Welwyn Islamic society Charity registration number 1155040
WELWYN ISLAMIC SOCIETY
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023
Welwyn Islamic society Charity registration number 1155040
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr Mohammed Qureshi Mr Ahmed Mumuni Mr Hassan Deen Mr Khaled Dewan Charity number 1155040 Principal Address 19 Martinfield Business Centre Welwyn Garden city AL7 1HG
Welwyn Islamic society Charity registration number 1155040
CONTENTS
| Page | |
|---|---|
| Trsutees’ report | 1 - 2 |
| Statement of fnancial activities | 3 |
| Balance sheet | 4 |
| Notes to the accounts | 5 – 10 |
Welwyn Islamic society Charity registration number 1155040
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
Objectives and activities
The charity's objectives are to organise charitable events in the Welwyn Garden City Community including holding prayer meeting, public celebration of religious festivities, production and distribution of literature to enlighten the public on Islam and provision of Islamic education to the local community. The policies adopted in furtherance of these objectives are Friday prayer meetings, Ramadhan congregation and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Charity hold Friday prayers, Eid prayers and hold Ramadhan gathering including prayers.
The Trustees and volunteers manage and organise the Charity events.
Achievements and performance
The Charity has achieved its objectives of organising prayer events on regular basis throughout the year.
Since the acquisition of the premises - mosque - due to its locality there has been an increase in number of people attending the daily five times prayers and the number attending Friday prayers have substantially increased. To accommodate worshippers, we now have two sessions of Friday Prayers.
Financial review
The results of the Charity's activities are shown on pages 4 to 9 of the financial statements.
To safeguard the main activities of the Charity, the Trustees ensure that there are sufficient unrestricted funds to meet the charity's obligations for the next three months at any point in time.
The principal source of income are members annual fees, regular monthly donations, Friday and Ramdhan collection and other ad-hoc activities. The Charities expenditure consists of payment to preachers and other ancillary activities.
The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
An annual review of the risks the charity may face.
The establishment of systems and procedures to mitigate those risks identified in the plan.
Welwyn Islamic society Charity registration number 1155040
Implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
A Reserves Policy which aims to secure six months running costs for the charity in a reserve account.
Future Plans
The board of Trustee feel that with the increasing number of people using the mosque it would be appropriate to provide more facilities at the mosque. Accordingly, the board of trustee have sought advice from Legal advisers and Architect to provide the following new facilities:
New wudhu area, A Kitchen and Body washing facilities
Multipurpose hall - that can be divided into small halls when needed so to facilitate teaching of religious education in small groups for youngsters.
The Board of Trustee with the guidance of legal professional and Architects have made a planning application, to the Local authority. The Board is expecting a preliminary response from the council early next year.
The Board of Trustee with the advisors have engaged in consultation with the Local Authority regarding parking facilities and have contracted with specialist highway consultant to carry out parking survey and the results will be sent to the local Authority with our final application.
Structure, governance and management
The charity was established by a charitable trust deed on 23 November 2013.
The trustees who served during the year and up to the date of signature of the financial statements were:
Mr Mohammed Qureshi
Mr Ahmed Mumuni
Mr Hasan Deen
Mr Khaled Dewan Osman
The Trustees are elected at an AGM.
The Charity consist of various members, who elect three Trustees at an AGM to manage the charity.
The Trustees must declare to their fellow Trustee if there is any conflict of interest in respect of any activity or provision of services to the Charity.
The trustees' report was approved by the Board of Trustees.
..... .......… I. Qureshi
Mr Mohammed Qureshi
Trustee
Welwyn Islamic society Charity registration number 1155040
| STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | |||||
|---|---|---|---|---|---|---|---|---|
| INCLUDING INCOME AND EXPENDITURE ACCOUNT | ||||||||
| FOR THE YEAR ENDED31 DECEMBER 2023 | ||||||||
| Unrestricted Funds |
Restricted Funds |
Total |
Unrestricted Funds |
Restricted Funds |
Total |
|||
| Notes | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | ||
| Income from: | £ | £ | £ | £ | £ | £ | ||
| Donations andlegacies | 3 | 48,556 | - | 48,556 | 30,876 | - | 30,876 | |
| CharitableActivities | 4 | - | - | - | - | - | - | |
| 48,556 | - | 48,556 | 30,876 | - | 30,876 | |||
| Expenditure on: | ||||||||
| Fundraising | 5 | - | - | 362 | 362 | |||
| CharitableActivities | 6 | 28,878 | - | 28,878 | 19,419 | 362 | 19,781 | |
| Total expenditure | 28,878 | - | 28,878 | 19,419 | 362 | 19,781 | ||
| Net Income for the Year / movement in funds |
19,678 | - | 19,678 | 11,457 | 362 - |
11,095 | ||
| Fund balance as at 1 January2023 |
388,441 | 114,510 | 502,951 | 376,984 | 114,872 | 491,856 | ||
| Fund balance as at 31 December 2023 |
408,119 | 114,510 | 522,629 | 388,441 | 114,510 | 502,951 |
The statement of financial activities includes all gains and losses recognised in the year.
| STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | |||||
|---|---|---|---|---|---|---|---|---|
| AS AT31 DECEMBER 2023 | ||||||||
| 2023 | 2022 | |||||||
| Notes | £ | £ | £ | £ | ||||
| Fixed Assets | ||||||||
| TangibleAssets | 10 | 437,703 | 437,826 | |||||
| Current Assets | ||||||||
| Debtors | 11 | - | - | |||||
| Cashat bankandin hand | 99,926 | 80,125 | ||||||
| 99,926 | 80,125 | |||||||
| Creditors:amounts falling due within one year |
13 | 15,000 - |
15,000 - |
|||||
| Net currentAssets | 84,926 | 65,125 | ||||||
| Total Assets less Current liabilities | 522,629 | 502,951 | ||||||
| Incomefunds | ||||||||
| Restrictedfunds | 114,510 | 114,510 | ||||||
| Unrestrictedfunds | 408,119 | 388,441 | ||||||
| 522,629 | 502,951 |
Welwyn Islamic society Charity registration number 1155040
December 2024…. The financial statements were approved by the Trustees on …1[st]
…… .......………… I. Qureshi
Mr Mohammed Qureshi
Trustee
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Accounting policies
1. Charity information
Welwyn Islamic Society is a charitable organisation established by a trust deed on 23 November 2013.
1.1 Accounting convention
The financial statements have been prepared in accordance with 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 financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations, but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, 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 financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Welwyn Islamic society Charity registration number 1155040
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
Basic financial liabilities, including creditors and bank loans 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Resources expended on charitable expenditure comprise in meeting the charitable objective. Such cost includes direct cost of the charitable activities together with those identifiable support cost incurred that enable these activities to be undertaken.
Governance cost and support cost are cost incurred for the management and administration of the Charity. These costs are incurred so that the Charity can operate and meet its statutory and constitutional obligation.
Support cost is allocated where appropriate to an activity based on use of resource. Staff cost where appropriate has been allocated on a consistent basis.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
No depreciation is provided as residual value is expected to be greater than cost
Welwyn Islamic society Charity registration number 1155040
Fixtures, fittings & equipment 25% on reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the statement of financial activities.
1.7 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 to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 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 debtors and 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 and bank loans 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Welwyn Islamic society Charity registration number 1155040
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2. Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3. Donations and legacies
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----- Start of picture text -----
Total Unrestricted
funds
2023 2022
£ £
Donations and gifts 48,556 30,876
----- End of picture text -----
4. Charitable Activities
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Property Property
2023 2022
£ £
Other Income - -
5. Raising funds
Total Unrestricted
funds
2023 2022
£ £
Fundraising and publicity
seeking donations, grantsand legacies - -
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6. Charitable activities
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----- Start of picture text -----
Total Total
2023 2022
£ £
Religious activities 15,106 8,013
Grant funding activities (see note 7) - -
Share of governance costs 13,772 11,406
28,878 19,419
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7. Grants payable
Welwyn Islamic society Charity registration number 1155040
Friday 2023 £ Grants to institutions: Local community - Religious organisation - Education - Humanitarian support - -
8. Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year. None of them (2023: none) were reimbursed expenses during the year (2023: Nil) for fund raising activity on behalf of the charity.
9. Employees
The average monthly number of employees during the year was:
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----- Start of picture text -----
2023 2022
Number Number
Total - -
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There were no employees whose annual remuneration was more than £60.000.
10. Tangible fixed assets
| Land and buildings |
Fixtures, fittings |
Total | |||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | |||||
| Cost | |||||||
| At1January2023 | 437,334 | 3,436 | 437,826 | ||||
| At 31 December 2023 | 437,334 | 3,436 | 440,770 | ||||
| Depreciation | |||||||
| At1January2023 | - | 2,943 | 2,943 | ||||
| At 31 December 2023 | - | 3,067 | 3,067 | ||||
| Carrying Amount | |||||||
| At 31 December 2023 | 437,334 | 369 | 437,703 | ||||
| At 31 December 2022 | 437,334 | 492 | 437,826 |
11. Debtors
| 11. Debtors | |||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | ||||||
| £ | £ | ||||||
| Amountsfalling duewithinone year: | |||||||
| Prepayments and accrued income | - | - |
12. Loans and overdraft
Welwyn Islamic society Charity registration number 1155040
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----- Start of picture text -----
2023 2022
£ £
Other Loans 15,000 15,000
Payable with one year 15,000 15,000
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Loans are not secured
13. Creditors: amounts falling due within one year
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----- Start of picture text -----
2023 2022
£ £
Borrowings 15,000 15,000
----- End of picture text -----
14. Analysis of net assets between funds
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----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds
2023 2023 2023 2022 2022 2022
Tangible assets 323,193 114,510 437,703 323,316 114,510 437,826
Current assets/(liabilities) 84,926 - 84,926 65,125 - 65,125
408,119 114,510 522,629 388,441 114,510 502,951
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15. Related party transactions
There were no disclosable related party transactions during the year (2023 – none).
16. Analysis of net funds
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----- Start of picture text -----
At 1 At 31
January December
2023 2023
£ £
Cash at bank and in hand 80,125 99,926
Loans falling within one year - 15,000 - 15,000
65,125 84,926
----- End of picture text -----
Welwyn Islamic society Charity registration number 1155040
WELWYN ISLAMIC SOCIETY
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023
Welwyn Islamic society Charity registration number 1155040
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr Mohammed Qureshi Mr Ahmed Mumuni Mr Hassan Deen Mr Khaled Dewan Charity number 1155040 Principal Address 19 Martinfield Business Centre Welwyn Garden city AL7 1HG
Welwyn Islamic society Charity registration number 1155040
CONTENTS
| Page | |
|---|---|
| Trsutees’ report | 1 - 2 |
| Statement of fnancial activities | 3 |
| Balance sheet | 4 |
| Notes to the accounts | 5 – 10 |
Welwyn Islamic society Charity registration number 1155040
TRUSTEES’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
Objectives and activities
The charity's objectives are to organise charitable events in the Welwyn Garden City Community including holding prayer meeting, public celebration of religious festivities, production and distribution of literature to enlighten the public on Islam and provision of Islamic education to the local community. The policies adopted in furtherance of these objectives are Friday prayer meetings, Ramadhan congregation and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Charity hold Friday prayers, Eid prayers and hold Ramadhan gathering including prayers.
The Trustees and volunteers manage and organise the Charity events.
Achievements and performance
The Charity has achieved its objectives of organising prayer events on regular basis throughout the year.
Since the acquisition of the premises - mosque - due to its locality there has been an increase in number of people attending the daily five times prayers and the number attending Friday prayers have substantially increased. To accommodate worshippers, we now have two sessions of Friday Prayers.
Financial review
The results of the Charity's activities are shown on pages 4 to 9 of the financial statements.
To safeguard the main activities of the Charity, the Trustees ensure that there are sufficient unrestricted funds to meet the charity's obligations for the next three months at any point in time.
The principal source of income are members annual fees, regular monthly donations, Friday and Ramdhan collection and other ad-hoc activities. The Charities expenditure consists of payment to preachers and other ancillary activities.
The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
An annual review of the risks the charity may face.
The establishment of systems and procedures to mitigate those risks identified in the plan.
Welwyn Islamic society Charity registration number 1155040
Implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
A Reserves Policy which aims to secure six months running costs for the charity in a reserve account.
Future Plans
The board of Trustee feel that with the increasing number of people using the mosque it would be appropriate to provide more facilities at the mosque. Accordingly, the board of trustee have sought advice from Legal advisers and Architect to provide the following new facilities:
New wudhu area, A Kitchen and Body washing facilities
Multipurpose hall - that can be divided into small halls when needed so to facilitate teaching of religious education in small groups for youngsters.
The Board of Trustee with the guidance of legal professional and Architects have made a planning application, to the Local authority. The Board is expecting a preliminary response from the council early next year.
The Board of Trustee with the advisors have engaged in consultation with the Local Authority regarding parking facilities and have contracted with specialist highway consultant to carry out parking survey and the results will be sent to the local Authority with our final application.
Structure, governance and management
The charity was established by a charitable trust deed on 23 November 2013.
The trustees who served during the year and up to the date of signature of the financial statements were:
Mr Mohammed Qureshi
Mr Ahmed Mumuni
Mr Hasan Deen
Mr Khaled Dewan Osman
The Trustees are elected at an AGM.
The Charity consist of various members, who elect three Trustees at an AGM to manage the charity.
The Trustees must declare to their fellow Trustee if there is any conflict of interest in respect of any activity or provision of services to the Charity.
The trustees' report was approved by the Board of Trustees.
..... .......… I. Qureshi
Mr Mohammed Qureshi
Trustee
Welwyn Islamic society Charity registration number 1155040
| STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | STATEMENTOF FINANCIAL ACTIVITIES | |||||
|---|---|---|---|---|---|---|---|---|
| INCLUDING INCOME AND EXPENDITURE ACCOUNT | ||||||||
| FOR THE YEAR ENDED31 DECEMBER 2023 | ||||||||
| Unrestricted Funds |
Restricted Funds |
Total |
Unrestricted Funds |
Restricted Funds |
Total |
|||
| Notes | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | ||
| Income from: | £ | £ | £ | £ | £ | £ | ||
| Donations andlegacies | 3 | 48,556 | - | 48,556 | 30,876 | - | 30,876 | |
| CharitableActivities | 4 | - | - | - | - | - | - | |
| 48,556 | - | 48,556 | 30,876 | - | 30,876 | |||
| Expenditure on: | ||||||||
| Fundraising | 5 | - | - | 362 | 362 | |||
| CharitableActivities | 6 | 28,878 | - | 28,878 | 19,419 | 362 | 19,781 | |
| Total expenditure | 28,878 | - | 28,878 | 19,419 | 362 | 19,781 | ||
| Net Income for the Year / movement in funds |
19,678 | - | 19,678 | 11,457 | 362 - |
11,095 | ||
| Fund balance as at 1 January2023 |
388,441 | 114,510 | 502,951 | 376,984 | 114,872 | 491,856 | ||
| Fund balance as at 31 December 2023 |
408,119 | 114,510 | 522,629 | 388,441 | 114,510 | 502,951 |
The statement of financial activities includes all gains and losses recognised in the year.
| STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | STATEMENTOF FINANCIAL POSITION | |||||
|---|---|---|---|---|---|---|---|---|
| AS AT31 DECEMBER 2023 | ||||||||
| 2023 | 2022 | |||||||
| Notes | £ | £ | £ | £ | ||||
| Fixed Assets | ||||||||
| TangibleAssets | 10 | 437,703 | 437,826 | |||||
| Current Assets | ||||||||
| Debtors | 11 | - | - | |||||
| Cashat bankandin hand | 99,926 | 80,125 | ||||||
| 99,926 | 80,125 | |||||||
| Creditors:amounts falling due within one year |
13 | 15,000 - |
15,000 - |
|||||
| Net currentAssets | 84,926 | 65,125 | ||||||
| Total Assets less Current liabilities | 522,629 | 502,951 | ||||||
| Incomefunds | ||||||||
| Restrictedfunds | 114,510 | 114,510 | ||||||
| Unrestrictedfunds | 408,119 | 388,441 | ||||||
| 522,629 | 502,951 |
Welwyn Islamic society Charity registration number 1155040
December 2024…. The financial statements were approved by the Trustees on …1[st]
…… .......………… I. Qureshi
Mr Mohammed Qureshi
Trustee
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Accounting policies
1. Charity information
Welwyn Islamic Society is a charitable organisation established by a trust deed on 23 November 2013.
1.1 Accounting convention
The financial statements have been prepared in accordance with 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 financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations, but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, 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 financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Welwyn Islamic society Charity registration number 1155040
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
Basic financial liabilities, including creditors and bank loans 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Resources expended on charitable expenditure comprise in meeting the charitable objective. Such cost includes direct cost of the charitable activities together with those identifiable support cost incurred that enable these activities to be undertaken.
Governance cost and support cost are cost incurred for the management and administration of the Charity. These costs are incurred so that the Charity can operate and meet its statutory and constitutional obligation.
Support cost is allocated where appropriate to an activity based on use of resource. Staff cost where appropriate has been allocated on a consistent basis.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
No depreciation is provided as residual value is expected to be greater than cost
Welwyn Islamic society Charity registration number 1155040
Fixtures, fittings & equipment 25% on reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the statement of financial activities.
1.7 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 to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 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 debtors and 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 and bank loans 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Welwyn Islamic society Charity registration number 1155040
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2. Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3. Donations and legacies
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Total Unrestricted
funds
2023 2022
£ £
Donations and gifts 48,556 30,876
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4. Charitable Activities
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Property Property
2023 2022
£ £
Other Income - -
5. Raising funds
Total Unrestricted
funds
2023 2022
£ £
Fundraising and publicity
seeking donations, grantsand legacies - -
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6. Charitable activities
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Total Total
2023 2022
£ £
Religious activities 15,106 8,013
Grant funding activities (see note 7) - -
Share of governance costs 13,772 11,406
28,878 19,419
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7. Grants payable
Welwyn Islamic society Charity registration number 1155040
Friday 2023 £ Grants to institutions: Local community - Religious organisation - Education - Humanitarian support - -
8. Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year. None of them (2023: none) were reimbursed expenses during the year (2023: Nil) for fund raising activity on behalf of the charity.
9. Employees
The average monthly number of employees during the year was:
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2023 2022
Number Number
Total - -
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There were no employees whose annual remuneration was more than £60.000.
10. Tangible fixed assets
| Land and buildings |
Fixtures, fittings |
Total | |||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | |||||
| Cost | |||||||
| At1January2023 | 437,334 | 3,436 | 437,826 | ||||
| At 31 December 2023 | 437,334 | 3,436 | 440,770 | ||||
| Depreciation | |||||||
| At1January2023 | - | 2,943 | 2,943 | ||||
| At 31 December 2023 | - | 3,067 | 3,067 | ||||
| Carrying Amount | |||||||
| At 31 December 2023 | 437,334 | 369 | 437,703 | ||||
| At 31 December 2022 | 437,334 | 492 | 437,826 |
11. Debtors
| 11. Debtors | |||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | ||||||
| £ | £ | ||||||
| Amountsfalling duewithinone year: | |||||||
| Prepayments and accrued income | - | - |
12. Loans and overdraft
Welwyn Islamic society Charity registration number 1155040
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2023 2022
£ £
Other Loans 15,000 15,000
Payable with one year 15,000 15,000
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Loans are not secured
13. Creditors: amounts falling due within one year
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2023 2022
£ £
Borrowings 15,000 15,000
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14. Analysis of net assets between funds
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Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds
2023 2023 2023 2022 2022 2022
Tangible assets 323,193 114,510 437,703 323,316 114,510 437,826
Current assets/(liabilities) 84,926 - 84,926 65,125 - 65,125
408,119 114,510 522,629 388,441 114,510 502,951
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15. Related party transactions
There were no disclosable related party transactions during the year (2023 – none).
16. Analysis of net funds
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At 1 At 31
January December
2023 2023
£ £
Cash at bank and in hand 80,125 99,926
Loans falling within one year - 15,000 - 15,000
65,125 84,926
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WELWYN ISLAMIC SOCIETY INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WELWYN ISLAMIC SOCIErY Indepond•nt Examlner's Reportto the Tru8t•e8 of Welwyn 18iamlc Socloty I reportto the charltytrustees on rryexamination oftheaccounts ofthe charityfortheyearended 31 December2023 which are set outon pages3to 11 Rosponslbllltle8 and ba818 of report Asth8 chadty'strustee& you are resIbleforts preparatlon ofthe CoUnts In accordance wlththe requlrements of the Charlties P£t2011 (IhèActl. I report In respoct of nry examinats'on ofthechartvs accounts canied out undersection 145 oftheAct and in carrylng out my exomination I have foll¢yNed aLLthe applJ'cabLe Directi Oven bythe Chertycommission under section 14515llbl oYth8Act. Ind•p•nd•nt •xamln•rf# ststement I have comp16ted nryexaminats'on. I confimi that no merial matters have ¢ometo nryattention In connecllon w6thth8 éX8mination gwingmec8useto be8that in ary m8t8rfal respect: 8ccounting recordsyre not kept In r8spectofth8 charfty 88 rw4ulr8d by sactlon 130ofth8*th: or 2. the 8ccourrts do notaccord hthOSe records" or 3. th8 8ccounts do rbXcompLyvthhtheappiic8bLe rgqulfwnentsconcemlngth8form a1 content of 8ccount8 set out inthe Ch8rttieslA£counts and Reports) Regumions 2CK)8 otherthan any rwuirementthatthe accounts e a'true andfalrvwvthlch Is not 8 matterconsetad as P8rtof an Ind8peThJentex8min8tlon. I have noconcems and he come across Moth8rm8tters In conn8etlonv4ithth8 8X8mlnatlontowhlch Attèntion Should bedrawn in this reportin ordertoen&)le a prow understsndingofthe accountsto be reKhed. For an(J on behalf of BaniLl8i Ltd. 20-22 Wenlock Rd London England N17GU Date 19 Decernb 2024