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← Muslim Community Of Essex

2023-12-31-accounts

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

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

Trustees' Report and

Unaudited Financial Statements for the Year Ended 31 December 2023

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: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Contents of the Financial Statements for the Year Ended 31 December 2023

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: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Reference and Administrative Details for the Year Ended 31 December 2023

TRUSTEES

TRUSTEES Mr M T Hussain Dr S Naqvi Mr A Rashid Mr F A Shah Mr M Hussain Mr S A R Rizvi Mr M M Jawad 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

Page 1

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Trustees' Report for the Year Ended 31 December 2023

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 2023. 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.

  1. Daily prayer facilities, five times a day including Fajar before the sunrise.

  2. Facilities are provided for Juma prayers every Friday and where participants include other Muslims.

  3. 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 £95,785 (2022: £99,102). At 31 December 2023, the balance on the restricted fund was £44,290 (2022: £44,035). The charity had a deficit of £41,328 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.

Page 2

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Trustees' Report for the Year Ended 31 December 2023

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:

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 September 2024 and signed on its behalf by:

Dr S Naqvi - Trustee

Page 3

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

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 2023.

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:

  1. 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

  2. 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

  3. 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 September 2024

Page 4

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2023

2023
Unrestricted
Restricted
Total
fund
funds
funds
Notes
£
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
63,224
255
63,479
Charitable activities
Charitbale actitivity
13,673
-
13,673
Investment income
2
18,633
-
18,633
Total
95,530
255
95,785
EXPENDITURE ON
Charitable activities
3
Charitbale actitivity
80,326
-
80,326
Other
56,787
-
56,787
Total
137,113
-
137,113
NET INCOME/(EXPENDITURE)
(41,583)
255
(41,328)
Other recognised gains/(losses)
Gains on revaluation of fixed assets
455,510
-
455,510
Net movement in funds
413,927
255
414,182
RECONCILIATION OF FUNDS
Total funds brought forward
951,321
44,035
995,356
TOTAL FUNDS CARRIED FORWARD
1,365,248
44,290
1,409,538		 2022
Total
funds
£
62,778
14,860
21,464
99,102
32,050
53,965
86,015
13,087
-
13,087
982,269
995,356

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 5

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Statement of Financial Position 31 December 2023

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
£
1,126,259
40,000
201,489
241,489
(2,500)
238,989
1,365,248
1,365,248		 Restricted
funds
£
-
-
44,290
44,290
-
44,290
44,290
44,290		 2023
Total
funds
£
1,126,259
40,000
245,779
285,779
(2,500)
283,279
1,409,538
1,409,538
1,365,248
32,854
265
11,171
44,290
1,409,538		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

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Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX (REGISTERED NUMBER: 07759249)

Statement of Financial Position - continued 31 December 2023

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 September 2024 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

Page 7

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements for the Year Ended 31 December 2023

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

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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.

Page 8

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Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

2. INVESTMENT INCOME

Rents received
3.
CHARITABLE ACTIVITIES COSTS
Charitbale actitivity
4.
SUPPORT COSTS
Other resources expended
5.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets		 2023
£
18,633
Grant
Direct
funding of
Costs
activities
£
£
78,166
2,160
Governance
Finance
costs
£
£
61
1,500
2023
£
17,199		 2022
£
21,464
Totals
£
80,326
Totals
£
1,561
2022
£
17,026

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

7. STAFF COSTS

2023 2022
£ £
Wages and salaries 7,724 8,548
7,724 8,548
The average monthly number of employees during the year was as follows:
2023 2022
Volunteers 15 15

No employees received emoluments in excess of £60,000.

Page 9

continued...

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

8.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
62,778
Charitable activities
Charitbale actitivity
14,860
Investment income
21,464
Total
99,102
EXPENDITURE ON
Charitable activities
Charitbale actitivity
32,050
Other
53,965
Total
86,015
NET INCOME
13,087
RECONCILIATION OF FUNDS
Total funds brought forward
938,234
TOTAL FUNDS CARRIED FORWARD
951,321
9.
TANGIBLE FIXED ASSETS
Improvements
Freehold
to
property
property
£
£
COST OR VALUATION
At 1 January 2023
828,200
43,218
Revaluations
455,510
-
At 31 December 2023
1,283,710
43,218
DEPRECIATION
At 1 January 2023
99,070
43,218
Charge for year
16,564
-
Revaluation adjustments
43,076
-
At 31 December 2023
158,710
43,218
NET BOOK VALUE
At 31 December 2023
1,125,000
-
At 31 December 2022
729,130
-		 Restricted
funds
£
-
-
-
-
-
-
-
-
44,035
44,035
Fixtures
and
fittings
£
2,528
-
2,528
634
635
-
1,269
1,259
1,894		 Total
funds
£
62,778
14,860
21,464
99,102
32,050
53,965
86,015
13,087
982,269
995,356
Totals
£
873,946
455,510
1,329,456
142,922
17,199
43,076
203,197
1,126,259
731,024		 Total
funds
£
62,778
14,860
21,464
99,102
32,050
53,965
86,015
13,087
982,269
995,356

Page 10

continued...

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2023 is represented by:

Freehold
property
£
Valuation in 2019
349,147
Valuation in 2023
455,510
Cost
479,053
1,283,710
10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Prepayments and accrued income
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
Accrued expenses
12.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Khums - S Imam
Khums - S Saadat
Building fund
TOTAL FUNDS		 Improvements
to
property
£
-
-
43,218
43,218
At 1/1/23
£
951,321
32,599
265
11,171
44,035
995,356		 Fixtures
and
fittings
£
-
-
2,528
2,528
2023
£
40,000
2023
£
1,000
1,500
2,500
Net
movement
in funds
£
413,927
255
-
-
255
414,182		 Totals
£
349,147
455,510
524,799		 Totals
£
349,147
455,510
524,799		 Totals
£
349,147
455,510
524,799
1,329,456
2022
£
30,000
2022
£
1,000
2,945
3,945
At
31/12/23
£
1,365,248
32,854
265
11,171
44,290
1,409,538		 2022
£
30,000
2022
£
1,000
2,945
3,945

Page 11

continued...

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

12. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
95,530
(137,113)
Restricted funds
Khums - S Imam
255
-
TOTAL FUNDS
95,785
(137,113)
Comparatives for movement in funds
At 1/1/22
£
Unrestricted funds
General fund
938,234
Restricted funds
Khums - S Imam
32,599
Khums - S Saadat
265
Building fund
11,171
44,035
TOTAL FUNDS
982,269
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
99,102
TOTAL FUNDS
99,102		 Gains and
Movement
losses
in funds
£
£
455,510
413,927
-
255
455,510
414,182
Net
movement
At
in funds
31/12/22
£
£
13,087
951,321
-
32,599
-
265
-
11,171
-
44,035
13,087
995,356
Resources
Movement
expended
in funds
£
£
(86,015)
13,087
(86,015)
13,087		 Gains and
Movement
losses
in funds
£
£
455,510
413,927
-
255
455,510
414,182
Net
movement
At
in funds
31/12/22
£
£
13,087
951,321
-
32,599
-
265
-
11,171
-
44,035
13,087
995,356
Resources
Movement
expended
in funds
£
£
(86,015)
13,087
(86,015)
13,087
13,087

Page 12

continued...

Docusign Envelope ID: 8662E33A-FA22-4026-8BA2-AC1EC7B8DB65

MUSLIM COMMUNITY OF ESSEX

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

12. MOVEMENT IN FUNDS - continued

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 1/1/22
£
938,234
32,599
265
11,171
44,035
982,269		 Net
movement
At
in funds
31/12/23
£
£
427,014
1,365,248
255
32,854
-
265
-
11,171
255
44,290
427,269
1,409,538

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 194,632 (223,128) 455,510 427,014
Restricted funds
Khums - S Imam 255 - - 255
TOTAL FUNDS 194,887 (223,128) 455,510 427,269

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.

Page 13