Charity Registeration Number 1131928 UNITY WELFARE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
UNITY WELFARE FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Board of Trustees Mohammad Inham Uddin Hussain Ahmed Saiful Alom Muhammed Shayesta Miah Shah Muhammed Anas Mohammed Moinul Haque Choudhury Mohammed Azizur Rahman Registered Charity Number 1131928 Registered Office 9 whIell Road Plaistow London E13 8BP Banks HSBC Lloyds Natwest Barclays Independent Examiner Rakibul Ahsan ACCA Elite Accountancy 102 Mile End Road London E14UN
UNITY WELFARE FOUNDATION Report and accounts Contents Page Trustees, Report Independent Examniers, Report Financial Overview Statement of Financial Activities Balance sheet Notes to the Financial Statements 7-15
TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their report and financial statements for the year ended 31 MARCH 2024. 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 trust's Igoverning document], 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)" Objectlves and activities The main policy adopted in furtherance of these objects is the running of a mosque and maktsb in the UK and overses and there has been no change in this during the year. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake. Achlevements and perforniance Details of the development, activities and achievements of the trust during the year are set out in the separate annual report. Financial revlew There was a surplus of donations received over costs incurred during the year as shown in the attached accounts. The surplus will be put towards the remaining costs of completing the mosque building and repaying related loans. It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to beeen three and six month's expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Structure, governance and management The trust was estsblished by a charitsble trust deed on 30 September 2009 The trustees who served during the year and up to the date of signature of the financial statements were: Mohammad Inham Uddin Hussain Ahmed Saiful Alom Muhammed Shayesta Miah Shah Muhammed Anas Mohammed Moinul Haque Choudhury Mohammed A2izur Rahman New trustees are appointed by existing trustees as need arises. Page I
TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The trust is overseen by the trustees who meet regularly during the year. Imams are employed to lead the worship services, teach the Islamic faith, look after the mosque and assist in the religious performances preparatory to the congregational prayers. They also provide advice on moral upbringing to help reduce drug- taking and other ills affecting society. The trustees expect to soon introduce a core curriculum syllabus for boys and girls. The trustees, report was approved by the Board of Trustees. Hussain Ahmed Chairman Dated: Page 2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UNITY WELFARE FOUNDATION I report to the truslees on my examination of the financial statements of Unity Welfare Foundation for the year ended 31 MARCH 2024. Responsiblllties and basis of report As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the trust's financial statements carried out under section 145 of 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 Examinerfs Statement Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. l understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 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.. accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act., or the financial statements do not accord with those records., or the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I don't have any 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. Rakibul Ahsan ACCA Dated. Z3/04 /Y2 Elite Accountancy 102 Mile End Road London E14UN Page 3
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UNITY WELFARE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted Funds Funds 2024 2024 Total Unrestricted Restricted Funds Funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies Investment income from the properties Other income 98,629 61,706 122 98,629 61.706 122 98,087 71,210 18,256 98,087 71,210 18,256 Total Income 160,457 180,457 187,553 187,553 enditure on: Charitable activitses 119,412 119,412 116,600 116,600 Net {expenditure)lin¢ome for the yearl Net movement In funds 41,045 41.045 70,954 70.954 Fund balance at 1 April 202312022 1.132,706 1.132,706 1.061,752 1,tJ81.752 Fund balance al 31 March 202412023 1.173,751 1.173.751 1,132,706 1,132.706 The finantial statements were approved by the Trustees on.. 16 january 2025 and si8ned on its behalf by.. Hussain Ahmed Chairman Saiful Alom Trustee Page 5
UNITY WELFARE FOUNDATION Balance Sheet As at 31 March 2024 2024 2023 Notss Fixed assets Tangible assets Investment properties 1.782,491 1.993,031 3.775,522 1.783.041 1,993,031 3,776,072 Current assets Cash al bank and in hand 14 60,608 183,463 10 {173,5001 Creditors: amounts falling due within one year (2,5001 Net current assetsl(liabiltties) 3.662,630 3,957,035 Creditors: amounts falling due in more than one year 11 (2.488,8801 (2,824,330) Total assets less current liabilities 1,173.750 1,132.705 Income funds Unreslricted funds Restricted funds 12 1,173.751 1.132.706 1.173,751 1.132,706 The financial statements were approved by the Trustees on.. 16 January 2025 and signed on its behalf by- Hussain Ahmed Chairman Salful Alom Trustee Page 6
UNITY WELFARE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcies Charity Infomiation Unity Welfare Foundation is an unincorporated charitable trust. l. l Accounting convention The financial statements have been prepared in accordance with the trust's constitution, 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 1021 (effective 1 January 2019)" The trust is a Public Benefit Entity as defined by The trust 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 have departed from the Charities (Accounts and Reports} Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going conrn 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 Restricted funds are subject to specifi'c 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. 1.4 Incoming resources Income is recognised when the trust 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 trust 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 trust 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 Page 7
UNITY WELFARE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1.5 Resources expended Expenditure is charged in the accounts at the time when a liability to make payment is incurred 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-. Fixtures, fittings & equipment 100/0 p.a. on cost The gain or loss arising on the disposal of an asset Is determined as the difference beeen the sale proceeds and the carrying value of the asset, and is recognised in net incomel(expenditure) for the year. 1. 7 Impairment of fixed assets At each reporting end date, the trust 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 Investment Property Investment Propety applies to the accounting for property (land andlor buildings) held to earn rentals or for capital appreciation lor both). Investment properties are initially measured at cost and may be subsequently will be measured using a cost model or fair value model, with changes In the fair value under the fair value model being recognised in profit or loss No depreciation will be charged for the investment properties. 1.9 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. Bank overdrafts are shown within borrowings in current liabilities. 1. 10 Financial instruments The trust has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the trust's balance sheet when the trust 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. Page 8
UNITY WELFARE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Basic flnanclal assets Basic financial assets, which include deblors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic flnancial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective Interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the trust's contractual obligations expire or are discharged or 1. 11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Critical accounting estimates and judgements In the application of the trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Page 9
UNITY WELFARE FOUNDATION NotrES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 3 Donations and legacles Unrestricted funds Restricted funds Tolal Unrestricted funds Restricted funds Total 2024 2024 2024 2023 2023 2023 Donalion and gifts Colleclion from Mosque Maktab fee 53,773 44,856 53,773 44,856 48,874 35,438 13.775 98,087 48,874 35,438 13,775 98,087 98,629 98,629 3.1 Rental Income from Invetment Propertles 2024 2023 29 Hunter Rd 25 Carmen St 9 Whilwell Rd 140 High Street 4,610 28,050 21,600 16,950 71.210 28,050 33.656 61,706 3.2 Other In¢ome 2024 2023 Other income Profil from sale of Propety 122 32 18.224 18.256 122 4 Charltable activities Expenditure Charitable activities Charitable activmies 2023 2024 Staff costs (UK Programfflel Staff costs (Overses Programmel Direct Cost IUK Programrnel Other direct (Overseas Aid) Other direct Activities costs 38,201 18,661 11,753 16.169 240 85.024 27,286 1,500 34,787 32,810 4Q5 96,788 Analysis of support costs (see note 5} Analysis of governance costs Isee note . 31,888 2.500 119,412 18,612 1,200 116,600 Analysis by fund Unrestricted funds Restricted funds 119,412 116.600 119.412 116,600 Page 10
UNITY WELFARE FOUNDATION NOYES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 5 Support costs Goveman¢e costs 2024 Governance costs 2023 Support cost Support cost Staff cost Deprecialion Expenditure on Investment properties Administration costs Bank Charge Professional & Legal Fee 730 550 15,968 964 400 730 550 15.968 964 400 2,500 20,382 550 23,841 7,182 315 550 23,841 7,182 315 2,500 34,388 2,500 2.500 2,500 2,500 31,888 18,612 Analysed between Charitable activities 31,888 2,500 34,388 18,612 2,500 20,382 Governance costs includes payments to the independenl examiner of £2.50012023-£2.500) for independent examination and accountancy fees. 6 Trustees Two trustees who are aslo the staffs has received salary during the year and other than those turstees, no other trustees receive any rumenartion from the charity during the period.12023-Twol. 7 Employees Numbei of empoyees The average monthly number of empoyees during the year was.. 2024 Number 2023 Number Permanent Volunteer Employment costs 2024 2023 Wages and salaries 38,201 38.201 28,016 28,016 There were no employees whose annual remuneration was £60000 or more Page 11
UNITY WELFARE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 8 Tangibale fixed assets Freehold Computers & Fixtures & Properties software fittings Total Cost At 1 April 2023 Additions Disposals At 31 March 2024 Depreciation and Impainnent At 1 April 2023 Deprecialion charged in Ihe year Eliminated in respecl of disposals At 31 March 2024 1,782,770 390 5,495 1.788,655 1,782,770 390 5,495 1.788,655 390 5,224 550 5,614 550 390 5,774 6,164 Carying value as at 31 March 2024 1,782.770 279 1.782,491 Carrylng value as at 31 March 2023 1,782,770 271 1.783,041 9 Investment properties 2024 2023 191 Dersingham 189 Dersingham Avenue 27 Rutland Rd 140 High Sl 420. 188 376,407 471,659 724,777 1,993.031 420,188 376,407 471.659 724,777 1,993.031 10 Creditors.. Amounts falling due wlthin one year 2024 2023 Other creditors Advance received from propety sales127 Rutland Rdl 3,500 170,000 173,500 2,500 2,500 11 Creditors: Amounts falling due in more than one year 2024 2023 Qard Hasanah Opening balance Add. Receipt during the period Less.. Payment during the year 2,824.330 2,553,430 496,050 1,278,400 1831,5001 {1,007,5(10) Outstanding balance of Qard Hasana 2,488,880 2,824,330 Page 12
UNITY WELFARE FOUNDATION NO'fES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12 Unrestricted funds The income funds of the chanty include restricted funds comprising the following unexpended balances of donations and grants held on trusl for specific purposes.. Movement in funds Balance at In¢omlng Resourcès Balance at resources expended 1 April 2023 Movement in funds Incoming Resources resources Expended Balance at 31 March 2024 2022 Fund 1.061,752 1,061,752 187,553 187,553 {116,6001 1,132.706 1116,600) 1.132,706 160,457 160,457 119,4121 (119,4121 1,173,751 1,173,751 13 Analysis of net assets between funds Unrestricted Restrlcted Tolal Unrestricted Restrfcted Total funds 2024 funds 2024 funds 2023 funds 2023 2024 2023 Nel assets 1,173,751 1,173,751 1,173,751 1,173,751 1.132,706 1,132,706 1,132,706 1,132,706 14 Cash and cash equlvalenls Opening balance 1 April 2023 Closlng Opening balance 31 balance 1 March 2024 April 2022 Cash flow movement Closlng balance 31 March 2023 Cash flow movement 183,463 {122,8551 60,608 229.196 (45,733} 183,463 15 Relatsd paty transacllons There are no disclosable related paty transactions during the year12023-none) Page 13