2023-06-30-accounts - Harrogate Islamic Association

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Harrogate Islamic Association

Charity No. 1162809

Trustees' Report and Unaudited Accounts

30 June 2023

Harrogate Islamic Association Contents

	Pages
Trustees' Annual Report	2
Independent Examiner's Report	4
Statement of Financial Activities	5
Balance Sheet	6
Statement of Cash flows	7
Notes to the Accounts	8
Detailed Statement of Financial Activities	9 to 14

Page 1

Harrogate Islamic Association Trustees Annual Report

Harrogate Islamic Association

The trustees present their report with the unaudited financial statements of the charity for the year ended 30 June 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity No. 1162809

Principal Office

Harrogate Islamic Association Claro Road Harrogate West Yorkshire HG1 4BA

Trustees

The following trustees served during the year:

R. Djamaa B. Khan H. Muhammed S. Oyekammi

Accountants

RK Accountants & Tax Advisors Acre House 47 Sticker Lane Bradford West Yorkshire BD4 8QB

Bankers

Lloyds Bank 8-11 Cambridge Cres Harrogate West Yorkshire HG1 1PQ

OBJECTIVES AND ACTIVITIES

(a) To advance the Islamic faith in Harrogate and district for the benefit of the public.

(b) To promote for the benefit of the inhabitants of Harrogate and District without distinction.

ACHIEVEMENTS AND PERFORMANCE

During this year our volunteers have raised £165,396.50 in donations

The building development and construction repairs have started

We have provided donations for Flood Relief & Earthquakes

We have supported another charity by providing a loan to support them

Page 2

Harrogate Islamic Association Trustees Annual Report

Next step is to complete all the necessary repairs and renovations

FINANCIAL REVIEW

At year end we have funds of £191,351.10 in the bank

This will be partly used for the renovations and ongoing running costs

Careful controls are in place to ensure cashflow

Therefore, we are in a strong financial position to continue into future years

PLANS FOR FUTURE PERIODS

To complete the renovation work in stages

To ultimately fully complete and open the centre for its intended use

STRUCTURE, GOVERNANCE AND MANAGEMENT

The association is governed by a written constitution

The Management Committee appoints Trustees from amongst themselves

The Trustees manage the duties and tasks appointed during regular meetings

Trustees are already familiar with the work of the Association

Currently all the personnel involved are volunteers

Statement of trustees' responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees 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.

Signed on behalf of the charity's trustees

B. Khan Trustee 30 June 2023

Page 3

Harrogate Islamic Association Independent Examiners Report

Independent Examiner's Report to the trustees of Harrogate Islamic Association

I report to the trustees on my examination of the financial statements of Harrogate Islamic Association for the year ended 30 June 2023.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the charity's financial statements 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 can 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:

the accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination.

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

Saqib Khan MAAT RK Accountants & Tax Advisors Acre House 47 Sticker Lane Bradford West Yorkshire BD4 8QB 30 June 2023

Page 4

Harrogate Islamic Association Statement of Financial Activities for the year ended 30 June 2023

Unrestricted funds	Total funds	Total funds
2023	2023	2022
£	£	£

165,397	165,397	525,763
165,397	165,397	525,763

36	36	1,500
9,702	9,702	-
49,011	49,011	32,374
58,749	58,749	33,874
-	-	-
106,648	106,648	491,889
-	-	-
106,648	106,648	491,889

106,648	106,648	491,889

618,003	618,003	126,114
724,651	724,651	618,003

Page 5

Harrogate Islamic Association Balance Sheet

at 30 June 2023

Charity No. 1162809 Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Net current assets Total assets less current liabilities Net assets excluding pension asset or liability Total net assets The funds of the charity Restricted funds 10 Unrestricted funds 10 General funds Reserves 10 Total funds	2023 £ 483,299 483,299 50,000 191,352 241,352 241,352 724,651 724,651 724,651 724,651 724,651 724,651	2022 £ 483,299
		483,299 - 134,704
		134,704
		134,704 618,003
		618,003
		618,003
		618,003
		618,003
		618,003

Approved by the trustees on 30 June 2023

And signed on their behalf by:

B. Khan Trustee 30 June 2023

Page 6

Harrogate Islamic Association Notes to the Accounts

for the year ended 30 June 2023

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic if Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA.
Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 7

Harrogate Islamic Association Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other 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.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other 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.

Page 8

Harrogate Islamic Association Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

Page 9

Harrogate Islamic Association Notes to the Accounts

2 Statement of Financial Activities - prior year

2 Statement of Financial Activities - prior year
Income and endowments from: Donations and legacies Total Expenditure on: Raising funds Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 3 Income from donations and legacies 4 Expenditure on raising funds Fundraising trading costs	Unrestricted £ 165,397 - 165,397 Unrestricted £ 36 36	Unrestricted funds 2022 £ 525,763 525,763 1,500 32,374 33,874 491,889 491,889 491,889 126,114 618,003 Total 2023 £ 165,397 - 165,397 Total 2023 £ 36 36	Total funds 2022 £ 525,763
			525,763 1,500 32,374
			33,874
			491,889
			491,889
			491,889 126,114
			618,003
			Total 2022 £ 349,462 176,301
			525,763
			Total 2022 £ 1,500
			1,500

Page 10

Harrogate Islamic Association Notes to the Accounts

5 Expenditure on charitable activities

Expenditure on charitable activities Governance costs 6 Other expenditure Motor and travel costs Premises costs General administrative costs Legal and professional costs 7 Staff costs No employee received emoluments in excess of £60,000. 8 Tangible fixed assets Cost or revaluation At 1 July 2022 At 30 June 2023 Net book values At 30 June 2023 At 30 June 2022 9 Debtors Other debtors	Unrestricted £ 9,702 9,702 Unrestricted £ 2,050 44,658 717 1,586 49,011 2023 £ 50,000 50,000	Total 2023 £ 9,702 9,702 Total 2023 £ 2,050 44,658 717 1,586 49,011 £ 483,299 483,299 483,299 483,299	Total 2022 £ -
			-
			Total 2022 £ - 4,322 772 27,280
			32,374
			£ 483,299
			483,299
			483,299
			483,299
			2022 £ -
			-

Page 11

Harrogate Islamic Association Notes to the Accounts

10 Movement in funds

Incoming resources (including other gains/losses ) £ 165,397 165,397 Unrestricted funds £ 483,299 191,352 674,651 At 1 July 2022 £	Resources expended £ (58,749) (58,749) Restricted funds £ - 50,000 50,000 Cash flows £	At 30 June 2023 £ 724,651
		724,651
		Total £ 483,299 241,352
		724,651
		At 30 June 2023 £
134,704	56,648	191,352
134,704 134,704	56,648 56,648	191,352
		191,352

Page 12

Harrogate Islamic Association Statement of Cash flows for the year ended 30 June 2023

Cash flows from operating activities Net income per Statement of Financial Activities Adjustments for: Increase in trade and other receivables Net cash provided by operating activities Net cash used in investing activities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	2023 £ 106,648 (50,000) 56,648 - - 56,648 134,704 191,352	2022 £ 491,889 -
		491,889
		(483,299)

		-

		8,590
		126,114
		134,704

Components of cash and cash equivalents
Cash and bank balances	191,352	134,704

	191,352	134,704

Page 13

Harrogate Islamic Association Detailed Statement of Financial Activities

for the year ended 30 June 2023

Income and endowments from: Donations and legacies Total income and endowments Expenditure on: Costs of other trading activities Total of expenditure on raising funds Charitable activities Total of expenditure on charitable activities Motor and travel costs Travel and subsistence Premises costs Rent Rates Premises repairs and maintenance General administrative costs, including depreciation and amortisation General insurances Stationery and printing Legal and professional costs Other legal and professional costs Total of expenditure of other costs Total expenditure Net gains on investments	Unrestricted funds 2023 £ 165,397 - 165,397 165,397 36 36 36 9,702 9,702 9,702 2,050 2,050 6,855 1,013 36,790 44,658 717 - 717 1,586 1,586 49,011 58,749 -	Total funds 2023 £ 165,397 - 165,397 165,397 36 36 36 9,702 9,702 9,702 2,050 2,050 6,855 1,013 36,790 44,658 717 - 717 1,586 1,586 49,011 58,749 -	Total funds 2022 £ 349,462 176,301
			525,763
			525,763 1,500
			1,500
			1,500 -
			-
			- -
			-
			4,322 - -
			4,322
			687 85
			772
			27,280
			27,280

			32,374
			33,874 -

Page 14

Harrogate Islamic Association Detailed Statement of Financial Activities

Net income Net income before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	106,648 106,648 - 106,648 618,003 724,651	106,648 106,648 - 106,648 618,003 724,651	491,889
			491,889 -
			491,889
			126,114
			618,003

Page 15