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← Mustafa Welfare Society Bolton

2024-03-31-accounts

Charity Registration No. 1144639

MUSTAFA WELFARE SOCIETY BOLTON

A C C O U N T S For the year ended 31 March 2024

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PHILIP BURLEY & CO
Chartered Accountants
WHITBY
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MUSTAFA WELFARE SOCIETY BOLTON

I N D E X

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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

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Registered Number 1144639
Trustees/ Dr Syed Nayyer Raza Syed Farhad Raza Naqvi
Executive Committee Dr Syed Mohammad Tabani Israr Hussain Shah
(demitted 4 February 2024) Syed Raza Abbas
Dr Syed Naseer Haider Naqvi Syed Muzamal Hussain (appointed 4 February 2024)
Syed Mazhar Ul Hassan Muzafar Hussain (appointed 4 February 2024)
Arsul Hussain
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 2024

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. The last election was held on 4 February 2024 when 9 members were elected to the Executive Committee, as listed in the Statement of Officers. 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 three occasions. There was one general body meeting in the year. 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 4 January 2025. 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 2024

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 roof. 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 the reslating of the entire centre roof, and knocking off the lath and plaster finish. As it is a major job, the roof works are being carried out in sections. Work started in November 2021 and is likely to be completed in 2025. First, the roof of the far end of the building (rented premises) was repaired as it was the most affected. In the year 2021-22, a total of £19,000 was spent on the roof. During the year 2022-2023, roof work was completed on the next section (back of the building), approximately 25% of the roof, at a cost of over £32,000 (reslating the roof, removal of lath and plaster, new ceiling and lights, repainting of the section). Towards the end of the year 2023-23, work started on the third section (front of the building). This work was much more extensive as the section in question had not been renovated before. Work on the third section was completed in 2023-24. The total cost of the works for this section was £105,000. The public address system in a part of the building was also updated at a cost of £6,000. Fund raising continued throughout the year, to fund all the building works. The heating pipework was partitioned and a third boiler was installed to make the heating of the building more efficient and reliable.

Review of Developments, Activities and Achievements During the Year and of Future Prospects

Religious

During the year ended 31 March 2024, 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.

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. During the islamic month of Ramadan, over 30 days, daily lectures are held followed by congregational prayers and breaking of the fast. At the end of the month, the centre organises a thanksgiving feast. In the month of muharram, daily lectures are held for the first ten days, to mark this important period in the islamic calendar. Throughout the year, events are held to mark special occasions, with recitation, lectures, and handing out of food parcels. The community supports these programmes by way of donations. 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 others, including fellow human beings, animals, plants and environment. 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.

MUSTAFA WELFARE SOCIETY BOLTON

Page 4

Trustees' Report (continued) For the year ended 31 March 2024

Review of Developments, Activities and Achievements During the Year and of Future Prospects, continued

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. Individuals responsible for the smooth running of the school hold responsible daytime jobs.

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 more than 100 children enrolled for various classes. Critical thinking is encouraged in the students, particularly the teenagers. 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.

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.

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. Every Thursday, food parcels are distributed to those attending the lecture. Sometimes, sit down meals are served. 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.

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 2024 were £105,047 (2023: £152,171), excluding tangible assets and the associated liabilities.

Page 5

MUSTAFA WELFARE SOCIETY BOLTON

Trustees' Report (continued) For the year ended 31 March 2024

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 29 January 2025

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:

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 2024

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 2024.

Responsibilities and basis of report

As the trustees of the charity 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 charity's financial statements 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

29 January 2025

Page 8

MUSTAFA WELFARE SOCIETY BOLTON

Statement of Financial Activities For the year ended 31 March 2024

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Unrestricted Restricted Total Unrestricted Restricted Total
Note funds funds 2024 funds funds 2023
£ £ £ £ £ £
Income from:
Donations and legacies 2a 5,812 58,825 64,637 9,961 26,001 35,962
Charitable activities 2b 93,618 - 93,618 108,625 - 108,625
Total incoming resources 99,430 58,825 158,255 118,586 26,001 144,587
Expenditure on:
Charitable activities 3 99,236 13,764 113,000 69,151 11,696 80,847
Total resources expended 99,236 13,764 113,000 69,151 11,696 80,847
Net income/(expenditure)
and net movement in funds for the year 194 45,061 45,255 49,435 14,305 63,740
Transfer between funds 99,913 (99,913) - 51,678 (51,678) -
Net movement in funds for the year 100,107 (54,852) 45,255 101,113 (37,373) 63,740
Reconciliation of funds
Total funds brought forward 566,546 92,757 659,303 465,433 130,130 595,563
Total funds carried forward 7 666,653 37,905 704,558 566,546 92,757 659,303
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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 2024

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Note 2024 2023
£ £ £ £
Fixed assets 4
Tangible assets 677,141 590,788
Current assets
Cash at bank 105,982 153,155
105,982 153,155
Creditors: amounts falling due
within one year 5 (7,143) (7,526)
Net current assets 98,839 145,629
Total assets less current liabilities 775,980 736,417
Creditors: amounts falling due
after one year 6 (71,422) (77,114)
704,558 659,303
Funds 7
Unrestricted funds 666,653 566,546
Restricted funds 37,905 92,757
704,558 659,303
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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 29 January 2025

MUSTAFA WELFARE SOCIETY BOLTON

Page 10

1 Accounting Policies

For the year ended 31 March 2024

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 Accounting convention

The financial statements have been prepared in accordance with the the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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 2024

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 2024

2a
Donations and legacies
Donations
Gift Aid tax receipts
2b Charitable activities
Membership subscriptions
Niaz
Muharram
Khums
Fundraising
Sunday School
Rental
Sundry receipts		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
2024
funds
funds
2023
£
£
£
£
£
£
5,812
58,825
64,637
9,961
26,001
35,962
-
-
-
-
-
-
5,812
58,825
64,637
9,961
26,001
35,962
14,280
-
14,280
13,860
-
13,860
1,367
-
1,367
810
-
810
18,807
-
18,807
13,070
-
13,070
3,804
-
3,804
20,670
-
20,670
20,865
-
20,865
22,578
-
22,578
5,419
-
5,419
5,590
-
5,590
14,250
-
14,250
20,050
-
20,050
14,826
-
14,826
11,997
-
11,997
93,618
-
93,618
108,625
-
108,625

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
Sundry expenses
Restricted expenditure
Repairs and renewals
Depreciation		 Total
Total
2024
2023
£
£
3,282
1,268
3,360
2,166
8,610
8,266
12,530
9,172
21,226
19,715
21,489
10,244
2,743
2,452
1,906
5,875
522
504
255
245
4,248
3,736
6,121
4,066
12,775
1,311
169
131
2,404
2,335
11,360
9,361
113,000
80,847

Included above are governance costs of £522 (2023: £504) which include independent examination fees of £522 (2023: £504).

MUSTAFA WELFARE SOCIETY BOLTON

Page 13

Notes on the Accounts (continued) For the year ended 31 March 2024

5
6		 Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 1 April 2023
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
£
£
£
617,022
32,383
649,405
99,913
2,048
101,961
716,935
34,431
751,366
33,616
25,001
58,617
11,360
4,248
15,608
44,976
29,249
74,225
671,959
5,182
677,141
583,406
7,382
590,788
2024
2023
£
£
6,117
6,542
1,026
984
7,143
7,526
24,469
26,166
46,953
50,948
71,422
77,114

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 2024

7a Movements on funds

At 1 April 2023
Net income/(expenditure) for the year
Transfers between funds
At 31 March 2024
Movements on funds (comparative funds)
At 1 April 2022
Net income/(expenditure) for the year
Transfers between funds
At 31 March 2023		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
566,546
92,757
659,303
194
45,061
45,255
99,913
(99,913)
-
666,653
37,905
704,558
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
465,433
130,130
595,563
49,435
14,305
63,740
51,678
(51,678)
-
566,546
92,757
659,303

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 2024 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 2023 were represented by:
Tangible assets
Net current assets
Creditors: amounts falling due after 1 year		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
639,236
37,905
677,141
98,839
-
98,839
(71,422)
-
(71,422)
666,653
37,905
704,558
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
498,031
92,757
590,788
145,629
-
145,629
(77,114)
-
(77,114)
566,546
92,757
659,303

10 Related party transactions

There were no related party transactions in the year to 31 March 2024 (2023: none).