**Charity Registration No. 1162811**
**Company Registration No. 07822028 (England and Wales)**
# **NORTH ILFORD COMMUNITY CENTRE LTD ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 OCTOBER 2020**
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
Mr R Patel Mr M Firoz Mr A Patel Mr S Ahmed Mr A Ugradar
**Charity number** 1162811 **Company number** 07822028 **Registered office** C/O Whitmore Law Llp 10 Cameron Road Seven Kings Ilford Essex United Kingdom IG3 8LA **Accountants** Vision Consulting Accountants Limited The Gherkin Building 28th Floor 30 St. Mary Axe London United Kingdom EC3A 8EP
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 12|
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
The Trustees present their annual report and financial statements for the year ended 31 October 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.
## **Objectives and activities**
The principal activity of the Charity continued to be that of an established mosque and a religious school.
The C harity's purposes as set out in the objects contained in the C ompany's M emorandum of A ssociation are to:
- advance the faith and practices of Islam;
- advance education and training of the teachings of Islam for the public benefit;
- relieve or prevent poverty, sickness, distress and suffering irrespective of nationality, race, ethnic origin and religious beliefs;
- establish and administer a mosque, madra s sah, recreational and educational facilities; and
- assist Muslims in complying with the tenets of Islam.
- economic and social development of the community
The strategies used to meet these objectives included:
- providing a place of worship for congregational five daily prayers;
- providing facilities and teachers; and
- collecting funds from the congregation to donate to good causes.
The Trustees have paid due regard to guidance on public benefit issued by T he Charity Commission in deciding what activities the Charity should undertake.
## **Use of volunteers**
The Charity encourages all members of the Mosque and community to be involved in voluntary services and to share the skills they have acquired in their life with others.
All those volunteers working with projects involving children or other vulnerable groups undergo mandatory disclosure and barring service (DBS) checks.
## **Achievements and performance**
The Charity continued to provide the facilities of the Mosque for the performance of prayers, worship and madrassah to the local community. The Trustees are satisfied with the overall performance of the Charity.
The Charity also continued fund raising activities for running of the Mosque and Madrassah. The Trustees agree that fund-raising programs should be more focused in order to bring in additional donations.
## **Financial review**
During the year the Charity raised donations of £0. (2019: £3,751) for the extension of the Mosque.
The Charity also raised £12,633 (2019: £18,156) for the running of the Mosque and received government grants of £30,558 during the year.
## **Reserves policy**
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
- 1 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate such exposure.
## **Plans for future**
The Trustees plan to continue holding a series of events inviting visiting Imams to the Mosque who can share their learning and understanding of Islam and teaching of Quran with the community.
## **Structure, governance and management**
The Charity is a registered charity and a company limited by guarantee without having any share capital.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date signature of the financial statements were:
Mr R Patel Mr M Firoz Mr A Patel Mr S Ahmed Mr A Ugradar
The D irectors of the C ompany are charity trustees for the purpose of charity law and are also members under the company's Articles of Association. Under the Memorandum and Articles of Association the C harity may appoint by ordinary resolution additional directors. All members g a ve their time voluntarily and received no benefits from the charity.
## **Recruitment and appointment of trustees**
New trustees are appointed by members of the Charity at an AGM or at a committee meeting.
## **Induction and training of trustees**
New trustees are briefed on their legal obligations under the Charity Law, objectives, policies, procedures and financial performance of the Charity. New trustees also meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events which will facilitate the undertaking of the their role.
## **Impact of Covid-19**
This year was overshadowed by the Covid-19 pandemic, with closures of the charity's facilities, and restrictions in place when open. Social distancing requirements limited prayer capacity . The Covid-19 pandemic had a huge impact on external charity collections, especially in Ramadan 2020 when the mosque was completely closed. However, the shortfall in collections was mitigated with g overnment grants.
Despite the impact of Covid-19 and the lockdowns , classes continued online. Stringent administrative protocols were put in place to-monitor attendance, learning and pupil welfare.
## **Prior year adjustments**
A prior year adjustment, increasing opening unrestricted funds by £339,999 has been posted and details of this adjustment are included in Note 14 of the financial statements .
The Trustees' r eport was approved by the Board of Trustees.
## **Mr R Patel**
Trustee Dated: 25 January 2022
- 2 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF NORTH ILFORD COMMUNITY CENTRE LTD**
I report to the Trustees on my examination of the financial statements of North Ilford Community Centre Ltd (the Charity) for the year ended 31 October 2020.
## **Responsibilities and basis of report**
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity 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 the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable 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 Charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements 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 financial statements to be reached.
## **Ghulam Alahi FCA Vision Consulting Accountants Limited**
The Gherkin Building 28th Floor 30 St. Mary Axe London EC3A 8EP United Kingdom
Dated: 25 January 2022
- 3 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
|**Unrestricted**Unrestricted
Restricted
**funds**
funds
funds
**2020**
2019
2019
as restated
as restated
as
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
43,171
18,156
3,751
**Expenditure on:**
Charitable activities
**4**
17,627
15,867
-
**Net incoming resources before transfers**
25,544
2,289
3,751
Gross transfers between funds
-
18,019
(18,019)
**Net movement in funds**
25,544
20,308
(14,268)
Fund balances at 1 November 2019
487,820
467,512
14,268
**Fund balances at 31 October 2020**
513,364
487,820
-|Total
2019
restated
**£**
21,907
15,867
6,040
-
6,040
481,780
487,820|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **BALANCE SHEET**
## _**AS AT 31 OCTOBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**11**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2020**
**£**
664
30,975
31,639
(1,757)|**£**
483,482
29,882
513,364
513,364
513,364|**2019**
**as restated**
**£**
-
4,918
4,918
(580)|
**£**
483,482
4,338
487,820
487,820
487,820|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 October 2020.
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 25 January 2022
Mr R Patel **Trustee**
## **Company Registration No. 07822028**
- 5 -
**NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **Charity information**
North Ilford Community Centre Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is C/O Whitmore Law Llp, 10 Cameron Road, Seven Kings, Ilford, Essex, IG3 8LA, United Kingdom.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, 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 Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified 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 unless the funds have been designated for other purposes.
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 for the extension of the Mosque. Restricted funds are transferred to Unrestricted funds upon completion of the Mosque's extension.
## **1.4 Income**
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.
Government grants are recognised once the charity is entitled, unless performance conditions require deferral of the amount.
- 6 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life.
Land and buildings
## Nil
Freehold land and buildings are not depreciated but are subject to annual impairment review. The residual value of the building at the end of its estimated useful life is estimated to be higher than the carrying value, therefore the depreciation charge on building is nil.
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 net income/(expenditure) for the year.
## **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 in order 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 short-term 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.
- 7 -
**NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **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 considered to be 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**
|**Unrestricted**Unrestricted
Restricted
**funds**
funds
funds
**2020**
2019
2019
**£**
£
£
Donations and gifts
12,633
18,156
3,751
Government grant s receivable
30,538
-
-
43,171
18,156
3,751|Total
2019
£
21,907
-
21,907|
|---|---|
- 8 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
|**Donations and legacies**
**Government grants receivable**
Coronavirous job retention scheme
Local authority discretionery grant|5,538
25,000
30,538|-
-
-|**(Continued)**
-
-
-
-
-
-|
|---|---|---|---|
## **3 Donations and legacies**
## **4 Charitable activities**
|Share of support costs (see note 5)
Share of governance costs (see note 5)
**Support and governance costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
-
11,024
Rates
499
-
Light and heat
2,042
-
Insurance
798
-
Bank charges
(39)
-
Accountancy fee
1,803
-
Fine and penalties
1,500
-
6,603
11,024
Analysed between
Charitable activities
6,603
11,024|**2020**
**£**
6,603
11,024
17,627
**2020**
Support
costs
Governance
costs
**£**
£
£
11,024
-
10,671
499
1,083
-
2,042
1,820
-
798
1,131
-
(39)
462
-
1,803
500
-
1,500
200
-
17,627
5,196
10,671
17,627
5,196
10,671|**2019**
**£**
5,196
10,671
15,867
2019
£
10,671
1,083
1,820
1,131
462
500
200
15,867
15,867|
|---|---|---|
## **5 Support and governance costs**
Support costs include accountancy fees of £1,803 (2019- £ 500 ).
## **6 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
- 9 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **7 Employees**
|The average monthly number of employees during the year was:
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was more than £60,000.
**8**
**Tangible fixed assets**
**Cost**
At 1 November 2019
At 31 October 2020
**Carrying amount**
At 31 October 2020
At 31 October 2019
**9**
**Financial instruments**
**Carrying amount of financial assets**
Measured at amortised cost
**Carrying amount of financial liabilities**
Measured at amortised cost
**10**
**Debtors**
**Amounts falling due within one year:**
Prepayments and accrued income|**2020**
**Number**
1
**2020**
**£**
10,735
153
136
11,024
**Land and**
**2020**
**£**
30,975
1,593
**2020**
**£**
664|**2019**
**Number**
1
**2019**
**£**
10,557
-
114
10,671
**buildings**
**£**
483,482
483,482
483,482
483,482
**2019**
**£**
4,918
420
**2019**
**£**
-|
|---|---|---|
- 10 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **11 Creditors: amounts falling due within one year**
|Other taxation and social security
Other creditors
Accruals and deferred income|**2020**
**£**
164
1,289
304
1,757|**2019**
**£**
160
420
-
580|
|---|---|---|
## **12 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||||||**Movement in funds**|**Movement in funds**|**Movement in funds**||**Movement**||
|---|---|---|---|---|---|---|---|---|---|---|
||||||||||**in funds**||
||**Balance**||**at**|**Incoming**||**Resources**|**Transfers**|**Balance at**|**Incoming**|**Balance at**|
||**1 November**|||**resources**||**expended**||**1 November**|**resources**|**31 October**|
|||**2018**||||||**2019**||**2020**|
||||**£**||**£**|**£**|**£**|**£**|
**£**|**£**|
||Building||||||||||
||extension|14,268|||3,751|(13,790)|
(4,229)|
-|
-|-|
|**13**|**Analysis of net assets between funds**||||||||||
||||||||**Resources**|Resources|Restricted|Total|
||||||||**expended**|expended|funds||
||||||||**2020**|2019|2019|2019|
||||||||**£**|£|£|£|
||Fund balances at 31 October|||2020 are|||||||
||represented by:||||||||||
||Tangible assets||||||483,482|483,482|-|483,482|
||Current assets/(liabilities)||||||29,882|4,338|-|4,338|
||||||||513,364|487,820|-|487,820|
- 11 -
## **NORTH ILFORD COMMUNITY CENTRE LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **14 Prior period adjustment**
## **Changes to the balance sheet**
|**Changes to the balance sheet**||||
|---|---|---|---|
||**At 31**|**October 2019**||
||**As previously**|**Adjustment**|**As restated**|
||**reported**|||
||**£**|**£**|**£**|
|**Creditors due within one year**||||
|Other creditors|(340,419)|339,999|(420)|
|**Income funds**||||
|Unrestricted funds|147,821|339,999|487,820|
|**Total equity**|147,821|339,999|487,820|
|**Changes to the statement of financial activities**||||
||**Period ended 31 October**||**2019**|
||**As previously**|**Adjustment**|**As restated**|
||**reported**|||
||**£**|**£**|**£**|
|Net movement in funds|6,040|-|6,040|
A prior year adjustment has been made to correct the other creditors and funds positions. In previous years the value of a building donated to the charity, £339,999, was included within other creditors. This amount should have been included as unrestricted funds in the financial statements. The adjustment has had the effect of increasing opening unrestricted funds at 1 November 2018 by £339,999.
- 12 -