Registered number 07885475 Charity number 1146042
Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee)
Report and Accounts
For the Year ended
31 March 2022
## **Oakensen Limited**
Chartered Accountants 31 Stallard Street Trowbridge Wiltshire BA14 9AA
## **Al-Habib Islamic Educational and Cultural Centre Swindon**
## **(A company limited by guarantee) Trustees Annual Report**
The trustees, who are also directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2022.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and activities**
The main objectives of the charity are to advance Islamic awareness for the benefit of the community in accordance with the statements of belief, advance the education of Muslim inhabitants, provide facilities for religious worship, secure the establishment of an Islamic centre, promote other charitable activities and provide general advice to residents in the Swindon area. The aim of the charity is to provide for the cultural and educational needs of Muslims with a view to creating a healthy existence amongst wider communities.
## **Achievements and performance**
All volunteers have returned to normal responsibilities and have started post-pandemic activities in the upkeep of Al-Habib Islamic Centre and liaising with communities. While keeping health and safety measures in place, we were able to carry out some important events to support large charitable projects:
1. Organised a large representative event with all Muslim organisations in Swindon to support a new large cancer treatment hospital run by Imran Khan. This new modern hospital is being constructed in the city of Karachi, Pakistan, however a significant contribution has been made by communities living
2. New schools visited us and others have show interest in our activities.
3. Social events were held designed to bring life to "New normality."
4. Full restoration of religious and educational activities.
The total income received during the period was £155,086 (2021 - £128,818) and total expenses were £104,335 (2021 - £77,358) leaving a net surplus of £50,751 (2021 - £51,460) which is carried forward to next year.
## **Reserves policy**
The charity has a reserve policy that the unrestricted reserves should be at least £25,000.
## **PLANS FOR FUTURE PERIODS**
We will continue to draw a longer-term plan in association with Swindon Borough Council and our members on assessing the needs for the post pandemic period and for years to come. Until then we will continue to work safely with all communities, multifaith organisation and local authorities to further the welfare of Swindon inhabitants. We already have firm commitment to provide legal, social and general advice from our office located on Manchester Road, formerly known as Millen Advice Point. We aim to upgrade the building to comply with safety regulations and are drawing plans for facilities provisions for the future i.e. toilets, extension and maintenance.
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## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Trustees Annual Report**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Charity number: 1146042 Company number: 07885475 Registered Office: 88 Chapel Street, Swindon, Wiltshire, SN2 8DA
## **Our Advisors**
Examiners: Oakensen Bankers: Lloyds, 5 High Street, Swindon, SN1 3EN **Directors and trustees** Directors Mr Abdul Latif Mr Atiff Ghafar Mr Syed Safdar Ali Naqvi Mr Khan Ahmad Nawaz Elected trustees Mr Mahmood Ahmad Mr Mohammad Jahangeer Mr Tariq Mahmood Mr Waseem Shahzad Mr Taimur Shahid Rafique Mr Muhammad Munir Secretary Mr Abdul Latif
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document**
Al-Habib Islamic Educational and Culture Centre Swindon is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 16th December 2011, and amended by special resolutions dated 17th February 2012 and 8th July 2019. A code of conduct has been agreed by the management committee and it is a part of the governing document.
## **Appointment of Trustees**
Trustees are appointed by the members and no more than 15 trustees can be elected at one time.
## **Risks**
The charity relies on grants and donations, and rent from the hire of its premises, to fund its operations. As far as is possible the trustees limit expenditure to the availability of resources.
2
## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Trustees Annual Report**
## **RESPONSIBILITIES OF THE TRUSTEES**
The trustees (who are also the directors of Al-Habib Islamic Educational and Cultural Centre Swindon for the purpose of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- - make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are also responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the board on
……………………………………. Mr Abdul Latif Trustee
……………………………………. Mr Mahmood Ahmad Trustee
3
## **Al-Habib Islamic Educational and Cultural Centre Swindon**
## **(A company limited by guarantee) Independent examiner's report**
I report on the accounts of the charity for the year ended 31 March 2022, set out on pages 5 to 10.
## **Responsibilities and basis of report**
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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 which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts s out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accoun 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 attentio should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **David Oakensen FCA**
Independent Examiner
## **Oakensen Limited**
Chartered Accountants 31 Stallard Street Trowbridge Wiltshire BA14 9AA
4
## **Al-Habib Islamic Educational and Cultural Centre Swindon**
(A company limited by guarantee)
## **Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 March 2022**
|**INCOME AND ENDOWMENTS FROM:**
Income from donations and legacies
**2**
Income from charitable activities
**3**
Interest receivable
Other operating income
**4**
**TOTAL INCOME AND ENDOWMENTS**
**EXPENDITURE ON:**
Direct charitable expenditure
**5**
Management and administration
**6**
**TOTAL EXPENDITURE**
**Net income**
**Gross transfers between funds**
**Gains and losses on revaluation of fixed assets**
**Reconciliation of funds:**
**Total funds at 1 April 2021**
**Total funds at 31 March 2022**|**Unrestricted**
**Funds**
**£**
106,077
40,939
8
-
147,024
88,991
2,702
91,693
55,331
-
-
55,331
845,874
901,205|**Restricted**
**Funds**
**£**
-
-
-
8,062
8,062
8,062
-
8,062
-
-
228,000
228,000
-
228,000|**Total**
**Funds 2022**
**£**
106,077
40,939
8
8,062
155,086
97,053
2,702
99,755
55,331
-
228,000
283,331
845,874
1,129,205|**Total**
**Funds 2021**
**£**
68,323
23,841
9
36,645
128,818
75,751
1,607
77,358
51,460
-
-
51,460
794,414
845,874|
|---|---|---|---|---|
5
## **Al-Habib Islamic Educational and Cultural Centre Swindon (Company Number 07885475)**
## **(A company limited by guarantee) Balance Sheet**
## **as at 31 March 2022**
|**Notes**
**Fixed assets**
Tangible assets
7
Investments
8
**Current assets**
Debtors
9
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
10
**Net current assets**
**Net assets**
**Represented by:**
Unrestricted funds
11
Revaluation reserve
13|**2022**
**£**
536,453
446,320
982,773
13,490
175,137
188,627
(42,195)
146,432
1,129,205
901,205
228,000
1,129,205|**2021**
**£**
766,035
-
766,035
7,444
119,346
126,790
(46,951)
79,839
845,874
845,874
-
845,874|
|---|---|---|
The trustees are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with section 476 of the Act.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective July 2014).
…………………………………….
Mr Mahmood Ahmad President Approved by the board on
6
## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Notes to the Accounts for the year ended 31 March 2022**
## **1 Accounting policies**
## _**Basis of preparation**_
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.
## _**Incoming resources**_
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity where this can quantified. The value of services provided by volunteers has not been included.
Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.
Income from investments is included in the year in which it is receivable.
## _**Charitable expenditure**_
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Tangible fixed assets and depreciation**_
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land and investment property, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Land and buildings straight line over 50 years Plant and machinery 25% straight line
## _**Investment property**_
Investment property is initially recognised at cost and then carried at fair value, derived from the current market prices for comparable property determined annually by the director using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the statement of financial activities.
7
## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Notes to the Accounts for the year ended 31 March 2022**
## _**Funds**_
Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees. Restricted funds can only be used for particular purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets these criteria is charged to the fund. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## _**Debtors**_
Short term debtors are measured at transaction price, which is usually the invoice price, less any impairment losses for bad and doubtful debts.
## _**Creditors**_
Short term creditors are measured at transaction price, which is usually the invoice price.
## _**Taxation**_
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## _**Judgements and key sources of estimation uncertainty**_
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
No significant judgements have had to be made in preparing these financial statements.
|**2**
**Income from donations and**
**legacies**
Donations
**3**
**Income from charitable activities**
Rent received
Gift aid tax refunds
**4**
**Other operating income**
JRS and Covid grants|**Unrestricted**
£
106,077
106,077
**Unrestricted**
£
19,800
21,139
40,939
**Unrestricted**
£
-|**Restricted**
£
-
-
**Restricted**
£
-
-
-
**Restricted**
£
8,062|**2022**
£
106,077
106,077
**2022**
£
19,800
21,139
40,939
**2022**
£
8,062|**2021**
£
68,323
68,323
**2021**
£
15,950
7,891
23,841
**2021**
£
36,645|
|---|---|---|---|---|
8
## **Al-Habib Islamic Educational and Cultural Centre Swindon**
## **(A company limited by guarantee) Notes to the Accounts**
## **for the year ended 31 March 2022**
|**4**
**Expenditure on charitable**
**activities**
**Unrestricted**
**Restricted**
£
£
Wages and salaries
14,438
8,062
Pensions
488
-
Refreshments
5,333
-
Travel
1,815
-
Rates
379
-
Water
190
-
Light and heat
9,552
-
Insurance
1,877
-
Repairs and maintenance
17,425
-
Telephone and internet
719
-
Postage and stationery
294
-
Website
300
-
Charitable donations
19,032
-
Depreciation
17,149
-
88,991
8,062
**5**
**Other expenditure**
**Unrestricted**
**Restricted**
£
£
Accountancy
1,210
-
Border agency fees
536
-
Payroll and professional fees
408
-
Sundry expenses
313
-
Bank charges
235
-
Other legal and professional
-
-
2,702
-
**6**
Staff salaries and wages
Employer NI
Pension costs
Exceptional costs associated with introducing the Euro
**Analysis of staff costs, trustee remuneration and expenses, and**
**the cost of key management personnel**|**2022**
£
22,500
488
5,333
1,815
379
190
9,552
1,877
17,425
719
294
300
19,032
17,149
97,053
**2022**
£
1,210
536
408
313
235
0
2,702
**2022**
**£**
22,500
-
488
-
22,988|**2021**
£
23,300
488
82
850
39
696
9,044
1,844
16,236
688
37
-
2,190
20,257
75,751
**2021**
£
1,100
0
306
13
188
-
1,607
**2021**
**£**
23,300
-
488
-
23,788|
|---|---|---|
No employees had employee benefits in excess of £60,000 (2021: nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.
The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).
The average monthly head count was 3 staff (2021: 3 staff) and the all staff are involved in the running of the charities activities.
9
## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Notes to the Accounts for the year ended 31 March 2022**
## **7 Tangible fixed assets**
|**Cost**
At 1 April 2021
Additions
Disposals
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 31 March 2021
**8**
**Investment Property**
**Cost**
Additions
Revaluation
At 31 March 2022
**Historical cost**
At 31 March 2022
**9**
**Debtors**
Other debtors
**10 Creditors: amounts falling due within one year**
Other taxes and social security costs
Other creditors
**11 Unrestricted funds**
**Balance as at 1**
**April 2021**
**£**
Unrestricted
845,874
845,874|**Land and**
**buildings**
**£**
932,417
-
(218,320)
714,097
171,210
14,068
185,278
528,819
761,207
**Income**
**£**
147,024
147,024|**Plant and**
**machinery**
**£**
36,949
5,887
-
42,836
32,121
3,081
35,202
7,634
4,828
**2022**
**£**
13,490
**2022**
**£**
205
41,990
42,195
**Expenditure**
**£**
(91,693)
(91,693)|**Total**
**£**
969,366
5,887
(218,320)
756,933
203,331
17,149
220,480
536,453
766,035
**Other**
**investments**
**£**
218,320
228,000
446,320
218,320
**2021**
**£**
7,444
**2021**
**£**
197
46,754
46,951
**Balance as at**
**31 March**
**2022**
**£**
901,205
901,205|
|---|---|---|---|
## **12 Restricted funds**
10
## **Al-Habib Islamic Educational and Cultural Centre Swindon (A company limited by guarantee) Notes to the Accounts for the year ended 31 March 2022**
|**Balance as at 1**
**April 2021**
**£**
Salary and charitable donations
-
Other donations
-
**13 Revaluation reserve**
Arising on revaluation during the year
At 31 March 2022|**Income**
**£**
8,062
8,062
16,124|**Expenditure**
**£**
(8,062)
(8,062)
(16,124)
**2022**
**£**
228,000
228,000|**Balance as at**
**31 March**
**2022**
**£**
-
-
-|
|---|---|---|---|
## **14 Company limited by guarantee**
Al-Habib Islamic Educational and Cultural Centre Swindon is a company limited by guarantee and accordingly does not have any share capital.
Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
## **15 Analysis of net assets between funds**
|Restricted funds
Unrestricted funds
Net assets at the end of the year|**Fixed**
**assets**
**£**
228,000
754,773
982,773|**Net current**
**assets**
**£**
-
146,432
146,432|**Total**
**£**
228,000
901,205
1,129,205|
|---|---|---|---|
11