELMT Waqf, whilst not being tax exempt, is still not expected to incur a Corporation Tax liability, by virtue of donating all returns for charitable purpose.
||purpose.|||
|---|---|---|---|
|**25**|**Auditors' Remuneration**|**2022**|**2021**|
|||**£**|**£**|
||Auditor's Remuneration for the audit of the charity's annual accou|11,250|11,250|
||Fees Payable to the charity's auditor for non-audit services|11,210|11,210|
## **26 Contingent Liabilities**
The entity had no contingent liabilities as at 31 March 2022 nor at 31 March 2021.
## **27 Related Party Transactions**
In December 2020, the Trust made a loan of £400,000 to its subsidiary, ELMT Waqf Ltd, in which one of the Trustees, Ayub Khan shares common directorships with ELMT. Dilowar Hussain Khan, an employee, and Director of Finance at ELMT, is also a director of ELMT Waqf Ltd.
The purpose of ELMT Waqf Ltd is to invest funds entrusted by donors in projects that will help sustain the activities of ELMT in the future. ELMT Waqf Ltd completed the purchase of two plots of land at a cost of £379,016 on Welland Way, in Northampton. The developments have been completed, and the properties have received an offer the estate agent Connell's, has stated as approximately £0.5m. As no formal contracts have been exchanged at the time of signing accounts, there is no post balance sheet event to disclose on a sale. Charities SORP does not require assets held for sale during the year to be disclosed within non-current assets.
None of the directors of ELMT or ELMT Waqf Ltd currently have financial interests associated with either entity.
The loan funds are eliminated on consolidation, as ELMT Waqf Ltd is a fully owned subsidiary of the East London Mosque Trust.
## **28 Volunteers**
The charity benefited from work performed by volunteers, including counting of cash collections, and stewarding during Friday prayers, and Ramadan.
## **29 Capital Commitments**
£210k has been spent to date, on extension work to the Maryam Centre (Phase 3). It is estimated that up to another £2m will be complete this. The works are expected to be completed by the autumn of 2023.
## **30 Government grants**
The entity received total grants of £184,210 to subsidise workforce retention in the financial year, via the HMRC Job Retention
## **31 Grant making**
The entity contracted out delivery of a project around organ donation awareness, to other entities during the year. The initial funding for this project was held as unspent in the last financial year, the donor being the NHS Community Investment Scheme.
## **32 Zakaat and Fitr**
Payments were made after the year-end to several organisations who specialised in these charitable distributions. These included Islamic Relief, Muntada Aid, Human Appeal, Global Relief Trust, Help Yateem, Penny Appeal, and 13 Rivers Trust.
## **33 Events after the reporting period**
An investment of £1m was made into Matz Medical Ltd. in April 2022, as the Trust sought to diversify its investment portfolio. The returns will be generated through advancement of funds for procurement of medical instruments and supplies, by the NHS. In August 2022, the Trust entered into negotiations with another company, as it was exploring a new investment opportunity in property development.
28
## **EAST LONDON MOSQUE TRUST Notes to the Financial Statements for the Year Ended 31 March 2022**
## **36 Analysis of changes in net debt**
The analysis below serves as a note to the consolidated cash flow statement on Page 19:
|Cash
Cash equivalents
Overdraft facility
**Total cash**
Private loans <1 year
Private loans >1 year
Bank loans < 1 year
Bank loans > 1 year
Finance leases
**Total borrowings**
**TOTAL**|At start
Acq/disp
New
Fair value
Forex
Other non-
At end
of year
Cash flows
of subsidiaries finance leases movements movements cash changes
of year
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
2,080,097
655,957
-
-
-
-
-
2,736,055
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|
|---|---|
||**2,080,097**
**663,086**
**2,736,055**|
||(1,893,873)
-
-
-
-
-
-
(1,893,873)
(2,886,573)
262,641
-
-
-
-
-
(2,623,932)
(180,789)
180,789
-
-
-
-
(180,789)
(180,789)
(796,230)
-
-
-
-
-
141,068
(655,162)
-
-
-
-
-
-
-
-|
||**(5,757,465)**
**443,430**
**-**
**-**
**-**
**-**
**39,721**
**-**
**5,353,756**
**-**|
|||
||**(3,677,368)**
**1,106,516**
**-**
**-**
**-**
**-**
**(39,721)**
**(2,617,701)**|
29