DocuSign Envelope ID: 27AF953C-2E79-4FF3-B30A-DF55FCD03C37
REGISTERED COMPANY NUMBER: 07759249 (England and Wales) REGISTERED CHARITY NUMBER: 1143799
Trustees' Report and
Unaudited Financial Statements for the Year Ended 31 December 2020
for
MUSLIM COMMUNITY OF ESSEX (A COMPANY LIMITED BY GUARANTEE)
HMR Accountants Co. Ltd 148 Manor Park Road Harlsden NW10 4JR
DocuSign Envelope ID: 27AF953C-2E79-4FF3-B30A-DF55FCD03C37
MUSLIM COMMUNITY OF ESSEX
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Trustees' Report | 2 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Statement of Financial Position | 6 | to | 7 |
| Notes to the Financial Statements | 8 | to | 13 |
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MUSLIM COMMUNITY OF ESSEX
Reference and Administrative Details for the Year Ended 31 December 2020
TRUSTEES Mr M T Hussain Mr R R Mawji Mr S M U H Naqvi Dr S Naqvi Mr A Rashid Mr F A Shah Mr M Hussain (appointed 14.11.20) Mr S A R Rizvi (appointed 14.11.20) Mr A M Umlai (appointed 14.11.20) REGISTERED OFFICE 874 Eastern Avenue Ilford Essex IG2 7HY REGISTERED COMPANY NUMBER 07759249 (England and Wales) REGISTERED CHARITY NUMBER 1143799 INDEPENDENT EXAMINER HMR Accountants Co. Ltd 148 Manor Park Road Harlsden NW10 4JR SOLICITORS Woodgrange Solicitors LLP 46 Woodgrange Road Forest Gate London E7 0QH ADVISERS HM Accountax Ltd 86-90 Paul Street London EC2A 4NE
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MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)
Trustees' Report for the Year Ended 31 December 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Muslim Community of Essex's objective is to advance the religion of Islam and education, the provision of social and religious welfare activities and to provide relief of poverty among Shia Muslims.
Significant activities
The charity provides facilities for observing the important events in the Shia calendar.
1.There are approximately 125 days of importance in the calendar which are marked by observations with special functions. These include the fasting month of Ramadhan and the mourning month of muharram.
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Daily prayer facilities, five times a day including Fajar before the sunrise.
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Facilities are provided for Juma prayers every Friday and where participants include other Muslims.
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Education facilities including madressa.
Public benefit
The trustees have considered the general guidance on public benefit issued by the Charities Commission and have taken due regard of that guidance. The trustees consider that they are satisfied that the charity's activities do provide a public benefit.
FINANCIAL REVIEW
Financial position
The results for the year are as shown in the financial statements. The statement of financial activities shows the incoming resources and the resources expended by the different activities conducted under the Charity's name. In order to provide a better understanding of the activities undertaken, a summary and analysis of the activities is included.
The Trustees confirm that the annual report and financial statements of MCE comply with the current statutory requirements of the Charity's governing document and the provisions of the applicable charities Statement of Recommended Practice (SORP), UK Accounting Standards and the Charities Act 2011.
The Statement of Financial Activities shows how the Charity's funds have been applied during the year. The gross receipts of the Charity were £63,996 (2019: £120,477). At 31 December 2020, the balance on the restricted fund was £42,285 (2019: £36,650). The charity had a surplus of £10,600 for the year.
Reserves policy
The trustees aim to ensure that sufficient funds are maintained to enable the trust to carry out its activities.
FUTURE PLANS
The charity will continue to focus on promoting the advancement of Islamic religion among the shia muslims. It will also continue to improve the facilities provided at MCE.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Muslim Community of Essex (“MCE”) is a company limited by guarantee incorporated on 1 September 2011.
The charitable company is governed by a Memorandum and Articles of Association. It was registered as a charity with the Charity Commission on 14 September 2011.
In the event of the charitable company being wound up members are required to contribute an amount not exceeding £1.
Recruitment and appointment of new trustees
The charity is governed by a board of trustees drawn from local community. This is to ensure that the board has skills and experience required to oversee the management of the charity and its operation.
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MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)
Trustees' Report for the Year Ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Induction and training of new trustees
All new trustees receive a planned induction programme before taking up their place on the board. This includes an explanation of their roles and responsibilities, an induction to other trustees, an overview of the recent business and an explanation of board format and process.
Key management remuneration
The trustees are considered to be the key management personnel of of the charity, in charge of directing and controlling the charity and running its day to day operations. All trustees give of their time freely and no trustee remuneration was paid in the year.
Trustees are required to disclose all relevant interests and register them with Board of Trustees, and, in accordance with trusts policy, withdraw from decision where a conflict of interest arises.
Details of trustee expenses and related party transactions are disclosed in notes to the accounts.
Related parties
The Charity does not hold assets on behalf of any another Charity, company or individual.
Risk management
The trustees have examined the major strategic, business and operational risks which the trust faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks
STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE INDEPENDENT EXAMINER:
In so far as the trustees are aware:
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there is no relevant accounting information of which the charity's independent examiner are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant accounting information and to establish that the independent examiner are aware of that information.
TRUSTEES' RESPONSIBILITY STATEMENT
The trustees (who are also the directors of Muslim Community Of Essex for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
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 those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which 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 the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 14 November 2021 and signed on its behalf by:
Dr S Naqvi - Trustee
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Independent Examiner's Report to the Trustees of Muslim Community Of Essex (Registered number: 07759249)
Independent examiner's report to the trustees of Muslim Community Of Essex ('the Company') I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Rizwan Kiyani ACCA HMR Accountants Co. Ltd 148 Manor Park Road Harlsden NW10 4JR
14 November 2021
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MUSLIM COMMUNITY OF ESSEX
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2020
| 2020 Unrestricted Restricted Total fund funds funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 29,843 5,585 35,428 Charitable activities Charitbale actitivity 6,533 - 6,533 Other trading activities 2 - 50 50 Investment income 3 21,984 - 21,984 Total 58,360 5,635 63,995 EXPENDITURE ON Raising funds Raising donations and legacies 4 - - - - - - Charitable activities 5 Charitbale actitivity 31,108 - 31,108 Other 22,287 - 22,287 Total 53,395 - 53,395 NET INCOME 4,965 5,635 10,600 Other recognised gains/(losses) Gains on revaluation of fixed assets - - - Net movement in funds 4,965 5,635 10,600 RECONCILIATION OF FUNDS Total funds brought forward 934,215 36,650 970,865 TOTAL FUNDS CARRIED FORWARD 939,180 42,285 981,465 |
2019 Total funds £ 52,067 45,611 - 22,799 |
|---|---|
| 120,477 100 |
|
| 100 50,429 49,930 |
|
| 100,459 | |
| 20,018 349,147 |
|
| 369,165 601,700 |
|
| 970,865 |
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
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MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)
Statement of Financial Position 31 December 2020
| Notes FIXED ASSETS Tangible assets 10 CURRENT ASSETS Debtors 11 Cash at bank and in hand CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds: General fund Restricted funds: Khums - S Imam Khums - S Saadat Building fund TOTAL FUNDS |
Unrestricted fund £ 762,344 43,000 134,836 177,836 (1,000) 176,836 939,180 939,180 |
Restricted funds £ - - 42,285 42,285 - 42,285 42,285 42,285 |
2020 Total funds £ 762,344 43,000 177,121 220,121 (1,000) 219,121 981,465 981,465 939,180 30,849 265 11,171 42,285 981,465 |
2019 Total funds £ 784,598 28,000 159,267 187,267 (1,000) 186,267 970,865 970,865 934,215 25,264 265 11,121 36,650 970,865 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)
Statement of Financial Position - continued 31 December 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 14 November 2021 and were signed on its behalf by:
Mr M T Hussain - Trustee
Mr A M Umlai - Trustee
Mr F A Shah - Trustee
Dr S Naqvi - Trustee
The notes form part of these financial statements
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Charity information
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost Improvements to property - 20% on cost
Taxation
As the Charity is not registered for VAT, all costs shown are inclusive of VAT. The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | |||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| Exceptional items | 50 | - |
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
3. INVESTMENT INCOME
| Rents received 4. RAISING DONATIONS AND LEGACIES Support costs 5. CHARITABLE ACTIVITIES COSTS Charitbale actitivity 6. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Depreciation - owned assets Other operating leases |
2020 £ 21,984 2020 £ - Grant Direct funding of Costs activities £ £ 30,578 530 2020 £ 22,254 138 |
2019 £ 22,799 |
|---|---|---|
| 2019 £ 100 Totals £ 31,108 |
||
| 2019 £ 25,250 5,327 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
8. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| Wages and salaries The average monthly number of employees during the year was as follows: Volunteers |
2020 £ 3,870 3,870 2020 12 |
2019 £ 13,902 |
| 13,902 | ||
| 2019 12 |
No employees received emoluments in excess of £60,000.
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Charitbale actitivity Investment income Total EXPENDITURE ON Raising funds Raising donations and legacies Charitable activities Charitbale actitivity Other Total NET INCOME Other recognised gains/(losses) Gains on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 10. TANGIBLE FIXED ASSETS COST At 1 January 2020 and 31 December 2020 DEPRECIATION At 1 January 2020 Charge for year At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Unrestricted fund £ 41,934 45,611 22,799 110,344 100 100 50,429 49,930 100,459 9,885 349,147 359,032 575,183 934,215 Improvements Freehold to property property £ £ 828,200 43,218 49,378 37,571 16,564 5,647 65,942 43,218 762,258 - 778,822 5,647 |
Restricted funds £ 10,133 - - 10,133 - - - - - 10,133 - 10,133 26,517 36,650 Fixtures and fittings £ 215 86 43 129 86 129 |
Total funds £ 52,067 45,611 22,799 120,477 100 100 50,429 49,930 100,459 20,018 349,147 369,165 601,700 970,865 Totals £ 871,633 87,035 22,254 109,289 762,344 784,598 |
Total funds £ 52,067 45,611 22,799 |
|
|---|---|---|---|---|---|
| 120,477 100 |
|||||
| 100 50,429 49,930 |
|||||
| 100,459 | |||||
| 20,018 349,147 |
|||||
| 369,165 601,700 |
|||||
| 970,865 | |||||
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Prepayments and accrued income 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 13. MOVEMENT IN FUNDS Unrestricted funds General fund Restricted funds Khums - S Imam Khums - S Saadat Building fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund Restricted funds Khums - S Imam Building fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Restricted funds Khums - S Imam Khums - S Saadat Building fund TOTAL FUNDS |
At 1/1/20 £ 934,215 25,264 265 11,121 36,650 970,865 Incoming resources £ 58,360 5,585 50 5,635 63,995 At 1/1/19 £ 575,183 15,241 265 11,011 26,517 601,700 |
2020 2019 £ £ 43,000 28,000 2020 2019 £ £ 1,000 1,000 Net movement At in funds 31/12/20 £ £ 4,965 939,180 5,585 30,849 - 265 50 11,171 5,635 42,285 10,600 981,465 Resources Movement expended in funds £ £ (53,395) 4,965 - 5,585 - 50 - 5,635 (53,395) 10,600 Net movement At in funds 31/12/19 £ £ 359,032 934,215 10,023 25,264 - 265 110 11,121 10,133 36,650 369,165 970,865 |
2019 £ 28,000 2019 £ 1,000 At 31/12/20 £ 939,180 30,849 265 11,171 |
2019 £ 28,000 |
2019 £ 28,000 |
|---|---|---|---|---|---|
| 2019 £ 1,000 |
|||||
| 42,285 | |||||
| 981,465 | |||||
| 36,650 | |||||
| 970,865 |
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
13. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Khums - S Imam Building fund TOTAL FUNDS |
Incoming resources £ 110,344 10,023 110 10,133 120,477 |
Resources expended £ (100,459) - - - (100,459) |
Gains and Movement losses in funds £ £ 349,147 359,032 - 10,023 - 110 - 10,133 349,147 369,165 |
Gains and Movement losses in funds £ £ 349,147 359,032 - 10,023 - 110 - 10,133 349,147 369,165 |
|---|---|---|---|---|
| 10,133 | ||||
| 369,165 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Restricted funds Khums - S Imam Khums - S Saadat Building fund TOTAL FUNDS |
At 1/1/19 £ 575,183 15,241 265 11,011 26,517 601,700 |
Net movement in funds £ 363,997 15,608 - 160 15,768 379,765 |
At 31/12/20 £ 939,180 30,849 265 11,171 |
|---|---|---|---|
| 42,285 | |||
| 981,465 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 168,704 | (153,854) | 349,147 | 363,997 |
| Restricted funds | ||||
| Khums - S Imam | 15,608 | - | - | 15,608 |
| Building fund | 160 | - | - | 160 |
| 15,768 | - | - | 15,768 | |
| TOTAL FUNDS | 184,472 | (153,854) | 349,147 | 379,765 |
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MUSLIM COMMUNITY OF ESSEX
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
14. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
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