## **INDEPENDENT EXAMINATION IN OF FINANCIAL STATEMENETS** # **TOWER HAMLETS SOMALI ORGANISATION NETWORK (THSON)** ## **FOR THE YEAR ENDED 31[ST] DECEMBER 2020** **102 Mile End, Road, London £1 4UN** Page **1** of **13** ## **CONTENTS** ||**Page**| |---|---| ||| ||| ||| |Contents|2| ||| ||| ||| ||| |Organisation’s Information|3| ||| ||| ||| ||| |Board of Directors Report|4-6| ||| ||| ||| ||| |Auditors Report|7-8| ||| ||| ||| ||| |FinancialStatements|9| ||| ||| ||| ||| |Balance Sheet|10-11| ||| ||| ||| ||| |Notes totheFinancialStatements|11-13| ||| Page **2** of **13** |**ORGANISATION**|**INFORMATION**|**INFORMATION**||| |---|---|---|---|---| |||||| |||||| |**TRUSTEES:**|**NAMES**||**POSITION**|| ||Saeed Noor||Chairman|| ||Mohamed Ismail||Secretary|| ||Sulieman Hassan||Treasurer|| |||||| |||||| |||||| |||||| |||||| |||||| |||||| |**REG. OFFICE:**|Unit9|||| ||1-11 Assembly Passage|||| ||London|||| ||E1 4UT|||| |||||| |||||| |||||| |||||| |**AUDITORS:**|ExecutiveTeamCertified Accountants&Tax Advisers|||| ||102 MileEnd Road|||| ||London|||| ||E1 4UN|||| |||||| |||||| |||||| |||||| |**BANKERS:**|HSBCPlc|||| ||TheMall|||| ||Stratford High Street|||| ||London|||| ||E15 1XL|||| |||||| |||||| |||||| |||||| |||||| |**REGISTRATION NO:**|5648113|**Charity No: **|1153710|| |||||| Page **3** of **13** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing Document** The Tower Hamlets Somali Organisation Network (THSON) is a Registered with the Charity Commission and Company House, governed by its Constitution. ## **Appointment of trustees** As set out in the constitution the chair of the trustees is nominated by THSON. The Board Directors meets quarterly, where they receive the trustee’s report of the current services together with the current financial position of the organisation and also discuss the business in general, strategic development, fundraising, reserves and risk management, policies and performance. The day-to-day business, administration and activities are delegated to the Chief Executive Officer and his team. ## **Trustees’ induction and training** Induction of new Board Members will wherever possible be undertaken by the two most senior office holders and most senior board members who have already undergone the induction procedure (the inductors). Induction of new Board Member will wherever possible take place at the THSON no later than fourteen working days after the election of the new board member. - a. The new Board Member will be introduced to other Board Members and THSON’s employees and volunteers and be given a description of the work each of them undertakes. - b. The new Board Member will be shown round the THSON’s offices and will be expected to familiarise themselves with the services provided and who takes the lead in providing those services. - c. The inductors will provide the new Board Member with the following documents: - The most recent Annual Reports and Financial Statements - `o` The Constitutions and other governing documents ## **Risk Management** The board of trustees has conducted a review of the major risks to which the organization is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the organization faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients, and visitors to the organization’s facilities. The continuing implementation of the best industry standards and the adoption emerging trends ensure a consistent quality of delivery for all operational aspects of the organization. These procedures are periodically reviewed to ensure that they continue to meet the needs of the organization. Page **4** of **13** **Related Parties** THSON does not has no other relating parties. ## **Statement of Trustees’ Responsibilities** The board of directors of the charitable organisation are its trustees, for the purposes of charity law and throughout this report are collectively referred to as the trustees. The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law of Generally Accepted Accounting Principle (GAAP). Charity law also requires the trustees to prepare financial statements for each financial year which give a true and fair view of the situation and of its surplus or deficit for that period. In doing so, the trustees are required to: - Select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards 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 charity will continue in business. The Board are responsible for keeping proper accounting records which 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 Charity Law. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information. - In accordance with the charity law, as the organisation’s trustees, we certify that: - So far as we are aware, there is no relevant audit information of which the organisation’s auditors are unaware; and - As the Board of directors of the organisation we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the organisation’s auditors are aware of that information. Approved by the Trustees and signed on their behalf on: ……………………………………………………………………… ……………………………………………………………………… Saeed Noor Sulieman Hassan (Chairman) (Treasurer) Date: .............................................. Date: .............................................. Page **5** of **13** ## **Independent Examiners' Report to the Board of Members of THSON** We have examined the financial statements of THSON for the year ended 31 December 2020, which comprise the Statement of Financial Activities, the Balance Sheet and related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Accounting Standards and Generally Accepted Accounting Principles (GAAP). This report is made solely to the charitable organisation's members, as a body, in accordance with Charity Law. Our audit work has been undertaken so that we might state to the charitable organisation's members those matters we are required to state to them in an examiners’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable organisation and its members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Respective responsibilities of the trustees and auditors** The Trustees' (who are also the board of directors of THSON for the purposes of charity law) responsibilities for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and International Accounting Standards and Generally Accepted Accounting Principles issued by the International Federation of Accountants (IFAC) are set out in the Statement of Trustees' Responsibilities. Our responsibility is to examine and express an opinion on the financial statements in accordance with applicable law and International Standards, those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable organisation's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the trustees’ annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies, we consider the implications for our report. ## **Opinion on financial statements In our opinion, the financial statements:** - § give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - § have been properly prepared in accordance with Generally Accepted Accounting Principles; and Page **6** of **13** - § have been prepared in accordance with the requirements of the Charity Law. ## **Opinion on other matter prescribed by the Charity Law** In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charity Law requires us to report to you if, in our opinion: - § adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - § the financial statements are not in agreement with the accounting records and returns; or - § certain disclosures of trustees’ remuneration specified by law are not made; or - § we have not received all the information and explanations we require for our examination. _Executive Team 28[th] September 2021_ ........................................................................................................................................Date: .......................................... **EXECUTIVE TEAM CERTIFIED PUBLIC ACCOUNTANTS 102 MILE END, LONDON, E1 4UN** Page **7** of **13** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DEC 2020 (incorporating Income and Expenditure Account)** |Note
**Incoming Resources**
Grants and donations
4
Investment Income
**Total Incoming Resources**
**Resources Expended **
**_Cost of Generating Funds:_**
Fundraising Costs of Resources
Governance Costs(Audit Fees)
CharitableActivities
**Total Resources Expended**
Netexpenditurefor the year
Gross transfers between funds
**Net Movement in funds**
**Fund Brought Forward**
**Reconciliation of funds:**
**Total funds Carried forward**
11|**Unrestricted**
**Funds**
**75,200**
**75,200**
71,452
71,452
3,990
0
3,990
**839**
**4,829**|**Restricted**
**Funds**
0

**0**

0
0
0
0
0

0
**0**|**Total**
**Funds**
**2020**
**75,200**
**75,200**
71,452
71,452
3,990
**0**
3,990
**839**
**4,829**|**Total**
**Funds**
**2019**
**79,950**
**79,950**
**79,111**
**79,111**
**0**
**0**
**839**
**0**
**839**| |---|---|---|---|---| Page **8** of **13** ## **BALANCE SHEET AS AT 31[ST] DECEMBER 2020** |**Fixed Assets**
Tangible Assets
**Total Fixed Assets**
**Currents Assets**
_Debtors falling due within one year_
Other Debtors
Cash at Bank in Hand
**Total Current Assets**
**Current Liabilities**
_Creditors falling due within one year_
Creditors
Deferred Income
**Total Current Liabilities**
**Net Current Assets**
**Net Assets**
**Charity Funds**
Unrestricted funds B/forward
Unrestricted funds for the year
**Total Unrestricted Funds C/F**
Restricted funds brought forward
Restricted funds for theyear
**Total Restricted Funds C/F**
**Total Funds**
**Fixed Assets Net Book Value**|Note
729
6
0
9
0
7
0
9
0
11
839
3,990
0
0
11|**Total**
**2020**
729
729
0
839
0
0
0
0
0
**4,829**
0
839
**4,829**
0
0
**0**
0
**4,829**|**Total**
**2020**
729
839
0
**839**
**1,568**| |---|---|---|---| ||||**839**
**0**
729| |**Total Funds Balance C/F**|||**1,568**| Page **9** of **13** **BALANCE SHEET AT 31[ST] DECEMBER 2020** (CONTINUED) Signed and approved on behalf of the Committee on: **----- Start of picture text -----**
Saeed Noor Sulieman Hassan
(Chairman) (Treasurer)
Date: .............................................. Date: ..............................................
**----- End of picture text -----**
The notes on pages 11 to 13 form part of these accounts Page **10** of **13** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31[ST ] DECEMBER 2020** ## **1. ACCOUNTING POLICIES:** The principal accounting policies are adopted in the preparation of the financial statements and summarised below. The accounting policies have been applied consistently throughout the year and in the previous year. ## **4. Services Contract & Grants** |**Un-Restricted**
**Funds**
£
ESF LONDON COUNCIL
14,000
MEMBERSHIPCONTRIBUTION
3,500
CONTRACTEDSERVICES
22,000
OTHER INCOME
35,700
**TOTALS**
**75,200**||**Restricted**
**Funds**
£
0
0
0
0
**0**
|**2020**
£
14,000
3,500
22,000
35,700
**75,200**|**2019**
£
**22,000**
**1,760**
**5,390**
**50,800**
**79,950**| |---|---|---|---|---| ## **5. Creditors: Amount falling due within one year** |**2020**
£
Accrued Expenses – Examination Fees
0
**Total Creditors Due**
**0**|**2019**
£
0
**0**| |---|---| ## **6. Cash At Bank** ||**2020**
£
HSBC-
3,990
**Total Cash at Bank**
**3,990**|**2019**
£
0
**0**| |---|---|---| Page **11** of **13** ## **7. Direct & Support Expenditure:** |||**Unrestricted**||||**Restricted**|**Restricted**|||**2020**|**2020**|||**2019**|**2019**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||||||||||||||| |||**£**||||**£**||||**£**||||**£**|| |**OPERATING EXPENSES**|||||||||||||||| |Events, Activities & Workshops||10,800||||0||||10,800||||15,560|| |Wages& Salaries||35,550||||0||||35,550||||45,750|| |PAYE||2,090||||0||||0||||2,010|| |Volunteering Expenses||1,000||||0||||0||||350|| |Rent & Venue||5,629||||0||||5,629||||5,628|| |Utilities Bills||790||||0||||0||||670|| |Insurance||639||||0||||639||||639|| |Legal Fees||0||||0||||0||||0|| |Independent Examination Fees||450||||0||||0||||0|| |Repair&Maintenance||200||||0||||0||||0|| |Motor Vehicles Expenses||230||||0||||0||||0|| |General Office Expenses||1,586||||0||||586||||350|| |BankCharges||92||||0||||0||||92|| |Consultancy & Professional Fees||4,170||||0||||4,170||||3,300|| |Advertisement & Promotions||2,500||||0||||0||||400|| |Printing & Stationery||1,300||||0||||1,300||||1,300|| |Telephone & Internet||2,320||||0||||2,320||||2,320|| |Beneficiary Trainings||1,364||||0||||1,364||||0|| |Monitoring & Evaluation||500||||0||||0||||500|| ||||||||||||||||| ||||||||||||||||| |**Total Operating Coat**||**71,210**||||**0**||||**71,210**||||**78,869**|| ||||||||||||||||| |**Dep’n of Tangible Asset:**|||||||||||||||| |Motor Vehicles(small cars 25%)||0||||0||||0||||0|| |Fixtures&Fittings(25%)||0||||0||||0||||0|| |Computer Equipment(25%)||242||||0||||242||||242|| ||||||||||||||||| |**Total Depreciations**||242||||0||||242||||242|| ||||||||||||||||| |**Total Staff Cost**||**71,452**||||**0**||||**71,452**||||**79,111**|| Page **12** of **13** ## **8. Fixed Assets** |||**Mot. Veh.**
**Small( 25%)**||**Computer**
**Equip**
**(25%)**||**Fix. & Fit.**
**(25%)**||**Totals**| |---|---|---|---|---|---|---|---|---| |**COST BROAD DONE**
At 1 January 2020
Additions/Revaluation||**£**
**0**
0||**£**
**969**
0||**£**
**0**
0||**£**
**969**
0| |**At 31 Dec 2019**||**0**||**969**||**0**||**969**| |**DEPRECIATION**
At 1 January 2020
Charge for year||**0**
0||**842**
**242**||**0**
0||**842**
**242**| |**At 31 Dec 2020**||**0**||**1,084**||**0**||**1,084**| |**NET BOOK VALUE**
**At 31 Dec 2020**
**At 31 Dec 2019**||||**726**
**726**||**726**||**726**| |||||||**726**||**726**| ## **9. Deferred Income** |**Deferred Income**|**Deferred Income**|**Deferred Income**| |---|---|---| |**2020**
**2029**
£
£
**Total Deferred Income**
0
0||| ||**2020**
£
0|**2029**
£
0| ## **10. Debtors** |**Trade Debtors**|**2020**
£
0|**2029**
£
0| |---|---|---| **11. Reserves and Fund Balances** |At 1 January 2020
Deficit/Surplus for the year
At31stDecember 2020|**2020**
$ **839**
**3,990**
**4829**|**2029**
$ **0**
**839**
**839**| |---|---|---| Page **13** of **13**