Charity reglstration number 1164657 Company registration number CE005769 (England and Wal•sl SRI LANKAN MUSLIM CULTURAL CENTRE UK ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
SRI LANKAN MUSLIM CULTURAL CENTRE UK LEGAL AND ADMINISTRATIVE INFORMATION Trustees MrA R MunawaT MT M A Mohamed Ibrahim Mr S M Razeen Mr M Maieelh Mr H Mohamed Mrmmltyas Mr S M Lareel Mr A H Mohamèd Lafir Mr M Junaideen Mr M L Mohamed M(w500P Basheer Mi M Noordeen Mr N Farook Mi F FarLeen MI M Muba$sJr (Appoinled 1 May 20231 (Appoinled 1 May 20231 IAppoinled 1 May 20231 IAppoinied 1 May 20231 (Appointed 1 May 20231 IAppoinled 1 May 20231 IAppoinled 1 May 20231 IAppoinled 1 May 20231 IAppoinled 1 May 20231 IAppoinled 1 May 20231 (Appointed 1 May 20231 IAppoinled 1 May 20231 Charity number 1164657 Company numb•r CE005769 Prlnclpal 4ddrg5¥ 2 Whrtelnars Avenue Harrow Middlesex Uniled Kingdom HA3 SRN RegiBter•d offlce 2 whileln.ars Avenue Harrow mIddseX Uniled Kingdom HA3 SRN Audltor Reddy Siddiqui LLP 183-189TheVa Adon London Unrted Kingdom W3 7RW
SRI LANKAN MUSLIM CULTURAL CENTRE UK CONTENTS Page Trustèes rèport Statement ol Truslees responsibililies Inijependent audrtorfs feport 9-10 Slal&menl of financial activities 11 Balance sheel 12 Notes lo the financil stat&ment$
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their reporl and financial slalements lor Ihe year ended 31 December 2023. The financial statements have been prepared in accordance wilh the actounting Oiaes set out in note I lo the financial slalemenls and compty wilh Ihe CIO'S constitution. the Companies Acl 2006 and "Accounting and Reporting by Chaiities.. Slalèment ol Recommended PraCte applicable to charilies preparing their accounls in accordance with the Financial Reporting Slandard applicable In the UK and Republic of Ireland IFRS 1021. las arnended for accounling penods commenrjng Irom 1 January 20161 Objectives and activities Our objeclives are set to reflect our failh and community aim5. Eath yèar oui tiustees feview our objèctives and activities lo ensure Ihey continue to reflecl our aims. In c8rrying oul this review the Iruslees h8ve con5ideied the Charity Commission's general guidance on public benefit aT)d in particor ils supplefflenlary publ guidance on the advancemenl ol religion loi the public benefil. Our aims remain lo prowde a lacilily as a worship place Muslims and fac41rtate community activities for Sri Lankan Muslims in UK and Muslim inhabitants ol Harrow. Ouf long term ambition is lo improve their faith and to mainlain confidence. respeth and peace amon9 Ihe Community Ihrou9h our activities. The objecls ol Ihe chaiily are sel OLrt in Ihe chatrfvs c(Jnslrtution and are summarised as.. 1. To advancè thè Islamic Rèligion. 2. To promote the Islamic and Secular education, sport and leisure aclivrties. 3. To relieve Ihose who are in condition$ ol poverty. 5kneSS and di$lre$$ or thosè who ale otherwise in charitable need. The Trustees have paid due regard lo guidance issued by Ihe Charity Commission in deciding what a¢liwlie5 the CIO should undertake.
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 OBJECTIVES AND ACTMTIES Significant activities Charitable Activiti•s The charrty engages in a diverse range of act1w¥ aligned wrth its charitable objectives. The Iruslees deem these activities, summansed below. to be beneficial for Wofshippers at our Centre, Sri Lankan Muslims in Ihe Uniled Kingdom, and Ihe broader Harlow community. Religious and Social Activities.. Ouf Centre serves as a place of worship 8nd congregalion, h05ting events integral io our failh and culture. Durin9 Ihe reviewed period. we offered a vawiety ol religious serwces and activities. including. Prayers.. The Centre remains 8cces5ible Ihroughoul the day for daity and Friday prayers. The average weekly altendance for prayer5 exceed5 2,450 Individuals. nearty doubling during Ramadan. The congregation for the Friday 'Jumuah' prayer consislenlly exceed5 1.000 attendees. The Frjday sermon and weekly talks afe delivered in English. Ramadan: This period wilnesses Ihe highesl lootlall. with approximalety 1.000 10 1,500 indivsduals allonding congregalional prayers every day. 11 poses challenges for our dedicaled Staff 8nd volunteers. who work tirelessly Into the night lo facililate special Pfayers altended by Ihousands Each evening. lh& Mtssque provides free Iftar meals lol an average of SOO mèn and women. The Mosque conducts six congre9alion81 prayers on each of the two Eid mornin9$. tslenng to over 6,(W worshippèrs for Eid al-Frtr and Eid akAdha. Quran ond 18lamic Edu¢atlon#l Classes: Learning and memoiising Ihe Qur'an hold significant importance in religious education. 151amic Èducational classes are cond¢Jcted regularly. oltering this lacilily lo Ihe young members ol our Muslirn communrty. Ovtr 800 young Indsviduals altentJ these classes regularly. designed lo caler lo individual progre58 and conducied on diffeienl days. Islamic L•cture$.' We routinely organi5e Islami¢ leclufe$ dèlwefed by knowledgeable scholars on diverse subjects. These lectures. held al our Centre. aim lo ¢Jissemin8le Islamic knowledge within Ihe Muslim community and losler social cohesion. The promts1 ol authenlic Islamic teachings prevents misunderstandings and facilitates spirrtual and academic growlh in a se¢ enwronmenl. Zakat: Our failh emphasises the obligatH)n ol offering Zakal by those able lo do so. Thè Cenlre collects Zakal in a¢¢ordance with Islamic teachings, distributing il for various purposes. Including aiding others and advancing Islarnic education. Additionally. we lacililate the donation of Zakat through regislered UK ¢harilies like Islamic Relief and Human Appeal. as well as Ihrough regislered thawities in Sn Lanka. SLMCC undertakes this collection and distribution of Zakat withtsut charge.
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 Qurbani.. The Centie collects contributions for OUan1 (Animal s3rice) during the HaD feslival from individuals. These wnlributions are then distribuled among Ihe less fortunate in Sri Lanka. Dlsaster Relief: The Centre collects donations independentfy OT in collaboralion wilh relief organisalions lo assist affected Individuals. Funds raised lor various causes arè d15tribuled Ihrough partner charities. Isl•mi¢ Higher Education Proj•ct- In 2019. WÈ successrfully acquired premises al 2A. Tudor Road. Harrow, lor the establishment ol Northwest London's lirsi centre lor Islamic Higher Studies. This piojecl aims to nurtLJre lulure leaders, Imaams. Alimas. mèntors. and teacher5 who embrace Brilish culture and herilage while upholding a strong Islamic idenlily. SLMCC harbouf5 ambitious goals for this projecl, mtsch like our Madiasah that commenced with onty two classes and 30 sludents In 21)02. Over the past 21 years. we've pfoduced over 50+ Huffaz. many tsf whom leach In our Madrasah. lead Taraweeh prayers. or pursue Islami¢ Highef Education elsewhere due lo current limitations at SLMCC. Our objective Is lo establish a full-lime academic Islamic Studies programme, combining Iraditional Islamic learning wrth contempoiary scholaiship. Furthermore. we intend lo create on-sile and online short educalional progiammes a¢¢e$stble to a der audience unable lo commit lo the lull-lime curriculum. Community Activiti•s: Sports and Soclal ActSvltlès'. We annually organise sporis adivilies lor bolh children and adults In the Sri Lankan Muslim community and Harrow 81 large. This year. we held the SLMCC Football Touinamenl. feaiufing mlilliple age group competitions Additionally. the SLMCC Father & Children Campirig èven1 Itssleied boriding and growth aelivilies lor fathers 8nil their children. Lastly. the SLMCC Annual Badminitsn Tournamenl promoted sportsmanship and heallhy compelilion wilhirb Ihe community. Youth Club.. In p8rlnership wrth ABYF. we hosl -weekty Friday youlh dub $es5i0n$ in the evening. These sessions are open lo boy5 and girls aged 10 10 18. foslering friendships. ski115. and knowledge in an enjoyable and enriching environment. Iniertalth Actlvities: We airange diverse events lor the lo¢al communrty lo promote inleroommunily engagement and dialogue. Community Support.. The SLMCC-NIDA Foodbank. initialed in January 2021 in collaboration with HelpHarrow IHairow Council), distiibules essential food p3r¢els lo Ihose in need. Operaling on Sundays from 2.00pm lo 4'.00pm at SLMCC. the loodbank seNes as a disltibulion and collection point. Utilisatlon of Volunte•rs Volunleers constitute a vital resouice in ouf lailh and Commvnily Initiatives. They aclively participale in Ihe majority ol our ac11wtS and PF05. We erb¢OUTage all SLMCC communily members lo engage in volunlary aclivilies and share their expertise. Volunleers Involved in projects concerning children Of vulnerable 9roup5 undergo DBS checks io ensure saleguarding.
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic Report The description under the headings "Achievements and performance- and "Financial review" meel the cornpany law requirements lor the Trustaes to present a strategic ieport. A¢hlÈvements and perforniance Charltable activities Health S•minars and Consul¢ation5= We conducl Health seminars and Consullalion through Muslim GPS al our Centre on a periodic basis. Also a virtual awareness prograrnme was conducted al the beginnin9 of Ram8dhan lo have a healthy diel throughoul month. C#reèr Guidance Program- In summer we commenced a ree1 guwjance program wilh the obje¢live of educating the community youlh wilh the ChaInge$ they face in Ihe current world. This would help them to make educational, training and occvpalional choices to manage their ¢8reer$ and be better cilllens. Education Ex¢ell•ne• Awards: The Sri Lankafi Muslim Educalional Excellence Award cekbraled the acadernic achievernents 0186 indiwdua15 from the Sri Lankan Muslim community. Flnanclal rov5•w Prlnclpal fundin9 ¥our¢•$ Our Cenlfe's main sources ol irKome are re9ular communty members, donalions and Friday congregaiions, donations. Inv•stm•nt policy and objectlvès SLMCC has no long term inveslmenls. Our cash reserves are held in currenl a¢¢ounls. R•8oNès policy The trustees have reviewed the reserves ol the charity. Their poh'cy is lo hold sufflent funds lo meet four months operaling ¢osls ol the Cenlre. exduding the collection and dislnbulion of Zakat, and ol ouf communrty activilEs and pfograms. 11 1$ the poly of the CIO that unrestiicled funds which have not been designated for a specific use should be tnainlained al a level equivalent to belween Ihree and six month's expendilure. The Trustees ¢onsider Ihal reserves al this level will ensure thal. in the evenl of a signilicanl drop in funding. they will be able lo continue the CIO'S current activities while consideration Is given lo way5 in which additsonal funds may be raised. Thig level of reserves has been maintained Ihroughoul Ihe year. The Trustees have assèssed the major risk5 to whth the CIO is exposed. and 8fe satisfied Ihal syslem5 are in place to miligale exptssure lo the major risk5. Structure, 9overnance and manag*m•nt Sri Lankan Muslim Cultural Centre UK ISLMCCI is ¢on5tiluted as a ChaTilable Incorporated Organisation re9islered wrth the Charily Commission on 2nd tlecembei 2015 under charity number 1164657. It is governed by conslilulion. Sri Lankan Muslim Cuttural Centre UK ISLMCCI was previously govèrned by a deed of Irust. The trustees and ils membe15 weie pursuin9 the possibility ol moving lo Charilable Incorporated Organisalion model Attei A long process, il was incorporated as 8 CIO on 02 December 2015. The Trustees who served during the year and up to the date of signature of Ihe financial statemenls were". Mr A Kamaldin Mr M Zawahir Mi A R Munawar Mr N Mazahir (ReSned 1 May 20231 IResHJned 1 May 20231 IReswJned 1 May 20231
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 Mr M A Mohamed Ibr8him Mr M Shaan Mr F Abdul Hameed Mr S M Razeen Hali2 Munawar Junaideen Mr Z Zubair Mr Halaldeen Abdul Jabbar Mr Fahim Cassim Mr Ashral Jamaldeen Mr Fairoos Sanoon Lebbe Mi Meera Shahib Mawjuth Mr M Maieelh Mr H Mohamed Mr M M Ilyas Mi S M Lareel Mr A H Moh3rned Lafir Mr M Junaideen Mr M L Mohamed Mowsoop Mr M M Basheef Mi M Noordeen Mf N Farook Mr F Faizeen Mr M Mubassir IRÈsigned 1 May 20231 (Resigned l May 20231 IResigned 1 May 20231 {Resigned 1 May 20231 IResigned l May 20231 Re5Tred 1 May 20231 IRe5ryned 1 May 20231 {Resned 1 hI3y 20231 ReSne 1 May 2023) (Appoinled 1 May 20231 (Appointed 1 May 20231 (Appointed 1 May 20231 (Appointed I PAay 20231 (Appointed 1 PAay 20231 (Appointed 1 May 20231 (Appointed 1 May 2023} (Appointed 1 May 20231 (Appointed 1 May 20231 {Appoinled 1 May 20231 IAppoinled 1 May 20231 {Appoinled 1 May 20231 None ol the Trustee$ has any benelicial interest in Ihè CIO.
SRI LANKAN MUSLIM CULTURAL CENTRE UK TRUSTEES REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 The Iruslees are responsible fof the general control and management ol Ihe tharity. Thè connÈcled partias lo tiuslees wofk and receive remuneialKJn or other financial benelits for Iheir work. Please see nole 16. The Iruslees meel logelher as a body normally on a monlhty basis and are responsible for all decision5 taken in relation lo running the Centre as well as the ctsmmunrty faulilfes and the acliwlies provided by the Cenlre. To assist in the smooth running of the charity the trustèes have set up a number of SLtrb commitiees that help them oversee certain aspects of the charily's work. List ol wb-commillees are as lolbws". 1. Al Falah Educalional Centre 2. Building and Eslales Maintenance 3. Da'wah ènd Religious Affairs 4. Educaiion and Communily Development 5. Fundraising 6. Janaza And Funeral Semces 7. Media and IT 8. Prayers and Shop 9. Public Relalion 10. Social Welfare and Outreach 11. Sports, Recreational and Socaal Aciiwties 12.Youth Affairs E8¢h Sub ¢ommillee Is ehairèd by a member of Ihe Board ol Trustees 18oTI. Members outside the BOT a150 form part of these sub-committe&$ making il a widèr participalion amongst Ihe community members. Sub committees have been delegated specific task$ from the BOT and there is d•ar scope ol Iheir roles and responsibilities. Progress are updated Irorn each sub ¢ommiltees ana di$¢ussed monthly al BOT meetings by the respective chairperson. InductSon and tralnlng of n•w ¢ru$ts•¥ Followin9 the appoinlmenl. new Iru5tee5 are introduced to Iheir role and 9Nen a copy ol Ihè conslitulion and amendrnenls.. a copy ol the annual report and statement of ac¢ounlS and a guide 10 the policies. pitscedure and by laws. A number ol publications Irom Ihe Charrty Commission are also prowded Includin9 Ihe guidance on ¢hariliès. public benelrt and on the advancement of religion lor Ihe publK benefil. This en5uies that new Iiuslees are aware ol Ihè scope ol Iheir responsibilrties under the Charities Acl. Rlsk management The Iruslees have asse55ed Ihe risks the rharity faces and have drawn up a risk matrix which identifies the major risks by area ol a¢livily. the nalure ol Ihgse nsk5. thè Iikelihooil of the nsks happening, an¢J the measures laken to manage them. The trustees rewew this risk matrix r*9ularty at their meetings and at meetings ol Ihe two sub committees on finance and b(tilding5. The tfuslees are satisfied Ihal syslems are in place. or arwangements are in hand, lo manage the risks Ihal have been idenlihed. In parlicular. Insurance cover is in place and the finances ol the Centre are kepl under ieview. Auditor In accordance wrth Ihe company's arficFes. a fesolulion proposing Ihal Reddy Siddwui LLP be ieappointed as audilor ol the company will be pul al a General Meeling. Disclosure of information to auditor Each of the Tru51ees ha5 confiimed Ihal there 15 no information ol which Ihey are aware which is relevant lo the audit. bul of whKh the audilor Is vnaware They have further confirme<l that they have taken appropriate steps to idenlty such ielevant inlormation and 10 establish that the auditor is aware of such inlofmation.
SRI LANKAN MUSLIM CULTURAL CENTRE UK IRUSTEFS REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPOR TI I C.ONTINÈJFDI TIIE Yr='AJTI E.wnF() 31 DEC.EM8ER 2023
SRI LANKAN MUSLIM CULTURAL CENTRE UK STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Tiuslees. who are also the direclors of Sri Lankan Muslim Cuhural Centre UK for thè pufpose ol company law. are responsible for preparing the Truslees Report and the finaniaal statements in accordance with applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepled Accounting Pradi¢&l. Company Law requires the Truslees to prepare finanoal slatements for each linancAal year which give a true and lair view ol Ihe stale ol affairs of Ihe CIO and of the incoming resources and apicatiOn of resources. including the IncoThe and expendiluiè, ol Ihe charilable company lor that year. In preparing these financial slalemenls, the Tru$lees are iequired lo.. select Suitab accounting policies and Ihen apply them Consisten1,. observe the melhods and princie3 in the Charibes SORP.. make judgèments arbd èstimates that are feasonable and prudent., slale whethèr applicable UK A¢¢ounting Slandards have been followed. subject lo any maleiial departur85 disclosed and explained in Ihe finanoal $lalemonls.' and prepare the financial statements on the going ¢on¢ern basis unlèss il is inappropriate lo presume that the CIO will ontinuè in opeiation. The Trustees are responsible lor keeping adequale accounling records that dis¢lose with asOnable accuracy 81 any lirne the financi81 posilion ol the CIO and enable Ihem to ensure Ihal the finan¢ial slalements comply with the Companies Act 2006. They are also responsible for safeguarding Ihe assels ol ihe CIO and hence lor laking reasonable steps lor the prevenlion and dètèction ol Iraud and other irgU1art1ies.
SRI LANKAN MUSLIM CULTURAL CENTRE UK INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SRI LANKAN MUSLIM CULTURAL CENTRE UK Opinlon We have audiled the financial statements gf Sn Lankan Mvslim Cuhural Centre UK Ilhe'CIO'I for the year ended 31 December 2023 which comprise the slatement ol financial aclivilies. the balance sheel and notes to the financial slalements, ineluding significant accounltng policies. The financial reporting Iramework Ihal has been applied in their pieparalion Is 8pplic8ble law and United Kingdom Accounling Standard5. Including Financial Reporting Standard 102 The Finajrycial Reporting Slandard applticable in lh& UK and R8public of Ireland (United Kingdom Generally Accepted Accounting Plac1e1. In our opinion, the linanaal statemènts give a true and lair view ol the slale ol the charil8ble companl5 affairs as al 31 De¢ember 2023 8nd of it5 incoming resources and application ol resources. lor Ihe year then ended. have been properly prepared in accordance wilh Uniled knngdom Generally Accepled Accountin9 Pfa¢ti¢s." and have been prepared in accordance vthh the iequiremenls of the Companie5 Act 2Th)6. Basis for opinlon We conducted our audil in accordance with Inlernational Slandards on Audrting (UK) IISAS IUKII and appli¢able law. Our responsibilities under those standards aTe lurthef described in Ihe Audilorfs rnsponsibilili6s for th6 audit ol Ihe financial slaleinenls seclion of our rèport We are independenl ol Ihe CIO in accordancè with the elhical requirements Ihal ar6 relevant lo our audil ol the financial slalemenls in the UK. including the FRC'5 Elhical Slandard. and we have lullilled our other ethical responssbililies In accordance with these reqyiremenls. We believe that Ihe audil evidence we have tsblained is suffirAenl and appropriale to plov* a basis lor our opinion. Conclusions relating to going concem In auditing the financial 51aternenls. we have concjuded Ihal tha TrLtr$tèés use ol ihe 90ing conrhrn basis ol accounling in the preparation ol the financAal statemenls is appropriate. Based on Ihe work we have perfom)ed. wè ha not idenlified any maleiial uncertainlies relating to evenls or condilions that, individualty or colleclively. may ¢asl si9nifi¢ant ijoubl on Ihe CIO'S abilily lo continuè as a going concern lor a period of al leasl twelve rntsnlhs frgrn when Ihe financial statements are atsthorisèd loi Issutr. Our SPOnSibl11t1•S and th& responsibilrties of the Trustees with respecl to goin9 concem are described in the relevant sections of Ihis report. Other infomi•tion The olhèr Infoimalion comprises the inlormation induded In the annual reporf Other Ihan the financial slalemenls alld our audilor's report Iheieon. The Truslees are responsible lor Ihe other information contained within the annual ieport. Our opinion on the financial statements d0È5 nol Ver the olher informalion and we do not exprèss any form ol assurance conclusion Ihereon. Our rèsponsibilily is to read Ihe other information and. In doing so, con51dei whether the other information is materially Inconsislenl wrth the financial slalements or our kntswledge oblained in the course of the audit. or otherwise appears lo be materially misstated. If we Idenlify such material in¢onsislencies or apparenl material misslatements. we are required lo delemiine whelher this gives nse lo a malerial misstalemenl in the Iinancial statements Ihemselves 11. based on Ihe work we have perfomed, we Conclude Ihal there is a material misstatement of this olher Inlormation. we are required lo report thai lad. We have ntslhing lo report in Ihis regard. Matters on which we ar• required lo report by ex¢eption We have nothing lo report in respect of Ihe following mattèTS in ielalion to which the Charities (Accounts and Reportsl RegLJlalions 2008 require us to reporl to you il. In our opinK)n" the Informalion given in Ihe financial slalements ts inctsnsislenl in any malerial respecl wtlh the TrLJStees ieporl." or sufficient acGounting records have nol been kepl". or the Iinancièl statements are nol in agreement wilh the accounting recoids". or we have not received all the information and explanatK)ns we require for our audit.
SRI LANKAN MUSLIM CULTURAL CENTRE UK INDEPENDENT AUDITOR'S REPORT (CONTINUEDI TO THE TRUSTEES OF SRI LANKAN MUSLIM CULTURAL CENTRE UK Responsibilities of Trust¢e$ As explained tnore lully in the statement ol Trustees responsibililEs. Ihe Trustees. who are also the directtsrs of Ihe CIO for the purpose ol company law. are responsible Iof Ihe preparation ol the financi81 stalernents and lor being satlsfied that Ihey give a true and lair view. and for such inlemal conlrol as the Trustees deleirnine 1$ necèssary lo enable the preparation of financial slatemenls Ihal ale free from malerial misslalemenl. whether due to fraud or error. In preparing the financial statements, the Trustees are responsiNe lor assessing the CIO'S ability lo conlinv as a going concern. disclosing. as applicable. mattels ielalèd lo going concern and usin9 Ihe going concern basis of accounling unless the Trustees either intend to Imjuidate the d)arrtablè company or to cease operations, or have no re811$1C allernalive bul lo do so. Auditor's re$ponsibtlitie$ for the audlt ol thè financial statemet)ts We have been appoinled as auditor under section 144 01 the Charities Act 2011 and report in ac¢ordance wilh the Act and relevant regulations rnade or hawng effect thereunder. Our objectives are lo obtain reasonab assuran¢e about whether the financial slalemenls as a whole 8fe free from material misstatement, whelher due lo Iraud or error, and to issue an audrtor's reporl Ihal includes our opinion. R&asonable assurance is a high level ol assurance blrt is noi a guaranteè that an audit cot)ducled in accordance with ISAS IUKI will aknays delect a material misstalement when il exists. Misslaièmenls ean arise from fraud or error arnd are ¢)nsidered material il, individually of in Ihe aggregale. Ihey vId reasonably expected to influence the economi¢ decisions ol user$ takèn on the basis of Ihese Itnancial slalemenl5. The extent lo which ou¥ procedufes are Capable of ¢J&t&¢ting irregularities. including fraud, is delaile(I bèlow. A further desenption ol our responsibilities is 8v8ilable on the Finan¢ial Reporting Council's websile at.. https.'Il www.li¢.oig.uklaudilorsresponsibililies. This descriptson lorms parl ol our auditor'$ i¢port. Use tsf our rèport This report is rnade solely lo the charity's truslèes as a body. in accordance wrth part 4 of Ihe Charities IAtt¢unls and Reports) Regulations 2008. Our audil work has been undertaken so that we rnighl s131e lo Ihe charity's Irusiees Ihosa matlers we ale required to stale to Ihem In an audiiof's feporl and lor no other purpose. To Ihe lullesl exlent permilled by law, we do not accepl or assume re5ponsibilrty to anyone other than Ihe charrfy and the charily's Iruslees as a body. lor our audit work, for this report. or lor the opin5 w& have fom)ed. £JJA2" Redd iddi9u+ LLP 9 October 2024 Chartered Accountants Statutory AudTrtor 183-189TheVa Aclon London United Kingdom W37R
SRI LANKAN MUSLIM CULTURAL CENTRE UK STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Re5tri¢tsd funds funds 2023 2023 Total Unrnstricted Restricted fund5 funds 2022 2022 Total 2023 2022 Notes Income and endowments from: Donations and legacies Other trading a¢liviliès Other In¢ome 234,375 95,502 354,184 8,570 242,945 95.502 354.184 291,411 48.910 341.668 17.595 309.oc 48.910 341.668 Total income 684.C1$1 8.570 692.631 681.989 17.595 699.584 Exp•nditure on: Charitable activities 581.367 2.339 563.7C6 456,910 25,874 482,784 Totsl exndItUrn 581.367 2.339 583.7C 456.910 25,874 482,784 N•t income 102.694 6.231 108.925 225.079 18,2791 216,800 Other rocognis•d galns and losses: Revaluation of tangible fixed assels 2,854.588 2.854.588 Net movom•nt In funds 2,957.282 6.231 2.983.513 225.079 18.2791 216,800 R•conciliation of tund$'. Fund balances at 1 January 2023 1.165.903 863.032 2.028.935 940.824 871.311 1.812.135 Fund balances at 31 D*¢•mber 2023 4.123.185 869.263 4.992.448 1.165.903 863,032 2,028,935 The slatemenl ol financial activrtie5 in¢ludes all 9ains and losses recognised In the year. All income and expendilure denve from continuing activilyds. 11
SRI LANKAN MUSLIM CULTURAL CENTRE UK 8ALANCE SHEET 4S A T 31 nECEM8ER 2033 ?02J 20?7 Noivs r.4 rol&l •is•r¥ ¢uifwii Ii•biliii•• .U28 YJS Th• lundi nl kti CIO 16 8DIJ I P+J3 1732 l6. 11.1 IK jLal ttrfeo J7 I)ec¥&t 2023 Ji¥Jit t*L'fl CJtrwJTI uul unaer Ser1 144 nl Ih TIF D'.5 were %lliprD¥ert tbL. Ttl JSlcp4 4pI'J or.wet a)24 TpiiAI••
SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
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 or grantors 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 2023
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 49 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.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/ (expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.
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.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
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.
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.
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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.
3 Income from donations and legacies
| Unrestricted Restricted funds funds 2023 2023 £ £ Donations and gifts 225,585 - Grants 2,125 - Membership fees 6,665 - Other - 8,570 234,375 8,570 |
Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 225,585 155,305 - 2,125 131,733 - 6,665 4,373 - 8,570 - 17,595 242,945 291,411 17,595 |
Total 2022 £ 155,305 131,733 4,373 17,595 |
|---|---|---|
| 309,006 |
4 Income from other trading activities
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Letting and licensing arrangements | 95,502 | 48,910 |
5 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Income & Donation from Al Falah | 253,861 | 247,153 |
| Other Income | 100,323 | 94,515 |
| 354,184 | 341,668 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
6 Expenditure on charitable activities
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Direct costs | |||
| Distribution of Disaster Relief Fund | 2,339 | 10,874 | |
| Distribution of Zakat Fund | - | 15,000 | |
| 2,339 | 25,874 | ||
| Share of support and governance costs (see note 7) | |||
| Support | 572,097 | 451,810 | |
| Governance | 9,270 | 5,100 | |
| 583,706 | 482,784 | ||
| Analysis by fund | |||
| Unrestricted funds | 581,367 | 456,910 | |
| Restricted funds | 2,339 | 25,874 | |
| 583,706 | 482,784 | ||
| 7 | Support costs allocated to activities | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Staff costs | 322,277 | 287,732 | |
| Depreciation | 47,115 | 24,272 | |
| Other Cost | 202,705 | 139,806 | |
| Governance costs | 9,270 | 5,100 | |
| 581,367 | 456,910 | ||
| Analysed between: | |||
| Unrestricted Funds | 581,367 | 456,910 | |
| 8 | Net movement in funds | 2023 | 2022 |
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Depreciation of owned tangible fixed assets | 47,115 | 24,272 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
9 Trustees
None of the trustees received any remuneration during the year but 8 persons who are connected to trustees, received the remuneration totalling £57,440.45 (2022 - 3 persons to trustees, received the remuneration of £28,474.38 ).
10 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs |
2023 Number 42 2023 £ 316,696 5,581 322,277 |
2022 Number 42 |
|---|---|---|
| 2022 £ 282,628 5,104 |
||
| 287,732 |
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel
11 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 2023
| 12 Tangible fixed assets Freehold land and buildings £ Cost At 1 January 2023 2,856,541 Additions - Revaluation 2,643,459 At 31 December 2023 5,500,000 Depreciation and impairment At 1 January 2023 - Depreciation charged in the year 44,898 At 31 December 2023 44,898 Carrying amount At 31 December 2023 5,455,102 At 31 December 2022 2,645,413 13 Stocks Finished goods and goods for resale 14 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 3,986 - - - 11,084 15,305 5,190 15,305 2,217 - 7,407 15,305 3,677 - 1,908 - |
Computers £ 1,110 - - 1,110 1,110 - 1,110 - - 2023 £ 6,122 2023 £ 46,022 2023 £ 5,000 51,022 |
Total £ 2,880,054 3,986 2,643,459 |
|
|---|---|---|---|---|
| 5,527,499 | ||||
| 21,605 47,115 |
||||
| 68,720 | ||||
| 5,458,779 | ||||
| 2,647,321 | ||||
| 2022 £ 6,414 |
||||
| 2022 £ 53,097 |
||||
| 2022 £ 1,955 |
||||
| 55,052 |
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
15 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Other taxation and social security Other creditors Accruals and deferred income |
2023 £ 2,205 595,690 4,000 601,895 |
2022 £ 2,070 818,092 4,000 |
| 824,162 |
16 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At Previous year: At |
1 January 2023 Incoming resources Resources expended At 31 December 2023 £ £ £ £ 863,032 8,570 (2,339) 869,263 1 January 2022 Incoming resources Resources expended At 31 December 2022 £ £ £ £ 871,311 17,595 (25,874) 863,032 |
|---|---|
17 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At General funds Revaluation reserve Previous year: At General funds |
1 January 2023 Incoming resources Resources expended At 31 December 2023 £ £ £ £ 1,165,903 684,061 (581,367) 1,268,597 - - - 2,854,588 1 January 2022 Incoming resources Resources expended At 31 December 2022 £ £ £ £ 940,824 681,989 (456,910) 1,165,903 |
|---|---|
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SRI LANKAN MUSLIM CULTURAL CENTRE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
18 Analysis of net assets between funds
| Unrestricted Restricted funds funds 2023 2023 £ £ At 31 December 2023: Tangible assets 5,458,779 - Current assets/(liabilities) (1,335,594) 869,263 4,123,185 869,263 Unrestricted Restricted funds funds 2022 2022 £ £ At 31 December 2022: Tangible assets 2,647,321 - Current assets/(liabilities) (1,481,418) 863,032 1,165,903 863,032 |
Total 2023 £ 5,458,779 (466,331) 4,992,448 Total 2022 £ 2,647,321 (618,386) 2,028,935 |
|---|---|
19 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 8 persons are connected to trustees, received the remuneration totalling £57,440.45 (2022 - 3 persons connected to trustees, received the remuneration of £28,474.38). Trustees connected parties names are as below, who were paid during the year.
Name of the Related Party Name of the person connected to
| Name of the Related Party | Name of the person connected to |
|
|---|---|---|
| Abdullah Munawar | Abdur Rahman Munawar | |
| Umai Salam Munawar | Abdur Rahman Munawar | |
| Ammar Munawar | Abdur Rahman Munawar | |
| Akeed Lareef | Segu Lareef | |
| Mirsab Majeeth | Ismail Majeeth | |
| Farzan Faizeen | Faik Faizeen | |
| Fathima Sareefdeen | Faik Faizeen | |
| Fahd Faizeen | Faik Faizeen | |
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