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2022-03-31-accounts

Registered Charity Number: 1147460

WATFORD MUSLIM YOUTH CENTRE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

LEGAL AND ADMINISTRATIVE INFORMATION

Charity Name Watford Muslim Youth Centre Charity Registration Number 1147460 Principle Office 61 Harford Drive Watford Hertfordshire WD17 3DQ Board of Trustees Zahid Mahmood Zarin Imran Khan Dr Saiqah Azad Zakia Hussain Aqib Dahoud Riaz Samie Iqbal Kayani Mohammad Munir Bankers Lloyds Bank PLC 32A Intu Shopping Centre Watford Hertfordshire WD17 2UB

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CONTENTS

Page no
REPORT OF THE TRUSTEES 4‐8
STATEMENT OF TRUSTEES’ RESPONSIBILITIES 9
INDEPENDENT EXAMINER’S REPORT 10
STATEMENT OF FINANCIAL ACTIVITIES 11
BALANCE SHEET 12
NOTES TO THE ACCOUNTS 13‐18

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WATFORD MUSLIM YOUTH CENTRE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report and financial statements for the year ended 31 March 2022 and confirm that they comply with the Charities Act 2011, the trust deed and the Charities SORP (FRS 102).

Public Benefit Statement

The trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission.

Aims and Objectives

Our Aims

To further or benefit the residents of Watford and the neighbourhoods without distinction of sex, race, religious background, ethnicity or language, by associating together the said residents and the local authorities, voluntary and other organizations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation leisure time occupation with the objective of improving the conditions of life for the residents.

In furtherance of these objects but not otherwise, the trustees shall have power: To establish or secure the establishment of a community centre and to maintain or manage or cooperate with any statutory authority in the maintenance and management of such a centre for activities promoted by the charity in furtherance of the above objects.

Our Objectives

Watford Muslim Youth Centre’s (WMYC) main objective of the charity is to fundraise (using various fundraising streams) to help construct a multipurpose community centre , offering a wide range of educational and recreational activities for everyone especially the youth. WMYC hopes to form the ideal place to address community problems and provide solutions for the entire community. The prospect of a community centre offers a much-needed resource to bring all communities together to create a vibrant environment to facilitate the development of the youth.

In addition to fundraising, we also try to implement the following objectives either within our fundraising events or separate non-fundraising events:

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Review of activities and achievements

Late Haji Raja Ratasab Khan Saheb Fundraising Appeal

Haji Ratasab Khan Saheb was the father of our Secretary Trustee, Imran Khan. He was a key driving force for the Watford Muslim Youth Centre project and promoted the involvement of young people in serving people in the community. He passed away suddenly on 10th February 2021 leaving behind a beautiful legacy for the world to witness. WMYC held a fundraising appeal in his name and this raised approximately £10,000.

‘Journey of Realisation’ online circles

4 lively Ramadan discussion circles were attended by a wide cross section of the community. We discussed topics such as identity, finding peace, how our actions impact the world and living meaningful lives.

Ramadan Family Quiz

WMYC hosted a family Ramadan themed quiz via Kahoot. The quiz night attracted many households, some of which are from outside of Watford.

Young Muslim Sisters Group

Much like the realisation circles and mentoring, The Young Muslim Sisters Group (GEMS) is a focus group with the aims of providing self-development, mentoring and social skills through dialogue and challenging discussions. Young women are encouraged to be empowered to make a difference within our community and to form inspirational female role models.

Children’s mawlid function

Nearly 100 children enjoyed a celebratory children’s event that increased their understanding of how to become better people as well as enjoying fun and games held on the night.

786 Club

The 786 Club has been formed to provide a platform for the personal and religious development of our local youth. It comprises of Mentors who are young professionals (including doctors, dentists, consultants, solicitors and teachers) that are well versed in religious understanding. We are seeking to offer guidance and inspiration by volunteering our free time to the character building of today’s youth and tomorrow’s future.

786 Club is aiming to nurture the minds and hearts of our children, so that they learn how to implement Islamic teachings in the modern world. This is to be done in a fun way and by providing ‘big brother’ and ‘big sister’ support to help them grow into well-rounded adults.

The 786 Club aims to give young people the opportunity to:

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During the pandemic, we held online classes which was very gratefully received by the community. The special Ramadan series was especially enjoyed by the children.

Collaboration with Watford Football Club (WFC)

We had many fundraising activities throughout the year namely:

Donating 300 meals to Veolia, Watford Council workers and Watford Police

In collaboration with Hijaz Community, our volunteers presented 300 meals to Veolia UK

(environmental service provider), Watford Council Community Protection Team, Watford Police Force and Peter Taylor ‐ Mayor of Watford as a thank you for continuing to serve society, especially over the last two years during the difficult times of the pandemic.

Plans for Future Periods

We intend to continue to raise funds towards the construction of the multipurpose community centre via fundraising events and applications of grants. We also intend to expand on our existing range of community activities for the residents of Watford and surrounding areas.

Financial Review

During 2021‐2022, the charity’s activities continued to focus on delivering the needs of the community as well as establishing a multipurpose community Centre.

The charity’s incoming resources totalled to £392k in the year (2021: £56k). These comprise of donations and collections. A surplus of £389k (2021: £44k) is recorded for the period and, at 31 March 2022, reserves of £1,261,333 (2021: £872k) are shown.

Reserves Policy

There are no current operating costs in existence and the current policy is to maximize reserves as part of financing future activities including the establishment of a multipurpose community centre.

Principle Funding Sources

The charity’s main source of income is donations and monies raised from fundraising events.

Investment policy and objectives

The charity has no long‐term investment. Our cash reserves are held in a charity deposit account.

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Structure, Governance and Management

Governing Document

Watford Muslim Youth Centre (WMYC) is constituted as a charitable trust and registered with the Charity Commission on 25 May 2012 under the charity number 1147460. It is governed by a deed of trust dated 16 May 2012.

Organisational Structure

The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefit.

The trustees meet as a body at least twice a year and are responsible for all decisions taken in relation to the community facilities and activities provided by the charity. To assist in the smooth running of the charity, the trustees have set up several sub-committees that consist of the Central Executive Committee, Finance Committee, Activity Committee, Grants and Consultation Committee, Corporate Fundraising Committee and the Fundraising Committee.

Recruitment and appointment of trustees

The existing trustees are responsible for the appointment of new trustees and will take into consideration the views and recommendations of both the elders and community leaders. This approach ensures the new trustees are respected members of the local community, ensuring that good relations are fostered with the people of the local community we serve.

In selecting new trustees, we seek to identify people who regularly attend fundraising events and charitable activities organised by the charity and are willing to volunteer to help in our broader community work especially for youth work. Potential trustees are invited to attend trustees’ meetings as observers and are given more details of the charity’s aim and objectives and, if all agree, they are then proposed as a new trustee at the subsequent trustee’s meeting. This process allows due consideration of the person’s eligibility, personal competence, specialist knowledge and skills.

Induction and training of trustees

Following appointment, new trustees are introduced to their new role and given copies of the trust deed and a guide to the policies and procedures adopted by our charity. A number of publications from the Charity Commission are also provided including the guidance on charities and public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act. Initially, new trustees work with an existing trustee assisting on particular activities and projects run by the charity. After satisfactory feedback from existing trustees, they are given the task of leading a particular activity or project, reporting progress at trustees’ meetings.

All trustees and members of the sub-committees will have access to a wide variety of training opportunities in order to equip them to fulfil the aims and objectives of the charity.

Risk Management

The trustees have assessed the risks to the charity and review these risks regularly during the meetings held throughout the year. Risks are continually being identified and their impacts are assessed. It can be reported that, to date, the exercise of risk management has indicated minimal areas of concern, though it is recognised that systems can only provide reasonable, not absolute, assurance that all major risks have been adequately identified.

Use of Volunteers

Volunteers are important resource in our community work. We have over 40 people regularly giving

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their time in order to achieve the charity’s aims and objectives. All of our volunteers also give up their time freely. We encourage all members of the community to be involved in voluntary activities and to share skills with each other. All those volunteers working on projects involving children or other vulnerable groups are required to undergo Disclosure and Barring Service (DBS) checks.

Patrons and Supporters

Our existing patrons and supporters are:

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

The charity’s trustees are responsible for the preparation of an annual report and financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which gives true and fair view of the state of affairs of the charity and of the incoming resources of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees for the purposes of charity law who served during the year end and up to the date of this report are set out on the Legal and administrative information page of this report.

Approved by the trustees on 05th June 2022 and signed on their behalf by:

Zahid Zarin (Chair of Trustees) 30th January 2023

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INDEPENDENT EXAMINER’S REPORT

TO THE TRUSTEES OF WATFORD MUSLIM YOUTH CENTRE

I report to the trustees on my examination of the accounts of the Watford Muslim Youth Centre Trust (the Trust) for the year ended 31 March 2022.

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 Act’).

I report in respect of my examination of the Trust’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 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 Act; or

  2. the accounts do not accord with those records.

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

Hedayatullah Yahya FCCA Chartered Certified Accountant Yahya & Co Accountants Ltd 164 West Hendon Broadway London NW9 7AA

30th January 2023

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Total Funds Total Funds
Notes Funds 2022 2021
£ £ £
INCOMING RESOURCES
Incoming resources from
generated funds:
Donation & legacies 3 386,358 386,358 51,349
Charitable Activities 4 641 641 4,955
Other trading activities 5 0 0 0
Other incoming resources 6 5,000 5,000 0
TOTAL INCOMING RESOURCES 391,999 391,999 56,304
RESOURCES EXPENDED
Costs of generating funds 892 892 1,592
Charitable activities 1,981 1,981 10,302
TOTAL RESOURCES EXPENDED 7 2,873 2,873 11,894
NET MOVEMENTS IN FUNDS 389,126 389,126 44,410
Reconciliation of funds
Total funds brought forward 872,207 872,207 827,797
TOTAL FUNDS CARRIED FORWARD 1,261,333 1,261,333 872,207

The statement of Financial Activities included all gains and losses in the year.

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BALANCE SHEET AS AT 31 MARCH 2022

Note
£
£
£
£
Fixed Assets
Tangible Assets
8
1,193,273
1,186,173
Current Assets
Debtors
9
17,116
17,116
Cash at bank
477,867
96,303
Total Current Assets
494,983
113,419
Liabilities
Creditors: Amounts falling due within
one year
10
0
0
Net Current Assets or (Liabilities)
494,983
113,419
Creditors: Amounts falling due after
more than one year
11
426,923
427,385
426,923
427,385
Net Assets/(Liabilities)
1,261,333
872,207
The funds of the charity:
Unrestricted funds
12
1,261,333
872,207
Total charity funds
1,261,333
872,207
2022
2021		 Note
£
£
£
£
Fixed Assets
Tangible Assets
8
1,193,273
1,186,173
Current Assets
Debtors
9
17,116
17,116
Cash at bank
477,867
96,303
Total Current Assets
494,983
113,419
Liabilities
Creditors: Amounts falling due within
one year
10
0
0
Net Current Assets or (Liabilities)
494,983
113,419
Creditors: Amounts falling due after
more than one year
11
426,923
427,385
426,923
427,385
Net Assets/(Liabilities)
1,261,333
872,207
The funds of the charity:
Unrestricted funds
12
1,261,333
872,207
Total charity funds
1,261,333
872,207
2022
2021		 Note
£
£
£
£
Fixed Assets
Tangible Assets
8
1,193,273
1,186,173
Current Assets
Debtors
9
17,116
17,116
Cash at bank
477,867
96,303
Total Current Assets
494,983
113,419
Liabilities
Creditors: Amounts falling due within
one year
10
0
0
Net Current Assets or (Liabilities)
494,983
113,419
Creditors: Amounts falling due after
more than one year
11
426,923
427,385
426,923
427,385
Net Assets/(Liabilities)
1,261,333
872,207
The funds of the charity:
Unrestricted funds
12
1,261,333
872,207
Total charity funds
1,261,333
872,207
2022
2021
872,207
872,207
872,207

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies

1.1 Basis of accounting

The financial statements have been prepared under the historic cost convention and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005) issued in March 2005, and applicable to UK Accounting Standards and the Charities Act 2011.

1.2 Fund structure

Unrestricted income funds comprise of those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.

Restricted funds are funds which are used in accordance with specific restrictions imposed by the donor or the terms of a specific appeal.

1.3 Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources. It is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. The following specific policies are applied to particular categories of income:

Voluntary Income is received by way of donations, collections, charity boxes and is included in the Statement of Financial Activities on a receipt basis.

Income resources from generating funds are accounted for when earned.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services donated by volunteers has not been included in these accounts, except where the services provided are in the nature of professional services where a fee would otherwise be charged, in which case the donated service is valued at their chargeable rate.

Investment Income is included when receivable.

Incoming resources from grants, where there are performance or service deliverables required by the terms of the grant, are accounted for as the charity earns the right to payment through its performance.

Income resources from charitable trading activity are accounted for when earned.

1.4 Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. All expenditures are taken into consideration on an accruals basis and have been classified under appropriate headings in the statement of financial activities.

1.5 Value Added Tax

Value added tax is not recoverable by the charity and charged against the category of the resources

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expended for which it was incurred.

1.6 Cost of generating funds

Costs of generating funds are those costs incurred in attracting voluntary income, or incurred in trading activities taken to raise funds.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1.7 Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the direct pay and non-pay costs and support costs relating to those activities.

1.8 Leasehold land and depreciation

Lease premium on land is stated at cost less depreciation. Depreciation is provided to write off cost of the asset over the term of the lease.

1.9 Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised. Fixed assets are stated at historic cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment 25% straight line Computer equipment 33% straight line

2. Related party transactions and trustees’ remuneration

There were no donated services from trustees (2021: £nil). Trustees received no emoluments (2021: £nil).

3. Incoming resources from voluntary income

Donations
Collections		 Unrestricted
Funds
Total Funds
2022
Total Funds
2021
£
£
£
386,358
386,358
51,349
0
0
0
386,358
386,358
51,349

4. Incoming resources from charitable activities

Event Income Unrestricted
Total
Total
Funds
2022
2021
£
£
£
641
641
4,955
641
641
4,955

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Activities from other trading activities

Event Income Unrestricted
Total
Total
Funds
2022
2021
£
£
£
-
-
-
-
-
-

6. Other incoming resources

License Income
Rental Income		 Funds
2022
2021
£
£
£
-
-
-
5,000
5,000
-
5,000
5,000
-

7. Resources expended

Cost of generating funds
Charitable activities		 Unrestricted
Funds
Support
Total
Total
Direct Costs
Costs
2022
2021
£
£
£
£
473
419
892
1,592
1,684
297
1,981
10,302
2,157
716
2,873
11,894

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. Fixed Assets: Tangible Assets

xed Assets: Tangible Assets
Cost
As at 1 April 2021
Additions
Disposals
As at 31 March 2022
Depreciation
As at 1 April 2021
Charge for the year
Disposals
As at 31 March 2022
Net Book Value
At 31 March 2022
At 31 March 2021		 Leasehold
Land &
building
£
1,186,173
7,100
-
1,193,273
-
-
-
-
1,193,273
1,186,173

Costs relating to the construction of community centre have been capitalized.

The leasehold land was valued professionally at £2,600,000 in 2018. The valuation complies with the international valuation standards and has been carried out in accordance with the professional practice.

The lease premium on the land will start to depreciate 10 days after the date of practical completion date over the agreed lease term of 125 year as stipulated in the sign lease agreement.

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9. Analysis of debtors

Trade debtors
Prepayments- Insurance
Total		 2022
2021
£
£
-
-
17,116
17,116
17,116
17,116

10. Creditors: Amounts falling due within one year

Trade creditors
Accruals and deferred income
Total		 2022
2021
£
£
-
-
-
-
-
-

11. Creditors: Amounts falling after more than one year

Loans & overdrafts
Loan- Watford council
Tenant's Deposit
Total		 2022
2021
£
£
276,923
272,385
150,000
150,000
0
5,000
426,923
427,385

12. Analysis of funds

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Unrestricted funds:
Unrestricted general funds		 Balance
Incoming
Resources
Fund
b/fwd
resources
expended
c/fwd
£
£
£
£
872,207
391,999
2,873 1,261,333
872,207
391,999
2,873 1,261,333

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