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.
2. Daily prayer facilities, five times a day including Fajar before the sunrise.
3. Facilities are provided for Juma prayers every Friday and where participants include other Muslims.
4. 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:
- 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 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
3. 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
4. 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
- (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
Page 6
continued...
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
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**
## **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