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2021-12-31-accounts

Company Registration Number 7880858

Charity Registration Number 1148305

STOCKTON DAWAH ASSOCIATION (A Company Limited by Guarantee)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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(A Company Limited by Guarantee)

STOCKTON DAWAH ASSOCIATION

UNAUDITED FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

CONTENTS PAGES
Trustees’ Annual Report (including Directors’ Report) 1 to 3
Independent Examiner’s Report 4
Statement of Financial Activities/Summary Income and Expenditure Account 5
Balance Sheet 6
Notes to the Financial Statements 7 to 11

Page 1

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 DECEMBER 2021

The trustees present their report, together with the unaudited financial statements of the charitable company (‘the charity’) for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, 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 published in October 2019.

Trustees of the Charity

The directors of the charitable company are its trustees for the purposes of charity law. Details of trustees who have served during the year and since the year end can be found on page 3.

OBJECTS AND ACTIVITIES

The charity’s objects are specifically restricted to the following in the area of Teesside:

ACHIEVEMENTS, PERFORMANCE AND FUTURE DEVELOPMENTS

The charity purchased the community centre in late 2012 and carried out major building works in the first few years. This included a new roof, new windows, doors, shutters and complete damp-proofing. Internal renovations to the main community hall and adjoining rooms (part of the ground floor) were completed in 2015.

Renovation of the first floor (excluding the kitchen) was carried out in 2015 and 2016 and we opened the building for community use in May 2016, kick-starting some activities including table tennis, fitness classes, street cleaning, tea clubs, educational activities and language classes (for children and adults). Included in part of the first floor is a prayer facility which is utilised daily by the local community, for whom we also facilitate children’s Islamic educational classes. The main ground floor community hall is available for community use/functions as required.

In 2018, we invested in a community kitchen which is located on the first floor of the building.

There is still a significant section of the ground floor which requires complete renovation and we look forward to progressing and completing this in 2022 and 2023.

2021 was a challenging time for the organisation in providing services, due to the effects of the pandemic and lockdowns. When restrictions started to lift, a number of our activities restarted, including daily prayer services, children’s education classes and the holding of Friday prayers.

In relation to the charity’s current and proposed future activities, the trustees continue to have due regard to public benefit in exercising their powers.

Page 2

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

The results for the year and financial position at the year end are shown in the annexed financial statements.

Reserves Policy

It is the intention of the trustees to maintain net current assets at a minimum of three months average gross expenditure across the unrestricted funds of the charity and this was comfortably achieved at 31 December 2020 and 31 December 2021.

The trustees consider the overall financial position and state of affairs of the charity at the balance sheet date to be satisfactory and remain optimistic as regards the future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Stockton Dawah Association is a company limited by guarantee and not having a share capital, governed by its Memorandum and Articles of Association as adopted and amended between May and July 2012. It is also a charity registered with the Charity Commission. The members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the company in the event of winding up during their period of membership and within one year of their ceasing to be a member.

Appointment of Trustees

The charity currently has six trustees and new trustees are appointed at the discretion of the existing trustees.

Trustees’ Induction and Training

New trustees undergo an induction process that gives them an insight into the roles and responsibilities of trustees and the aims and objectives of the charity. Following their induction, trustees are encouraged to participate in external training events that will benefit their role.

Related Parties

Other than as disclosed in note 13 to the financial statements, there were no related party transactions during the period under review.

Risk Management

The trustees have considered the major risks to which the charity is exposed and have systems in place to monitor those risks and to take action where necessary in order to mitigate them.

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity Name: Stockton Dawah Association
Company Registration No: 7880858
Charity Registration No: 1148305
Registered Office: 27 Grays Road
Stockton-on-Tees
TS18 4LL

Page 3

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE INFORMATION (Continued)

Trustees/Directors: Mr. Abdul Majid Mr. Shajad Din Mr. Atiq Hussain Mr. Aftab Hussain Mr. Jamil Hussain Mr. Zaheer Iqbal Independent Examiner: Mr. J. Lester FCA Baines Jewitt Limited Barrington House 41-45 Yarm Lane Stockton-on-Tees TS18 3EA Bankers: Santander Santander Business Banking Bridle Road Bootle L30 4GB Solicitors: Knights plc Lakeside House Kingfisher Way Stockton-on-Tees TS18 3NB

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Trustees on 9 September 2022 and signed on their behalf by:

Mr. Atiq Hussain Trustee

Page 4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2021 which are set out on pages 5 to 11.

Responsibilities and Basis of Report

As the charity trustees of the company (who are also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner’s Statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

J. Lester

Mr. J. Lester FCA Baines Jewitt Limited Chartered Accountants Barrington House 41-45 Yarm Lane Stockton-on-Tees TS18 3EA

Dated: 9 September 2022

JL/AJD

Page 5

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2021 (including Summary Income and Expenditure Account)

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
Notes 2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
INCOME
Grants, donations and legacies 2 26,966 22,633 - - 26,966 22,633
Income from charitable activities 3 11,700 8,880 - - 11,700 8,880
Investment income 4 - 8 - - - 8
__ __ __ _ __ __
TOTAL INCOME 38,666 31,521 - - 38,666 31,521
======= ======= ======= ====== ======= =======
EXPENDITURE
Charitable activities 5 16,290 10,649 - - 16,290 10,649
__ __ _ _ __ __
TOTAL EXPENDITURE 16,290 10,649 - - 16,290 10,649
======= ======= ====== ====== ======= =======
Net Income for the Year 22,376 20,872 - - 22,376 20,872
Transfers between funds - - - - - -
__ __ _ ______ __ __
Net movement in funds 22,376 20,872 - - 22,376 20,872
Reconciliation of funds:
Total funds brought forward 11 248,215 227,343 - - 248,215 227,343
____ ____ _ _ ____ ____
Total Funds Carried Forward 11&12 270,591 248,215 - - 270,591 248,215
========= ========= ====== ====== ========= =========

The Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

The notes on pages 7 to 11 form part of these financial statements

Page 6

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

BALANCE SHEET

31 DECEMBER 2021

Note 2021 2020
£ £ £ £
FIXED ASSETS
Tangible assets 8 197,722 194,462
CURRENT ASSETS
Debtors 9 8,686 7,195
Cash at bank and in hand 66,703 48,458
___ ___
75,389 55,653
CREDITORS: Amounts falling due
within one year 10 (2,520) (1,900)
___ ___
NET CURRENT ASSETS 72,869 53,753
_____ _____
NET ASSETS 270,591 248,215
========== ==========
FUNDS
Unrestricted funds 11 270,591 248,215
Restricted funds - -
_____ _____
TOTAL FUNDS 11&12 270,591 248,215
========== ==========

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for:

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the directors and trustees on 9 September 2022 and signed on their behalf by:

Mr. Atiq Hussain Trustee

Mr. Shajad Din Trustee

The notes on pages 7 to 11 form part of these financial statements

Page 7

STOCKTON DAWAH ASSOCIATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

(a) General Information and Basis of Preparation

Stockton Dawah Association is a private company limited by guarantee registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are the provision and facilitation of religious education, mentoring and youth activities to children in the area of Teesside.

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 in the UK and Republic of Ireland (FRS 102) issued in October 2019, 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 Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in pounds sterling, which is the functional currency of the charity, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Income Recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Grants and Donations

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation which require a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

(c)

Investment Income

Investment income is included in the Statement of Financial Activities when receivable by the charity.

(d) Resources Expended

Resources expended are recognised in the period in which they are incurred and are shown inclusive of any attributable VAT, which cannot be recovered.

(e) Unrestricted and Restricted Funds

Unrestricted funds comprise income received or generated by reference to the general objects of the charity without further specified purpose. Such funds may however be designated by the trustees for specific purposes from time to time.

Restricted funds are those donated for a specified purpose as laid down by the donor or as the result of a specific appeal or application. Such funds are kept separate from the unrestricted funds of the charity and only related expenditure is charged against them.

(f) Tangible Fixed Assets

Tangible fixed assets are stated at cost less depreciation.

Page 8

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (Continued)

(g) Depreciation

Tangible fixed assets are depreciated over their estimated useful lives as follows:

Fixtures, fittings and equipment - 15% reducing balance

No depreciation has been provided on the freehold property purchased in 2012 as the building was still undergoing renovation works at 31 December 2021. A depreciation policy will be considered and introduced once these works are complete and the building is in full use.

(h) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(i) Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(j) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(k) Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with levels of reserves for the charity to be able to continue as a going concern.

(l) Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Any losses arising from impairment are recognised in expenditure.

2. INCOME FROM GRANTS, DONATIONS & LEGACIES

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
Stockton Borough Council: £ £ £ £ £ £
Centre support grants - 10,000 - - - 10,000
Local restrictions support grants 8,335 2,268 - - 8,335 2,268
Restart grants 10,000 - - - 10,000 -
Other donations 8,631 10,365 - - 8,631 10,365
___ ___ __ _ ___ ___
26,966 22,633 - - 26,966 22,633
======== ======== ======= ====== ======== ========

The charity benefits from the support of volunteers.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Page 9

(A Company Limited by Guarantee)

STOCKTON DAWAH ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (Continued)

YEAR ENDED 31 DECEMBER 2021

3. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Tuition fees 11,700 8,880 - - 11,700 8,880
======== ======= ====== ====== ======== =======

4. INVESTMENT INCOME

INVESTMENT INCOME
Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Bank interest receivable - 8 - - - 8
====== ====== ====== ====== ====== ======

5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Heating, lighting and rates 2,667 2,675 - - 2,667 2,675
Insurance 940 1,265 - - 940 1,265
Telephone and broadband 605 605 - - 605 605
Repairs and cleaning 245 325 - - 245 325
Tuition fees 9,800 3,900 - - 9,800 3,900
Bank charges 187 164 - - 187 164
Sundries 48 13 - - 48 13
Depreciation 478 562 - - 478 562
Governance costs - accountancy 1,320 1,140 - - 1,320 1,140
___ ___ _ _ ___ ___
16,290 10,649 - - 16,290 10,649
======== ======== ====== ====== ======== ========
NET INCOMING RESOURCES
This is stated after charging: 2021 2020
£ £
Depreciation 478 562
Independent Examiner’s fees:
- independent examination 440 400
- accounting and other services 880 800
- over provision re previous year - (60)
======= =======

6. NET INCOMING RESOURCES

7. TAXATION

HMRC Charities Division has approved the charitable status of Stockton Dawah Association and the company is therefore exempt from corporation tax on income derived from its charitable activities.

Page 10

STOCKTON DAWAH ASSOCIATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued)

YEAR ENDED 31 DECEMBER 2021

8. TANGIBLE FIXED ASSETS

8. TANGIBLE FIXED ASSETS
Freehold Fixtures,
Land and
Fittings and
Property
Equipment Total
£ £ £
Cost
At 1 January 2021 191,276 5,236 196,512
Additions 3,738 - 3,738
_____ _ _____
At 31 December 2021 195,014 5,236 200,250
========== ======= ==========
Depreciation
At 1 January 2021 - 2,050 2,050
Charge for year - 478 478
_____ _ _
At 31 December 2021 - 2,528 2,528
===== ======= =======
Net Book Value
At 31 December 2020 191,276 3,186 194,462
========== ======= ==========
At 31 December 2021 195,014 2,708 197,722
========== ======= ==========
9. DEBTORS
2021 2020
£ £
Gift aid tax recoverable 8,135 6,629
Other debtors and prepayments 551 566
__ __
8,686 7,195
======= =======
10. CREDITORS: Amounts falling due within one year
2021 2020
£ £
Trade creditors and accruals 2,520 1,900
======= =======
11. MOVEMENT IN FUNDS
At beginning At end
2021 of Year Income Expenditure Transfers of Year
£ £ £ £ £
Unrestricted Funds:
General 248,215 38,666
16,290
- 270,591
========== ======== ======== ======= ==========
At beginning At end
2020 of Year Income Expenditure Transfers of Year
£ £ £ £ £
Unrestricted Funds:
General 227,343 31,521
10,649
- 248,215
========== ======== ======= ======= ==========

Page 11

(A Company Limited by Guarantee)

STOCKTON DAWAH ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (Continued)

YEAR ENDED 31 DECEMBER 2021

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Total
Funds Funds Funds
£ £ £
Tangible fixed assets 197,722 - 197,722
Net current assets 72,869 - 72,869
____ __ ____
270,591 - 270,591
========== ======= ==========

13. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

The charity was under the control of the trustees throughout the period under review.

Payments totalling £4,900 (2020: £3,200) were made to Mr. J. Hussain, trustee, for self-employed services rendered to the charity in the provision of tuition and £nil (2020: £700) was owed to Mr. Hussain in respect of these services as at 31 December 2021.

Other than the above, no trustee received remuneration from or was reimbursed expenses by the charity in the period under review.

Total unrestricted donations received from the trustees during the year under review amounted to £1,465 (2020: £1,965).

14. FINANCIAL INSTRUMENTS

The carrying amounts of the charity’s financial instruments are as follows:

The carrying amounts of the charity’s financial instruments are as follows:
Financial Assets 2021 2020
£ £
Measured at amortised cost:
- Cash at bank 66,703 48,458
======== ========
Financial Liabilities
Measured at amortised cost:
- Accruals and deferred income 2,520 1,900
======= =======
The income, expenses, net gains and net losses attributable to the charity’s financial instruments are summarised
as follows:
2021 2020
£ £
Interest receivable:
- Financial assets measured at amortised cost - 8
==== ====