Charity registration number 1164657
Company registration number CE005769 (England and Wales)
SRI LANKAN MUSLIM CULTURAL CENTRE UK ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
SRI LANKAN MUSLIM CULTURAL CENTRE UK
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr A R Munawar Mr M A Mohamed Ibrahim Mr S M Razeen Mr M Majeeth (Appointed 1 May 2023) Mr H Mohamed (Appointed 1 May 2023) Mr M M Ilyas (Appointed 1 May 2023) Mr S M Lareef (Appointed 1 May 2023) Mr A H Mohamed Lafir (Appointed 1 May 2023) Mr M Junaideen (Appointed 1 May 2023) Mr M L Mohamed Mowsoop (Appointed 1 May 2023) Mr M M Basheer (Appointed 1 May 2023) Mr M Noordeen (Appointed 1 May 2023) Mr N Farook (Appointed 1 May 2023) Mr F Faizeen (Appointed 1 May 2023) Mr M Mubassir (Appointed 1 May 2023) Charity number 1164657 Company number CE005769 Principal address 2 Whitefriars Avenue Harrow Middlesex United Kingdom HA3 5RN Registered office 2 Whitefriars Avenue Harrow Middlesex United Kingdom HA3 5RN Auditor Reddy Siddiqui LLP 183-189 The Vale Acton London United Kingdom W3 7RW
SRI LANKAN MUSLIM CULTURAL CENTRE UK
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 7 |
| Statement of Trustees responsibilities | 8 |
| Independent auditor's report | 9 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 20 |
SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their report and financial statements for the year ended 31 December 2022.
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 CIO's constitution, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
Our objectives are set to reflect our faith and community aims. Each year our trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
Our aims remain to provide a facility as a worship place for Muslims and facilitate community activities for Sri Lankan Muslims in UK and Muslim inhabitants of Harrow. Our long term ambition is to improve their faith and to maintain confidence, respect and peace among the community through our activities.
The objects of the charity are set out in the charity's constitution and are summarised as:
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To advance the Islamic Religion.
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To promote the Islamic and Secular education, sport and leisure activities.
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To relieve those who are in conditions of poverty, sickness and distress or those who are otherwise in charitable need.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the CIO should undertake.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
OBJECTIVES AND ACTIVITIES Significant activities
Charitable Activities The charity engages in a diverse range of activities aligned with its charitable objectives. The trustees deem these activities, summarised below, to be beneficial for worshippers at our Centre, Sri Lankan Muslims in the United Kingdom, and the broader Harrow community.
Religious and Social Activities: Our Centre serves as a place of worship and congregation, hosting events integral to our faith and culture. During the reviewed period, we offered a variety of religious services and activities, including:
Prayers: The Centre remains accessible throughout the day for daily and Friday prayers. The average weekly attendance for prayers exceeds 2,450 individuals, nearly doubling during Ramadan. The congregation for the Friday 'Jumuah' prayer consistently exceeds 1,000 attendees. The Friday sermon and weekly talks are delivered in English.
Ramadan: This period witnesses the highest footfall, with over 50,000 individuals attending congregational prayers. It poses challenges for our dedicated staff and volunteers, who work tirelessly into the night to facilitate special prayers attended by thousands. Each evening, the Mosque provides free Iftar meals for an average of 500 men and women. The Mosque conducts six congregational prayers on each of the two Eid mornings, catering to over 6,000 worshippers for Eid al-Fitr and Eid al-Adha.
Quran and Islamic Educational Classes: Learning and memorising the Qur'an hold significant importance in religious education. Islamic educational classes are conducted regularly, offering this facility to the young members of our Muslim community. Over 800 young individuals attend these classes regularly, designed to cater to individual progress and conducted on different days.
Islamic Lectures: We routinely organise Islamic lectures delivered by knowledgeable scholars on diverse subjects. These lectures, held at our Centre, aim to disseminate Islamic knowledge within the Muslim community and foster social cohesion. The promotion of authentic Islamic teachings prevents misunderstandings and facilitates spiritual and academic growth in a secure environment.
Zakat: Our faith emphasises the obligation of offering Zakat by those able to do so. The Centre collects Zakat in accordance with Islamic teachings, distributing it for various purposes, including aiding others and advancing Islamic education. Additionally, we facilitate the donation of Zakat through registered UK charities like Islamic Relief and Human Appeal, as well as through registered charities in Sri Lanka. SLMCC undertakes this collection and distribution of Zakat without charge.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Qurbani: The Centre collects contributions for Qurbani (Animal Sacrifice) during the Hajj festival from individuals. These contributions are then distributed among the less fortunate in Sri Lanka.
Disaster Relief: The Centre collects donations independently or in collaboration with relief organisations to assist affected individuals. Funds raised for various causes are distributed through partner charities.
Islamic Higher Education Project: In 2019, we successfully acquired new premises at 2A, Tudor Road, Harrow, for the establishment of Northwest London's first centre for Islamic Higher Studies. This project aims to nurture future leaders, Imaams, Alimas, mentors, and teachers who embrace British culture and heritage while upholding a strong Islamic identity. SLMCC harbours ambitious goals for this project, much like our Madrasah that commenced with only two classes and 30 students in 2002. Over the past 21 years, we've produced over 50+ Huffaz, many of whom teach in our Madrasah, lead Taraweeh prayers, or pursue Islamic Higher Education elsewhere due to current limitations at SLMCC. Our objective is to establish a full-time academic Islamic Studies programme, combining traditional Islamic learning with contemporary scholarship. Furthermore, we intend to create on-site and online short educational programmes accessible to a wider audience unable to commit to the full-time curriculum.
Community Activities:
Sports Activities: We annually organise sports activities for both children and adults in the Sri Lankan Muslim community and Harrow at large.
Youth Club: In partnership with ABYF, we host bi-weekly Friday youth club sessions from 7pm to 9pm. These sessions are open to boys and girls aged 10 to 18, fostering friendships, skills, and knowledge in an enjoyable and enriching environment.
Interfaith Activities: We arrange diverse events for the local community to promote inter-community engagement and dialogue.
Community Support: The SLMCC-NIDA Foodbank, initiated in January 2021 in collaboration with HelpHarrow (Harrow Council), distributes essential food parcels to those in need. Operating on Sundays from 2:00pm to 4:00pm at SLMCC, the foodbank serves as a distribution and collection point.
Utilisation of Volunteers
Volunteers constitute a vital resource in our faith and community initiatives. They actively participate in the majority of our activities and projects. We encourage all SLMCC community members to engage in voluntary activities and share their expertise. Volunteers involved in projects concerning children or vulnerable groups undergo DBS checks to ensure safeguarding.
ACHIEVEMENT AND PERFORMANCE Charitable activities
Health Seminars and Consultations: We conduct Health seminars and Consultation through Muslim GPs at our Centre on a periodic basis. Also a virtual awareness programme was conducted at the beginning of Ramadhan to have a healthy diet throughout month.
Career Guidance Program: In summer we commenced a career guidance program with the objective of educating the community youth with the challenges they face in the current world. This would help them to make educational, training and occupational choices to manage their careers and be better citizens.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW
Principal funding sources
Our Centre's main sources of income are regular community members' donations and Friday congregations' donations.
Investment policy and objectives
SLMCC has no long term investments. Our cash reserves are held in current accounts.
Reserves policy
The trustees have reviewed the reserves of the charity. Their policy is to hold sufficient funds to meet four months operating costs of the Centre, excluding the collection and distribution of Zakat, and of our community activities and programs.
Strategic Report
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
Achievements and performance
Financial review
It is the policy of the CIO 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 consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the CIO’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.
The Trustees have assessed the major risks to which the CIO is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
Sri Lankan Muslim Cultural Centre UK (SLMCC) is constituted as a Charitable Incorporated Organisation registered with the Charity Commission on 2nd December 2015 under charity number 1164657. It is governed by constitution.
Sri Lankan Muslim Cultural Centre UK (SLMCC) was previously governed by a deed of trust. The trustees and its members were pursuing the possibility of moving to Charitable Incorporated Organisation model. After a long process, it was incorporated as a CIO on 02 December 2015.
The Trustees who served during the year and up to the date of signature of the financial statements were:
| were: | |
|---|---|
| Mr A Kamaldin | (Resigned 1 May 2023) |
| Mr M Zawahir | (Resigned 1 May 2023) |
| Mr A R Munawar | |
| Mr N Mazahir | (Resigned 1 May 2023) |
| Mr M A Mohamed Ibrahim | |
| Mr M Shaan | (Resigned 1 May 2023) |
| Mr F Abdul Hameed | (Resigned 1 May 2023) |
| Mr S M Razeen | |
| Hafiz Munawar Junaideen | (Resigned 1 May 2023) |
| Mr Z Zubair | (Resigned 1 May 2023) |
| Mr Halaldeen Abdul Jabbar | (Resigned 1 May 2023) |
| Mr Fahim Cassim | (Resigned 1 May 2023) |
| Mr Ashraf Jamaldeen | (Resigned 1 May 2023) |
| Mr Fairoos Sanoon Lebbe | (Resigned 1 May 2023) |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| Mr Meera Shahib Mawjuth | (Resigned 1 May 2023) |
|---|---|
| Mr M Majeeth | (Appointed 1 May 2023) |
| Mr H Mohamed | (Appointed 1 May 2023) |
| Mr M M Ilyas | (Appointed 1 May 2023) |
| Mr S M Lareef | (Appointed 1 May 2023) |
| Mr A H Mohamed Lafir | (Appointed 1 May 2023) |
| Mr M Junaideen | (Appointed 1 May 2023) |
| Mr M L Mohamed Mowsoop | (Appointed 1 May 2023) |
| Mr M M Basheer | (Appointed 1 May 2023) |
| Mr M Noordeen | (Appointed 1 May 2023) |
| Mr N Farook | (Appointed 1 May 2023) |
| Mr F Faizeen | (Appointed 1 May 2023) |
| Mr M Mubassir | (Appointed 1 May 2023) |
None of the Trustees has any beneficial interest in the CIO. All of the Trustees are members of the company and
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees are responsible for the general control and management of the charity. The connected parties to trustees work and receive remuneration or other financial benefits for their work. Please see note 16.
The trustees meet together as a body normally on a monthly basis and are responsible for all decisions taken in relation to running the Centre as well as the community facilities and the activities provided by the Centre. To assist in the smooth running of the charity the trustees have set up a number of sub committees that help them oversee certain aspects of the charity's work. List of sub-committees are as follows;
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Al Falah Educational Centre
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Education and community development
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Finance, account and fund raising
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Administration and support
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Building and hall hire
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Da'wa, religious activities and neighbourhood relations
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Sports, recreational and social activities
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Ramadan
Each Sub committee is chaired by a member of the Board of Trustees (BoT). Members outside the BoT also form part of these sub-committees making it a wider participation amongst the community members. Sub committees have been delegated specific tasks from the BoT and there is clear scope of their roles and responsibilities. Progress are updated from each sub committees and discussed monthly at BoT meetings by the respective chairperson.
Induction and training of new trustees
Following the appointment, new trustees are introduced to their role and given a copy of the constitution and amendments; a copy of the annual report and statement of accounts and a guide to the policies, procedure and by laws. A number of publications from the Charity Commission are also provided including the guidance on charities, public benefit and on the advancement of religion for the public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act.
Risk management
The trustees have assessed the risks the charity faces and have drawn up a risk matrix which identifies the major risks by area of activity, the nature of those risks, the likelihood of the risks happening, and the measures taken to manage them. The trustees review this risk matrix regularly at their meetings and at meetings of the two sub committees on finance and buildings. The trustees are satisfied that systems are in place, or arrangements are in hand, to manage the risks that have been identified. In particular, Insurance cover is in place and the finances of the Centre are kept under review.
Auditor
In accordance with the company's articles, a resolution proposing that Reddy Siddiqui LLP be reappointed as auditor of the company will be put at a General Meeting.
Disclosure of information to auditor
Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees repo ncluding the strategic report, was apprtsved by the Board of Trustees. een Mr M Junald88n Trustee Daled.'23 October 2023 Trustee Dated.. 23 Octobor 2023
SRI LANKAN MUSLIM CULTURAL CENTRE UK
STATEMENT OF TRUSTEES RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees, who are also the directors of Sri Lankan Muslim Cultural Centre UK for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF SRI LANKAN MUSLIM CULTURAL CENTRE UK
Opinion
We have audited the financial statements of Sri Lankan Muslim Cultural Centre UK (the ‘CIO’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the CIO in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the CIO’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SRI LANKAN MUSLIM CULTURAL CENTRE UK Rèsponsibilitlès of Trust8•s As explained more fully in the statement ol Trustèès rèsponsibilitiès, the Tmslees. who arè also thè dirèctors ol the CIO for the purpose ol company law. are responsib lor the preparation ol the financial staternen15 and fgr being satisfied that they give a Irue and fair vwl, and lor such internal Control a$ the Trusiees deleimine Is necessary lo ènable the preparalion of finanual slatèmenis that are frèè from matenal misstatemÈni. whelher due to fraud or error. In preparing the financial statements, the Truslees are responsible for assessing the CIO'S ability to continue a5 a going concern. di5dogng. as applicable, matters related to going cnncem and using the going concern basis of accounting unless the Trvslees either intend to IK4uidate the chantae company or lo cease operations. or have no realistic akernative but lo do so. Audltoes rnsponslblllti¢$ foi th• audlt of th• fin•n¢l•l ¥tstwnent• We have been appointed as audrtor undèr section 144 of the Charitie$ Acl 2011 and reF in aeeordan¢g with th¢ Acl and relevant règulations madè or hawn9 effect Ihereunder. Our obje¢lives are lo obtain reasonable a55urance abwt whether the financial slatements as a whole are free from rnaterial missialernent. whether due lo fraud or error. and to issue an audrtorfs report that includes our opinion. Reasonable assurance is a high level ol assurance bul is not a guaranlee that an audit conducled in accordanc8 wilh ISAS IUKI will afvlays detect a material misslatemenl when rt exists. Misstatements can arise from fraud of error and are considered material il. individually or in the aggregate, they coukl reaSonaY b8 expected lo influenc• the economic decisions ol users taken on the basis ol ttrse finan¢ial statèmènts. The exlenl lo whi¢h our pro¢edures are capable ol delecting irregularilios. induding fraud. is detsiled below. A further descriplion of our responsibilrties is availab on Ihe Financial Reporting CouncAI's w8bsit& al.. https'.11 www.frc.org.ukjaudit0rsresponsi.ll11e$. This description forns part of our auditorfs report. U8• of our r•port This report Is made solely lo the ¢harty's ITuslees. 8$ a bo<ly. rn aC¢OTdan¢e with part 4 of the Charilie5 IAccoun15 and Reptsrtsl Regulations 2008. Ouf audit work ha5 been undertaken so that we might state lo the charity'5 Irusle85 those matters we are required to slale lo Ihem in an audilof s report and lor no olher purpose. To the fullesl extent permitted by law. we do not accept or assume responsibility lo anyone other than the chanty and the charrty's Irustoes as a body. lor our audrt work. for tS 18port. or for the opinions we have fom)ed. Rèddy diqui LLP 23 October 2023 Ch•rt•md Ac¢ount•nts ststutory Audltor 183-189 The Vale Aclon London Unrted Kingdom 37RW 10-
SRI LANKAN MUSLIM CULTURAL CENTRE UK
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income and endowments from: Donations and legacies 3 291,411 17,595 Other trading activities 4 48,910 - Other income 5 341,668 - Total income 681,989 17,595 Expenditure on: Charitable activities 6 456,910 25,874 Net income/(expenditure) for the year/ Net movement in funds 225,079 (8,279) Fund balances at 1 January 2022 940,824 871,311 Fund balances at 31 December 2022 1,165,903 863,032 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 309,006 285,702 5,717 48,910 12,445 - 341,668 287,281 - 699,584 585,428 5,717 482,784 473,596 4,710 216,800 111,832 1,007 1,812,135 828,992 870,304 2,028,935 940,824 871,311 |
Total 2021 £ 291,419 12,445 287,281 |
|---|---|---|
| Donations and legacies 3 Other trading activities 4 Other income 5 Total income Expenditure on: Charitable activities 6 Net income/(expenditure) for the year/ Net movement in funds Fund balances at 1 January 2022 Fund balances at 31 December 2022 |
||
| 591,145 | ||
| 478,306 | ||
| 112,839 1,699,296 |
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| 1,812,135 |
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.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK BALANCE SHEET AS AT 31 DECEMBER 2022 2032 2021 Nol•s Flxed assets Tangible assets 11 2,647,321 2,671,593 Current assets Stock5 Debtors Cash at bank and in hand 12 13 6,414 55,052 144,310 5,571 51,823 192,017 205.776 249,411 Creditor8'. amounts falling duè within oné yaar 14 {824,1621 11.108,8691 Net current liabilities 1618,3861 {859,4581 Totsl assets less current Ilabllltles 2,028,935 1,812,135 Inetsm# fundy Restricted funds Unrestricted funds 863.D32 1.185,903 871.311 940.824 2,028,935 1,812,135 The company is enb'ded to th& oxemptlon from the audit requirement eontained in sectlDn 477 01 the Companies Act 2Ck)6. for the year onded 31 Decernber 2022, although an audll has been ¢arried out under seclion 144 of the Charity'es Act 2011. Thfj directors acknowledge their responsibllhles lor complylng with the requirements of the Companies Act 2006 with respe¢l to accounting records and the preparation of financial statements. The members have not required the company lo obtain an audll of ils financial statements undar the requlrom6nls of the Companies Act 2006, for the year in question in accordan with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject lo the small Companies regime. The finan¢lal s enls were approved by the Trustees on 23 October 2023 Mrsm Trustèo 8zeen Mr M Junaidoen TrLAStèp Company registratlon number CE005769 12.
SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
Sri Lankan Muslim Cultural Centre UK is incorporated as Charitable Incorporated Organisation (CIO).
1.1 Accounting convention
The financial statements have been prepared in accordance with the CIO's constitution, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The CIO is a Public Benefit Entity as defined by FRS 102.
The CIO has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the CIO. Monetary amounts in these financial statements are rounded to the nearest £.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the CIO 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.
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.
1.4 Income
Income is recognised when the CIO 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 CIO 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 CIO 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.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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 so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 50 years Straight line Plant and equipment 20% on cost Fixtures and fittings 20% on cost Computers 33.33%
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 CIO 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 Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.9 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.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.10 Financial instruments
The CIO 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 CIO's balance sheet when the CIO 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
Financial liabilities are derecognised when the CIO’s contractual obligations expire or are discharged or cancelled.
1.11 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 CIO is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the CIO’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.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
3 Donations and legacies
| Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 155,305 - Other income 131,733 - Membership fees 4,373 - Other - 17,595 291,411 17,595 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 155,305 145,729 - 131,733 133,823 - 4,373 6,150 - 17,595 - 5,717 309,006 285,702 5,717 |
Total 2021 £ 145,729 133,823 6,150 5,717 |
|---|---|---|
| 291,419 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
4 Other trading activities
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Letting and licensing arrangements | 48,910 | 12,445 | |
| 5 | Other income |
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Al Falah Income & Donation | 247,153 | 197,591 | |
| UF Other Income 2 | 94,515 | 89,690 | |
| 341,668 | 287,281 | ||
| 6 | Charitable activities |
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure |
|
| Heading 1 | Heading 1 | |
| 2022 | 2021 | |
| £ | £ | |
| RF Distribution of Disaster relief funds | 10,874 | - |
| RF Distribution of Zakat funds | 15,000 | 4,710 |
| 25,874 | 4,710 | |
| Share of support costs (see note 7) | 451,810 | 468,663 |
| Share of governance costs (see note 7) | 5,100 | 4,933 |
| 482,784 | 478,306 | |
| Analysis by fund | ||
| Unrestricted funds | 456,910 | 473,596 |
| Restricted funds | 25,874 | 4,710 |
| 482,784 | 478,306 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
7 Support costs
| Staff costs Depreciation Support costs heading 1 Accountancy Legal and professional Analysed between Charitable activities |
Support costs Governance costs £ £ 287,732 - 24,272 - 139,806 - - 4,000 - 1,100 451,810 5,100 451,810 5,100 |
2022 £ 287,732 24,272 139,806 4,000 1,100 456,910 456,910 |
Support costs Governance costs £ £ 300,958 - 60,286 - 107,419 - - 3,900 - 1,033 468,663 4,933 468,663 4,933 |
2021 £ 300,958 60,286 107,419 3,900 1,033 |
|---|---|---|---|---|
| 473,596 | ||||
| 473,596 |
Governance costs includes payments to the Auditor of £4,000 as audit fee.fees.
8 Trustees
None of the trustees received any remuneration during the year but 3 persons who are connected to trustees, received the remuneration totalling £28,474.38 (2021 - 3 persons to trustees, received the remuneration of £50,384.19).
9 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs |
2022 Number 42 2022 £ 282,628 5,104 287,732 |
2021 Number 42 |
|---|---|---|
| 2021 £ 294,774 6,184 |
||
| 300,958 |
There were no employees whose annual remuneration was more than £60,000.
10 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| 11 Tangible fixed assets Freehold land and buildings £ Cost At 1 January 2022 2,856,541 At 31 December 2022 2,856,541 Depreciation and impairment At 1 January 2022 188,276 Depreciation charged in the year 22,852 At 31 December 2022 211,128 Carrying amount At 31 December 2022 2,645,413 At 31 December 2021 2,668,265 12 Stocks Finished goods and goods for resale 13 Debtors Amounts falling due within one year: Other debtors Amounts falling due after more than one year: Other debtors Total debtors |
Plant and equipment Fixtures and fittings £ £ 7,098 15,305 7,098 15,305 3,770 15,305 1,420 - 5,190 15,305 1,908 - 3,328 - |
Computers £ 1,110 1,110 1,110 - 1,110 - - 2022 £ 6,414 2022 £ 53,097 2022 £ 1,955 55,052 |
Total £ 2,880,054 |
|---|---|---|---|
| 2,880,054 | |||
| 208,461 24,272 |
|||
| 232,733 | |||
| 2,647,321 | |||
| 2,671,593 | |||
| 2021 £ 5,571 |
|||
| 2021 £ 51,823 |
|||
| 2021 £ - |
|||
| 51,823 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
14 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income 15 Analysis of net assets between funds Unrestricted funds Restricted funds 2022 2022 £ £ Fund balances at 31 December 2022 are represented by: Tangible assets 2,647,321 - Current assets/(liabilities) (618,386) - 2,028,935 - |
Total Unrestricted funds 2022 2021 £ £ 2,647,321 2,671,593 (618,386) (859,458) 2,028,935 1,812,135 |
2022 £ 2,070 818,092 4,000 824,162 Restricted funds 2021 £ - - - |
2021 £ 1,025 1,104,244 3,600 1,108,869 Total 2021 £ 2,671,593 (859,458) 1,812,135 |
|---|---|---|---|
16 Related party transactions
During the year the CIO entered into the following transactions with related parties:
None of the trustees received any remuneration during the year but 3 persons are connected to trustees, received the remuneration totalling £28,474.38 (2021 - 3 persons connected to trustees, received the remuneration of £50,384.19). Trustees connected parties names are as below, who were paid during the year.
| Name of the Related Party | Name of the person connected to |
|---|---|
| Umai Salam Munawar | Munawar Junaideen |
| Abdullah Munawar | Munawar Junaideen |
| Ammar Munawar | Munawar Junaideen |
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