**Charity Registration No. 1144639** ## **MUSTAFA WELFARE SOCIETY BOLTON** **A C C O U N T S For the year ended 31 March 2022** **----- Start of picture text -----**
PHILIP BURLEY & CO
Chartered Accountants
WHITBY
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## **MUSTAFA WELFARE SOCIETY BOLTON** ## **I N D E X** |**Statement of Officers**|Page 1| |---|---| |**Trustees' Report**|Page 2| |**Statement of Trustees' Responsibilities**|Page 6| |**Independent Examiner's Report**|Page 7| |**Statement of Financial Activities**|Page 8| |**Balance Sheet**|Page 9| |**Accounting Policies**|Page 10| |**Notes on the Accounts**|Page 12| **MUSTAFA WELFARE SOCIETY BOLTON** Page 1 **Statement of Officers** **----- Start of picture text -----**
Registered Number 1144639
Trustees/ Dr Syed Nayyer Raza Arsul Hussain
Executive Committee Dr Syed Mohammad Tabani Syed Farhad Raza Naqvi
Dr Syed Naseer Haider Naqvi Israr Hussain Shah
Syed Mazhar Ul Hassan Syed Raza Abbas (appointed
1 April 2021)
Principal Address 2 Thorns Road
Bolton
BL1 6NX
Principal Banker HSBC
1-3 Victoria Square
Bolton
BL1 1RJ
Independent Examiner MRC Sheen FCA
Philip Burley & Co
28 Bagdale
Whitby
YO21 1SN
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**MUSTAFA WELFARE SOCIETY BOLTON** Page 2 ## **Trustees' Report For the year ended 31 March 2022** Mustafa Welfare Society Bolton ("the Charity") was established in July 2010 and was registered as a charity on 11 November 2011. It was originally governed by a Trust Deed dated 6 March 2011, which was subsequently amended on 6 November 2011. The day to day management of the Charity is conducted by the Executive Committee. This consists of up to 12 members elected during the annual general meeting by the members of the Charity. After their election, the Executive Committee members elect from among themselves the officers of the Charity. These now consist of the Treasurer and the Secretary. The chairperson is by rotation. In addition to the elected members, there are up to three co-opted or non-voting members. During the last year, the Executive Committee has held a meeting on eight occasions. Decisions are made either unanimously or by a majority vote. Accounts are maintained by the Treasurer. There was a detailed inspection of all the receipts and expenses by the Executive Committee on 18 December 2022. The accounts have then been examined by an independent examiner MRC Sheen of the firm Philip Burley & Co. The Trustees who served during the year are listed on page 1. ## **Objects** The Objects of the Charity are: To promote the benefit of the inhabitants of the North West of the United Kingdom (the area of benefit) and, in particular, the Shia Muslim inhabitants of Bolton, Lancashire by associating together the said inhabitants and the local authorities, voluntary and other organisations in a common effort: (1) To advance the Islamic religion for the public benefit according to the Shia Muslim doctrine (Fiqah-e-Jaffria); this is based on the teachings of the Holy Quran, The Holy Prophet (PBUH) and the teachings of the Holy Ahlulbayt, as interpreted and codified by eminent, mainstream jurists of the time (Marajah e Uzzam) from the Shia school of jurisprudence in Najaf or Qom; and to promote religious harmony. (2) To advance the education, including the religious education, of the said inhabitants. (3) To provide or assist in the provision of sporting facilities for the youth from the said inhabitants, in the public benefit. (4) To provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life. **MUSTAFA WELFARE SOCIETY BOLTON** Page 3 ## **Trustees' Report (continued) For the year ended 31 March 2022** The Charity acquired its current premises in October 2012, and has developed it into a Community Centre. The principal activity of the Charity in the year under review was to continue to refurbish its Community Centre and maintain and manage the same in furtherance of the above Objects. The centre roof is large in size and very old. No felt had been used in the construction of the ceiling. Lath and plaster finish had been used in the original ceiling and this has begun to deteriorate. There were multiple problems with leaks and hence the charity commenced reslating of the entire centre roof, and knocking off the lathe and plaster finish. As it is a major job, the roof works will be carried out in sections. Work started November 2021 and is likely to be completed in 2024. During this year, a total of £19,000 was spent on the roof (one complete section and initial payment for the next section). The public address system in a part of the building was also updated at a cost of £6,000. Fund raising is in progress to fund these improvements. ## **Review of Developments, Activities and Achievements During the Year and of Future Prospects** ## _Religious_ During the year ended 31 March 2022, the charity carried out a number of activities to meet the religious needs of the Bolton population. These included congregational prayers and lectures on Thursday evening and Friday lunchtime. Throughout the year, lectures were also held to mark other religious occasions. During the year, the COViD regulations were gradually eased and, by the end of the year, the programme frequency had returned to pre-COViD levels. Prior to the Charity starting its work, no facilities for worship existed for the Shia Muslim community of Bolton Metropolitan Borough Council and the surrounding towns of Chorley, Wigan, Warrington, Chester and Blackpool and the cities of Preston and Liverpool. The Shia inhabitants of this very large catchment area had to travel all the way to Manchester for this purpose. This caused great hardship. Now people from this large area come to the community centre in Bolton. Thus, the Charity has provided an unmet need. The acts of worship carried out at the centre give meaning to the lives of the worshippers, help to enhance their spirituality and provide them with an ethical and moral framework which offers personal comfort and also benefits the wider society. People are not charged any fee for carrying out acts of worship at the centre. These facilities for worship are open for use by Shias and by non-Shias alike. We no longer have a full-time pastor and invite visiting pastors to lead worship. ## _Educational_ The Charity arranges a religious educational meeting every Thursday evening. In addition to this, we also have regular visiting speakers (male and female) who deliver lectures in English and Urdu. All speakers have to conform to a code of conduct, as outlined in our constitution, clause 15, subclause 14. The congregation is of all ages. In addition to acts of worship, Islam places great emphasis on the rights of other living beings, including fellow human beings, animals and plants. The speakers emphasise that such rights need to be respected by a good Muslim. The members of the Executive Committee are present during these lectures and monitor them. We are subscribed to promoting only mainstream and moderate interpretations of Islamic faith, as defined in the Objects of our governing document. In addition to doctrinal discussions, the lecturers are encouraged to bring Islam ‘to life’ by highlighting their application to day to day living. For example, the application of honesty, truthfulness and integrity to daily life. This should produce better citizens, benefiting the public at large. Through the course of the year, face to face meetings gradually replaced online meetings, as the COViD restrictions were lifted. The Charity also runs a Sunday School (Al-Hujjat Academy) in the community centre. The school delivers religious education to children of all ages. The medium of instruction is English. The school is run like a British school, with the usual safeguards and policies in place. The school Principal and other individuals responsible for the smooth running of the school hold responsible daytime jobs. **MUSTAFA WELFARE SOCIETY BOLTON** Page 4 **Trustees' Report (continued) For the year ended 31 March 2022** ## **Review of Developments, Activities and Achievements During the Year and of Future Prospects, continued** Like all other activities and benefits pursued by the Charity, this was also an unmet need. The Sunday School has become a great success. Currently, we have approximately 40 children enrolled for various classes. This is since COViD when the school became online. Pupils hail from Bolton and from neighbouring towns and cities. Most of the children are of Shia parents. However, there are some children from non-Shia backgrounds as well. We do not exclude anyone from the school on religious or any other grounds. Since the end of March 2020, and during the period covered by this report, the school has been running online due to the COViD restrictions. We hope to develop a sense of purpose and spirituality in the students and provide them with a robust moral and ethical framework to live their lives while at the same time discouraging the emergence of extremism, delinquency and promoting religious harmony. This will help them to take their position as socially responsible adults who will be fully integrated in the wider community. ## _Sport_ Our community centre building was acquired in October 2012. We are in the process of redecorating it, and will arrange physical fitness opportunities as soon as this has been completed. The Charity is very keen to provide this service. This initiative has been on hold since April 2020 due to the COViD pandemic. ## _Social welfare_ The Charity organises social events in the centre on a regular basis. People from the congregation attend, along with people who do not attend the worship sessions. This takes the form of ‘get togethers’ where people chat and interact with each other. Food is provided. Every Thursday, these sessions take place after the educational sessions. There is no charge for attending or for the food. Members bring in food by rotation. These 'get together' sessions are also held on special occasions. These sessions provide an opportunity for the development of a support structure. Some individuals who attend are otherwise quite isolated, due to frailty, lack of relatives or because they are new to the area. It makes them feel supported, and may be the only time in the week when they can interact with others. During this year, opportunities for social interaction gradually improved as activities returned to pre-COViD levels. The elderly are a vulnerable group and had tended to stay away from the centre but gradually returned as the restrictions were relaxed. The charity's social media presence has mitigated the lockdown situation to some degree. ## **Review of Results for the Year** The results for the year are set out in detail on page 8 in the Statement of Financial Activities. ## **Reserves Policy** The immediate targets for the Charity are to complete the renovation of the community centre and to repay the bank loan. There continues to be focused fundraising activities to generate the funds required to meet these targets. The Trustees will seek to maintain sufficient unrestricted funds to cover any unexpected costs which cannot be met from annual funding income. Free reserves at 31 March 2022 were £137,703 (2021: £95,695), excluding tangible assets and the associated liabilities. Page 5 ## **MUSTAFA WELFARE SOCIETY BOLTON** **Trustees' Report (continued) For the year ended 31 March 2022** ## **Public Benefit Statement** Each year, the Trustees review the Objects and activities of the Charity to ensure that they continue to reflect the Charity's aims and to provide public benefit. The Trustees consider that they have complied with their duties under section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charities Commission. Faith gives meaning to people's lives and contributes to their well-being. It offers a vision for peace and harmony and provides a moral and ethical foundation to support people in serving the community at every level. **Signed on behalf of the Trustees on 26 January 2023** **Dr Syed Nayyer Raza** **MUSTAFA WELFARE SOCIETY BOLTON** Page 6 **Statement of Trustees' Responsibilities** The Charities Act 2011 and the Statement of Recommended Practice require the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity at the end of the period and of the surplus or deficit of the Charity for that period. In preparing those financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards and the statements of recommended - prepare the financial statements on the going concern basis unless it is inappropriate to The responsibilities of the Trustees include keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011. The Trustees are also responsible for safeguarding the Charity's assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. **Independent Examiner's Report to the Trustees of MUSTAFA WELFARE SOCIETY BOLTON For the year ended 31 March 2022** Page 7 I report to the trustees on my examination of the financial statements of Mustafa Welfare Society Bolton (the charity) for the year ended 31 March 2022. This report is made solely to the charity’s trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity, the charity’s members as a body and the charity’s trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed. ## **Responsibilities and basis of report** As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the Trust as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination. I 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. **MRC Sheen FCA Philip Burley & Co Chartered Accountants 28 Bagdale Whitby YO21 1SN** 26 January 2023 Page 8 ## **MUSTAFA WELFARE SOCIETY BOLTON** ## **Statement of Financial Activities For the year ended 31 March 2022** **----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
Note funds funds 2022 funds funds 2021
£ £ £ £ £ £
Income from:
Donations and legacies 2a 27,887 10,011 37,898 73,839 1,300 75,139
Charitable activities 2b 92,576 - 92,576 66,599 - 66,599
Total incoming resources 120,463 10,011 130,474 140,438 1,300 141,738
Expenditure on:
Charitable activities 3 53,171 15,823 68,994 50,951 11,660 62,611
Total resources expended 53,171 15,823 68,994 50,951 11,660 62,611
Net income/(expenditure)
and net movement in funds for the year 67,292 (5,812) 61,480 89,487 (10,360) 79,127
Transfer between funds 17,000 (17,000) - 2,428 (2,428) -
Net movement in funds for the year 84,292 (22,812) 61,480 91,915 (12,788) 79,127
Reconciliation of funds
Total funds brought forward 381,141 152,942 534,083 289,226 165,730 454,956
Total funds carried forward 7 465,433 130,130 595,563 381,141 152,942 534,083
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The Statement of Financial Activities incorporates the Charity's Income and Expenditure Account for the year. All incoming resources and resources expended derive from continuing activities. Page 9 ## **MUSTAFA WELFARE SOCIETY BOLTON** ## **Balance Sheet At 31 March 2022** **----- Start of picture text -----**
Note 2022 2021
£ £ £ £
Fixed assets 4
Tangible assets 548,057 535,795
Current assets
Cash at bank 138,663 96,175
138,663 96,175
Creditors: amounts falling due
within one year 5 (8,210) (7,730)
Net current assets 130,453 88,445
Total assets less current liabilities 678,510 624,240
Creditors: amounts falling due
after one year 6 (82,947) (90,157)
595,563 534,083
Funds 7
Unrestricted funds 465,433 381,141
Restricted funds 130,130 152,942
595,563 534,083
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We approve the accounts, as set out on pages 8 to 15, and confirm that we have made available all relevant records and information for their preparation. ## **Signed on behalf of the Trustees:** **Dr Syed Nayyer Raza** 26 January 2023 **MUSTAFA WELFARE SOCIETY BOLTON** Page 10 ## **1 Accounting Policies** **For the year ended 31 March 2022** ## **Charity information** Mustafa Welfare Society is an unincorporated charity governed by a trust deed. The registered office is 2 Thorns Road, Bolton, BL1 6NX. ## **1.1 Basis of accounting** The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Incoming resources** All income is accounted for on a receivable basis, except where the conditions for receipt are uncertain. ## **1.3 Going concern** At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees' continue to adopt the going concern basis of accounting in preparing the accounts. ## **1.4 Fund accounting** Unrestricted funds are incoming resources receivable or generated for the Objects of the Charity, without restriction, and are available as general funds to be applied as the Charity sees fit. Restricted funds are to be used for a specific purpose as stipulated by the donor or funding bodies. **MUSTAFA WELFARE SOCIETY BOLTON** Page 11 **Accounting Policies (continued) For the year ended 31 March 2022** ## **1.5 Tangible fixed assets and depreciation** Tangible fixed assets are capitalised at their purchase price together with any incidental costs of acquisition. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at a rate calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Fixtures and fittings 25% on cost Freehold property is being depreciated at 2% per annum, based on the estimated cost of the buildings within freehold property, as the land element is not a depreciating asset. ## **1.6 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand. ## **1.8 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Page 12 ## **MUSTAFA WELFARE SOCIETY BOLTON** ## **Notes on the Accounts** ## **For the year ended 31 March 2022** - **2 Income from:** |**2a**
**Donations and legacies**
Donations
Gift Aid tax receipts
**2b Charitable activities**
Membership subscriptions
Muharram
Khums
Fundraising
Sunday School
Rental
Sundry receipts|**Unrestricted**
**Restricted**
**Total**
Unrestricted
Restricted
Total
**funds**
**funds**
**2022**
funds
funds
2021
**£**
**£**
**£**
£
£
£
**11,334**
**10,011**
**21,345**
35,714
1,300
37,014
**16,553**
**-**
**16,553**
38,125
-
38,125
**27,887**
**10,011**
**37,898**
73,839
1,300
75,139
**13,314**
**-**
**13,314**
11,174
-
11,174
**8,985**
**-**
**8,985**
17,091
-
17,091
**24,025**
**-**
**24,025**
4,650
-
4,650
**22,006**
**-**
**22,006**
8,186
-
8,186
**1,391**
**-**
**1,391**
3,700
-
3,700
**9,440**
**-**
**9,440**
13,430
-
13,430
**13,415**
**-**
**13,415**
8,368
-
8,368
**92,576**
**-**
**92,576**
66,599
-
66,599| |---|---| ## **3 Charitable expenditure** |Unrestricted expenditure
Niaz
Sunday School
Aalim
Muharram
Fundraising events
Utilities
Insurance
Repairs and renewals
Legal & professional fees
Finance charges
Depreciation
Loan interest
Donations
Restricted expenditure
Repairs and renewals
Depreciation|**Total**
Total
**2022**
2021
**£**
£
454
-
1,950
2,520
9,020
3,535
5,944
9,807
14,615
11,649
6,542
6,932
2,237
2,408
6,590
8,696
480
660
47
-
2,698
-
2,594
2,744
-
2,000
7,495
2,546
8,328
9,114
**68,994**
**62,611**| |---|---| Included above are governance costs of £480 (2021: £660) which include independent examination fees of £480 (2021: £660). **MUSTAFA WELFARE SOCIETY BOLTON** Page 13 ## **Notes on the Accounts (continued) For the year ended 31 March 2022** - **4 Tangible fixed assets** |**5**
**6**|_Cost_
At 1 April 2021
Additions
**At 31 March 2022**
_Depreciation_
At 1 April 2021
Charge for the year
**At 31 March 2022**
_Net book value_
**At 31 March 2022**
At 1 April 2021
**Creditors: amounts falling due within one year**
Bank loan
Other creditors
**Creditors: amounts falling due after one year**
Bank loan (falling due in less than 5 years)
Bank loan (falling due in more than 5 years)|**Freehold**
**Fixtures and**
**property**
**fittings**
**Total**
**£**
**£**
**£**
548,344
21,945
570,289
17,000
6,288
23,288
**565,344**
**28,233**
**593,577**
15,927
18,567
34,494
8,328
2,698
11,026
**24,255**
**21,265**
**45,520**
**541,089**
**6,968**
**548,057**
532,417
3,378
535,795
**2022**
2021
**£**
£
**7,250**
7,250
**960**
480
**8,210**
7,730
**29,000**
29,000
**53,947**
61,157
**82,947**
90,157| |---|---|---| The bank loan is secured on the freehold property owned by the Charity. Page 14 ## **MUSTAFA WELFARE SOCIETY BOLTON** ## **Notes on the Accounts (continued) For the year ended 31 March 2022** ## **7a Movements on funds** |At 1 April 2021
Net income/(expenditure) for the year
Transfers between funds
**At 31 March 2022**
**Movements on funds (comparative funds)**
At 1 April 2020
Net income/(expenditure) for the year
Transfers between funds
**At 31 March 2021**|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
381,141
152,942
534,083
67,292
(5,812)
61,480
17,000
(17,000)
-
**465,433**
**130,130**
**595,563**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
289,226
165,730
454,956
89,487
(10,360)
79,127
2,428
(2,428)
-
**381,141**
**152,942**
**534,083**| |---|---| ## **7b Movements on funds (comparative funds)** The restricted funds relate to monies which were received for renovation and maintenance of the freehold property, including any expenditure which has been capitalised. ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration, benefits or expenses during the year. Page 15 ## **MUSTAFA WELFARE SOCIETY BOLTON** ## **Notes on the Accounts (continued) For the year ended 31 March 2020** |**9a**
**Analysis of net assets between funds**
Fund balances at 31 March 2022 were represented by:
Tangible assets
Net current assets
Creditors: amounts falling due after 1 year
**9b**
**Analysis of net assets between funds (comparative year)**
Fund balances at 31 March 2021 were represented by:
Tangible assets
Net current assets
Creditors: amounts falling due after 1 year|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
417,927
130,130
548,057
130,453
-
130,453
(82,947)
-
(82,947)
465,433
130,130
595,563
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
382,853
152,942
535,795
88,445
-
88,445
(90,157)
-
(90,157)
381,141
152,942
534,083| |---|---| ## **10 Related party transactions** There were no related party transactions in the year to 31 March 2022 (2021: none).