2022-12-31-accounts - Muslim Community Of Essex

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

REGISTERED COMPANY NUMBER: 07759249 (England and Wales) REGISTERED CHARITY NUMBER: 1143799

Trustees' Report and

Unaudited Financial Statements for the Year Ended 31 December 2022

for

MUSLIM COMMUNITY OF ESSEX (A COMPANY LIMITED BY GUARANTEE)

HM Accountax Ltd Chartered Certified Accountants 86-90 Paul Street Islington London EC2A 4NE

DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX

Contents of the Financial Statements for the Year Ended 31 December 2022

		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

DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX

Reference and Administrative Details for the Year Ended 31 December 2022

TRUSTEES Mr M T Hussain Mr R R Mawji (resigned 31.12.22) Mr S M U H Naqvi (resigned 31.12.22) Dr S Naqvi Mr A Rashid Mr F A Shah Mr M Hussain Mr S A R Rizvi Mr A M Umlai (resigned 31.12.22) Mr M M Jawad Director (appointed 12.10.22) REGISTERED OFFICE 874 Eastern Avenue Ilford Essex IG2 7HY REGISTERED COMPANY NUMBER 07759249 (England and Wales) REGISTERED CHARITY NUMBER 1143799 INDEPENDENT EXAMINER HM Accountax Ltd Chartered Certified Accountants 86-90 Paul Street Islington London EC2A 4NE SOLICITORS Woodgrange Solicitors LLP 46 Woodgrange Road Forest Gate London E7 0QH

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Trustees' Report for the Year Ended 31 December 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The 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.

Daily prayer facilities, five times a day including Fajar before the sunrise.
Facilities are provided for Juma prayers every Friday and where participants include other Muslims.
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 £99,102 (2021: £60,485). At 31 December 2022, the balance on the restricted fund was £44,035 (2021: £44,035). The charity had a surplus of £13,087 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.

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Trustees' Report for the Year Ended 31 December 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

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.

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:

there is no relevant accounting information of which the charity's independent examiner are unaware; and - 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.

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 30 October 2023 and signed on its behalf by:

Dr S Naqvi - Trustee

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

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 2022.

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:

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
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
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.

Muhammad Husnain Haider FCCA, ACA

HM Accountax Ltd Chartered Certified Accountants 86-90 Paul Street Islington London EC2A 4NE

30 October 2023

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2022

2022 Unrestricted Restricted Total fund funds funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 62,778 - 62,778 Charitable activities Charitbale actitivity 14,860 - 14,860 Investment income 2 21,464 - 21,464 Total 99,102 - 99,102 EXPENDITURE ON Charitable activities 3 Charitbale actitivity 32,050 - 32,050 Other 53,965 - 53,965 Total 86,015 - 86,015 NET INCOME 13,087 - 13,087 RECONCILIATION OF FUNDS Total funds brought forward 938,234 44,035 982,269 TOTAL FUNDS CARRIED FORWARD 951,321 44,035 995,356	2021 Total funds £ 33,766 7,895 18,824
	60,485
	33,466 26,215
	59,681
	804 981,465
	982,269

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Statement of Financial Position 31 December 2022

Notes FIXED ASSETS Tangible assets 9 CURRENT ASSETS Debtors 10 Cash at bank CREDITORS Amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 12 Unrestricted funds: General fund Restricted funds: Khums - S Imam Khums - S Saadat Building fund TOTAL FUNDS	Unrestricted fund £ 731,024 30,000 194,242 224,242 (3,945) 220,297 951,321 951,321	Restricted funds £ - - 44,035 44,035 - 44,035 44,035 44,035	2022 Total funds £ 731,024 30,000 238,277 268,277 (3,945) 264,332 995,356 995,356 951,321 32,599 265 11,171 44,035 995,356	2021 Total funds £ 745,737 18,000 219,532 237,532 (1,000) 236,532 982,269 982,269 938,234 32,599 265 11,171 44,035 982,269

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

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

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The notes form part of these financial statements

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Statement of Financial Position - continued 31 December 2022

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

The financial statements were approved by the Board of Trustees and authorised for issue on 30 October 2023 and were signed on its behalf by:

Mr M T Hussain - Trustee

Mr M Hussain - Trustee

Mr F A Shah - Trustee

Dr S Naqvi - Trustee

The notes form part of these financial statements

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements for the Year Ended 31 December 2022

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.

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.

2. INVESTMENT INCOME

INVESTMENT INCOME
	2022	2021
	£	£
Rents received	21,464	18,824

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MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

3. CHARITABLE ACTIVITIES COSTS

Grant Support Direct funding of costs (see Costs activities note 4) £ £ £ Charitbale actitivity 30,023 600 1,427 SUPPORT COSTS Governance Finance costs £ £ Charitbale actitivity 77 1,350 NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): 2022 £ Depreciation - owned assets 17,026	Totals £ 32,050
	Totals £ 1,427 2021 £ 16,607

4. SUPPORT COSTS

5. NET INCOME/(EXPENDITURE)

6. TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

7. STAFF COSTS

STAFF COSTS
	2022	2021
	£	£
Wages and salaries	8,548	8,614
	8,548	8,614
The average monthly number of employees during the year was as follows:
	2022	2021
Volunteers	15	15

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 2022

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 32,016 Charitable activities Charitbale actitivity 7,895 Investment income 18,824 Total 58,735 EXPENDITURE ON Charitable activities Charitbale actitivity 33,466 Other 26,215 Total 59,681 NET INCOME/(EXPENDITURE) (946) RECONCILIATION OF FUNDS Total funds brought forward 939,180 TOTAL FUNDS CARRIED FORWARD 938,234 9. TANGIBLE FIXED ASSETS Improvements Freehold to property property £ £ COST At 1 January 2022 828,200 43,218 Additions - - At 31 December 2022 828,200 43,218 DEPRECIATION At 1 January 2022 82,506 43,218 Charge for year 16,564 - At 31 December 2022 99,070 43,218 NET BOOK VALUE At 31 December 2022 729,130 - At 31 December 2021 745,694 -	Restricted funds £ 1,750 - - 1,750 - - - 1,750 42,285 44,035 Fixtures and fittings £ 215 2,313 2,528 172 462 634 1,894 43	Total funds £ 33,766 7,895 18,824 60,485 33,466 26,215 59,681 804 981,465 982,269 Totals £ 871,633 2,313 873,946 125,896 17,026 142,922 731,024 745,737	Total funds £ 33,766 7,895 18,824
			60,485
			33,466 26,215
			59,681
			804 981,465
			982,269

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MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 £ 18,000 2021 £ 1,000 - 1,000 At 31/12/22 £ 951,321 32,599 265 11,171	2021 £ 18,000	2021 £ 18,000
		2021 £ 1,000 -
		1,000
44,035
995,356
	13,087

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MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1/1/21
£
Unrestricted funds
General fund
939,180
Restricted funds
Khums - S Imam
30,849
Khums - S Saadat
265
Building fund
11,171
42,285
TOTAL FUNDS
981,465
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
58,735
Restricted funds
Khums - S Imam
1,750
TOTAL FUNDS
60,485
A current year 12 months and prior year 12 months combined position is as follows:
At 1/1/21
£
Unrestricted funds
General fund
939,180
Restricted funds
Khums - S Imam
30,849
Khums - S Saadat
265
Building fund
11,171
42,285
TOTAL FUNDS
981,465

Net
movement
At
in funds
31/12/21
£
£
(946)
938,234
1,750
32,599
-
265
-
11,171
1,750
44,035
804
982,269
Resources
Movement
expended
in funds
£
£
(59,681)
(946)
-
1,750
(59,681)
804
Net
movement
At
in funds
31/12/22
£
£
12,141
951,321
1,750
32,599
-
265
-
11,171
1,750
44,035
13,891
995,356

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DocuSign Envelope ID: 980470CB-9EBE-4998-BC4F-68A7DB06AD96

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

12. MOVEMENT IN FUNDS - continued

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

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	157,837	(145,696)	12,141
Restricted funds
Khums - S Imam	1,750	-	1,750
TOTAL FUNDS	159,587	(145,696)	13,891

13. RELATED PARTY DISCLOSURES

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

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